Clarivate Releases Predictive Analytics to Power Life Sciences
Clarivate Plc (NYSE: CLVT), a global leader in providing trusted information and insight to accelerate the pace of innovation, today announced the enhancement of Cortellis Deals Intelligence, a leading source in the life sciences transaction information sector. New features include trade trend visualizations and predictive analytics, allowing users to confidently follow the trade closing landscape and quickly understand an asset’s potential value.
It is often difficult for business development teams to find and analyze the information they need to calculate the potential net present value (NPV) of license applicants at each stage of a drug’s development. In their efforts to calculate the ROI of these assets, companies take a data-driven approach, using information from a variety of internal and external sources. Existing NPV models can be crude and error prone due to manual calculations and data gaps. Artificial intelligence (AI) can provide a more sophisticated and faster output of the value of a potential licensed asset. Using comprehensive data and AI to predict the size of possible transactions can enable life science organizations to invest in life-saving drugs earlier and transform patients’ lives.
New predictive analytics capabilities include intuitive insights and targeted data filters, making it easier for business development professionals to calculate potential transaction sizes and upfront payments without resorting to manual and static analysis. Users can quickly and easily research and analyze deal size in their therapy area, molecule, and partner type to predict trade values and assess risk. Predictive analytics capabilities are powered by a constant flow of up-to-date information, enabling adjusted market trends and more sophisticated predictions compared to static and manual NPV models. The new algorithm presented in Cortellis Deals Intelligence is the latest predictive analysis developed by Clarivate following the successful launch of its drug Timeline & Success Rates predictive tool. Seamless connectivity and interoperability with the larger Cortellis suite of life science intelligence solutions enables more comprehensive research and analysis during drug development activities.
Studies show that deal-making, which sees companies collaborating, sharing risks, resources and potential rewards, reached record levels in 2020, with nearly 2,000 deals valued at nearly $ 200 billion.1 In 2020, there were 573 discovery and preclinical agreements, including licenses, collaborations and joint ventures, with an aggregate value of $ 73.96 billion – more than 1/3 of the total value of the transaction.2 In total, 124 of these agreements had disclosed terms, with an average transaction size of $ 556 million. In 2019, there were 419 discovery and preclinical operations with an overall value of $ 58.6 billion, Of which 128 disclosed conditions for an average of $ 458 million.3 These results further demonstrate that biopharmacy is increasing investments (volume and transaction size) in start-up assets year on year.
Ketan patel, Vice President, Cortellis, Clarivate, said, “We have seen a shift in the negotiating space over the past decade, from clinical stage to early partnership. It has become increasingly difficult for biopharmacy to calculate the value of these discovery and preclinical stage assets as much is still unknown about their development. They require a higher level of investment and have a higher risk of failure. An AI tool, like the predictive transaction analysis available in Cortellis Deals Intelligence, can take some of the guesswork out of NPV analysis. Ultimately, biopharmacy can make smarter investments to get life-saving drugs to patients quickly. “
Clarivate is committed to fully supporting its customers throughout the lifecycle of drugs, devices and medical technologies to advance human health by enabling customers to make informed, evidence-based decisions. Clarivate will continue to combine broad domain expertise with data science, providing critical information to support clinical and business success. These enhancements to Cortellis Deals Intelligence are just one of many investments Clarivate has made – and will continue to make – to expand the Cortellis suite of life science intelligence solutions.
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