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Podd c no.1366 salles final oct 2011-1
1. Message Delivery to Merck:
Practical Guidance to Conveying the Value
in your Drug Delivery Technology
Partnership Opportunities in Drug Delivery Conference
October 4, 2011
Fernando Salles, Ph.D., CLPTM
Senior Director, Franchise Licensing Integrator Drug
Delivery, Neuroscience and Ophthalmology
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2. Forward-Looking Statement
This presentation contains "forward-looking statements" as that term is defined in the
Private Securities Litigation Reform Act of 1995. These statements are based on
management's current expectations and involve risks and uncertainties, which may cause
results to differ materially from those set forth in the statements. The forward-looking
statements may include statements regarding product development, product potential or
financial performance. No forward-looking statement can be guaranteed and actual results
may differ materially from those projected. Merck undertakes no obligation to publicly
update any forward-looking statement, whether as a result of new information, future
events, or otherwise. Forward-looking statements in this presentation should be evaluated
together with the many uncertainties that affect Merck's business, particularly those
mentioned in the risk factors and cautionary statements in Item 1A of Merck's Form 10-K
for the year ended Dec. 31, 2010, and in any risk factors or cautionary statements
contained in the Company's periodic reports on Form 10-Q or current reports on Form 8-K,
which the Company incorporates by reference.
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3. Key Company Facts for Today’s Merck
MERGER In 2009, Merck and Schering-Plough merged to become a
stronger, more dynamic healthcare leader. We are known as
Merck in the US and Canada and everywhere else as MSD.
HEADQUARTERS Whitehouse Station, New Jersey, U.S.A.
Pharmaceuticals, Vaccines, Biologics, Consumer Health Care
BUSINESSES
and Animal Health
2010 Revenue: $46 billion
FINANCIALS R&D Expense: $11 billion
GLOBAL Merck operates in more than 140 countries
OPERATIONS
EMPLOYEES Approximately 94,000
LICENSING In 2010, 46 significant licensing and partnership deals
were executed.
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4. Partnerships are Key to Our Success
Approximately 64% of Merck’s 2010 revenue*
is attributable to alliance products and patents
• COZAAR / HYZAAR
Licensed Products or Patents:
• FOSAMAX 64% of total sales
• GARDASIL
• REMICADE
• CLARINEX
• NEXIUM
• VARIVAX
• ZOSTAVAX
• ROTATEQ
* Includes 50% of full year JV revenue
(Sanofi-Pasteur MSD and Johnson&JohnsonoMerck)
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5. Positioned to Offer Customers a Portfolio of
Options in Key Therapeutic Areas
CV and
Diabetes
Infectious
Diseases
Respiratory/
Bone/
Imm/Derm
Women’s
Health
Neuro/
Ophthalmology
Oncology
Vaccines
Mature/
Diversified
Brands
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7. Pipeline as of
Feb 16, 2011
Merck Pipeline (cont.)
Combination Products in
Under Review Approvals4
Development
Asthma
Atherosclerosis Contraception
DULERA
ezetimibe + atorvastatin NOMAC/E2
(SCH 418131)
(MK-0653C) (SCH 900121) (EU) (US) 6/2010
Staph Infection Atrial Fibrillation
BRINAVESS
daptomycin for injection
(MK-6621)1
1
Exclusive rights outside (MK-3009)3 (EU) 9/2010
of the United States,
Canada and Mexico to Diabetes Bipolar Disorder
vernakalant (IV).
2
sitagliptin + extended release SYCREST
Lundbeck has exclusive metformin (SCH 900274)2
commercial rights in all
markets outside the US,
(MK-0431A XR) (US) (EU) 9/2010
China, and Japan. Diabetes
3
Japanese rights only. sitagliptin + simvastatin
4 Approvals obtained (MK-0431D) = Licensed Product or
within the last 12 months.
Patent 7
Hepatitis C
boceprevir
(SCH 503034)
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8. Merck has risen to be the best perceived company
when weighted across all scores
% of respondents agreeing that each core company exhibits the average criteria1
• 20061 • 20081 • 20101
• 1 • 1 Merck 69
• 2 • 2 • 2
• 3 Merck 60 • 3
• 4 • 4 • 4
• 5 • 5
Merck 51 • 5
• 6
• 7 • 6
• 7
• 8 • 7
• 8
Median 48 Median 46 Median 58
• 9 • 9 • 8
• 10 • 10 • 9
• 11 • 11 • 10
• 12 • 12 • 11
• 13 • 13
• 12
• 14 • 14
• 15 • 13
• 15
• 16 • 14
• 16
0 20 40 60 80 0 20 40 60 80
0 20 40 60 80
Note: Core sample declined from 16 companies to 14 due to mergers of Wyeth
and Genentech
• Proportion agreeing (%)
1. Calculated weighing each of the evaluated characteristics equally
Source: BCG surveys
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9. Overview of Merck’s licensing process
Connecting Understanding Working
with You Your Science Doing the Deal Together
• Worldwide scouts build • Initial nonconfidential • Term sheet • Alliance Management
relationships and seek review by Review negotiations conducted
– Alliance managers assigned
out opportunities and Licensing by Transaction Manager
Committees – Alliance launched
• Nonconfidential • Due diligence – Monitor progress
information submitted for • Confidentiality throughout the agreement
• Definitive agreements
review disclosure agreement
negotiated • Basic Research Collaboration
signed
• Agreements executed Implementation
• Confidential review
– Senior scientists dedicated
• Face-to-face scientific to successful execution of
meetings the research collaboration
• Commercial
assessment
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10. Regional Contacts
Yael Steven Robert Manfred Eric Swami Kuchan Jun
Weiss, MD, PhD Xanthoudakis, PhD Pinnock, BSc, PhD Horst, MD, PhD, MBA Lund, PhD Subramaniam, MD, PhD Kimm, MD, PhD Suzuki, DVM, PhD
Northwest United States Canada and United Kingdom, France Scandinavia, Austria, India, Philippines, Korea Japan
Portions of Upper Ireland, Portugal, and Germany Eastern Europe, and Vietnam, and Indonesia
Midwest United States and Spain The Balkans
Greg
Wiederrecht, PhD, CLP
Vice President and Head,
External Scientific Affairs
James Susan Sanjeev Reid J. Jeroen Margaret Phil Jing-Shan Koichi
Schaeffer, PhD Rohrer, PhD Munshi, PhD, Leonard, PhD Tonnaer, PhD Beer, MSc, PhD Kearney, PhD, MBA (Jennifer) Hu, PhD Kato, PhD
Southwest Mid-Atlantic, MBA New England and Benelux, Russia, United Kingdom, Australia, China, Hong Kong, Japan
United States Southeast, Southeastern Latin America Israel, and Italy, and New Zealand, and Taiwan
and Midwest United States South Africa Switzerland Malaysia, and
United States Singapore
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11. New & Expanded
Areas of Interest for Partnering
• MSD publishes our Areas of
Interest twice each year.
• For each of our therapeutic
areas, we list the Mechanism
of Actions that we are interested
in and those that we are not.
• Late-stage clinical compounds
(phase 3-ready & beyond) are of
interest in any therapeutic area.
• Visit us at:
www.merck.com/licensing
to learn more!
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12. We Constantly Scan for Partnering Opportunities
46 Key Acquisitions & Alliances Signed
476 Confidentiality-In agreements
1058 Opportunities reviewed at RLC
7800 Opportunities Received
2010
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13. Practical advice on pitching to Big Pharma I
• Recall that Merck reviews ~8000 opportunities a year
– (or 40 opportunities every working day!)
• Recall that there are many players that may be involved
• Recall that the business is complex
Therefore:
• Direct pitch
– Be cogent – one more slide will not sell the technology if the last 50 have not
– Present at least what is requested
– Pharma typically tells you what they are interested in
– Be real, we will have to do diligence
• Do some of the leg work for your potential client
– Address some of the potential issues upfront.
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14. New Drug Delivery Technology Considerations
• Technology differentiation
• Sustainable competitive advantage
• Cost of goods
• Manufacturing process / equipment
• Packaging formats and materials
• Manufacturing experience / capability of supplier
• Development timeline
• Intellectual Property
The cost, time, resources and additional innovation needed
to successfully develop and launch a new drug
delivery technology is (almost) always underestimated!
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15. Practical advice on pitching to Big Pharma II
• Partnering meetings:
– Short - email pitch not elevator pitch (or business plan)
– Describe your request with some details
Real requests from potential partners:
• “I'd welcome the chacne (sic) to meet and update you on progress with X's
delivery platform.”
• “We met at Bio and mentioned that a next step could be you meet with our
lead scientist for our program who will be at this meeting in XXX.”
• “We would love to introduce the companies that we represent, that may be of
interest. Looking forward to meeting you in XXX!”
• Respect yourself!
– Do not pitch something that you do not believe.
• We remember YOU not the company.
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