A: the deal is for a preclinical compound (3 actually). You might not think this type of deal is unique or intriguing, but believe me when I say it is. And I’ll get to why in a minute. First though, you have to realize that Synta’s program is kinda close to an IND filing, but still has a ways to go. In these “tough times”, some companies with late stage products can’t give their crap away let alone sell it. So do the Synta gals and guys just know someone at Roche? Probably, but I’ll tell you what’s compelling here and why this is a solid way of making good bets if you’re a start up scientist/CEO or investor:

–pick a large market (inflammation) or truly unmet need (Duchenne’s) to develop in (either end of the spectrum, no in-between)

–pick a new target or attack a well-known target that has solid scientific etiological evidence

–develop, acquire or invest in a small molecule that is orally bioavailable and one that has shown solid effiicacy in a gold standard model

–make sure your safety and PK is checked off

Even at this point, you could invest just a few $MM for 1 molecule with follow ups and increase your project’s value 5-10x – even in a recession. Roche paid $25M cash UF ($16M now and $9M over 2 years for research) for 3 molecules (calcium channel modulator for inflammation) that ALMOST has all the above. I’d say Synta has spent about $5-10M on this program and now gets $16M in cash, $9M for R&D and close to $1B in milestones.

Of course, these sorts of molecules and deals are hard to find, but they exist. Also, there’s other unique ways to make money in biotech, but more on that later from your friendly neighborhood Iguana.

Again, solid science and solid connections = solid deals for 2009

Here’s the full press release from Synta

Image from monster

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