I found these info from VRTX website.
"In December 1993, Vertex entered into a collaboration with GlaxoSmithKline covering the research, development and commercialization of HIV protease inhibitors, including Lexiva�/Telzir�, Agenerase�, and VX-385. Under the agreement, GlaxoSmithKline has paid Vertex $47 million in research, development and commercialization payments for Lexiva and Agenerase and now pays Vertex royalties for sales of both drugs. In addition, Vertex will receive milestone payments for the development and commercialization of VX-385. GlaxoSmithKline has exclusive rights to develop and commercialize Vertex�s HIV protease inhibitors worldwide, excluding the Far East. Vertex has retained certain manufacturing and co-promotion rights for its HIV protease inhibitors." ---bad move for giving 2 drug possibly 3 drugs for $47M plus loyalty.
"In December 2005, Vertex and GlaxoSmithKline entered into a new agreement to develop and commercialize VX-409, Vertex's novel, subtype selective sodium channel modulator for the treatment of pain. Under the terms of the agreement, GSK will have the exclusive right and license to develop and commercialize VX-409 and backup compounds worldwide. Vertex will receive a $20 million up-front payment and could receive up to an additional $385 million in development and sales threshold milestone payments based on the development of VX-409 and back-up compounds in major pharmaceutical markets across a range of indications. GSK will also pay Vertex royalties on annual net sales." ---I like the move except the deal includes backup compound.
In 1993 deal, backup compound means 2 drugs plus VX-385 in clinical trial. The best possiblity looks ok with $385M now in pain killer deal, will that be a lot money 10 years from now. I would rather them sell one pain killer for less. Keep the rest for the future. If there is no additional coumpound, VRTX is less likely to receive $385M unless the first drug is huge blockbuster.
"In June 2004, Vertex and Mitsubishi Pharma Corporation signed an agreement to develop and commercialize VX-950, Vertex's investigational oral protease inhibitor for the treatment of hepatitis C virus (HCV) infection, in Japan and certain Far East countries. As part of the agreement, Mitsubishi will make pre-commercial payments to Vertex of up to $33 million to support clinical development of VX-950. Additionally, Mitsubishi will pay royalties to Vertex on commercial sales of VX-950 in Mitsubishi's territories. Vertex anticipates that it could recognize a majority of these pre-commercial payments by the end of 2006.Vertex retains exclusive development and marketing rights to VX-950 in the rest of the world, including North America and Europe."
---Could they do better than $33M for far East right now after 2005 phase I data? Far East has a lot of countries.
In summary, VRTX has a tendency to make a early deal with other company instead of develop its drug through Phase I and PII, then make a better deal. If it is an average biotech company, the deal may be not so bad except the first one. But VRTX has shown its ability to find drugs better than average company. I would like to see they carry their candidates into Phase I and possibly phase II, then make a better deal.
<<he served as Senior Vice President, Head Global Business Development and Licensing for Novartis Pharma AG. In his nine years at Novartis, Dr. Hartmann also held the positions of Vice President, Head Scientific and Business>>
The "Business Development" experience may cojure up the idea that he was hired to find a buyer for VRTX. But I do not think so. Maybe he was hired to help VRTX to do better partnership negotiations and/or his licensing experience may come handy at VRTX?
actually you did not need to apologize for your post. It was humorous and also the message conveyed was correct--Boger made a BIG mistake in entering that long term lease for kendall park building. In fact he has made numerous mistakes. But I guess nobody is perfect. As long as he can produce good compounds and good partnerships and not waste money foolishly I am willing to forget about his past mistakes.
PS. Biodudde, fade6 and I as well as several others have been critical of the management in the past for their mistakes but I guess we have eased up due to the progress they have made during the past year.
Actually, I am interested in working in its drug discovery division. It is so much more fun to find the drug candidates. I am a biomedical researcher (not a joke). GSK is going to pay me if I don't talk too much about VRTX's business plan. I think VRTX is figuring it out anyway. At least they sold pain killer with much higher prices. More importantly, it still retains both US abd EU rights for VX-950.