Pharma BD Deal Intelligence
A ~$780M Sumitomo Dainippon bet on Tolero's oncology pipeline that produced zero approved drugs. Lead asset alvocidib (CDK9 inhibitor for AML/MDS) was terminated in 2021, and the deal ultimately fed into hundreds of millions in goodwill and asset impairments.
A $780M bet on Tolero's oncology pipeline produced zero approved drugs and fed into hundreds of millions in goodwill/asset impairments
Full analysis, sources & comparables →BioCentury detailed the alvocidib licensing chain (originally from Sanofi, retaining downstream royalty obligations) and characterized the acquisition as a…
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…
Sumitomo CEO Masayo Tada framed the acquisition as reinforcing the oncology pipeline to offset declining Latuda revenues; alvocidib was positioned with…
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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.
A $780M bet on Tolero's oncology pipeline produced zero approved drugs and fed into hundreds of millions in goodwill/asset impairments
Assessment window: 5yr post-close.
22K US cases/yr
Acute myeloid leukemia is an aggressive hematologic malignancy of myeloid progenitors with a median age at diagnosis of 68 and 5-year survival around 32%. Myelodysplastic syndromes are clonal bone marrow failure disorders that frequently progress to AML. Both conditions remain difficult to treat in older or unfit patients who cannot tolerate intensive chemotherapy, driving demand for targeted oral agents and biomarker-guided therapy.
Sumitomo Dainippon's December 2016 Tolero acquisition (closed January 26, 2017) brought in alvocidib (formerly flavopiridol), a CDK9 inhibitor that down-regulates MCL-1 to overcome anti-apoptotic resistance in AML. Alvocidib achieved a 70% complete remission rate vs 46% with standard care in an NCI Phase 2 study and held FDA/EMA Orphan Drug Designations. The 2016-2017 AML competitive landscape was rapidly transforming: midostaurin (Rydapt, Novartis) gained FDA approval April 2017 for FLT3-mutant AML; enasidenib (Idhifa, Celgene/Agios) approved August 2017 for IDH2-mutant relapsed/refractory AML; and venetoclax (Venclexta, AbbVie/Genentech)—itself a BCL-2 inhibitor with a complementary apoptotic mechanism—was on track for the 2018 AML approval that would reshape front-line care for unfit patients. Ivosidenib (Tibsovo) followed for IDH1-mutant AML in 2018. Alvocidib's MCL-1-dependent biomarker positioning was differentiated but NDA submission slipped past the original 2018 target. Sumitomo merged Tolero with Boston Biomedical in 2020 to form Sumitomo Dainippon Pharma Oncology; alvocidib was eventually combined with venetoclax in Phase 1b trials but never reached approval.
| Deal | Year | Value | Outcome |
|---|---|---|---|
| Sumitomo Dainippon Pharma Co., Ltd. / Tolero Pharmaceuticals, Inc. (this deal) | 2016 | $780M | 24 |
| Sumitomo Dainippon Pharma Co., Ltd. / Cynapsus Therapeutics Inc. | 2016 | $624M | 28 |
| 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 | $1.2B | 88 |
| Servier / Shire plc (Oncology Business) | 2018 | $2.4B | 88 |
| AstraZeneca PLC / Alexion Pharmaceuticals Inc. | 2020 | $39.0B | 86 |
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More: 2016 deals · Sumitomo Dainippon Pharma Co., Ltd. deals · Hematology deals