Pharma BD Deal Intelligence
OSI Pharmaceuticals' $200M purchase of Gilead's oncology pipeline and Boulder R&D site was a clinical bust: all three acquired candidates—OSI-211, OSI-7904L, and GS-7836—failed to show meaningful efficacy and never reached approval. The only residual value was the Boulder talent base redirected to Tarceva, before OSI shuttered the site in 2009.
The three acquired oncology drug candidates all failed to show clinical efficacy; the only lasting value was the Boulder talent base OSI later leaned on for Tarceva, before shuttering the site in 2009.
Full analysis, sources & comparables →Gilead announced sale of its Boulder oncology pipeline and operations to OSI for up to $200M ($130M cash + $40M stock at close + up to $30M in…
Closing announcement: OSI paid $130M cash + 924,984 shares; acquired three next-generation cytotoxic candidates plus Gilead's Boulder R&D site. Lead asset…
Phase II of OSI-211 (liposomal lurtotecan) in topotecan-resistant ovarian cancer reported limited single-agent activity, foreshadowing the eventual…
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Asset purchase: $130M cash + $40M OSI stock + up to $30M milestones (NX211). Acquired Gilead's Boulder oncology pipeline/site. Up to $200M total.
The three acquired oncology drug candidates all failed to show clinical efficacy; the only lasting value was the Boulder talent base OSI later leaned on for Tarceva, before shuttering the site in 2009.
Assessment window: 15yr post-close.
20K US cases/yr
Topoisomerase I inhibitors are a cytotoxic chemotherapy class used in advanced solid tumors — particularly platinum-resistant ovarian cancer, small cell lung cancer, and refractory head & neck squamous cell carcinoma. The class is dose-limited by myelosuppression and diarrhea, motivating liposomal formulations designed to extend circulation half-life and improve tumor uptake.
In 2001 the topoisomerase I inhibitor class was anchored by Pharmacia's Camptosar (irinotecan, colorectal) and GSK's Hycamtin (topotecan, ovarian/SCLC). Liposomal topo I formulations were a logical next-generation play: Gilead's NX211 (liposomal lurtotecan) was in Phase II for ovarian and SCLC and was the most clinically advanced candidate transferred to OSI. The deal also moved Gilead's Boulder, Colorado oncology infrastructure (clinical, regulatory, drug-development staff) plus three next-generation cytotoxic candidates to OSI, complementing OSI's signal-transduction (gene-targeted small molecule) pipeline that would later yield Tarceva (erlotinib) — approved 2004 in NSCLC. Strategically the deal was a divestiture by Gilead refocusing on antivirals (HIV, hepatitis) and a pipeline-bulking move for OSI ahead of its 2002 Tarceva collaboration with Genentech and Roche. NX211 ultimately failed to demonstrate sufficient activity in topotecan-resistant ovarian cancer and was discontinued.
| Deal | Year | Value | Outcome |
|---|---|---|---|
| OSI Pharmaceuticals / Gilead Sciences (oncology assets) (this deal) | 2001 | $200M | 28 |
| OSI Pharmaceuticals / EyeTech Pharmaceuticals Inc. | 2005 | $935M | 10 |
| Abbott Laboratories / Knoll Pharmaceutical Company (BASF Pharma) | 2001 | $6.9B | 100 |
| Vertex Pharmaceuticals Incorporated / Aurora Biosciences Corporation | 2001 | $592M | 95 |
| Amgen Inc. / Immunex Corporation | 2001 | $16.0B | 91 |
| Swedish Orphan Biovitrum AB / Biovitrum | 2001 | $493M | 84 |
| Barr Laboratories Inc. / Duramed Pharmaceuticals Inc. | 2001 | $589M | 82 |
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