Post on 31-May-2015
© 2010 Innovaro, Inc. 1
What does a small/medium pharma-biotech need to do to get on BigPharma’s radar?
Mark McBride Managing Director, Innovaro
Pharmalicensing Science City York, April 2011
2© 2010 Innovaro, Inc.
Key Global Issue
BigPharma are losing exclusivity on their blockbuster products as they come off patent.
This leads to
fall in revenues, and
pressure from shareholders as shareholder value falls
3© 2010 Innovaro, Inc.
Key Global Issue – Example 1
World’s two biggest selling drugs both off-patent by end of 2012
Lipitor: $13b annual sales
Plavix: $6b annual sales
In total, more than $90b of annual “blockbuster” sales as of January 2008 will be off-patent by the end of 2012
Consequence: massive cuts are demanded, hitting R&D Groups.
4© 2010 Innovaro, Inc.
Key Global Issue – Example 2
2010:
AstraZeneca & GlaxoSmithKline announce:
combined 27,000 job cuts (nearly 20% of workforce), largely from R&D
plant closures
reduction in areas of therapeutic focus
future pipeline development driven by external acquisition/partnering of IP (opportunity)
5© 2010 Innovaro, Inc.
Opportunity
As BigPharma embraces Open Innovation it puts aside its traditional “only-invented-here” attitude.
Small/medium pharma-biotechs have opportunity to put themselves in front of BigPharma and highlight innovative IP.
6© 2010 Innovaro, Inc.
ProblemHow to get on to the radar when less than 15% of interactions with BigPharma are even reviewed?
Focus: this workshop will discuss how to manage your visibility and ensure you have the best opportunity to partner successfully
7© 2010 Innovaro, Inc.
Structure of Workshop
Understand where your IP fits into the global marketplace
Understand what drives your partner
Understand what partnership is correct
What to do next
8© 2010 Innovaro, Inc.
Global Market – Therapeutic Areas
alimentary/ metabolic
infection
cancer
parasitic
blood/clottingCVdermgenitourinary
hormonal
immunological
musculoskeletal
neurology
respiratorysensory
715 Drugs in Phase III or Pre-Registration (1 drug can be in more than 1 Area)
Source: Pullan Consulting
9© 2010 Innovaro, Inc.
Global Market - Molecules
synthetic chemical
76%
protein5%
peptide2%
antibody6%
cells and virus particles
3%
natural products6%
nucleic acid2%
Source: Pullan Consulting
10© 2010 Innovaro, Inc.
Global Market – Deal StagesBiotech Alliances with Big Pharma
Alliances from 2005 – 20102,114 deals announced
Stage at Deal SigningDiscovery 901Lead Molecule 77Preclinical 256Phase I 155Phase II 179Phase III 219Approved 357
Source: Deloitte Recap LLC
11© 2010 Innovaro, Inc.
Global Market – Deal StagesBiotech Alliances with Big Pharma
12© 2010 Innovaro, Inc.
Stage 2005-10 2005-09 2010 % 2010 % 2005-09 % change
Discovery 901 832 69 21.6 46 -53%
Lead Molecule 77 76 1 0.1 4 -98%
PreClinical 256 191 65 20.3 10 +103%
Phase I 155 107 48 15.0 6 +150%
Phase II 179 151 28 8.8 8 +10%
Phase III 219 197 22 6.9 11 -37%
Approved 357 270 87 27.2 15 +81%
Deal Stages (2005-9 v 2010)
13© 2010 Innovaro, Inc.
Global Market & your IP
Where does your IP fit into the Global Marketplace?
Is your IP potential strong when compared to BigPharma’s key areas of interest?
As BigPharma is risk averse then position your proposal to best match their needs,
otherwise….
14© 2010 Innovaro, Inc.
Is BigPharma correct for you?
If your IP does not match BigPharma’s needs, or your partner is looking to In-License only at PIIb+ then consider Specialty Pharma instead
Reactive
Committed
Consequence
Proportional
15© 2010 Innovaro, Inc.
Understand your Partner
Shareholder needs (public/private) – are they risk averse?
What in your USPs will excite them?
Look at their pipelines
Talk to their scouts as soon as possible
Bring them solutions, not just pure science
16© 2010 Innovaro, Inc.
What Partnership is best for you?
Be open-minded – the market is fluid and so must you.
Licensing (losing popularity) – be prepared to battle for significant up-fronts & milestones.
CRADAs (gaining popularity)– gets BigPharma in early (but not necessarily
committed)– correct data generated
17© 2010 Innovaro, Inc.
Action Items - 1
Have a Coherent Plan from Day 1:
Management Team
Understand your own IP & USPs
What sort of Partner will be best for you?
Understand prospective partner’s needs, and best deal structure
Data Package (budget for this from start)
Inject business reality & educate shareholder expectations
18© 2010 Innovaro, Inc.
Action Items - 2
Raise your profile:
Build a story (benefits as well as science)
Engage a good PR Company
Talk to the Scouts
Engage Opinion Leaders
Engage Innovaro Pharmalicensing
19© 2010 Innovaro, Inc.
Innovaro Pharmalicensing
Partnering Solutions for the LifeSciences
Innovaro Pharmalicensing is a leading resource for partnering, licensing and business development across the lifescience and biopharmaceutical industries
Through a unique offering combining Partnering Search and on-line Profiling services, the international biopharmaceutical, lifescience & healthcare industries utilise Innovaro Pharmalicensing to identify and engage with prospective licensing, marketing and discovery/ development partners around the world.