Takeda Inlicenses Seattle Genetics' Brentuximab Vedotin, Beefs Up Actos' Chinese Marketing with Pfizer Alliance

Japanese drug heavyweight Takeda today announced that its U.S. oncology arm Millennium has entered into a licensing deal with U.S. biotech firm Seattle Genetics for the development and commercialisation rights of the latter's oncology drug brentuximab vedotin (SGN-35). Pursuant to their licensing agreement, Takeda will pay US$60 million upfront, progress- and sales-related milestones, as well as tiered double-digit royalties based on future sales. In return, Takeda will receive the right to commercialise the drug in global markets except the United States and Canada, Seattle Genetics' two retained territories. The milestone payments are expected to reach US$230 million potentially, the companies noted.

As an antibody-drug conjugate (ADC) targeting CD30, brentuximab vedotin is currently under late-stage clinical trials for the treatment of relapsed and refractory Hodgkin's lymphoma (HL) and systemic anaplastic large-cell lymphoma (ALCL). The drug has been granted orphan drug status in the United States and Europe for both indications. In addition, it also obtained fast-track status from the U.S. FDA for HL treatment.

Takeda Enhances Actos Marketing in China through Pfizer Alliance

Separately, Takeda also revealed that it has entered into a collaboration deal with U.S. drug giant Pfizer for the co-promotion of the company's Type 2 diabetes treatment Actos (piaglitazone) in the Chinese market. Based on the two companies' exclusive collaboration agreement, Pfizer will utilise its marketing network in China to co-promote Actos and in return, receive a fixed ratio of the drug's net sales. The two partners have not disclosed further arrangements including financial details. Actos entered the Chinese market in 2004, marketed by Takeda's joint venture with local pharma firm Tianjin Lisheng, Tianjin Takeda Pharmaceuticals.

Outlook and Implications

The licensing of brentuximab vedotin is a move of Takeda's to enrich its pipeline in the oncology field, which has been one of the core focuses of the company highlighted by its US$8.8-billion acquisition of Millennium in 2008. Earlier this year, Takeda utilised the M&A weapon again to acquire oncology specialty firm IDM Pharma (see United States: 19 May 2009: Takeda to Acquire Oncology Specialty Firm IDM Pharma, Shionogi's Sciele Eyes US$150-mil. Victory Deal). The addition of new drug candidates, especially late-stage ones such as brentuximab vedotin, is therefore going to bolster the company's pursuit of the position as a leading oncology drug maker.

On the other hand, Takeda is also beefing up the marketing strength for Actos' sales in China by teaming up with Pfizer, which, with the largest presence in China among multinational pharma companies, will boost the marketing coverage of Actos through its established network across the country. With increasingly westernised lifestyle and a large base of population, China has seen considerable growth in the number of diabetes patients, which currently stands at around 20 million. This will undoubtedly provide a huge potential market for diabetes treatment. Nevertheless, the competition in this field is intensifying as well with more new drugs poised to snap up market shares from existing treatments including Actos. In 2009, China's drug regulator granted green lights to two new diabetes treatments, namely Merck & Co's (U.S.) dipeptidyl peptidase 4 (DPP-4) inhibitor Januvia (sitagliptin) and Kissei's (Japan) rapid-acting insulin secretagogue Glufast (mitiglinide). The joint marketing efforts of the newly-formed Takeda-Pfizer team will therefore help to bolster Actos's potential growth in the increasing competition.