Deal Making in 2012- What Next? Part 1- Licensing




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Video title: Deal Making in 2012- What Next? Part 1- Licensing
Released on: April 02, 2012. © PharmaTelevision Ltd
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Part 1:In this episode Helen Wright talks to Fintan Walton,CEO PharmaVentures, Shaun Grady, VP Strategic Partnering Business Development, AstraZeneca and Andy Richards, BioTech Entrepreneur about the licensing environment in 2012
AstraZeneca's focussed therapy areas and partnering strategy in 2012
Helen Wright :
Welcome to this PharmaTelevision special program where we will be assessing current trends and gazing into our crystal ball to analyze the future shape of deal making in the pharmaceutical and biotech industries, with me Fintan Walton who is CEO of PharmaVentures who are experts in deals and alliances, Shaun Grady who is AstraZeneca's Vice President of strategic partnering and business development and on Skype Andy Richards a biotech entrepreneur and business angel. So firstly let's have a look at partnering, a review of the pharmadeals V4 database shows collaborative R&D deals remain flat though the average value of those deals did drive slightly last year after steady (indiscernable). The number of licensing deals fell in 2011 down sixteen percent on the previous year. So Shaun Grady partnering is your world of course what's happening at AstraZeneca?
Shaun Grady:
There is a tremendous amount going on currently we worked actually interacting with partners respective partners all across the value chain to a far better extent than we've seen recently one of the reasons for that is we believe the specific scientific leadership that we have now dedicated to partnering in each of our therapy areas which will enable perspective partners to interact much more quickly and much more readily with the scientific leadership in AstraZeneca in a particular therapy area such that we can make a much quicker more informed decision about whether the particular project is an area of interest for us that we can then progress enthusiastically or equally that we can share with partners that actually for whatever reason that's a program that is actually is in for us.
Helen Wright:
And I know you have given particular focus to this issue of partnering in new neuroscience specialist area, haven't you?
Shaun Grady:
Yeah you've might have seen an announcement we made two or three weeks ago where we are actually going to take a very different approach to our CNS and pain discovery and early development and we are gonna move away from owning and controlling all the activities in that area from having several hundred scientists employed in Astrazeneca in Europe and North America and we are actually going to create what we have been calling a virtual iMED so going from a group of several hundred to a group probably between 30 and 40 people only located in Boston, in Massachusetts but also here at Cambridge in UK and that group will approach our CNS and pain discovery and early development singularly through partnering and acquisition and then what's really quite neat we think is progressing those programs through the value chain through third parties through CMO's, CRO's, working with academia or whatever so approaching the whole area through the vehicle of collaboration and partnership.
Helen Wright:
As you were saying deals in this area or either flat or declining is that very much your view of how things are going to continue?
Shaun Grady:
No I really don't see that I mean this I can't speak for other peer for this only for Astrazeneca we've got huge appetite to access good quality innovation from outside the company we've got some really clear areas that we are now prioritizing so that we can share with partners areas of interest and less so with extra resource now dedicated to partnering we expect to do more in the next phase than we have done last year so I would also be surprised if the competition if the peer pharma are looking at any differently so I would actually expect to see an increase but it all depends upon the quality of programs that are available. I noticed in the report a comment that may be its around kind of having a different sort of scientific scrutiny and kind of quality lens and that's probably more than a grain of truth in that.
Fintan Walton 's perspective: Deal trends through 2012
Helen Wright:
Fintan what does PharmaVentures see happening through 2012 in this area?
Fintan Walton :
Well one of the key things here was as already been discussed is how are industry is basically changing its changing because pharmaceutical companies needs still build pipelines there is a lot of products come off patent so the continued need to fill pipeline is there so there is a continued need to do more deals more licensing deals against backdrop where biotechnology companies are not getting as much funding as they did in the past there is much more selective funding on companies that are going to be success stories, so what we are actually seeing is we will see a continued trend to do deals that are going to be more imaginative types of deals, the value of those deals are going to be selected on the basis of good assets so if you've got assets you've got good value. Going forward deals which are going to have lower values are less likely simply because the poor opportunities are not simply going to be taken up but having said that what we are also seeing as a trend is that companies are taking more option based deals in other words they are placing a bet on a particular product that's coming through clinical development and they will take a full option on that when the products got to particular stage, that helps the biotech company because now they've got an endorsement by a major pharmaceutical company probably and then the venture capitals might be more comfortable about putting more money into that company working closely with the corporate venture arms, so deal making will continue the shape of that deal making is changing and good assets will still get a good value.
Helen Wright:
Fintan Walton, Andy Richards and Shaun Grady thanks very much for joining us.
Helen Wright
Helen Wright has worked as a broadcast television journalist for several years, covering general news, business and politics and currently involved with PTVnews of Pharmatelevision.com. Helen Wright has also worked as ITV News education correspondent and covered disability affairs. She has reported from Europe and the US. She also researched, directed and presented films for a Yorkshire TV regional documentary programme. Helen Wright began her journalistic career in local radio in Bradford. She has a BA Honours Degree in English.
Fintan Walton
CEO
Dr Fintan Walton is the Founder and CEO of PharmaVentures . After completing his doctoral research on the genetics of cell proliferation at the University of Michigan(US)and Trinity College (Dublin, Ireland), Dr Walton gained broad commercial experience in biotechnology in management positions at Bass and Celltech plc (1982-1992).
Shaun Grady
Vice President
At the time of recording this PTV interview Shaun Grady serves as VP Strategic Partnering and Business Development at AstraZeneca. Shaun Grady has global responsibility for the Strategic Partnering and Business Development (SPBD) function, dedicated to broadening AstraZeneca's access to scientific innovation outside our own laboratories - a key strategic priority for AstraZeneca. The scope of his team includes in-licensing, acquisition and partnering activities from early stage Discovery through to on-market commercial opportunities. Shaun originally joined ICI as an attorney and held positions in the Pharmaceuticals, Petrochemicals, and Head Office Legal Departments. Upon the demerger of Zeneca from ICI he was appointed Assistant General Counsel, Corporate. He worked on the merger of Astra and Zeneca, the merger of Zeneca Agrochemicals with Novartis Agribusiness to form Syngenta, and the creation of Avecia.
Andy Richards
Chairman
At the time of recording this PTV interview Andy Richards serves as Andy Richards is a serial Biotechnology entrepreneur and business angel. He is currently Chairman of Altacor , Novacta, Abcodia and Ixico and is a director of Arecor, Summit Corp plc, PsychologyOn-line, Cancer Research Technology (commercial arm of CR-UK) and Babraham Bioscience Technology. Andy is a Cambridge graduate with a PhD in Chemistry who spent his early career with ICI (now AstraZeneca) and with PA Technology. He was a founder of Chiroscience and an executive director through to the sale to Celltech in 1999. Since that time he has been founding and investing in new Cambridge based biotechnology companies including several of those listed above as well as Arakis, Geneservice, Cambridge Biotechnology Ltd, Amedis Pharmaceuticals, Sirus Pharmaceuticals, Daniolabs and Pharmakodex, all of which were recently sold. He is a council member of the Biotechnology and Biological Sciences Research Council (BBSRC), a founder member of the Cambridge Angels, the founding Chairman of BIA Bioangels and an advisor to Vectura plc, CUTEC, 4D-biomedical and Toscana Life Sciences.
PharmaVentures
PharmaVentures is a corporate finance and transactions advisory firm that has served hundreds of clients worldwide in relation to their strategic deal making in the pharmaceutical, life science and healthcare sectors. Our key offerings include: Transactions / deal negotiations; Product / technology valuations; Deal term advice; Due diligence & expert reports; Strategy formulation; Alliance management; and Expert opinion for litigation/arbitration cases. PharmaVentures provides the global expertise to ensure our clients generate the highest possible return on investment from all their deal making activities. We have experience of all therapeutic areas and can offer advice on both product and technology commercialisation.
PharmaVentures
PharmaVentures is a corporate finance and transactions advisory firm that has served hundreds of clients worldwide in relation to their strategic deal making in the pharmaceutical, life science and healthcare sectors. Our key offerings include: Transactions / deal negotiations; Product / technology valuations; Deal term advice; Due diligence & expert reports; Strategy formulation; Alliance management; and Expert opinion for litigation/arbitration cases. PharmaVentures provides the global expertise to ensure our clients generate the highest possible return on investment from all their deal making activities. We have experience of all therapeutic areas and can offer advice on both product and technology commercialisation.
AstraZeneca
AstraZeneca is a global, innovation-driven biopharmaceutical business with a primary focus on the discovery, development and commercialization of prescription medicines for gastrointestinal, cardiovascular, neuroscience, respiratory and inflammation, oncology and infectious disease. AstraZeneca operates in over 100 countries and its innovative medicines are used by millions of patients worldwide.
Altacor
Altacor is an ophthalmic specialty pharmaceutical company with marketed products and a diverse development pipeline. The products are focused in the following sub therapeutic areas: ocular surface disease, ocular anti-infection and glaucoma. The company differentiates products through, for example, formulation or reprofiling. ALT 005 (surgical) and ALT 020(ocular anti-infection), ALT 022glaucoma and ALT 401 for prevention of scarring in glaucoma surgery are examples. Altacor has five products marketed in the UK and Ireland (Clinitas and Clinitas range) which are commercialised through its own sales and marketing organisation and network. Clinitas and Clinitas GEL are prescription products; the former is for moderate dry eye conditions and has a uniquely high concentration of hyaluronic acid (0.4%) in the UK. It is gaining acceptance by clinicians nationwide. The OTC Clinitas range comprises Clinitas Hydrate, Clinitas Soothe and Clinitas Ultra 3which together address the major causes of dry eye.