• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
CPhI-Berlin- December 2010-  Creating Innovation Through Partnering
 

CPhI-Berlin- December 2010- Creating Innovation Through Partnering

on

  • 958 views

CPhI Conferences

CPhI Conferences
Global Supplier& partnership Management
Kempinski Hotel, Berlin, Germany - December 1-2, 2010

Statistics

Views

Total Views
958
Views on SlideShare
948
Embed Views
10

Actions

Likes
0
Downloads
18
Comments
0

1 Embed 10

http://www.linkedin.com 10

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    CPhI-Berlin- December 2010-  Creating Innovation Through Partnering CPhI-Berlin- December 2010- Creating Innovation Through Partnering Presentation Transcript

    • Creating InnovationThrough PartneringDaisy Rivera-MuzzioSenior DirectorEPBU Product LicensingDecember, 2010
    • Agenda 1 Impact of Partnering on Innovation 2 Pfizer Established Products Business Unit 3 Pfizer EPBU Approach to Licensing Activities Lessons Learned While Becoming a Partner 4 of Choice 2
    • Innovation – Pharma vs. Other Industries •  Innovation is the second most important strategic focus for companies, (first is cost cutting and rationalization) •  Top innovators are 19% more likely to have an open approach to innovation compared to the average company, such as engaging in collaboration with external partners •  Top-line growth is the main goal of innovation for most companies Primary Strategic Value of Innovation Activities Top-line Growth •  Intensification of sales 58% 63% •  Enhancement of sales 70% 70% 70% 74% 75% 80% 87% 89% •  Enlargement of sales 42% Bottom-line Optimization 38% 30% 30% 30% •  Portfolio Clean-up 26% 25% 20% 13% 11% •  Product cost reductionChemicals Automotive Eng., Mach. Financial Inst. Manuf. Logistics Energy Electrical Time Fast Moving •  Innovation process & & Parma Manuf. & & High Tech & Insurance Goods & Services & Utilities Eng. & Cons. Goods structures Suppliers Electronics & RetailThe value form such activities strongly depends on the industry and whether the priority is top-line growthor bottom line optimizationSource: Arthur D Little: Innovation Excellence – January 2010; a global cross industry study on innovation 3
    • Innovation Through Internal Research vs. LicensingThe Return on Invested Capital for Internal R&D inBioPharma Has Fallen Sharply in the Past 10 Years •  Cost per successful drug has risen tenfold since 1980 from $150 million to approximately $2 billion in 2009 •  Regulatory hurdles for new drugs are higher and periods of economic return are shorter (generics) •  Developing a new medicine takes on average 10–15 years •  Approximately 40% of R&D spend is in pre-phase II research, where attrition rates are very high (historically, <10% probability of reaching the market)* Morgan Stanley, January 2010 4
    • R&D Spend is Climbing, Yet NME Approvals Have Declined, and Requirements for Regulatory/Market Acceptance Are Increasing Pharma Situation: R&D Productivity Decline 70 $60 PhRMA Member R&D Spending (Billion USD) 60 $48.5 $47.4 $45.8* $50 53 $43.0New Drug Approvals (NMEs) 50 $38.8 $39.4 $40 39 $32.1 $33.2 40 $29.8 Pharma 35 $26.0 Innovation Gap $30 30 31 30 28 $22.7 26 25 $21.0 $19.0 24 24 22 $16.9 27 21 22 $15.2 20 19 $20 20 18 $12.7 $13.4 17 $11.5 $10 10 0 $0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 New Drug Approvals (NMEs) PhRMA Member R&D Spending * Estimated Source: Burrill & Company 5
    • Productivity Declines Have Generated a Need for Diversification Regen Competitor Drug Biotech Consumer Dx Vaccine Device Generic Med J&J ● ● ● ● ● ● Pfizer ● ● ● ● ● ● ●Convergence Competitors GSK ● ● ● ● ● Novartis ● ● ● ● ● ● Abbott ● ● ● ● ● Roche ● ● ● ● Merck ● ● ● ● Teva ● ● ● ● Medtronic ● ● ● ● Source: Frankel Group Analysis 6
    • Unless the Probability of an In-House Molecule Reaching the Market is >30%, the Risk-Adjusted Economic Value Added (EVA) is 3 Times Higher Under the External Research Model with a Greater PredictabilityMorgan Stanley January 2010 7
    • Reliance on Licensing: View in 2008Steady Deal Flow, Rising Values With a Steady-Flow of …And Slightly More Deals …Deal Values Are Deals Licensed Out… Licensed in by the Top 20… on the RiseTotal # of Biotech Out-Licensing Number of In-Licensing Deal Value*Deals with Biotech and Pharma* Deals by Top-20 Biopharma** ($B) $100600 610 630 135 580 127 106 $80162 189 208 100 100 46 186 53 54 22 21 29 $60 75 67 126 31 40 $40 32 33 31 384 354 319 296 $20 46 48 44 49 43 $02003 2004 2005 2006 2003 2004 2005 2006 2007 2003 2004 2005 2006 Early-Stage Mid-Stage Late-Stage Research Pre-Clinical ClinicalWe are now seeing increasing competition among big pharma looking for promising compounds… – Head of BD, Big Pharma * Recap.com** Top-20 biopharma defined using Pharma Execs 2008 ratings, based on 2007 branded global pharma sales Source: EvaluatePharma; BCG analysis 8
    • Sample Activity2009 Partnering / Licensing Deal Value Month Pharmaceutical Biotech (USD M) Principal Focus September Roche PTC Therapeutics 1,900 Drug Discovery September AstraZeneca Nektar Therapeutics 1,500 Pain Therapeutics December AstraZeneca Targacept 1,240 Neurology January Bristol-Myers Squibb ZymoGenetics 1,107 Hepatitis C November Novartis Incyte 1,100 Hematology-Oncology November Takeda Pharmaceuticals Amylin Pharmaceuticals 1,075 Obesity November Bristol-Myers Squibb Alder Biopharmaceuticals 1,050 Monoclonal Antibodies May Sanofi-Aventis Exelixis 1,000 Oncology June GlaxoSmithKline Concert Pharmaceuticals 1,000 Deuterium Drugs June GlaxoSmithKline Chroma Therapeutics 1,000 Inflammatory January Wyeth Pharmaceuticals Santaris Pharma 847 RNA-based Medicine November Sanofi-Aventis Regeneron 800 Antibodies October Astellas Pharma (Japan) Medivation 765 Oncology April Merck Cardiome Pharma (Canada) 700 Cardiovascular October GlaxoSmithKline Prosensa (Netherlands) 680 RNAs October Merck Galapagos (Belgium) 596 Cardiovascular February Novartis Portola Pharmaceuticals 575 Cardiovascular November GlaxoSmithKline Nabi Biopharmaceuticals 540 Vaccines October Sanofi-Aventis Merrimack Pharmaceuticals 530 Oncology June Wyeth Pharmaceuticals Catalyst Biosciences 500 Hematology November GlaxoSmithKline Astex Therapeutics 500 Drug DiscoverySource: Burrill & Company 9
    • Volume of Deals is Shifting to Late Stagefor the Largest Buyers... Number of Licensing Deals by Top 10 Pharma Co*302010 0 Phase I Phase II Phase III Pre-App Approval Marketed 2008 2009* Top 10 Pharma companies as defined by highest sales in 2008 include Abbott, AstraZeneca, Eli Lilly, GSK, J&J, Merck, Novartis, Pfizer, Roche, Sanofi-Aventis Source: DataMonitor Pharmaceutical Licensing Overview 2010 10
    • ...And Values Had Tempered Average Deal Value Has Declined... ...But So Has the Number of Deals Average Deal Values Windhover-Only: ($ M) Total Bio-pharma Licensing Deals$400 549 547$350 523 479$300$250 370 340 313$200$150$100 $50 $0 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 2010E Source: Windhover, PharmaDeals; PharmaVentures analysis Note: As data was obtained from two different sources with different classification of deals, no meaningful results can be obtained by combining data from the two graphs, 2010 results extrapolated from H1, assuming H2 will experience the same deal volume 11
    • 2009 Biotech Acquisitions Deal Value Principal Month Acquirer Target (USD M) Focus January Pfizer Wyeth 68,000.0 Biopharmaceuticals March Roche Genentech 46,800.0 Biopharmaceuticals Dainippon Specialty September Sumitomo Pharma Sepracor 2,600.0 Pharmaceuticals July Bristol-Myers Squibb Medarex 2,400.0 Biopharmaceuticals Elan 18% Stake July Johnson & Johnson (Ireland) 1,385.0 Neurology Cougar May Johnson & Johnson Biotechnology 1,000.0 Oncology Ovation February Lundbeck Pharmaceuticals 900.0 Neurology Fovea October Sanofi-Aventis Pharmaceuticals 541.0 Ocular Diseases April Sanofi-Aventis PiPar Sciences 500.0 Oncology Crucell 18% Stake September Johnson & Johnson (Dutch) 444.0 Vaccines Hisamitsu Noven Specialty July Pharmaceutical Pharmaceuticals 428.0 Pharmaceuticals Cubist Calixa December Pharmaceuticals Therapeutics 402.5 AntibioticsSource: Burrill & Company 12
    • Interim Conclusions (from Morgan Stanley)•  In licensing accelerates innovation, de-risking the investment for the buyer•  NPV lost from higher pay-ways and milestones is offset by lower risk–adjusted invested capital•  The shift from internal R&D to licensing re-defines the core competencies of Branded Pharma to late stage development and commercialization 13
    • In-Licensing in Pfizer Established Products BusinessUnit•  Independent Business Unit with own P&L and unique entrepreneurial culture•  Forward-looking, focus on creating win-win collaborations•  Separate Business Development Team•  Strive for agility and quick decision making 14
    • Established Products – Our Vision To Become One of the World s Top Pharmaceutical Players in the Post-LOE Marketplace Our Mission: To provide patients and payers with medicines characterized by Pfizer s reputation for quality, safety and innovation Our Journey: We will dramatically change Pfizer s portfolio of Established Products from a significantly shrinking segment of our business to an engine of positive growth 15
    • Keys to Success Changes That Enable Growth: Profit Reinvestment, P&L Responsibility Entrepreneurial Culture: Targeted External Talent Added Fast, Flexible, Focused and Accountable Partners: Protalix, Strides, Aurobindo, Biocon Scope: Global – Developed Countries and Emerging Markets 16
    • The Expanded EPBU PortfolioA Mix of Brands and Generics 600+ Products 200+ In-licensed Molecules (glipizide) Extended Release Tablets30+ Wyeth Products Including:•  Effexor•  Protonix•  Tazocin Mix of Generics, Post-LOE and Patent-Protected Therapeutic Areas Include:•  Central Nervous System 3 of More Than 30 Wyeth Products•  Cardiovascular•  Sexual Health•  Anti-Infectives•  Pain and Inflammation 17
    • Our Wish List•  EPBU is actively seeking partnerships –  Post LOE opportunities: generics, reformulated / branded generics, biosimilars –  Medium size branded products –  Innovation via small companies –  Late stage development•  Key criteria –  Leverage our commercial capabilities –  Speed to market –  Cost efficient opportunities 18
    • EPBU Approach to Licensing•  Initiate a commercial assessment and ensure we can maximize opportunities for the markets•  Perform a cross-functional Due Diligence Process•  Our philosophy is to maintain Pfizer quality / supply reputation and ensure we can stand behind the products we license even when manufactured by third parties•  EPBU seeks to create win-wins via Pfizer s global capabilities, scale, and technologies 19
    • Creating Success Through EPBU Partnerships•  Pairing external technology and IP with our infrastructure, scale, supply chain, resources and processes•  Utilize our commercial expertise to maximize opportunities in the marketplace –  Branded and post-LOE phases•  Leverage agility and entrepreneurial spirit of small companies with Pfizer s comprehensive approach to innovation 20
    • Pfizer Aims to Be a Partner of Choice Who CreatesValue for Your Product or Technology Leverage Our Strengths & Capabilities Our Product Portfolio •  Reputation for Quality and Supply Reliability Pursue Product •  Strong Brand Recognition Enhancements and Reformulation •  Global Commercial Capabilities •  State-of-the-art Manufacturing processes and technologies Pursue Opportunities in •  Strong Alliance Management Niche Markets •  Success in Past Partnerships Intensify Late Stage Lifecycle Planning 21
    • Partnering Offers Value and Innovation Through Collaboration andConvergence of Technologies, Industries and Companies Roles…•  Successful partnering requires: –  Finding a strategic fit and integrating organizational cultures –  Creating an environment of collaboration by understanding what each partner needs to achieve –  Welcoming the opportunity to collaborate with multiple partners –  Establishing a strong Alliance Management program 22
    • Our Lessons Learned Three Keys to Partnering Include: Cultural Integration, an Environment of Collaboration, and Strong Alliance Management Collaborative Partnering Offers Increased Value and Innovation Engaging External Organizations and Third Parties Creates a Wide Range of Opportunities Innovation Remains a Top Strategic Focus for Growth 23