Sector News

Baxalta bets on ‘external innovation’ to meet its $8.5B goal and ward off Shire

August 21, 2015
Life sciences
Baxalta is hoping to launch 20 new drugs by 2020, and the nearly 2-month-old company is taking a decentralized approach to R&D on the way there, relying on partners to handle early-stage work before finishing projects itself.
 
Speaking to the Boston Business Journal, Baxalta R&D chief John Orloff said his company’s new hub in Cambridge, MA, is going to be far from a traditional research campus. Baxalta plans to house about 350 R&D workers at the site by 2016, but the company isn’t building a foot of lab space, keeping its in-house discovery unit in Europe. Instead, the Cambridge facility will be Baxalta’s dealmaking hub, Orloff said, seeking out partnerships that can widen the company’s pipeline.
 
“We are discovering that a lot of the discovery and basic research is being done in academia, is being done in biotech, and this is the hub of the biotech community,” Orloff told the BBJ. “… Our whole approach is one based on external innovation.”
 
Orloff’s words echo a great many of the multinational drugmakers piling into Cambridge, with newcomers like Eli Lilly and Bristol-Myers Squibb joining entrenched giants including Novartis and Biogen.
 
But Baxalta, thanks to an unwelcome buyout offer from Shire, has an air of immediacy with its pipeline work. About a week after the company completed its split from Baxter, Shire showed up with an unsolicited proposition to buy Baxalta for roughly $30 billion in stock, an offer the company refused. Last month, Shire went public with its pitch, betting it can convince Baxalta shareholders to force management into a conversation on the topic. Now Baxalta has gone on the defensive, touting its pipeline as undervalued and preaching patience to investors.
 
The company unveiled that 20-drug goal before its launch last month, projecting to add $2.5 billion in annual sales onto the roughly $6 billion in revenue it currently pulls in.
 
By Damian Garde
 
 

comments closed

Related News

October 10, 2021

Nutraceutical giants’ partnerships inject life back into industry at Vitafoods

Life sciences

Some of industry’s biggest players are joining forces to bring cost-effective yet scientifically backed offerings to the nutraceuticals market. Co-creation is reinvigorating supplement innovation, pairing together companies’ diverse expertise, sales networks and clinical trial investments.

October 10, 2021

Pilot launch complete: GlaxoSmithKline’s malaria shot scores WHO backing for wider rollout in Africa

Life sciences

GlaxoSmithKline has spent many years developing and testing its world-first malaria vaccine, but even after a positive recommendation from European regulators in 2015, the shot still isn’t widely deployed. That’s set to change with the World Health Organization’s (WHO’s) blessing for the vaccine.

October 10, 2021

Henrietta Lacks’ estate sues Thermo Fisher for continued sale of HeLa cells without family consent

Life sciences

A sample of Henrietta Lacks’ tissue was taken from her cervix without her consent while she was undergoing cancer treatment at Johns Hopkins Hospital in 1951. Her cells have subsequently been used to develop the polio vaccine, HPV vaccines and gene-mapping techniques and continue to be sold for research purposes by Thermo Fisher Scientific.

Send this to a friend