Skills for Success in Business Development Kauffman Campus Best Practices Workshop Purdue University

Skills for Success in
Business Development
Kauffman Campus Best Practices Workshop
Purdue University
Ted T. Ashburn, MD, PhD
Senior Director
Corporate Development
Genzyme Corporation
ted.ashburn@genzyme.com
November 9, 2007
Outline
1.
2.
3.
4.
Current Trends
Genzyme
Business Development in Action
Key Skills for Success
 Business Development
 General
© 2007 Genzyme Corporation. All rights reserved.
1
Outline
1.
2.
3.
4.
Current Trends
Genzyme
Business Development in Action
Key Skills for Success
 Business Development
 General
© 2007 Genzyme Corporation. All rights reserved.
2
1. The Pharmaceutical Value Chain
Idea!
Target
Discovery
• Expression
analysis
• In vitro function
• In vivo
validation
• Bioinformatics
Discovery
& Screening
•
•
•
•
•
2-3 yr
In vitro
Ex vivo
In vivo
In silico
High
throughput
0.5-1 yr
Lead
Optim.
ADMET
• Traditional
Med. Chem.
• Rational drug
design
• Bioavailability
• Systemic
exposure
1-3 yr
1-2 yr
Clinical
Develop.
• Testing starts
at Phase I
(Phase I/II for
cancer)
Registration.
•
•
•
•
Drug
U.S (FDA)
E.U. (EMEA)
Japan (MHLW)
Rest of World
5-6 yr
1-2 yr
• 10-17 years, $1.7 billion+ process
• > 75 different disciplines
• < 10% overall probability of success once a
candidate enters clinical trials!!!
Ashburn & Thor, Nature Reviews Drug Discovery, Aug, 2004, pg 673-683
Gilbert, Henske & Singh, IN VIVO, Nov, 2003
© 2007 Genzyme Corporation. All rights reserved.
3
1. The Industry’s Productivity Gap
Ashburn & Thor, Nature Reviews Drug Discovery, Aug, 2004, pg 673-683
© 2007 Genzyme Corporation. All rights reserved.
4
1. Possible Explanation for the
Industry’s Productivity Gap
1940’s
Disease
1960’s
Bacterial
Hypertension
Infections
1990’s
Today
Arthritis
Alzheimer’s
Drug
penicillin
propranolol
celecoxib
N.A.
Chemical
Starting Point
penicillin
adrenaline
Screening
/RDD
Screening
/RDD
Target
Validation
High
Med
Low
Very Low
Development
Complexity
Low
Med
High
Very High
© 2007 Genzyme Corporation. All rights reserved.
The
Fruit
Is
Getting
Higher!
5
1. Why Innovation in
HealthCare Is Important
By Pass
(Heart Surgeons)
Complexity of
treatment
Stents
(Cardiologists)
Antihyperlipidemics
(PCP’s & NP’s)
OTC Antihyperlipidemics?
(Patients)
Time
Adapted
from:
Christensen,
Bohmer
©
2007 Genzyme
Corporation.
All rights reserved.
& Kenagy, Harvard Business Review, Sept-Oct, 2000
6
1. Where Does Innovation
Come From?
Gov./Acad./Non-Prof.
Industry
300
> 90% of
all new
drugs are
developed
by the
Pharma
Industry
250
200
150
100
50
0
Sales >$500M in '01*
Drugs Approved in
the '90's**
* NIH Response to the Conference Report Request for a Plan to Ensure Taxpayers' Interests are Protected.
Department of HHS, NIH. July 2001. Available at: http://www.nih.gov/news/070101wyden.jsp.
©
Genzyme
Corporation. All rights reserved.
**2007
Tufts
University
7
1. Dependency of revenues on
externally sourced products
49%
47%
~½ of all
innovation
comes
from small
companies
45%
43%
41%
Big Pharma
39%
Mid Pharma
04
05
06f
07f
Source: Datamonitor; company-reported information
© 2007 Genzyme Corporation. All rights reserved.
08f
09f
10f
8
Outline
1.
2.
3.
4.
Current Trends
Genzyme
Business Development in Action
Key Skills for Success
 Business Development
 General
© 2007 Genzyme Corporation. All rights reserved.
9
2. Our Global Corporation







>9,500 employees worldwide
Helping patients in nearly 90 countries
17 manufacturing sites
9 genetic testing lab sites
14 marketed products
2006 revenue of $3.2 billion
>70 locations in >30 countries
© 2007 Genzyme Corporation. All rights reserved.
10
2. Our Revenue Growth
$
4,000
3,500
3,000
$ In Millions
2,500
2,000
1,500
1,000
500
0
'91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07
(E)
© 2007 Genzyme Corporation. All rights reserved.
11
2. Awards and Recognition
 One of the “100 Best Companies
to Work for” by FORTUNE
 Named a top employer by
Science
 Rated one of the most generous
in-kind givers by BusinessWeek
 Named to the Dow Jones
Sustainability
 Genzyme Center recognized as
one of the most environmentally
responsible U.S. buildings
© 2007 Genzyme Corporation. All rights reserved.
12
2. Our Major Marketed Products
& Services
Reproductive
Cerezyme®
Renagel®
Synvisc®
Campath®
Oncology
Fabrazyme®
Hectorol®
Carticel®
Clolar®
Infectious Disease
Aldurazyme®
MACI®
Thyrogen®
Cardiovascular
Myozyme®
SepraTM Products
Genetic
Testing
Genetic
Diseases
© 2007 Genzyme Corporation. All rights reserved.
Renal Orthopaedics/
Biosurgery
Oncology/
Endocrinology
Thymoglobulin® Cholestagel
Transplant/
Immune
Disease
Cardiovascular
13
Outline
1.
2.
3.
4.
Current Trends
Genzyme
Business Development in Action
Key Skills for Success
 BD
 General
© 2007 Genzyme Corporation. All rights reserved.
14
3. Summary: What is
Business Development?
 In larger companies
– Licensing/Acquisitions Department
– “Buying”
 In smaller companies
– “BD is the Marketing & Sales before there are
any products”
– “Selling” (and sometimes buying)
Source: Jack Anthony, SVP, Business Development, Saegis Pharmaceuticals
© 2007 Genzyme Corporation. All rights reserved.
15
3. Genzyme Strategy:
Growth By Building Value
Organic growth /
status quo
Optimize capital
structure
Maximize
Shareholder
value
Improve investor
understanding
Streamline portfolio
Goal: To
Remain
A Growth
Stock
Licensing arrangements
joint ventures
Strategic
transactions
CD is
Here
© 2007 Genzyme Corporation. All rights reserved.
Add-on acquisitions
Objective: 20%-25%
E.P.S. Growth
Large scale transaction/
merger/ sale
16
3. An Integrated/Cross-Functional
Approach
Corporate
Development
Finance
Business
Unit
Legal
© 2007 Genzyme Corporation. All rights reserved.
17
3. Genzyme Deal Criteria
 Significant Unmet Medical Need
– Rare diseases
– New Standard of Care
 Risk-reduced Opportunities
– Human POC or later
– Clear Regulatory pathways
 Focused Call Point(s)
– Not PCP’s
 Partnerships
– Desire to work together to create value
– Both Regional and worldwide
© 2007 Genzyme Corporation. All rights reserved.
18
3. The “Kissing Lots Of Frogs”
Problem
 It takes 10-17 yrs & over $1.7 bn to develop a drug
 < 1 in 10 that begin human trials reach the market
 Late stage clinical trials are often delayed/stopped
We Can’t Be Too
 Hundreds of ongoing clinical trials targeting
“Picky” About Where
hundreds of diseases
We Find Good
 > 1,500 private & public biotech companies (US)
Opportunities
 < 35% of approved products justify the cost of
development & launch
 20% earnings growth promised to Wall Street
© 2007 Genzyme Corporation. All rights reserved.
19
3. A Transformation
(One Step at a Time)
Genzyme pre-2000
LSDs
Cerezyme
- 1999 Revenues: $750M
- Market Cap: $3.5B
Genetics
Diagnostics
Orthopaedics
Biomaterials
Pre-natal
Carticel
Sepra
Gabi/Epicel
IMPATH
Biomatrix
GelTex
12/00
12/00
9/03
4/04
WYE/Synvisc
Bone Care
AnorMED
1/05
7/05
11/06
Genzyme 2007
LSDs
Cerezyme®
Fabrazyme®
Aldurazyme®
Myozyme®
I2S (Asia)
Niemann Pick
Genetics
Diagnostics
Cancer
Reproductive
© 2007 Genzyme Corporation. All rights reserved.
SangStat
Orthopaedics/
Biomaterials
Synvisc ®
Carticel ®
Sepra
Synvisc II
Hylastan
Renal
Renagel ®
Hectorol ®
Renvela
Renal fibrosis
Tolevamer
Ilex/BioIlex
envision
12/04
12/04
10/07
- 2006 Revenues: ~$3.2B
- Market Cap: $18B
Transplant &
Immune Disease
®
Thymoglobulin
/
®
Lymphoglobulin
Mozobil
TGFb antibodies
FC gamma receptor
Oncology/
Endocrinology
Thyrogen®
CAMPATH®
CLOLAR®
ILX-651
DENSPM liver
20
Who are Business Development
People?
 “Top Notch Business Development People
are People who have an irresistible urge to
Make Things Happen”
Source: Jack Anthony, SVP, Business Development, Saegis Pharmaceuticals
© 2007 Genzyme Corporation. All rights reserved.
21
3. BD Backgrounds at Genzyme
 10 MBA’s (Wharton, Harvard, Kellogg)
 4 PhD’s
– Harvard PhD (Biomedical engineering)
with small cap biotech & start-up
experience
– xScientist from Integrated Genetics
– MIT trained chemist





3 xSales Reps (Lilly & BMS)
3 JD’s (Georgetown & Harvard)
2 xConsultants (Bain & McKinsey)
1 MPH (BU) & 1 MD (Missouri)
1 overly-trained individual
Anyone can
do this as
long as they
are
exceptionally
strong at…
– Harvard/MIT trained MD/PhD with Big Rx,
VC & start-up experience
© 2007 Genzyme Corporation. All rights reserved.
22
4. Key Skills for Success:
Business Development
 Selling Ability
 Listener
 Organized/
Organizer
 Planner
 Presenter
 Cold Caller
 Articulate







Enthusiastic
People Person
Lucky
Manager
Science Friendly
Reality Based
Common Sense
Source: Jack Anthony, SVP, Business Development, Saegis Pharmaceuticals
© 2007 Genzyme Corporation. All rights reserved.
23
4. Key Skills for Success:
General
1. Find a Cause
2. Think BIG!
3. READ
VORACIOUSLY!
4. Take care of yourself
5. Have a platform…
© 2007 Genzyme Corporation. All rights reserved.
24
Skills for Success in
Business Development
Kauffman Campus Best Practices Workshop
Purdue University
Ted T. Ashburn, MD, PhD
Senior Director
Corporate Development
Genzyme Corporation
ted.ashburn@genzyme.com
November 9, 2007