This document provides advice to small and medium pharma-biotech companies on partnering with large pharmaceutical companies ("BigPharma"). It notes that BigPharma are losing revenue as blockbuster drugs go off patent, creating opportunities for partnering. However, only 15% of small company proposals are reviewed. The document recommends understanding BigPharma therapeutic interests and deal stages, positioning IP accordingly. Companies should understand each BigPharma partner's needs and consider different deal structures. Raising their profile through marketing, conferences, and consultants can help small companies get noticed. The overall goal is for small companies to effectively engage BigPharma around innovative assets that meet strategic priorities.

1. What does a small/medium pharma-biotech need to do to get on BigPharma’s radar?Mark McBride Managing Director, Innovaro Pharmalicensing Science City York, April 2011

2. Key Global IssueBigPharma 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

3. Key Global Issue – Example 1World’s two biggest selling drugs both off-patent by end of 2012Lipitor: $13b annual salesPlavix: $6b annual salesIn total, more than $90b of annual “blockbuster” sales as of January 2008 will be off-patent by the end of 2012Consequence: massive cuts are demanded, hitting R&D Groups.

4. Key Global Issue – Example 22010: AstraZeneca & GlaxoSmithKline announce:combined 27,000 job cuts (nearly 20% of workforce), largely from R&Dplant closuresreduction in areas of therapeutic focusfuture pipeline development driven by external acquisition/partnering of IP (opportunity)

5. OpportunityAs BigPharma embraces Open Innovation it puts aside its traditional “only-invented-here” attitude. Small/medium pharma-biotechs have opportunity to put themselves in front of BigPharma and highlight innovative IP.

6. ProblemHow to get on to the radar when less than 15% of interactions with BigPharma are even reviewed?Focus: this workshop will discuss how to manage your visibility and ensure you have the best opportunity to partner successfully

7. Structure of WorkshopUnderstand where your IP fits into the global marketplaceUnderstand what drives your partnerUnderstand what partnership is correctWhat to do next

8. Global Market – Therapeutic AreasSource: Pullan Consulting

9. Global Market - Molecules

10. Global Market – Deal StagesBiotech Alliances with Big PharmaAlliances from 2005 – 20102,114 deals announcedStage at Deal SigningDiscovery 901Lead Molecule 77Preclinical 256Phase I 155Phase II 179Phase III 219Approved 357Source: Deloitte Recap LLC

11. Global Market – Deal StagesBiotech Alliances with Big Pharma

12. Deal Stages (2005-9 v 2010)

13. Global Market & your IPWhere does your IP fit into the Global Marketplace?Is your IP potential strong when compared to BigPharma’s key areas of interest?As BigPharma is risk averse then position your proposal to best match their needs, otherwise….

14. Is BigPharma correct for you?If your IP does not match BigPharma’s needs, or your partner is looking to In-License only at PIIb+ then consider Specialty Pharma insteadReactiveCommittedConsequenceProportional

15. Understand your PartnerShareholder needs (public/private) – are they risk averse?What in your USPs will excite them?Look at their pipelinesTalk to their scouts as soon as possibleBring them solutions, not just pure science

16. 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 BigPharma in early (but not necessarily committed)correct data generated

17. Action Items - 1Have a Coherent Plan from Day 1:ManagementTeamUnderstand your own IP & USPsWhat sort of Partner will be best for you?Understand prospective partner’s needs, and best deal structureData Package (budget for this from start)Inject business reality & educate shareholder expectations

18. Action Items - 2Raise your profile:Build a story (benefits as well as science)Engage a good PR CompanyTalk to the ScoutsEngage Opinion LeadersEngage Innovaro Pharmalicensing

19. Innovaro PharmalicensingPartnering Solutions for the LifeSciencesInnovaro Pharmalicensing is a leading resource for partnering, licensing and business development across the lifescience and biopharmaceutical industriesThrough a unique offering combining Partnering Search and on-line Profiling services, the international biopharmaceutical, lifescience & healthcare industries utilise Innovaro Pharmalicensing to identify and engage with prospective licensing, marketing and discovery/ development partners around the world.