© 2010 Innovaro, Inc. 1

What does a small/medium pharma-biotech need to do to get on BigPharma’s radar?

Mark McBride Managing Director, Innovaro

Pharmalicensing OneMedForum, New York, June 2010

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Key Global Issue

BigPharma 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

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Key Global Issue – Example 1

World’s two biggest selling drugs both off-patent by end of 2012

Lipitor: $13b annual sales

Plavix: $6b annual sales

In total, more than $90b of annual “blockbuster” sales as of January 2008 will be off-patent by the end of 2012

Consequence: massive cuts are demanded, hitting R&D Groups.

4© 2010 Innovaro, Inc.

Key Global Issue – Example 2

January 2010.

AstraZeneca & GlaxoSmithKline announce:

combined 27,000 job cuts (nearly 20% of workforce), largely from R&D

plant closures

reduction in areas of therapeutic focus

future pipeline development driven by external acquisition/partnering of IP (opportunity)

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Opportunity

As 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.

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ProblemHow to get on to the radar when less than 15% of opportunities sent to BigPharma are even reviewed?

Focus: this workshop will discuss how to manage your visibility and ensure you have the best opportunity to partner successfully

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Structure of Workshop

Understand where your IP fits into the global marketplace

Understand what drives your partner

Understand what partnership is correct

What to do next

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Global Market – Therapeutic Areas

alimentary/ metabolic

infection

cancer

parasitic

blood/clottingCVdermgenitourinary

hormonal

immunological

musculoskeletal

neurology

respiratorysensory

715 Drugs in Phase III or Pre-Registration (1 drug can be in more than 1 Area)

Source: Pullan Consulting

9© 2010 Innovaro, Inc.

Global Market - Molecules

synthetic chemical

76%

protein5%

peptide2%

antibody6%

cells and virus particles

3%

natural products6%

nucleic acid2%

Source: Pullan Consulting

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Global Market – Deal StagesBiotech Alliances with Big Pharma

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Global Market & your IP

Where 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….

12© 2010 Innovaro, Inc.

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 instead

Reactive

Committed

Consequence

Proportional

13© 2010 Innovaro, Inc.

Understand your Partner

Shareholder needs (public/private) – are they risk averse?

What in your USPs will excite them?

Look at their pipelines

Talk to their scouts as soon as possible

Bring them solutions, not just pure science

14© 2010 Innovaro, Inc.

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

15© 2010 Innovaro, Inc.

Action Items - 1

Have a Coherent Plan from Day 1:

Management Team

Understand your own IP & USPs

What sort of Partner will be best for you?

Understand prospective partner’s needs, and best deal structure

Data Package (budget for this from start)

Inject business reality & educate shareholder expectations

16© 2010 Innovaro, Inc.

Action Items - 2

Raise your profile:

Build a story (benefits as well as science)

Engage a good PR Company

Talk to the Scouts

Engage Opinion Leaders

Engage Innovaro Pharmalicensing

17© 2010 Innovaro, Inc.

Innovaro Pharmalicensing

Partnering Solutions for the LifeSciences

Innovaro Pharmalicensing is a leading resource for partnering, licensing and business development across the lifescience and biopharmaceutical industries

Through 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.