Updated Oncology deal economicsAnother "keep in the back of the mind" post on average upfront/backend cancer licensing deal economics. Some are to license drugs for combo deals, different tumor indications, etc... So while this specific deal (Xencor/Janssen) is not an ADC, they have the average economics for small cap/big cap molecule deals in oncology (average upfront is $75mil and backend is $600mil). Seems those numbers are growing higher in more proven molecules. If SORT1+ platform shows proof of concept, there are a whole lot of indications and different combinations that can be explored with different payloads. As we know, they're also talking about different peptides so at some point you might even have a different approach to the sortilin target or a different target altogether.
From analyst:
"Xencor/Janssen deal looks above average economics vs prior bispecific/antibody deals: We believe the Xencor/Janssen deal is encouraging based upon our analysis of prior cancer-related bispecific and antibody deals – we believe deal terms including front end and back end economics above average for the space. While a non-exact science considering the limited deal details and complexity of deal dynamics, overall the second Xencor/Janssen deal represents $125mn upfront economics which is above the average upfront of ~$75mn, with back end economics of $1.1bn above the average of $600mn (across 16 deals we analyzed). Importantly, this second CD28 (and plamotomab) deal was a step up from the prior Xencor/Janssen deal with $50mn upfront and undisclosed backend economics. And reminds us of the April 2020 Fate/Janssen deal which combined Fate’s iPSC and Janssen’s cancer target expertise for iPSC development with $100mn upfront and $3bn backend economics.