Merck/Portola Pharmaceuticals – Top 10 biotech deal terminations of 2011

Posted under Blog, Companies, Diagnostics, Funding, Medical Devices, Medical Supply, Merck, Pharmaceuticals, Portola Pharmaceuticals, Startups, Universities, Videos by John Carroll

Partners: Merck/Portola Pharmaceuticals
Based: $MRK - Whitehouse Station, NJ; Portola - South San Francisco
Termination date: March 2011
Length: 1.7 years
Deal: $470 million, $50 million upfront
Program: Betrixaban, an oral Factor Xa inhibitor anticoagulant

What went wrong: According to Dr. Luciano Rossetti, senior vice president of global scientific strategy at Merck, the anticlotting drug betrixaban just didn't make the cut when Merck was culling through its late-stage prospects. But unlike many of the other companies on this list, Portola didn't take the news sitting down. CEO William Lis vowed to make the termination a "transformational event" for the company. And that proved no empty boast.

In November, Portola, a 2009 Fierce 15 company, was able to get its financial backers to put up $89 million to push the treatment through late-stage testing. And just a few weeks before that, Biogen Idec ($BIIB) had stepped up with a $553 million deal--$45 million upfront--to partner on autoimmune disease.

Betrixaban has the potential to become the "first oral Factor Xa inhibitor to the market for both hospital and post-discharge prevention of pulmonary embolism in acute medically ill patients," said Lis.

Take that, Merck.

Portola raises $89M for late-stage betrixaban study

Posted under betrixaban, Biotech Venture Capital, Blog, Companies, Diagnostics, Funding, Medical Devices, Medical Supply, Merck, Pharmaceuticals, Portola Pharmaceuticals, Startups, Universities, Videos by John Carroll

Just eight months after Merck ($MRK) dumped its collaboration with Portola Pharmaceuticals on the anti-clotting drug betrixaban, the South San Francisco biotech has rounded up $89 million in new financing to push the program through a late-stage program by itself. Existing investors joined hands with Temasek, an Asia investment company, and Eastern Capital Limited to put up the cash.

"With the capital raised, Portola can independently complete a pivotal Phase III betrixaban trial with the potential for it to be the first oral Factor Xa inhibitor to the market for both hospital and post-discharge prevention of pulmonary embolism in acute medically ill patients," said a confident William Lis, chief executive officer of Portola, a 2009 Fierce 15 company. "An estimated 426,000 hospitalizations and 180,000 deaths from pulmonary embolism occur annually in G7 nations, with the majority occurring in medical patients."

This has been a big year for Portola. Just a few weeks ago, Biogen Idec ($BIIB) agreed to partner up on a $553 million autoimmune drug pact, with $45 million in upfront and equity money. That helped take the sting out of Merck's decision to drop their $470 million deal on betrixaban, which included a $50 million upfront payment.

- here's the press release

Special Report: Portola Pharmaceuticals - 2009 Fierce 15

Related Articles:
Biogen partners with Portola in $553M autoimmune drug pact
Portola vows to go it alone after Merck spurns cardio drug pact