PharmaTelevision - 2. Out-licensing by big pharma: Pfizer, Roche and CoNCERT Pharmaceuticals discuss this hot topic (Part 2)

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Video title: 2. Out-licensing by big pharma: Pfizer, Roche and CoNCERT Pharmaceuticals discuss this hot topic (Part 2)

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What are the new out-licensing practices of large pharma? How can biotechs capitalise on these? Having the right business models and practices that match the new opportunities is key to success. The leading companies of our industry are acutely aware of this need and have implemented new ways of finding partners, doing deals and accelerate strategies. Dr Tibor Papp, Head of Advisory & Transactions of PharmaVentures asked a panel of leading executives what business development strategies and models they use to position themselves for competitive success. David Rosen from Pfizer, Robert Silverman from Roche and Jonathan Montagu from CoNCERT Pharmaceuticals offer their detailed company and personal insight into their business development models.

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Opportunities in new proactive era of licensing and collaborative deals.

Tibor Papp:

In relation to just reflecting on what you said David and Bob and that's raised to biotech companies there with substantial skills and capacities as well you've mentioned that obviously you are considering or processing the number of products and there are various reasons for those and we all know that in previous years large pharma has kept these products close to their chest and now through this realization and willingness to open up your portfolio that is less needed possibly or less in your core do you think there is possible there is a new era coming and then new explosion of licensing deals or collaborative deals in which all of these products are finding new homes in companies such as Concert Pharmaceuticals or others that mature their skills and capabilities that are willing to collaborate with you and then with an explosion of deals and as more and more large pharma companies are willing to market actively their products. And the great example of course is Pfizer which probably has been the first to well openly come out to say we have a 100 products to out license come to us and talk to us. And just two, three-years ago some of the large pharma companies didn't do at all proactive marketing in these sense of product. So what do you think that there " is there gonna be an opportunity for that? Is it going to be a major process in large pharmaceutical companies or it's going to be orders on the side as something not core that you do because you can, because it's available, but otherwise it will not really generate substantial value for you?

David Rosen:

Well I think in the case of Pfizer I think in the case of Pfizer it will generate substantial value for us. The question is how much of that value comes early and how much of it comes late and Bob I think you can probably comment on that as well. And I think the type of structure that you develop as you put these assets out is going to determine how much of that value comes early and how much of it comes late you know so for example if you look at a very traditional type of out licensing deal in order to create a Newco or an asset going into a venture backed biotech type of company the value there is gonna come late, we all understand if it comes at all it's gonna come late. And I would perhaps compare that to something on the other side of the spectrum which would be to create a specialty pharma company and I think something that a Roche could do, something that a Pfizer could do you know other very large companies is to take a pool of commercial assets that are not strategic to company any longer and rather than just divesting up those molecules by themselves you know take those molecules align by therapeutic area or disease area and combine those with clinical development assets use the revenue from the commercial products to help feed the clinical development pipeline and then use that as a way to create value a great deal more quickly then through a process whereby you just kind of a wait and hold that the that one or more of those clinical development assets will turn into a product. In terms of how you know how does that translate into where we be doing more deals you know will the deals become more creative I guess my sense is that there might be a little bit more creativity to it but you know to a large extent we'll try and keep this as simple as we can and although the creative creativity may come in terms of how you combine the assets in terms of ways that we can get paid back, we really can only get paid back a few different ways and for these companies that are investing in the assets you know there is only so much money that they can put up front and the rest of that money is still going into the " into the development of a portfolio. I think may be the last point I will turn it to Bob, is that the market is really changed it's really evolved over the last six to nine months you know to a point where at least in my opinion there are kind of the haves and have not's in the capital world. And one of the things it's seems to me has happened over the last six to nine months is that it's gotten easier to raise the billion dollars then it has to raise 20 or $30 million. And so our thinking has evolved with that the point that we no longer think about may be one or two assets coming out into a Newco, but think about a way that may be we would move 10 or 15 or 20 assets into a Newco along with the substantial number of commercial products because there is somebody out there who is willing to write that cheque for a billion dollars where as that risk that the one or two clinical development assets is going turn into a product you know it's pretty significant and so that 20 or $30 million may get flushed, the billion won't get flushed we just don't know which are the clinical development assets other ones that are gonna turn into the product.

Tibor Papp:

Thanks.

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Jonathan Montagu

Director of Business Development Concert Pharmaceuticals

Dr. David Rosen is currently the head of out licensing at Pfizer Inc. In his role, Dr. Rosen is responsible for the externalization and partnering of non-progressing research and development programs that are no longer strategic to Pfizer. He joined Pfizer in 2003 as the head of Strategic Alliances in St. Louis, Missouri and during his 15 year career in business development has had increasing levels of responsibility in both large pharma and the biotechnology industry. He recently completed the divestiture of Pfizer's research assets in Nagoya, Japan resulting in the creation of a new life sciences company. Prior to joining the pharmaceutical industry, Dr. Rosen was a practicing veterinarian and practice owner. Dr. Rosen received a Bachelors degree in Bacteriology from the University of Wisconsin in Madison and a Doctor of Veterinary Medicine Degree from Iowa State University. He received a specialty Board Certification in feline medicine in 1998. Robert Silverman is currently the Global licensing Director at Pharma Partnering RocheJonathan Montagu is presently Director of Business Development at Concert Pharmaceuticals. His previous roles include New Product Development Manager at Ortho-McNeil Pharmaceuticals and Business Development Intern at Biogen Idec.

Pfizer

Good health is vital to all of us, and finding sustainable solutions to the most pressing health care challenges of our world cannot wait. That's why we at Pfizer are committed to applying science and our global resources to improve health and well-being at every stage of life. We strive to provide access to safe, effective and affordable medicines and related health care services to the people who need them. We have a leading portfolio of products and medicines that support wellness and prevention, as well as treatment and cures for diseases across a broad range of therapeutic areas; and we have an industry-leading pipeline of promising new products that have the potential to challenge some of the most feared diseases of our time, like Alzheimer's disease and cancer. To ensure we can continue to deliver on our commitments to the patients, customers and shareholders who rely on us, we are focused on improving the way we do business; on operating with transparency in everything we do; and on listening to the views of all of the people involved in health care decisions. Through working in partnership with everyone from patients to health care providers and managed care organizations to world governments and non-governmental organizations, our goal is to ensure that people everywhere have access to innovative treatments and quality health care. RocheRoche plays a pioneering role in healthcare. As an innovator of products and services for the early detection, prevention, diagnosis and treatment of diseases, we contribute on a broad range of fronts to improving people's health and quality of life. Roche is providing the first products that are tailored to the needs of specific patient groups. Our mission today and tomorrow is to create added value in healthcare by focusing on our expertise in diagnostics and pharmaceuticals. Responsibility at Roche we are committed to meeting high ethical standards and complying with all applicable local, national and international laws wherever we do business. Our ethical standards are embodied in our Corporate Principles. For more than 110 years Roche has played a pioneering role in healthcare. Concert Pharmaceuticals Founded in April 2006, Concert Pharmaceuticals is a clinical stage biotechnology company dedicated to creating new medicines through a novel scientific approach utilizing the naturally-occurring element deuterium. Concert applies its innovative precision deuterium chemistry platform to modify specific properties of validated drug molecules, yielding a rich pipeline of new chemical entities (NCEs). Concert leverages decades of pharmaceutical experience to create novel drug candidates with potential for best-in-class efficacy and safety, while greatly reducing R&D risk, time and expense. The Company has over 100 patent applications for new drug candidates addressing a broad range of therapeutic areas, including HIV/AIDS and renal disease, among others. In 2009, Concert's first patents were granted by the USPTO. In June 2009, Concert announced a strategic partnership with GlaxoSmithKline to develop and commercialize deuterium-containing drugs, including CTP-518, a protease inhibitor for the treatment of HIV. CTP-518 is currently in Phase 1 testing. Concert is a rapidly growing company based in Lexington, Massachusetts. The Company is led by an experienced management team and Board of Directors, and is supported by top-tier venture capitalists and leading institutional investors. Concert has raised $110 million since its inception. Concert was co-founded by Richard Aldrich, Roger Tung and Christoph Westphal