Pharma’s Biggest Losses: Once-Dropped Drugs Make Lucrative Comebacks

[{"selector":"#anim-9364a35f-996b-44b9-b1ae-94ee5e1b2296","keyframes":{"opacity":[0,1]},"delay":0,"duration":1200,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a9f03ccf-64f2-4a74-bcef-352707381744","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Gray Frame Corner Gray Frame Corner

1. Sanofi has acquired diabetes drug Tzield, which was once discarded by Eli Lilly, and its owner Provention Bio for $2.9 billion.

[{"selector":"#anim-da51d02b-1dd5-4e0c-a001-6f41681a7b40","keyframes":{"opacity":[0,1]},"delay":0,"duration":2500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Gray Frame Corner Gray Frame Corner

2. Pharmaceutical companies sell the rights to drug development programs when they have no intention of manufacturing the drug or when the research process doesn't turn out as planned.

[{"selector":"#anim-afee8520-a8a2-45ab-8904-34e8776b85db","keyframes":{"opacity":[0,1]},"delay":0,"duration":2500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Gray Frame Corner Gray Frame Corner

3. The decision to license or sell a drug depends on profitability and a company's strategic mission.

[{"selector":"#anim-59730e39-1dc7-442a-9145-ead2f7882b86","keyframes":{"opacity":[0,1]},"delay":0,"duration":2500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Gray Frame Corner Gray Frame Corner

4. A company may drop all products in a specific area, even if they're successful.

[{"selector":"#anim-1fd322ed-bd38-44a6-a2d8-53930a0bfc71","keyframes":{"opacity":[0,1]},"delay":0,"duration":2500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Gray Frame Corner Gray Frame Corner

5. Some pharmaceutical products perform better elsewhere, leading to big buyouts as companies try to expand their portfolios.

[{"selector":"#anim-c673d436-80ae-4027-952f-dd3e72c232ff","keyframes":{"opacity":[0,1]},"delay":0,"duration":2500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Gray Frame Corner Gray Frame Corner

6. Momelotinib, a medication for patients with myelofibrosis, was sold by Gilead Sciences to Sierra Oncology for $3 million in 2018 after mixed clinical trial results but succeeded under the new ownership and was acquired by GSK for $1.9 billion in 2022.

[{"selector":"#anim-5b35f906-f4ee-4782-8802-fe2364e4d38f","keyframes":{"opacity":[0,1]},"delay":0,"duration":2500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Gray Frame Corner Gray Frame Corner

7. Lebrikizumab, a monoclonal antibody used to treat atopic dermatitis, was acquired by Eli Lilly from Dermira for $1.1 billion in 2020.

[{"selector":"#anim-26718d5f-17e2-4c0b-9e21-3f06c6d6b8b7","keyframes":{"opacity":[0,1]},"delay":0,"duration":2500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Gray Frame Corner Gray Frame Corner

8. Zejula (niraparib), a poly ADP-ribose polymerase inhibitor that targets a family of proteins involved in cell response, was accepted by Tesaro from Merck for $7 million in 2012 and later acquired by GSK for $5.1 billion in 2019.

[{"selector":"#anim-152c6db2-a9b3-4b4a-b43b-3762b5075e62","keyframes":{"opacity":[0,1]},"delay":0,"duration":2500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Gray Frame Corner Gray Frame Corner

9. Pharmaceutical companies may restrict a drug's indications if concerns arise about it.

[{"selector":"#anim-464c666c-8744-45c5-84b4-8ac2115dabfd","keyframes":{"opacity":[0,1]},"delay":0,"duration":2500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Gray Frame Corner Gray Frame Corner

10. Andrew Lo, director of the Laboratory of Financial Engineering at MIT Sloan School of Management, believes that the trend of drugs changing hands will continue as some companies fall into financial need and sell their assets.

[{"selector":"#anim-ac3fc606-0a11-444f-aba5-a3682aa5ee3d","keyframes":{"opacity":[0,1]},"delay":0,"duration":2500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Gray Frame Corner Gray Frame Corner

Swipe up for more BIOMARKER news!

[{"selector":"#anim-5ab35ea2-455a-4609-a3c7-bf10b1bf376d","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Learn more