Ablexis LLC's October 2010 consortium-based alliance with Pfizer Inc. and four other undisclosed "Top 15" drugmakers represents an important new variation in platform-technology dealmaking. [See Deal] Notwithstanding the significant up-fronts Sanofi and Celgene Corp. paid in late 2009 and 2010 respectively to Regeneron Pharmaceuticals Inc. and Agios Pharmaceuticals Inc., a recent analysis by START-UP shows the average up-front value of early-stage platform deals has fallen steadily from $50 million in 2007 to $30 million in October 2010. [See Deal][See Deal] ( See "Valuing Early-Stage Pharma Deals," START-UP , October 2010 Also see "Valuing Early-Stage Pharma Deals " - Scrip, 1 October, 2010..) For publicly traded companies the fall-off in alliance values makes it tough to build a viable revenue stream. But it's an even bigger problem for venture-backed companies. With the public markets still challenging and the decided preference of most Big Pharma to license rather than acquire technologies, companies that eschew drug development in lieu of building a robust platform face a thorny problem: attracting high-quality investors to fund their ideas in the first place when there is no obvious path to exit.
"It's been a chicken and egg situation," claims Larry Green, PhD, a scientific founder of Abgenix Inc. (acquired by
