Building Biotech Technology Transfer Opportunities: Sponsor and developer strategies for success

Date: February 22, 2010
Pages: 137
Price:
US$ 3,835.00
Publisher: Business Insights
Report type: Strategic Report
Delivery: E-mail Delivery (PDF), Hard Copy Mail Delivery, CD-ROM Mail Delivery
ID: B692239B894EN
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Building Biotech Technology Transfer Opportunities: Sponsor and developer strategies for success
Drug developers have long been under pressure to introduce new products in an environment of escalating R&D costs, blockbuster patent expiration and resulting generic competition. Current weak economic conditions have exacerbated these challenges with sweeping R&D staff and budget reductions. In order to remain competitive, drug makers must now do more with less. Technology transfer, particularly of new biotechnologies that offer novel means to address unmet medical needs, offer a way to cost effectively address these challenges. They also provide technology developers with a mechanism to monetize their inventions.

However, while some drug makers and technology developers have optimized their biotech tech transfer methodologies and have developed sophisticated processes to select, monitor and manage a wide range of relationships, many other biotech tech transfer projects fail. A large proportion of these failures could be averted as many of the most common reasons for failure are preventable problems relating to due diligence failures, shortcomings in deal structure, management changes, cultural challenges, and inappropriate project organization and expectations. This report provides details on how to avoid these common pitfalls with case studies that illustrate best practices.

Key features of this report

  • Discussion of the factors leading to current imperatives to increased biotech tech transfer.
  • Detailed descriptions of both effective and ineffective biotech tech transfer approaches.
  • In depth analysis of the types of different biotech tech transfer relationships, their advantages and disadvantages.
  • More than 10 case studies that illustrate biotech tech transfer best practices.
  • Comprehensive discussion of offshore biotech tech transfer, particularly focusing on India and China.


  • Scope of this report

  • Understand the driving forces behind biotech tech transfer.
  • Save time and money with the report’s succinct compilation and analysis of current biotech tech transfer trends.
  • Learn how biotech tech transfer will evolve over the next several years and why.
  • Assess your competitive position vis-à-vis other technology sponsors or technology developers and learn about biotech tech transfer best practices via detailed case studies.
  • Understand the reasons behind biotech tech transfer success and failure.
  • Develop strategies to optimize your biotech tech transfer methodologies and protocols.


  • Key Market Issues

  • The drug development industry is undergoing a significant change which may permanently re-shape product development activities. Many industry experts believe the industry is shrinking; at the very least, the focus is shifting from large in-house research teams to smart approaches, strategic outsourcing and technology transfer.
  • Although cost cutting has previously not been a concern for R&D departments, the current economic environment has brought expense reduction programs into research labs. Most of the leading drug makers have recently undertaken and/or are currently in the midst of broad R&D cost cutting programs.
  • Biotechnology offers a means to address unmet medical needs, particularly via personalized medicine, which small molecule approaches do not. With more than 3,500 biotech drug companies around the world, many have developed unique technologies and approaches to drug development.
  • Because drug makers must continue to introduce new products, maintaining high productivity is key. Biotech tech transfer offers a means to achieve this by providing technology sponsors with access to new technologies.


  • Key findings from this report

  • After a decline in 2008 to 53 deals from 74 deals in 2007, biotech technology transfer volume for human medicines spiked in 2009 to 121 deals. Chapter 1
  • More than half of biotech tech transfer deals fail. Chapter 2
  • However, some firms experience very low failure rates of less than 10% while others report very high failure rates in excess of 70%. Chapter 2
  • Many biotech tech transfer failures can be traced to an inability on the part of the sponsor to adequately perform initial due diligence. Chapter 3
  • Over the next five years, the role of biotechnology in drug development is expected to expand strongly as biotech drug sales rise by 17.7% per year while small molecule drug sales grow by just 2.9% annually. Chapter 4


  • Key questions answered

  • Why is biotech tech transfer rising so quickly? (Because biotechnologies offer a means to address unmet medical needs and many new technologies have been developed outside of Big Pharma)
  • Which types of biotech tech transfer approaches are currently most common? (Licensing and acquisitions)
  • Which trends will further boost biotech tech transfer in the future? (Economic recovery, healthcare reform, clarification of biosimilars regulation, rising biotech funding)
  • What are the most common reasons for the failure of biotech tech transfers? Deficiencies in due diligence, inappropriate deal structure, differing cultures, inappropriate project organization and expectations and technology failure)

  • Building Biotech Technology Transfer Opportunities
    Executive Summary 8
    Overview of biotech tech transfer 8
    Why biotech tech transfer deals fail 9
    Strategies to ensure successful biotech tech transfer deals 10
    The future of biotech tech transfer deals 11

    CHAPTER 1 OVERVIEW OF BIOTECH TECH TRANSFER

    Summary 14
    The biotechnology industry today 15
    Biotechnology technologies and techniques 15
    Proliferation of investigational products 18
    Funding issues 18
    Need to partner to advance product development 19
    The emergence of biotechnology brokers 20
    Drug development challenges 21
    More complicated disease targets 22
    Escalating costs 22
    Increased regulatory scrutiny 23
    Diminished in-house R&D resources 24
    Types of biotech tech transfer relationships 26
    Academic R&D infusions 28
    Biotech biotech deals 29
    Pharma biotech alliances 30
    Licensing 32
    R&D collaborations 33
    Sales, distribution and co-marketing agreements 33
    Joint ventures 33
    Acquisitions 34
    Volume of recent deals 35
    Relationship trends 51
    Volume and value 51
    Ownership 52
    Conclusion 53

    CHAPTER 2 WHY BIOTECH TECH TRANSFER DEALS FAIL

    Summary 56
    High failure rates 57
    Symptoms of deal failure 57
    Factors that do not affect deal failure 58
    Implications of deal failure 59
    Impact on technology developers 60
    Impact on technology sponsors 61
    Lost value of failed deals 61
    Main causes of biotech tech transfer failure 62
    Due diligence failures 64
    Technology performance 66
    Patent issues 67
    Developer organization strength 67
    Deal structure 69
    Financial compensation 70
    Management changes 71
    Cultural differences 72
    Project organization and expectations 74
    Other preventable problems 76
    Technology failure 77
    Conclusion 77

    CHAPTER 3 STRATEGIES TO ENSURE SUCCESSFUL BIOTECH TECH TRANSFER DEALS

    Summary 80
    Measures of success 81
    Success for the technology developer 81
    Success for the technology sponsor 82
    Key biotech tech transfer strategies 82
    Strategies for both technology developers and sponsors 82
    Meeting technology challenges 82
    Strategies for technology developers 85
    Optimizing resources 85
    Thinking like a customer 88
    Working with professional tech transfer organizations 89
    Prolific publishing 91
    Strategies for technology sponsors 92
    Thorough technology identification and due diligence 93
    Structuring innovative deal terms 98
    Addressing compensation issues 105
    Fostering an entrepreneurial developer environment 105
    Ensuring effective alliance management 106
    Navigating cultural chasms 108
    Addressing international intellectual property challenges 110
    Conclusion 113

    CHAPTER 4 THE FUTURE OF BIOTECH TECH TRANSFER DEALS

    Summary 116
    Introduction 117
    The future of drug development 117
    Impact of the economy 119
    US healthcare reform 120
    Biosimilars 121
    Biotechnology in 2010 - 2015 123
    Where biotech fits into Big Pharma 125
    Dedicated biotechnology companies 127
    Biotech tech transfer deal trends 2010 - 2015 129
    Volume and value 130
    Ownership 132
    Intellectual property issues 133
    Success rates 134
    Conclusion 135
    Index 136

    LIST OF FIGURES

    Figure 1.1: Frequency of biotech tech transfer deals by type of institution 27
    Figure 1.2: Number and volume of biopartnering deals, 1997 - 2009 52
    Figure 1.3: Acquisitions as a proportion of biotech tech transfer deals, 53
    Figure 2.4: Characteristics of biotech tech transfer failure causes 63
    Figure 2.5: Relative importance to sponsor of technology developer 66
    Figure 3.6: Strategies to optimize biotech tech transfer opportunities 83
    Figure 4.7: Biopharmaceutical vs. other pharmaceutical sales, 2009 - 2015 124
    Figure 4.8: Impact of industry and economic trends on conventional and biotech drug developers, 2009 - 2015 125
    Figure 4.9: Relative importance of biotechnology for leading pharmaceutical companies, 2009 vs. 2015 127
    Figure 4.10: Number and average size of global biotech companies, 2009 - 2015 130
    Figure 4.11: Number and volume of biopartnering deals, 2009 - 2015 132

    LIST OF TABLES

    Table 1.1: Definition of biotechnology techniques 17
    Table 1.2: Biotech tech transfer deals, 2009 36
    Table 1.3: Biotech tech transfer deals, 2009 (Contd.) 37
    Table 1.4: Biotech tech transfer deals, 2009 (Contd.) 38
    Table 1.5: Biotech tech transfer deals, 2009 (Contd.) 39
    Table 1.6: Biotech tech transfer deals, 2009 (Contd.) 40
    Table 1.7: Biotech tech transfer deals, 2009 (Contd.) 41
    Table 1.8: Biotech tech transfer deals, 2009 (Contd.) 42
    Table 1.9: Biotech tech transfer deals, 2009 (Contd.) 43
    Table 1.10: Biotech tech transfer deals, 2009 (Contd.) 44
    Table 1.11: Biotech tech transfer deals, 2009 (Contd.) 45
    Table 1.12: Biotech tech transfer deals, 2009 (Contd.) 46
    Table 1.13: Biotech tech transfer deals, 2009 (Contd.) 47
    Table 1.14: Biotech tech transfer deals, 2009 (Contd.) 48
    Table 1.15: Biotech tech transfer deals, 2009 (Contd.) 49
    Table 1.16: Biotech tech transfer deals, 2009 (Contd.) 50
    Table 3.17: Technology transfer areas of interest for Merck & Co., 2010 95
    Table 3.18: Technology transfer areas of interest for Merck & Co., 2010 (Contd.) 96
    Table 3.19: Novartis private equity fund holdings, 2010 100
    Table 3.20: Novartis private equity fund holdings, 2010 (Contd.) 101
    Table 3.21: Novartis private equity fund holdings, 2010 (Contd.) 102
    Table 3.22: Novartis private equity fund holdings, 2010 (Contd.) 103
    Table 4.23: Millions of older and overweight persons in the US and EU, 2009 - 2015 119
    Table 4.24: Biosimilars approved in the US and EU, 2010 121

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