< PreviousM&A ROUND-UP10Pharma Business International www.pbiforum.netMoreover, it has licenced rights todevelop non-therapeutic applications ofglucose binding molecules, with a focuson developing continuous glucosemonitoring applications. Next up is Emergent BioSolutions’timely acquisition of Adapt Pharma’sflagship opioid overdose product NarcanNasal Spray. It’s an advantageous dealfor Emergent, with this spray being thefirst and only needle-free formulation ofnaloxone approved by both the US Foodand Drug Administration and HealthCanada for the emergency treatment ofknown or suspected opioid overdose. As far as the financials are concerned,the deal is valued at up to $735 millionand is comprised of a $635 millionupfront payment and up to $100 millionin cash for potential sales-basedmilestones through to 2022. It’s been a busy period for Emergent,with the company agreeing in August toacquire PaxVax – a majority-ownedaffiliate of US private equity companyCerberus Capital Management – for $210million. PaxVax is focused on specialityvaccines that protect against bothexisting and emerging infectiousdiseases, with the deal seeing Emergenttake charge of two FDA-licensedvaccines – Vivotif and Vaxchora –protecting against typhoid fever andcholera respectively. The deal alsoprovides an Adenovirus 4/7 vaccinecandidate being developed for militarypersonnel under contract with the USDepartment of Defence. Further,Emergent will gain biologicsmanufacturing facilities in Europe. According to Emergent CEO Daniel J.Abdun-Nabi, the “acquisition will08-11.qxp_Layout 1 04/10/2018 12:19 Page 3© Shutterstock /Astock Productionswww.pbiforum.netPharma Business International 11M&A ROUND-UPcontribute incremental 2019 revenues of$70 million to $90 million and beaccretive by the end of 2019”. Next up, Ontario-headquartered AralezPharmaceuticals is offloading its mainoperating businesses in a $250 milliondeal. It’s part of a financial and strategicreview undertaken by the company’sboard of directors. Specifically, it isselling its Vimoyo royalties and Canadianoperations to Nuvo Pharmaceuticals for$100 million and sell its Toprol-XLfranchise for $140 million. Catching up with Allergan and we findthe company paying $195 million forCalifornia biotech Bonti in a deal thatadds fast-acting neurotoxin programmesto its medical aesthetics pipeline.Through the acquisition Allergan gainsthe global rights to Bonti’s two botulinumneurotoxin serotype E (BoNT/E)programs currently in Phase 2development, EB-001A (aesthetic) andEB-001T (therapeutic).Brent Saunders, Chairman and CEO ofAllergan, said at the time: “Theacquisition of Bonti is a strategicinvestment for the future of our MedicalAesthetics business and has thepotential to enhance our best-in-classMedical Aesthetics pipeline. With theMedical Aesthetics market vastlyexpanding, a fast-acting neurotoxin witha 2 to 4-week duration will be anattractive option for consumers,particularly those who are considering aMedical Aesthetics treatment for the firsttime.”There we have it for another column.Next month will be our last issue of theyear, where we’ll round-up the biggestand best deals of 2018. 08-11.qxp_Layout 1 04/10/2018 12:19 Page 4R&D12Pharma Business International www.pbiforum.netDigital technologies have transformedthe way in which drugs and othermedical products are researched anddeveloped. In many instances, thisprocess is still in evolutionary flux, asmore and more companies andinstitutions utilise new technologies, andever-more innovative tools becomeavailable such as artificial intelligence(AI). One of the biggest boons to thedevelopment process that AItechnologies offer is financial. The bestestimates put the price of developing atreatment at $2.6 billion. Much of thishuge price tag, however, largely goes towaste as it includes money spent on thenine out of ten candidate therapies thatfail between phase I trials and regulatoryapproval. But AI is on the precipice ofdelivering quicker, cheaper and moreeffective drug discovery. Aside from the financial benefit, AI alsoallows computers to process and learnfrom masses of complex data. Machinelearning of this kind offers an invaluabletool in creating more efficient andeffective medicines and as a means ofsaving huge amounts of time. Now aproject in the UK is harnessing AI forexactly this reason. Innovate UK recently awarded a grantto fund a £1 million project utilising AI indrug discovery. The project will seeOptibrium, which creates software toimprove the efficiency and productivity ofdrug discovery, and Intellegens – an AI-focussed University of Cambridge spin-out – work alongside the Innovate UK-funded Medicines Discovery Catapultover the next two years. The aim is toharness the power of AI to learn fromThe newdawn of drugdevelopment Artificial intelligence has emerged as one of the most disruptive tools in thepharmaceutical R&D space, with established companies and academicorganisations utilising AI in drug development alongside start-up companiesarriving on the scene to meet unmet needs and address some of the biggesthealthcare and medical issues facing the world today. 14 Á12-15.qxp_Layout 1 04/10/2018 12:23 Page 1Pharma Business International 13www.pbiforum.netR&D© Shutterstock /maxsattana12-15.qxp_Layout 1 04/10/2018 12:23 Page 2R&D14Pharma Business International www.pbiforum.netcomplex data and guide scientists in the designand testing of potential new drugs. Drug discovery generates a massive amount ofcomplex biological, chemical, clinical and safetyinformation that needs to be collected, analysedand presented in a way that it can be best used tomake evidence-based decisions. The coalition isseeking a means of providing better insights intohow exactly a drug interacts with the body whichwill, they say, improve the efficiency andproductivity of drug discovery. In practice, theproject will use novel deep learning methods tocreate a next-generation platform that will betterpredict the absorption, distribution, metabolism,excretion and toxicity of new drug candidates. Thisrepresents a brave new chapter for drugdevelopment in ways hitherto unimagined by pastgenerations of researchers. Of course, this is the view from academia andthe digital solutions space. How arepharmaceutical companies themselves respondingto the emergence of AI and what it means for drugdevelopment? Merck was one of the earlyadopters, entering the AI space back in 2012 afterpartnering with Numerate, a company using AI to12-15.qxp_Layout 1 04/10/2018 12:23 Page 3Pharma Business International 15www.pbiforum.netR&D© Shutterstock /Zolnierektransform the drug design process. Alongside this,Merck is also working with Atomwise, whichutilises deep learning technology in the discoveryof novel small molecules. Elsewhere, Celgene haspartnered with GNS Healthcare to employ itsmachine learning and simulation platform, whileGlaxoSmithKline has entered into a $24 milliondrug discovery collaboration with AI-focused start-up Exscientia, and Pfizer is working with IBMWatson for immuno-oncology drug discoveryresearch. Now Danish company Novo Nordisk is getting inon the action having shaken-up the way itapproaches research and development. The reasonbeing is to accelerate the expansion and, crucially,the diversification of its serious chronic diseasepipeline. Accomplishing this will see the companyset its sights on digital technology. Unfortunately,this reorganisation comes with a cost – namely theredundancy of some four hundred employees fromR&D roles. In response, Novo Nordisk said that thelay-offs will enable it to boost its investment in“transformational biological and technologicalinnovation” across its core and new therapy areasalike. As part of its new digitally-focussed approach todevelopment, the company will establish four‘Transformational Research Units’ in Denmark, theUS and the UK to pursue novel treatmentmodalities and platform technologies. The“biotech-like” units will operate as satellites ofNovo Nordisk’s central R&D function and,according to the company, will drive innovation inpriority fields research such as translational cardio-metabolic and stem cell. Part of this approach willalso see the company invest in automated anddigital capabilities including artificial intelligenceand machine learning. Though this has come witha very real human cost, it demonstrates thedirection that the industry is headed, with toolssuch as AI and machine learning becoming evermore commonplace and crucial to drugdevelopment. Perhaps it’s the notion of ‘the greatergood’ in action.12-15.qxp_Layout 1 04/10/2018 12:23 Page 4DISTRIBUTION16Pharma Business International www.pbiforum.netPrescriptionfor digital 16-19.qxp_Layout 1 04/10/2018 12:22 Page 1Pharma Business International 17www.pbiforum.netDISTRIBUTION© Shutterstock /LeoWolfertAs digitisation and smart technologysolutions will disrupt and transform thedevelopment of new drug products, sotoo will it impact distribution. Thepharmaceutical supply chain is far fromthe only sector which is beginning towitness the benefits of digitisingdistribution, from utilising smart track andtrace software to the benefits ofblockchain technology. In its simplestterms, blockchain allows data to bestored as part of an immutable ledgerassuring that it cannot be altered ortampered with. This makes it especiallyvaluable for distribution, where productscan be followed in forensic detail throughthe supply chain. This can help to createa safer, more transparent and trustedsupply chain and offer a means offighting the rising scourge of counterfeitmedicines. Blockchain is becoming increasinglyimportant to companies andorganisations with a survey from not-for-profit The Pistoia Alliance finding thatmore than half of professionals in thepharmaceutical and life sciences sectorsare already either using or experimenting18 ÁBlockchain technology istransforming thepharmaceutical and lifescience supply chains, butthere are barriers andchallenges that need to beovercome before widespreadadoption can occur. 16-19.qxp_Layout 1 04/10/2018 12:22 Page 2DISTRIBUTION18Pharma Business International www.pbiforum.netwith blockchain. Compare this with thetwenty-two per cent when asked in 2017and the impact blockchain is having onthe industry quickly becomes apparent.While this headline figure might be causefor celebration, bear in mind that forty percent of those surveyed said they are notcurrently looking at implementing or haveno plans to implement blockchain. Although this technology has beenaround for some time now – growing outof the cryptocurrency sector – its widerapplications are still evolving withbusinesses and organisations taking acautiously optimistic approach. There are,however, barriers and challenges that firstneed to be considered and ratified beforethey can be overcome. For example, fifty-five per cent of those surveyed claimedthat access to skilled blockchainpersonnel is one of the biggest barriers,while sixteen per cent admitted thatblockchain is simply too difficult tounderstand. Access to skilled personal is,of course, the bigger challenge toovercome. Blockchain professions willundoubtedly be concentrated in majorurban areas, which doesn’t helppharmaceutical and life sciencescompanies based outside of towns andcities. Until there’s a larger talent pool todraw from, adoption will be slow,especially amongst smaller firms. To thatend, The Pistoia Alliance is calling forcollaboration between the life scienceand pharmaceutical industries on thedevelopment and implementation ofblockchain. Steve Arlington, President of ThePistoia Alliance, says: “We hope thesecurity benefits of the technology helpto lessen reticence over sharing andtransferring data or information and willfacilitate further cross-industrycollaboration and knowledge sharing. Webelieve blockchain will open up newopportunities for the industry to beginsharing data more securely to advancedrug discovery, ultimately makingpatients’ lives better.”One of the recent examples ofblockchain deployment in thepharmaceutical supply chain sees Dutchcontract packer Tjoapack partnering withUK technology company Veratrak tolaunch a new blockchain tool. Accordingto Tjoapack, the partnership will16-19.qxp_Layout 1 04/10/2018 12:22 Page 3Pharma Business International 19www.pbiforum.netDISTRIBUTION© Shutterstock /Artem Procomprise multiple projects focussing onusing the properties of blockchain toenable transport collaboration acrossmultiple pharmaceutical supply chainpartners which, it says, will reduceservice lead times and drive informationsharing through a secure digital chain.The first of these projects is due to rollout later this year and will secure andoptimise the data sharing processesinvolved in setting up stock keeping unitsready for packaging from product masterdata to artwork. “This kind of technology will beinvaluable when it comes to securing thepharmaceutical supply chain,” saysDexter Tjoa, Director Corporate Strategy,Tjoapack. “Blockchain is already beingexplored as a solution to support trackand trace programmes which followphysical goods through the supply chain.It could also have huge benefits when itcomes to improving data transparencythrough secure audit logs that areaccessible for multiple parties.”Blockchain is one part of the widerdigitisation of the supply chain, withsmart solutions transforming the journeyof new products. TraceLink, the trace andtrace network for the life sciencesindustry, is making the digitisation of thesupply chain its mission. The US-headquartered organisation has recentlyclosed a $93 million investment roundwhich it plans to use to accelerate theexpanded digitisation of the globalpharmaceutical supply chain. The fundswill be used to integrate real-timeinformation sharing which, TraceLinksays, will create a highly predictablesupply chain for the industry. TraceLink CEO Shabbir Dahod put itbest when he said: “As we continue toexecute on our vision to build the digitalsupply chain, we are making strategicinvestments in machine learning, artificialintelligence and blockchain, ultimatelydelivering an open development platformfor information sharing and predictiveanalytics.”Blockchain is fast becoming animportant tool for the pharmaceutical andlife science sectors, offering an integrateddigital solution that offers greater levels ofsafety, transparency and trust betweensuppliers. The future of the supply chainis undoubtedly digital. 16-19.qxp_Layout 1 04/10/2018 12:22 Page 4Next >