Pharma BD Deal Intelligence

Sumitomo Dainippon Pharma Co., Ltd. / Tolero Pharmaceuticals, Inc.

2016 · Acquisition/Merger · $780M · Complete

WRONG BY 56 POINTS

A $780M bet on Tolero's oncology pipeline produced zero approved drugs and fed into hundreds of millions in goodwill/asset impairments

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The coverage arc

Dec 21, 2016 BioCentury Neutral

BioCentury detailed the alvocidib licensing chain (originally from Sanofi, retaining downstream royalty obligations) and characterized the acquisition as a…

Dec 21, 2016 Endpoints News Neutral

Sumitomo Dainippon Pharma has stepped up with a $200 million down payment on its purchase of Salt Lake City-based Tolero... Tolero has been building a case for…

Dec 22, 2016 BioPharma Dive Bullish

Sumitomo CEO Masayo Tada framed the acquisition as reinforcing the oncology pipeline to offset declining Latuda revenues; alvocidib was positioned with…

Source summaries from our enrichment pipeline; follow links for originals.

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Sumitomo Dainippon Pharma agreed to acquire Salt Lake City-based Tolero Pharmaceuticals for $200M upfront plus up to $580M (development milestones up to $430M plus commercial milestones up to $150M), totaling up to $780M. Lead asset alvocidib, a CDK9 inhibitor in midphase trials for AML/MDS. Tolero later merged with Boston Biomedical to form Sumitomo Dainippon Pharma Oncology in 2020.

Did it work? Outcome assessment

A $780M bet on Tolero's oncology pipeline produced zero approved drugs and fed into hundreds of millions in goodwill/asset impairments

Strategic verdict
Failed to Achieve
Financial impact
Dilutive
Pipeline outcome
Assets Stalled

Key facts

Related deals — scored

DealYearValueOutcome
Sumitomo Dainippon Pharma Co., Ltd. / Tolero Pharmaceuticals, Inc. (this deal)2016$780M24
Sumitomo Dainippon Pharma Co., Ltd. / Cynapsus Therapeutics Inc.2016$624M28
Sumitomo Dainippon Pharma Co., Ltd. / Otsuka Pharmaceutical Co., Ltd.2021$270M
Sumitomo Dainippon Pharma Co., Ltd. / Roivant Sciences Ltd. (Sumitovant five-Vant deal)2019$3.0B
Amgen Inc. / Micromet Inc.2012$1.2B88
Servier / Shire plc (Oncology Business)2018$2.4B88
AstraZeneca PLC / Alexion Pharmaceuticals Inc.2020$39.0B86

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