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

Skills for Success in Business Development

Kauffman Campus Best Practices WorkshopPurdue University

Ted T. Ashburn, MD, PhDSenior DirectorCorporate Development Genzyme Corporationted.ashburn@genzyme.com

November 9, 2007

2© 2007 Genzyme Corporation. All rights reserved.

Outline

1. Current Trends

2. Genzyme

3. Business Development in Action

4. Key Skills for Success Business Development General

3© 2007 Genzyme Corporation. All rights reserved.

Outline

1. Current Trends

2. Genzyme

3. Business Development in Action

4. Key Skills for Success Business Development General

4© 2007 Genzyme Corporation. All rights reserved.

1. The Pharmaceutical Value Chain

Ashburn & Thor, Nature Reviews Drug Discovery, Aug, 2004, pg 673-683Gilbert, Henske & Singh, IN VIVO, Nov, 2003

• 10-17 years, $1.7 billion+ process• > 75 different disciplines• < 10% overall probability of success once a

candidate enters clinical trials!!!

Idea! Drug

• Testing starts at Phase I (Phase I/II for cancer)

• In vitro• Ex vivo• In vivo• In silico• High

throughput

• Bioavailability• Systemic

exposure

• Traditional Med. Chem.

• Rational drug design

TargetDiscovery

Discovery& Screening

LeadOptim. ADMET

ClinicalDevelop.

Regis-tration.

2-3 yr 0.5-1 yr 1-3 yr 1-2 yr 5-6 yr 1-2 yr

• U.S (FDA)• E.U. (EMEA)• Japan (MHLW)• Rest of World

• Expression analysis

• In vitro function• In vivo

validation• Bioinformatics

5© 2007 Genzyme Corporation. All rights reserved.

1. The Industry’s Productivity Gap

Ashburn & Thor, Nature Reviews Drug Discovery, Aug, 2004, pg 673-683

6© 2007 Genzyme Corporation. All rights reserved.

1. Possible Explanation for the Industry’s Productivity Gap

Chemical Starting Point

TargetValidation

DevelopmentComplexity

Drug

Disease

1940’s 1960’s 1990’s Today

TheFruit

IsGettingHigher!

Hypertension

adrenaline

propranolol

Med

Med

BacterialInfections

penicillin

penicillin

High

Low

Arthritis

celecoxib

Screening/RDD

Low

High

Alzheimer’s

N.A.

Screening/RDD

Very Low

Very High

7© 2007 Genzyme Corporation. All rights reserved.

1. Why Innovation in HealthCare Is Important

Adapted from: Christensen, Bohmer & Kenagy, Harvard Business Review, Sept-Oct, 2000

Time

Complexity of treatment

By Pass (Heart Surgeons)

Stents (Cardiologists)

Antihyperlipidemics(PCP’s & NP’s)

OTC Antihyperlipidemics?(Patients)

8© 2007 Genzyme Corporation. All rights reserved.

0

50

100

150

200

250

300

Sales >$500M in '01* Drugs Approved inthe '90's**

1. Where Does Innovation Come From?

** NIH Response to the Conference Report Request for a Plan to Ensure Taxpayers' Interests are Protected. 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. Department of HHS, NIH. July 2001. Available at: http://www.nih.gov/news/070101wyden.jsp.

**** Tufts UniversityTufts University

> 90% of all new

drugs are developed

by the Pharma Industry

0

50

100

150

200

250

300

Sales >$500M in '01* Drugs Approved inthe '90's**

IndustryGov./Acad./Non-Prof.

9© 2007 Genzyme Corporation. All rights reserved.

1. Dependency of revenues on externally sourced products

39%

41%

43%

45%

47%

49%

04 05 06f 07f 08f 09f 10f

Big Pharma

Mid Pharma

Source: Datamonitor; company-reported information

~½ of all innovation

comes from small companies

10© 2007 Genzyme Corporation. All rights reserved.

Outline

1. Current Trends

2. Genzyme

3. Business Development in Action

4. Key Skills for Success Business Development General

11© 2007 Genzyme Corporation. All rights reserved.

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

12© 2007 Genzyme Corporation. All rights reserved.

2. Our Revenue Growth

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

'91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07(E)

$

$ I

n M

illio

ns

13© 2007 Genzyme Corporation. All rights reserved.

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

14© 2007 Genzyme Corporation. All rights reserved.

2. Our Major Marketed Products & Services

Thymoglobulin®

Hectorol®

Renal

Renagel®

Fabrazyme®

Genetic Diseases

Aldurazyme®

Cerezyme®

Oncology/ Endocrinology

Synvisc®

SepraTM Products

Orthopaedics/Biosurgery

Carticel®

MACI® Thyrogen®

Campath®

Clolar®

Transplant/ Immune Disease

Myozyme®

Genetic Testing

Reproductive

Oncology

Infectious Disease

Cardiovascular

Cardiovascular

Cholestagel

15© 2007 Genzyme Corporation. All rights reserved.

Outline

1. Current Trends

2. Genzyme

3. Business Development in Action

4. Key Skills for Success BD General

16© 2007 Genzyme Corporation. All rights reserved.

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

17© 2007 Genzyme Corporation. All rights reserved.

3. Genzyme Strategy: Growth By Building Value

MaximizeShareholder

value

Organic growth / status quo

Optimize capitalstructure

Improve investorunderstanding

Large scale transaction/merger/ sale

Strategic transactions

Streamline portfolio

Add-on acquisitions

Licensing arrangementsjoint ventures

Goal: To Remain

A Growth Stock

Objective: 20%-25% E.P.S. Growth

CD is Here

18© 2007 Genzyme Corporation. All rights reserved.

3. An Integrated/Cross-Functional Approach

Corporate Developm

ent

Finance

Legal

Business Unit

19© 2007 Genzyme Corporation. All rights reserved.

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

20© 2007 Genzyme Corporation. All rights reserved.

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 Hundreds of ongoing clinical trials targeting

hundreds of diseases > 1,500 private & public biotech companies (US) < 35% of approved products justify the cost of

development & launch 20% earnings growth promised to Wall Street

We Can’t Be Too “Picky” About Where

We Find Good Opportunities

21© 2007 Genzyme Corporation. All rights reserved.

3. A Transformation (One Step at a Time)

LSDs OrthopaedicsGeneticsDiagnostics

Genzyme pre-2000

Biomaterials

- 1999 Revenues: $750M

- Market Cap: $3.5B

Cerezyme®

Fabrazyme®

Aldurazyme®

Myozyme®

Niemann Pick

LSDs

Renagel ®

Renvela

Renal fibrosis

Tolevamer

Synvisc ®

Carticel ®

Synvisc II

Orthopaedics/Biomaterials

Thymoglobulin®/

Lymphoglobulin®

Mozobil

TGF antibodies

FC gamma receptor

Transplant &Immune Disease

Thyrogen®

CAMPATH®

CLOLAR®

ILX-651DENSPM liver

Oncology/Endocrinology

GeneticsDiagnostics

Renal

Genzyme 2007

GelTex

12/00

Biomatrix

12/00SangStat

9/03

Ilex

12/04

IMPATH

4/04

Hylastan

Cancer

Sepra

I2S (Asia)

Reproductive Hectorol ®

Bone Care

7/05

WYE/Synvisc

1/05

GelTex

12/00

Biomatrix

12/00SangStat

9/03

AnorMED

11/06

Ilex/Bio-envision

12/04

10/07

IMPATH

4/04

Bone Care

7/05

WYE/Synvisc

1/05

- 2006 Revenues: ~$3.2B

- Market Cap: $18B

CerezymeGabi/Epicel

CarticelPre-natal Sepra

22© 2007 Genzyme Corporation. All rights reserved.

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

23© 2007 Genzyme Corporation. All rights reserved.

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

– Harvard/MIT trained MD/PhD with Big Rx, VC & start-up experience

Anyone can do this as

long as they are

exceptionally strong at…

24© 2007 Genzyme Corporation. All rights reserved.

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

25© 2007 Genzyme Corporation. All rights reserved.

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…

Skills for Success in Business Development

Kauffman Campus Best Practices WorkshopPurdue University

Ted T. Ashburn, MD, PhDSenior DirectorCorporate Development Genzyme Corporationted.ashburn@genzyme.com

November 9, 2007