Roche:Genentech Integration Latest: Exclusive interview on PharmaTelevision




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Video title: Roche:Genentech Integration Latest: Exclusive interview on PharmaTelevision
Released on: June 04, 2009. © PharmaVentures Ltd
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PharmaTelevision announced today that it is to broadcast an exclusive interview with Dan Zabrowski, Global Head, Pharma Partnering, Roche Pharmaceuticals Division and Joe McCracken, Vice President, Business Development, Genentech, on the Roche:Genentech integration, on June 4th 2009.

The interview on the business TV show "PharmaVentures Business Review" reveals the new structure and position for Genentech in the Roche organisation and how companies wishing to partner with Roche or Genentech can do so in the future. The interview also discusses broader issues such as the future position of Genentech and its role moving forwards.

Dr Fintan Walton, CEO of PharmaVentures, who also presents the PharmaTelevision shows and interviewed both Zabrowski and McCracken, said: "This exclusive interview provides insight into the operations of one of the world's largest pharmaceutical companies. We are delighted that Roche used PharmaTelevision to communicate its integration strategy and how its implementation is progressing".
The Process of integration and the strategy of implementation.
Fintan Walton:
Hello and welcome we are here at bio 2009 at the annual convention here in Atlanta. We are here to record a series of programs with leading pharmaceutical and biotechnology companies to talk about the both their vision and what they are doing to build their organizations in tough economic times. Hello and welcome to PharmaVentures business review here at Bio in Atlanta. On this show I have Dan Zabrowski who is the head of pharma partnering at Roche and with him Joe McCrackenwho is vice president of business development at Genentech welcome to the show both of you.
Dan Zabrowski:
Thank you for having us.
Joseph McCracken:
Thank you for having us .
Fintan Walton:
The reason why both of you are sitting here talking to me as two, would have been two separate entities today you are all part of one organization and I want to talk about that organization that new Roche which integrates the Genentech [PharmaDeals ID = 30853] side and I want us to talk about that but also want to get to the some of the important component parts which is how partnering is going to be done in the future and how that relates to basically how drugs are going to be bought into the new organization. So Danif I could start with you Rocheobviously was a majority share holder in Genentech in the past and now it 's a 100% owned part of Rocheand the integration has started and could you tell us a little bit about how in general that integration is taking place what sort of picture can we see for Rocheand Genentech as we go forward particularly here in the United States?
Dan Zabrowski:
Well the integration actually is going at full speed. We have an integration steering committee made up of members of Rocheand Genentech who meet on a weekly basis to address our questions and proposals that are presented by each of the work streams. I would say our planning is on track to be completed by the middle of the year and then at that point I think Severin Schwan will come out and communicate the results of that plan and what the expectations are for the new company going forward.
The new structure and position for Genentech in the Roche organisation
Fintan Walton:
Right so Joe you obviously been involved with Genentech and part of that integration process but may be you could describe to us how Genentech is going to appear in the future in relation to the Roche holding company?
Joseph McCracken:
Okay so at a very general or a high level what 's going to happen is the current people at Genentech who have been engaged in research, basic research , drug discovery and early development activities will be will be put into a group that we call Genentech research and early development and maybe we will have to come up with a better name for right now it is Genentech research and early development and these people will be responsible for discovering and developing novel therapeutic agents through demonstration of proof of concept usually around completion of phase II clinical trials and that group which will be headed by Richard Scheller who was formerly the head of research at Genentech will actually report to Severin Schwan who is the CEO of Roche Holdings group so that 's actually or separate from the Roche pharma group in the same way that the Roche diagnostics group is also separate group and then all three of these report up to Severin Schwan. There will be a couple of other changes that will be made, our manufacturing group that was in south San Francisco will be integrated into a global manufacturing group, will have a global development and commercial organization and then in the united states the Roche commercial organization in the united states will be moving to south san Francisco and integrated with the Genentech group and they will operate under the Genentechbrand name the single Genentechbrand name in the United States.
Fintan Walton:
And this is obviously important because Genentech has a very strong name in early stage discovery and early development so it 's important to protect that in a sense and I presume that 's one of the reasons why that 's one of the reasons why it 's been done that way.
Joseph McCracken:
I think that 's probably right.
Dan Zabrowski:
Yes absolutely.
Fintan Walton:
Okay so what happens then Danfrom a Roche prospective? It seems now like the name Genentech is going to be used across the board within the United States and the Roche name is going to be less used is that correct? Is that a correct assumption?
Dan Zabrowski:
Well in the way that Joe described the setup is a accurate you know when regards to the commercial branding it will be the Genentech name and from our and from a research perspective will actually have a Genentech in the way that Joe described the organization and will also have Roche research as well and that 's an that 's important for us because one of the cornerstones of why we did the deal was to really allow our research organizations to have a diversity of approach but at the same time collaborate and under the previous arms length relationship that existed out of the respect for the minority shareholders we really couldn't that as easily as we can now. So in the united states we will have excuse me in united states will have a Roche research organization that will be based in Nutley and there will be actually some people in our virologygroup that will be based in south san Francisco over a time, in addition to that our Roche pharma partnering organization will still maintain a Roche presence in the united states both in Nutley as well as a small group in California.
Partnering structure of Roche.
Fintan Walton:
Okay. So we will come into that just to remind ourselves of how Roche partnering works because it's you 've got a specific way in which you 've structured your existing operations from the past could you just describe those again for our audience Dan?
Dan Zabrowski:
Sure we are actually we are a globally group. We operate out of all the major, major continents say Europe, North America and Asia. We have responsibility for product and technology in licensing as well as commercial divestments. So for us you know we will continue to do business as usual. It did change where from the past in light of now the new relationship that we have with Genentechis we are going to work very closely with Joe 's organization so that we can avoid competing for deals.
Fintan Walton:
Okay, well just before we talk about that the way if I can understand the Roche partnering organization you have specific therapeutic areas that you are you are fulfilling you are pursuing and within, within the organization you got heads that are responsible for those particular areas say for an example like CNS and so that structure still exists? That will not change?
Dan Zabrowski:
We have first of all our business process is intact and we use four verbs to describe our business process went find get and manage and we will continue to do that. I am in addition in addition we did reorganize our R&D organization in Roche two years ago into a disease biology area model and our pharma partnering organization is also structured in a similar way so that we have dedicated groups of people who look after specific disease areas or technology.
Partnerings of Genentech and it's role in innovation.
Fintan Walton:
Okay right and then it comes to how things are then related to you Joe and back at Genentech so how do you see your partnering activity going forward?
Joseph McCracken:
So it's very similar. I am gonna continue to lead my group I will report to Richard Scheller and our we will do want find get and manage so will have just like the Roche pharma partnering group we'll have a partnering group within Genentechbut we will serve the Genentechresearch and development organization and both in licensing out licensing but limited to those internal customers.
Fintan Walton:
So Joe from your perspective or from Genentech's perspective does that mean that Genentech is going to be key innovation now for the whole of the Rochegroup?
Joseph McCracken:
Well I think Genentech is gonna continue to be an innovative organization developing novel therapies but I think we also have great respect for our colleagues at Roche who we have known for a long time and who also have had demonstrated their ability to develop new therapies and treatments and bring innovation to patients who need who need their help.
Fintan Walton:
So Danthen based on what Joehas just said you mentioned that earlier how important was if you didn't step on each other 's toes you didn't compete so how is Roche going to make sure that that doesn't happen
Dan Zabrowski:
Well actually we have we have a work stream of people from the Roche pharma partnering organization and Joe 's organization working together in an area called the developing the collaboration model and for us we really are using a framework of three C 's as we think about our collaboration and importantly to avoid a fourth C which is don't compete for deals and those three C 's are first of all communicate so we wanna make sure that we have full transparency to our in our ability to be able to do that under our CDA 's so that we know which each group is doing. We then at that point can decide whether we want to coordinate so we may wanna actually work together as we learn more about the opportunity and ultimately if we both are very excited about it we may decide to collaborate and we will then avoid the competition the fourth C.
Fintan Walton:
Okay so Joe coming back to Genentech in the past Genentech has made some acquisitions to bring in technologies where appropriate does that is that within the remet of Genentech now Genentech have that freedom to go and do acquisitions if they need to?
Joseph McCracken:
Absolutely we have the ability to license or acquire collaborate with other companies entirely independently and to make our own decision so will still be business as usual in terms of looking to external partners for technologies and products that can make a difference in patients lives.
Future plans of Roche and Genentech.
Fintan Walton:
Okay and coming back to you to you DanI mean looking now at Roche with it's integrated 100 % of Genentech in it 's into the family of the Roche family where does that leave Roche in relation to how it 's going to go forward in the future? I mean this would this is a new Rocheis it a new culture? Is it a new a new energy now with in Roche as a result of this? or is it the same Roche as it was say five years ago?
Dan Zabrowski:
Well one of the one of the delightful things that we 've encountered through the integration process is actually the Roche and Genentech cultures are very similar. We both put patients at the forefront of everything we do. We let science drive our decision making and we 've we have also seen this in our with our pharma partnering and business development interactions as well. You know we have had you know a really good start in our in our integration process so far and I think in large part people are excited to work with one another and be able to do that in a free way recognizing that we really view things in a very similar way. You know when I look at Joe 's organization and I see you know the great results that his organization receives from various surveys you know what I recognize is that I think we have two world class organizations that have been successful and we are very committed to learn from each other to actually make each of us better.
Fintan Walton:
And the mood within the Genentech camp?
Joseph McCracken:
I think we are really excited about the future. Nothing is changing in terms of research or early discovery that group is operating the same way with the same people with our you know independent decision making that where the only difference is we will collaborate with Roche instead of competing for deals. We'll if we are successful at Genentech's research and development organization in demonstrating proof of concept for novel therapies then they will go into a global development organization. Genentech was just beginning to be able to conduct clinical trials globally Roche has been doing it for probably a hundred years and then similarly when those products are even approved then they will go into a Roche global Marketing organization and so will be able to leverage all other strengths of the Roche global late stage development and commercial organizations and also all of their capabilities of Roche diagnostics, a real leader in diagnostics and that's critical to our strategy in developing pharmaceuticals which is to be able to identify the patients that are likely to respond or will not respond to our drugs.
Fintan Walton:
Okay well thank you very much Dan Zabrowski and Joe McCracken for coming on the show.
Dan Zabrowski:
Thanks.
Joseph McCracken:
Thank you so much. Thanks.
Joseph McCracken
Vice President, Business Development, Genentech
Dr Dan Zabrowski is a member of the Roche Pharma Executive Committee and has been Global Head of Pharma Partnering since July 2007, based at Roche 's headquarters in Basel, Switzerland. Since joining Rochein 1993, he has held a number of leadership roles including Global Head of Pharma Development Operations and Global Head of Pharma Development Regulatory. Prior to that he was Executive Director, Drug Regulatory Affairs at Syntex, which was integrated into the Roche Group in 1994. Dan was awarded his PhD in organic chemistry from Indiana University, USA, having gained his first degree in chemistry from St Louis University, USA. Dr Joseph McCracken was appointed as Vice President, Business Development at Genentech in August 2000. Before that, he served as Vice President of Technology Licensing and Alliances at Aventis Pharmaceuticals in Bridgewater, New Jersey. Previously, he worked as Vice President, Worldwide Business and Technology Development, at Rh�ne-Poulenc Rorer. Josephalso worked at Genentech earlier in his career, when he served in many capacities, culminating in the position of Representative Director, Genentech Limited Tokyo. He holds a Bachelor of Science degree in Microbiology, a Master of Science in Pharmacology and a Doctorate of Veterinary Medicine from Ohio State University.
Roche
Roche As a research-focused healthcare company, Roche discovers, develops and provides innovative diagnostic and therapeutic products and services that deliver significant benefits to patients and healthcare professionals � from early detection and prevention of diseases to diagnosis, treatment, and treatment monitoring. Roche employs over about 80,000 people and sells it's products in over 150 countries. The company was founded on October 1st, 1896. The founder, Fritz Hoffmann-La Roche, was among the first to recognize that the industrial manufacture of standardized medicines would be a major advance in the fight against disease. From the very beginning, Roche 's visionary founder focused his company on innovation and on establishing an international presence. Today Roche ranks among the world 's leading healthcare companies and has two strong core businesses: diagnostics and pharmaceuticals. Genentech Considered the founder of the biotechnology industry, Genentech has been delivering on the promise of biotechnology for more than 30 years, using human geneticinformation to discover, develop, manufacture and commercialize medicines to treat patients with serious or life-threatening medical conditions. Today, Genentech is among the world 's leading biotech companies, with multiple products on the market for serious or life-threatening medical conditions, more than 100 projects in the pipeline and a long term plan for growth. In March 2009 Roche acquired the remaining publicly held outstanding common stock in Genentech.