Use of open innovation to complement internal R&D function for bandwidth, increased efficiency and risk management with the goal of maintaining leadership in product and technology. Case studies in a life science company.
Become a Medicines Discovery Catapult Partner - Nottingham
Open Innovation Strategy in Sigma Life Sciences_NCET2 Webinar Oct 09
1. Strategy for Open Innovation in
Sigma Life Science
• Rebecca Poon, PhD, MBA
• Business Development Manager
• NCET2 Webinar
• Making the Most of U-I Collaborations
• 314-286-7859
• rebecca.poon@sial.com
2. The Strength of Sigma-Aldrich
• Leading supplier in the life science research
market
• Known for quality, reliability, consistency
• World-leading customer & technical service
• Manufacture over 46,000 products
• 1,000,000 customers
• 7,900 employees
• 2008 Sales: $2.2B
• 34 years of continuous growth (Sales & EPS)
3. Sigma-Aldrich Portfolio
Large Broad
Product Breadth Customer Base
Products – 130,000 Customers – 88,000 accounts
Number of products
8%
30,000
35%
26%
31%
Chemicals 100,000 Pharmaceutical, Diagnostics, Biotechnology Companies
Equipment items (46,000 Chemical & Allied Industrial Companies
manufactured) Universities, Government, Not-for-Profit Organizations
Hospitals & Commercial Laboratories
4. World Class Distribution & Logistics
• Sell into 160 countries from locations in 38 countries
• 38 production sites in 10 countries
• Over 15,000 orders received & shipped daily
• Global distribution network
Service is key
6. Creating Differentiation Through
Innovation: 2009 - 2011
• Accelerate
• Build on Successes
• Focus on Research Biotech
• Expand in Faster Growing Geographies
• Elevate
• Enable Web Strategies: Your Favorite Gene (2009 CIO 100 winner)
• Refine Selection & Integration of New Technologies
• Innovate
• New Ventures Group
• SAGE™ Lab
7. Business Units and Revenues
($421M)
19%
38%
($824M)
28%
($624M)
15%
($332M)
Research Specialities Researach Biotech SAFC Research Essentials
Research Biotech
Customers: Life Scientists
Driving Force: Innovation
8. Sigma Life Science Vision
To be a leading destination for life science researchers
to access biologically rich information, market leading
products and services to help answer their biological
questions
Lead with Breakthrough Products Supported by Rich Biological Information
9. Sigma Life Science’s Practice in
Open Innovation
• Patent Licenses, Option licenses, Cross-Licenses (Many)
• Research Collaborations:
• Odyssey Program: UVA, NIH, U Chicago, Wash U
• Others: Mayo clinic, UNC, UCSD, Fred Hutchinson, U Pittsburgh, UCSF, Columbia
• Joint Grant Application (Boston U, Framingham Heart Study, SABre-CVD)
• Co-development Agreements
• Equity Investment
• M&A for Capabilities and Capacity
• Alliance with Venture Firms (Prolog Ventures)
• Outreach to Consortia (e.g. Protein Quantitation Consortium, Biomarkers, Nanotechnology)
• Consultancy / Scientific Advisory Boards (e.g. Stem Cell, Regulatory ncRNA)
• University Technology Subscription Program (WARF)
10. Business Development
Statistics & Philosophy
• Active Licenses: 490
• Oldest Dated: 1983
• No of New Licenses (2007): 28
• Total License Related Payments (2008): $12.13 M
• Product Royalties (2008): $3.4M
Equitable risk sharing:
• Reward on performance
• Milestone payments linked to realized technical and market performance
• Royalties based on sales revenue, fixed or tiered
Flexibility to meet partners’ different interests:
• Options
• Carve-outs of IP rights, freedom–to-operate, markets / fields of application
11. Case Study 1
TRC -- The Broad Institute
• 11 world-renowned academic and
international life sciences companies
• Exclusive license & partnership in
functional validation
• shRNA library: TRCII – 300,000
clones
• Lentivirus particles
• Plasmids
• Bacterial glycerol stock
12. Case Study 2
Human Proteome Resource (HPR)
• Royal Institute of Technology (KTH),
Stockholm, The Rudbeck Laboratory, and
Uppsala University, Sweden
• Goal: min. one antibody tool to each of
22,000 unique human proteins by 2015
• Exclusive license with Atlas Antibodies
• Added over 6,000 antibodies
• Most highly characterized, monospecific
• Supported by IHC image data (on tissue
microarrays) in Human Protein Atlas (HPA)
13. Case Study 3
Sangamo Biosciences, Inc.
• Large portfolio of enabling technologies
aggregated from many institutions
• Zinc Finger Nuclease License 2007
• CompoZr™ (www.compozrzfn.com/)
• Milestone reached 1 year early (Jan 09)
• SAGE™ Lab: 12 members, new facility (Aug 21,
09)
• SAGEspeed™ (www.sageresearchmodels.com)
• Michael J Fox Foundation Award Parkinson
Disease Models (Oct 1, 09)
14. Continuing Outreach Activities
• Campus visits to Office of Technology Licensing
• Sigma Partnering Event (hosted by a local organization)
• Sigma Inventor’s Forum (Webinar)
• Networking through UIDP (University-Industry Demonstration Partnership)
• Participation in AUTM, LES, BIO conferences
• Response to RFPs and fedbizopps.gov
15. Strategic Areas in Technology
Scouting
Technology Areas Research Areas
• Biomolecules • Stem Cell Biology
• Functional Genomics • Epigenetics
• Cell Based Assays • Regenerative Medicine
• Protein Assays • Oncology
• Transgenics • Neuroscience
• Cell Signaling
• Inflammation
Continuously Expand Technology Portfolio
to further basic research and the understanding of biology
16. •Rebecca Poon, PhD, MBA
•Business Development Manager
•314-286-7859
•rebecca.poon@sial.com