Milestones mitigate risk in biotech deals

Milestone payments are becoming an increasingly familiar aspect of many biotech deals, notes Reuters, as buyers try to mitigate the risks inherent with big purchases. Take Celgene's $2.9 billion buyout of Abraxis; the biotech giant set aside $650 million in milestone payments if Abraxis' key drug Abraxane hit certain goals. "These structures are a great way for buyer and seller to share the risk that's related to drug development," analyst Brett Skolnik tells Reuters. Milestones also...

Promising PhII oral RA data triggers $30M milestone for Incyte

Incyte says that a mid-stage study of its oral therapy for rheumatoid arthritis achieved positive top-line results at the midway point of an ongoing six-month study, triggering a $30 million milestone payment from Eli Lilly. The developer also revealed in its current quarterly statement that it will pocket a $3 million milestone from Pfizer for its CCR2 antagonist program. "We have achieved positive three-month Phase II results for INCB28050, our oral JAK1/JAK2 inhibitor, for rheumatoid...

Aveo gets $5M payment from Biogen Idec

AVEO Pharmaceuticals has received a $5 million milestone payment from Biogen Idec, triggered by Biogen's selection of the first humanized antibody development candidate from its ErbB3 program. In March 2009, Biogen and Aveo signed a deal for the development and commercialization of AVEO's discovery-stage ErbB3-targeted antibodies for cancer and other diseases outside. Aveo retained full control of the program in North America....