What does a small/medium
Pharma-Biotech need to do to
get on “Big Pharma’s” radar?
Mark McBride
Managing Director, Pharmalicensing
BioSynergy, FERA, January 2014
© 2012 IP Technology Exchange, Inc.
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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
© 2012 IP Technology Exchange, Inc.
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Key Global Issue – Example 1
World’s two biggest selling drugs both offpatent within last two years
► Lipitor (Pfizer): $13b annual sales
► Plavix (BMS/Sanofi): $6b annual sales
In total, more than $83b of annual
“blockbuster” sales as of January 2010
came off-patent within last four years.
Another $150b+ due by end of 2016
Consequence: massive cuts are
demanded, hitting R&D Groups.
© 2012 IP Technology Exchange, Inc.
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Key Global Issue – Example 2
Last five years:
Astra Zeneca, GSK & Pfizer announce:
► combined 67,000 job cuts (nearly 20% of
workforce), largely from R&D
► plant closures (Sandwich / Alderley Park)
► reduction in areas of therapeutic focus
► future pipeline development driven by
external acquisition/partnering of IP
(opportunity)
© 2012 IP Technology Exchange, Inc.
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Opportunity
As Big Pharma embraces Open Innovation
it puts aside its traditional “only-inventedhere” attitude.
Small/medium pharma-biotechs have
opportunity to put themselves in front of
BigPharma and highlight innovative IP.
© 2012 IP Technology Exchange, Inc.
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Problem
How to get on to the radar when less than 15% of
interactions with Big Pharma are even reviewed?
Deals Agreed and Signed
(51 - 0.7%)
CDAs Exchanged (486 6.2%)
Opportunities Reviewed
(1,152 - 14.8%)
Interactions with Outside
Parties (7,800 - 100%)
0
Source: Merck & Co, 2009
50
100
Focus: this presentation will discuss how to manage your visibility
and ensure you have the best opportunity to partner successfully
© 2012 IP Technology Exchange, Inc.
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Key Points
►Understand where your IP fits into the
global marketplace
►Understand what drives your partner
►Understand what partnership is correct
►What to do next
© 2012 IP Technology Exchange, Inc.
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Therapeutic Areas of Interest
Musculoskeletal
Dermatology
Injury
Congenital Diseases
Women's Health
Digestive Diseases
Blood Disorders
Ophthalmology
Platforms
Genitourinary Diseases
Respiratory Diseases
Infectious Diseases
Cardiovascular
Endocrine & Metabolic
Oncology
Chronic Inflammation
CNS
0
10
20
30
40
50
60
70
80
90
100
Percentage of companies that expressed an interest (27 company sample)
Source: Nature Biotechnology 2013
© 2012 IP Technology Exchange, Inc.
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Global Market – Deal Stages
Biotech Alliances with Big Pharma
Alliances from 2005 – 2010
2,114 deals announced
Stage at Deal Signing
Discovery
Lead Molecule
Preclinical
Phase I
Phase II
Phase III
Approved
901
77
256
155
179
219
357
Source: Deloitte Recap LLC
© 2012 IP Technology Exchange, Inc.
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Global Market & your IP
Where does your IP fit into the Global
Marketplace?
Is your IP potential strong when compared
to Big Pharma’s key areas of interest?
As Big Pharma is risk averse then position
your proposal to best match their needs,
otherwise….
© 2012 IP Technology Exchange, Inc.
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Is Big Pharma correct for you?
If your IP does not match BigPharma’s
needs, or your partner is looking to InLicense only at PIIb+ then consider Specialty
Pharma instead
► Reactive
► Committed
► Consequence
► Proportional
© 2012 IP Technology Exchange, Inc.
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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
© 2012 IP Technology Exchange, Inc.
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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 Big Pharma in early (but not
necessarily committed)
- correct data generated
© 2012 IP Technology Exchange, Inc.
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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 & manage your
shareholders’ expectations
© 2012 IP Technology Exchange, Inc.
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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 Pharmalicensing
© 2012 IP Technology Exchange, Inc.
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Pharmalicensing
Partnering Solutions for the LifeSciences
Pharmalicensing is a leading resource for
partnering, licensing and business development
across the lifescience and biopharmaceutical
industries
Through a unique offering combining Strategic
Partnering Search and on-line Business Profiling
services, the international biopharmaceutical,
lifescience & healthcare industries utilise
Pharmalicensing to identify and engage with
prospective licensing, marketing and discovery/
development partners around the world.
© 2012 IP Technology Exchange, Inc.
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