Genentech is a leading biotechnology company that discovers, develops, manufactures and commercializes pharmaceutical products to treat patients with significant unmet medical needs. Genentech commercialize multiple biotechnology products and also receive royalties from companies that have licensed our technology.
Increase revenue increase from strategic alliances or acquisitions
Horizon 2010 Genentech’s corporate growth strategy for the next 5 yrs
Bring 20 new molecules into clinical development
Bring 15 major new products to market
Be the #1 US oncology company in sales
Increase EPS by 25% annually
Have 12 billion in free cash flow
Apply discipline decision-making in managing its portfolio of R&D
Be a leader in translating basic scientific discoveries into novel therapeutics for significant unmet medical needs
Products in the pipeline Number of products Phase or combinations Awaiting FDA action 1 Preparing for filing 2 Phase 3 13 Preparing for phase 3 4 Phase 2 8 Preparing for phase 2 3 Phase 1 and preparing for phase 1 multiple molecular entities
Genentech revolutionized the concept of pharma R&D: first biotech IPO , first business/science.
Biotech R&D tool kit: from medical chemistry in 1977 to molecular biology, cell biology, genetics, bio-informatics, computational chemistry, genetics, bio-informatics, computational chemistry, proteic chemistry, combinational chemistry, genetic engineering, high-throughput screening, and many others. Genentech has active access to all these tools.
Magnitude of tacit knowledge in biotech R&D and how it impedes learning
Need for highly integrated communication among scientists: there are no bridges.
Strategic collaborations ( more to come )
Drugs R&D can not be broken down in an orderly set of independent sub-problems.
R&D is Genentech most fundamental strategic patrimony asset. In 2007: 2.45B (=88% of NI; 21% of TOR, was 19% in 2006 and 2005)
Functional strategies: Strategic collaborations management Novartis owns 33% of Genentech through Roche Roche owns 56% of Genentech Genentech Co-develop Biogen gives 31.5m to develop cancer treatment Collaboration Thermo Fisher Scientific to provide siRNA Therapeutics Second Collaboration Nerviano Medical Sciences to discover antibody drug conjugates Co-develop & US commercial rights Glycart Biotech AG and Roche for GA 101 molecule. $105m in R&D expense Benefits : New products, R&D funding, profit sharing, publicity, marketing, global and domestic reach
Realizing that the approaches needed to develop more innovative drugs differ enormously from those required to develop less innovative drugs and implement such different strategies.
Establishing external, longer-term collaborations: alliances will continue to be critical complement to internal R&D
More sharing of properietary infos
Greater joint learning
Larger, more productive investments
Developing cross-disciplinary research and knowledge: how do we connect the tools?
Developing translational research: how stem cells divide and specialize = basic research => developing hypotheses and insights about using stem cells to treat diabetes is an example of translational research.
Functional strategies: R&D developments
Functional strategies: Regulatory – Accelerated Approval FDA accelerated approval Genentech recently submitted application to FDA for Avastin in the most aggressive form of brain cancer Glioblastoma, the most aggressive type of cancer with no cure and few treatment options. 90% of people with Glioblastoma see their cancer return. There are few effective treatments when initial therapy stops working. WHY? Glioblastoma is the most common type of brain tumor and there has been no substantial improvement in the treatment of glioblastoma for more than 20 years. People with this disease desperately need new treatment options. Only 15% of patients live six months without their cancer advancing.