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BIO PARTNERSHPS ASIA Biopharmaceutical Partnering Opportunities and Open Innovation Challenges December 2011 VOL. 4 ISSUE 2 Open Innovation: Targeting the Bottom of the Pyramid Considerations for Conducting Clinical Trials in Asia NANOTECHNOLOGY BIOLOGY CHEMISTRY PHYSICS INFORMATION SCIENCES Nanomaterials Nanodevices Nanoelectronics Nanosensors Bioinformatics Biosensors Tissue Engineering Drug Delivery Diagnostics Drug Delivery Chemical Catalysis Nanofiltration Chemical Sensors Neuron Network/ Prostheses Generation COGNITIVE

Bio Outsourcing Asia: Volume 1 Issue 3 2011.pdf · TB drug trials. Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies

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Page 1: Bio Outsourcing Asia: Volume 1 Issue 3 2011.pdf · TB drug trials. Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies

BIO PARTNERSHPS ASIA

Biopharmaceutical Partnering Opportunities and Open Innovation Challenges

December 2011 VOL 4 ISSUE 2

Open Innovation Targeting the Bottom of the

Pyramid

Considerations for Conducting Clinical Trials in

Asia

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

Nanomaterials

Nanodevices

Nanoelectronics

Nanosensors

Bioinformatics

Biosensors

Tissue Engineering

Drug Delivery

Diagnostics

Drug Delivery

Chemical Catalysis

Nanofiltration

Chemical Sensors

Neuron Network

Prostheses GenerationCOGNITIVE

2

Bio Partnerships Asiacopy

TABLE OF CONTENTS December 2011

Vol 4 Issue 2 copy CanBiotech Inc

Formats Online Digital and Print

Subscription 25000 Content

Feature Stories Trends and Analysis

Case Studies Technology Profiles Company Profiles

News Events

Access Free

UPCOMING ISSUE

Contact the Editor at

editorcanbiotechcom to participate in this issue

Models of Open Innovation

AstraZenecamdashMaking Partnerships Work for Product Development at the Bottom of the

Pyramid

Page 5

Pfizerrsquos Open Innovation Strategy in Asia

Page 8

A Networked Open Innovation Strategy The SpringFire Laboratory Network

Page 11

Convergence Innovation Development at the

Intersection of Disciplines Organizations and Products

Page 14

Case Analysis INC Research

Beyond Cost-Savings Hidden Considerations for Conducting Clinical Trials in Asia

By Jessica Liu

General Manager ChinaNorth Asia INC Research

And

Garth Tierney

Regional General Manager Australia and South East Asia

INC Research

Page 17

Bio Partnership News

Page 18

3

Emerging Models of Open Innovation in the Bioconvergence Paradigm 2 Day Workshop September 2012 The biopharmaceutical industry faces a crisis in productivity with rapidly rising costs for RampD but declining results To address these challenges in both developed and under-developed markets pre-competitive discovery based consortia programs for open innovation and crowd-sourcing are being employed Progressing beyond the biopharmaceutical industry into the emerging bioconvergence paradigm this training course has the objective of enabling stakeholders to understand emerging mod-els of open innovation in the bioconvergence space-- where the biotechnology pharmaceutical chemical medical devices and di-agnostics nanotechnology and ICT sectors merge The course adopts the nuanced perspectives of knowledge management and learning in open innovation in this paradigm As an additional feature the course will explore opportunities for capacity devel-opment at the bottom of the pyramid through open innovation strategies About BioEndeavor There are several complexities driving open innovation in the life sciences including knowledge complexitiesmdashwith knowledge exhibiting high

complementarity and high applicability across domains technological complexities associated with interdependen-

cies between technologies the need for sophisticated equip-ment as well as the scope and scale of research

and commercialization complexities associated with technol-ogy transfer and product development

BioEndeavor has the objective to understand and develop models of open innovation that have their application in bioconvergence domains By using a network strategy BioEndeavor brings to-gether stakeholders to collectively conduct and share research on open innovation in the life sciences wwwbioendeavornet Contact Information Dr Minna Allarakhia Director BioEndeavor minnabioendeavornet

Workshop Topics Understanding Open Innovation Models

Objective and Open Innovation Model Mapping (Sectoral and Phase Impact) Assessing Participants (Types Viability) Relationship Management Knowledge Management (Access Dissemination IT Infrastructure) Learning Strategies (Learning by DoingLearning by Using) Knowledge Appropriation (IP Management Technological Isolation) Capacity Development-Developed Vs Developing MarketsNeglected Diseases

4

5

AstraZenecamdashMaking Partnerships Work for Product Development at the Bottom of the Pyramid AstraZeneca and other pharmaceutical companies government agencies NGOs donors and academics have joined a collaboration led by the Bill and Melinda Gates Foundation the TB Alliance and the Critical Path Institute to explore funding mechanisms and support for late-stage clinical trials Currently there are nine promising TB compounds from at least six antibiotic classes in development including one compound from Astra-Zeneca AstraZenecalsquos dedicated research facility in Bangalore India is a key component in this initiative The initiative offers a model for other multi-stakeholder partnerships working to improve health at the bottom of the pyramid (AstraZeneca 2011) Promising compounds identified in this col-laboration will also be tested in combination with other therapies as part of the Critical Path to TB Drug Regimensmdasha cross-sector initiative with the objective to speed up the development and delivery of TB drug regimens to patients (AstraZeneca 2010) ―Collaboration is absolutely vital to developing the tools needed to truly revolutionize the way TB is treated and overcome the global TB epidemic said Mel Spigelman MD President and CEO TB Alliance ―AstraZeneca has a well-established TB drug discovery program and is a crucial participant in the Critical Path to New TB Regimens Together our research promises to bring important advances to TB patients in need (AstraZeneca 2010) Les Hughes AstraZenecalsquos Vice President of Infection Discovery said ―AstraZeneca is building a leading franchise in the treatment of infectious diseases both through our own in-house research as well as through col-laborations This collaboration is part of the global partnership that will be needed to conquer the TB epidemic We are excited to be working with the TB Alliance to help move forward the drug discovery program and quickly speed promising candidates into clinical development (AstraZeneca 2010) Augmenting its research in Bangalore AstraZeneca recently joined a consor-tiummdashthe More Medicines for Tuberculosis (MM4TB)mdashto fight TB with French rival Sanofi-aventis the University of Cambridge and other research organizations The MM4TB consortium has the goal of developing new drugs for successful and shorter treatment for TB (Kollewe 2011) The Eacutecole Polytechnique Feacutedeacuterale de Lausanne (EPFL) along with the universi-ties of Pavia in Italy and Uppsala in Sweden are also participants in the con-sortium AstraZeneca is sharing its compounds and expertise Research will be carried out at a London medical school and the John Innes Centre in Norwich as well as in Russia India and South Africa The aim is to have 10 to 20 compounds in the pipeline to develop two or three successful TB drugs that will be given as a cocktail to patients (Kollewe 2011) In parallel AstraZeneca announced its partnership with Medicines for Malaria (MMV) in 2010 Under the terms of the agreement scientists work-ing with MMV will screen 500000 compounds in AstraZenecalsquos unique li-brary for activity against P falciparum the most lethal of malaria parasites (MMV 2010) Tim Wells MMVlsquos Chief Scientific Officer said ―AstraZeneca has had a long standing interest in neglected disease and we are delighted to be able to collaborate with the centre in Bangalore on this exciting project in malariahellip (MMV 2010) The Critical Path to TB Drug Regimes (CPTR) The Critical Path to TB Drug Regimens (CPTR) is a broad collaboration of pharmaceutical companies government regulatory and multilateral agen-cies donors academia advocates and NGOs that aims to accelerate the development of new safe and highly effective tuberculosis (TB) treatment regimens with shorter therapy durations (CPTR 2011) AstraZeneca is among several partners that signed the CPTR Statement of Principles on March 18 2010 The partners have agreed to

Encourage information sharing and collaboration among interna-tional organizations industry and regulatory agencies to innovate and accelerate TB drug development and get important new thera-pies to patients

Promote the development of new regulatory approaches that sup-port innovative research into TB therapeutics evaluate new TB drug combinations safely and effectively and reinforce current guidelines for development of effective drug combinations

Work together using industry best practices to test TB drug can-didates in combination regimens beginning early in the develop-ment process

Create a collaborative coordinating structure to oversee this initia-tive

Explore creative new funding streams for developing novel com-

bination TB therapies Advance efforts to utilize existing clinical trial sites for TB while

also building clinical trial site capacity for late-stage combination TB drug trials

Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies for patients in need

(CPTR 2011) On November 9 2011 the Critical Path to TB Drug Regimens (CPTR) an-nounced an innovative agreement between AstraZeneca Bayer Sanofi Tibotec TB Alliance and the World Health Organization The collaboration will enable information-sharing around scientific and clinical data on TB compounds in clinical development By sharing data it is anticipated that partners can identify opportunities to test their compounds in combination If two or more organizations choose to work together to further develop a regimen they can then enter into a separate arrangement that defines the rights and responsibilities of each party ―This initiative is a further example of industry working together and with others to share knowledge and exper-tise for the benefit of the wider society said David Brennan Chief Execu-tive Officer of AstraZeneca (CPTR Yields Progress 2011) The More Medicines for Tuberculosis (MM4TB) Consortium AstraZeneca is also one of 25 partners from 13 countries in Europe America Asia and Africa to join the More Medicines for Tuberculosis (MM4TB) consortium Members include

The Eacutecole Polytechnique Feacutedeacuterale de Lausanne (EPFL) Pharmaceutical companies AstraZeneca and Sanofi-aventis Diagnostics company Alere Four SMEsmdashVichem Cellworks CDD and Tydock Twelve universities including Uppsala Pavia Cambridge Queen

Marys London Padova Comenius Piemonte Orientale the Basque Country Zaragoza ETH Zurich and Cape Town

Five research institutesmdashInstitute Pasteur in Paris Institut Pasteur of Lille the Bach Institute of Biochemistry the John Innes Centre and the Indian Academy of Sciences

And the Scientific management company SCIPROM (MM4TB 2011) MM4TB evolved from New Medicines for TB (MM4TB) a successful pro-ject which delivered a candidate drug for clinical development two years ahead of schedule Building on this MM4TB will continue the search for new drugs for successful and shorter treatment of TB (AstraZeneca 2011) Brennan urged ministers at the Asian Business Leaders conference in 2010 to work with the pharmaceutical industry to share the risks and costs in de-veloping effective antibiotics and other treatments He stressed the impor-tance of public sector bodies and NGOs teaming up with pharmaceutical groups to tackle the problem of antibiotic resistance Along with Novartis and Merck AstraZeneca is one of few companies that are investing in the area (Kollewe 2010) Development research will be done primarily in coun-tries with high rates of infection and AstraZeneca will collaborate with exter-nal partners with relevant skills and expertise While the company will apply for patent protection the organization seeks partnership arrangements with global and local organizations to make TB treatments widely available in the developing world through supply strategies that minimize cost of manufac-ture and delivery (AstraZeneca 2011) Partnership with Medicines for Malaria (MMV) In parallel AstraZeneca announced its partnership with Medicines for Malaria (MMV) in 2010 The agreement permitted MMV to access Astra-Zenecalsquos extensive compound library MMV will seek to identify promising compounds with the potential to treat malaria including drug resistant strains of the disease MMV has the objective to discover develop and de-liver new effective and affordable anti-malarial drugs with simpler dosing regimens thereby encouraging patient compliance and helping reduce the risk of resistance developing The ultimate goal is to find a one-dose cure for malaria (MMV 2010)

6

Under the terms of the agreement scientists working with MMV will screen 500000 compounds in AstraZenecalsquos unique library for activity against P falciparum the most lethal of malaria parasites Prof V Avery at the Eskitis Institute for Cell and Molecular Therapies at Griffith University in Brisbane Australia will conduct the screening on behalf of MMV Promising com-pounds identified through the screening process will be starting points for antimalarial drug discovery projects These compounds will be progressed through a discovery cascade at AstraZenecalsquos RampD facility in Bangalore India with the aim of identifying suitable candidates for clinical testing (MMV 2010) David Brennan AstraZenecalsquos CEO said ―hellipOpening up our compound library to MMV is an important step toward addressing the enormous unmet medical needs of the developing world AstraZeneca is committed to being part of the solution and we look forward to working with MMV and all those with a stake in global health (MMV 2010) Tim Wells MMVlsquos Chief Scientific Officer stated that ―hellipthe additional advantage is the Indian perspective India has millions of cases of malaria per year and in addition has a balance between Plasmodium falciparum and Plasmodium vivax Understanding and eliminating Indian malaria is one of the keys to eliminating malaria worldwide (MMV 2010) Opening up Proprietary Assets AstraZeneca recently agreed to join the World Intellectual Property Organizationlsquos (WIPO) WIPO ReSearch initiative in what is an unprece-dented collaboration between the private sector and public partners WIPO ReSearch will present to the public a searchable database of available IP as-sets and resources for use in neglected tropical disease (NTD) research The commitment includes the provision that IP licensed via WIPO ReSearch will be licensed on a royalty-free basis for research and development for ne-glected tropical diseases in any country It will also be licensed on a royalty-free basis for sales of neglected tropical disease medicines in or to least de-veloped countries AstraZeneca has committed to making its entire patent portfolio available for use in NTD RampD through WIPO ReSearch In addi-tion AstraZeneca will provide access to its high throughput screening tech-nologies compound collection and global laboratories AstraZeneca hopes to increase opportunities for scientists to work at it facilities around the world and encourage scientific mentoring and use of innovative technologies

by guest scientists researching treatments for NTDs (AstraZeneca 2011) Through a combination of open innovation and open source initiatives AstraZeneca shares the joint goal of speeding up the discovery and develop-ment of new potential treatments for NTDs Time will tell which strategies prove most effective in terms of both product development and product access (Figure 1) References 1 AstraZeneca and MMV join efforts in the fight against malaria MMV

June 2010 2 CPTR httpcptrinitiativeorg 2011 3 CPTR Yields Progress November 2011 4 Kollewe J AstraZeneca joins fight against tuberculosis

The Guardian March 2011 5 Leading pharmaceutical companies amp research institutions offer IP

and expertise for use in treating neglected tropical diseases AstraZeneca October 2011

6 MM4TB wwwmm4tborg 2011 7 Partnering is a Priority AstraZeneca 2011 8 Tackling TB AstraZeneca 2011 9 The Global Alliance for TB Drug Development (TB Alliance) and

AstraZeneca Announced that they have Entered into a Research Col-laboration Agreement to Accelerate the Discovery Development and Clinical Use of Drugs Against Tuberculosis (TB) AstraZeneca 2010

Figure 1 Open Innovation and Open Source Strategies for NTDs at AstraZeneca

AstraZeneca Global Open Source Strategy

WIPO ReSearch Alliance Sharing of Compounds

Technology Access to IP

AstraZeneca Malaria Open Innovation

Strategy Dedicated Research Facility

Bangalore India

AstraZeneca Global NTD Strategy

Guest Researcher Access to Global Facilities

Mentorship Opportunities for Research in NTDs

AstraZeneca TB Open Innovation Strategy Dedicated Research

Facility Bangalore India CPTR Alliance

7

8

Pfizerrsquos Open Innovation Strategy in Asia

Pfizer has been targeting Asian markets since the early 1950s and is one of the largest US-headquartered pharmaceutical companies in Asia One key issue is the disassociation between drug research and sales It has increas-ingly become apparent that the majority of RampD is conducted outside Asia while products are sold within target Asian markets The Asia Research Ac-celerator strategy was designed to address this concernmdashwith the goal of advancing drug discovery programs in Asia while complementing existing research efforts in North America and Europe (Pfizer Global Opportuni-ties 2010) Through this initiative Pfizer invests in Asia-based research efforts that may yield either new candidates for medicines or new pathways for technology development In 2010 Pfizer either launched or expanded collaborative ef-forts throughout the region with major Asia-based researchers such as WuXi AppTec Crown Bioscience Cumencor HD Biosciences and PharmaResources (Shanghai) Co as well as through academic partnerships with Fudan University Shanghai Jiao Tong University and Shanghai Institutes for Biological Sciences (Pfizer Global Opportunities 2010) This global network of industry and academic alliances is stimulating bio-medical advances into diseases that are more prevalent in Asia than in other parts of the world For example Pfizer currently has partnerships with the Korea Research Institute of Bioscience and Biotechnology and with the Asian Cancer Research Group (an independent not-for-profit company es-tablished by Pfizer Eli Lilly and Merck) to investigate treatments and to un-derstand certain types of gastric liver head and neck cancers that have higher prevalence rates in Asia than in places such as North America and Western Europe Here we see capacity development in emerging markets with the objective to address the health concerns of the Asian patient (Pfizer Global Opportunities 2010) An Open Source Strategy for New Drug Discovery In 2010 Eli Lilly and Company Merck and Pfizer Inc formed the Asian Cancer Research Group Inc (ACRG) an independent not-for-profit com-pany The ACRGlsquos formation represents a prime example of a growing trend in pre-competitive collaboration in which large pharmaceutical compa-nies combine their resources and expertise to rapidly increase knowledge of disease and disease processes The goal of the ACRG is to improve the knowledge of cancers prevalent in Asia and to accelerate drug discovery ef-forts by freely sharing the resulting data with the scientific community Initially the ACRG will focus on lung and gastric cancers two of the most common forms of cancer in Asia As many as 40 percent of patients with lung cancer in Asia demonstrate a mutation that is relatively rare in Western patients (EGFR mutation) This mutation has resulted in differences in re-sponse to some types of agents suggesting that a different research ap-proach is needed for developing treatments for certain patient populations Over the next two years Lilly Merck and Pfizer have committed to create one of the most extensive pharmacogenomic cancer databases known to date This database will be composed of data from approximately 2000 tis-sue samples from patients with lung and gastric cancer that will be made publicly available to researchers and over time further populated with clini-cal data from a longitudinal analysis of patients (Pfizer 2010) Ties to Academia In the past six years Pfizer RampD China has developed a large collaborative research network covering basic research institutes contract research or-ganizations and smaller biotech and pharmaceutical firms Pfizerlsquos China Research and Development Center a state-of-the-art facility that provides global drug development support capabilities research collaborations and strategic alliance opportunities to China and the Asian region is based in Shanghai It is the largest RampD center for a multinational pharmaceutical company in China The Center works alongside Chinese partners to develop the skills and talents of local scientists biostatisticians medical professionals pharmacists and others with expertise in life sciences The Center collabo-rates with leading academic researchers and top institutes in China including Peking University Tsinghua University Shanghai Jiaotong University and multiple institutes of the Chinese Academy of Sciences (Pfizer 2009) Pfizer signed a deal in July 2009 with the Shanghai Institute of Biological Sciences (Sibs) As part of this deal Pfizer will provide US$500000 each year for three years to fund early stage joint research in life sciences and new drug development between Sibs scientists and Pfizer scientists Scientists in basic research institutes learn drug development skills from industry collabo-

rators while Pfizer scientists learn from and gain access to ideas of the aca-demics Though the funding is small the joint research is supported by Pfizerlsquos global resources For example proposals are revised to become more feasible and workable The researchers also receive assistance on intel-lectual property managementmdashhence the attraction of the programme for Chinese life scientists (Jia 2010) ―Our choice of Shanghai Institutes for Biological Sciences as a research part-ner demonstrates our high regard for the scientific expertise and capabilities of SIBS said Martin Mackay President Pfizer Global Research and Devel-opment ―China is increasingly seen as a source for innovative healthcare research and we are proud of our ongoing investment in the outstanding science and people here Research projects will be selected and developed jointly by Pfizer and SIBS scientists (Pfizer 2009) In parallel Pfizer has made a significant commitment to South Korean re-searchers The company signed a memorandum of understanding with the countrys Ministry of Health and Welfare in 2007 agreeing to invest $300 million in RampD in the country At this time Pfizer formed a strategic re-search partnership with the Korea Research Institute of Bioscience and Biotechnology (Ray 2010) Pfizer and the Korea Research Institute for Bioscience and Biotechnology (KRIBB) expanded the earlier agreement in May of 2010 to jointly develop drugs for liver and gastric cancer and to in-vest a total of KRW 300 billion (U$240 million) from 2008 to 2012 (Moffat 2010) Continuing its focus on pharmacogenomics Pfizer also recently formed a research partnership with Samsung Medical Centre in Seoul for the analysis of Korean liver cancer patients in order to generate gene expression profiles for the condition (Adams 2010) Choi Han-Yong president of Samsung Medical Centre said ―We are pleased to have an opportunity to work with the worldlsquos number one phar-maceutical company Pfizer to better understand cancer in Korean patients with the goal of being able to send a new message of hope for patients with liver cancer across the world especially in Asia (Adams 2010) Centers for Therapeutic Innovation (CTI) Pfizer recently announced the formation of a network of academic collabo-rators to accelerate the translation of basic science into biologics-based drugs According to Mikael Dolsten MD PhD president of Pfizer Worldwide Research amp Development the Centers represents a novel open innovation paradigm combining the competencies of top academic research institutions with Pfizerlsquos leading drug development capabilities and research technologies (Pfizer 2010) The Centers for Therapeutic Innovation (CTI) will initially focus on collaborations within the US Pfizer expects to expand into Europe and Asia in 2012 Each Center will be governed by a Joint Steering Committee (JSC) comprised of Pfizer and Academic Medical Cen-ter (AMC) representatives who will provide leadership and evaluate the suc-cess of each program through discovery and early stage clinical develop-ment Through this innovation model Pfizer will have the opportunity to broaden its pipeline with novel candidate drugs to treat diseasesmdashaddressing unmet medical need (Pfizer 2010) A key aspect of the Centers for Therapeutic Innovation is Pfizerlsquos commit-ment to establishing local Centers at each partner site The partnerships will follow a venture capital-funded biotechnology start-up model whereby Pfizer funds preclinical and clinical development programs and offers equi-table intellectual property and ownership rights as well as broad rights to publication When programs are successful and advance according to the terms determined by a joint steering committee Pfizer will grant milestone payments and royalties (Rockefeller University 2011) ―The concept is to make a transition away from the vertically integrated RampD model into smaller decentralized groups of a truly global nature says Pfizerlsquos Anthony Coyle who is heading up the program out of the com-panys Cambridge Massachusetts facilities (Ratner 2011) The CTI will provide the primary investigator (PI) with funding (postdoctoral support) technical support (dedicated Pfizer personnel with expertise in protein sciences and development) and infrastructure (laboratory space libraries robots) (Pfizer 2011) The incentives operating model and goals for participating primary investigators and Pfizer colleagues will be designed to support achieving a positive Proof-of-Mechanism study in humans (PoM) PoM studies are small investigator-led clinical trials that typically involve 10 to 30 human subjects and have defined mechanistic or therapeutic endpoints (Pfizer 2011)

9

Partnerships Reaching Down the Value Chain In 2008 WuXi PharmaTech signed a three year deal with Pfizer Under the new collaboration agreement WuXi PharmaTech in partnership with Pfizer will establish ADME assays to provide in vitro screening services on com-pounds WuXi PharmaTech synthesizes for Pfizer (WuXi 2008) WuXi PharmaTech and Pfizer have previously collaborated on synthetic chemistry parallel medicinal chemistry ADME and bioanalytical services ―This new agreement further strengthens our already productive relationship with Pfizer one of our largest customers for many years and it is the direct result of our research capability and firm commitment to quality and customer sat-isfaction according to Ge Li PhD chairman and CEO of WuXi PharmaTech (GEN News 2008) In 2009 Pfizer and Crown Bioscience Inc (Crown) announced a collabora-tion to research and develop novel therapeutics for Asian cancers Under the terms of this agreement Crown will receive an upfront payment and re-search funding as well as milestone payments based on the achievement of preclinical and clinical goals The companies will work together to discover and advance multiple candidates for clinical development The work will take place at Crownlsquos new research facility located in Taicang (near Shang-hai) China (Pfizer 2009) ―I am delighted to be collaborating with Pfizerlsquos exceptional oncology group says Alex Wu CEO of Crown ―I am also very happy that Pfizer is focusing on and dedicating resources to address a very important unmet medical need for the Asian populations This new collaboration extends an already very successful partnership between Crown and Pfizer and further demonstrates Crownlsquos commitment to becoming an outstanding cancer re-search company in Asia (Pfizer 2009) Reaching out to the bottom of the pyramid MicuRx Pharmaceuticals Inc a biopharmaceutical company (with its presence in San Francisco US and Shanghai China) dedicated to the development of antibiotics to treat drug-resistant bacteria and Cumencor Pharmaceuticals Inc recently announced that the companies have entered a collaboration with Pfizer (NYSE PFE) to discover novel therapeutic agents to treat multi-drug resistant tuberculosis (MDR-TB) Cumencor Pharmaceuticals is a China-based biotechnology company applying MicuRxlsquos proprietary technology platform to discover and develop novel antibiotics for MDR-TB (PR Newswire April 2010) Under the terms of the agreement Pfizer will provide an upfront payment funding for the discovery and preclinical development of novel antibiotics to treat MDR-TB and payments linked to the development and commerciali-zation (including royalty payments on sales) of any antibiotics developed through the collaboration All collaboration research will be conducted at the ZhangJiang High-Tech Park in Shanghai China (PR Newswire April 2010) ―MicuRxlsquos novel approach to developing antibiotics for the treatment of drug-resistant bacteria and their existing technology know-how and exper-tise provide the basis for this collaboration said Steve Yang PhD Vice President and Head of Pfizers Asia Research and Development organiza-tion ―We expect that any compounds resulting from the collaboration will complement our portfolio of anti-infective agents and build our global pres-ence in the emerging pharmaceutical markets of Asia and beyond (PR

Newswire April 2010) Building Intellectual Capital in Asia through Open Innovation Pfizerlsquos open innovation strategy in Asia has a strong capacity development focusmdashnamely the development of intellectual capacity in Asia Beginning with a focus on health issues directly affecting the Asian patient Pfizer is not only devoting its resources to such diseases but through the ACRG will widely share pharmacogenomic information pertaining to lung and gastric cancers Supporting this endeavour are collaborations with the Korea Research Institute for Bioscience and Biotechnology (KRIBB) and the Samsung Medical Centre in Seoul Through its association with the Shanghai Institute of Biological Sciences (Sibs) and the planned Centers of Therapeutic Innovation Pfizer hopes to fund early stage joint discovery and clinical research in life sciences and new drug development Scientists in ba-sic research institutes will learn drug development skills from industry col-laborators while Pfizer scientists learn from and gain access to ideas of the academics Training opportunities in the area of intellectual property man-agement have been equally attractive to scientists Knowledge sharing knowledge development and exchange should support a vibrant life sciences sector in emerging markets in Asiamdashwith the goals of addressing chronic and neglected diseases that are endemic to Asia (Figure 1) References 1 Adams B Pfizer form liver cancer research partnership in Korea InPharm

July 2010 2 Jia H Though the funding is small the joint research is supported by

Pfizerlsquos global resources Chemistry World October-December 2010 3 MicuRx Pharmaceuticals and Cumencor Pharmaceuticals Partner with Pfizer

to Discover and Develop Antibiotics for Drug-Resistant Tuberculosis in China PR Newswire April 2010

4 Moffat B Global pharma eyeing Korean acquisitions as nation becomes test-bed Private Equity Korea May 2010

5 Pfizer And Crown Bioscience Announce A Collaboration To Research And Develop New Treatments For Asian Cancers Pfizer 2009 Pfizer Announces Partnership With Shanghai Institutes For Biological Sci-ences For Drug Discovery Activities BusinessWire July 2009

6 Pfizer Employs WuXi PharmaTech for In Vitro ADME Services GEN News November 2008

7 Pfizer Global Opportunities Annual Review 2010 8 Pfizer Launches Global Centers for Therapeutic Innovation a Network of

Research Partnerships With University of California San Francisco Pfizer November 2010

9 Publicly Available Genomic Database of Profiled Tumor Samples to Provide a Resource for Biomedical Researchers Worldwide Lillycom February 2010

10 Ratner M 2011 Pfizer reaches out to academiamdashagain Nature Biotechnol-ogy 29 3-4

11 Ray T PfizerSamsung Collaboration to Focus on PGx Strategies to Per-sonalize Liver Cancer Treatments in Korea Pharmacogenomics Reporter July 2010

12 Rockefeller joins Pfizerlsquos Global Centers For Therapeutic Innovation The Rockefeller University April 2011

13 WuXi PharmaTech Signs New Collaboration Agreement With Pfizer WuXi AppTec November 2008

14 wwwpfizercom 2011

Figure 1 A Broad Asian Open Innovation Strategy at Pfizer

Pfizerrsquos Open Source Strategy

Asian Cancer Research Group Inc (ACRG)

Reaching Down the Value Chain Alliance with WuXi

PharmaTech Alliance with Crown

Biosciences Alliance with MicuRx Pharmaceuticals

and Cumencor Pharmaceuticals

Ties to AcademiamdashIntellectual Capital Development

China Research and Development Center

Sibs Alliance KRIBB Alliance

Samsung Medical Centre Alliance CTI

10

11

A Networked Open Innovation Strategy The SpringFire Laboratory Network Technological complexities and market pressures have increased the degree to which companies are outsourcing to highly specialized technology driven companies However conventional outsourcing on a project-by-project ba-sis is strategically insufficient in this era A new type of structure-the virtual or networked outsourcing company provides access to customized solutions and is focused on long-term strategic partnering The formation of this new networked outsourcing company structure is driven by the need to access a broad range of expertise and the shift from narrowly focused specialized outsourcing companies to ―all inclusive outsourcing companies The virtual company is much more agile responsive to paradigm shifts and regulatory changes Accessible expertise can cover drug discovery from the earliest stage of lead compound identification and development through preclinical clinical phases manufacturing global registration post-marketing and line-extension studies The virtual outsourcing company enables access to a multidisciplinary team where the appropriate skill sets and expertise can be available at each stage of the biopharmaceutical value chain Appropriate teams are quickly assem-bled to manage issues as they arise In contrast large vertically integrated outsourcing companies can face many of the same problems associated with the fully integrated biopharmaceutical company including integration coor-dination and communication problems For each team the most suitable individuals from the most appropriate outsourcing firms within the network are selected on the basis of skills experience and fit with the project or product goals client and other individuals on the team Virtual outsourcing companies manage the various contracts budgets and relationships for their clients Lower project risk exists as dependency on a single supplier relation-ship is removed A virtual company must add value and not act simply as an intermediary be-tween contractors and large companies To operate successfully within the virtual environment requires strong industrial and academic networks effec-tive project management skills highly developed intellectual property man-agement skills and the ability to bring together partners to enable drug devel-opment Teams of experienced suppliers and experts are tailored to fulfill project or product requirements and are led by a dedicated senior project manager to ensure knowledge coordination and integration Forming the right partnerships and teams as well as managing operational processes in-crease the effectiveness of RampD outsourcing and ensure that the associated cost time and risk-sharing benefits are enjoyed by the Sponsor Models at Work The SpringFire Laboratory Network SpringFire Laboratory Network is a firm with the goal to match pharmaceu-tical medical device and biotech companies with clinical laboratories to pro-vide clinical trial testing solutions SpringFire Laboratory Network is unique in representing a network of independent non-competing high complexity laboratories collectively providing testing offerings to the clinical trial mar-ketplace The founders discovered that there was a strong desire by Sponsors and CROs to have choices in laboratories other than large laboratory companies with rigid requirements and little flexibility or educational institutions that were expensive and less responsive to external clients However there was little incentive for independent laboratories to pursue clinical trials testing given the large upfront costs to start a business development effort and the significantly different and lengthy sales cycle in clinical trials In an attempt to bridge the gap between the strong need for laboratory choices and the reluctance of independent laboratories to shoulder the bur-dens of clinical trials initiatives SpringFire Laboratory Network was estab-lished The network includes hand-selected independent laboratories to pro-vide testing services to clinical trial Sponsors and CROs The SpringFire team provides business development services for the network laboratories as well as expert knowledge around project management and clinical trial-specific operations The laboratories are non-competing and as such they share costs and best practices with one another without competing for the work ―The clinical trial marketplace has a need for esoteric laboratories to respond to its ever-expanding requests states Jim McClintic Managing Partner of SpringFire Laboratory Network

Selecting and Matching Network Participants SpringFire Laboratory Network is committed to a successful outcome for each drug or device development project The network of laboratories is made up of hand-selected ―Centers of Excellence The affiliated laborato-ries provide solutions in sub-specialized anatomical pathology and highly specialized clinical diagnostic testing along with state of the science micro-array testing SpringFirelsquos core team works with all affiliated laboratories to ensure their internal operations meet or exceed the unique regulatory and data manage-ment needs of clinical trials Each laboratory has demonstrated their abilities to provide customized quality results for clinical investigations on an inter-national basis The SpringFire affiliated laboratories are highly regarded in their specialized areas of testing expertise Each affiliate laboratory is evalu-ated to determine their fitness for work in the clinical trials arena A variety of characteristics are considered during a 2-day on site assessment including

Past clinical trial experience Quality laboratory processes Scientific and medical leadership Platform and technology maturity Project management Storage space options Data management capabilities Commitment to providing quality testing to clinical trials Sponsors

or CROs Since most of the laboratories are non-competing the matching process is usually based on the services requested and which lab provides those ser-vices In the event that more than one laboratory provides the requested tests or services SpringFire works with the laboratory that provides the most comprehensive set of tests or services In the event that no single lab performs all of the testing SpringFire will facilitate for two or more of the network laboratories to work together on a study Current Members of the Network SpringFire Laboratory Networklsquos current member laboratories are based in North America The Network provides testing services for both domestic and international study sites and is open to working with laboratories and sponsors around the globe Current members include

With a combined menu of more than 1000 specialty tests SpringFire offers Sponsors and CROs expertise and testing services in numerous therapeutic areas including anatomical pathology coagulation advanced lipids molecu-lar genetics and womenlsquos health The SpringFire network of laboratories col-lectively represent over 90 years of experience in the clinical marketplace while successfully completing more than 250 clinical trials Governance of the Network The SpringFire team is much more than business development The team works closely with each laboratory before during and after the study From the start the team works with each laboratory to build a competitive and timely proposal With the awarding of a contract the SpringFire team re-views and assists with negotiations and contract development During the study start-up phase the team facilitates on-going communications and lo-gistics to ensure the effective completion of tasks including routinely follow-ing up with both the laboratory and Sponsor or CRO to ensure good com-munication and suitable quality laboratory services When the study is con-cluded all parties are provided with a summary and an opportunity to share their experiences thoughts and ideas on the study and the laboratory ser-vices (Figure 1)

Laboratory Specialization

D-Path Dermatopathology

GI Pathology Gastrointestinal and liver pathology

ITxM Diagnostics Coagulation testing

Atherotech Diagnostics Advanced lipids

Baylor College of Medicinersquos Molecular Genetics Laboratories

Pharmacogenomics cytogenetics and medical genetic diagnostics

Baylor College of Medicinersquos Cancer Genetics Laboratory

Cancer-related genetics testing

12

Figure 1 Interactions in the SpringFire Laboratory Network Knowledge management is vital both to the effective working of the project team but also to the efficient transfer of information to and from the Sponsor as well as to external audiences such as site investigators regulatory authorities and potential licensees Outsourcing multiple stages of the drug product life cycle is critical for those companies that require access to expertise and technology in a rapidly chang-ing paradigm without the risk and cost associated with internal development Both young and small biotechnology companies and large traditional phar-maceutical companies can benefit from the model of drug discovery and development offered by organizations such as the SpringFire Laboratory Network

SPRINGFIRE

CORE TEAMPartner Selection

Best Practice Sharing

Baylor College of

Medicines

Cancer Genetics

Laboratory

GI Pathology

D-Path

ITxM Diagnostics

Baylor College of

Medicines

Molecular Genetics

Laboratories

Atherotech

Diagnostics

SPONSORCRO

PARTNER

MATCHING

GOVERNANCE

LESSON

KNOWLEDGE

TRANSFER

UPCOMING BIO PARTNERSHIPS ASIA 2012 CALENDAR

EDITORIAL

TRENDS AND ANALYSIS Articles that run 1500-2000 words and explore trends across the value chain describe opportunities in emerging Asian markets outline policy changes enabling partnerships in these markets and discuss the management of such partnerships

CASE STUDIES Company case studies that run 500-1000 words and explore partnerships across the drug discovery and development value chain

Submit text and electronic images with a resolution of 300 dpi or better We cannot guarantee placement in a particular issue The staff may schedule an entry to coincide with a certain issues editorial theme

COMPANY PROFILES Service provider profiles Send the following information Company name

contact information description services offered markets served and partnerships sought Also send a company logo

TECHNOLOGY PROFILES Technology licensing opportunities Send the following information Technology background areas of application competitive advantages stage of development intellectual property status partnerships sought and contact

information Please forward an image if applicable

NEWS RELEASES Updates on deals partnerships opportunities Send a press release and a company logo

MONTH FEATURE STORIES TRENDS AND ANALYSIS

CASE STUDIES

February 2012 New Models of Open Innovation in Asia

Business Model Analysis

Company Profiles

May 2012 Cluster Formation and Participation in Asia

Case Analysis Cluster Profiles

August 2012 Partnerships and Biopharmaceutical Capacity

Development in Asia

Case Analysis Company Profiles

November 2012 Transferring the Lessons from Asia to the Bottom of

the Pyramid

Lessons from India China Singapore

Middle East

Company Profiles

13

14

15

Convergence Innovation Development at the Intersection of Disciplines Organizations and Products Convergence Innovation is the paradigm where discovery and technology creation occur at the intersection of multiple disciplines and organizations Specifically convergence between the chemical biological cognitive physi-cal and information sciences is evident Firms and researchers will cross the boundaries between these disciplines to create technological value--finding solutions to address health environmental and energy challenges In parallel will be emergence of new models of collaboration to enable knowledge crea-tion and knowledge dissemination Central to Convergence Innovation will be a determination of the common value of knowledge versus the private value of knowledge across the associated disciplinesmdashwith the goal of ad-vancing and commercializing technology Levels of Convergence Convergence can be considered at three levelsmdashnamely convergence in the sources of knowledge for research convergence in organizational forms to enable technology development and convergence at the product level with the embodiment of knowledge in complementary products For example while nanotechnology research has been shown to have a dominant focus on material sciences additional analysis has demonstrated that nano-based research increasingly draws its knowledge from other areas (Porter and Youtie 2009) Specifically Porter and Youtie (2009) reveal that while nano-based publications center on materials science (including chemistry and physics) nano-based research also significantly involves many other fields including biomedical sciences computer sciences and mathematical sci-ences environmental sciences and engineering Citation patterns further show extensive referencing across macro-disciplinesmdashwith a preponderance of references in nano-related articles to research outside the macro-discipline in which the article is published (Porter and Youtie 2009) Conse-quently at this level of convergence the sharing and absorption of research across the involved disciplines will be necessary for downstream value crea-tion (Figure 1) Figure 1 Convergence at the Disciplinary (Knowledge Sources) Level At the next level of convergencemdashthe organizational levelmdashthe interaction between technological convergence and models of open innovation is be-coming apparent Licensing mergers acquisitions and strategic alliances such as joint ventures as well as new structures such as innovation networks and open innovation communities represent alternative strategies that may be used to acquire or access the necessary knowledge or assets for discovery and development From a convergence perspective the opportunity exists for a (public or private) stakeholder to not only interact with other (public andor private sector) stakeholders through simple one-to-one traditional collaborations but with many stakeholders through more complex mecha-nisms such as consortia crowdsourcing and other such open innovation communities For example the need for shared scientific expertise and large scale infrastructure in both nanotechnology and biotechnology is thought to be responsible for the development of networks spanning both fields (Figure 2) The pervasiveness of enabling technologies such as information and communications technology (ICT) have encouraged innovation net-works to increase in dominance and have lead to the blurring of organiza-tional boundaries among research organizations (Powell Koput and Smith-Doerr 1996 Roijakkers and Hagedoorn 2006) In such collaborations the opportunity to assume multiple roles exists to enable RampD including the collaborator who shares knowledge with one or many partners for the pur-poses of discovery or development the incubator who provides funding or expertise to other stakeholders to support venture development the enabler

who provides access to tools equipment large scale infrastructure or other services to support product development and the orchestrator who manages the network of partners with either the objective of knowledge creation or knowledge application (Melese Lin Chang and Cohen 2009) At this level of convergence there is the critical need to closely examine the management processes associated with collaboration as the collaborative strategies have not only grown in relevance but also in terms of impact and the number of participants involved

Collaboration Model

Access

Simple (One to One) Complex (Many to Many)

Collaboration Complexity

Figure 2 Convergence at the Organizational Level Open Access=Participation Open Closed Access=Exclusive Partnership

Simple=One to One Link between Partners Complex=Many Links between Several Partners PPP=Public Private Partnership JV=Joint Venture

The location in the above grid determines the extent to which the collabora-tion is open or closed and between one few or many partners

Finally the outcomes from any collaborative interaction will increasingly lead to convergence at the product level In this case multiple components or products will be packaged together to enhance the value over individual product offerings (Figure 3) Such bundled products will have the goal of simultaneously meeting several technological needs be it for biomedical treatment as seen in the use of nano-based diagnostics paired with therapeutics in agriculture or environmental applications as seen in the use of sensors to measure pathogens in food and the environment or the use of nanospheres to selectively detect harmful materials in water and then used for detoxification and in the creation of novel energy technologies as seen in the use of catalysts in particles for biodiesel synthesis to name a few (Schmidt 2007) At the product level effective intellectual property man-agement strategies and coordination between regulatory agencies will be paramount

Figure 3 Convergence at the Product Level

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

COGNITIVE

PPP JV

MampA

Consortium Innovation Network

Crowdsourcing Open Source Network

Licensing

Proprietary Open Innovation Community

Closed

Open

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

Nanomaterials

Nanodevices

Nanoelectronics

Nanosensors

Bioinformatics

Biosensors

Tissue Engineering

Drug Delivery

Diagnostics

Drug Delivery

Chemical Catalysis

Nanofiltration

Chemical Sensors

Neuron Network

Prostheses GenerationCOGNITIVE

16

The Impact of Convergence At each level of convergence there are several complexities that either im-pact the management of stakeholder interaction or the management of the knowledge based assets generated through such interactions For example given the expected intersection between disciplines knowledge complexities including varied types (such as biological information and biological struc-tures chemical knowledge and structures physical knowledge and struc-tures) and forms of knowledge (disembodied and embodied) will drive the need for a common platform for knowledge integration validation and standardization Beyond integration of knowledge it is expected that teams of biological chemical and physical scientists will increasingly form to de-velop and bridge together the necessary tools and equipment for RampD ac-tivities (Ideker Galitski and Hood 2001 Kitano 2001 Kautt Walsh and Bittner 2007 Boardman 2008 Boardman and Ponomarioy 2009) We must also consider the impact of convergence on the downstream rights to de-velop products Lemley (2005) discusses that unlike other industries in which patentees are actual or potential participants in the downstream mar-ket a significant number of corporate patentees will increasingly own rights not just in the industry in which they participate but other industries as well Analysts fear that over-patenting alongside the large shadow of such patents could not only fragment technology but could discourage stakeholders in a number of industries from attempting to develop products incorporating infringing technologies (Lemley 2005) It is important to consider that as multiple disciplines increasingly working together each discipline will have its own priorities and conventions regarding knowledge dissemination and knowledge appropriation (Hilgartner 1996) One discipline may signal its success during knowledge generation through the enclosure and the sale of disembodied knowledge Another discipline may measure its success exclu-sively by the embodiment of knowledge in medical products (Hilgartner 1996) While patent pools are a suggested solution to the possible patent holdups (DlsquoSilva 2009) it has been proposed that as has occurred in the genomics arena innovation-based networks with rules regulating the devel-opment and appropriation of critical technology building blocks could not only circumvent the product development and legal problems of the past but will also bring together the requisite intellectual and physical capital (DlsquoSilva 2009 Allarakhia and Walsh 2010) A Template for Managing Interactions and Knowledge-Based Assets Governance strategies must seek to align the incentives for participation in collaborative activities for multiple stakeholders The use of rules to define actions communication mechanisms used to enable and monitor actions and to share the outcomes are all critical to ensure that goals are achieved Structure and Roles It is expected that the chosen collaboration modemdashone to one one to many or many to many collaboration and objectives set for the collaborationmdashpooling of assets generation of new assets andor pol-icy creation will impact the type of participants that will join The organiza-tional structure chosen will be determined in part by the attributes of the resources to be contributed or developedmdashinformation supporting tools technology as well as the location of participantsmdashwith linkages established through physical clustering or virtual networking Thereafter the organiza-tion of participants may be a function of technological expertise geographic location or project-based management expertise Resource Types and Outcomes Participants will contribute several inputs including funding equipment and human capital The resulting outcomes include data materials tools and technology Facilities store artifacts in or-der to make them accessible Traditional facilities have been libraries and archives containing books journals and papers New technologies have made electronic distributed information possible Artifacts are discreet ob-servable nameable representations of ideas such as articles research notes books databases maps computer files and web pages (Foray 2004 Hess and Ostrom 2006) In the context of nanotechnology databases material and model repositories accessible laboratories that aggregate equipment and tools for nanotechnology development are varied options to manage the outputs Hence any outcomes analysis should seek to determine the success of collaboration including the amount of data produced and accessed the material generated housed and accessed the tools created and used and the technology produced by participants Governance Internal rules or mechanisms used to promote cooperative be-haviour can include formalizing the requirements to join the initiative en-suring frequent interactions encouraging communication between partici-pants monitoring and punishing defection and setting the boundary for access to resources An authority that regulates access to resources can en-sure that a fair and efficient governance strategy is used (Ostrom Gardner and Walker 1994) While access generally refers to disembodied assets such

as data extraction can involve the removal andor use of physical materials models and tools Knowledge use and access can be governed by the fol-lowing rules sharing with partners only (closed access) sharing with part-ners and the public at large (open access) and intellectual property assign-ment potentially on information materials tools and technology with the specification of rights to use based on licensee type geography or target market for product launch Creating Value The Path Forward in The path forward will require the creation of supporting policies encourag-ing multi-disciplinary collaboration At a national level several governments have recognized the importance of innovation networks to develop capacity and compete on an international level Consequently policies are now pro-viding more RampD funding and incentives encouraging the formation of multi-sectoral networks (Corley Boardman and Bozeman 2006) New prod-ucts of convergent technologies will necessitate cooperation among regula-tory bodies with the coordination of information flow coordination of du-ties and increased harmonization between international regulatory bodies (Castle et al 2006 Drezek and Tour 2010) To avoid the mistakes of the past policies outlining guidelines for the management of intellectual prop-erty rights can ensure that stakeholders will correctly assess the common value of knowledge versus the private value of knowledgemdashresulting in the transition from open knowledge to appropriated knowledge with the objec-tive of pursuing (unilateral or collaborative) downstream product develop-ment References 1) Allarakhia M amp Walsh S Managing knowledge assets under conditions of radical change The case of the pharmaceutical industry Technovation 31 105-117 (2011) 2) Boardman P Beyond the stars The impact of affiliation with university biotechnology centers on the industrial involvement of university scientists Technovation 28 291-297 (2008) 3) Boardman Pamp Ponomarioy B University researchers working with pri-vate companies Technovation 29 142-153 (2009) 4) Castle D Loeppky R Saner M Cline C Dalgleish J amp Wojnik V Convergence in Biotechnology Innovation Case Studies and Implications for Regulation (University of Guelph Guelph 2006) 5) Corley EA Boardman PC amp Bozeman B Design and the manage-ment of multi-institutional research collaborations Theoretical implications from two case studies Research Policy 35 975-993 (2006) 6) Drezek RA amp Tour JM Is Nanotechnology Too Broad to Practice Nature Nanotechnology 5 168-169 (2010) 7) DlsquoSilva J Pools thickets and open source nanotechnology European Intellectual Property Review 31 300-306 (2009) 8) Foray D The Economics of Knowledge (MIT Press Cambridge 2004) 9) Hess C amp Ostrom E Understanding Knowledge as a Commons From Theory to Practice (MIT Press Cambridge 2006) 10) Ideker TT Galitski L amp Hood LE A new approach to decoding life Systems biology Annual Review Genomics and Human Genetics 2 343-372 (2001) 11) Kautt M Walsh S amp Bittner K Global distribution of microndashnano technology and fabrication centers A portfolio analysis approach Technol-ogy Forecasting and Social Change 74 1697-1717 (2007) 12) Kitano H Systems biology Toward systems-level understanding of bio-logical systems Foundation of Systems Biology 1-29 (MIT Press Cam-bridge 2001) 13) Lemley MA Patenting nanotechnology Stanford Law Review 58 601-630 (2005) 14) Melese T Lin SM Chang JL amp Cohen NH Open innovation net-works between academia and industry an imperative for breakthrough therapies Nature Medicine 15 502-507 (2009) 15) Ostrom E Gardner R amp Walker J Rules Games and Common-Pool Resources (The University of Michigan Press Ann Arbor 1994) 16) Porter AL amp Youtie J How interdisciplinary is nanotechnology Jour-nal of Nanoparticle Research 11 1023-1041 (2009) 17) Powell WW Koput KK amp Smith-Doerr L Inter-organizational col-laboration and the locus of innovation Network of learning in biotechnol-ogy Administrative Science Quarterly 41 116-145 (1996) 18) Roijakkers N amp Hagedoorn Inter-firm RampD partnering in pharmaceu-tical biotechnology since 1975 Trends patterns and networks J Research

Policy 35 431minus446 (2006) 19) Schmidt K Project on Emerging Nanotechnologies (2007)

17

18

Beyond Cost-Savings Hidden Considerations for Conducting Clinical Trials in Asia

By Jessica Liu General Manager ChinaNorth Asia INC Research and Garth Tierney Regional General Manager Australia and South East Asia INC Research

Abstract Pharmaceutical industry sponsors are well-aware of the cost bene-fits of conducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the pri-mary criteria by which sponsors should select the Asian regions in which they will conduct their clinical trials Other important considerations include disease incidence treatment standards minimizing variability maximizing protocol adherence regulatory factors politics cultural considerations and ethical concerns While global spending on medicines is expected to grow three percent to five percent over the next five years spending in the ―pharmerging markets is expected to double1 The desire to access this fast-growing consumer base is the primary reason large pharmaceutical companies are increasing their clinical presence in emerging countries like China according to a report from investment bank-ing firm William Blair2 But small to midsize drug makers are also moving into emerging markets driven primarily by cost differentials China can offer as much as a 50 percent cost advantage compared to the United States or Europe as can Thailand the Philippines or Malaysia Most countries in Asia are at least 20 percent to 30 percent more cost-efficient than their western counterparts although there are notable exceptions such as South Korea and Japan Pharmaceutical industry sponsors are well-aware of the cost benefits of con-ducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the primary criteria by which sponsors should select the Asian regions in which they will con-duct their clinical trials Other important considerations for conducting a trial in Asia include disease incidence and treatment standards the potential to minimize variability and maximize protocol adherence regulatory and political factors and cultural and ethical considerations Disease Incidence and Treatment Standards With more than four billion people Asia offers sponsors a deep pool from which to draw clinical trial participants Indeed for sponsors conducting late-stage clinical trials in indications such as diabetes or cardiovascular dis-ease which can require thousands of patients establishing Asian trial sites to tap into that pool is critical The key is determining which Asian countries will best match each triallsquos unique patient requirements For sponsors most concerned with enrolling large numbers of patients into a trial highly populous countries such as India China Indonesia Japan the Philippines Thailand and Malaysia may be the best fit A recent CRO survey revealed that China is the leader in patient recruitment for the Asia-Pacific region followed by India and South Korea3 However sponsors need to be aware that the region is still expanding and a vast population does not equate to vast number of ICH GCP trained sites in the larger countries of China and India This can be a limiting factor in gaining access to the best sites for certain indications If on the other hand a sponsor is conducting a Phase I trial they should know that certain Asian countries have specific regulatory requirements for approval of a clinical trial application (CTA) that can add complexity to the process Others like Australia specialize in Phase I studies thanks to their fast and straightforward approval processes high-quality clinical practices and variety of many academic and commercial clinical trials centers4 Selecting an appropriate region for trial sites also depends on the incidence of the target disease in each countrylsquos population Highly-developed Asian countries have a higher incidence of diseases common in the West such as diabetes and cardiovascular disease while diseases such as tuberculosis are more common in Southeast Asia Some countries like India have diverse patient populations afflicted with diseases of both the developing and devel-oped world

When it comes to standards of care certain diseases like breast cancer lung cancer and diabetes are treated in much the same way in Asia as they would be treated in the Western world But for many other indications medical practice standards differ both from East to West and between the different Asian regions Sponsors seeking to meet specific market regulatory approval will need to mirror Western standards-of-care and as such should consider focusing trial sites to Australia New Zealand Singapore Taiwan Hong Kong and South Korea But differing standards of care can also provide unique opportunities Asia offers relatively more patients for first-line and second-line cancer drug evaluation than the West where such patient stores have been largely exhausted Risk Mitigation Sponsors should be prepared that some Asian trial sites ndash even those that have adapted Western-style medical practices ndash may require more assistance when it comes to following protocol and differentiating between medical practice and clinical research Not all Asian sites will have the infrastructure for a clinical trial A good CRO partner will work with a sponsor and site investigators to identify any infrastructure gap ndash such as a dedicated com-puter fax or freezer ndash and develop plans to ensure sites have the essentials to deliver a study efficiently Data integrity is another area that sponsors and CROs need to focus atten-tion It is critical to reduce variability by ensuring all monitoring and site staff are well trained Monitors need to understand how to identify and pro-actively resolve issues early on to minimize long-term issues with patient recruitment and data collection They should understand how to recognize early warning signals and not overreact to red herrings Investigators and site monitors also need to be trained in adverse event reporting to ensure that they meet local regional and global clinical trial safety reporting Sponsors must ensure monitoring visits are being conducted regularly as such visits make it more likely that recruitment and data integrity issues will be detected early and managed in a timely and effective manner Equally im-portant site staff needs to be as consistent as possible Finally sponsors need to implement a proven system for data reporting as variability in the data collection process may decrease the evaluable patient pool in the trial decreasing the sponsorlsquos chances to establish statistical sig-nificance or detect a rare safety signal Regulatory and Political Factors While regulatory bodies in South Korea and Taiwan as well as in Singapore have adopted an FDA-based approach each Asian country has its own regulatory idiosyncrasies In China for example reviews take on a project-based nature and sponsors should never assume that what worked in one application will be directly applicable to another No matter how harmo-nized Asia may appear the cookie-cutter approach simply doesnlsquot work However the fact that regulatory policies are still evolving in certain Asian countries provides a unique opportunity to sponsors the opportunity to in-fluence those policies There are no formal guidances or rules covering this topic but it is a real opportunity The recent economic downturn has prompted finance ministers in many countries to more closely analyze the cost of healthcare and they are realizing that good drugs can decrease their overall costs To ensure new drugs are available in their countries they have become increasingly eager to support clinical trials and they are engaging in conversations with sponsors about how approval pathways might be con-structed that take healthcare economics into consideration For example if a sponsor works closely with regulatory agencies to design the right preclinical and Phase I trials could a single Phase IIIII trial be sufficient for approval in some indications Are so many repetitive studies really necessary Is the requirement or guidance relevant to the current technology If a sponsor can prove to the government that a certain disease is currently costing 50 cents per person per day to treat and a new drug would change treatment paradigms and reduce that cost to a penny that is a compelling argument Not compelling enough to compromise safety or effi-cacy but compelling enough to expedite things along by partnering to agree upon the most appropriate pathway to approval While some regulatory agencies may not be as comfortable with the idea of allowing more flexibility and customization in the clinical trial design many are open to reducing bu-reaucracy and the associated time delays for CTA approval ndash particularly when there is potential to significantly impact health economics Govern-ments may provide commercialization support including funding to enable

19

development of new technologies and testing methods There may also be a higher priority given to certain CTA applications in the review queue Australia and Singapore have adopted a more simplified regulatory process and offer a notification scheme rather than formal review by the regulator South Korea and Taiwan are working to ease regulations and facilitate pro-tocol reviews Countries such as China have lengthy regulatory approval processes however there are some early indications that this may be de-creasing India is currently experiencing slower regulatory paths Interest-ingly some Asia Pacific countries that have historically been considered ―easy targets for clinical trials are increasing their regulations While there is much potential to collaborate with regulatory bodies in Asia these are not the only government agencies with which a sponsor must work Each country has its own policies on insurance regulations import licenses and other factors that affect a sponsorlsquos ability to establish and run clinical trial sites Each should be reviewed before selecting countries in which to establish trial sites Cultural and Ethical Considerations Language barriers can be easily overcome by CRO partners with offices across Asia and they are the least of a sponsorlsquos worries when it comes to cultural differences More pressing are issues such as the fact that some Asian researchers may believe that their participation in a trial gives them the right to publish data on their findings while sponsors require at least some degree of control over the publication of trial data Such issues are best managed by thorough communication prior to the start of enrolment In certain countries cultural factors may positively impact a trial Ethical factors may also weigh on a sponsorlsquos decision to conduct trials in certain Asian countries There are certain diseases that present a serious unmet medical need specifically within Asian populations such as foot-and-mouth disease and such indications obviously lend themselves to Asian clinical tri-als Yet if a sponsor has no plans to launch a drug in certain Asian countries perhaps because the populations of those countries would not be able to afford the drug then conducting clinical research in those countries may present ethical challenges For the most part however sponsors are eager to launch their drugs into the rapidly growing Asian healthcare markets and Asian clinical trials are necessary to support this endeavour As mentioned initially the cost advan-tages of conducting clinical trials in Asia cannot be ignored as both large and small companies face pressures on their bottom lines But while costs are important they are not the only consideration About the Authors Jessica Liu MD is the general manager for Clinical Operations in China and North Asia at INC Research She previously managed international pro-jects out of the European headquarters office for a global CRO in Brussels Belgium Prior to that she worked for 15 years in the Chinese affiliates of several global pharmaceutical companies overseeing clinical operations pro-ject management and medical affairs She conducted and managed Phase I-IV clinical studies across multiple therapeutic areas Dr Liu started her ca-reer as a resident physician in the endocrinology Department of the Peking Union Medical College Hospital (PUMCH) in Beijing China She received her Medical Doctorate from the University of Beijing (China) and has a Di-ploma in Pharmaceutical Medicine from the University of Basel (Switzerland) Dr Liu is based in Beijing She can be reached at jialiuincresearchcom Garth Tierney is the regional general manager for Australia and South East Asia for INC Research Garth previously founded and managed Trident Clinical Research a CRO based throughout Australia New Zealand and In-dia After 14 years of operation Trident was acquired by INC Research in June 2011 Prior to founding and managing Trident Clinical Research Garth worked for 8 years in the clinical research industry in various senior manage-ment and operational management roles across several companies including a global CRO an Australian pharmaceutical company and two global phar-maceutical companies Garth has a pharmacology (University of NSW) and business administration (University of Adelaide) background and worked in hypertension research for several years before joining the pharmaceutical industry During this time Garth published various papers and won the Whelan prize (awarded by ASCEPT) He can be reached at gtierneyincresearchcom

References 1 IMS IMS Institute Forecasts Global Spending on Medicines to Reach

Nearly $11 Trillion by 2015 May 18 2011 2 Wm Blair Pharmaceutical Outsourcing Industry Analysis Jun 10

2010 3 CyberMedia Research-BioSpectrum Asia-Pacific CRO Survey 2011 4 Clinical Trials Action Group Report Commonwealth of Australia

2011 CPTR Yields Progress New Six-Way Agreement has Goal to Speed Development of TB Drug Combinations November 11 2011 The Critical Path to TB Drug Regimens (CPTR) announced this November an innovative agreement between AstraZeneca Bayer Sanofi Tibotec TB Alliance and the World Health Organization to share information on tuber-culosis (TB) compounds within their respective drug pipelines to quickly identify and work together to develop the most promising TB drug regimen regardless of sponsor The partnership facilitates a more collaborative ap-proach to TB drug development with the objective to dramatically speed the development of shorter safer and more effective multi-drug treatments that are urgently needed to control the global TB pandemic The agreement will enable information-sharing around scientific and clinical data on TB compounds in clinical development By sharing data partners can identify opportunities to test their compounds in combination speeding availability of future TB regimens The collaboration includes the majority of global sponsors with TB drugs in clinical development Under the agree-ment if two or more organizations choose to work together to further de-velop a regimen they will enter into a separate arrangement that defines the rights and responsibilities of each party CPTR is working closely with regulatory scientists at the US Food and Drug Administration European Medicines Agency and other regulatory bodies in China India and some countries in Africa to develop the tools that are needed to allow testing of new TB drugs in combination cutting years off the development timeline Under the leadership of the Critical Path Institute CPTRlsquos Regulatory Science Consortium focuses on establishing consensus on preferred standards methods and tools for developing new TB drug regimens and obtaining official acceptance from international regulatory authorities Source TB Alliance Pfizer Establishes the Cambridge Research Center September 01 2011 Pfizer Inc recently announced it has entered into a 10-year lease agreement with the Massachusetts Institute of Technology (MIT) for more than 180000 square feet in a new building under development in Cambridge Massachusetts Located at 610 Main Street South in Kendall Square the new site will be the future location of Pfizerlsquos Cardiovascular Metabolic and En-docrine Disease (CVMED) and Neuroscience Research Units The reloca-tion of the two Research Units will substantially boost Pfizerlsquos footprint in Cambridge making it the second largest biopharmaceutical company in Massachusetts in terms of jobs ―We were very deliberate in our choice to move to Cambridge MA as a key part of our RampD strategy By expanding our presence in one of the worldlsquos great centers of scientific and medical innovation we will provide the best environment for our researchers to invent the next generation of medicines in areas of greatest need such as Alzheimerlsquos disease schizophrenia diabe-tes and cardiovascular disease said Rod MacKenzie senior vice president and head of PharmaTherapeutics Research amp Development ―We intend to foster productive formal and informal collaborations between our drug dis-covery experts and the outstanding scientists of Cambridgelsquos world class institutions This is a very exciting period in Pfizer RampD Source Pfizer

20

21

Continued from page 19hellip UK Academia Given Access to Selected AstraZeneca Compounds December 11 2011 Following a unique landmark agreement between AstraZeneca and the UK Medical Research Council (MRC) a wide range of compounds will be made available to UK medical researchers next year In a new type of collabora-tion academia will be granted access to 22 clinical and preclinical com-pounds developed by AstraZeneca Though making individual compounds available to external academic investigators is not unusual the breadth and open-innovation nature of this collaboration is unique because it provides unprecedented access to well characterised clinical and preclinical candidate molecules to investigators across all UK academic institutions There is significant unmet need in diseases both within and outside Astra-Zenecalsquos current research focus This collaboration builds on the sizable in-vestment made in developing candidate drugs within AstraZeneca by help-ing researchers to explore their potential more broadly with the hope that they will find new future medicines It also helps AstraZeneca explore areas of unmet patient need beyond its current disease area focus leveraging great external science in a way that is highly flexible and cost effective The New Opportunities Innovative Medicines Unit (iMed) in AstraZeneca has been central in establishing this research collaboration with the MRC and has acted as the interface with the other AstraZeneca iMeds to agree which compounds would be eligible Clive Morris VP New Opportunities iMed said that ―This Open Innova-tionlsquo approach brings together the strengths of AstraZeneca the MRC and UK Academia into what I hope will be a really potent mix bringing forward really exciting new ideas that could transform our understanding of some diseases It highlights an openness to new scientific thinking and also places external scientific collaboration right at the heart of what we do It is also an excellent way to broaden our portfolio of activities into new diseases for As-traZeneca leveraging the wealth of expertise across UK academia AstraZeneca and the MRC will invite preclinical and clinical research pro-posals from across the UK academic community to investigate the com-pounds in a range of diseases with a view to finding new treatment oppor-tunities AstraZeneca will work with the academic collaborators to develop the best scientific proposals and the MRC will select the highest quality pro-posals for funding awarding up to pound10 million in total to fund the success-ful proposals The successful applicants will then work collaboratively with AstraZeneca to deliver the studies David Brennan AstraZenecalsquos Chief Executive Officer said ―Innovative collaborations are playing a crucial role in finding ways to unlock the poten-tial of new treatments The UK has a strong heritage of research excellence in life sciences We hope that in sharing these valuable compounds with aca-demic scientists through the MRC new discoveries will be made by explor-ing additional uses of these compounds Source AstraZeneca WIPO ReSearch A Neglected Tropical Diseases Initiative October 26 2011 The World Intellectual Property Organization (WIPO) in an unprecedented collaboration with leading pharmaceutical companies and BIO Ventures for Global Health (BVGH) recently launched the WIPO Re Search a new consortium where public and private sector organizations share valuable in-tellectual property (IP) and expertise with the global health research commu-nity to promote development of new drugs vaccines and diagnostics to treat neglected tropical diseases malaria and tuberculosis In WIPO ReSearch Alnylam Pharmaceuticals AstraZeneca Eisai GlaxoS-mithKline MSD1 Novartis Pfizer and Sanofi are collaborating with WIPO BVGH the US National Institutes of Health (NIH) and multiple non-profit research organizations These include the California Institute of Technology the Center for World Health amp Medicine the Drugs for Ne-glected Diseases initiative Fundaccedilatildeo Oswaldo Cruz (Fiocruz) Massachu-setts Institute of Technology Medicines for Malaria Venture PATH the South African Medical Research Council the Swiss Tropical and Public Health Institute the University of California Berkeley and the University of Dundee (UK)

―WIPO ReSearch is a ground breaking example of how a multi-stakeholder coalition can put IP to work for social benefit said WIPO Director Gen-

eral Francis Gurry ―By joining WIPO ReSearch companies and researchers commit to making selected intellectual property assets available under roy-alty-free licenses to qualified researchers anywhere in the world for research and development on neglected tropical diseases malaria and tuberculosis This commitment should accelerate the development of medicines vaccines and diagnostics for these diseases

According to the World Health Organization (WHO) neglected tropical diseases today impair the lives of an estimated 1 billion people The WHO provides technical advice to WIPO on public health issues and research pri-orities as appropriate

By providing a searchable public database of available intellectual property assets information and resources WIPO ReSearch facilitates new partner-ships with organizations that conduct research on treatments for neglected tropical diseases malaria and tuberculosis

Membership in WIPO ReSearch as a user provider or supporter is open to all organizations that endorse adhere to and support the projectlsquos Guiding Principles These Guiding Principles include the commitment that IP li-censed via WIPO ReSearch will be licensed on a royalty-free basis for re-search and development on neglected tropical diseases in any country and on a royalty-free basis for sale of neglected tropical disease medicines in or to least developed countries

―The innovative pharmaceutical industry has an important part to play in addressing unmet medical needs and increasing access to our collective pro-prietary information will help advance research into treatment options for these underserved diseases said David Brennan CEO of AstraZeneca and President of the International Federation of Pharmaceutical Manufacturers amp Associations (IFPMA) ―WIPO ReSearch has the potential to make a real impact on global health which is why we are proud to make all patents owned by AstraZeneca available to this important initiative for promoting the research and development of treatments for neglected tropical diseases anywhere in the world

The WIPO ReSearch database includes a wide variety of contributions rele-vant to malaria tuberculosis and other neglected tropical diseases including individual compounds and associated data screening hits from compound libraries and expertise and know-how in pharmaceutical research and devel-opment In addition WIPO ReSearch offers the opportunity for neglected tropical disease researchers to work directly with scientists at pharmaceutical companies to advance RampD on these diseases As WIPO ReSearch moves forward offerings from current partners will continue to grow and new pro-viders are expected to join to add to the wealth of information compounds and services available

―NIH licenses its patents to enable the private sector to develop diagnostics therapeutics and devices that improve public health said National Insti-tutes of Health Director Francis S Collins MD PhD ―We want to ensure that our biological materials and patents covering treatments or vaccines for neglected tropical diseases as with all diseases are available as broadly as possible to speed the development of new products for people who are most burdened by these diseases and WIPO ReSearch helps us to do this

The founding eight pharmaceutical companies WIPO BVGH and NIH are joined by a distinguished group of globally recognized institutions as provid-ers potential users and supporters of WIPO ReSearch (see annex) BVGH will manage the WIPO ReSearch Partnership Hub which will facilitate rela-tionships between the pharmaceutical company providers and new users

―In our role as administrator of the WIPO ReSearch Partnership Hub BIO Ventures for Global Health is excited to bring these new opportunities to neglected disease researchers around the world to accelerate their work in this area of critical unmet need said Don Joseph Chief Operating Officer of BVGH ―As both present and future providers evaluate their internal data and IP with the goal to provide focused information which they believe will best serve the neglected tropical disease research and development commu-nity WIPO ReSearch will build on previous RampD investments to speed the development of drugs vaccines and diagnostics for the neglected diseases that disproportionately impact people living in resource-poor countries Source WIPO

Page 2: Bio Outsourcing Asia: Volume 1 Issue 3 2011.pdf · TB drug trials. Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies

2

Bio Partnerships Asiacopy

TABLE OF CONTENTS December 2011

Vol 4 Issue 2 copy CanBiotech Inc

Formats Online Digital and Print

Subscription 25000 Content

Feature Stories Trends and Analysis

Case Studies Technology Profiles Company Profiles

News Events

Access Free

UPCOMING ISSUE

Contact the Editor at

editorcanbiotechcom to participate in this issue

Models of Open Innovation

AstraZenecamdashMaking Partnerships Work for Product Development at the Bottom of the

Pyramid

Page 5

Pfizerrsquos Open Innovation Strategy in Asia

Page 8

A Networked Open Innovation Strategy The SpringFire Laboratory Network

Page 11

Convergence Innovation Development at the

Intersection of Disciplines Organizations and Products

Page 14

Case Analysis INC Research

Beyond Cost-Savings Hidden Considerations for Conducting Clinical Trials in Asia

By Jessica Liu

General Manager ChinaNorth Asia INC Research

And

Garth Tierney

Regional General Manager Australia and South East Asia

INC Research

Page 17

Bio Partnership News

Page 18

3

Emerging Models of Open Innovation in the Bioconvergence Paradigm 2 Day Workshop September 2012 The biopharmaceutical industry faces a crisis in productivity with rapidly rising costs for RampD but declining results To address these challenges in both developed and under-developed markets pre-competitive discovery based consortia programs for open innovation and crowd-sourcing are being employed Progressing beyond the biopharmaceutical industry into the emerging bioconvergence paradigm this training course has the objective of enabling stakeholders to understand emerging mod-els of open innovation in the bioconvergence space-- where the biotechnology pharmaceutical chemical medical devices and di-agnostics nanotechnology and ICT sectors merge The course adopts the nuanced perspectives of knowledge management and learning in open innovation in this paradigm As an additional feature the course will explore opportunities for capacity devel-opment at the bottom of the pyramid through open innovation strategies About BioEndeavor There are several complexities driving open innovation in the life sciences including knowledge complexitiesmdashwith knowledge exhibiting high

complementarity and high applicability across domains technological complexities associated with interdependen-

cies between technologies the need for sophisticated equip-ment as well as the scope and scale of research

and commercialization complexities associated with technol-ogy transfer and product development

BioEndeavor has the objective to understand and develop models of open innovation that have their application in bioconvergence domains By using a network strategy BioEndeavor brings to-gether stakeholders to collectively conduct and share research on open innovation in the life sciences wwwbioendeavornet Contact Information Dr Minna Allarakhia Director BioEndeavor minnabioendeavornet

Workshop Topics Understanding Open Innovation Models

Objective and Open Innovation Model Mapping (Sectoral and Phase Impact) Assessing Participants (Types Viability) Relationship Management Knowledge Management (Access Dissemination IT Infrastructure) Learning Strategies (Learning by DoingLearning by Using) Knowledge Appropriation (IP Management Technological Isolation) Capacity Development-Developed Vs Developing MarketsNeglected Diseases

4

5

AstraZenecamdashMaking Partnerships Work for Product Development at the Bottom of the Pyramid AstraZeneca and other pharmaceutical companies government agencies NGOs donors and academics have joined a collaboration led by the Bill and Melinda Gates Foundation the TB Alliance and the Critical Path Institute to explore funding mechanisms and support for late-stage clinical trials Currently there are nine promising TB compounds from at least six antibiotic classes in development including one compound from Astra-Zeneca AstraZenecalsquos dedicated research facility in Bangalore India is a key component in this initiative The initiative offers a model for other multi-stakeholder partnerships working to improve health at the bottom of the pyramid (AstraZeneca 2011) Promising compounds identified in this col-laboration will also be tested in combination with other therapies as part of the Critical Path to TB Drug Regimensmdasha cross-sector initiative with the objective to speed up the development and delivery of TB drug regimens to patients (AstraZeneca 2010) ―Collaboration is absolutely vital to developing the tools needed to truly revolutionize the way TB is treated and overcome the global TB epidemic said Mel Spigelman MD President and CEO TB Alliance ―AstraZeneca has a well-established TB drug discovery program and is a crucial participant in the Critical Path to New TB Regimens Together our research promises to bring important advances to TB patients in need (AstraZeneca 2010) Les Hughes AstraZenecalsquos Vice President of Infection Discovery said ―AstraZeneca is building a leading franchise in the treatment of infectious diseases both through our own in-house research as well as through col-laborations This collaboration is part of the global partnership that will be needed to conquer the TB epidemic We are excited to be working with the TB Alliance to help move forward the drug discovery program and quickly speed promising candidates into clinical development (AstraZeneca 2010) Augmenting its research in Bangalore AstraZeneca recently joined a consor-tiummdashthe More Medicines for Tuberculosis (MM4TB)mdashto fight TB with French rival Sanofi-aventis the University of Cambridge and other research organizations The MM4TB consortium has the goal of developing new drugs for successful and shorter treatment for TB (Kollewe 2011) The Eacutecole Polytechnique Feacutedeacuterale de Lausanne (EPFL) along with the universi-ties of Pavia in Italy and Uppsala in Sweden are also participants in the con-sortium AstraZeneca is sharing its compounds and expertise Research will be carried out at a London medical school and the John Innes Centre in Norwich as well as in Russia India and South Africa The aim is to have 10 to 20 compounds in the pipeline to develop two or three successful TB drugs that will be given as a cocktail to patients (Kollewe 2011) In parallel AstraZeneca announced its partnership with Medicines for Malaria (MMV) in 2010 Under the terms of the agreement scientists work-ing with MMV will screen 500000 compounds in AstraZenecalsquos unique li-brary for activity against P falciparum the most lethal of malaria parasites (MMV 2010) Tim Wells MMVlsquos Chief Scientific Officer said ―AstraZeneca has had a long standing interest in neglected disease and we are delighted to be able to collaborate with the centre in Bangalore on this exciting project in malariahellip (MMV 2010) The Critical Path to TB Drug Regimes (CPTR) The Critical Path to TB Drug Regimens (CPTR) is a broad collaboration of pharmaceutical companies government regulatory and multilateral agen-cies donors academia advocates and NGOs that aims to accelerate the development of new safe and highly effective tuberculosis (TB) treatment regimens with shorter therapy durations (CPTR 2011) AstraZeneca is among several partners that signed the CPTR Statement of Principles on March 18 2010 The partners have agreed to

Encourage information sharing and collaboration among interna-tional organizations industry and regulatory agencies to innovate and accelerate TB drug development and get important new thera-pies to patients

Promote the development of new regulatory approaches that sup-port innovative research into TB therapeutics evaluate new TB drug combinations safely and effectively and reinforce current guidelines for development of effective drug combinations

Work together using industry best practices to test TB drug can-didates in combination regimens beginning early in the develop-ment process

Create a collaborative coordinating structure to oversee this initia-tive

Explore creative new funding streams for developing novel com-

bination TB therapies Advance efforts to utilize existing clinical trial sites for TB while

also building clinical trial site capacity for late-stage combination TB drug trials

Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies for patients in need

(CPTR 2011) On November 9 2011 the Critical Path to TB Drug Regimens (CPTR) an-nounced an innovative agreement between AstraZeneca Bayer Sanofi Tibotec TB Alliance and the World Health Organization The collaboration will enable information-sharing around scientific and clinical data on TB compounds in clinical development By sharing data it is anticipated that partners can identify opportunities to test their compounds in combination If two or more organizations choose to work together to further develop a regimen they can then enter into a separate arrangement that defines the rights and responsibilities of each party ―This initiative is a further example of industry working together and with others to share knowledge and exper-tise for the benefit of the wider society said David Brennan Chief Execu-tive Officer of AstraZeneca (CPTR Yields Progress 2011) The More Medicines for Tuberculosis (MM4TB) Consortium AstraZeneca is also one of 25 partners from 13 countries in Europe America Asia and Africa to join the More Medicines for Tuberculosis (MM4TB) consortium Members include

The Eacutecole Polytechnique Feacutedeacuterale de Lausanne (EPFL) Pharmaceutical companies AstraZeneca and Sanofi-aventis Diagnostics company Alere Four SMEsmdashVichem Cellworks CDD and Tydock Twelve universities including Uppsala Pavia Cambridge Queen

Marys London Padova Comenius Piemonte Orientale the Basque Country Zaragoza ETH Zurich and Cape Town

Five research institutesmdashInstitute Pasteur in Paris Institut Pasteur of Lille the Bach Institute of Biochemistry the John Innes Centre and the Indian Academy of Sciences

And the Scientific management company SCIPROM (MM4TB 2011) MM4TB evolved from New Medicines for TB (MM4TB) a successful pro-ject which delivered a candidate drug for clinical development two years ahead of schedule Building on this MM4TB will continue the search for new drugs for successful and shorter treatment of TB (AstraZeneca 2011) Brennan urged ministers at the Asian Business Leaders conference in 2010 to work with the pharmaceutical industry to share the risks and costs in de-veloping effective antibiotics and other treatments He stressed the impor-tance of public sector bodies and NGOs teaming up with pharmaceutical groups to tackle the problem of antibiotic resistance Along with Novartis and Merck AstraZeneca is one of few companies that are investing in the area (Kollewe 2010) Development research will be done primarily in coun-tries with high rates of infection and AstraZeneca will collaborate with exter-nal partners with relevant skills and expertise While the company will apply for patent protection the organization seeks partnership arrangements with global and local organizations to make TB treatments widely available in the developing world through supply strategies that minimize cost of manufac-ture and delivery (AstraZeneca 2011) Partnership with Medicines for Malaria (MMV) In parallel AstraZeneca announced its partnership with Medicines for Malaria (MMV) in 2010 The agreement permitted MMV to access Astra-Zenecalsquos extensive compound library MMV will seek to identify promising compounds with the potential to treat malaria including drug resistant strains of the disease MMV has the objective to discover develop and de-liver new effective and affordable anti-malarial drugs with simpler dosing regimens thereby encouraging patient compliance and helping reduce the risk of resistance developing The ultimate goal is to find a one-dose cure for malaria (MMV 2010)

6

Under the terms of the agreement scientists working with MMV will screen 500000 compounds in AstraZenecalsquos unique library for activity against P falciparum the most lethal of malaria parasites Prof V Avery at the Eskitis Institute for Cell and Molecular Therapies at Griffith University in Brisbane Australia will conduct the screening on behalf of MMV Promising com-pounds identified through the screening process will be starting points for antimalarial drug discovery projects These compounds will be progressed through a discovery cascade at AstraZenecalsquos RampD facility in Bangalore India with the aim of identifying suitable candidates for clinical testing (MMV 2010) David Brennan AstraZenecalsquos CEO said ―hellipOpening up our compound library to MMV is an important step toward addressing the enormous unmet medical needs of the developing world AstraZeneca is committed to being part of the solution and we look forward to working with MMV and all those with a stake in global health (MMV 2010) Tim Wells MMVlsquos Chief Scientific Officer stated that ―hellipthe additional advantage is the Indian perspective India has millions of cases of malaria per year and in addition has a balance between Plasmodium falciparum and Plasmodium vivax Understanding and eliminating Indian malaria is one of the keys to eliminating malaria worldwide (MMV 2010) Opening up Proprietary Assets AstraZeneca recently agreed to join the World Intellectual Property Organizationlsquos (WIPO) WIPO ReSearch initiative in what is an unprece-dented collaboration between the private sector and public partners WIPO ReSearch will present to the public a searchable database of available IP as-sets and resources for use in neglected tropical disease (NTD) research The commitment includes the provision that IP licensed via WIPO ReSearch will be licensed on a royalty-free basis for research and development for ne-glected tropical diseases in any country It will also be licensed on a royalty-free basis for sales of neglected tropical disease medicines in or to least de-veloped countries AstraZeneca has committed to making its entire patent portfolio available for use in NTD RampD through WIPO ReSearch In addi-tion AstraZeneca will provide access to its high throughput screening tech-nologies compound collection and global laboratories AstraZeneca hopes to increase opportunities for scientists to work at it facilities around the world and encourage scientific mentoring and use of innovative technologies

by guest scientists researching treatments for NTDs (AstraZeneca 2011) Through a combination of open innovation and open source initiatives AstraZeneca shares the joint goal of speeding up the discovery and develop-ment of new potential treatments for NTDs Time will tell which strategies prove most effective in terms of both product development and product access (Figure 1) References 1 AstraZeneca and MMV join efforts in the fight against malaria MMV

June 2010 2 CPTR httpcptrinitiativeorg 2011 3 CPTR Yields Progress November 2011 4 Kollewe J AstraZeneca joins fight against tuberculosis

The Guardian March 2011 5 Leading pharmaceutical companies amp research institutions offer IP

and expertise for use in treating neglected tropical diseases AstraZeneca October 2011

6 MM4TB wwwmm4tborg 2011 7 Partnering is a Priority AstraZeneca 2011 8 Tackling TB AstraZeneca 2011 9 The Global Alliance for TB Drug Development (TB Alliance) and

AstraZeneca Announced that they have Entered into a Research Col-laboration Agreement to Accelerate the Discovery Development and Clinical Use of Drugs Against Tuberculosis (TB) AstraZeneca 2010

Figure 1 Open Innovation and Open Source Strategies for NTDs at AstraZeneca

AstraZeneca Global Open Source Strategy

WIPO ReSearch Alliance Sharing of Compounds

Technology Access to IP

AstraZeneca Malaria Open Innovation

Strategy Dedicated Research Facility

Bangalore India

AstraZeneca Global NTD Strategy

Guest Researcher Access to Global Facilities

Mentorship Opportunities for Research in NTDs

AstraZeneca TB Open Innovation Strategy Dedicated Research

Facility Bangalore India CPTR Alliance

7

8

Pfizerrsquos Open Innovation Strategy in Asia

Pfizer has been targeting Asian markets since the early 1950s and is one of the largest US-headquartered pharmaceutical companies in Asia One key issue is the disassociation between drug research and sales It has increas-ingly become apparent that the majority of RampD is conducted outside Asia while products are sold within target Asian markets The Asia Research Ac-celerator strategy was designed to address this concernmdashwith the goal of advancing drug discovery programs in Asia while complementing existing research efforts in North America and Europe (Pfizer Global Opportuni-ties 2010) Through this initiative Pfizer invests in Asia-based research efforts that may yield either new candidates for medicines or new pathways for technology development In 2010 Pfizer either launched or expanded collaborative ef-forts throughout the region with major Asia-based researchers such as WuXi AppTec Crown Bioscience Cumencor HD Biosciences and PharmaResources (Shanghai) Co as well as through academic partnerships with Fudan University Shanghai Jiao Tong University and Shanghai Institutes for Biological Sciences (Pfizer Global Opportunities 2010) This global network of industry and academic alliances is stimulating bio-medical advances into diseases that are more prevalent in Asia than in other parts of the world For example Pfizer currently has partnerships with the Korea Research Institute of Bioscience and Biotechnology and with the Asian Cancer Research Group (an independent not-for-profit company es-tablished by Pfizer Eli Lilly and Merck) to investigate treatments and to un-derstand certain types of gastric liver head and neck cancers that have higher prevalence rates in Asia than in places such as North America and Western Europe Here we see capacity development in emerging markets with the objective to address the health concerns of the Asian patient (Pfizer Global Opportunities 2010) An Open Source Strategy for New Drug Discovery In 2010 Eli Lilly and Company Merck and Pfizer Inc formed the Asian Cancer Research Group Inc (ACRG) an independent not-for-profit com-pany The ACRGlsquos formation represents a prime example of a growing trend in pre-competitive collaboration in which large pharmaceutical compa-nies combine their resources and expertise to rapidly increase knowledge of disease and disease processes The goal of the ACRG is to improve the knowledge of cancers prevalent in Asia and to accelerate drug discovery ef-forts by freely sharing the resulting data with the scientific community Initially the ACRG will focus on lung and gastric cancers two of the most common forms of cancer in Asia As many as 40 percent of patients with lung cancer in Asia demonstrate a mutation that is relatively rare in Western patients (EGFR mutation) This mutation has resulted in differences in re-sponse to some types of agents suggesting that a different research ap-proach is needed for developing treatments for certain patient populations Over the next two years Lilly Merck and Pfizer have committed to create one of the most extensive pharmacogenomic cancer databases known to date This database will be composed of data from approximately 2000 tis-sue samples from patients with lung and gastric cancer that will be made publicly available to researchers and over time further populated with clini-cal data from a longitudinal analysis of patients (Pfizer 2010) Ties to Academia In the past six years Pfizer RampD China has developed a large collaborative research network covering basic research institutes contract research or-ganizations and smaller biotech and pharmaceutical firms Pfizerlsquos China Research and Development Center a state-of-the-art facility that provides global drug development support capabilities research collaborations and strategic alliance opportunities to China and the Asian region is based in Shanghai It is the largest RampD center for a multinational pharmaceutical company in China The Center works alongside Chinese partners to develop the skills and talents of local scientists biostatisticians medical professionals pharmacists and others with expertise in life sciences The Center collabo-rates with leading academic researchers and top institutes in China including Peking University Tsinghua University Shanghai Jiaotong University and multiple institutes of the Chinese Academy of Sciences (Pfizer 2009) Pfizer signed a deal in July 2009 with the Shanghai Institute of Biological Sciences (Sibs) As part of this deal Pfizer will provide US$500000 each year for three years to fund early stage joint research in life sciences and new drug development between Sibs scientists and Pfizer scientists Scientists in basic research institutes learn drug development skills from industry collabo-

rators while Pfizer scientists learn from and gain access to ideas of the aca-demics Though the funding is small the joint research is supported by Pfizerlsquos global resources For example proposals are revised to become more feasible and workable The researchers also receive assistance on intel-lectual property managementmdashhence the attraction of the programme for Chinese life scientists (Jia 2010) ―Our choice of Shanghai Institutes for Biological Sciences as a research part-ner demonstrates our high regard for the scientific expertise and capabilities of SIBS said Martin Mackay President Pfizer Global Research and Devel-opment ―China is increasingly seen as a source for innovative healthcare research and we are proud of our ongoing investment in the outstanding science and people here Research projects will be selected and developed jointly by Pfizer and SIBS scientists (Pfizer 2009) In parallel Pfizer has made a significant commitment to South Korean re-searchers The company signed a memorandum of understanding with the countrys Ministry of Health and Welfare in 2007 agreeing to invest $300 million in RampD in the country At this time Pfizer formed a strategic re-search partnership with the Korea Research Institute of Bioscience and Biotechnology (Ray 2010) Pfizer and the Korea Research Institute for Bioscience and Biotechnology (KRIBB) expanded the earlier agreement in May of 2010 to jointly develop drugs for liver and gastric cancer and to in-vest a total of KRW 300 billion (U$240 million) from 2008 to 2012 (Moffat 2010) Continuing its focus on pharmacogenomics Pfizer also recently formed a research partnership with Samsung Medical Centre in Seoul for the analysis of Korean liver cancer patients in order to generate gene expression profiles for the condition (Adams 2010) Choi Han-Yong president of Samsung Medical Centre said ―We are pleased to have an opportunity to work with the worldlsquos number one phar-maceutical company Pfizer to better understand cancer in Korean patients with the goal of being able to send a new message of hope for patients with liver cancer across the world especially in Asia (Adams 2010) Centers for Therapeutic Innovation (CTI) Pfizer recently announced the formation of a network of academic collabo-rators to accelerate the translation of basic science into biologics-based drugs According to Mikael Dolsten MD PhD president of Pfizer Worldwide Research amp Development the Centers represents a novel open innovation paradigm combining the competencies of top academic research institutions with Pfizerlsquos leading drug development capabilities and research technologies (Pfizer 2010) The Centers for Therapeutic Innovation (CTI) will initially focus on collaborations within the US Pfizer expects to expand into Europe and Asia in 2012 Each Center will be governed by a Joint Steering Committee (JSC) comprised of Pfizer and Academic Medical Cen-ter (AMC) representatives who will provide leadership and evaluate the suc-cess of each program through discovery and early stage clinical develop-ment Through this innovation model Pfizer will have the opportunity to broaden its pipeline with novel candidate drugs to treat diseasesmdashaddressing unmet medical need (Pfizer 2010) A key aspect of the Centers for Therapeutic Innovation is Pfizerlsquos commit-ment to establishing local Centers at each partner site The partnerships will follow a venture capital-funded biotechnology start-up model whereby Pfizer funds preclinical and clinical development programs and offers equi-table intellectual property and ownership rights as well as broad rights to publication When programs are successful and advance according to the terms determined by a joint steering committee Pfizer will grant milestone payments and royalties (Rockefeller University 2011) ―The concept is to make a transition away from the vertically integrated RampD model into smaller decentralized groups of a truly global nature says Pfizerlsquos Anthony Coyle who is heading up the program out of the com-panys Cambridge Massachusetts facilities (Ratner 2011) The CTI will provide the primary investigator (PI) with funding (postdoctoral support) technical support (dedicated Pfizer personnel with expertise in protein sciences and development) and infrastructure (laboratory space libraries robots) (Pfizer 2011) The incentives operating model and goals for participating primary investigators and Pfizer colleagues will be designed to support achieving a positive Proof-of-Mechanism study in humans (PoM) PoM studies are small investigator-led clinical trials that typically involve 10 to 30 human subjects and have defined mechanistic or therapeutic endpoints (Pfizer 2011)

9

Partnerships Reaching Down the Value Chain In 2008 WuXi PharmaTech signed a three year deal with Pfizer Under the new collaboration agreement WuXi PharmaTech in partnership with Pfizer will establish ADME assays to provide in vitro screening services on com-pounds WuXi PharmaTech synthesizes for Pfizer (WuXi 2008) WuXi PharmaTech and Pfizer have previously collaborated on synthetic chemistry parallel medicinal chemistry ADME and bioanalytical services ―This new agreement further strengthens our already productive relationship with Pfizer one of our largest customers for many years and it is the direct result of our research capability and firm commitment to quality and customer sat-isfaction according to Ge Li PhD chairman and CEO of WuXi PharmaTech (GEN News 2008) In 2009 Pfizer and Crown Bioscience Inc (Crown) announced a collabora-tion to research and develop novel therapeutics for Asian cancers Under the terms of this agreement Crown will receive an upfront payment and re-search funding as well as milestone payments based on the achievement of preclinical and clinical goals The companies will work together to discover and advance multiple candidates for clinical development The work will take place at Crownlsquos new research facility located in Taicang (near Shang-hai) China (Pfizer 2009) ―I am delighted to be collaborating with Pfizerlsquos exceptional oncology group says Alex Wu CEO of Crown ―I am also very happy that Pfizer is focusing on and dedicating resources to address a very important unmet medical need for the Asian populations This new collaboration extends an already very successful partnership between Crown and Pfizer and further demonstrates Crownlsquos commitment to becoming an outstanding cancer re-search company in Asia (Pfizer 2009) Reaching out to the bottom of the pyramid MicuRx Pharmaceuticals Inc a biopharmaceutical company (with its presence in San Francisco US and Shanghai China) dedicated to the development of antibiotics to treat drug-resistant bacteria and Cumencor Pharmaceuticals Inc recently announced that the companies have entered a collaboration with Pfizer (NYSE PFE) to discover novel therapeutic agents to treat multi-drug resistant tuberculosis (MDR-TB) Cumencor Pharmaceuticals is a China-based biotechnology company applying MicuRxlsquos proprietary technology platform to discover and develop novel antibiotics for MDR-TB (PR Newswire April 2010) Under the terms of the agreement Pfizer will provide an upfront payment funding for the discovery and preclinical development of novel antibiotics to treat MDR-TB and payments linked to the development and commerciali-zation (including royalty payments on sales) of any antibiotics developed through the collaboration All collaboration research will be conducted at the ZhangJiang High-Tech Park in Shanghai China (PR Newswire April 2010) ―MicuRxlsquos novel approach to developing antibiotics for the treatment of drug-resistant bacteria and their existing technology know-how and exper-tise provide the basis for this collaboration said Steve Yang PhD Vice President and Head of Pfizers Asia Research and Development organiza-tion ―We expect that any compounds resulting from the collaboration will complement our portfolio of anti-infective agents and build our global pres-ence in the emerging pharmaceutical markets of Asia and beyond (PR

Newswire April 2010) Building Intellectual Capital in Asia through Open Innovation Pfizerlsquos open innovation strategy in Asia has a strong capacity development focusmdashnamely the development of intellectual capacity in Asia Beginning with a focus on health issues directly affecting the Asian patient Pfizer is not only devoting its resources to such diseases but through the ACRG will widely share pharmacogenomic information pertaining to lung and gastric cancers Supporting this endeavour are collaborations with the Korea Research Institute for Bioscience and Biotechnology (KRIBB) and the Samsung Medical Centre in Seoul Through its association with the Shanghai Institute of Biological Sciences (Sibs) and the planned Centers of Therapeutic Innovation Pfizer hopes to fund early stage joint discovery and clinical research in life sciences and new drug development Scientists in ba-sic research institutes will learn drug development skills from industry col-laborators while Pfizer scientists learn from and gain access to ideas of the academics Training opportunities in the area of intellectual property man-agement have been equally attractive to scientists Knowledge sharing knowledge development and exchange should support a vibrant life sciences sector in emerging markets in Asiamdashwith the goals of addressing chronic and neglected diseases that are endemic to Asia (Figure 1) References 1 Adams B Pfizer form liver cancer research partnership in Korea InPharm

July 2010 2 Jia H Though the funding is small the joint research is supported by

Pfizerlsquos global resources Chemistry World October-December 2010 3 MicuRx Pharmaceuticals and Cumencor Pharmaceuticals Partner with Pfizer

to Discover and Develop Antibiotics for Drug-Resistant Tuberculosis in China PR Newswire April 2010

4 Moffat B Global pharma eyeing Korean acquisitions as nation becomes test-bed Private Equity Korea May 2010

5 Pfizer And Crown Bioscience Announce A Collaboration To Research And Develop New Treatments For Asian Cancers Pfizer 2009 Pfizer Announces Partnership With Shanghai Institutes For Biological Sci-ences For Drug Discovery Activities BusinessWire July 2009

6 Pfizer Employs WuXi PharmaTech for In Vitro ADME Services GEN News November 2008

7 Pfizer Global Opportunities Annual Review 2010 8 Pfizer Launches Global Centers for Therapeutic Innovation a Network of

Research Partnerships With University of California San Francisco Pfizer November 2010

9 Publicly Available Genomic Database of Profiled Tumor Samples to Provide a Resource for Biomedical Researchers Worldwide Lillycom February 2010

10 Ratner M 2011 Pfizer reaches out to academiamdashagain Nature Biotechnol-ogy 29 3-4

11 Ray T PfizerSamsung Collaboration to Focus on PGx Strategies to Per-sonalize Liver Cancer Treatments in Korea Pharmacogenomics Reporter July 2010

12 Rockefeller joins Pfizerlsquos Global Centers For Therapeutic Innovation The Rockefeller University April 2011

13 WuXi PharmaTech Signs New Collaboration Agreement With Pfizer WuXi AppTec November 2008

14 wwwpfizercom 2011

Figure 1 A Broad Asian Open Innovation Strategy at Pfizer

Pfizerrsquos Open Source Strategy

Asian Cancer Research Group Inc (ACRG)

Reaching Down the Value Chain Alliance with WuXi

PharmaTech Alliance with Crown

Biosciences Alliance with MicuRx Pharmaceuticals

and Cumencor Pharmaceuticals

Ties to AcademiamdashIntellectual Capital Development

China Research and Development Center

Sibs Alliance KRIBB Alliance

Samsung Medical Centre Alliance CTI

10

11

A Networked Open Innovation Strategy The SpringFire Laboratory Network Technological complexities and market pressures have increased the degree to which companies are outsourcing to highly specialized technology driven companies However conventional outsourcing on a project-by-project ba-sis is strategically insufficient in this era A new type of structure-the virtual or networked outsourcing company provides access to customized solutions and is focused on long-term strategic partnering The formation of this new networked outsourcing company structure is driven by the need to access a broad range of expertise and the shift from narrowly focused specialized outsourcing companies to ―all inclusive outsourcing companies The virtual company is much more agile responsive to paradigm shifts and regulatory changes Accessible expertise can cover drug discovery from the earliest stage of lead compound identification and development through preclinical clinical phases manufacturing global registration post-marketing and line-extension studies The virtual outsourcing company enables access to a multidisciplinary team where the appropriate skill sets and expertise can be available at each stage of the biopharmaceutical value chain Appropriate teams are quickly assem-bled to manage issues as they arise In contrast large vertically integrated outsourcing companies can face many of the same problems associated with the fully integrated biopharmaceutical company including integration coor-dination and communication problems For each team the most suitable individuals from the most appropriate outsourcing firms within the network are selected on the basis of skills experience and fit with the project or product goals client and other individuals on the team Virtual outsourcing companies manage the various contracts budgets and relationships for their clients Lower project risk exists as dependency on a single supplier relation-ship is removed A virtual company must add value and not act simply as an intermediary be-tween contractors and large companies To operate successfully within the virtual environment requires strong industrial and academic networks effec-tive project management skills highly developed intellectual property man-agement skills and the ability to bring together partners to enable drug devel-opment Teams of experienced suppliers and experts are tailored to fulfill project or product requirements and are led by a dedicated senior project manager to ensure knowledge coordination and integration Forming the right partnerships and teams as well as managing operational processes in-crease the effectiveness of RampD outsourcing and ensure that the associated cost time and risk-sharing benefits are enjoyed by the Sponsor Models at Work The SpringFire Laboratory Network SpringFire Laboratory Network is a firm with the goal to match pharmaceu-tical medical device and biotech companies with clinical laboratories to pro-vide clinical trial testing solutions SpringFire Laboratory Network is unique in representing a network of independent non-competing high complexity laboratories collectively providing testing offerings to the clinical trial mar-ketplace The founders discovered that there was a strong desire by Sponsors and CROs to have choices in laboratories other than large laboratory companies with rigid requirements and little flexibility or educational institutions that were expensive and less responsive to external clients However there was little incentive for independent laboratories to pursue clinical trials testing given the large upfront costs to start a business development effort and the significantly different and lengthy sales cycle in clinical trials In an attempt to bridge the gap between the strong need for laboratory choices and the reluctance of independent laboratories to shoulder the bur-dens of clinical trials initiatives SpringFire Laboratory Network was estab-lished The network includes hand-selected independent laboratories to pro-vide testing services to clinical trial Sponsors and CROs The SpringFire team provides business development services for the network laboratories as well as expert knowledge around project management and clinical trial-specific operations The laboratories are non-competing and as such they share costs and best practices with one another without competing for the work ―The clinical trial marketplace has a need for esoteric laboratories to respond to its ever-expanding requests states Jim McClintic Managing Partner of SpringFire Laboratory Network

Selecting and Matching Network Participants SpringFire Laboratory Network is committed to a successful outcome for each drug or device development project The network of laboratories is made up of hand-selected ―Centers of Excellence The affiliated laborato-ries provide solutions in sub-specialized anatomical pathology and highly specialized clinical diagnostic testing along with state of the science micro-array testing SpringFirelsquos core team works with all affiliated laboratories to ensure their internal operations meet or exceed the unique regulatory and data manage-ment needs of clinical trials Each laboratory has demonstrated their abilities to provide customized quality results for clinical investigations on an inter-national basis The SpringFire affiliated laboratories are highly regarded in their specialized areas of testing expertise Each affiliate laboratory is evalu-ated to determine their fitness for work in the clinical trials arena A variety of characteristics are considered during a 2-day on site assessment including

Past clinical trial experience Quality laboratory processes Scientific and medical leadership Platform and technology maturity Project management Storage space options Data management capabilities Commitment to providing quality testing to clinical trials Sponsors

or CROs Since most of the laboratories are non-competing the matching process is usually based on the services requested and which lab provides those ser-vices In the event that more than one laboratory provides the requested tests or services SpringFire works with the laboratory that provides the most comprehensive set of tests or services In the event that no single lab performs all of the testing SpringFire will facilitate for two or more of the network laboratories to work together on a study Current Members of the Network SpringFire Laboratory Networklsquos current member laboratories are based in North America The Network provides testing services for both domestic and international study sites and is open to working with laboratories and sponsors around the globe Current members include

With a combined menu of more than 1000 specialty tests SpringFire offers Sponsors and CROs expertise and testing services in numerous therapeutic areas including anatomical pathology coagulation advanced lipids molecu-lar genetics and womenlsquos health The SpringFire network of laboratories col-lectively represent over 90 years of experience in the clinical marketplace while successfully completing more than 250 clinical trials Governance of the Network The SpringFire team is much more than business development The team works closely with each laboratory before during and after the study From the start the team works with each laboratory to build a competitive and timely proposal With the awarding of a contract the SpringFire team re-views and assists with negotiations and contract development During the study start-up phase the team facilitates on-going communications and lo-gistics to ensure the effective completion of tasks including routinely follow-ing up with both the laboratory and Sponsor or CRO to ensure good com-munication and suitable quality laboratory services When the study is con-cluded all parties are provided with a summary and an opportunity to share their experiences thoughts and ideas on the study and the laboratory ser-vices (Figure 1)

Laboratory Specialization

D-Path Dermatopathology

GI Pathology Gastrointestinal and liver pathology

ITxM Diagnostics Coagulation testing

Atherotech Diagnostics Advanced lipids

Baylor College of Medicinersquos Molecular Genetics Laboratories

Pharmacogenomics cytogenetics and medical genetic diagnostics

Baylor College of Medicinersquos Cancer Genetics Laboratory

Cancer-related genetics testing

12

Figure 1 Interactions in the SpringFire Laboratory Network Knowledge management is vital both to the effective working of the project team but also to the efficient transfer of information to and from the Sponsor as well as to external audiences such as site investigators regulatory authorities and potential licensees Outsourcing multiple stages of the drug product life cycle is critical for those companies that require access to expertise and technology in a rapidly chang-ing paradigm without the risk and cost associated with internal development Both young and small biotechnology companies and large traditional phar-maceutical companies can benefit from the model of drug discovery and development offered by organizations such as the SpringFire Laboratory Network

SPRINGFIRE

CORE TEAMPartner Selection

Best Practice Sharing

Baylor College of

Medicines

Cancer Genetics

Laboratory

GI Pathology

D-Path

ITxM Diagnostics

Baylor College of

Medicines

Molecular Genetics

Laboratories

Atherotech

Diagnostics

SPONSORCRO

PARTNER

MATCHING

GOVERNANCE

LESSON

KNOWLEDGE

TRANSFER

UPCOMING BIO PARTNERSHIPS ASIA 2012 CALENDAR

EDITORIAL

TRENDS AND ANALYSIS Articles that run 1500-2000 words and explore trends across the value chain describe opportunities in emerging Asian markets outline policy changes enabling partnerships in these markets and discuss the management of such partnerships

CASE STUDIES Company case studies that run 500-1000 words and explore partnerships across the drug discovery and development value chain

Submit text and electronic images with a resolution of 300 dpi or better We cannot guarantee placement in a particular issue The staff may schedule an entry to coincide with a certain issues editorial theme

COMPANY PROFILES Service provider profiles Send the following information Company name

contact information description services offered markets served and partnerships sought Also send a company logo

TECHNOLOGY PROFILES Technology licensing opportunities Send the following information Technology background areas of application competitive advantages stage of development intellectual property status partnerships sought and contact

information Please forward an image if applicable

NEWS RELEASES Updates on deals partnerships opportunities Send a press release and a company logo

MONTH FEATURE STORIES TRENDS AND ANALYSIS

CASE STUDIES

February 2012 New Models of Open Innovation in Asia

Business Model Analysis

Company Profiles

May 2012 Cluster Formation and Participation in Asia

Case Analysis Cluster Profiles

August 2012 Partnerships and Biopharmaceutical Capacity

Development in Asia

Case Analysis Company Profiles

November 2012 Transferring the Lessons from Asia to the Bottom of

the Pyramid

Lessons from India China Singapore

Middle East

Company Profiles

13

14

15

Convergence Innovation Development at the Intersection of Disciplines Organizations and Products Convergence Innovation is the paradigm where discovery and technology creation occur at the intersection of multiple disciplines and organizations Specifically convergence between the chemical biological cognitive physi-cal and information sciences is evident Firms and researchers will cross the boundaries between these disciplines to create technological value--finding solutions to address health environmental and energy challenges In parallel will be emergence of new models of collaboration to enable knowledge crea-tion and knowledge dissemination Central to Convergence Innovation will be a determination of the common value of knowledge versus the private value of knowledge across the associated disciplinesmdashwith the goal of ad-vancing and commercializing technology Levels of Convergence Convergence can be considered at three levelsmdashnamely convergence in the sources of knowledge for research convergence in organizational forms to enable technology development and convergence at the product level with the embodiment of knowledge in complementary products For example while nanotechnology research has been shown to have a dominant focus on material sciences additional analysis has demonstrated that nano-based research increasingly draws its knowledge from other areas (Porter and Youtie 2009) Specifically Porter and Youtie (2009) reveal that while nano-based publications center on materials science (including chemistry and physics) nano-based research also significantly involves many other fields including biomedical sciences computer sciences and mathematical sci-ences environmental sciences and engineering Citation patterns further show extensive referencing across macro-disciplinesmdashwith a preponderance of references in nano-related articles to research outside the macro-discipline in which the article is published (Porter and Youtie 2009) Conse-quently at this level of convergence the sharing and absorption of research across the involved disciplines will be necessary for downstream value crea-tion (Figure 1) Figure 1 Convergence at the Disciplinary (Knowledge Sources) Level At the next level of convergencemdashthe organizational levelmdashthe interaction between technological convergence and models of open innovation is be-coming apparent Licensing mergers acquisitions and strategic alliances such as joint ventures as well as new structures such as innovation networks and open innovation communities represent alternative strategies that may be used to acquire or access the necessary knowledge or assets for discovery and development From a convergence perspective the opportunity exists for a (public or private) stakeholder to not only interact with other (public andor private sector) stakeholders through simple one-to-one traditional collaborations but with many stakeholders through more complex mecha-nisms such as consortia crowdsourcing and other such open innovation communities For example the need for shared scientific expertise and large scale infrastructure in both nanotechnology and biotechnology is thought to be responsible for the development of networks spanning both fields (Figure 2) The pervasiveness of enabling technologies such as information and communications technology (ICT) have encouraged innovation net-works to increase in dominance and have lead to the blurring of organiza-tional boundaries among research organizations (Powell Koput and Smith-Doerr 1996 Roijakkers and Hagedoorn 2006) In such collaborations the opportunity to assume multiple roles exists to enable RampD including the collaborator who shares knowledge with one or many partners for the pur-poses of discovery or development the incubator who provides funding or expertise to other stakeholders to support venture development the enabler

who provides access to tools equipment large scale infrastructure or other services to support product development and the orchestrator who manages the network of partners with either the objective of knowledge creation or knowledge application (Melese Lin Chang and Cohen 2009) At this level of convergence there is the critical need to closely examine the management processes associated with collaboration as the collaborative strategies have not only grown in relevance but also in terms of impact and the number of participants involved

Collaboration Model

Access

Simple (One to One) Complex (Many to Many)

Collaboration Complexity

Figure 2 Convergence at the Organizational Level Open Access=Participation Open Closed Access=Exclusive Partnership

Simple=One to One Link between Partners Complex=Many Links between Several Partners PPP=Public Private Partnership JV=Joint Venture

The location in the above grid determines the extent to which the collabora-tion is open or closed and between one few or many partners

Finally the outcomes from any collaborative interaction will increasingly lead to convergence at the product level In this case multiple components or products will be packaged together to enhance the value over individual product offerings (Figure 3) Such bundled products will have the goal of simultaneously meeting several technological needs be it for biomedical treatment as seen in the use of nano-based diagnostics paired with therapeutics in agriculture or environmental applications as seen in the use of sensors to measure pathogens in food and the environment or the use of nanospheres to selectively detect harmful materials in water and then used for detoxification and in the creation of novel energy technologies as seen in the use of catalysts in particles for biodiesel synthesis to name a few (Schmidt 2007) At the product level effective intellectual property man-agement strategies and coordination between regulatory agencies will be paramount

Figure 3 Convergence at the Product Level

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

COGNITIVE

PPP JV

MampA

Consortium Innovation Network

Crowdsourcing Open Source Network

Licensing

Proprietary Open Innovation Community

Closed

Open

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

Nanomaterials

Nanodevices

Nanoelectronics

Nanosensors

Bioinformatics

Biosensors

Tissue Engineering

Drug Delivery

Diagnostics

Drug Delivery

Chemical Catalysis

Nanofiltration

Chemical Sensors

Neuron Network

Prostheses GenerationCOGNITIVE

16

The Impact of Convergence At each level of convergence there are several complexities that either im-pact the management of stakeholder interaction or the management of the knowledge based assets generated through such interactions For example given the expected intersection between disciplines knowledge complexities including varied types (such as biological information and biological struc-tures chemical knowledge and structures physical knowledge and struc-tures) and forms of knowledge (disembodied and embodied) will drive the need for a common platform for knowledge integration validation and standardization Beyond integration of knowledge it is expected that teams of biological chemical and physical scientists will increasingly form to de-velop and bridge together the necessary tools and equipment for RampD ac-tivities (Ideker Galitski and Hood 2001 Kitano 2001 Kautt Walsh and Bittner 2007 Boardman 2008 Boardman and Ponomarioy 2009) We must also consider the impact of convergence on the downstream rights to de-velop products Lemley (2005) discusses that unlike other industries in which patentees are actual or potential participants in the downstream mar-ket a significant number of corporate patentees will increasingly own rights not just in the industry in which they participate but other industries as well Analysts fear that over-patenting alongside the large shadow of such patents could not only fragment technology but could discourage stakeholders in a number of industries from attempting to develop products incorporating infringing technologies (Lemley 2005) It is important to consider that as multiple disciplines increasingly working together each discipline will have its own priorities and conventions regarding knowledge dissemination and knowledge appropriation (Hilgartner 1996) One discipline may signal its success during knowledge generation through the enclosure and the sale of disembodied knowledge Another discipline may measure its success exclu-sively by the embodiment of knowledge in medical products (Hilgartner 1996) While patent pools are a suggested solution to the possible patent holdups (DlsquoSilva 2009) it has been proposed that as has occurred in the genomics arena innovation-based networks with rules regulating the devel-opment and appropriation of critical technology building blocks could not only circumvent the product development and legal problems of the past but will also bring together the requisite intellectual and physical capital (DlsquoSilva 2009 Allarakhia and Walsh 2010) A Template for Managing Interactions and Knowledge-Based Assets Governance strategies must seek to align the incentives for participation in collaborative activities for multiple stakeholders The use of rules to define actions communication mechanisms used to enable and monitor actions and to share the outcomes are all critical to ensure that goals are achieved Structure and Roles It is expected that the chosen collaboration modemdashone to one one to many or many to many collaboration and objectives set for the collaborationmdashpooling of assets generation of new assets andor pol-icy creation will impact the type of participants that will join The organiza-tional structure chosen will be determined in part by the attributes of the resources to be contributed or developedmdashinformation supporting tools technology as well as the location of participantsmdashwith linkages established through physical clustering or virtual networking Thereafter the organiza-tion of participants may be a function of technological expertise geographic location or project-based management expertise Resource Types and Outcomes Participants will contribute several inputs including funding equipment and human capital The resulting outcomes include data materials tools and technology Facilities store artifacts in or-der to make them accessible Traditional facilities have been libraries and archives containing books journals and papers New technologies have made electronic distributed information possible Artifacts are discreet ob-servable nameable representations of ideas such as articles research notes books databases maps computer files and web pages (Foray 2004 Hess and Ostrom 2006) In the context of nanotechnology databases material and model repositories accessible laboratories that aggregate equipment and tools for nanotechnology development are varied options to manage the outputs Hence any outcomes analysis should seek to determine the success of collaboration including the amount of data produced and accessed the material generated housed and accessed the tools created and used and the technology produced by participants Governance Internal rules or mechanisms used to promote cooperative be-haviour can include formalizing the requirements to join the initiative en-suring frequent interactions encouraging communication between partici-pants monitoring and punishing defection and setting the boundary for access to resources An authority that regulates access to resources can en-sure that a fair and efficient governance strategy is used (Ostrom Gardner and Walker 1994) While access generally refers to disembodied assets such

as data extraction can involve the removal andor use of physical materials models and tools Knowledge use and access can be governed by the fol-lowing rules sharing with partners only (closed access) sharing with part-ners and the public at large (open access) and intellectual property assign-ment potentially on information materials tools and technology with the specification of rights to use based on licensee type geography or target market for product launch Creating Value The Path Forward in The path forward will require the creation of supporting policies encourag-ing multi-disciplinary collaboration At a national level several governments have recognized the importance of innovation networks to develop capacity and compete on an international level Consequently policies are now pro-viding more RampD funding and incentives encouraging the formation of multi-sectoral networks (Corley Boardman and Bozeman 2006) New prod-ucts of convergent technologies will necessitate cooperation among regula-tory bodies with the coordination of information flow coordination of du-ties and increased harmonization between international regulatory bodies (Castle et al 2006 Drezek and Tour 2010) To avoid the mistakes of the past policies outlining guidelines for the management of intellectual prop-erty rights can ensure that stakeholders will correctly assess the common value of knowledge versus the private value of knowledgemdashresulting in the transition from open knowledge to appropriated knowledge with the objec-tive of pursuing (unilateral or collaborative) downstream product develop-ment References 1) Allarakhia M amp Walsh S Managing knowledge assets under conditions of radical change The case of the pharmaceutical industry Technovation 31 105-117 (2011) 2) Boardman P Beyond the stars The impact of affiliation with university biotechnology centers on the industrial involvement of university scientists Technovation 28 291-297 (2008) 3) Boardman Pamp Ponomarioy B University researchers working with pri-vate companies Technovation 29 142-153 (2009) 4) Castle D Loeppky R Saner M Cline C Dalgleish J amp Wojnik V Convergence in Biotechnology Innovation Case Studies and Implications for Regulation (University of Guelph Guelph 2006) 5) Corley EA Boardman PC amp Bozeman B Design and the manage-ment of multi-institutional research collaborations Theoretical implications from two case studies Research Policy 35 975-993 (2006) 6) Drezek RA amp Tour JM Is Nanotechnology Too Broad to Practice Nature Nanotechnology 5 168-169 (2010) 7) DlsquoSilva J Pools thickets and open source nanotechnology European Intellectual Property Review 31 300-306 (2009) 8) Foray D The Economics of Knowledge (MIT Press Cambridge 2004) 9) Hess C amp Ostrom E Understanding Knowledge as a Commons From Theory to Practice (MIT Press Cambridge 2006) 10) Ideker TT Galitski L amp Hood LE A new approach to decoding life Systems biology Annual Review Genomics and Human Genetics 2 343-372 (2001) 11) Kautt M Walsh S amp Bittner K Global distribution of microndashnano technology and fabrication centers A portfolio analysis approach Technol-ogy Forecasting and Social Change 74 1697-1717 (2007) 12) Kitano H Systems biology Toward systems-level understanding of bio-logical systems Foundation of Systems Biology 1-29 (MIT Press Cam-bridge 2001) 13) Lemley MA Patenting nanotechnology Stanford Law Review 58 601-630 (2005) 14) Melese T Lin SM Chang JL amp Cohen NH Open innovation net-works between academia and industry an imperative for breakthrough therapies Nature Medicine 15 502-507 (2009) 15) Ostrom E Gardner R amp Walker J Rules Games and Common-Pool Resources (The University of Michigan Press Ann Arbor 1994) 16) Porter AL amp Youtie J How interdisciplinary is nanotechnology Jour-nal of Nanoparticle Research 11 1023-1041 (2009) 17) Powell WW Koput KK amp Smith-Doerr L Inter-organizational col-laboration and the locus of innovation Network of learning in biotechnol-ogy Administrative Science Quarterly 41 116-145 (1996) 18) Roijakkers N amp Hagedoorn Inter-firm RampD partnering in pharmaceu-tical biotechnology since 1975 Trends patterns and networks J Research

Policy 35 431minus446 (2006) 19) Schmidt K Project on Emerging Nanotechnologies (2007)

17

18

Beyond Cost-Savings Hidden Considerations for Conducting Clinical Trials in Asia

By Jessica Liu General Manager ChinaNorth Asia INC Research and Garth Tierney Regional General Manager Australia and South East Asia INC Research

Abstract Pharmaceutical industry sponsors are well-aware of the cost bene-fits of conducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the pri-mary criteria by which sponsors should select the Asian regions in which they will conduct their clinical trials Other important considerations include disease incidence treatment standards minimizing variability maximizing protocol adherence regulatory factors politics cultural considerations and ethical concerns While global spending on medicines is expected to grow three percent to five percent over the next five years spending in the ―pharmerging markets is expected to double1 The desire to access this fast-growing consumer base is the primary reason large pharmaceutical companies are increasing their clinical presence in emerging countries like China according to a report from investment bank-ing firm William Blair2 But small to midsize drug makers are also moving into emerging markets driven primarily by cost differentials China can offer as much as a 50 percent cost advantage compared to the United States or Europe as can Thailand the Philippines or Malaysia Most countries in Asia are at least 20 percent to 30 percent more cost-efficient than their western counterparts although there are notable exceptions such as South Korea and Japan Pharmaceutical industry sponsors are well-aware of the cost benefits of con-ducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the primary criteria by which sponsors should select the Asian regions in which they will con-duct their clinical trials Other important considerations for conducting a trial in Asia include disease incidence and treatment standards the potential to minimize variability and maximize protocol adherence regulatory and political factors and cultural and ethical considerations Disease Incidence and Treatment Standards With more than four billion people Asia offers sponsors a deep pool from which to draw clinical trial participants Indeed for sponsors conducting late-stage clinical trials in indications such as diabetes or cardiovascular dis-ease which can require thousands of patients establishing Asian trial sites to tap into that pool is critical The key is determining which Asian countries will best match each triallsquos unique patient requirements For sponsors most concerned with enrolling large numbers of patients into a trial highly populous countries such as India China Indonesia Japan the Philippines Thailand and Malaysia may be the best fit A recent CRO survey revealed that China is the leader in patient recruitment for the Asia-Pacific region followed by India and South Korea3 However sponsors need to be aware that the region is still expanding and a vast population does not equate to vast number of ICH GCP trained sites in the larger countries of China and India This can be a limiting factor in gaining access to the best sites for certain indications If on the other hand a sponsor is conducting a Phase I trial they should know that certain Asian countries have specific regulatory requirements for approval of a clinical trial application (CTA) that can add complexity to the process Others like Australia specialize in Phase I studies thanks to their fast and straightforward approval processes high-quality clinical practices and variety of many academic and commercial clinical trials centers4 Selecting an appropriate region for trial sites also depends on the incidence of the target disease in each countrylsquos population Highly-developed Asian countries have a higher incidence of diseases common in the West such as diabetes and cardiovascular disease while diseases such as tuberculosis are more common in Southeast Asia Some countries like India have diverse patient populations afflicted with diseases of both the developing and devel-oped world

When it comes to standards of care certain diseases like breast cancer lung cancer and diabetes are treated in much the same way in Asia as they would be treated in the Western world But for many other indications medical practice standards differ both from East to West and between the different Asian regions Sponsors seeking to meet specific market regulatory approval will need to mirror Western standards-of-care and as such should consider focusing trial sites to Australia New Zealand Singapore Taiwan Hong Kong and South Korea But differing standards of care can also provide unique opportunities Asia offers relatively more patients for first-line and second-line cancer drug evaluation than the West where such patient stores have been largely exhausted Risk Mitigation Sponsors should be prepared that some Asian trial sites ndash even those that have adapted Western-style medical practices ndash may require more assistance when it comes to following protocol and differentiating between medical practice and clinical research Not all Asian sites will have the infrastructure for a clinical trial A good CRO partner will work with a sponsor and site investigators to identify any infrastructure gap ndash such as a dedicated com-puter fax or freezer ndash and develop plans to ensure sites have the essentials to deliver a study efficiently Data integrity is another area that sponsors and CROs need to focus atten-tion It is critical to reduce variability by ensuring all monitoring and site staff are well trained Monitors need to understand how to identify and pro-actively resolve issues early on to minimize long-term issues with patient recruitment and data collection They should understand how to recognize early warning signals and not overreact to red herrings Investigators and site monitors also need to be trained in adverse event reporting to ensure that they meet local regional and global clinical trial safety reporting Sponsors must ensure monitoring visits are being conducted regularly as such visits make it more likely that recruitment and data integrity issues will be detected early and managed in a timely and effective manner Equally im-portant site staff needs to be as consistent as possible Finally sponsors need to implement a proven system for data reporting as variability in the data collection process may decrease the evaluable patient pool in the trial decreasing the sponsorlsquos chances to establish statistical sig-nificance or detect a rare safety signal Regulatory and Political Factors While regulatory bodies in South Korea and Taiwan as well as in Singapore have adopted an FDA-based approach each Asian country has its own regulatory idiosyncrasies In China for example reviews take on a project-based nature and sponsors should never assume that what worked in one application will be directly applicable to another No matter how harmo-nized Asia may appear the cookie-cutter approach simply doesnlsquot work However the fact that regulatory policies are still evolving in certain Asian countries provides a unique opportunity to sponsors the opportunity to in-fluence those policies There are no formal guidances or rules covering this topic but it is a real opportunity The recent economic downturn has prompted finance ministers in many countries to more closely analyze the cost of healthcare and they are realizing that good drugs can decrease their overall costs To ensure new drugs are available in their countries they have become increasingly eager to support clinical trials and they are engaging in conversations with sponsors about how approval pathways might be con-structed that take healthcare economics into consideration For example if a sponsor works closely with regulatory agencies to design the right preclinical and Phase I trials could a single Phase IIIII trial be sufficient for approval in some indications Are so many repetitive studies really necessary Is the requirement or guidance relevant to the current technology If a sponsor can prove to the government that a certain disease is currently costing 50 cents per person per day to treat and a new drug would change treatment paradigms and reduce that cost to a penny that is a compelling argument Not compelling enough to compromise safety or effi-cacy but compelling enough to expedite things along by partnering to agree upon the most appropriate pathway to approval While some regulatory agencies may not be as comfortable with the idea of allowing more flexibility and customization in the clinical trial design many are open to reducing bu-reaucracy and the associated time delays for CTA approval ndash particularly when there is potential to significantly impact health economics Govern-ments may provide commercialization support including funding to enable

19

development of new technologies and testing methods There may also be a higher priority given to certain CTA applications in the review queue Australia and Singapore have adopted a more simplified regulatory process and offer a notification scheme rather than formal review by the regulator South Korea and Taiwan are working to ease regulations and facilitate pro-tocol reviews Countries such as China have lengthy regulatory approval processes however there are some early indications that this may be de-creasing India is currently experiencing slower regulatory paths Interest-ingly some Asia Pacific countries that have historically been considered ―easy targets for clinical trials are increasing their regulations While there is much potential to collaborate with regulatory bodies in Asia these are not the only government agencies with which a sponsor must work Each country has its own policies on insurance regulations import licenses and other factors that affect a sponsorlsquos ability to establish and run clinical trial sites Each should be reviewed before selecting countries in which to establish trial sites Cultural and Ethical Considerations Language barriers can be easily overcome by CRO partners with offices across Asia and they are the least of a sponsorlsquos worries when it comes to cultural differences More pressing are issues such as the fact that some Asian researchers may believe that their participation in a trial gives them the right to publish data on their findings while sponsors require at least some degree of control over the publication of trial data Such issues are best managed by thorough communication prior to the start of enrolment In certain countries cultural factors may positively impact a trial Ethical factors may also weigh on a sponsorlsquos decision to conduct trials in certain Asian countries There are certain diseases that present a serious unmet medical need specifically within Asian populations such as foot-and-mouth disease and such indications obviously lend themselves to Asian clinical tri-als Yet if a sponsor has no plans to launch a drug in certain Asian countries perhaps because the populations of those countries would not be able to afford the drug then conducting clinical research in those countries may present ethical challenges For the most part however sponsors are eager to launch their drugs into the rapidly growing Asian healthcare markets and Asian clinical trials are necessary to support this endeavour As mentioned initially the cost advan-tages of conducting clinical trials in Asia cannot be ignored as both large and small companies face pressures on their bottom lines But while costs are important they are not the only consideration About the Authors Jessica Liu MD is the general manager for Clinical Operations in China and North Asia at INC Research She previously managed international pro-jects out of the European headquarters office for a global CRO in Brussels Belgium Prior to that she worked for 15 years in the Chinese affiliates of several global pharmaceutical companies overseeing clinical operations pro-ject management and medical affairs She conducted and managed Phase I-IV clinical studies across multiple therapeutic areas Dr Liu started her ca-reer as a resident physician in the endocrinology Department of the Peking Union Medical College Hospital (PUMCH) in Beijing China She received her Medical Doctorate from the University of Beijing (China) and has a Di-ploma in Pharmaceutical Medicine from the University of Basel (Switzerland) Dr Liu is based in Beijing She can be reached at jialiuincresearchcom Garth Tierney is the regional general manager for Australia and South East Asia for INC Research Garth previously founded and managed Trident Clinical Research a CRO based throughout Australia New Zealand and In-dia After 14 years of operation Trident was acquired by INC Research in June 2011 Prior to founding and managing Trident Clinical Research Garth worked for 8 years in the clinical research industry in various senior manage-ment and operational management roles across several companies including a global CRO an Australian pharmaceutical company and two global phar-maceutical companies Garth has a pharmacology (University of NSW) and business administration (University of Adelaide) background and worked in hypertension research for several years before joining the pharmaceutical industry During this time Garth published various papers and won the Whelan prize (awarded by ASCEPT) He can be reached at gtierneyincresearchcom

References 1 IMS IMS Institute Forecasts Global Spending on Medicines to Reach

Nearly $11 Trillion by 2015 May 18 2011 2 Wm Blair Pharmaceutical Outsourcing Industry Analysis Jun 10

2010 3 CyberMedia Research-BioSpectrum Asia-Pacific CRO Survey 2011 4 Clinical Trials Action Group Report Commonwealth of Australia

2011 CPTR Yields Progress New Six-Way Agreement has Goal to Speed Development of TB Drug Combinations November 11 2011 The Critical Path to TB Drug Regimens (CPTR) announced this November an innovative agreement between AstraZeneca Bayer Sanofi Tibotec TB Alliance and the World Health Organization to share information on tuber-culosis (TB) compounds within their respective drug pipelines to quickly identify and work together to develop the most promising TB drug regimen regardless of sponsor The partnership facilitates a more collaborative ap-proach to TB drug development with the objective to dramatically speed the development of shorter safer and more effective multi-drug treatments that are urgently needed to control the global TB pandemic The agreement will enable information-sharing around scientific and clinical data on TB compounds in clinical development By sharing data partners can identify opportunities to test their compounds in combination speeding availability of future TB regimens The collaboration includes the majority of global sponsors with TB drugs in clinical development Under the agree-ment if two or more organizations choose to work together to further de-velop a regimen they will enter into a separate arrangement that defines the rights and responsibilities of each party CPTR is working closely with regulatory scientists at the US Food and Drug Administration European Medicines Agency and other regulatory bodies in China India and some countries in Africa to develop the tools that are needed to allow testing of new TB drugs in combination cutting years off the development timeline Under the leadership of the Critical Path Institute CPTRlsquos Regulatory Science Consortium focuses on establishing consensus on preferred standards methods and tools for developing new TB drug regimens and obtaining official acceptance from international regulatory authorities Source TB Alliance Pfizer Establishes the Cambridge Research Center September 01 2011 Pfizer Inc recently announced it has entered into a 10-year lease agreement with the Massachusetts Institute of Technology (MIT) for more than 180000 square feet in a new building under development in Cambridge Massachusetts Located at 610 Main Street South in Kendall Square the new site will be the future location of Pfizerlsquos Cardiovascular Metabolic and En-docrine Disease (CVMED) and Neuroscience Research Units The reloca-tion of the two Research Units will substantially boost Pfizerlsquos footprint in Cambridge making it the second largest biopharmaceutical company in Massachusetts in terms of jobs ―We were very deliberate in our choice to move to Cambridge MA as a key part of our RampD strategy By expanding our presence in one of the worldlsquos great centers of scientific and medical innovation we will provide the best environment for our researchers to invent the next generation of medicines in areas of greatest need such as Alzheimerlsquos disease schizophrenia diabe-tes and cardiovascular disease said Rod MacKenzie senior vice president and head of PharmaTherapeutics Research amp Development ―We intend to foster productive formal and informal collaborations between our drug dis-covery experts and the outstanding scientists of Cambridgelsquos world class institutions This is a very exciting period in Pfizer RampD Source Pfizer

20

21

Continued from page 19hellip UK Academia Given Access to Selected AstraZeneca Compounds December 11 2011 Following a unique landmark agreement between AstraZeneca and the UK Medical Research Council (MRC) a wide range of compounds will be made available to UK medical researchers next year In a new type of collabora-tion academia will be granted access to 22 clinical and preclinical com-pounds developed by AstraZeneca Though making individual compounds available to external academic investigators is not unusual the breadth and open-innovation nature of this collaboration is unique because it provides unprecedented access to well characterised clinical and preclinical candidate molecules to investigators across all UK academic institutions There is significant unmet need in diseases both within and outside Astra-Zenecalsquos current research focus This collaboration builds on the sizable in-vestment made in developing candidate drugs within AstraZeneca by help-ing researchers to explore their potential more broadly with the hope that they will find new future medicines It also helps AstraZeneca explore areas of unmet patient need beyond its current disease area focus leveraging great external science in a way that is highly flexible and cost effective The New Opportunities Innovative Medicines Unit (iMed) in AstraZeneca has been central in establishing this research collaboration with the MRC and has acted as the interface with the other AstraZeneca iMeds to agree which compounds would be eligible Clive Morris VP New Opportunities iMed said that ―This Open Innova-tionlsquo approach brings together the strengths of AstraZeneca the MRC and UK Academia into what I hope will be a really potent mix bringing forward really exciting new ideas that could transform our understanding of some diseases It highlights an openness to new scientific thinking and also places external scientific collaboration right at the heart of what we do It is also an excellent way to broaden our portfolio of activities into new diseases for As-traZeneca leveraging the wealth of expertise across UK academia AstraZeneca and the MRC will invite preclinical and clinical research pro-posals from across the UK academic community to investigate the com-pounds in a range of diseases with a view to finding new treatment oppor-tunities AstraZeneca will work with the academic collaborators to develop the best scientific proposals and the MRC will select the highest quality pro-posals for funding awarding up to pound10 million in total to fund the success-ful proposals The successful applicants will then work collaboratively with AstraZeneca to deliver the studies David Brennan AstraZenecalsquos Chief Executive Officer said ―Innovative collaborations are playing a crucial role in finding ways to unlock the poten-tial of new treatments The UK has a strong heritage of research excellence in life sciences We hope that in sharing these valuable compounds with aca-demic scientists through the MRC new discoveries will be made by explor-ing additional uses of these compounds Source AstraZeneca WIPO ReSearch A Neglected Tropical Diseases Initiative October 26 2011 The World Intellectual Property Organization (WIPO) in an unprecedented collaboration with leading pharmaceutical companies and BIO Ventures for Global Health (BVGH) recently launched the WIPO Re Search a new consortium where public and private sector organizations share valuable in-tellectual property (IP) and expertise with the global health research commu-nity to promote development of new drugs vaccines and diagnostics to treat neglected tropical diseases malaria and tuberculosis In WIPO ReSearch Alnylam Pharmaceuticals AstraZeneca Eisai GlaxoS-mithKline MSD1 Novartis Pfizer and Sanofi are collaborating with WIPO BVGH the US National Institutes of Health (NIH) and multiple non-profit research organizations These include the California Institute of Technology the Center for World Health amp Medicine the Drugs for Ne-glected Diseases initiative Fundaccedilatildeo Oswaldo Cruz (Fiocruz) Massachu-setts Institute of Technology Medicines for Malaria Venture PATH the South African Medical Research Council the Swiss Tropical and Public Health Institute the University of California Berkeley and the University of Dundee (UK)

―WIPO ReSearch is a ground breaking example of how a multi-stakeholder coalition can put IP to work for social benefit said WIPO Director Gen-

eral Francis Gurry ―By joining WIPO ReSearch companies and researchers commit to making selected intellectual property assets available under roy-alty-free licenses to qualified researchers anywhere in the world for research and development on neglected tropical diseases malaria and tuberculosis This commitment should accelerate the development of medicines vaccines and diagnostics for these diseases

According to the World Health Organization (WHO) neglected tropical diseases today impair the lives of an estimated 1 billion people The WHO provides technical advice to WIPO on public health issues and research pri-orities as appropriate

By providing a searchable public database of available intellectual property assets information and resources WIPO ReSearch facilitates new partner-ships with organizations that conduct research on treatments for neglected tropical diseases malaria and tuberculosis

Membership in WIPO ReSearch as a user provider or supporter is open to all organizations that endorse adhere to and support the projectlsquos Guiding Principles These Guiding Principles include the commitment that IP li-censed via WIPO ReSearch will be licensed on a royalty-free basis for re-search and development on neglected tropical diseases in any country and on a royalty-free basis for sale of neglected tropical disease medicines in or to least developed countries

―The innovative pharmaceutical industry has an important part to play in addressing unmet medical needs and increasing access to our collective pro-prietary information will help advance research into treatment options for these underserved diseases said David Brennan CEO of AstraZeneca and President of the International Federation of Pharmaceutical Manufacturers amp Associations (IFPMA) ―WIPO ReSearch has the potential to make a real impact on global health which is why we are proud to make all patents owned by AstraZeneca available to this important initiative for promoting the research and development of treatments for neglected tropical diseases anywhere in the world

The WIPO ReSearch database includes a wide variety of contributions rele-vant to malaria tuberculosis and other neglected tropical diseases including individual compounds and associated data screening hits from compound libraries and expertise and know-how in pharmaceutical research and devel-opment In addition WIPO ReSearch offers the opportunity for neglected tropical disease researchers to work directly with scientists at pharmaceutical companies to advance RampD on these diseases As WIPO ReSearch moves forward offerings from current partners will continue to grow and new pro-viders are expected to join to add to the wealth of information compounds and services available

―NIH licenses its patents to enable the private sector to develop diagnostics therapeutics and devices that improve public health said National Insti-tutes of Health Director Francis S Collins MD PhD ―We want to ensure that our biological materials and patents covering treatments or vaccines for neglected tropical diseases as with all diseases are available as broadly as possible to speed the development of new products for people who are most burdened by these diseases and WIPO ReSearch helps us to do this

The founding eight pharmaceutical companies WIPO BVGH and NIH are joined by a distinguished group of globally recognized institutions as provid-ers potential users and supporters of WIPO ReSearch (see annex) BVGH will manage the WIPO ReSearch Partnership Hub which will facilitate rela-tionships between the pharmaceutical company providers and new users

―In our role as administrator of the WIPO ReSearch Partnership Hub BIO Ventures for Global Health is excited to bring these new opportunities to neglected disease researchers around the world to accelerate their work in this area of critical unmet need said Don Joseph Chief Operating Officer of BVGH ―As both present and future providers evaluate their internal data and IP with the goal to provide focused information which they believe will best serve the neglected tropical disease research and development commu-nity WIPO ReSearch will build on previous RampD investments to speed the development of drugs vaccines and diagnostics for the neglected diseases that disproportionately impact people living in resource-poor countries Source WIPO

Page 3: Bio Outsourcing Asia: Volume 1 Issue 3 2011.pdf · TB drug trials. Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies

3

Emerging Models of Open Innovation in the Bioconvergence Paradigm 2 Day Workshop September 2012 The biopharmaceutical industry faces a crisis in productivity with rapidly rising costs for RampD but declining results To address these challenges in both developed and under-developed markets pre-competitive discovery based consortia programs for open innovation and crowd-sourcing are being employed Progressing beyond the biopharmaceutical industry into the emerging bioconvergence paradigm this training course has the objective of enabling stakeholders to understand emerging mod-els of open innovation in the bioconvergence space-- where the biotechnology pharmaceutical chemical medical devices and di-agnostics nanotechnology and ICT sectors merge The course adopts the nuanced perspectives of knowledge management and learning in open innovation in this paradigm As an additional feature the course will explore opportunities for capacity devel-opment at the bottom of the pyramid through open innovation strategies About BioEndeavor There are several complexities driving open innovation in the life sciences including knowledge complexitiesmdashwith knowledge exhibiting high

complementarity and high applicability across domains technological complexities associated with interdependen-

cies between technologies the need for sophisticated equip-ment as well as the scope and scale of research

and commercialization complexities associated with technol-ogy transfer and product development

BioEndeavor has the objective to understand and develop models of open innovation that have their application in bioconvergence domains By using a network strategy BioEndeavor brings to-gether stakeholders to collectively conduct and share research on open innovation in the life sciences wwwbioendeavornet Contact Information Dr Minna Allarakhia Director BioEndeavor minnabioendeavornet

Workshop Topics Understanding Open Innovation Models

Objective and Open Innovation Model Mapping (Sectoral and Phase Impact) Assessing Participants (Types Viability) Relationship Management Knowledge Management (Access Dissemination IT Infrastructure) Learning Strategies (Learning by DoingLearning by Using) Knowledge Appropriation (IP Management Technological Isolation) Capacity Development-Developed Vs Developing MarketsNeglected Diseases

4

5

AstraZenecamdashMaking Partnerships Work for Product Development at the Bottom of the Pyramid AstraZeneca and other pharmaceutical companies government agencies NGOs donors and academics have joined a collaboration led by the Bill and Melinda Gates Foundation the TB Alliance and the Critical Path Institute to explore funding mechanisms and support for late-stage clinical trials Currently there are nine promising TB compounds from at least six antibiotic classes in development including one compound from Astra-Zeneca AstraZenecalsquos dedicated research facility in Bangalore India is a key component in this initiative The initiative offers a model for other multi-stakeholder partnerships working to improve health at the bottom of the pyramid (AstraZeneca 2011) Promising compounds identified in this col-laboration will also be tested in combination with other therapies as part of the Critical Path to TB Drug Regimensmdasha cross-sector initiative with the objective to speed up the development and delivery of TB drug regimens to patients (AstraZeneca 2010) ―Collaboration is absolutely vital to developing the tools needed to truly revolutionize the way TB is treated and overcome the global TB epidemic said Mel Spigelman MD President and CEO TB Alliance ―AstraZeneca has a well-established TB drug discovery program and is a crucial participant in the Critical Path to New TB Regimens Together our research promises to bring important advances to TB patients in need (AstraZeneca 2010) Les Hughes AstraZenecalsquos Vice President of Infection Discovery said ―AstraZeneca is building a leading franchise in the treatment of infectious diseases both through our own in-house research as well as through col-laborations This collaboration is part of the global partnership that will be needed to conquer the TB epidemic We are excited to be working with the TB Alliance to help move forward the drug discovery program and quickly speed promising candidates into clinical development (AstraZeneca 2010) Augmenting its research in Bangalore AstraZeneca recently joined a consor-tiummdashthe More Medicines for Tuberculosis (MM4TB)mdashto fight TB with French rival Sanofi-aventis the University of Cambridge and other research organizations The MM4TB consortium has the goal of developing new drugs for successful and shorter treatment for TB (Kollewe 2011) The Eacutecole Polytechnique Feacutedeacuterale de Lausanne (EPFL) along with the universi-ties of Pavia in Italy and Uppsala in Sweden are also participants in the con-sortium AstraZeneca is sharing its compounds and expertise Research will be carried out at a London medical school and the John Innes Centre in Norwich as well as in Russia India and South Africa The aim is to have 10 to 20 compounds in the pipeline to develop two or three successful TB drugs that will be given as a cocktail to patients (Kollewe 2011) In parallel AstraZeneca announced its partnership with Medicines for Malaria (MMV) in 2010 Under the terms of the agreement scientists work-ing with MMV will screen 500000 compounds in AstraZenecalsquos unique li-brary for activity against P falciparum the most lethal of malaria parasites (MMV 2010) Tim Wells MMVlsquos Chief Scientific Officer said ―AstraZeneca has had a long standing interest in neglected disease and we are delighted to be able to collaborate with the centre in Bangalore on this exciting project in malariahellip (MMV 2010) The Critical Path to TB Drug Regimes (CPTR) The Critical Path to TB Drug Regimens (CPTR) is a broad collaboration of pharmaceutical companies government regulatory and multilateral agen-cies donors academia advocates and NGOs that aims to accelerate the development of new safe and highly effective tuberculosis (TB) treatment regimens with shorter therapy durations (CPTR 2011) AstraZeneca is among several partners that signed the CPTR Statement of Principles on March 18 2010 The partners have agreed to

Encourage information sharing and collaboration among interna-tional organizations industry and regulatory agencies to innovate and accelerate TB drug development and get important new thera-pies to patients

Promote the development of new regulatory approaches that sup-port innovative research into TB therapeutics evaluate new TB drug combinations safely and effectively and reinforce current guidelines for development of effective drug combinations

Work together using industry best practices to test TB drug can-didates in combination regimens beginning early in the develop-ment process

Create a collaborative coordinating structure to oversee this initia-tive

Explore creative new funding streams for developing novel com-

bination TB therapies Advance efforts to utilize existing clinical trial sites for TB while

also building clinical trial site capacity for late-stage combination TB drug trials

Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies for patients in need

(CPTR 2011) On November 9 2011 the Critical Path to TB Drug Regimens (CPTR) an-nounced an innovative agreement between AstraZeneca Bayer Sanofi Tibotec TB Alliance and the World Health Organization The collaboration will enable information-sharing around scientific and clinical data on TB compounds in clinical development By sharing data it is anticipated that partners can identify opportunities to test their compounds in combination If two or more organizations choose to work together to further develop a regimen they can then enter into a separate arrangement that defines the rights and responsibilities of each party ―This initiative is a further example of industry working together and with others to share knowledge and exper-tise for the benefit of the wider society said David Brennan Chief Execu-tive Officer of AstraZeneca (CPTR Yields Progress 2011) The More Medicines for Tuberculosis (MM4TB) Consortium AstraZeneca is also one of 25 partners from 13 countries in Europe America Asia and Africa to join the More Medicines for Tuberculosis (MM4TB) consortium Members include

The Eacutecole Polytechnique Feacutedeacuterale de Lausanne (EPFL) Pharmaceutical companies AstraZeneca and Sanofi-aventis Diagnostics company Alere Four SMEsmdashVichem Cellworks CDD and Tydock Twelve universities including Uppsala Pavia Cambridge Queen

Marys London Padova Comenius Piemonte Orientale the Basque Country Zaragoza ETH Zurich and Cape Town

Five research institutesmdashInstitute Pasteur in Paris Institut Pasteur of Lille the Bach Institute of Biochemistry the John Innes Centre and the Indian Academy of Sciences

And the Scientific management company SCIPROM (MM4TB 2011) MM4TB evolved from New Medicines for TB (MM4TB) a successful pro-ject which delivered a candidate drug for clinical development two years ahead of schedule Building on this MM4TB will continue the search for new drugs for successful and shorter treatment of TB (AstraZeneca 2011) Brennan urged ministers at the Asian Business Leaders conference in 2010 to work with the pharmaceutical industry to share the risks and costs in de-veloping effective antibiotics and other treatments He stressed the impor-tance of public sector bodies and NGOs teaming up with pharmaceutical groups to tackle the problem of antibiotic resistance Along with Novartis and Merck AstraZeneca is one of few companies that are investing in the area (Kollewe 2010) Development research will be done primarily in coun-tries with high rates of infection and AstraZeneca will collaborate with exter-nal partners with relevant skills and expertise While the company will apply for patent protection the organization seeks partnership arrangements with global and local organizations to make TB treatments widely available in the developing world through supply strategies that minimize cost of manufac-ture and delivery (AstraZeneca 2011) Partnership with Medicines for Malaria (MMV) In parallel AstraZeneca announced its partnership with Medicines for Malaria (MMV) in 2010 The agreement permitted MMV to access Astra-Zenecalsquos extensive compound library MMV will seek to identify promising compounds with the potential to treat malaria including drug resistant strains of the disease MMV has the objective to discover develop and de-liver new effective and affordable anti-malarial drugs with simpler dosing regimens thereby encouraging patient compliance and helping reduce the risk of resistance developing The ultimate goal is to find a one-dose cure for malaria (MMV 2010)

6

Under the terms of the agreement scientists working with MMV will screen 500000 compounds in AstraZenecalsquos unique library for activity against P falciparum the most lethal of malaria parasites Prof V Avery at the Eskitis Institute for Cell and Molecular Therapies at Griffith University in Brisbane Australia will conduct the screening on behalf of MMV Promising com-pounds identified through the screening process will be starting points for antimalarial drug discovery projects These compounds will be progressed through a discovery cascade at AstraZenecalsquos RampD facility in Bangalore India with the aim of identifying suitable candidates for clinical testing (MMV 2010) David Brennan AstraZenecalsquos CEO said ―hellipOpening up our compound library to MMV is an important step toward addressing the enormous unmet medical needs of the developing world AstraZeneca is committed to being part of the solution and we look forward to working with MMV and all those with a stake in global health (MMV 2010) Tim Wells MMVlsquos Chief Scientific Officer stated that ―hellipthe additional advantage is the Indian perspective India has millions of cases of malaria per year and in addition has a balance between Plasmodium falciparum and Plasmodium vivax Understanding and eliminating Indian malaria is one of the keys to eliminating malaria worldwide (MMV 2010) Opening up Proprietary Assets AstraZeneca recently agreed to join the World Intellectual Property Organizationlsquos (WIPO) WIPO ReSearch initiative in what is an unprece-dented collaboration between the private sector and public partners WIPO ReSearch will present to the public a searchable database of available IP as-sets and resources for use in neglected tropical disease (NTD) research The commitment includes the provision that IP licensed via WIPO ReSearch will be licensed on a royalty-free basis for research and development for ne-glected tropical diseases in any country It will also be licensed on a royalty-free basis for sales of neglected tropical disease medicines in or to least de-veloped countries AstraZeneca has committed to making its entire patent portfolio available for use in NTD RampD through WIPO ReSearch In addi-tion AstraZeneca will provide access to its high throughput screening tech-nologies compound collection and global laboratories AstraZeneca hopes to increase opportunities for scientists to work at it facilities around the world and encourage scientific mentoring and use of innovative technologies

by guest scientists researching treatments for NTDs (AstraZeneca 2011) Through a combination of open innovation and open source initiatives AstraZeneca shares the joint goal of speeding up the discovery and develop-ment of new potential treatments for NTDs Time will tell which strategies prove most effective in terms of both product development and product access (Figure 1) References 1 AstraZeneca and MMV join efforts in the fight against malaria MMV

June 2010 2 CPTR httpcptrinitiativeorg 2011 3 CPTR Yields Progress November 2011 4 Kollewe J AstraZeneca joins fight against tuberculosis

The Guardian March 2011 5 Leading pharmaceutical companies amp research institutions offer IP

and expertise for use in treating neglected tropical diseases AstraZeneca October 2011

6 MM4TB wwwmm4tborg 2011 7 Partnering is a Priority AstraZeneca 2011 8 Tackling TB AstraZeneca 2011 9 The Global Alliance for TB Drug Development (TB Alliance) and

AstraZeneca Announced that they have Entered into a Research Col-laboration Agreement to Accelerate the Discovery Development and Clinical Use of Drugs Against Tuberculosis (TB) AstraZeneca 2010

Figure 1 Open Innovation and Open Source Strategies for NTDs at AstraZeneca

AstraZeneca Global Open Source Strategy

WIPO ReSearch Alliance Sharing of Compounds

Technology Access to IP

AstraZeneca Malaria Open Innovation

Strategy Dedicated Research Facility

Bangalore India

AstraZeneca Global NTD Strategy

Guest Researcher Access to Global Facilities

Mentorship Opportunities for Research in NTDs

AstraZeneca TB Open Innovation Strategy Dedicated Research

Facility Bangalore India CPTR Alliance

7

8

Pfizerrsquos Open Innovation Strategy in Asia

Pfizer has been targeting Asian markets since the early 1950s and is one of the largest US-headquartered pharmaceutical companies in Asia One key issue is the disassociation between drug research and sales It has increas-ingly become apparent that the majority of RampD is conducted outside Asia while products are sold within target Asian markets The Asia Research Ac-celerator strategy was designed to address this concernmdashwith the goal of advancing drug discovery programs in Asia while complementing existing research efforts in North America and Europe (Pfizer Global Opportuni-ties 2010) Through this initiative Pfizer invests in Asia-based research efforts that may yield either new candidates for medicines or new pathways for technology development In 2010 Pfizer either launched or expanded collaborative ef-forts throughout the region with major Asia-based researchers such as WuXi AppTec Crown Bioscience Cumencor HD Biosciences and PharmaResources (Shanghai) Co as well as through academic partnerships with Fudan University Shanghai Jiao Tong University and Shanghai Institutes for Biological Sciences (Pfizer Global Opportunities 2010) This global network of industry and academic alliances is stimulating bio-medical advances into diseases that are more prevalent in Asia than in other parts of the world For example Pfizer currently has partnerships with the Korea Research Institute of Bioscience and Biotechnology and with the Asian Cancer Research Group (an independent not-for-profit company es-tablished by Pfizer Eli Lilly and Merck) to investigate treatments and to un-derstand certain types of gastric liver head and neck cancers that have higher prevalence rates in Asia than in places such as North America and Western Europe Here we see capacity development in emerging markets with the objective to address the health concerns of the Asian patient (Pfizer Global Opportunities 2010) An Open Source Strategy for New Drug Discovery In 2010 Eli Lilly and Company Merck and Pfizer Inc formed the Asian Cancer Research Group Inc (ACRG) an independent not-for-profit com-pany The ACRGlsquos formation represents a prime example of a growing trend in pre-competitive collaboration in which large pharmaceutical compa-nies combine their resources and expertise to rapidly increase knowledge of disease and disease processes The goal of the ACRG is to improve the knowledge of cancers prevalent in Asia and to accelerate drug discovery ef-forts by freely sharing the resulting data with the scientific community Initially the ACRG will focus on lung and gastric cancers two of the most common forms of cancer in Asia As many as 40 percent of patients with lung cancer in Asia demonstrate a mutation that is relatively rare in Western patients (EGFR mutation) This mutation has resulted in differences in re-sponse to some types of agents suggesting that a different research ap-proach is needed for developing treatments for certain patient populations Over the next two years Lilly Merck and Pfizer have committed to create one of the most extensive pharmacogenomic cancer databases known to date This database will be composed of data from approximately 2000 tis-sue samples from patients with lung and gastric cancer that will be made publicly available to researchers and over time further populated with clini-cal data from a longitudinal analysis of patients (Pfizer 2010) Ties to Academia In the past six years Pfizer RampD China has developed a large collaborative research network covering basic research institutes contract research or-ganizations and smaller biotech and pharmaceutical firms Pfizerlsquos China Research and Development Center a state-of-the-art facility that provides global drug development support capabilities research collaborations and strategic alliance opportunities to China and the Asian region is based in Shanghai It is the largest RampD center for a multinational pharmaceutical company in China The Center works alongside Chinese partners to develop the skills and talents of local scientists biostatisticians medical professionals pharmacists and others with expertise in life sciences The Center collabo-rates with leading academic researchers and top institutes in China including Peking University Tsinghua University Shanghai Jiaotong University and multiple institutes of the Chinese Academy of Sciences (Pfizer 2009) Pfizer signed a deal in July 2009 with the Shanghai Institute of Biological Sciences (Sibs) As part of this deal Pfizer will provide US$500000 each year for three years to fund early stage joint research in life sciences and new drug development between Sibs scientists and Pfizer scientists Scientists in basic research institutes learn drug development skills from industry collabo-

rators while Pfizer scientists learn from and gain access to ideas of the aca-demics Though the funding is small the joint research is supported by Pfizerlsquos global resources For example proposals are revised to become more feasible and workable The researchers also receive assistance on intel-lectual property managementmdashhence the attraction of the programme for Chinese life scientists (Jia 2010) ―Our choice of Shanghai Institutes for Biological Sciences as a research part-ner demonstrates our high regard for the scientific expertise and capabilities of SIBS said Martin Mackay President Pfizer Global Research and Devel-opment ―China is increasingly seen as a source for innovative healthcare research and we are proud of our ongoing investment in the outstanding science and people here Research projects will be selected and developed jointly by Pfizer and SIBS scientists (Pfizer 2009) In parallel Pfizer has made a significant commitment to South Korean re-searchers The company signed a memorandum of understanding with the countrys Ministry of Health and Welfare in 2007 agreeing to invest $300 million in RampD in the country At this time Pfizer formed a strategic re-search partnership with the Korea Research Institute of Bioscience and Biotechnology (Ray 2010) Pfizer and the Korea Research Institute for Bioscience and Biotechnology (KRIBB) expanded the earlier agreement in May of 2010 to jointly develop drugs for liver and gastric cancer and to in-vest a total of KRW 300 billion (U$240 million) from 2008 to 2012 (Moffat 2010) Continuing its focus on pharmacogenomics Pfizer also recently formed a research partnership with Samsung Medical Centre in Seoul for the analysis of Korean liver cancer patients in order to generate gene expression profiles for the condition (Adams 2010) Choi Han-Yong president of Samsung Medical Centre said ―We are pleased to have an opportunity to work with the worldlsquos number one phar-maceutical company Pfizer to better understand cancer in Korean patients with the goal of being able to send a new message of hope for patients with liver cancer across the world especially in Asia (Adams 2010) Centers for Therapeutic Innovation (CTI) Pfizer recently announced the formation of a network of academic collabo-rators to accelerate the translation of basic science into biologics-based drugs According to Mikael Dolsten MD PhD president of Pfizer Worldwide Research amp Development the Centers represents a novel open innovation paradigm combining the competencies of top academic research institutions with Pfizerlsquos leading drug development capabilities and research technologies (Pfizer 2010) The Centers for Therapeutic Innovation (CTI) will initially focus on collaborations within the US Pfizer expects to expand into Europe and Asia in 2012 Each Center will be governed by a Joint Steering Committee (JSC) comprised of Pfizer and Academic Medical Cen-ter (AMC) representatives who will provide leadership and evaluate the suc-cess of each program through discovery and early stage clinical develop-ment Through this innovation model Pfizer will have the opportunity to broaden its pipeline with novel candidate drugs to treat diseasesmdashaddressing unmet medical need (Pfizer 2010) A key aspect of the Centers for Therapeutic Innovation is Pfizerlsquos commit-ment to establishing local Centers at each partner site The partnerships will follow a venture capital-funded biotechnology start-up model whereby Pfizer funds preclinical and clinical development programs and offers equi-table intellectual property and ownership rights as well as broad rights to publication When programs are successful and advance according to the terms determined by a joint steering committee Pfizer will grant milestone payments and royalties (Rockefeller University 2011) ―The concept is to make a transition away from the vertically integrated RampD model into smaller decentralized groups of a truly global nature says Pfizerlsquos Anthony Coyle who is heading up the program out of the com-panys Cambridge Massachusetts facilities (Ratner 2011) The CTI will provide the primary investigator (PI) with funding (postdoctoral support) technical support (dedicated Pfizer personnel with expertise in protein sciences and development) and infrastructure (laboratory space libraries robots) (Pfizer 2011) The incentives operating model and goals for participating primary investigators and Pfizer colleagues will be designed to support achieving a positive Proof-of-Mechanism study in humans (PoM) PoM studies are small investigator-led clinical trials that typically involve 10 to 30 human subjects and have defined mechanistic or therapeutic endpoints (Pfizer 2011)

9

Partnerships Reaching Down the Value Chain In 2008 WuXi PharmaTech signed a three year deal with Pfizer Under the new collaboration agreement WuXi PharmaTech in partnership with Pfizer will establish ADME assays to provide in vitro screening services on com-pounds WuXi PharmaTech synthesizes for Pfizer (WuXi 2008) WuXi PharmaTech and Pfizer have previously collaborated on synthetic chemistry parallel medicinal chemistry ADME and bioanalytical services ―This new agreement further strengthens our already productive relationship with Pfizer one of our largest customers for many years and it is the direct result of our research capability and firm commitment to quality and customer sat-isfaction according to Ge Li PhD chairman and CEO of WuXi PharmaTech (GEN News 2008) In 2009 Pfizer and Crown Bioscience Inc (Crown) announced a collabora-tion to research and develop novel therapeutics for Asian cancers Under the terms of this agreement Crown will receive an upfront payment and re-search funding as well as milestone payments based on the achievement of preclinical and clinical goals The companies will work together to discover and advance multiple candidates for clinical development The work will take place at Crownlsquos new research facility located in Taicang (near Shang-hai) China (Pfizer 2009) ―I am delighted to be collaborating with Pfizerlsquos exceptional oncology group says Alex Wu CEO of Crown ―I am also very happy that Pfizer is focusing on and dedicating resources to address a very important unmet medical need for the Asian populations This new collaboration extends an already very successful partnership between Crown and Pfizer and further demonstrates Crownlsquos commitment to becoming an outstanding cancer re-search company in Asia (Pfizer 2009) Reaching out to the bottom of the pyramid MicuRx Pharmaceuticals Inc a biopharmaceutical company (with its presence in San Francisco US and Shanghai China) dedicated to the development of antibiotics to treat drug-resistant bacteria and Cumencor Pharmaceuticals Inc recently announced that the companies have entered a collaboration with Pfizer (NYSE PFE) to discover novel therapeutic agents to treat multi-drug resistant tuberculosis (MDR-TB) Cumencor Pharmaceuticals is a China-based biotechnology company applying MicuRxlsquos proprietary technology platform to discover and develop novel antibiotics for MDR-TB (PR Newswire April 2010) Under the terms of the agreement Pfizer will provide an upfront payment funding for the discovery and preclinical development of novel antibiotics to treat MDR-TB and payments linked to the development and commerciali-zation (including royalty payments on sales) of any antibiotics developed through the collaboration All collaboration research will be conducted at the ZhangJiang High-Tech Park in Shanghai China (PR Newswire April 2010) ―MicuRxlsquos novel approach to developing antibiotics for the treatment of drug-resistant bacteria and their existing technology know-how and exper-tise provide the basis for this collaboration said Steve Yang PhD Vice President and Head of Pfizers Asia Research and Development organiza-tion ―We expect that any compounds resulting from the collaboration will complement our portfolio of anti-infective agents and build our global pres-ence in the emerging pharmaceutical markets of Asia and beyond (PR

Newswire April 2010) Building Intellectual Capital in Asia through Open Innovation Pfizerlsquos open innovation strategy in Asia has a strong capacity development focusmdashnamely the development of intellectual capacity in Asia Beginning with a focus on health issues directly affecting the Asian patient Pfizer is not only devoting its resources to such diseases but through the ACRG will widely share pharmacogenomic information pertaining to lung and gastric cancers Supporting this endeavour are collaborations with the Korea Research Institute for Bioscience and Biotechnology (KRIBB) and the Samsung Medical Centre in Seoul Through its association with the Shanghai Institute of Biological Sciences (Sibs) and the planned Centers of Therapeutic Innovation Pfizer hopes to fund early stage joint discovery and clinical research in life sciences and new drug development Scientists in ba-sic research institutes will learn drug development skills from industry col-laborators while Pfizer scientists learn from and gain access to ideas of the academics Training opportunities in the area of intellectual property man-agement have been equally attractive to scientists Knowledge sharing knowledge development and exchange should support a vibrant life sciences sector in emerging markets in Asiamdashwith the goals of addressing chronic and neglected diseases that are endemic to Asia (Figure 1) References 1 Adams B Pfizer form liver cancer research partnership in Korea InPharm

July 2010 2 Jia H Though the funding is small the joint research is supported by

Pfizerlsquos global resources Chemistry World October-December 2010 3 MicuRx Pharmaceuticals and Cumencor Pharmaceuticals Partner with Pfizer

to Discover and Develop Antibiotics for Drug-Resistant Tuberculosis in China PR Newswire April 2010

4 Moffat B Global pharma eyeing Korean acquisitions as nation becomes test-bed Private Equity Korea May 2010

5 Pfizer And Crown Bioscience Announce A Collaboration To Research And Develop New Treatments For Asian Cancers Pfizer 2009 Pfizer Announces Partnership With Shanghai Institutes For Biological Sci-ences For Drug Discovery Activities BusinessWire July 2009

6 Pfizer Employs WuXi PharmaTech for In Vitro ADME Services GEN News November 2008

7 Pfizer Global Opportunities Annual Review 2010 8 Pfizer Launches Global Centers for Therapeutic Innovation a Network of

Research Partnerships With University of California San Francisco Pfizer November 2010

9 Publicly Available Genomic Database of Profiled Tumor Samples to Provide a Resource for Biomedical Researchers Worldwide Lillycom February 2010

10 Ratner M 2011 Pfizer reaches out to academiamdashagain Nature Biotechnol-ogy 29 3-4

11 Ray T PfizerSamsung Collaboration to Focus on PGx Strategies to Per-sonalize Liver Cancer Treatments in Korea Pharmacogenomics Reporter July 2010

12 Rockefeller joins Pfizerlsquos Global Centers For Therapeutic Innovation The Rockefeller University April 2011

13 WuXi PharmaTech Signs New Collaboration Agreement With Pfizer WuXi AppTec November 2008

14 wwwpfizercom 2011

Figure 1 A Broad Asian Open Innovation Strategy at Pfizer

Pfizerrsquos Open Source Strategy

Asian Cancer Research Group Inc (ACRG)

Reaching Down the Value Chain Alliance with WuXi

PharmaTech Alliance with Crown

Biosciences Alliance with MicuRx Pharmaceuticals

and Cumencor Pharmaceuticals

Ties to AcademiamdashIntellectual Capital Development

China Research and Development Center

Sibs Alliance KRIBB Alliance

Samsung Medical Centre Alliance CTI

10

11

A Networked Open Innovation Strategy The SpringFire Laboratory Network Technological complexities and market pressures have increased the degree to which companies are outsourcing to highly specialized technology driven companies However conventional outsourcing on a project-by-project ba-sis is strategically insufficient in this era A new type of structure-the virtual or networked outsourcing company provides access to customized solutions and is focused on long-term strategic partnering The formation of this new networked outsourcing company structure is driven by the need to access a broad range of expertise and the shift from narrowly focused specialized outsourcing companies to ―all inclusive outsourcing companies The virtual company is much more agile responsive to paradigm shifts and regulatory changes Accessible expertise can cover drug discovery from the earliest stage of lead compound identification and development through preclinical clinical phases manufacturing global registration post-marketing and line-extension studies The virtual outsourcing company enables access to a multidisciplinary team where the appropriate skill sets and expertise can be available at each stage of the biopharmaceutical value chain Appropriate teams are quickly assem-bled to manage issues as they arise In contrast large vertically integrated outsourcing companies can face many of the same problems associated with the fully integrated biopharmaceutical company including integration coor-dination and communication problems For each team the most suitable individuals from the most appropriate outsourcing firms within the network are selected on the basis of skills experience and fit with the project or product goals client and other individuals on the team Virtual outsourcing companies manage the various contracts budgets and relationships for their clients Lower project risk exists as dependency on a single supplier relation-ship is removed A virtual company must add value and not act simply as an intermediary be-tween contractors and large companies To operate successfully within the virtual environment requires strong industrial and academic networks effec-tive project management skills highly developed intellectual property man-agement skills and the ability to bring together partners to enable drug devel-opment Teams of experienced suppliers and experts are tailored to fulfill project or product requirements and are led by a dedicated senior project manager to ensure knowledge coordination and integration Forming the right partnerships and teams as well as managing operational processes in-crease the effectiveness of RampD outsourcing and ensure that the associated cost time and risk-sharing benefits are enjoyed by the Sponsor Models at Work The SpringFire Laboratory Network SpringFire Laboratory Network is a firm with the goal to match pharmaceu-tical medical device and biotech companies with clinical laboratories to pro-vide clinical trial testing solutions SpringFire Laboratory Network is unique in representing a network of independent non-competing high complexity laboratories collectively providing testing offerings to the clinical trial mar-ketplace The founders discovered that there was a strong desire by Sponsors and CROs to have choices in laboratories other than large laboratory companies with rigid requirements and little flexibility or educational institutions that were expensive and less responsive to external clients However there was little incentive for independent laboratories to pursue clinical trials testing given the large upfront costs to start a business development effort and the significantly different and lengthy sales cycle in clinical trials In an attempt to bridge the gap between the strong need for laboratory choices and the reluctance of independent laboratories to shoulder the bur-dens of clinical trials initiatives SpringFire Laboratory Network was estab-lished The network includes hand-selected independent laboratories to pro-vide testing services to clinical trial Sponsors and CROs The SpringFire team provides business development services for the network laboratories as well as expert knowledge around project management and clinical trial-specific operations The laboratories are non-competing and as such they share costs and best practices with one another without competing for the work ―The clinical trial marketplace has a need for esoteric laboratories to respond to its ever-expanding requests states Jim McClintic Managing Partner of SpringFire Laboratory Network

Selecting and Matching Network Participants SpringFire Laboratory Network is committed to a successful outcome for each drug or device development project The network of laboratories is made up of hand-selected ―Centers of Excellence The affiliated laborato-ries provide solutions in sub-specialized anatomical pathology and highly specialized clinical diagnostic testing along with state of the science micro-array testing SpringFirelsquos core team works with all affiliated laboratories to ensure their internal operations meet or exceed the unique regulatory and data manage-ment needs of clinical trials Each laboratory has demonstrated their abilities to provide customized quality results for clinical investigations on an inter-national basis The SpringFire affiliated laboratories are highly regarded in their specialized areas of testing expertise Each affiliate laboratory is evalu-ated to determine their fitness for work in the clinical trials arena A variety of characteristics are considered during a 2-day on site assessment including

Past clinical trial experience Quality laboratory processes Scientific and medical leadership Platform and technology maturity Project management Storage space options Data management capabilities Commitment to providing quality testing to clinical trials Sponsors

or CROs Since most of the laboratories are non-competing the matching process is usually based on the services requested and which lab provides those ser-vices In the event that more than one laboratory provides the requested tests or services SpringFire works with the laboratory that provides the most comprehensive set of tests or services In the event that no single lab performs all of the testing SpringFire will facilitate for two or more of the network laboratories to work together on a study Current Members of the Network SpringFire Laboratory Networklsquos current member laboratories are based in North America The Network provides testing services for both domestic and international study sites and is open to working with laboratories and sponsors around the globe Current members include

With a combined menu of more than 1000 specialty tests SpringFire offers Sponsors and CROs expertise and testing services in numerous therapeutic areas including anatomical pathology coagulation advanced lipids molecu-lar genetics and womenlsquos health The SpringFire network of laboratories col-lectively represent over 90 years of experience in the clinical marketplace while successfully completing more than 250 clinical trials Governance of the Network The SpringFire team is much more than business development The team works closely with each laboratory before during and after the study From the start the team works with each laboratory to build a competitive and timely proposal With the awarding of a contract the SpringFire team re-views and assists with negotiations and contract development During the study start-up phase the team facilitates on-going communications and lo-gistics to ensure the effective completion of tasks including routinely follow-ing up with both the laboratory and Sponsor or CRO to ensure good com-munication and suitable quality laboratory services When the study is con-cluded all parties are provided with a summary and an opportunity to share their experiences thoughts and ideas on the study and the laboratory ser-vices (Figure 1)

Laboratory Specialization

D-Path Dermatopathology

GI Pathology Gastrointestinal and liver pathology

ITxM Diagnostics Coagulation testing

Atherotech Diagnostics Advanced lipids

Baylor College of Medicinersquos Molecular Genetics Laboratories

Pharmacogenomics cytogenetics and medical genetic diagnostics

Baylor College of Medicinersquos Cancer Genetics Laboratory

Cancer-related genetics testing

12

Figure 1 Interactions in the SpringFire Laboratory Network Knowledge management is vital both to the effective working of the project team but also to the efficient transfer of information to and from the Sponsor as well as to external audiences such as site investigators regulatory authorities and potential licensees Outsourcing multiple stages of the drug product life cycle is critical for those companies that require access to expertise and technology in a rapidly chang-ing paradigm without the risk and cost associated with internal development Both young and small biotechnology companies and large traditional phar-maceutical companies can benefit from the model of drug discovery and development offered by organizations such as the SpringFire Laboratory Network

SPRINGFIRE

CORE TEAMPartner Selection

Best Practice Sharing

Baylor College of

Medicines

Cancer Genetics

Laboratory

GI Pathology

D-Path

ITxM Diagnostics

Baylor College of

Medicines

Molecular Genetics

Laboratories

Atherotech

Diagnostics

SPONSORCRO

PARTNER

MATCHING

GOVERNANCE

LESSON

KNOWLEDGE

TRANSFER

UPCOMING BIO PARTNERSHIPS ASIA 2012 CALENDAR

EDITORIAL

TRENDS AND ANALYSIS Articles that run 1500-2000 words and explore trends across the value chain describe opportunities in emerging Asian markets outline policy changes enabling partnerships in these markets and discuss the management of such partnerships

CASE STUDIES Company case studies that run 500-1000 words and explore partnerships across the drug discovery and development value chain

Submit text and electronic images with a resolution of 300 dpi or better We cannot guarantee placement in a particular issue The staff may schedule an entry to coincide with a certain issues editorial theme

COMPANY PROFILES Service provider profiles Send the following information Company name

contact information description services offered markets served and partnerships sought Also send a company logo

TECHNOLOGY PROFILES Technology licensing opportunities Send the following information Technology background areas of application competitive advantages stage of development intellectual property status partnerships sought and contact

information Please forward an image if applicable

NEWS RELEASES Updates on deals partnerships opportunities Send a press release and a company logo

MONTH FEATURE STORIES TRENDS AND ANALYSIS

CASE STUDIES

February 2012 New Models of Open Innovation in Asia

Business Model Analysis

Company Profiles

May 2012 Cluster Formation and Participation in Asia

Case Analysis Cluster Profiles

August 2012 Partnerships and Biopharmaceutical Capacity

Development in Asia

Case Analysis Company Profiles

November 2012 Transferring the Lessons from Asia to the Bottom of

the Pyramid

Lessons from India China Singapore

Middle East

Company Profiles

13

14

15

Convergence Innovation Development at the Intersection of Disciplines Organizations and Products Convergence Innovation is the paradigm where discovery and technology creation occur at the intersection of multiple disciplines and organizations Specifically convergence between the chemical biological cognitive physi-cal and information sciences is evident Firms and researchers will cross the boundaries between these disciplines to create technological value--finding solutions to address health environmental and energy challenges In parallel will be emergence of new models of collaboration to enable knowledge crea-tion and knowledge dissemination Central to Convergence Innovation will be a determination of the common value of knowledge versus the private value of knowledge across the associated disciplinesmdashwith the goal of ad-vancing and commercializing technology Levels of Convergence Convergence can be considered at three levelsmdashnamely convergence in the sources of knowledge for research convergence in organizational forms to enable technology development and convergence at the product level with the embodiment of knowledge in complementary products For example while nanotechnology research has been shown to have a dominant focus on material sciences additional analysis has demonstrated that nano-based research increasingly draws its knowledge from other areas (Porter and Youtie 2009) Specifically Porter and Youtie (2009) reveal that while nano-based publications center on materials science (including chemistry and physics) nano-based research also significantly involves many other fields including biomedical sciences computer sciences and mathematical sci-ences environmental sciences and engineering Citation patterns further show extensive referencing across macro-disciplinesmdashwith a preponderance of references in nano-related articles to research outside the macro-discipline in which the article is published (Porter and Youtie 2009) Conse-quently at this level of convergence the sharing and absorption of research across the involved disciplines will be necessary for downstream value crea-tion (Figure 1) Figure 1 Convergence at the Disciplinary (Knowledge Sources) Level At the next level of convergencemdashthe organizational levelmdashthe interaction between technological convergence and models of open innovation is be-coming apparent Licensing mergers acquisitions and strategic alliances such as joint ventures as well as new structures such as innovation networks and open innovation communities represent alternative strategies that may be used to acquire or access the necessary knowledge or assets for discovery and development From a convergence perspective the opportunity exists for a (public or private) stakeholder to not only interact with other (public andor private sector) stakeholders through simple one-to-one traditional collaborations but with many stakeholders through more complex mecha-nisms such as consortia crowdsourcing and other such open innovation communities For example the need for shared scientific expertise and large scale infrastructure in both nanotechnology and biotechnology is thought to be responsible for the development of networks spanning both fields (Figure 2) The pervasiveness of enabling technologies such as information and communications technology (ICT) have encouraged innovation net-works to increase in dominance and have lead to the blurring of organiza-tional boundaries among research organizations (Powell Koput and Smith-Doerr 1996 Roijakkers and Hagedoorn 2006) In such collaborations the opportunity to assume multiple roles exists to enable RampD including the collaborator who shares knowledge with one or many partners for the pur-poses of discovery or development the incubator who provides funding or expertise to other stakeholders to support venture development the enabler

who provides access to tools equipment large scale infrastructure or other services to support product development and the orchestrator who manages the network of partners with either the objective of knowledge creation or knowledge application (Melese Lin Chang and Cohen 2009) At this level of convergence there is the critical need to closely examine the management processes associated with collaboration as the collaborative strategies have not only grown in relevance but also in terms of impact and the number of participants involved

Collaboration Model

Access

Simple (One to One) Complex (Many to Many)

Collaboration Complexity

Figure 2 Convergence at the Organizational Level Open Access=Participation Open Closed Access=Exclusive Partnership

Simple=One to One Link between Partners Complex=Many Links between Several Partners PPP=Public Private Partnership JV=Joint Venture

The location in the above grid determines the extent to which the collabora-tion is open or closed and between one few or many partners

Finally the outcomes from any collaborative interaction will increasingly lead to convergence at the product level In this case multiple components or products will be packaged together to enhance the value over individual product offerings (Figure 3) Such bundled products will have the goal of simultaneously meeting several technological needs be it for biomedical treatment as seen in the use of nano-based diagnostics paired with therapeutics in agriculture or environmental applications as seen in the use of sensors to measure pathogens in food and the environment or the use of nanospheres to selectively detect harmful materials in water and then used for detoxification and in the creation of novel energy technologies as seen in the use of catalysts in particles for biodiesel synthesis to name a few (Schmidt 2007) At the product level effective intellectual property man-agement strategies and coordination between regulatory agencies will be paramount

Figure 3 Convergence at the Product Level

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

COGNITIVE

PPP JV

MampA

Consortium Innovation Network

Crowdsourcing Open Source Network

Licensing

Proprietary Open Innovation Community

Closed

Open

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

Nanomaterials

Nanodevices

Nanoelectronics

Nanosensors

Bioinformatics

Biosensors

Tissue Engineering

Drug Delivery

Diagnostics

Drug Delivery

Chemical Catalysis

Nanofiltration

Chemical Sensors

Neuron Network

Prostheses GenerationCOGNITIVE

16

The Impact of Convergence At each level of convergence there are several complexities that either im-pact the management of stakeholder interaction or the management of the knowledge based assets generated through such interactions For example given the expected intersection between disciplines knowledge complexities including varied types (such as biological information and biological struc-tures chemical knowledge and structures physical knowledge and struc-tures) and forms of knowledge (disembodied and embodied) will drive the need for a common platform for knowledge integration validation and standardization Beyond integration of knowledge it is expected that teams of biological chemical and physical scientists will increasingly form to de-velop and bridge together the necessary tools and equipment for RampD ac-tivities (Ideker Galitski and Hood 2001 Kitano 2001 Kautt Walsh and Bittner 2007 Boardman 2008 Boardman and Ponomarioy 2009) We must also consider the impact of convergence on the downstream rights to de-velop products Lemley (2005) discusses that unlike other industries in which patentees are actual or potential participants in the downstream mar-ket a significant number of corporate patentees will increasingly own rights not just in the industry in which they participate but other industries as well Analysts fear that over-patenting alongside the large shadow of such patents could not only fragment technology but could discourage stakeholders in a number of industries from attempting to develop products incorporating infringing technologies (Lemley 2005) It is important to consider that as multiple disciplines increasingly working together each discipline will have its own priorities and conventions regarding knowledge dissemination and knowledge appropriation (Hilgartner 1996) One discipline may signal its success during knowledge generation through the enclosure and the sale of disembodied knowledge Another discipline may measure its success exclu-sively by the embodiment of knowledge in medical products (Hilgartner 1996) While patent pools are a suggested solution to the possible patent holdups (DlsquoSilva 2009) it has been proposed that as has occurred in the genomics arena innovation-based networks with rules regulating the devel-opment and appropriation of critical technology building blocks could not only circumvent the product development and legal problems of the past but will also bring together the requisite intellectual and physical capital (DlsquoSilva 2009 Allarakhia and Walsh 2010) A Template for Managing Interactions and Knowledge-Based Assets Governance strategies must seek to align the incentives for participation in collaborative activities for multiple stakeholders The use of rules to define actions communication mechanisms used to enable and monitor actions and to share the outcomes are all critical to ensure that goals are achieved Structure and Roles It is expected that the chosen collaboration modemdashone to one one to many or many to many collaboration and objectives set for the collaborationmdashpooling of assets generation of new assets andor pol-icy creation will impact the type of participants that will join The organiza-tional structure chosen will be determined in part by the attributes of the resources to be contributed or developedmdashinformation supporting tools technology as well as the location of participantsmdashwith linkages established through physical clustering or virtual networking Thereafter the organiza-tion of participants may be a function of technological expertise geographic location or project-based management expertise Resource Types and Outcomes Participants will contribute several inputs including funding equipment and human capital The resulting outcomes include data materials tools and technology Facilities store artifacts in or-der to make them accessible Traditional facilities have been libraries and archives containing books journals and papers New technologies have made electronic distributed information possible Artifacts are discreet ob-servable nameable representations of ideas such as articles research notes books databases maps computer files and web pages (Foray 2004 Hess and Ostrom 2006) In the context of nanotechnology databases material and model repositories accessible laboratories that aggregate equipment and tools for nanotechnology development are varied options to manage the outputs Hence any outcomes analysis should seek to determine the success of collaboration including the amount of data produced and accessed the material generated housed and accessed the tools created and used and the technology produced by participants Governance Internal rules or mechanisms used to promote cooperative be-haviour can include formalizing the requirements to join the initiative en-suring frequent interactions encouraging communication between partici-pants monitoring and punishing defection and setting the boundary for access to resources An authority that regulates access to resources can en-sure that a fair and efficient governance strategy is used (Ostrom Gardner and Walker 1994) While access generally refers to disembodied assets such

as data extraction can involve the removal andor use of physical materials models and tools Knowledge use and access can be governed by the fol-lowing rules sharing with partners only (closed access) sharing with part-ners and the public at large (open access) and intellectual property assign-ment potentially on information materials tools and technology with the specification of rights to use based on licensee type geography or target market for product launch Creating Value The Path Forward in The path forward will require the creation of supporting policies encourag-ing multi-disciplinary collaboration At a national level several governments have recognized the importance of innovation networks to develop capacity and compete on an international level Consequently policies are now pro-viding more RampD funding and incentives encouraging the formation of multi-sectoral networks (Corley Boardman and Bozeman 2006) New prod-ucts of convergent technologies will necessitate cooperation among regula-tory bodies with the coordination of information flow coordination of du-ties and increased harmonization between international regulatory bodies (Castle et al 2006 Drezek and Tour 2010) To avoid the mistakes of the past policies outlining guidelines for the management of intellectual prop-erty rights can ensure that stakeholders will correctly assess the common value of knowledge versus the private value of knowledgemdashresulting in the transition from open knowledge to appropriated knowledge with the objec-tive of pursuing (unilateral or collaborative) downstream product develop-ment References 1) Allarakhia M amp Walsh S Managing knowledge assets under conditions of radical change The case of the pharmaceutical industry Technovation 31 105-117 (2011) 2) Boardman P Beyond the stars The impact of affiliation with university biotechnology centers on the industrial involvement of university scientists Technovation 28 291-297 (2008) 3) Boardman Pamp Ponomarioy B University researchers working with pri-vate companies Technovation 29 142-153 (2009) 4) Castle D Loeppky R Saner M Cline C Dalgleish J amp Wojnik V Convergence in Biotechnology Innovation Case Studies and Implications for Regulation (University of Guelph Guelph 2006) 5) Corley EA Boardman PC amp Bozeman B Design and the manage-ment of multi-institutional research collaborations Theoretical implications from two case studies Research Policy 35 975-993 (2006) 6) Drezek RA amp Tour JM Is Nanotechnology Too Broad to Practice Nature Nanotechnology 5 168-169 (2010) 7) DlsquoSilva J Pools thickets and open source nanotechnology European Intellectual Property Review 31 300-306 (2009) 8) Foray D The Economics of Knowledge (MIT Press Cambridge 2004) 9) Hess C amp Ostrom E Understanding Knowledge as a Commons From Theory to Practice (MIT Press Cambridge 2006) 10) Ideker TT Galitski L amp Hood LE A new approach to decoding life Systems biology Annual Review Genomics and Human Genetics 2 343-372 (2001) 11) Kautt M Walsh S amp Bittner K Global distribution of microndashnano technology and fabrication centers A portfolio analysis approach Technol-ogy Forecasting and Social Change 74 1697-1717 (2007) 12) Kitano H Systems biology Toward systems-level understanding of bio-logical systems Foundation of Systems Biology 1-29 (MIT Press Cam-bridge 2001) 13) Lemley MA Patenting nanotechnology Stanford Law Review 58 601-630 (2005) 14) Melese T Lin SM Chang JL amp Cohen NH Open innovation net-works between academia and industry an imperative for breakthrough therapies Nature Medicine 15 502-507 (2009) 15) Ostrom E Gardner R amp Walker J Rules Games and Common-Pool Resources (The University of Michigan Press Ann Arbor 1994) 16) Porter AL amp Youtie J How interdisciplinary is nanotechnology Jour-nal of Nanoparticle Research 11 1023-1041 (2009) 17) Powell WW Koput KK amp Smith-Doerr L Inter-organizational col-laboration and the locus of innovation Network of learning in biotechnol-ogy Administrative Science Quarterly 41 116-145 (1996) 18) Roijakkers N amp Hagedoorn Inter-firm RampD partnering in pharmaceu-tical biotechnology since 1975 Trends patterns and networks J Research

Policy 35 431minus446 (2006) 19) Schmidt K Project on Emerging Nanotechnologies (2007)

17

18

Beyond Cost-Savings Hidden Considerations for Conducting Clinical Trials in Asia

By Jessica Liu General Manager ChinaNorth Asia INC Research and Garth Tierney Regional General Manager Australia and South East Asia INC Research

Abstract Pharmaceutical industry sponsors are well-aware of the cost bene-fits of conducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the pri-mary criteria by which sponsors should select the Asian regions in which they will conduct their clinical trials Other important considerations include disease incidence treatment standards minimizing variability maximizing protocol adherence regulatory factors politics cultural considerations and ethical concerns While global spending on medicines is expected to grow three percent to five percent over the next five years spending in the ―pharmerging markets is expected to double1 The desire to access this fast-growing consumer base is the primary reason large pharmaceutical companies are increasing their clinical presence in emerging countries like China according to a report from investment bank-ing firm William Blair2 But small to midsize drug makers are also moving into emerging markets driven primarily by cost differentials China can offer as much as a 50 percent cost advantage compared to the United States or Europe as can Thailand the Philippines or Malaysia Most countries in Asia are at least 20 percent to 30 percent more cost-efficient than their western counterparts although there are notable exceptions such as South Korea and Japan Pharmaceutical industry sponsors are well-aware of the cost benefits of con-ducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the primary criteria by which sponsors should select the Asian regions in which they will con-duct their clinical trials Other important considerations for conducting a trial in Asia include disease incidence and treatment standards the potential to minimize variability and maximize protocol adherence regulatory and political factors and cultural and ethical considerations Disease Incidence and Treatment Standards With more than four billion people Asia offers sponsors a deep pool from which to draw clinical trial participants Indeed for sponsors conducting late-stage clinical trials in indications such as diabetes or cardiovascular dis-ease which can require thousands of patients establishing Asian trial sites to tap into that pool is critical The key is determining which Asian countries will best match each triallsquos unique patient requirements For sponsors most concerned with enrolling large numbers of patients into a trial highly populous countries such as India China Indonesia Japan the Philippines Thailand and Malaysia may be the best fit A recent CRO survey revealed that China is the leader in patient recruitment for the Asia-Pacific region followed by India and South Korea3 However sponsors need to be aware that the region is still expanding and a vast population does not equate to vast number of ICH GCP trained sites in the larger countries of China and India This can be a limiting factor in gaining access to the best sites for certain indications If on the other hand a sponsor is conducting a Phase I trial they should know that certain Asian countries have specific regulatory requirements for approval of a clinical trial application (CTA) that can add complexity to the process Others like Australia specialize in Phase I studies thanks to their fast and straightforward approval processes high-quality clinical practices and variety of many academic and commercial clinical trials centers4 Selecting an appropriate region for trial sites also depends on the incidence of the target disease in each countrylsquos population Highly-developed Asian countries have a higher incidence of diseases common in the West such as diabetes and cardiovascular disease while diseases such as tuberculosis are more common in Southeast Asia Some countries like India have diverse patient populations afflicted with diseases of both the developing and devel-oped world

When it comes to standards of care certain diseases like breast cancer lung cancer and diabetes are treated in much the same way in Asia as they would be treated in the Western world But for many other indications medical practice standards differ both from East to West and between the different Asian regions Sponsors seeking to meet specific market regulatory approval will need to mirror Western standards-of-care and as such should consider focusing trial sites to Australia New Zealand Singapore Taiwan Hong Kong and South Korea But differing standards of care can also provide unique opportunities Asia offers relatively more patients for first-line and second-line cancer drug evaluation than the West where such patient stores have been largely exhausted Risk Mitigation Sponsors should be prepared that some Asian trial sites ndash even those that have adapted Western-style medical practices ndash may require more assistance when it comes to following protocol and differentiating between medical practice and clinical research Not all Asian sites will have the infrastructure for a clinical trial A good CRO partner will work with a sponsor and site investigators to identify any infrastructure gap ndash such as a dedicated com-puter fax or freezer ndash and develop plans to ensure sites have the essentials to deliver a study efficiently Data integrity is another area that sponsors and CROs need to focus atten-tion It is critical to reduce variability by ensuring all monitoring and site staff are well trained Monitors need to understand how to identify and pro-actively resolve issues early on to minimize long-term issues with patient recruitment and data collection They should understand how to recognize early warning signals and not overreact to red herrings Investigators and site monitors also need to be trained in adverse event reporting to ensure that they meet local regional and global clinical trial safety reporting Sponsors must ensure monitoring visits are being conducted regularly as such visits make it more likely that recruitment and data integrity issues will be detected early and managed in a timely and effective manner Equally im-portant site staff needs to be as consistent as possible Finally sponsors need to implement a proven system for data reporting as variability in the data collection process may decrease the evaluable patient pool in the trial decreasing the sponsorlsquos chances to establish statistical sig-nificance or detect a rare safety signal Regulatory and Political Factors While regulatory bodies in South Korea and Taiwan as well as in Singapore have adopted an FDA-based approach each Asian country has its own regulatory idiosyncrasies In China for example reviews take on a project-based nature and sponsors should never assume that what worked in one application will be directly applicable to another No matter how harmo-nized Asia may appear the cookie-cutter approach simply doesnlsquot work However the fact that regulatory policies are still evolving in certain Asian countries provides a unique opportunity to sponsors the opportunity to in-fluence those policies There are no formal guidances or rules covering this topic but it is a real opportunity The recent economic downturn has prompted finance ministers in many countries to more closely analyze the cost of healthcare and they are realizing that good drugs can decrease their overall costs To ensure new drugs are available in their countries they have become increasingly eager to support clinical trials and they are engaging in conversations with sponsors about how approval pathways might be con-structed that take healthcare economics into consideration For example if a sponsor works closely with regulatory agencies to design the right preclinical and Phase I trials could a single Phase IIIII trial be sufficient for approval in some indications Are so many repetitive studies really necessary Is the requirement or guidance relevant to the current technology If a sponsor can prove to the government that a certain disease is currently costing 50 cents per person per day to treat and a new drug would change treatment paradigms and reduce that cost to a penny that is a compelling argument Not compelling enough to compromise safety or effi-cacy but compelling enough to expedite things along by partnering to agree upon the most appropriate pathway to approval While some regulatory agencies may not be as comfortable with the idea of allowing more flexibility and customization in the clinical trial design many are open to reducing bu-reaucracy and the associated time delays for CTA approval ndash particularly when there is potential to significantly impact health economics Govern-ments may provide commercialization support including funding to enable

19

development of new technologies and testing methods There may also be a higher priority given to certain CTA applications in the review queue Australia and Singapore have adopted a more simplified regulatory process and offer a notification scheme rather than formal review by the regulator South Korea and Taiwan are working to ease regulations and facilitate pro-tocol reviews Countries such as China have lengthy regulatory approval processes however there are some early indications that this may be de-creasing India is currently experiencing slower regulatory paths Interest-ingly some Asia Pacific countries that have historically been considered ―easy targets for clinical trials are increasing their regulations While there is much potential to collaborate with regulatory bodies in Asia these are not the only government agencies with which a sponsor must work Each country has its own policies on insurance regulations import licenses and other factors that affect a sponsorlsquos ability to establish and run clinical trial sites Each should be reviewed before selecting countries in which to establish trial sites Cultural and Ethical Considerations Language barriers can be easily overcome by CRO partners with offices across Asia and they are the least of a sponsorlsquos worries when it comes to cultural differences More pressing are issues such as the fact that some Asian researchers may believe that their participation in a trial gives them the right to publish data on their findings while sponsors require at least some degree of control over the publication of trial data Such issues are best managed by thorough communication prior to the start of enrolment In certain countries cultural factors may positively impact a trial Ethical factors may also weigh on a sponsorlsquos decision to conduct trials in certain Asian countries There are certain diseases that present a serious unmet medical need specifically within Asian populations such as foot-and-mouth disease and such indications obviously lend themselves to Asian clinical tri-als Yet if a sponsor has no plans to launch a drug in certain Asian countries perhaps because the populations of those countries would not be able to afford the drug then conducting clinical research in those countries may present ethical challenges For the most part however sponsors are eager to launch their drugs into the rapidly growing Asian healthcare markets and Asian clinical trials are necessary to support this endeavour As mentioned initially the cost advan-tages of conducting clinical trials in Asia cannot be ignored as both large and small companies face pressures on their bottom lines But while costs are important they are not the only consideration About the Authors Jessica Liu MD is the general manager for Clinical Operations in China and North Asia at INC Research She previously managed international pro-jects out of the European headquarters office for a global CRO in Brussels Belgium Prior to that she worked for 15 years in the Chinese affiliates of several global pharmaceutical companies overseeing clinical operations pro-ject management and medical affairs She conducted and managed Phase I-IV clinical studies across multiple therapeutic areas Dr Liu started her ca-reer as a resident physician in the endocrinology Department of the Peking Union Medical College Hospital (PUMCH) in Beijing China She received her Medical Doctorate from the University of Beijing (China) and has a Di-ploma in Pharmaceutical Medicine from the University of Basel (Switzerland) Dr Liu is based in Beijing She can be reached at jialiuincresearchcom Garth Tierney is the regional general manager for Australia and South East Asia for INC Research Garth previously founded and managed Trident Clinical Research a CRO based throughout Australia New Zealand and In-dia After 14 years of operation Trident was acquired by INC Research in June 2011 Prior to founding and managing Trident Clinical Research Garth worked for 8 years in the clinical research industry in various senior manage-ment and operational management roles across several companies including a global CRO an Australian pharmaceutical company and two global phar-maceutical companies Garth has a pharmacology (University of NSW) and business administration (University of Adelaide) background and worked in hypertension research for several years before joining the pharmaceutical industry During this time Garth published various papers and won the Whelan prize (awarded by ASCEPT) He can be reached at gtierneyincresearchcom

References 1 IMS IMS Institute Forecasts Global Spending on Medicines to Reach

Nearly $11 Trillion by 2015 May 18 2011 2 Wm Blair Pharmaceutical Outsourcing Industry Analysis Jun 10

2010 3 CyberMedia Research-BioSpectrum Asia-Pacific CRO Survey 2011 4 Clinical Trials Action Group Report Commonwealth of Australia

2011 CPTR Yields Progress New Six-Way Agreement has Goal to Speed Development of TB Drug Combinations November 11 2011 The Critical Path to TB Drug Regimens (CPTR) announced this November an innovative agreement between AstraZeneca Bayer Sanofi Tibotec TB Alliance and the World Health Organization to share information on tuber-culosis (TB) compounds within their respective drug pipelines to quickly identify and work together to develop the most promising TB drug regimen regardless of sponsor The partnership facilitates a more collaborative ap-proach to TB drug development with the objective to dramatically speed the development of shorter safer and more effective multi-drug treatments that are urgently needed to control the global TB pandemic The agreement will enable information-sharing around scientific and clinical data on TB compounds in clinical development By sharing data partners can identify opportunities to test their compounds in combination speeding availability of future TB regimens The collaboration includes the majority of global sponsors with TB drugs in clinical development Under the agree-ment if two or more organizations choose to work together to further de-velop a regimen they will enter into a separate arrangement that defines the rights and responsibilities of each party CPTR is working closely with regulatory scientists at the US Food and Drug Administration European Medicines Agency and other regulatory bodies in China India and some countries in Africa to develop the tools that are needed to allow testing of new TB drugs in combination cutting years off the development timeline Under the leadership of the Critical Path Institute CPTRlsquos Regulatory Science Consortium focuses on establishing consensus on preferred standards methods and tools for developing new TB drug regimens and obtaining official acceptance from international regulatory authorities Source TB Alliance Pfizer Establishes the Cambridge Research Center September 01 2011 Pfizer Inc recently announced it has entered into a 10-year lease agreement with the Massachusetts Institute of Technology (MIT) for more than 180000 square feet in a new building under development in Cambridge Massachusetts Located at 610 Main Street South in Kendall Square the new site will be the future location of Pfizerlsquos Cardiovascular Metabolic and En-docrine Disease (CVMED) and Neuroscience Research Units The reloca-tion of the two Research Units will substantially boost Pfizerlsquos footprint in Cambridge making it the second largest biopharmaceutical company in Massachusetts in terms of jobs ―We were very deliberate in our choice to move to Cambridge MA as a key part of our RampD strategy By expanding our presence in one of the worldlsquos great centers of scientific and medical innovation we will provide the best environment for our researchers to invent the next generation of medicines in areas of greatest need such as Alzheimerlsquos disease schizophrenia diabe-tes and cardiovascular disease said Rod MacKenzie senior vice president and head of PharmaTherapeutics Research amp Development ―We intend to foster productive formal and informal collaborations between our drug dis-covery experts and the outstanding scientists of Cambridgelsquos world class institutions This is a very exciting period in Pfizer RampD Source Pfizer

20

21

Continued from page 19hellip UK Academia Given Access to Selected AstraZeneca Compounds December 11 2011 Following a unique landmark agreement between AstraZeneca and the UK Medical Research Council (MRC) a wide range of compounds will be made available to UK medical researchers next year In a new type of collabora-tion academia will be granted access to 22 clinical and preclinical com-pounds developed by AstraZeneca Though making individual compounds available to external academic investigators is not unusual the breadth and open-innovation nature of this collaboration is unique because it provides unprecedented access to well characterised clinical and preclinical candidate molecules to investigators across all UK academic institutions There is significant unmet need in diseases both within and outside Astra-Zenecalsquos current research focus This collaboration builds on the sizable in-vestment made in developing candidate drugs within AstraZeneca by help-ing researchers to explore their potential more broadly with the hope that they will find new future medicines It also helps AstraZeneca explore areas of unmet patient need beyond its current disease area focus leveraging great external science in a way that is highly flexible and cost effective The New Opportunities Innovative Medicines Unit (iMed) in AstraZeneca has been central in establishing this research collaboration with the MRC and has acted as the interface with the other AstraZeneca iMeds to agree which compounds would be eligible Clive Morris VP New Opportunities iMed said that ―This Open Innova-tionlsquo approach brings together the strengths of AstraZeneca the MRC and UK Academia into what I hope will be a really potent mix bringing forward really exciting new ideas that could transform our understanding of some diseases It highlights an openness to new scientific thinking and also places external scientific collaboration right at the heart of what we do It is also an excellent way to broaden our portfolio of activities into new diseases for As-traZeneca leveraging the wealth of expertise across UK academia AstraZeneca and the MRC will invite preclinical and clinical research pro-posals from across the UK academic community to investigate the com-pounds in a range of diseases with a view to finding new treatment oppor-tunities AstraZeneca will work with the academic collaborators to develop the best scientific proposals and the MRC will select the highest quality pro-posals for funding awarding up to pound10 million in total to fund the success-ful proposals The successful applicants will then work collaboratively with AstraZeneca to deliver the studies David Brennan AstraZenecalsquos Chief Executive Officer said ―Innovative collaborations are playing a crucial role in finding ways to unlock the poten-tial of new treatments The UK has a strong heritage of research excellence in life sciences We hope that in sharing these valuable compounds with aca-demic scientists through the MRC new discoveries will be made by explor-ing additional uses of these compounds Source AstraZeneca WIPO ReSearch A Neglected Tropical Diseases Initiative October 26 2011 The World Intellectual Property Organization (WIPO) in an unprecedented collaboration with leading pharmaceutical companies and BIO Ventures for Global Health (BVGH) recently launched the WIPO Re Search a new consortium where public and private sector organizations share valuable in-tellectual property (IP) and expertise with the global health research commu-nity to promote development of new drugs vaccines and diagnostics to treat neglected tropical diseases malaria and tuberculosis In WIPO ReSearch Alnylam Pharmaceuticals AstraZeneca Eisai GlaxoS-mithKline MSD1 Novartis Pfizer and Sanofi are collaborating with WIPO BVGH the US National Institutes of Health (NIH) and multiple non-profit research organizations These include the California Institute of Technology the Center for World Health amp Medicine the Drugs for Ne-glected Diseases initiative Fundaccedilatildeo Oswaldo Cruz (Fiocruz) Massachu-setts Institute of Technology Medicines for Malaria Venture PATH the South African Medical Research Council the Swiss Tropical and Public Health Institute the University of California Berkeley and the University of Dundee (UK)

―WIPO ReSearch is a ground breaking example of how a multi-stakeholder coalition can put IP to work for social benefit said WIPO Director Gen-

eral Francis Gurry ―By joining WIPO ReSearch companies and researchers commit to making selected intellectual property assets available under roy-alty-free licenses to qualified researchers anywhere in the world for research and development on neglected tropical diseases malaria and tuberculosis This commitment should accelerate the development of medicines vaccines and diagnostics for these diseases

According to the World Health Organization (WHO) neglected tropical diseases today impair the lives of an estimated 1 billion people The WHO provides technical advice to WIPO on public health issues and research pri-orities as appropriate

By providing a searchable public database of available intellectual property assets information and resources WIPO ReSearch facilitates new partner-ships with organizations that conduct research on treatments for neglected tropical diseases malaria and tuberculosis

Membership in WIPO ReSearch as a user provider or supporter is open to all organizations that endorse adhere to and support the projectlsquos Guiding Principles These Guiding Principles include the commitment that IP li-censed via WIPO ReSearch will be licensed on a royalty-free basis for re-search and development on neglected tropical diseases in any country and on a royalty-free basis for sale of neglected tropical disease medicines in or to least developed countries

―The innovative pharmaceutical industry has an important part to play in addressing unmet medical needs and increasing access to our collective pro-prietary information will help advance research into treatment options for these underserved diseases said David Brennan CEO of AstraZeneca and President of the International Federation of Pharmaceutical Manufacturers amp Associations (IFPMA) ―WIPO ReSearch has the potential to make a real impact on global health which is why we are proud to make all patents owned by AstraZeneca available to this important initiative for promoting the research and development of treatments for neglected tropical diseases anywhere in the world

The WIPO ReSearch database includes a wide variety of contributions rele-vant to malaria tuberculosis and other neglected tropical diseases including individual compounds and associated data screening hits from compound libraries and expertise and know-how in pharmaceutical research and devel-opment In addition WIPO ReSearch offers the opportunity for neglected tropical disease researchers to work directly with scientists at pharmaceutical companies to advance RampD on these diseases As WIPO ReSearch moves forward offerings from current partners will continue to grow and new pro-viders are expected to join to add to the wealth of information compounds and services available

―NIH licenses its patents to enable the private sector to develop diagnostics therapeutics and devices that improve public health said National Insti-tutes of Health Director Francis S Collins MD PhD ―We want to ensure that our biological materials and patents covering treatments or vaccines for neglected tropical diseases as with all diseases are available as broadly as possible to speed the development of new products for people who are most burdened by these diseases and WIPO ReSearch helps us to do this

The founding eight pharmaceutical companies WIPO BVGH and NIH are joined by a distinguished group of globally recognized institutions as provid-ers potential users and supporters of WIPO ReSearch (see annex) BVGH will manage the WIPO ReSearch Partnership Hub which will facilitate rela-tionships between the pharmaceutical company providers and new users

―In our role as administrator of the WIPO ReSearch Partnership Hub BIO Ventures for Global Health is excited to bring these new opportunities to neglected disease researchers around the world to accelerate their work in this area of critical unmet need said Don Joseph Chief Operating Officer of BVGH ―As both present and future providers evaluate their internal data and IP with the goal to provide focused information which they believe will best serve the neglected tropical disease research and development commu-nity WIPO ReSearch will build on previous RampD investments to speed the development of drugs vaccines and diagnostics for the neglected diseases that disproportionately impact people living in resource-poor countries Source WIPO

Page 4: Bio Outsourcing Asia: Volume 1 Issue 3 2011.pdf · TB drug trials. Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies

4

5

AstraZenecamdashMaking Partnerships Work for Product Development at the Bottom of the Pyramid AstraZeneca and other pharmaceutical companies government agencies NGOs donors and academics have joined a collaboration led by the Bill and Melinda Gates Foundation the TB Alliance and the Critical Path Institute to explore funding mechanisms and support for late-stage clinical trials Currently there are nine promising TB compounds from at least six antibiotic classes in development including one compound from Astra-Zeneca AstraZenecalsquos dedicated research facility in Bangalore India is a key component in this initiative The initiative offers a model for other multi-stakeholder partnerships working to improve health at the bottom of the pyramid (AstraZeneca 2011) Promising compounds identified in this col-laboration will also be tested in combination with other therapies as part of the Critical Path to TB Drug Regimensmdasha cross-sector initiative with the objective to speed up the development and delivery of TB drug regimens to patients (AstraZeneca 2010) ―Collaboration is absolutely vital to developing the tools needed to truly revolutionize the way TB is treated and overcome the global TB epidemic said Mel Spigelman MD President and CEO TB Alliance ―AstraZeneca has a well-established TB drug discovery program and is a crucial participant in the Critical Path to New TB Regimens Together our research promises to bring important advances to TB patients in need (AstraZeneca 2010) Les Hughes AstraZenecalsquos Vice President of Infection Discovery said ―AstraZeneca is building a leading franchise in the treatment of infectious diseases both through our own in-house research as well as through col-laborations This collaboration is part of the global partnership that will be needed to conquer the TB epidemic We are excited to be working with the TB Alliance to help move forward the drug discovery program and quickly speed promising candidates into clinical development (AstraZeneca 2010) Augmenting its research in Bangalore AstraZeneca recently joined a consor-tiummdashthe More Medicines for Tuberculosis (MM4TB)mdashto fight TB with French rival Sanofi-aventis the University of Cambridge and other research organizations The MM4TB consortium has the goal of developing new drugs for successful and shorter treatment for TB (Kollewe 2011) The Eacutecole Polytechnique Feacutedeacuterale de Lausanne (EPFL) along with the universi-ties of Pavia in Italy and Uppsala in Sweden are also participants in the con-sortium AstraZeneca is sharing its compounds and expertise Research will be carried out at a London medical school and the John Innes Centre in Norwich as well as in Russia India and South Africa The aim is to have 10 to 20 compounds in the pipeline to develop two or three successful TB drugs that will be given as a cocktail to patients (Kollewe 2011) In parallel AstraZeneca announced its partnership with Medicines for Malaria (MMV) in 2010 Under the terms of the agreement scientists work-ing with MMV will screen 500000 compounds in AstraZenecalsquos unique li-brary for activity against P falciparum the most lethal of malaria parasites (MMV 2010) Tim Wells MMVlsquos Chief Scientific Officer said ―AstraZeneca has had a long standing interest in neglected disease and we are delighted to be able to collaborate with the centre in Bangalore on this exciting project in malariahellip (MMV 2010) The Critical Path to TB Drug Regimes (CPTR) The Critical Path to TB Drug Regimens (CPTR) is a broad collaboration of pharmaceutical companies government regulatory and multilateral agen-cies donors academia advocates and NGOs that aims to accelerate the development of new safe and highly effective tuberculosis (TB) treatment regimens with shorter therapy durations (CPTR 2011) AstraZeneca is among several partners that signed the CPTR Statement of Principles on March 18 2010 The partners have agreed to

Encourage information sharing and collaboration among interna-tional organizations industry and regulatory agencies to innovate and accelerate TB drug development and get important new thera-pies to patients

Promote the development of new regulatory approaches that sup-port innovative research into TB therapeutics evaluate new TB drug combinations safely and effectively and reinforce current guidelines for development of effective drug combinations

Work together using industry best practices to test TB drug can-didates in combination regimens beginning early in the develop-ment process

Create a collaborative coordinating structure to oversee this initia-tive

Explore creative new funding streams for developing novel com-

bination TB therapies Advance efforts to utilize existing clinical trial sites for TB while

also building clinical trial site capacity for late-stage combination TB drug trials

Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies for patients in need

(CPTR 2011) On November 9 2011 the Critical Path to TB Drug Regimens (CPTR) an-nounced an innovative agreement between AstraZeneca Bayer Sanofi Tibotec TB Alliance and the World Health Organization The collaboration will enable information-sharing around scientific and clinical data on TB compounds in clinical development By sharing data it is anticipated that partners can identify opportunities to test their compounds in combination If two or more organizations choose to work together to further develop a regimen they can then enter into a separate arrangement that defines the rights and responsibilities of each party ―This initiative is a further example of industry working together and with others to share knowledge and exper-tise for the benefit of the wider society said David Brennan Chief Execu-tive Officer of AstraZeneca (CPTR Yields Progress 2011) The More Medicines for Tuberculosis (MM4TB) Consortium AstraZeneca is also one of 25 partners from 13 countries in Europe America Asia and Africa to join the More Medicines for Tuberculosis (MM4TB) consortium Members include

The Eacutecole Polytechnique Feacutedeacuterale de Lausanne (EPFL) Pharmaceutical companies AstraZeneca and Sanofi-aventis Diagnostics company Alere Four SMEsmdashVichem Cellworks CDD and Tydock Twelve universities including Uppsala Pavia Cambridge Queen

Marys London Padova Comenius Piemonte Orientale the Basque Country Zaragoza ETH Zurich and Cape Town

Five research institutesmdashInstitute Pasteur in Paris Institut Pasteur of Lille the Bach Institute of Biochemistry the John Innes Centre and the Indian Academy of Sciences

And the Scientific management company SCIPROM (MM4TB 2011) MM4TB evolved from New Medicines for TB (MM4TB) a successful pro-ject which delivered a candidate drug for clinical development two years ahead of schedule Building on this MM4TB will continue the search for new drugs for successful and shorter treatment of TB (AstraZeneca 2011) Brennan urged ministers at the Asian Business Leaders conference in 2010 to work with the pharmaceutical industry to share the risks and costs in de-veloping effective antibiotics and other treatments He stressed the impor-tance of public sector bodies and NGOs teaming up with pharmaceutical groups to tackle the problem of antibiotic resistance Along with Novartis and Merck AstraZeneca is one of few companies that are investing in the area (Kollewe 2010) Development research will be done primarily in coun-tries with high rates of infection and AstraZeneca will collaborate with exter-nal partners with relevant skills and expertise While the company will apply for patent protection the organization seeks partnership arrangements with global and local organizations to make TB treatments widely available in the developing world through supply strategies that minimize cost of manufac-ture and delivery (AstraZeneca 2011) Partnership with Medicines for Malaria (MMV) In parallel AstraZeneca announced its partnership with Medicines for Malaria (MMV) in 2010 The agreement permitted MMV to access Astra-Zenecalsquos extensive compound library MMV will seek to identify promising compounds with the potential to treat malaria including drug resistant strains of the disease MMV has the objective to discover develop and de-liver new effective and affordable anti-malarial drugs with simpler dosing regimens thereby encouraging patient compliance and helping reduce the risk of resistance developing The ultimate goal is to find a one-dose cure for malaria (MMV 2010)

6

Under the terms of the agreement scientists working with MMV will screen 500000 compounds in AstraZenecalsquos unique library for activity against P falciparum the most lethal of malaria parasites Prof V Avery at the Eskitis Institute for Cell and Molecular Therapies at Griffith University in Brisbane Australia will conduct the screening on behalf of MMV Promising com-pounds identified through the screening process will be starting points for antimalarial drug discovery projects These compounds will be progressed through a discovery cascade at AstraZenecalsquos RampD facility in Bangalore India with the aim of identifying suitable candidates for clinical testing (MMV 2010) David Brennan AstraZenecalsquos CEO said ―hellipOpening up our compound library to MMV is an important step toward addressing the enormous unmet medical needs of the developing world AstraZeneca is committed to being part of the solution and we look forward to working with MMV and all those with a stake in global health (MMV 2010) Tim Wells MMVlsquos Chief Scientific Officer stated that ―hellipthe additional advantage is the Indian perspective India has millions of cases of malaria per year and in addition has a balance between Plasmodium falciparum and Plasmodium vivax Understanding and eliminating Indian malaria is one of the keys to eliminating malaria worldwide (MMV 2010) Opening up Proprietary Assets AstraZeneca recently agreed to join the World Intellectual Property Organizationlsquos (WIPO) WIPO ReSearch initiative in what is an unprece-dented collaboration between the private sector and public partners WIPO ReSearch will present to the public a searchable database of available IP as-sets and resources for use in neglected tropical disease (NTD) research The commitment includes the provision that IP licensed via WIPO ReSearch will be licensed on a royalty-free basis for research and development for ne-glected tropical diseases in any country It will also be licensed on a royalty-free basis for sales of neglected tropical disease medicines in or to least de-veloped countries AstraZeneca has committed to making its entire patent portfolio available for use in NTD RampD through WIPO ReSearch In addi-tion AstraZeneca will provide access to its high throughput screening tech-nologies compound collection and global laboratories AstraZeneca hopes to increase opportunities for scientists to work at it facilities around the world and encourage scientific mentoring and use of innovative technologies

by guest scientists researching treatments for NTDs (AstraZeneca 2011) Through a combination of open innovation and open source initiatives AstraZeneca shares the joint goal of speeding up the discovery and develop-ment of new potential treatments for NTDs Time will tell which strategies prove most effective in terms of both product development and product access (Figure 1) References 1 AstraZeneca and MMV join efforts in the fight against malaria MMV

June 2010 2 CPTR httpcptrinitiativeorg 2011 3 CPTR Yields Progress November 2011 4 Kollewe J AstraZeneca joins fight against tuberculosis

The Guardian March 2011 5 Leading pharmaceutical companies amp research institutions offer IP

and expertise for use in treating neglected tropical diseases AstraZeneca October 2011

6 MM4TB wwwmm4tborg 2011 7 Partnering is a Priority AstraZeneca 2011 8 Tackling TB AstraZeneca 2011 9 The Global Alliance for TB Drug Development (TB Alliance) and

AstraZeneca Announced that they have Entered into a Research Col-laboration Agreement to Accelerate the Discovery Development and Clinical Use of Drugs Against Tuberculosis (TB) AstraZeneca 2010

Figure 1 Open Innovation and Open Source Strategies for NTDs at AstraZeneca

AstraZeneca Global Open Source Strategy

WIPO ReSearch Alliance Sharing of Compounds

Technology Access to IP

AstraZeneca Malaria Open Innovation

Strategy Dedicated Research Facility

Bangalore India

AstraZeneca Global NTD Strategy

Guest Researcher Access to Global Facilities

Mentorship Opportunities for Research in NTDs

AstraZeneca TB Open Innovation Strategy Dedicated Research

Facility Bangalore India CPTR Alliance

7

8

Pfizerrsquos Open Innovation Strategy in Asia

Pfizer has been targeting Asian markets since the early 1950s and is one of the largest US-headquartered pharmaceutical companies in Asia One key issue is the disassociation between drug research and sales It has increas-ingly become apparent that the majority of RampD is conducted outside Asia while products are sold within target Asian markets The Asia Research Ac-celerator strategy was designed to address this concernmdashwith the goal of advancing drug discovery programs in Asia while complementing existing research efforts in North America and Europe (Pfizer Global Opportuni-ties 2010) Through this initiative Pfizer invests in Asia-based research efforts that may yield either new candidates for medicines or new pathways for technology development In 2010 Pfizer either launched or expanded collaborative ef-forts throughout the region with major Asia-based researchers such as WuXi AppTec Crown Bioscience Cumencor HD Biosciences and PharmaResources (Shanghai) Co as well as through academic partnerships with Fudan University Shanghai Jiao Tong University and Shanghai Institutes for Biological Sciences (Pfizer Global Opportunities 2010) This global network of industry and academic alliances is stimulating bio-medical advances into diseases that are more prevalent in Asia than in other parts of the world For example Pfizer currently has partnerships with the Korea Research Institute of Bioscience and Biotechnology and with the Asian Cancer Research Group (an independent not-for-profit company es-tablished by Pfizer Eli Lilly and Merck) to investigate treatments and to un-derstand certain types of gastric liver head and neck cancers that have higher prevalence rates in Asia than in places such as North America and Western Europe Here we see capacity development in emerging markets with the objective to address the health concerns of the Asian patient (Pfizer Global Opportunities 2010) An Open Source Strategy for New Drug Discovery In 2010 Eli Lilly and Company Merck and Pfizer Inc formed the Asian Cancer Research Group Inc (ACRG) an independent not-for-profit com-pany The ACRGlsquos formation represents a prime example of a growing trend in pre-competitive collaboration in which large pharmaceutical compa-nies combine their resources and expertise to rapidly increase knowledge of disease and disease processes The goal of the ACRG is to improve the knowledge of cancers prevalent in Asia and to accelerate drug discovery ef-forts by freely sharing the resulting data with the scientific community Initially the ACRG will focus on lung and gastric cancers two of the most common forms of cancer in Asia As many as 40 percent of patients with lung cancer in Asia demonstrate a mutation that is relatively rare in Western patients (EGFR mutation) This mutation has resulted in differences in re-sponse to some types of agents suggesting that a different research ap-proach is needed for developing treatments for certain patient populations Over the next two years Lilly Merck and Pfizer have committed to create one of the most extensive pharmacogenomic cancer databases known to date This database will be composed of data from approximately 2000 tis-sue samples from patients with lung and gastric cancer that will be made publicly available to researchers and over time further populated with clini-cal data from a longitudinal analysis of patients (Pfizer 2010) Ties to Academia In the past six years Pfizer RampD China has developed a large collaborative research network covering basic research institutes contract research or-ganizations and smaller biotech and pharmaceutical firms Pfizerlsquos China Research and Development Center a state-of-the-art facility that provides global drug development support capabilities research collaborations and strategic alliance opportunities to China and the Asian region is based in Shanghai It is the largest RampD center for a multinational pharmaceutical company in China The Center works alongside Chinese partners to develop the skills and talents of local scientists biostatisticians medical professionals pharmacists and others with expertise in life sciences The Center collabo-rates with leading academic researchers and top institutes in China including Peking University Tsinghua University Shanghai Jiaotong University and multiple institutes of the Chinese Academy of Sciences (Pfizer 2009) Pfizer signed a deal in July 2009 with the Shanghai Institute of Biological Sciences (Sibs) As part of this deal Pfizer will provide US$500000 each year for three years to fund early stage joint research in life sciences and new drug development between Sibs scientists and Pfizer scientists Scientists in basic research institutes learn drug development skills from industry collabo-

rators while Pfizer scientists learn from and gain access to ideas of the aca-demics Though the funding is small the joint research is supported by Pfizerlsquos global resources For example proposals are revised to become more feasible and workable The researchers also receive assistance on intel-lectual property managementmdashhence the attraction of the programme for Chinese life scientists (Jia 2010) ―Our choice of Shanghai Institutes for Biological Sciences as a research part-ner demonstrates our high regard for the scientific expertise and capabilities of SIBS said Martin Mackay President Pfizer Global Research and Devel-opment ―China is increasingly seen as a source for innovative healthcare research and we are proud of our ongoing investment in the outstanding science and people here Research projects will be selected and developed jointly by Pfizer and SIBS scientists (Pfizer 2009) In parallel Pfizer has made a significant commitment to South Korean re-searchers The company signed a memorandum of understanding with the countrys Ministry of Health and Welfare in 2007 agreeing to invest $300 million in RampD in the country At this time Pfizer formed a strategic re-search partnership with the Korea Research Institute of Bioscience and Biotechnology (Ray 2010) Pfizer and the Korea Research Institute for Bioscience and Biotechnology (KRIBB) expanded the earlier agreement in May of 2010 to jointly develop drugs for liver and gastric cancer and to in-vest a total of KRW 300 billion (U$240 million) from 2008 to 2012 (Moffat 2010) Continuing its focus on pharmacogenomics Pfizer also recently formed a research partnership with Samsung Medical Centre in Seoul for the analysis of Korean liver cancer patients in order to generate gene expression profiles for the condition (Adams 2010) Choi Han-Yong president of Samsung Medical Centre said ―We are pleased to have an opportunity to work with the worldlsquos number one phar-maceutical company Pfizer to better understand cancer in Korean patients with the goal of being able to send a new message of hope for patients with liver cancer across the world especially in Asia (Adams 2010) Centers for Therapeutic Innovation (CTI) Pfizer recently announced the formation of a network of academic collabo-rators to accelerate the translation of basic science into biologics-based drugs According to Mikael Dolsten MD PhD president of Pfizer Worldwide Research amp Development the Centers represents a novel open innovation paradigm combining the competencies of top academic research institutions with Pfizerlsquos leading drug development capabilities and research technologies (Pfizer 2010) The Centers for Therapeutic Innovation (CTI) will initially focus on collaborations within the US Pfizer expects to expand into Europe and Asia in 2012 Each Center will be governed by a Joint Steering Committee (JSC) comprised of Pfizer and Academic Medical Cen-ter (AMC) representatives who will provide leadership and evaluate the suc-cess of each program through discovery and early stage clinical develop-ment Through this innovation model Pfizer will have the opportunity to broaden its pipeline with novel candidate drugs to treat diseasesmdashaddressing unmet medical need (Pfizer 2010) A key aspect of the Centers for Therapeutic Innovation is Pfizerlsquos commit-ment to establishing local Centers at each partner site The partnerships will follow a venture capital-funded biotechnology start-up model whereby Pfizer funds preclinical and clinical development programs and offers equi-table intellectual property and ownership rights as well as broad rights to publication When programs are successful and advance according to the terms determined by a joint steering committee Pfizer will grant milestone payments and royalties (Rockefeller University 2011) ―The concept is to make a transition away from the vertically integrated RampD model into smaller decentralized groups of a truly global nature says Pfizerlsquos Anthony Coyle who is heading up the program out of the com-panys Cambridge Massachusetts facilities (Ratner 2011) The CTI will provide the primary investigator (PI) with funding (postdoctoral support) technical support (dedicated Pfizer personnel with expertise in protein sciences and development) and infrastructure (laboratory space libraries robots) (Pfizer 2011) The incentives operating model and goals for participating primary investigators and Pfizer colleagues will be designed to support achieving a positive Proof-of-Mechanism study in humans (PoM) PoM studies are small investigator-led clinical trials that typically involve 10 to 30 human subjects and have defined mechanistic or therapeutic endpoints (Pfizer 2011)

9

Partnerships Reaching Down the Value Chain In 2008 WuXi PharmaTech signed a three year deal with Pfizer Under the new collaboration agreement WuXi PharmaTech in partnership with Pfizer will establish ADME assays to provide in vitro screening services on com-pounds WuXi PharmaTech synthesizes for Pfizer (WuXi 2008) WuXi PharmaTech and Pfizer have previously collaborated on synthetic chemistry parallel medicinal chemistry ADME and bioanalytical services ―This new agreement further strengthens our already productive relationship with Pfizer one of our largest customers for many years and it is the direct result of our research capability and firm commitment to quality and customer sat-isfaction according to Ge Li PhD chairman and CEO of WuXi PharmaTech (GEN News 2008) In 2009 Pfizer and Crown Bioscience Inc (Crown) announced a collabora-tion to research and develop novel therapeutics for Asian cancers Under the terms of this agreement Crown will receive an upfront payment and re-search funding as well as milestone payments based on the achievement of preclinical and clinical goals The companies will work together to discover and advance multiple candidates for clinical development The work will take place at Crownlsquos new research facility located in Taicang (near Shang-hai) China (Pfizer 2009) ―I am delighted to be collaborating with Pfizerlsquos exceptional oncology group says Alex Wu CEO of Crown ―I am also very happy that Pfizer is focusing on and dedicating resources to address a very important unmet medical need for the Asian populations This new collaboration extends an already very successful partnership between Crown and Pfizer and further demonstrates Crownlsquos commitment to becoming an outstanding cancer re-search company in Asia (Pfizer 2009) Reaching out to the bottom of the pyramid MicuRx Pharmaceuticals Inc a biopharmaceutical company (with its presence in San Francisco US and Shanghai China) dedicated to the development of antibiotics to treat drug-resistant bacteria and Cumencor Pharmaceuticals Inc recently announced that the companies have entered a collaboration with Pfizer (NYSE PFE) to discover novel therapeutic agents to treat multi-drug resistant tuberculosis (MDR-TB) Cumencor Pharmaceuticals is a China-based biotechnology company applying MicuRxlsquos proprietary technology platform to discover and develop novel antibiotics for MDR-TB (PR Newswire April 2010) Under the terms of the agreement Pfizer will provide an upfront payment funding for the discovery and preclinical development of novel antibiotics to treat MDR-TB and payments linked to the development and commerciali-zation (including royalty payments on sales) of any antibiotics developed through the collaboration All collaboration research will be conducted at the ZhangJiang High-Tech Park in Shanghai China (PR Newswire April 2010) ―MicuRxlsquos novel approach to developing antibiotics for the treatment of drug-resistant bacteria and their existing technology know-how and exper-tise provide the basis for this collaboration said Steve Yang PhD Vice President and Head of Pfizers Asia Research and Development organiza-tion ―We expect that any compounds resulting from the collaboration will complement our portfolio of anti-infective agents and build our global pres-ence in the emerging pharmaceutical markets of Asia and beyond (PR

Newswire April 2010) Building Intellectual Capital in Asia through Open Innovation Pfizerlsquos open innovation strategy in Asia has a strong capacity development focusmdashnamely the development of intellectual capacity in Asia Beginning with a focus on health issues directly affecting the Asian patient Pfizer is not only devoting its resources to such diseases but through the ACRG will widely share pharmacogenomic information pertaining to lung and gastric cancers Supporting this endeavour are collaborations with the Korea Research Institute for Bioscience and Biotechnology (KRIBB) and the Samsung Medical Centre in Seoul Through its association with the Shanghai Institute of Biological Sciences (Sibs) and the planned Centers of Therapeutic Innovation Pfizer hopes to fund early stage joint discovery and clinical research in life sciences and new drug development Scientists in ba-sic research institutes will learn drug development skills from industry col-laborators while Pfizer scientists learn from and gain access to ideas of the academics Training opportunities in the area of intellectual property man-agement have been equally attractive to scientists Knowledge sharing knowledge development and exchange should support a vibrant life sciences sector in emerging markets in Asiamdashwith the goals of addressing chronic and neglected diseases that are endemic to Asia (Figure 1) References 1 Adams B Pfizer form liver cancer research partnership in Korea InPharm

July 2010 2 Jia H Though the funding is small the joint research is supported by

Pfizerlsquos global resources Chemistry World October-December 2010 3 MicuRx Pharmaceuticals and Cumencor Pharmaceuticals Partner with Pfizer

to Discover and Develop Antibiotics for Drug-Resistant Tuberculosis in China PR Newswire April 2010

4 Moffat B Global pharma eyeing Korean acquisitions as nation becomes test-bed Private Equity Korea May 2010

5 Pfizer And Crown Bioscience Announce A Collaboration To Research And Develop New Treatments For Asian Cancers Pfizer 2009 Pfizer Announces Partnership With Shanghai Institutes For Biological Sci-ences For Drug Discovery Activities BusinessWire July 2009

6 Pfizer Employs WuXi PharmaTech for In Vitro ADME Services GEN News November 2008

7 Pfizer Global Opportunities Annual Review 2010 8 Pfizer Launches Global Centers for Therapeutic Innovation a Network of

Research Partnerships With University of California San Francisco Pfizer November 2010

9 Publicly Available Genomic Database of Profiled Tumor Samples to Provide a Resource for Biomedical Researchers Worldwide Lillycom February 2010

10 Ratner M 2011 Pfizer reaches out to academiamdashagain Nature Biotechnol-ogy 29 3-4

11 Ray T PfizerSamsung Collaboration to Focus on PGx Strategies to Per-sonalize Liver Cancer Treatments in Korea Pharmacogenomics Reporter July 2010

12 Rockefeller joins Pfizerlsquos Global Centers For Therapeutic Innovation The Rockefeller University April 2011

13 WuXi PharmaTech Signs New Collaboration Agreement With Pfizer WuXi AppTec November 2008

14 wwwpfizercom 2011

Figure 1 A Broad Asian Open Innovation Strategy at Pfizer

Pfizerrsquos Open Source Strategy

Asian Cancer Research Group Inc (ACRG)

Reaching Down the Value Chain Alliance with WuXi

PharmaTech Alliance with Crown

Biosciences Alliance with MicuRx Pharmaceuticals

and Cumencor Pharmaceuticals

Ties to AcademiamdashIntellectual Capital Development

China Research and Development Center

Sibs Alliance KRIBB Alliance

Samsung Medical Centre Alliance CTI

10

11

A Networked Open Innovation Strategy The SpringFire Laboratory Network Technological complexities and market pressures have increased the degree to which companies are outsourcing to highly specialized technology driven companies However conventional outsourcing on a project-by-project ba-sis is strategically insufficient in this era A new type of structure-the virtual or networked outsourcing company provides access to customized solutions and is focused on long-term strategic partnering The formation of this new networked outsourcing company structure is driven by the need to access a broad range of expertise and the shift from narrowly focused specialized outsourcing companies to ―all inclusive outsourcing companies The virtual company is much more agile responsive to paradigm shifts and regulatory changes Accessible expertise can cover drug discovery from the earliest stage of lead compound identification and development through preclinical clinical phases manufacturing global registration post-marketing and line-extension studies The virtual outsourcing company enables access to a multidisciplinary team where the appropriate skill sets and expertise can be available at each stage of the biopharmaceutical value chain Appropriate teams are quickly assem-bled to manage issues as they arise In contrast large vertically integrated outsourcing companies can face many of the same problems associated with the fully integrated biopharmaceutical company including integration coor-dination and communication problems For each team the most suitable individuals from the most appropriate outsourcing firms within the network are selected on the basis of skills experience and fit with the project or product goals client and other individuals on the team Virtual outsourcing companies manage the various contracts budgets and relationships for their clients Lower project risk exists as dependency on a single supplier relation-ship is removed A virtual company must add value and not act simply as an intermediary be-tween contractors and large companies To operate successfully within the virtual environment requires strong industrial and academic networks effec-tive project management skills highly developed intellectual property man-agement skills and the ability to bring together partners to enable drug devel-opment Teams of experienced suppliers and experts are tailored to fulfill project or product requirements and are led by a dedicated senior project manager to ensure knowledge coordination and integration Forming the right partnerships and teams as well as managing operational processes in-crease the effectiveness of RampD outsourcing and ensure that the associated cost time and risk-sharing benefits are enjoyed by the Sponsor Models at Work The SpringFire Laboratory Network SpringFire Laboratory Network is a firm with the goal to match pharmaceu-tical medical device and biotech companies with clinical laboratories to pro-vide clinical trial testing solutions SpringFire Laboratory Network is unique in representing a network of independent non-competing high complexity laboratories collectively providing testing offerings to the clinical trial mar-ketplace The founders discovered that there was a strong desire by Sponsors and CROs to have choices in laboratories other than large laboratory companies with rigid requirements and little flexibility or educational institutions that were expensive and less responsive to external clients However there was little incentive for independent laboratories to pursue clinical trials testing given the large upfront costs to start a business development effort and the significantly different and lengthy sales cycle in clinical trials In an attempt to bridge the gap between the strong need for laboratory choices and the reluctance of independent laboratories to shoulder the bur-dens of clinical trials initiatives SpringFire Laboratory Network was estab-lished The network includes hand-selected independent laboratories to pro-vide testing services to clinical trial Sponsors and CROs The SpringFire team provides business development services for the network laboratories as well as expert knowledge around project management and clinical trial-specific operations The laboratories are non-competing and as such they share costs and best practices with one another without competing for the work ―The clinical trial marketplace has a need for esoteric laboratories to respond to its ever-expanding requests states Jim McClintic Managing Partner of SpringFire Laboratory Network

Selecting and Matching Network Participants SpringFire Laboratory Network is committed to a successful outcome for each drug or device development project The network of laboratories is made up of hand-selected ―Centers of Excellence The affiliated laborato-ries provide solutions in sub-specialized anatomical pathology and highly specialized clinical diagnostic testing along with state of the science micro-array testing SpringFirelsquos core team works with all affiliated laboratories to ensure their internal operations meet or exceed the unique regulatory and data manage-ment needs of clinical trials Each laboratory has demonstrated their abilities to provide customized quality results for clinical investigations on an inter-national basis The SpringFire affiliated laboratories are highly regarded in their specialized areas of testing expertise Each affiliate laboratory is evalu-ated to determine their fitness for work in the clinical trials arena A variety of characteristics are considered during a 2-day on site assessment including

Past clinical trial experience Quality laboratory processes Scientific and medical leadership Platform and technology maturity Project management Storage space options Data management capabilities Commitment to providing quality testing to clinical trials Sponsors

or CROs Since most of the laboratories are non-competing the matching process is usually based on the services requested and which lab provides those ser-vices In the event that more than one laboratory provides the requested tests or services SpringFire works with the laboratory that provides the most comprehensive set of tests or services In the event that no single lab performs all of the testing SpringFire will facilitate for two or more of the network laboratories to work together on a study Current Members of the Network SpringFire Laboratory Networklsquos current member laboratories are based in North America The Network provides testing services for both domestic and international study sites and is open to working with laboratories and sponsors around the globe Current members include

With a combined menu of more than 1000 specialty tests SpringFire offers Sponsors and CROs expertise and testing services in numerous therapeutic areas including anatomical pathology coagulation advanced lipids molecu-lar genetics and womenlsquos health The SpringFire network of laboratories col-lectively represent over 90 years of experience in the clinical marketplace while successfully completing more than 250 clinical trials Governance of the Network The SpringFire team is much more than business development The team works closely with each laboratory before during and after the study From the start the team works with each laboratory to build a competitive and timely proposal With the awarding of a contract the SpringFire team re-views and assists with negotiations and contract development During the study start-up phase the team facilitates on-going communications and lo-gistics to ensure the effective completion of tasks including routinely follow-ing up with both the laboratory and Sponsor or CRO to ensure good com-munication and suitable quality laboratory services When the study is con-cluded all parties are provided with a summary and an opportunity to share their experiences thoughts and ideas on the study and the laboratory ser-vices (Figure 1)

Laboratory Specialization

D-Path Dermatopathology

GI Pathology Gastrointestinal and liver pathology

ITxM Diagnostics Coagulation testing

Atherotech Diagnostics Advanced lipids

Baylor College of Medicinersquos Molecular Genetics Laboratories

Pharmacogenomics cytogenetics and medical genetic diagnostics

Baylor College of Medicinersquos Cancer Genetics Laboratory

Cancer-related genetics testing

12

Figure 1 Interactions in the SpringFire Laboratory Network Knowledge management is vital both to the effective working of the project team but also to the efficient transfer of information to and from the Sponsor as well as to external audiences such as site investigators regulatory authorities and potential licensees Outsourcing multiple stages of the drug product life cycle is critical for those companies that require access to expertise and technology in a rapidly chang-ing paradigm without the risk and cost associated with internal development Both young and small biotechnology companies and large traditional phar-maceutical companies can benefit from the model of drug discovery and development offered by organizations such as the SpringFire Laboratory Network

SPRINGFIRE

CORE TEAMPartner Selection

Best Practice Sharing

Baylor College of

Medicines

Cancer Genetics

Laboratory

GI Pathology

D-Path

ITxM Diagnostics

Baylor College of

Medicines

Molecular Genetics

Laboratories

Atherotech

Diagnostics

SPONSORCRO

PARTNER

MATCHING

GOVERNANCE

LESSON

KNOWLEDGE

TRANSFER

UPCOMING BIO PARTNERSHIPS ASIA 2012 CALENDAR

EDITORIAL

TRENDS AND ANALYSIS Articles that run 1500-2000 words and explore trends across the value chain describe opportunities in emerging Asian markets outline policy changes enabling partnerships in these markets and discuss the management of such partnerships

CASE STUDIES Company case studies that run 500-1000 words and explore partnerships across the drug discovery and development value chain

Submit text and electronic images with a resolution of 300 dpi or better We cannot guarantee placement in a particular issue The staff may schedule an entry to coincide with a certain issues editorial theme

COMPANY PROFILES Service provider profiles Send the following information Company name

contact information description services offered markets served and partnerships sought Also send a company logo

TECHNOLOGY PROFILES Technology licensing opportunities Send the following information Technology background areas of application competitive advantages stage of development intellectual property status partnerships sought and contact

information Please forward an image if applicable

NEWS RELEASES Updates on deals partnerships opportunities Send a press release and a company logo

MONTH FEATURE STORIES TRENDS AND ANALYSIS

CASE STUDIES

February 2012 New Models of Open Innovation in Asia

Business Model Analysis

Company Profiles

May 2012 Cluster Formation and Participation in Asia

Case Analysis Cluster Profiles

August 2012 Partnerships and Biopharmaceutical Capacity

Development in Asia

Case Analysis Company Profiles

November 2012 Transferring the Lessons from Asia to the Bottom of

the Pyramid

Lessons from India China Singapore

Middle East

Company Profiles

13

14

15

Convergence Innovation Development at the Intersection of Disciplines Organizations and Products Convergence Innovation is the paradigm where discovery and technology creation occur at the intersection of multiple disciplines and organizations Specifically convergence between the chemical biological cognitive physi-cal and information sciences is evident Firms and researchers will cross the boundaries between these disciplines to create technological value--finding solutions to address health environmental and energy challenges In parallel will be emergence of new models of collaboration to enable knowledge crea-tion and knowledge dissemination Central to Convergence Innovation will be a determination of the common value of knowledge versus the private value of knowledge across the associated disciplinesmdashwith the goal of ad-vancing and commercializing technology Levels of Convergence Convergence can be considered at three levelsmdashnamely convergence in the sources of knowledge for research convergence in organizational forms to enable technology development and convergence at the product level with the embodiment of knowledge in complementary products For example while nanotechnology research has been shown to have a dominant focus on material sciences additional analysis has demonstrated that nano-based research increasingly draws its knowledge from other areas (Porter and Youtie 2009) Specifically Porter and Youtie (2009) reveal that while nano-based publications center on materials science (including chemistry and physics) nano-based research also significantly involves many other fields including biomedical sciences computer sciences and mathematical sci-ences environmental sciences and engineering Citation patterns further show extensive referencing across macro-disciplinesmdashwith a preponderance of references in nano-related articles to research outside the macro-discipline in which the article is published (Porter and Youtie 2009) Conse-quently at this level of convergence the sharing and absorption of research across the involved disciplines will be necessary for downstream value crea-tion (Figure 1) Figure 1 Convergence at the Disciplinary (Knowledge Sources) Level At the next level of convergencemdashthe organizational levelmdashthe interaction between technological convergence and models of open innovation is be-coming apparent Licensing mergers acquisitions and strategic alliances such as joint ventures as well as new structures such as innovation networks and open innovation communities represent alternative strategies that may be used to acquire or access the necessary knowledge or assets for discovery and development From a convergence perspective the opportunity exists for a (public or private) stakeholder to not only interact with other (public andor private sector) stakeholders through simple one-to-one traditional collaborations but with many stakeholders through more complex mecha-nisms such as consortia crowdsourcing and other such open innovation communities For example the need for shared scientific expertise and large scale infrastructure in both nanotechnology and biotechnology is thought to be responsible for the development of networks spanning both fields (Figure 2) The pervasiveness of enabling technologies such as information and communications technology (ICT) have encouraged innovation net-works to increase in dominance and have lead to the blurring of organiza-tional boundaries among research organizations (Powell Koput and Smith-Doerr 1996 Roijakkers and Hagedoorn 2006) In such collaborations the opportunity to assume multiple roles exists to enable RampD including the collaborator who shares knowledge with one or many partners for the pur-poses of discovery or development the incubator who provides funding or expertise to other stakeholders to support venture development the enabler

who provides access to tools equipment large scale infrastructure or other services to support product development and the orchestrator who manages the network of partners with either the objective of knowledge creation or knowledge application (Melese Lin Chang and Cohen 2009) At this level of convergence there is the critical need to closely examine the management processes associated with collaboration as the collaborative strategies have not only grown in relevance but also in terms of impact and the number of participants involved

Collaboration Model

Access

Simple (One to One) Complex (Many to Many)

Collaboration Complexity

Figure 2 Convergence at the Organizational Level Open Access=Participation Open Closed Access=Exclusive Partnership

Simple=One to One Link between Partners Complex=Many Links between Several Partners PPP=Public Private Partnership JV=Joint Venture

The location in the above grid determines the extent to which the collabora-tion is open or closed and between one few or many partners

Finally the outcomes from any collaborative interaction will increasingly lead to convergence at the product level In this case multiple components or products will be packaged together to enhance the value over individual product offerings (Figure 3) Such bundled products will have the goal of simultaneously meeting several technological needs be it for biomedical treatment as seen in the use of nano-based diagnostics paired with therapeutics in agriculture or environmental applications as seen in the use of sensors to measure pathogens in food and the environment or the use of nanospheres to selectively detect harmful materials in water and then used for detoxification and in the creation of novel energy technologies as seen in the use of catalysts in particles for biodiesel synthesis to name a few (Schmidt 2007) At the product level effective intellectual property man-agement strategies and coordination between regulatory agencies will be paramount

Figure 3 Convergence at the Product Level

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

COGNITIVE

PPP JV

MampA

Consortium Innovation Network

Crowdsourcing Open Source Network

Licensing

Proprietary Open Innovation Community

Closed

Open

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

Nanomaterials

Nanodevices

Nanoelectronics

Nanosensors

Bioinformatics

Biosensors

Tissue Engineering

Drug Delivery

Diagnostics

Drug Delivery

Chemical Catalysis

Nanofiltration

Chemical Sensors

Neuron Network

Prostheses GenerationCOGNITIVE

16

The Impact of Convergence At each level of convergence there are several complexities that either im-pact the management of stakeholder interaction or the management of the knowledge based assets generated through such interactions For example given the expected intersection between disciplines knowledge complexities including varied types (such as biological information and biological struc-tures chemical knowledge and structures physical knowledge and struc-tures) and forms of knowledge (disembodied and embodied) will drive the need for a common platform for knowledge integration validation and standardization Beyond integration of knowledge it is expected that teams of biological chemical and physical scientists will increasingly form to de-velop and bridge together the necessary tools and equipment for RampD ac-tivities (Ideker Galitski and Hood 2001 Kitano 2001 Kautt Walsh and Bittner 2007 Boardman 2008 Boardman and Ponomarioy 2009) We must also consider the impact of convergence on the downstream rights to de-velop products Lemley (2005) discusses that unlike other industries in which patentees are actual or potential participants in the downstream mar-ket a significant number of corporate patentees will increasingly own rights not just in the industry in which they participate but other industries as well Analysts fear that over-patenting alongside the large shadow of such patents could not only fragment technology but could discourage stakeholders in a number of industries from attempting to develop products incorporating infringing technologies (Lemley 2005) It is important to consider that as multiple disciplines increasingly working together each discipline will have its own priorities and conventions regarding knowledge dissemination and knowledge appropriation (Hilgartner 1996) One discipline may signal its success during knowledge generation through the enclosure and the sale of disembodied knowledge Another discipline may measure its success exclu-sively by the embodiment of knowledge in medical products (Hilgartner 1996) While patent pools are a suggested solution to the possible patent holdups (DlsquoSilva 2009) it has been proposed that as has occurred in the genomics arena innovation-based networks with rules regulating the devel-opment and appropriation of critical technology building blocks could not only circumvent the product development and legal problems of the past but will also bring together the requisite intellectual and physical capital (DlsquoSilva 2009 Allarakhia and Walsh 2010) A Template for Managing Interactions and Knowledge-Based Assets Governance strategies must seek to align the incentives for participation in collaborative activities for multiple stakeholders The use of rules to define actions communication mechanisms used to enable and monitor actions and to share the outcomes are all critical to ensure that goals are achieved Structure and Roles It is expected that the chosen collaboration modemdashone to one one to many or many to many collaboration and objectives set for the collaborationmdashpooling of assets generation of new assets andor pol-icy creation will impact the type of participants that will join The organiza-tional structure chosen will be determined in part by the attributes of the resources to be contributed or developedmdashinformation supporting tools technology as well as the location of participantsmdashwith linkages established through physical clustering or virtual networking Thereafter the organiza-tion of participants may be a function of technological expertise geographic location or project-based management expertise Resource Types and Outcomes Participants will contribute several inputs including funding equipment and human capital The resulting outcomes include data materials tools and technology Facilities store artifacts in or-der to make them accessible Traditional facilities have been libraries and archives containing books journals and papers New technologies have made electronic distributed information possible Artifacts are discreet ob-servable nameable representations of ideas such as articles research notes books databases maps computer files and web pages (Foray 2004 Hess and Ostrom 2006) In the context of nanotechnology databases material and model repositories accessible laboratories that aggregate equipment and tools for nanotechnology development are varied options to manage the outputs Hence any outcomes analysis should seek to determine the success of collaboration including the amount of data produced and accessed the material generated housed and accessed the tools created and used and the technology produced by participants Governance Internal rules or mechanisms used to promote cooperative be-haviour can include formalizing the requirements to join the initiative en-suring frequent interactions encouraging communication between partici-pants monitoring and punishing defection and setting the boundary for access to resources An authority that regulates access to resources can en-sure that a fair and efficient governance strategy is used (Ostrom Gardner and Walker 1994) While access generally refers to disembodied assets such

as data extraction can involve the removal andor use of physical materials models and tools Knowledge use and access can be governed by the fol-lowing rules sharing with partners only (closed access) sharing with part-ners and the public at large (open access) and intellectual property assign-ment potentially on information materials tools and technology with the specification of rights to use based on licensee type geography or target market for product launch Creating Value The Path Forward in The path forward will require the creation of supporting policies encourag-ing multi-disciplinary collaboration At a national level several governments have recognized the importance of innovation networks to develop capacity and compete on an international level Consequently policies are now pro-viding more RampD funding and incentives encouraging the formation of multi-sectoral networks (Corley Boardman and Bozeman 2006) New prod-ucts of convergent technologies will necessitate cooperation among regula-tory bodies with the coordination of information flow coordination of du-ties and increased harmonization between international regulatory bodies (Castle et al 2006 Drezek and Tour 2010) To avoid the mistakes of the past policies outlining guidelines for the management of intellectual prop-erty rights can ensure that stakeholders will correctly assess the common value of knowledge versus the private value of knowledgemdashresulting in the transition from open knowledge to appropriated knowledge with the objec-tive of pursuing (unilateral or collaborative) downstream product develop-ment References 1) Allarakhia M amp Walsh S Managing knowledge assets under conditions of radical change The case of the pharmaceutical industry Technovation 31 105-117 (2011) 2) Boardman P Beyond the stars The impact of affiliation with university biotechnology centers on the industrial involvement of university scientists Technovation 28 291-297 (2008) 3) Boardman Pamp Ponomarioy B University researchers working with pri-vate companies Technovation 29 142-153 (2009) 4) Castle D Loeppky R Saner M Cline C Dalgleish J amp Wojnik V Convergence in Biotechnology Innovation Case Studies and Implications for Regulation (University of Guelph Guelph 2006) 5) Corley EA Boardman PC amp Bozeman B Design and the manage-ment of multi-institutional research collaborations Theoretical implications from two case studies Research Policy 35 975-993 (2006) 6) Drezek RA amp Tour JM Is Nanotechnology Too Broad to Practice Nature Nanotechnology 5 168-169 (2010) 7) DlsquoSilva J Pools thickets and open source nanotechnology European Intellectual Property Review 31 300-306 (2009) 8) Foray D The Economics of Knowledge (MIT Press Cambridge 2004) 9) Hess C amp Ostrom E Understanding Knowledge as a Commons From Theory to Practice (MIT Press Cambridge 2006) 10) Ideker TT Galitski L amp Hood LE A new approach to decoding life Systems biology Annual Review Genomics and Human Genetics 2 343-372 (2001) 11) Kautt M Walsh S amp Bittner K Global distribution of microndashnano technology and fabrication centers A portfolio analysis approach Technol-ogy Forecasting and Social Change 74 1697-1717 (2007) 12) Kitano H Systems biology Toward systems-level understanding of bio-logical systems Foundation of Systems Biology 1-29 (MIT Press Cam-bridge 2001) 13) Lemley MA Patenting nanotechnology Stanford Law Review 58 601-630 (2005) 14) Melese T Lin SM Chang JL amp Cohen NH Open innovation net-works between academia and industry an imperative for breakthrough therapies Nature Medicine 15 502-507 (2009) 15) Ostrom E Gardner R amp Walker J Rules Games and Common-Pool Resources (The University of Michigan Press Ann Arbor 1994) 16) Porter AL amp Youtie J How interdisciplinary is nanotechnology Jour-nal of Nanoparticle Research 11 1023-1041 (2009) 17) Powell WW Koput KK amp Smith-Doerr L Inter-organizational col-laboration and the locus of innovation Network of learning in biotechnol-ogy Administrative Science Quarterly 41 116-145 (1996) 18) Roijakkers N amp Hagedoorn Inter-firm RampD partnering in pharmaceu-tical biotechnology since 1975 Trends patterns and networks J Research

Policy 35 431minus446 (2006) 19) Schmidt K Project on Emerging Nanotechnologies (2007)

17

18

Beyond Cost-Savings Hidden Considerations for Conducting Clinical Trials in Asia

By Jessica Liu General Manager ChinaNorth Asia INC Research and Garth Tierney Regional General Manager Australia and South East Asia INC Research

Abstract Pharmaceutical industry sponsors are well-aware of the cost bene-fits of conducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the pri-mary criteria by which sponsors should select the Asian regions in which they will conduct their clinical trials Other important considerations include disease incidence treatment standards minimizing variability maximizing protocol adherence regulatory factors politics cultural considerations and ethical concerns While global spending on medicines is expected to grow three percent to five percent over the next five years spending in the ―pharmerging markets is expected to double1 The desire to access this fast-growing consumer base is the primary reason large pharmaceutical companies are increasing their clinical presence in emerging countries like China according to a report from investment bank-ing firm William Blair2 But small to midsize drug makers are also moving into emerging markets driven primarily by cost differentials China can offer as much as a 50 percent cost advantage compared to the United States or Europe as can Thailand the Philippines or Malaysia Most countries in Asia are at least 20 percent to 30 percent more cost-efficient than their western counterparts although there are notable exceptions such as South Korea and Japan Pharmaceutical industry sponsors are well-aware of the cost benefits of con-ducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the primary criteria by which sponsors should select the Asian regions in which they will con-duct their clinical trials Other important considerations for conducting a trial in Asia include disease incidence and treatment standards the potential to minimize variability and maximize protocol adherence regulatory and political factors and cultural and ethical considerations Disease Incidence and Treatment Standards With more than four billion people Asia offers sponsors a deep pool from which to draw clinical trial participants Indeed for sponsors conducting late-stage clinical trials in indications such as diabetes or cardiovascular dis-ease which can require thousands of patients establishing Asian trial sites to tap into that pool is critical The key is determining which Asian countries will best match each triallsquos unique patient requirements For sponsors most concerned with enrolling large numbers of patients into a trial highly populous countries such as India China Indonesia Japan the Philippines Thailand and Malaysia may be the best fit A recent CRO survey revealed that China is the leader in patient recruitment for the Asia-Pacific region followed by India and South Korea3 However sponsors need to be aware that the region is still expanding and a vast population does not equate to vast number of ICH GCP trained sites in the larger countries of China and India This can be a limiting factor in gaining access to the best sites for certain indications If on the other hand a sponsor is conducting a Phase I trial they should know that certain Asian countries have specific regulatory requirements for approval of a clinical trial application (CTA) that can add complexity to the process Others like Australia specialize in Phase I studies thanks to their fast and straightforward approval processes high-quality clinical practices and variety of many academic and commercial clinical trials centers4 Selecting an appropriate region for trial sites also depends on the incidence of the target disease in each countrylsquos population Highly-developed Asian countries have a higher incidence of diseases common in the West such as diabetes and cardiovascular disease while diseases such as tuberculosis are more common in Southeast Asia Some countries like India have diverse patient populations afflicted with diseases of both the developing and devel-oped world

When it comes to standards of care certain diseases like breast cancer lung cancer and diabetes are treated in much the same way in Asia as they would be treated in the Western world But for many other indications medical practice standards differ both from East to West and between the different Asian regions Sponsors seeking to meet specific market regulatory approval will need to mirror Western standards-of-care and as such should consider focusing trial sites to Australia New Zealand Singapore Taiwan Hong Kong and South Korea But differing standards of care can also provide unique opportunities Asia offers relatively more patients for first-line and second-line cancer drug evaluation than the West where such patient stores have been largely exhausted Risk Mitigation Sponsors should be prepared that some Asian trial sites ndash even those that have adapted Western-style medical practices ndash may require more assistance when it comes to following protocol and differentiating between medical practice and clinical research Not all Asian sites will have the infrastructure for a clinical trial A good CRO partner will work with a sponsor and site investigators to identify any infrastructure gap ndash such as a dedicated com-puter fax or freezer ndash and develop plans to ensure sites have the essentials to deliver a study efficiently Data integrity is another area that sponsors and CROs need to focus atten-tion It is critical to reduce variability by ensuring all monitoring and site staff are well trained Monitors need to understand how to identify and pro-actively resolve issues early on to minimize long-term issues with patient recruitment and data collection They should understand how to recognize early warning signals and not overreact to red herrings Investigators and site monitors also need to be trained in adverse event reporting to ensure that they meet local regional and global clinical trial safety reporting Sponsors must ensure monitoring visits are being conducted regularly as such visits make it more likely that recruitment and data integrity issues will be detected early and managed in a timely and effective manner Equally im-portant site staff needs to be as consistent as possible Finally sponsors need to implement a proven system for data reporting as variability in the data collection process may decrease the evaluable patient pool in the trial decreasing the sponsorlsquos chances to establish statistical sig-nificance or detect a rare safety signal Regulatory and Political Factors While regulatory bodies in South Korea and Taiwan as well as in Singapore have adopted an FDA-based approach each Asian country has its own regulatory idiosyncrasies In China for example reviews take on a project-based nature and sponsors should never assume that what worked in one application will be directly applicable to another No matter how harmo-nized Asia may appear the cookie-cutter approach simply doesnlsquot work However the fact that regulatory policies are still evolving in certain Asian countries provides a unique opportunity to sponsors the opportunity to in-fluence those policies There are no formal guidances or rules covering this topic but it is a real opportunity The recent economic downturn has prompted finance ministers in many countries to more closely analyze the cost of healthcare and they are realizing that good drugs can decrease their overall costs To ensure new drugs are available in their countries they have become increasingly eager to support clinical trials and they are engaging in conversations with sponsors about how approval pathways might be con-structed that take healthcare economics into consideration For example if a sponsor works closely with regulatory agencies to design the right preclinical and Phase I trials could a single Phase IIIII trial be sufficient for approval in some indications Are so many repetitive studies really necessary Is the requirement or guidance relevant to the current technology If a sponsor can prove to the government that a certain disease is currently costing 50 cents per person per day to treat and a new drug would change treatment paradigms and reduce that cost to a penny that is a compelling argument Not compelling enough to compromise safety or effi-cacy but compelling enough to expedite things along by partnering to agree upon the most appropriate pathway to approval While some regulatory agencies may not be as comfortable with the idea of allowing more flexibility and customization in the clinical trial design many are open to reducing bu-reaucracy and the associated time delays for CTA approval ndash particularly when there is potential to significantly impact health economics Govern-ments may provide commercialization support including funding to enable

19

development of new technologies and testing methods There may also be a higher priority given to certain CTA applications in the review queue Australia and Singapore have adopted a more simplified regulatory process and offer a notification scheme rather than formal review by the regulator South Korea and Taiwan are working to ease regulations and facilitate pro-tocol reviews Countries such as China have lengthy regulatory approval processes however there are some early indications that this may be de-creasing India is currently experiencing slower regulatory paths Interest-ingly some Asia Pacific countries that have historically been considered ―easy targets for clinical trials are increasing their regulations While there is much potential to collaborate with regulatory bodies in Asia these are not the only government agencies with which a sponsor must work Each country has its own policies on insurance regulations import licenses and other factors that affect a sponsorlsquos ability to establish and run clinical trial sites Each should be reviewed before selecting countries in which to establish trial sites Cultural and Ethical Considerations Language barriers can be easily overcome by CRO partners with offices across Asia and they are the least of a sponsorlsquos worries when it comes to cultural differences More pressing are issues such as the fact that some Asian researchers may believe that their participation in a trial gives them the right to publish data on their findings while sponsors require at least some degree of control over the publication of trial data Such issues are best managed by thorough communication prior to the start of enrolment In certain countries cultural factors may positively impact a trial Ethical factors may also weigh on a sponsorlsquos decision to conduct trials in certain Asian countries There are certain diseases that present a serious unmet medical need specifically within Asian populations such as foot-and-mouth disease and such indications obviously lend themselves to Asian clinical tri-als Yet if a sponsor has no plans to launch a drug in certain Asian countries perhaps because the populations of those countries would not be able to afford the drug then conducting clinical research in those countries may present ethical challenges For the most part however sponsors are eager to launch their drugs into the rapidly growing Asian healthcare markets and Asian clinical trials are necessary to support this endeavour As mentioned initially the cost advan-tages of conducting clinical trials in Asia cannot be ignored as both large and small companies face pressures on their bottom lines But while costs are important they are not the only consideration About the Authors Jessica Liu MD is the general manager for Clinical Operations in China and North Asia at INC Research She previously managed international pro-jects out of the European headquarters office for a global CRO in Brussels Belgium Prior to that she worked for 15 years in the Chinese affiliates of several global pharmaceutical companies overseeing clinical operations pro-ject management and medical affairs She conducted and managed Phase I-IV clinical studies across multiple therapeutic areas Dr Liu started her ca-reer as a resident physician in the endocrinology Department of the Peking Union Medical College Hospital (PUMCH) in Beijing China She received her Medical Doctorate from the University of Beijing (China) and has a Di-ploma in Pharmaceutical Medicine from the University of Basel (Switzerland) Dr Liu is based in Beijing She can be reached at jialiuincresearchcom Garth Tierney is the regional general manager for Australia and South East Asia for INC Research Garth previously founded and managed Trident Clinical Research a CRO based throughout Australia New Zealand and In-dia After 14 years of operation Trident was acquired by INC Research in June 2011 Prior to founding and managing Trident Clinical Research Garth worked for 8 years in the clinical research industry in various senior manage-ment and operational management roles across several companies including a global CRO an Australian pharmaceutical company and two global phar-maceutical companies Garth has a pharmacology (University of NSW) and business administration (University of Adelaide) background and worked in hypertension research for several years before joining the pharmaceutical industry During this time Garth published various papers and won the Whelan prize (awarded by ASCEPT) He can be reached at gtierneyincresearchcom

References 1 IMS IMS Institute Forecasts Global Spending on Medicines to Reach

Nearly $11 Trillion by 2015 May 18 2011 2 Wm Blair Pharmaceutical Outsourcing Industry Analysis Jun 10

2010 3 CyberMedia Research-BioSpectrum Asia-Pacific CRO Survey 2011 4 Clinical Trials Action Group Report Commonwealth of Australia

2011 CPTR Yields Progress New Six-Way Agreement has Goal to Speed Development of TB Drug Combinations November 11 2011 The Critical Path to TB Drug Regimens (CPTR) announced this November an innovative agreement between AstraZeneca Bayer Sanofi Tibotec TB Alliance and the World Health Organization to share information on tuber-culosis (TB) compounds within their respective drug pipelines to quickly identify and work together to develop the most promising TB drug regimen regardless of sponsor The partnership facilitates a more collaborative ap-proach to TB drug development with the objective to dramatically speed the development of shorter safer and more effective multi-drug treatments that are urgently needed to control the global TB pandemic The agreement will enable information-sharing around scientific and clinical data on TB compounds in clinical development By sharing data partners can identify opportunities to test their compounds in combination speeding availability of future TB regimens The collaboration includes the majority of global sponsors with TB drugs in clinical development Under the agree-ment if two or more organizations choose to work together to further de-velop a regimen they will enter into a separate arrangement that defines the rights and responsibilities of each party CPTR is working closely with regulatory scientists at the US Food and Drug Administration European Medicines Agency and other regulatory bodies in China India and some countries in Africa to develop the tools that are needed to allow testing of new TB drugs in combination cutting years off the development timeline Under the leadership of the Critical Path Institute CPTRlsquos Regulatory Science Consortium focuses on establishing consensus on preferred standards methods and tools for developing new TB drug regimens and obtaining official acceptance from international regulatory authorities Source TB Alliance Pfizer Establishes the Cambridge Research Center September 01 2011 Pfizer Inc recently announced it has entered into a 10-year lease agreement with the Massachusetts Institute of Technology (MIT) for more than 180000 square feet in a new building under development in Cambridge Massachusetts Located at 610 Main Street South in Kendall Square the new site will be the future location of Pfizerlsquos Cardiovascular Metabolic and En-docrine Disease (CVMED) and Neuroscience Research Units The reloca-tion of the two Research Units will substantially boost Pfizerlsquos footprint in Cambridge making it the second largest biopharmaceutical company in Massachusetts in terms of jobs ―We were very deliberate in our choice to move to Cambridge MA as a key part of our RampD strategy By expanding our presence in one of the worldlsquos great centers of scientific and medical innovation we will provide the best environment for our researchers to invent the next generation of medicines in areas of greatest need such as Alzheimerlsquos disease schizophrenia diabe-tes and cardiovascular disease said Rod MacKenzie senior vice president and head of PharmaTherapeutics Research amp Development ―We intend to foster productive formal and informal collaborations between our drug dis-covery experts and the outstanding scientists of Cambridgelsquos world class institutions This is a very exciting period in Pfizer RampD Source Pfizer

20

21

Continued from page 19hellip UK Academia Given Access to Selected AstraZeneca Compounds December 11 2011 Following a unique landmark agreement between AstraZeneca and the UK Medical Research Council (MRC) a wide range of compounds will be made available to UK medical researchers next year In a new type of collabora-tion academia will be granted access to 22 clinical and preclinical com-pounds developed by AstraZeneca Though making individual compounds available to external academic investigators is not unusual the breadth and open-innovation nature of this collaboration is unique because it provides unprecedented access to well characterised clinical and preclinical candidate molecules to investigators across all UK academic institutions There is significant unmet need in diseases both within and outside Astra-Zenecalsquos current research focus This collaboration builds on the sizable in-vestment made in developing candidate drugs within AstraZeneca by help-ing researchers to explore their potential more broadly with the hope that they will find new future medicines It also helps AstraZeneca explore areas of unmet patient need beyond its current disease area focus leveraging great external science in a way that is highly flexible and cost effective The New Opportunities Innovative Medicines Unit (iMed) in AstraZeneca has been central in establishing this research collaboration with the MRC and has acted as the interface with the other AstraZeneca iMeds to agree which compounds would be eligible Clive Morris VP New Opportunities iMed said that ―This Open Innova-tionlsquo approach brings together the strengths of AstraZeneca the MRC and UK Academia into what I hope will be a really potent mix bringing forward really exciting new ideas that could transform our understanding of some diseases It highlights an openness to new scientific thinking and also places external scientific collaboration right at the heart of what we do It is also an excellent way to broaden our portfolio of activities into new diseases for As-traZeneca leveraging the wealth of expertise across UK academia AstraZeneca and the MRC will invite preclinical and clinical research pro-posals from across the UK academic community to investigate the com-pounds in a range of diseases with a view to finding new treatment oppor-tunities AstraZeneca will work with the academic collaborators to develop the best scientific proposals and the MRC will select the highest quality pro-posals for funding awarding up to pound10 million in total to fund the success-ful proposals The successful applicants will then work collaboratively with AstraZeneca to deliver the studies David Brennan AstraZenecalsquos Chief Executive Officer said ―Innovative collaborations are playing a crucial role in finding ways to unlock the poten-tial of new treatments The UK has a strong heritage of research excellence in life sciences We hope that in sharing these valuable compounds with aca-demic scientists through the MRC new discoveries will be made by explor-ing additional uses of these compounds Source AstraZeneca WIPO ReSearch A Neglected Tropical Diseases Initiative October 26 2011 The World Intellectual Property Organization (WIPO) in an unprecedented collaboration with leading pharmaceutical companies and BIO Ventures for Global Health (BVGH) recently launched the WIPO Re Search a new consortium where public and private sector organizations share valuable in-tellectual property (IP) and expertise with the global health research commu-nity to promote development of new drugs vaccines and diagnostics to treat neglected tropical diseases malaria and tuberculosis In WIPO ReSearch Alnylam Pharmaceuticals AstraZeneca Eisai GlaxoS-mithKline MSD1 Novartis Pfizer and Sanofi are collaborating with WIPO BVGH the US National Institutes of Health (NIH) and multiple non-profit research organizations These include the California Institute of Technology the Center for World Health amp Medicine the Drugs for Ne-glected Diseases initiative Fundaccedilatildeo Oswaldo Cruz (Fiocruz) Massachu-setts Institute of Technology Medicines for Malaria Venture PATH the South African Medical Research Council the Swiss Tropical and Public Health Institute the University of California Berkeley and the University of Dundee (UK)

―WIPO ReSearch is a ground breaking example of how a multi-stakeholder coalition can put IP to work for social benefit said WIPO Director Gen-

eral Francis Gurry ―By joining WIPO ReSearch companies and researchers commit to making selected intellectual property assets available under roy-alty-free licenses to qualified researchers anywhere in the world for research and development on neglected tropical diseases malaria and tuberculosis This commitment should accelerate the development of medicines vaccines and diagnostics for these diseases

According to the World Health Organization (WHO) neglected tropical diseases today impair the lives of an estimated 1 billion people The WHO provides technical advice to WIPO on public health issues and research pri-orities as appropriate

By providing a searchable public database of available intellectual property assets information and resources WIPO ReSearch facilitates new partner-ships with organizations that conduct research on treatments for neglected tropical diseases malaria and tuberculosis

Membership in WIPO ReSearch as a user provider or supporter is open to all organizations that endorse adhere to and support the projectlsquos Guiding Principles These Guiding Principles include the commitment that IP li-censed via WIPO ReSearch will be licensed on a royalty-free basis for re-search and development on neglected tropical diseases in any country and on a royalty-free basis for sale of neglected tropical disease medicines in or to least developed countries

―The innovative pharmaceutical industry has an important part to play in addressing unmet medical needs and increasing access to our collective pro-prietary information will help advance research into treatment options for these underserved diseases said David Brennan CEO of AstraZeneca and President of the International Federation of Pharmaceutical Manufacturers amp Associations (IFPMA) ―WIPO ReSearch has the potential to make a real impact on global health which is why we are proud to make all patents owned by AstraZeneca available to this important initiative for promoting the research and development of treatments for neglected tropical diseases anywhere in the world

The WIPO ReSearch database includes a wide variety of contributions rele-vant to malaria tuberculosis and other neglected tropical diseases including individual compounds and associated data screening hits from compound libraries and expertise and know-how in pharmaceutical research and devel-opment In addition WIPO ReSearch offers the opportunity for neglected tropical disease researchers to work directly with scientists at pharmaceutical companies to advance RampD on these diseases As WIPO ReSearch moves forward offerings from current partners will continue to grow and new pro-viders are expected to join to add to the wealth of information compounds and services available

―NIH licenses its patents to enable the private sector to develop diagnostics therapeutics and devices that improve public health said National Insti-tutes of Health Director Francis S Collins MD PhD ―We want to ensure that our biological materials and patents covering treatments or vaccines for neglected tropical diseases as with all diseases are available as broadly as possible to speed the development of new products for people who are most burdened by these diseases and WIPO ReSearch helps us to do this

The founding eight pharmaceutical companies WIPO BVGH and NIH are joined by a distinguished group of globally recognized institutions as provid-ers potential users and supporters of WIPO ReSearch (see annex) BVGH will manage the WIPO ReSearch Partnership Hub which will facilitate rela-tionships between the pharmaceutical company providers and new users

―In our role as administrator of the WIPO ReSearch Partnership Hub BIO Ventures for Global Health is excited to bring these new opportunities to neglected disease researchers around the world to accelerate their work in this area of critical unmet need said Don Joseph Chief Operating Officer of BVGH ―As both present and future providers evaluate their internal data and IP with the goal to provide focused information which they believe will best serve the neglected tropical disease research and development commu-nity WIPO ReSearch will build on previous RampD investments to speed the development of drugs vaccines and diagnostics for the neglected diseases that disproportionately impact people living in resource-poor countries Source WIPO

Page 5: Bio Outsourcing Asia: Volume 1 Issue 3 2011.pdf · TB drug trials. Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies

5

AstraZenecamdashMaking Partnerships Work for Product Development at the Bottom of the Pyramid AstraZeneca and other pharmaceutical companies government agencies NGOs donors and academics have joined a collaboration led by the Bill and Melinda Gates Foundation the TB Alliance and the Critical Path Institute to explore funding mechanisms and support for late-stage clinical trials Currently there are nine promising TB compounds from at least six antibiotic classes in development including one compound from Astra-Zeneca AstraZenecalsquos dedicated research facility in Bangalore India is a key component in this initiative The initiative offers a model for other multi-stakeholder partnerships working to improve health at the bottom of the pyramid (AstraZeneca 2011) Promising compounds identified in this col-laboration will also be tested in combination with other therapies as part of the Critical Path to TB Drug Regimensmdasha cross-sector initiative with the objective to speed up the development and delivery of TB drug regimens to patients (AstraZeneca 2010) ―Collaboration is absolutely vital to developing the tools needed to truly revolutionize the way TB is treated and overcome the global TB epidemic said Mel Spigelman MD President and CEO TB Alliance ―AstraZeneca has a well-established TB drug discovery program and is a crucial participant in the Critical Path to New TB Regimens Together our research promises to bring important advances to TB patients in need (AstraZeneca 2010) Les Hughes AstraZenecalsquos Vice President of Infection Discovery said ―AstraZeneca is building a leading franchise in the treatment of infectious diseases both through our own in-house research as well as through col-laborations This collaboration is part of the global partnership that will be needed to conquer the TB epidemic We are excited to be working with the TB Alliance to help move forward the drug discovery program and quickly speed promising candidates into clinical development (AstraZeneca 2010) Augmenting its research in Bangalore AstraZeneca recently joined a consor-tiummdashthe More Medicines for Tuberculosis (MM4TB)mdashto fight TB with French rival Sanofi-aventis the University of Cambridge and other research organizations The MM4TB consortium has the goal of developing new drugs for successful and shorter treatment for TB (Kollewe 2011) The Eacutecole Polytechnique Feacutedeacuterale de Lausanne (EPFL) along with the universi-ties of Pavia in Italy and Uppsala in Sweden are also participants in the con-sortium AstraZeneca is sharing its compounds and expertise Research will be carried out at a London medical school and the John Innes Centre in Norwich as well as in Russia India and South Africa The aim is to have 10 to 20 compounds in the pipeline to develop two or three successful TB drugs that will be given as a cocktail to patients (Kollewe 2011) In parallel AstraZeneca announced its partnership with Medicines for Malaria (MMV) in 2010 Under the terms of the agreement scientists work-ing with MMV will screen 500000 compounds in AstraZenecalsquos unique li-brary for activity against P falciparum the most lethal of malaria parasites (MMV 2010) Tim Wells MMVlsquos Chief Scientific Officer said ―AstraZeneca has had a long standing interest in neglected disease and we are delighted to be able to collaborate with the centre in Bangalore on this exciting project in malariahellip (MMV 2010) The Critical Path to TB Drug Regimes (CPTR) The Critical Path to TB Drug Regimens (CPTR) is a broad collaboration of pharmaceutical companies government regulatory and multilateral agen-cies donors academia advocates and NGOs that aims to accelerate the development of new safe and highly effective tuberculosis (TB) treatment regimens with shorter therapy durations (CPTR 2011) AstraZeneca is among several partners that signed the CPTR Statement of Principles on March 18 2010 The partners have agreed to

Encourage information sharing and collaboration among interna-tional organizations industry and regulatory agencies to innovate and accelerate TB drug development and get important new thera-pies to patients

Promote the development of new regulatory approaches that sup-port innovative research into TB therapeutics evaluate new TB drug combinations safely and effectively and reinforce current guidelines for development of effective drug combinations

Work together using industry best practices to test TB drug can-didates in combination regimens beginning early in the develop-ment process

Create a collaborative coordinating structure to oversee this initia-tive

Explore creative new funding streams for developing novel com-

bination TB therapies Advance efforts to utilize existing clinical trial sites for TB while

also building clinical trial site capacity for late-stage combination TB drug trials

Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies for patients in need

(CPTR 2011) On November 9 2011 the Critical Path to TB Drug Regimens (CPTR) an-nounced an innovative agreement between AstraZeneca Bayer Sanofi Tibotec TB Alliance and the World Health Organization The collaboration will enable information-sharing around scientific and clinical data on TB compounds in clinical development By sharing data it is anticipated that partners can identify opportunities to test their compounds in combination If two or more organizations choose to work together to further develop a regimen they can then enter into a separate arrangement that defines the rights and responsibilities of each party ―This initiative is a further example of industry working together and with others to share knowledge and exper-tise for the benefit of the wider society said David Brennan Chief Execu-tive Officer of AstraZeneca (CPTR Yields Progress 2011) The More Medicines for Tuberculosis (MM4TB) Consortium AstraZeneca is also one of 25 partners from 13 countries in Europe America Asia and Africa to join the More Medicines for Tuberculosis (MM4TB) consortium Members include

The Eacutecole Polytechnique Feacutedeacuterale de Lausanne (EPFL) Pharmaceutical companies AstraZeneca and Sanofi-aventis Diagnostics company Alere Four SMEsmdashVichem Cellworks CDD and Tydock Twelve universities including Uppsala Pavia Cambridge Queen

Marys London Padova Comenius Piemonte Orientale the Basque Country Zaragoza ETH Zurich and Cape Town

Five research institutesmdashInstitute Pasteur in Paris Institut Pasteur of Lille the Bach Institute of Biochemistry the John Innes Centre and the Indian Academy of Sciences

And the Scientific management company SCIPROM (MM4TB 2011) MM4TB evolved from New Medicines for TB (MM4TB) a successful pro-ject which delivered a candidate drug for clinical development two years ahead of schedule Building on this MM4TB will continue the search for new drugs for successful and shorter treatment of TB (AstraZeneca 2011) Brennan urged ministers at the Asian Business Leaders conference in 2010 to work with the pharmaceutical industry to share the risks and costs in de-veloping effective antibiotics and other treatments He stressed the impor-tance of public sector bodies and NGOs teaming up with pharmaceutical groups to tackle the problem of antibiotic resistance Along with Novartis and Merck AstraZeneca is one of few companies that are investing in the area (Kollewe 2010) Development research will be done primarily in coun-tries with high rates of infection and AstraZeneca will collaborate with exter-nal partners with relevant skills and expertise While the company will apply for patent protection the organization seeks partnership arrangements with global and local organizations to make TB treatments widely available in the developing world through supply strategies that minimize cost of manufac-ture and delivery (AstraZeneca 2011) Partnership with Medicines for Malaria (MMV) In parallel AstraZeneca announced its partnership with Medicines for Malaria (MMV) in 2010 The agreement permitted MMV to access Astra-Zenecalsquos extensive compound library MMV will seek to identify promising compounds with the potential to treat malaria including drug resistant strains of the disease MMV has the objective to discover develop and de-liver new effective and affordable anti-malarial drugs with simpler dosing regimens thereby encouraging patient compliance and helping reduce the risk of resistance developing The ultimate goal is to find a one-dose cure for malaria (MMV 2010)

6

Under the terms of the agreement scientists working with MMV will screen 500000 compounds in AstraZenecalsquos unique library for activity against P falciparum the most lethal of malaria parasites Prof V Avery at the Eskitis Institute for Cell and Molecular Therapies at Griffith University in Brisbane Australia will conduct the screening on behalf of MMV Promising com-pounds identified through the screening process will be starting points for antimalarial drug discovery projects These compounds will be progressed through a discovery cascade at AstraZenecalsquos RampD facility in Bangalore India with the aim of identifying suitable candidates for clinical testing (MMV 2010) David Brennan AstraZenecalsquos CEO said ―hellipOpening up our compound library to MMV is an important step toward addressing the enormous unmet medical needs of the developing world AstraZeneca is committed to being part of the solution and we look forward to working with MMV and all those with a stake in global health (MMV 2010) Tim Wells MMVlsquos Chief Scientific Officer stated that ―hellipthe additional advantage is the Indian perspective India has millions of cases of malaria per year and in addition has a balance between Plasmodium falciparum and Plasmodium vivax Understanding and eliminating Indian malaria is one of the keys to eliminating malaria worldwide (MMV 2010) Opening up Proprietary Assets AstraZeneca recently agreed to join the World Intellectual Property Organizationlsquos (WIPO) WIPO ReSearch initiative in what is an unprece-dented collaboration between the private sector and public partners WIPO ReSearch will present to the public a searchable database of available IP as-sets and resources for use in neglected tropical disease (NTD) research The commitment includes the provision that IP licensed via WIPO ReSearch will be licensed on a royalty-free basis for research and development for ne-glected tropical diseases in any country It will also be licensed on a royalty-free basis for sales of neglected tropical disease medicines in or to least de-veloped countries AstraZeneca has committed to making its entire patent portfolio available for use in NTD RampD through WIPO ReSearch In addi-tion AstraZeneca will provide access to its high throughput screening tech-nologies compound collection and global laboratories AstraZeneca hopes to increase opportunities for scientists to work at it facilities around the world and encourage scientific mentoring and use of innovative technologies

by guest scientists researching treatments for NTDs (AstraZeneca 2011) Through a combination of open innovation and open source initiatives AstraZeneca shares the joint goal of speeding up the discovery and develop-ment of new potential treatments for NTDs Time will tell which strategies prove most effective in terms of both product development and product access (Figure 1) References 1 AstraZeneca and MMV join efforts in the fight against malaria MMV

June 2010 2 CPTR httpcptrinitiativeorg 2011 3 CPTR Yields Progress November 2011 4 Kollewe J AstraZeneca joins fight against tuberculosis

The Guardian March 2011 5 Leading pharmaceutical companies amp research institutions offer IP

and expertise for use in treating neglected tropical diseases AstraZeneca October 2011

6 MM4TB wwwmm4tborg 2011 7 Partnering is a Priority AstraZeneca 2011 8 Tackling TB AstraZeneca 2011 9 The Global Alliance for TB Drug Development (TB Alliance) and

AstraZeneca Announced that they have Entered into a Research Col-laboration Agreement to Accelerate the Discovery Development and Clinical Use of Drugs Against Tuberculosis (TB) AstraZeneca 2010

Figure 1 Open Innovation and Open Source Strategies for NTDs at AstraZeneca

AstraZeneca Global Open Source Strategy

WIPO ReSearch Alliance Sharing of Compounds

Technology Access to IP

AstraZeneca Malaria Open Innovation

Strategy Dedicated Research Facility

Bangalore India

AstraZeneca Global NTD Strategy

Guest Researcher Access to Global Facilities

Mentorship Opportunities for Research in NTDs

AstraZeneca TB Open Innovation Strategy Dedicated Research

Facility Bangalore India CPTR Alliance

7

8

Pfizerrsquos Open Innovation Strategy in Asia

Pfizer has been targeting Asian markets since the early 1950s and is one of the largest US-headquartered pharmaceutical companies in Asia One key issue is the disassociation between drug research and sales It has increas-ingly become apparent that the majority of RampD is conducted outside Asia while products are sold within target Asian markets The Asia Research Ac-celerator strategy was designed to address this concernmdashwith the goal of advancing drug discovery programs in Asia while complementing existing research efforts in North America and Europe (Pfizer Global Opportuni-ties 2010) Through this initiative Pfizer invests in Asia-based research efforts that may yield either new candidates for medicines or new pathways for technology development In 2010 Pfizer either launched or expanded collaborative ef-forts throughout the region with major Asia-based researchers such as WuXi AppTec Crown Bioscience Cumencor HD Biosciences and PharmaResources (Shanghai) Co as well as through academic partnerships with Fudan University Shanghai Jiao Tong University and Shanghai Institutes for Biological Sciences (Pfizer Global Opportunities 2010) This global network of industry and academic alliances is stimulating bio-medical advances into diseases that are more prevalent in Asia than in other parts of the world For example Pfizer currently has partnerships with the Korea Research Institute of Bioscience and Biotechnology and with the Asian Cancer Research Group (an independent not-for-profit company es-tablished by Pfizer Eli Lilly and Merck) to investigate treatments and to un-derstand certain types of gastric liver head and neck cancers that have higher prevalence rates in Asia than in places such as North America and Western Europe Here we see capacity development in emerging markets with the objective to address the health concerns of the Asian patient (Pfizer Global Opportunities 2010) An Open Source Strategy for New Drug Discovery In 2010 Eli Lilly and Company Merck and Pfizer Inc formed the Asian Cancer Research Group Inc (ACRG) an independent not-for-profit com-pany The ACRGlsquos formation represents a prime example of a growing trend in pre-competitive collaboration in which large pharmaceutical compa-nies combine their resources and expertise to rapidly increase knowledge of disease and disease processes The goal of the ACRG is to improve the knowledge of cancers prevalent in Asia and to accelerate drug discovery ef-forts by freely sharing the resulting data with the scientific community Initially the ACRG will focus on lung and gastric cancers two of the most common forms of cancer in Asia As many as 40 percent of patients with lung cancer in Asia demonstrate a mutation that is relatively rare in Western patients (EGFR mutation) This mutation has resulted in differences in re-sponse to some types of agents suggesting that a different research ap-proach is needed for developing treatments for certain patient populations Over the next two years Lilly Merck and Pfizer have committed to create one of the most extensive pharmacogenomic cancer databases known to date This database will be composed of data from approximately 2000 tis-sue samples from patients with lung and gastric cancer that will be made publicly available to researchers and over time further populated with clini-cal data from a longitudinal analysis of patients (Pfizer 2010) Ties to Academia In the past six years Pfizer RampD China has developed a large collaborative research network covering basic research institutes contract research or-ganizations and smaller biotech and pharmaceutical firms Pfizerlsquos China Research and Development Center a state-of-the-art facility that provides global drug development support capabilities research collaborations and strategic alliance opportunities to China and the Asian region is based in Shanghai It is the largest RampD center for a multinational pharmaceutical company in China The Center works alongside Chinese partners to develop the skills and talents of local scientists biostatisticians medical professionals pharmacists and others with expertise in life sciences The Center collabo-rates with leading academic researchers and top institutes in China including Peking University Tsinghua University Shanghai Jiaotong University and multiple institutes of the Chinese Academy of Sciences (Pfizer 2009) Pfizer signed a deal in July 2009 with the Shanghai Institute of Biological Sciences (Sibs) As part of this deal Pfizer will provide US$500000 each year for three years to fund early stage joint research in life sciences and new drug development between Sibs scientists and Pfizer scientists Scientists in basic research institutes learn drug development skills from industry collabo-

rators while Pfizer scientists learn from and gain access to ideas of the aca-demics Though the funding is small the joint research is supported by Pfizerlsquos global resources For example proposals are revised to become more feasible and workable The researchers also receive assistance on intel-lectual property managementmdashhence the attraction of the programme for Chinese life scientists (Jia 2010) ―Our choice of Shanghai Institutes for Biological Sciences as a research part-ner demonstrates our high regard for the scientific expertise and capabilities of SIBS said Martin Mackay President Pfizer Global Research and Devel-opment ―China is increasingly seen as a source for innovative healthcare research and we are proud of our ongoing investment in the outstanding science and people here Research projects will be selected and developed jointly by Pfizer and SIBS scientists (Pfizer 2009) In parallel Pfizer has made a significant commitment to South Korean re-searchers The company signed a memorandum of understanding with the countrys Ministry of Health and Welfare in 2007 agreeing to invest $300 million in RampD in the country At this time Pfizer formed a strategic re-search partnership with the Korea Research Institute of Bioscience and Biotechnology (Ray 2010) Pfizer and the Korea Research Institute for Bioscience and Biotechnology (KRIBB) expanded the earlier agreement in May of 2010 to jointly develop drugs for liver and gastric cancer and to in-vest a total of KRW 300 billion (U$240 million) from 2008 to 2012 (Moffat 2010) Continuing its focus on pharmacogenomics Pfizer also recently formed a research partnership with Samsung Medical Centre in Seoul for the analysis of Korean liver cancer patients in order to generate gene expression profiles for the condition (Adams 2010) Choi Han-Yong president of Samsung Medical Centre said ―We are pleased to have an opportunity to work with the worldlsquos number one phar-maceutical company Pfizer to better understand cancer in Korean patients with the goal of being able to send a new message of hope for patients with liver cancer across the world especially in Asia (Adams 2010) Centers for Therapeutic Innovation (CTI) Pfizer recently announced the formation of a network of academic collabo-rators to accelerate the translation of basic science into biologics-based drugs According to Mikael Dolsten MD PhD president of Pfizer Worldwide Research amp Development the Centers represents a novel open innovation paradigm combining the competencies of top academic research institutions with Pfizerlsquos leading drug development capabilities and research technologies (Pfizer 2010) The Centers for Therapeutic Innovation (CTI) will initially focus on collaborations within the US Pfizer expects to expand into Europe and Asia in 2012 Each Center will be governed by a Joint Steering Committee (JSC) comprised of Pfizer and Academic Medical Cen-ter (AMC) representatives who will provide leadership and evaluate the suc-cess of each program through discovery and early stage clinical develop-ment Through this innovation model Pfizer will have the opportunity to broaden its pipeline with novel candidate drugs to treat diseasesmdashaddressing unmet medical need (Pfizer 2010) A key aspect of the Centers for Therapeutic Innovation is Pfizerlsquos commit-ment to establishing local Centers at each partner site The partnerships will follow a venture capital-funded biotechnology start-up model whereby Pfizer funds preclinical and clinical development programs and offers equi-table intellectual property and ownership rights as well as broad rights to publication When programs are successful and advance according to the terms determined by a joint steering committee Pfizer will grant milestone payments and royalties (Rockefeller University 2011) ―The concept is to make a transition away from the vertically integrated RampD model into smaller decentralized groups of a truly global nature says Pfizerlsquos Anthony Coyle who is heading up the program out of the com-panys Cambridge Massachusetts facilities (Ratner 2011) The CTI will provide the primary investigator (PI) with funding (postdoctoral support) technical support (dedicated Pfizer personnel with expertise in protein sciences and development) and infrastructure (laboratory space libraries robots) (Pfizer 2011) The incentives operating model and goals for participating primary investigators and Pfizer colleagues will be designed to support achieving a positive Proof-of-Mechanism study in humans (PoM) PoM studies are small investigator-led clinical trials that typically involve 10 to 30 human subjects and have defined mechanistic or therapeutic endpoints (Pfizer 2011)

9

Partnerships Reaching Down the Value Chain In 2008 WuXi PharmaTech signed a three year deal with Pfizer Under the new collaboration agreement WuXi PharmaTech in partnership with Pfizer will establish ADME assays to provide in vitro screening services on com-pounds WuXi PharmaTech synthesizes for Pfizer (WuXi 2008) WuXi PharmaTech and Pfizer have previously collaborated on synthetic chemistry parallel medicinal chemistry ADME and bioanalytical services ―This new agreement further strengthens our already productive relationship with Pfizer one of our largest customers for many years and it is the direct result of our research capability and firm commitment to quality and customer sat-isfaction according to Ge Li PhD chairman and CEO of WuXi PharmaTech (GEN News 2008) In 2009 Pfizer and Crown Bioscience Inc (Crown) announced a collabora-tion to research and develop novel therapeutics for Asian cancers Under the terms of this agreement Crown will receive an upfront payment and re-search funding as well as milestone payments based on the achievement of preclinical and clinical goals The companies will work together to discover and advance multiple candidates for clinical development The work will take place at Crownlsquos new research facility located in Taicang (near Shang-hai) China (Pfizer 2009) ―I am delighted to be collaborating with Pfizerlsquos exceptional oncology group says Alex Wu CEO of Crown ―I am also very happy that Pfizer is focusing on and dedicating resources to address a very important unmet medical need for the Asian populations This new collaboration extends an already very successful partnership between Crown and Pfizer and further demonstrates Crownlsquos commitment to becoming an outstanding cancer re-search company in Asia (Pfizer 2009) Reaching out to the bottom of the pyramid MicuRx Pharmaceuticals Inc a biopharmaceutical company (with its presence in San Francisco US and Shanghai China) dedicated to the development of antibiotics to treat drug-resistant bacteria and Cumencor Pharmaceuticals Inc recently announced that the companies have entered a collaboration with Pfizer (NYSE PFE) to discover novel therapeutic agents to treat multi-drug resistant tuberculosis (MDR-TB) Cumencor Pharmaceuticals is a China-based biotechnology company applying MicuRxlsquos proprietary technology platform to discover and develop novel antibiotics for MDR-TB (PR Newswire April 2010) Under the terms of the agreement Pfizer will provide an upfront payment funding for the discovery and preclinical development of novel antibiotics to treat MDR-TB and payments linked to the development and commerciali-zation (including royalty payments on sales) of any antibiotics developed through the collaboration All collaboration research will be conducted at the ZhangJiang High-Tech Park in Shanghai China (PR Newswire April 2010) ―MicuRxlsquos novel approach to developing antibiotics for the treatment of drug-resistant bacteria and their existing technology know-how and exper-tise provide the basis for this collaboration said Steve Yang PhD Vice President and Head of Pfizers Asia Research and Development organiza-tion ―We expect that any compounds resulting from the collaboration will complement our portfolio of anti-infective agents and build our global pres-ence in the emerging pharmaceutical markets of Asia and beyond (PR

Newswire April 2010) Building Intellectual Capital in Asia through Open Innovation Pfizerlsquos open innovation strategy in Asia has a strong capacity development focusmdashnamely the development of intellectual capacity in Asia Beginning with a focus on health issues directly affecting the Asian patient Pfizer is not only devoting its resources to such diseases but through the ACRG will widely share pharmacogenomic information pertaining to lung and gastric cancers Supporting this endeavour are collaborations with the Korea Research Institute for Bioscience and Biotechnology (KRIBB) and the Samsung Medical Centre in Seoul Through its association with the Shanghai Institute of Biological Sciences (Sibs) and the planned Centers of Therapeutic Innovation Pfizer hopes to fund early stage joint discovery and clinical research in life sciences and new drug development Scientists in ba-sic research institutes will learn drug development skills from industry col-laborators while Pfizer scientists learn from and gain access to ideas of the academics Training opportunities in the area of intellectual property man-agement have been equally attractive to scientists Knowledge sharing knowledge development and exchange should support a vibrant life sciences sector in emerging markets in Asiamdashwith the goals of addressing chronic and neglected diseases that are endemic to Asia (Figure 1) References 1 Adams B Pfizer form liver cancer research partnership in Korea InPharm

July 2010 2 Jia H Though the funding is small the joint research is supported by

Pfizerlsquos global resources Chemistry World October-December 2010 3 MicuRx Pharmaceuticals and Cumencor Pharmaceuticals Partner with Pfizer

to Discover and Develop Antibiotics for Drug-Resistant Tuberculosis in China PR Newswire April 2010

4 Moffat B Global pharma eyeing Korean acquisitions as nation becomes test-bed Private Equity Korea May 2010

5 Pfizer And Crown Bioscience Announce A Collaboration To Research And Develop New Treatments For Asian Cancers Pfizer 2009 Pfizer Announces Partnership With Shanghai Institutes For Biological Sci-ences For Drug Discovery Activities BusinessWire July 2009

6 Pfizer Employs WuXi PharmaTech for In Vitro ADME Services GEN News November 2008

7 Pfizer Global Opportunities Annual Review 2010 8 Pfizer Launches Global Centers for Therapeutic Innovation a Network of

Research Partnerships With University of California San Francisco Pfizer November 2010

9 Publicly Available Genomic Database of Profiled Tumor Samples to Provide a Resource for Biomedical Researchers Worldwide Lillycom February 2010

10 Ratner M 2011 Pfizer reaches out to academiamdashagain Nature Biotechnol-ogy 29 3-4

11 Ray T PfizerSamsung Collaboration to Focus on PGx Strategies to Per-sonalize Liver Cancer Treatments in Korea Pharmacogenomics Reporter July 2010

12 Rockefeller joins Pfizerlsquos Global Centers For Therapeutic Innovation The Rockefeller University April 2011

13 WuXi PharmaTech Signs New Collaboration Agreement With Pfizer WuXi AppTec November 2008

14 wwwpfizercom 2011

Figure 1 A Broad Asian Open Innovation Strategy at Pfizer

Pfizerrsquos Open Source Strategy

Asian Cancer Research Group Inc (ACRG)

Reaching Down the Value Chain Alliance with WuXi

PharmaTech Alliance with Crown

Biosciences Alliance with MicuRx Pharmaceuticals

and Cumencor Pharmaceuticals

Ties to AcademiamdashIntellectual Capital Development

China Research and Development Center

Sibs Alliance KRIBB Alliance

Samsung Medical Centre Alliance CTI

10

11

A Networked Open Innovation Strategy The SpringFire Laboratory Network Technological complexities and market pressures have increased the degree to which companies are outsourcing to highly specialized technology driven companies However conventional outsourcing on a project-by-project ba-sis is strategically insufficient in this era A new type of structure-the virtual or networked outsourcing company provides access to customized solutions and is focused on long-term strategic partnering The formation of this new networked outsourcing company structure is driven by the need to access a broad range of expertise and the shift from narrowly focused specialized outsourcing companies to ―all inclusive outsourcing companies The virtual company is much more agile responsive to paradigm shifts and regulatory changes Accessible expertise can cover drug discovery from the earliest stage of lead compound identification and development through preclinical clinical phases manufacturing global registration post-marketing and line-extension studies The virtual outsourcing company enables access to a multidisciplinary team where the appropriate skill sets and expertise can be available at each stage of the biopharmaceutical value chain Appropriate teams are quickly assem-bled to manage issues as they arise In contrast large vertically integrated outsourcing companies can face many of the same problems associated with the fully integrated biopharmaceutical company including integration coor-dination and communication problems For each team the most suitable individuals from the most appropriate outsourcing firms within the network are selected on the basis of skills experience and fit with the project or product goals client and other individuals on the team Virtual outsourcing companies manage the various contracts budgets and relationships for their clients Lower project risk exists as dependency on a single supplier relation-ship is removed A virtual company must add value and not act simply as an intermediary be-tween contractors and large companies To operate successfully within the virtual environment requires strong industrial and academic networks effec-tive project management skills highly developed intellectual property man-agement skills and the ability to bring together partners to enable drug devel-opment Teams of experienced suppliers and experts are tailored to fulfill project or product requirements and are led by a dedicated senior project manager to ensure knowledge coordination and integration Forming the right partnerships and teams as well as managing operational processes in-crease the effectiveness of RampD outsourcing and ensure that the associated cost time and risk-sharing benefits are enjoyed by the Sponsor Models at Work The SpringFire Laboratory Network SpringFire Laboratory Network is a firm with the goal to match pharmaceu-tical medical device and biotech companies with clinical laboratories to pro-vide clinical trial testing solutions SpringFire Laboratory Network is unique in representing a network of independent non-competing high complexity laboratories collectively providing testing offerings to the clinical trial mar-ketplace The founders discovered that there was a strong desire by Sponsors and CROs to have choices in laboratories other than large laboratory companies with rigid requirements and little flexibility or educational institutions that were expensive and less responsive to external clients However there was little incentive for independent laboratories to pursue clinical trials testing given the large upfront costs to start a business development effort and the significantly different and lengthy sales cycle in clinical trials In an attempt to bridge the gap between the strong need for laboratory choices and the reluctance of independent laboratories to shoulder the bur-dens of clinical trials initiatives SpringFire Laboratory Network was estab-lished The network includes hand-selected independent laboratories to pro-vide testing services to clinical trial Sponsors and CROs The SpringFire team provides business development services for the network laboratories as well as expert knowledge around project management and clinical trial-specific operations The laboratories are non-competing and as such they share costs and best practices with one another without competing for the work ―The clinical trial marketplace has a need for esoteric laboratories to respond to its ever-expanding requests states Jim McClintic Managing Partner of SpringFire Laboratory Network

Selecting and Matching Network Participants SpringFire Laboratory Network is committed to a successful outcome for each drug or device development project The network of laboratories is made up of hand-selected ―Centers of Excellence The affiliated laborato-ries provide solutions in sub-specialized anatomical pathology and highly specialized clinical diagnostic testing along with state of the science micro-array testing SpringFirelsquos core team works with all affiliated laboratories to ensure their internal operations meet or exceed the unique regulatory and data manage-ment needs of clinical trials Each laboratory has demonstrated their abilities to provide customized quality results for clinical investigations on an inter-national basis The SpringFire affiliated laboratories are highly regarded in their specialized areas of testing expertise Each affiliate laboratory is evalu-ated to determine their fitness for work in the clinical trials arena A variety of characteristics are considered during a 2-day on site assessment including

Past clinical trial experience Quality laboratory processes Scientific and medical leadership Platform and technology maturity Project management Storage space options Data management capabilities Commitment to providing quality testing to clinical trials Sponsors

or CROs Since most of the laboratories are non-competing the matching process is usually based on the services requested and which lab provides those ser-vices In the event that more than one laboratory provides the requested tests or services SpringFire works with the laboratory that provides the most comprehensive set of tests or services In the event that no single lab performs all of the testing SpringFire will facilitate for two or more of the network laboratories to work together on a study Current Members of the Network SpringFire Laboratory Networklsquos current member laboratories are based in North America The Network provides testing services for both domestic and international study sites and is open to working with laboratories and sponsors around the globe Current members include

With a combined menu of more than 1000 specialty tests SpringFire offers Sponsors and CROs expertise and testing services in numerous therapeutic areas including anatomical pathology coagulation advanced lipids molecu-lar genetics and womenlsquos health The SpringFire network of laboratories col-lectively represent over 90 years of experience in the clinical marketplace while successfully completing more than 250 clinical trials Governance of the Network The SpringFire team is much more than business development The team works closely with each laboratory before during and after the study From the start the team works with each laboratory to build a competitive and timely proposal With the awarding of a contract the SpringFire team re-views and assists with negotiations and contract development During the study start-up phase the team facilitates on-going communications and lo-gistics to ensure the effective completion of tasks including routinely follow-ing up with both the laboratory and Sponsor or CRO to ensure good com-munication and suitable quality laboratory services When the study is con-cluded all parties are provided with a summary and an opportunity to share their experiences thoughts and ideas on the study and the laboratory ser-vices (Figure 1)

Laboratory Specialization

D-Path Dermatopathology

GI Pathology Gastrointestinal and liver pathology

ITxM Diagnostics Coagulation testing

Atherotech Diagnostics Advanced lipids

Baylor College of Medicinersquos Molecular Genetics Laboratories

Pharmacogenomics cytogenetics and medical genetic diagnostics

Baylor College of Medicinersquos Cancer Genetics Laboratory

Cancer-related genetics testing

12

Figure 1 Interactions in the SpringFire Laboratory Network Knowledge management is vital both to the effective working of the project team but also to the efficient transfer of information to and from the Sponsor as well as to external audiences such as site investigators regulatory authorities and potential licensees Outsourcing multiple stages of the drug product life cycle is critical for those companies that require access to expertise and technology in a rapidly chang-ing paradigm without the risk and cost associated with internal development Both young and small biotechnology companies and large traditional phar-maceutical companies can benefit from the model of drug discovery and development offered by organizations such as the SpringFire Laboratory Network

SPRINGFIRE

CORE TEAMPartner Selection

Best Practice Sharing

Baylor College of

Medicines

Cancer Genetics

Laboratory

GI Pathology

D-Path

ITxM Diagnostics

Baylor College of

Medicines

Molecular Genetics

Laboratories

Atherotech

Diagnostics

SPONSORCRO

PARTNER

MATCHING

GOVERNANCE

LESSON

KNOWLEDGE

TRANSFER

UPCOMING BIO PARTNERSHIPS ASIA 2012 CALENDAR

EDITORIAL

TRENDS AND ANALYSIS Articles that run 1500-2000 words and explore trends across the value chain describe opportunities in emerging Asian markets outline policy changes enabling partnerships in these markets and discuss the management of such partnerships

CASE STUDIES Company case studies that run 500-1000 words and explore partnerships across the drug discovery and development value chain

Submit text and electronic images with a resolution of 300 dpi or better We cannot guarantee placement in a particular issue The staff may schedule an entry to coincide with a certain issues editorial theme

COMPANY PROFILES Service provider profiles Send the following information Company name

contact information description services offered markets served and partnerships sought Also send a company logo

TECHNOLOGY PROFILES Technology licensing opportunities Send the following information Technology background areas of application competitive advantages stage of development intellectual property status partnerships sought and contact

information Please forward an image if applicable

NEWS RELEASES Updates on deals partnerships opportunities Send a press release and a company logo

MONTH FEATURE STORIES TRENDS AND ANALYSIS

CASE STUDIES

February 2012 New Models of Open Innovation in Asia

Business Model Analysis

Company Profiles

May 2012 Cluster Formation and Participation in Asia

Case Analysis Cluster Profiles

August 2012 Partnerships and Biopharmaceutical Capacity

Development in Asia

Case Analysis Company Profiles

November 2012 Transferring the Lessons from Asia to the Bottom of

the Pyramid

Lessons from India China Singapore

Middle East

Company Profiles

13

14

15

Convergence Innovation Development at the Intersection of Disciplines Organizations and Products Convergence Innovation is the paradigm where discovery and technology creation occur at the intersection of multiple disciplines and organizations Specifically convergence between the chemical biological cognitive physi-cal and information sciences is evident Firms and researchers will cross the boundaries between these disciplines to create technological value--finding solutions to address health environmental and energy challenges In parallel will be emergence of new models of collaboration to enable knowledge crea-tion and knowledge dissemination Central to Convergence Innovation will be a determination of the common value of knowledge versus the private value of knowledge across the associated disciplinesmdashwith the goal of ad-vancing and commercializing technology Levels of Convergence Convergence can be considered at three levelsmdashnamely convergence in the sources of knowledge for research convergence in organizational forms to enable technology development and convergence at the product level with the embodiment of knowledge in complementary products For example while nanotechnology research has been shown to have a dominant focus on material sciences additional analysis has demonstrated that nano-based research increasingly draws its knowledge from other areas (Porter and Youtie 2009) Specifically Porter and Youtie (2009) reveal that while nano-based publications center on materials science (including chemistry and physics) nano-based research also significantly involves many other fields including biomedical sciences computer sciences and mathematical sci-ences environmental sciences and engineering Citation patterns further show extensive referencing across macro-disciplinesmdashwith a preponderance of references in nano-related articles to research outside the macro-discipline in which the article is published (Porter and Youtie 2009) Conse-quently at this level of convergence the sharing and absorption of research across the involved disciplines will be necessary for downstream value crea-tion (Figure 1) Figure 1 Convergence at the Disciplinary (Knowledge Sources) Level At the next level of convergencemdashthe organizational levelmdashthe interaction between technological convergence and models of open innovation is be-coming apparent Licensing mergers acquisitions and strategic alliances such as joint ventures as well as new structures such as innovation networks and open innovation communities represent alternative strategies that may be used to acquire or access the necessary knowledge or assets for discovery and development From a convergence perspective the opportunity exists for a (public or private) stakeholder to not only interact with other (public andor private sector) stakeholders through simple one-to-one traditional collaborations but with many stakeholders through more complex mecha-nisms such as consortia crowdsourcing and other such open innovation communities For example the need for shared scientific expertise and large scale infrastructure in both nanotechnology and biotechnology is thought to be responsible for the development of networks spanning both fields (Figure 2) The pervasiveness of enabling technologies such as information and communications technology (ICT) have encouraged innovation net-works to increase in dominance and have lead to the blurring of organiza-tional boundaries among research organizations (Powell Koput and Smith-Doerr 1996 Roijakkers and Hagedoorn 2006) In such collaborations the opportunity to assume multiple roles exists to enable RampD including the collaborator who shares knowledge with one or many partners for the pur-poses of discovery or development the incubator who provides funding or expertise to other stakeholders to support venture development the enabler

who provides access to tools equipment large scale infrastructure or other services to support product development and the orchestrator who manages the network of partners with either the objective of knowledge creation or knowledge application (Melese Lin Chang and Cohen 2009) At this level of convergence there is the critical need to closely examine the management processes associated with collaboration as the collaborative strategies have not only grown in relevance but also in terms of impact and the number of participants involved

Collaboration Model

Access

Simple (One to One) Complex (Many to Many)

Collaboration Complexity

Figure 2 Convergence at the Organizational Level Open Access=Participation Open Closed Access=Exclusive Partnership

Simple=One to One Link between Partners Complex=Many Links between Several Partners PPP=Public Private Partnership JV=Joint Venture

The location in the above grid determines the extent to which the collabora-tion is open or closed and between one few or many partners

Finally the outcomes from any collaborative interaction will increasingly lead to convergence at the product level In this case multiple components or products will be packaged together to enhance the value over individual product offerings (Figure 3) Such bundled products will have the goal of simultaneously meeting several technological needs be it for biomedical treatment as seen in the use of nano-based diagnostics paired with therapeutics in agriculture or environmental applications as seen in the use of sensors to measure pathogens in food and the environment or the use of nanospheres to selectively detect harmful materials in water and then used for detoxification and in the creation of novel energy technologies as seen in the use of catalysts in particles for biodiesel synthesis to name a few (Schmidt 2007) At the product level effective intellectual property man-agement strategies and coordination between regulatory agencies will be paramount

Figure 3 Convergence at the Product Level

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

COGNITIVE

PPP JV

MampA

Consortium Innovation Network

Crowdsourcing Open Source Network

Licensing

Proprietary Open Innovation Community

Closed

Open

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

Nanomaterials

Nanodevices

Nanoelectronics

Nanosensors

Bioinformatics

Biosensors

Tissue Engineering

Drug Delivery

Diagnostics

Drug Delivery

Chemical Catalysis

Nanofiltration

Chemical Sensors

Neuron Network

Prostheses GenerationCOGNITIVE

16

The Impact of Convergence At each level of convergence there are several complexities that either im-pact the management of stakeholder interaction or the management of the knowledge based assets generated through such interactions For example given the expected intersection between disciplines knowledge complexities including varied types (such as biological information and biological struc-tures chemical knowledge and structures physical knowledge and struc-tures) and forms of knowledge (disembodied and embodied) will drive the need for a common platform for knowledge integration validation and standardization Beyond integration of knowledge it is expected that teams of biological chemical and physical scientists will increasingly form to de-velop and bridge together the necessary tools and equipment for RampD ac-tivities (Ideker Galitski and Hood 2001 Kitano 2001 Kautt Walsh and Bittner 2007 Boardman 2008 Boardman and Ponomarioy 2009) We must also consider the impact of convergence on the downstream rights to de-velop products Lemley (2005) discusses that unlike other industries in which patentees are actual or potential participants in the downstream mar-ket a significant number of corporate patentees will increasingly own rights not just in the industry in which they participate but other industries as well Analysts fear that over-patenting alongside the large shadow of such patents could not only fragment technology but could discourage stakeholders in a number of industries from attempting to develop products incorporating infringing technologies (Lemley 2005) It is important to consider that as multiple disciplines increasingly working together each discipline will have its own priorities and conventions regarding knowledge dissemination and knowledge appropriation (Hilgartner 1996) One discipline may signal its success during knowledge generation through the enclosure and the sale of disembodied knowledge Another discipline may measure its success exclu-sively by the embodiment of knowledge in medical products (Hilgartner 1996) While patent pools are a suggested solution to the possible patent holdups (DlsquoSilva 2009) it has been proposed that as has occurred in the genomics arena innovation-based networks with rules regulating the devel-opment and appropriation of critical technology building blocks could not only circumvent the product development and legal problems of the past but will also bring together the requisite intellectual and physical capital (DlsquoSilva 2009 Allarakhia and Walsh 2010) A Template for Managing Interactions and Knowledge-Based Assets Governance strategies must seek to align the incentives for participation in collaborative activities for multiple stakeholders The use of rules to define actions communication mechanisms used to enable and monitor actions and to share the outcomes are all critical to ensure that goals are achieved Structure and Roles It is expected that the chosen collaboration modemdashone to one one to many or many to many collaboration and objectives set for the collaborationmdashpooling of assets generation of new assets andor pol-icy creation will impact the type of participants that will join The organiza-tional structure chosen will be determined in part by the attributes of the resources to be contributed or developedmdashinformation supporting tools technology as well as the location of participantsmdashwith linkages established through physical clustering or virtual networking Thereafter the organiza-tion of participants may be a function of technological expertise geographic location or project-based management expertise Resource Types and Outcomes Participants will contribute several inputs including funding equipment and human capital The resulting outcomes include data materials tools and technology Facilities store artifacts in or-der to make them accessible Traditional facilities have been libraries and archives containing books journals and papers New technologies have made electronic distributed information possible Artifacts are discreet ob-servable nameable representations of ideas such as articles research notes books databases maps computer files and web pages (Foray 2004 Hess and Ostrom 2006) In the context of nanotechnology databases material and model repositories accessible laboratories that aggregate equipment and tools for nanotechnology development are varied options to manage the outputs Hence any outcomes analysis should seek to determine the success of collaboration including the amount of data produced and accessed the material generated housed and accessed the tools created and used and the technology produced by participants Governance Internal rules or mechanisms used to promote cooperative be-haviour can include formalizing the requirements to join the initiative en-suring frequent interactions encouraging communication between partici-pants monitoring and punishing defection and setting the boundary for access to resources An authority that regulates access to resources can en-sure that a fair and efficient governance strategy is used (Ostrom Gardner and Walker 1994) While access generally refers to disembodied assets such

as data extraction can involve the removal andor use of physical materials models and tools Knowledge use and access can be governed by the fol-lowing rules sharing with partners only (closed access) sharing with part-ners and the public at large (open access) and intellectual property assign-ment potentially on information materials tools and technology with the specification of rights to use based on licensee type geography or target market for product launch Creating Value The Path Forward in The path forward will require the creation of supporting policies encourag-ing multi-disciplinary collaboration At a national level several governments have recognized the importance of innovation networks to develop capacity and compete on an international level Consequently policies are now pro-viding more RampD funding and incentives encouraging the formation of multi-sectoral networks (Corley Boardman and Bozeman 2006) New prod-ucts of convergent technologies will necessitate cooperation among regula-tory bodies with the coordination of information flow coordination of du-ties and increased harmonization between international regulatory bodies (Castle et al 2006 Drezek and Tour 2010) To avoid the mistakes of the past policies outlining guidelines for the management of intellectual prop-erty rights can ensure that stakeholders will correctly assess the common value of knowledge versus the private value of knowledgemdashresulting in the transition from open knowledge to appropriated knowledge with the objec-tive of pursuing (unilateral or collaborative) downstream product develop-ment References 1) Allarakhia M amp Walsh S Managing knowledge assets under conditions of radical change The case of the pharmaceutical industry Technovation 31 105-117 (2011) 2) Boardman P Beyond the stars The impact of affiliation with university biotechnology centers on the industrial involvement of university scientists Technovation 28 291-297 (2008) 3) Boardman Pamp Ponomarioy B University researchers working with pri-vate companies Technovation 29 142-153 (2009) 4) Castle D Loeppky R Saner M Cline C Dalgleish J amp Wojnik V Convergence in Biotechnology Innovation Case Studies and Implications for Regulation (University of Guelph Guelph 2006) 5) Corley EA Boardman PC amp Bozeman B Design and the manage-ment of multi-institutional research collaborations Theoretical implications from two case studies Research Policy 35 975-993 (2006) 6) Drezek RA amp Tour JM Is Nanotechnology Too Broad to Practice Nature Nanotechnology 5 168-169 (2010) 7) DlsquoSilva J Pools thickets and open source nanotechnology European Intellectual Property Review 31 300-306 (2009) 8) Foray D The Economics of Knowledge (MIT Press Cambridge 2004) 9) Hess C amp Ostrom E Understanding Knowledge as a Commons From Theory to Practice (MIT Press Cambridge 2006) 10) Ideker TT Galitski L amp Hood LE A new approach to decoding life Systems biology Annual Review Genomics and Human Genetics 2 343-372 (2001) 11) Kautt M Walsh S amp Bittner K Global distribution of microndashnano technology and fabrication centers A portfolio analysis approach Technol-ogy Forecasting and Social Change 74 1697-1717 (2007) 12) Kitano H Systems biology Toward systems-level understanding of bio-logical systems Foundation of Systems Biology 1-29 (MIT Press Cam-bridge 2001) 13) Lemley MA Patenting nanotechnology Stanford Law Review 58 601-630 (2005) 14) Melese T Lin SM Chang JL amp Cohen NH Open innovation net-works between academia and industry an imperative for breakthrough therapies Nature Medicine 15 502-507 (2009) 15) Ostrom E Gardner R amp Walker J Rules Games and Common-Pool Resources (The University of Michigan Press Ann Arbor 1994) 16) Porter AL amp Youtie J How interdisciplinary is nanotechnology Jour-nal of Nanoparticle Research 11 1023-1041 (2009) 17) Powell WW Koput KK amp Smith-Doerr L Inter-organizational col-laboration and the locus of innovation Network of learning in biotechnol-ogy Administrative Science Quarterly 41 116-145 (1996) 18) Roijakkers N amp Hagedoorn Inter-firm RampD partnering in pharmaceu-tical biotechnology since 1975 Trends patterns and networks J Research

Policy 35 431minus446 (2006) 19) Schmidt K Project on Emerging Nanotechnologies (2007)

17

18

Beyond Cost-Savings Hidden Considerations for Conducting Clinical Trials in Asia

By Jessica Liu General Manager ChinaNorth Asia INC Research and Garth Tierney Regional General Manager Australia and South East Asia INC Research

Abstract Pharmaceutical industry sponsors are well-aware of the cost bene-fits of conducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the pri-mary criteria by which sponsors should select the Asian regions in which they will conduct their clinical trials Other important considerations include disease incidence treatment standards minimizing variability maximizing protocol adherence regulatory factors politics cultural considerations and ethical concerns While global spending on medicines is expected to grow three percent to five percent over the next five years spending in the ―pharmerging markets is expected to double1 The desire to access this fast-growing consumer base is the primary reason large pharmaceutical companies are increasing their clinical presence in emerging countries like China according to a report from investment bank-ing firm William Blair2 But small to midsize drug makers are also moving into emerging markets driven primarily by cost differentials China can offer as much as a 50 percent cost advantage compared to the United States or Europe as can Thailand the Philippines or Malaysia Most countries in Asia are at least 20 percent to 30 percent more cost-efficient than their western counterparts although there are notable exceptions such as South Korea and Japan Pharmaceutical industry sponsors are well-aware of the cost benefits of con-ducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the primary criteria by which sponsors should select the Asian regions in which they will con-duct their clinical trials Other important considerations for conducting a trial in Asia include disease incidence and treatment standards the potential to minimize variability and maximize protocol adherence regulatory and political factors and cultural and ethical considerations Disease Incidence and Treatment Standards With more than four billion people Asia offers sponsors a deep pool from which to draw clinical trial participants Indeed for sponsors conducting late-stage clinical trials in indications such as diabetes or cardiovascular dis-ease which can require thousands of patients establishing Asian trial sites to tap into that pool is critical The key is determining which Asian countries will best match each triallsquos unique patient requirements For sponsors most concerned with enrolling large numbers of patients into a trial highly populous countries such as India China Indonesia Japan the Philippines Thailand and Malaysia may be the best fit A recent CRO survey revealed that China is the leader in patient recruitment for the Asia-Pacific region followed by India and South Korea3 However sponsors need to be aware that the region is still expanding and a vast population does not equate to vast number of ICH GCP trained sites in the larger countries of China and India This can be a limiting factor in gaining access to the best sites for certain indications If on the other hand a sponsor is conducting a Phase I trial they should know that certain Asian countries have specific regulatory requirements for approval of a clinical trial application (CTA) that can add complexity to the process Others like Australia specialize in Phase I studies thanks to their fast and straightforward approval processes high-quality clinical practices and variety of many academic and commercial clinical trials centers4 Selecting an appropriate region for trial sites also depends on the incidence of the target disease in each countrylsquos population Highly-developed Asian countries have a higher incidence of diseases common in the West such as diabetes and cardiovascular disease while diseases such as tuberculosis are more common in Southeast Asia Some countries like India have diverse patient populations afflicted with diseases of both the developing and devel-oped world

When it comes to standards of care certain diseases like breast cancer lung cancer and diabetes are treated in much the same way in Asia as they would be treated in the Western world But for many other indications medical practice standards differ both from East to West and between the different Asian regions Sponsors seeking to meet specific market regulatory approval will need to mirror Western standards-of-care and as such should consider focusing trial sites to Australia New Zealand Singapore Taiwan Hong Kong and South Korea But differing standards of care can also provide unique opportunities Asia offers relatively more patients for first-line and second-line cancer drug evaluation than the West where such patient stores have been largely exhausted Risk Mitigation Sponsors should be prepared that some Asian trial sites ndash even those that have adapted Western-style medical practices ndash may require more assistance when it comes to following protocol and differentiating between medical practice and clinical research Not all Asian sites will have the infrastructure for a clinical trial A good CRO partner will work with a sponsor and site investigators to identify any infrastructure gap ndash such as a dedicated com-puter fax or freezer ndash and develop plans to ensure sites have the essentials to deliver a study efficiently Data integrity is another area that sponsors and CROs need to focus atten-tion It is critical to reduce variability by ensuring all monitoring and site staff are well trained Monitors need to understand how to identify and pro-actively resolve issues early on to minimize long-term issues with patient recruitment and data collection They should understand how to recognize early warning signals and not overreact to red herrings Investigators and site monitors also need to be trained in adverse event reporting to ensure that they meet local regional and global clinical trial safety reporting Sponsors must ensure monitoring visits are being conducted regularly as such visits make it more likely that recruitment and data integrity issues will be detected early and managed in a timely and effective manner Equally im-portant site staff needs to be as consistent as possible Finally sponsors need to implement a proven system for data reporting as variability in the data collection process may decrease the evaluable patient pool in the trial decreasing the sponsorlsquos chances to establish statistical sig-nificance or detect a rare safety signal Regulatory and Political Factors While regulatory bodies in South Korea and Taiwan as well as in Singapore have adopted an FDA-based approach each Asian country has its own regulatory idiosyncrasies In China for example reviews take on a project-based nature and sponsors should never assume that what worked in one application will be directly applicable to another No matter how harmo-nized Asia may appear the cookie-cutter approach simply doesnlsquot work However the fact that regulatory policies are still evolving in certain Asian countries provides a unique opportunity to sponsors the opportunity to in-fluence those policies There are no formal guidances or rules covering this topic but it is a real opportunity The recent economic downturn has prompted finance ministers in many countries to more closely analyze the cost of healthcare and they are realizing that good drugs can decrease their overall costs To ensure new drugs are available in their countries they have become increasingly eager to support clinical trials and they are engaging in conversations with sponsors about how approval pathways might be con-structed that take healthcare economics into consideration For example if a sponsor works closely with regulatory agencies to design the right preclinical and Phase I trials could a single Phase IIIII trial be sufficient for approval in some indications Are so many repetitive studies really necessary Is the requirement or guidance relevant to the current technology If a sponsor can prove to the government that a certain disease is currently costing 50 cents per person per day to treat and a new drug would change treatment paradigms and reduce that cost to a penny that is a compelling argument Not compelling enough to compromise safety or effi-cacy but compelling enough to expedite things along by partnering to agree upon the most appropriate pathway to approval While some regulatory agencies may not be as comfortable with the idea of allowing more flexibility and customization in the clinical trial design many are open to reducing bu-reaucracy and the associated time delays for CTA approval ndash particularly when there is potential to significantly impact health economics Govern-ments may provide commercialization support including funding to enable

19

development of new technologies and testing methods There may also be a higher priority given to certain CTA applications in the review queue Australia and Singapore have adopted a more simplified regulatory process and offer a notification scheme rather than formal review by the regulator South Korea and Taiwan are working to ease regulations and facilitate pro-tocol reviews Countries such as China have lengthy regulatory approval processes however there are some early indications that this may be de-creasing India is currently experiencing slower regulatory paths Interest-ingly some Asia Pacific countries that have historically been considered ―easy targets for clinical trials are increasing their regulations While there is much potential to collaborate with regulatory bodies in Asia these are not the only government agencies with which a sponsor must work Each country has its own policies on insurance regulations import licenses and other factors that affect a sponsorlsquos ability to establish and run clinical trial sites Each should be reviewed before selecting countries in which to establish trial sites Cultural and Ethical Considerations Language barriers can be easily overcome by CRO partners with offices across Asia and they are the least of a sponsorlsquos worries when it comes to cultural differences More pressing are issues such as the fact that some Asian researchers may believe that their participation in a trial gives them the right to publish data on their findings while sponsors require at least some degree of control over the publication of trial data Such issues are best managed by thorough communication prior to the start of enrolment In certain countries cultural factors may positively impact a trial Ethical factors may also weigh on a sponsorlsquos decision to conduct trials in certain Asian countries There are certain diseases that present a serious unmet medical need specifically within Asian populations such as foot-and-mouth disease and such indications obviously lend themselves to Asian clinical tri-als Yet if a sponsor has no plans to launch a drug in certain Asian countries perhaps because the populations of those countries would not be able to afford the drug then conducting clinical research in those countries may present ethical challenges For the most part however sponsors are eager to launch their drugs into the rapidly growing Asian healthcare markets and Asian clinical trials are necessary to support this endeavour As mentioned initially the cost advan-tages of conducting clinical trials in Asia cannot be ignored as both large and small companies face pressures on their bottom lines But while costs are important they are not the only consideration About the Authors Jessica Liu MD is the general manager for Clinical Operations in China and North Asia at INC Research She previously managed international pro-jects out of the European headquarters office for a global CRO in Brussels Belgium Prior to that she worked for 15 years in the Chinese affiliates of several global pharmaceutical companies overseeing clinical operations pro-ject management and medical affairs She conducted and managed Phase I-IV clinical studies across multiple therapeutic areas Dr Liu started her ca-reer as a resident physician in the endocrinology Department of the Peking Union Medical College Hospital (PUMCH) in Beijing China She received her Medical Doctorate from the University of Beijing (China) and has a Di-ploma in Pharmaceutical Medicine from the University of Basel (Switzerland) Dr Liu is based in Beijing She can be reached at jialiuincresearchcom Garth Tierney is the regional general manager for Australia and South East Asia for INC Research Garth previously founded and managed Trident Clinical Research a CRO based throughout Australia New Zealand and In-dia After 14 years of operation Trident was acquired by INC Research in June 2011 Prior to founding and managing Trident Clinical Research Garth worked for 8 years in the clinical research industry in various senior manage-ment and operational management roles across several companies including a global CRO an Australian pharmaceutical company and two global phar-maceutical companies Garth has a pharmacology (University of NSW) and business administration (University of Adelaide) background and worked in hypertension research for several years before joining the pharmaceutical industry During this time Garth published various papers and won the Whelan prize (awarded by ASCEPT) He can be reached at gtierneyincresearchcom

References 1 IMS IMS Institute Forecasts Global Spending on Medicines to Reach

Nearly $11 Trillion by 2015 May 18 2011 2 Wm Blair Pharmaceutical Outsourcing Industry Analysis Jun 10

2010 3 CyberMedia Research-BioSpectrum Asia-Pacific CRO Survey 2011 4 Clinical Trials Action Group Report Commonwealth of Australia

2011 CPTR Yields Progress New Six-Way Agreement has Goal to Speed Development of TB Drug Combinations November 11 2011 The Critical Path to TB Drug Regimens (CPTR) announced this November an innovative agreement between AstraZeneca Bayer Sanofi Tibotec TB Alliance and the World Health Organization to share information on tuber-culosis (TB) compounds within their respective drug pipelines to quickly identify and work together to develop the most promising TB drug regimen regardless of sponsor The partnership facilitates a more collaborative ap-proach to TB drug development with the objective to dramatically speed the development of shorter safer and more effective multi-drug treatments that are urgently needed to control the global TB pandemic The agreement will enable information-sharing around scientific and clinical data on TB compounds in clinical development By sharing data partners can identify opportunities to test their compounds in combination speeding availability of future TB regimens The collaboration includes the majority of global sponsors with TB drugs in clinical development Under the agree-ment if two or more organizations choose to work together to further de-velop a regimen they will enter into a separate arrangement that defines the rights and responsibilities of each party CPTR is working closely with regulatory scientists at the US Food and Drug Administration European Medicines Agency and other regulatory bodies in China India and some countries in Africa to develop the tools that are needed to allow testing of new TB drugs in combination cutting years off the development timeline Under the leadership of the Critical Path Institute CPTRlsquos Regulatory Science Consortium focuses on establishing consensus on preferred standards methods and tools for developing new TB drug regimens and obtaining official acceptance from international regulatory authorities Source TB Alliance Pfizer Establishes the Cambridge Research Center September 01 2011 Pfizer Inc recently announced it has entered into a 10-year lease agreement with the Massachusetts Institute of Technology (MIT) for more than 180000 square feet in a new building under development in Cambridge Massachusetts Located at 610 Main Street South in Kendall Square the new site will be the future location of Pfizerlsquos Cardiovascular Metabolic and En-docrine Disease (CVMED) and Neuroscience Research Units The reloca-tion of the two Research Units will substantially boost Pfizerlsquos footprint in Cambridge making it the second largest biopharmaceutical company in Massachusetts in terms of jobs ―We were very deliberate in our choice to move to Cambridge MA as a key part of our RampD strategy By expanding our presence in one of the worldlsquos great centers of scientific and medical innovation we will provide the best environment for our researchers to invent the next generation of medicines in areas of greatest need such as Alzheimerlsquos disease schizophrenia diabe-tes and cardiovascular disease said Rod MacKenzie senior vice president and head of PharmaTherapeutics Research amp Development ―We intend to foster productive formal and informal collaborations between our drug dis-covery experts and the outstanding scientists of Cambridgelsquos world class institutions This is a very exciting period in Pfizer RampD Source Pfizer

20

21

Continued from page 19hellip UK Academia Given Access to Selected AstraZeneca Compounds December 11 2011 Following a unique landmark agreement between AstraZeneca and the UK Medical Research Council (MRC) a wide range of compounds will be made available to UK medical researchers next year In a new type of collabora-tion academia will be granted access to 22 clinical and preclinical com-pounds developed by AstraZeneca Though making individual compounds available to external academic investigators is not unusual the breadth and open-innovation nature of this collaboration is unique because it provides unprecedented access to well characterised clinical and preclinical candidate molecules to investigators across all UK academic institutions There is significant unmet need in diseases both within and outside Astra-Zenecalsquos current research focus This collaboration builds on the sizable in-vestment made in developing candidate drugs within AstraZeneca by help-ing researchers to explore their potential more broadly with the hope that they will find new future medicines It also helps AstraZeneca explore areas of unmet patient need beyond its current disease area focus leveraging great external science in a way that is highly flexible and cost effective The New Opportunities Innovative Medicines Unit (iMed) in AstraZeneca has been central in establishing this research collaboration with the MRC and has acted as the interface with the other AstraZeneca iMeds to agree which compounds would be eligible Clive Morris VP New Opportunities iMed said that ―This Open Innova-tionlsquo approach brings together the strengths of AstraZeneca the MRC and UK Academia into what I hope will be a really potent mix bringing forward really exciting new ideas that could transform our understanding of some diseases It highlights an openness to new scientific thinking and also places external scientific collaboration right at the heart of what we do It is also an excellent way to broaden our portfolio of activities into new diseases for As-traZeneca leveraging the wealth of expertise across UK academia AstraZeneca and the MRC will invite preclinical and clinical research pro-posals from across the UK academic community to investigate the com-pounds in a range of diseases with a view to finding new treatment oppor-tunities AstraZeneca will work with the academic collaborators to develop the best scientific proposals and the MRC will select the highest quality pro-posals for funding awarding up to pound10 million in total to fund the success-ful proposals The successful applicants will then work collaboratively with AstraZeneca to deliver the studies David Brennan AstraZenecalsquos Chief Executive Officer said ―Innovative collaborations are playing a crucial role in finding ways to unlock the poten-tial of new treatments The UK has a strong heritage of research excellence in life sciences We hope that in sharing these valuable compounds with aca-demic scientists through the MRC new discoveries will be made by explor-ing additional uses of these compounds Source AstraZeneca WIPO ReSearch A Neglected Tropical Diseases Initiative October 26 2011 The World Intellectual Property Organization (WIPO) in an unprecedented collaboration with leading pharmaceutical companies and BIO Ventures for Global Health (BVGH) recently launched the WIPO Re Search a new consortium where public and private sector organizations share valuable in-tellectual property (IP) and expertise with the global health research commu-nity to promote development of new drugs vaccines and diagnostics to treat neglected tropical diseases malaria and tuberculosis In WIPO ReSearch Alnylam Pharmaceuticals AstraZeneca Eisai GlaxoS-mithKline MSD1 Novartis Pfizer and Sanofi are collaborating with WIPO BVGH the US National Institutes of Health (NIH) and multiple non-profit research organizations These include the California Institute of Technology the Center for World Health amp Medicine the Drugs for Ne-glected Diseases initiative Fundaccedilatildeo Oswaldo Cruz (Fiocruz) Massachu-setts Institute of Technology Medicines for Malaria Venture PATH the South African Medical Research Council the Swiss Tropical and Public Health Institute the University of California Berkeley and the University of Dundee (UK)

―WIPO ReSearch is a ground breaking example of how a multi-stakeholder coalition can put IP to work for social benefit said WIPO Director Gen-

eral Francis Gurry ―By joining WIPO ReSearch companies and researchers commit to making selected intellectual property assets available under roy-alty-free licenses to qualified researchers anywhere in the world for research and development on neglected tropical diseases malaria and tuberculosis This commitment should accelerate the development of medicines vaccines and diagnostics for these diseases

According to the World Health Organization (WHO) neglected tropical diseases today impair the lives of an estimated 1 billion people The WHO provides technical advice to WIPO on public health issues and research pri-orities as appropriate

By providing a searchable public database of available intellectual property assets information and resources WIPO ReSearch facilitates new partner-ships with organizations that conduct research on treatments for neglected tropical diseases malaria and tuberculosis

Membership in WIPO ReSearch as a user provider or supporter is open to all organizations that endorse adhere to and support the projectlsquos Guiding Principles These Guiding Principles include the commitment that IP li-censed via WIPO ReSearch will be licensed on a royalty-free basis for re-search and development on neglected tropical diseases in any country and on a royalty-free basis for sale of neglected tropical disease medicines in or to least developed countries

―The innovative pharmaceutical industry has an important part to play in addressing unmet medical needs and increasing access to our collective pro-prietary information will help advance research into treatment options for these underserved diseases said David Brennan CEO of AstraZeneca and President of the International Federation of Pharmaceutical Manufacturers amp Associations (IFPMA) ―WIPO ReSearch has the potential to make a real impact on global health which is why we are proud to make all patents owned by AstraZeneca available to this important initiative for promoting the research and development of treatments for neglected tropical diseases anywhere in the world

The WIPO ReSearch database includes a wide variety of contributions rele-vant to malaria tuberculosis and other neglected tropical diseases including individual compounds and associated data screening hits from compound libraries and expertise and know-how in pharmaceutical research and devel-opment In addition WIPO ReSearch offers the opportunity for neglected tropical disease researchers to work directly with scientists at pharmaceutical companies to advance RampD on these diseases As WIPO ReSearch moves forward offerings from current partners will continue to grow and new pro-viders are expected to join to add to the wealth of information compounds and services available

―NIH licenses its patents to enable the private sector to develop diagnostics therapeutics and devices that improve public health said National Insti-tutes of Health Director Francis S Collins MD PhD ―We want to ensure that our biological materials and patents covering treatments or vaccines for neglected tropical diseases as with all diseases are available as broadly as possible to speed the development of new products for people who are most burdened by these diseases and WIPO ReSearch helps us to do this

The founding eight pharmaceutical companies WIPO BVGH and NIH are joined by a distinguished group of globally recognized institutions as provid-ers potential users and supporters of WIPO ReSearch (see annex) BVGH will manage the WIPO ReSearch Partnership Hub which will facilitate rela-tionships between the pharmaceutical company providers and new users

―In our role as administrator of the WIPO ReSearch Partnership Hub BIO Ventures for Global Health is excited to bring these new opportunities to neglected disease researchers around the world to accelerate their work in this area of critical unmet need said Don Joseph Chief Operating Officer of BVGH ―As both present and future providers evaluate their internal data and IP with the goal to provide focused information which they believe will best serve the neglected tropical disease research and development commu-nity WIPO ReSearch will build on previous RampD investments to speed the development of drugs vaccines and diagnostics for the neglected diseases that disproportionately impact people living in resource-poor countries Source WIPO

Page 6: Bio Outsourcing Asia: Volume 1 Issue 3 2011.pdf · TB drug trials. Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies

6

Under the terms of the agreement scientists working with MMV will screen 500000 compounds in AstraZenecalsquos unique library for activity against P falciparum the most lethal of malaria parasites Prof V Avery at the Eskitis Institute for Cell and Molecular Therapies at Griffith University in Brisbane Australia will conduct the screening on behalf of MMV Promising com-pounds identified through the screening process will be starting points for antimalarial drug discovery projects These compounds will be progressed through a discovery cascade at AstraZenecalsquos RampD facility in Bangalore India with the aim of identifying suitable candidates for clinical testing (MMV 2010) David Brennan AstraZenecalsquos CEO said ―hellipOpening up our compound library to MMV is an important step toward addressing the enormous unmet medical needs of the developing world AstraZeneca is committed to being part of the solution and we look forward to working with MMV and all those with a stake in global health (MMV 2010) Tim Wells MMVlsquos Chief Scientific Officer stated that ―hellipthe additional advantage is the Indian perspective India has millions of cases of malaria per year and in addition has a balance between Plasmodium falciparum and Plasmodium vivax Understanding and eliminating Indian malaria is one of the keys to eliminating malaria worldwide (MMV 2010) Opening up Proprietary Assets AstraZeneca recently agreed to join the World Intellectual Property Organizationlsquos (WIPO) WIPO ReSearch initiative in what is an unprece-dented collaboration between the private sector and public partners WIPO ReSearch will present to the public a searchable database of available IP as-sets and resources for use in neglected tropical disease (NTD) research The commitment includes the provision that IP licensed via WIPO ReSearch will be licensed on a royalty-free basis for research and development for ne-glected tropical diseases in any country It will also be licensed on a royalty-free basis for sales of neglected tropical disease medicines in or to least de-veloped countries AstraZeneca has committed to making its entire patent portfolio available for use in NTD RampD through WIPO ReSearch In addi-tion AstraZeneca will provide access to its high throughput screening tech-nologies compound collection and global laboratories AstraZeneca hopes to increase opportunities for scientists to work at it facilities around the world and encourage scientific mentoring and use of innovative technologies

by guest scientists researching treatments for NTDs (AstraZeneca 2011) Through a combination of open innovation and open source initiatives AstraZeneca shares the joint goal of speeding up the discovery and develop-ment of new potential treatments for NTDs Time will tell which strategies prove most effective in terms of both product development and product access (Figure 1) References 1 AstraZeneca and MMV join efforts in the fight against malaria MMV

June 2010 2 CPTR httpcptrinitiativeorg 2011 3 CPTR Yields Progress November 2011 4 Kollewe J AstraZeneca joins fight against tuberculosis

The Guardian March 2011 5 Leading pharmaceutical companies amp research institutions offer IP

and expertise for use in treating neglected tropical diseases AstraZeneca October 2011

6 MM4TB wwwmm4tborg 2011 7 Partnering is a Priority AstraZeneca 2011 8 Tackling TB AstraZeneca 2011 9 The Global Alliance for TB Drug Development (TB Alliance) and

AstraZeneca Announced that they have Entered into a Research Col-laboration Agreement to Accelerate the Discovery Development and Clinical Use of Drugs Against Tuberculosis (TB) AstraZeneca 2010

Figure 1 Open Innovation and Open Source Strategies for NTDs at AstraZeneca

AstraZeneca Global Open Source Strategy

WIPO ReSearch Alliance Sharing of Compounds

Technology Access to IP

AstraZeneca Malaria Open Innovation

Strategy Dedicated Research Facility

Bangalore India

AstraZeneca Global NTD Strategy

Guest Researcher Access to Global Facilities

Mentorship Opportunities for Research in NTDs

AstraZeneca TB Open Innovation Strategy Dedicated Research

Facility Bangalore India CPTR Alliance

7

8

Pfizerrsquos Open Innovation Strategy in Asia

Pfizer has been targeting Asian markets since the early 1950s and is one of the largest US-headquartered pharmaceutical companies in Asia One key issue is the disassociation between drug research and sales It has increas-ingly become apparent that the majority of RampD is conducted outside Asia while products are sold within target Asian markets The Asia Research Ac-celerator strategy was designed to address this concernmdashwith the goal of advancing drug discovery programs in Asia while complementing existing research efforts in North America and Europe (Pfizer Global Opportuni-ties 2010) Through this initiative Pfizer invests in Asia-based research efforts that may yield either new candidates for medicines or new pathways for technology development In 2010 Pfizer either launched or expanded collaborative ef-forts throughout the region with major Asia-based researchers such as WuXi AppTec Crown Bioscience Cumencor HD Biosciences and PharmaResources (Shanghai) Co as well as through academic partnerships with Fudan University Shanghai Jiao Tong University and Shanghai Institutes for Biological Sciences (Pfizer Global Opportunities 2010) This global network of industry and academic alliances is stimulating bio-medical advances into diseases that are more prevalent in Asia than in other parts of the world For example Pfizer currently has partnerships with the Korea Research Institute of Bioscience and Biotechnology and with the Asian Cancer Research Group (an independent not-for-profit company es-tablished by Pfizer Eli Lilly and Merck) to investigate treatments and to un-derstand certain types of gastric liver head and neck cancers that have higher prevalence rates in Asia than in places such as North America and Western Europe Here we see capacity development in emerging markets with the objective to address the health concerns of the Asian patient (Pfizer Global Opportunities 2010) An Open Source Strategy for New Drug Discovery In 2010 Eli Lilly and Company Merck and Pfizer Inc formed the Asian Cancer Research Group Inc (ACRG) an independent not-for-profit com-pany The ACRGlsquos formation represents a prime example of a growing trend in pre-competitive collaboration in which large pharmaceutical compa-nies combine their resources and expertise to rapidly increase knowledge of disease and disease processes The goal of the ACRG is to improve the knowledge of cancers prevalent in Asia and to accelerate drug discovery ef-forts by freely sharing the resulting data with the scientific community Initially the ACRG will focus on lung and gastric cancers two of the most common forms of cancer in Asia As many as 40 percent of patients with lung cancer in Asia demonstrate a mutation that is relatively rare in Western patients (EGFR mutation) This mutation has resulted in differences in re-sponse to some types of agents suggesting that a different research ap-proach is needed for developing treatments for certain patient populations Over the next two years Lilly Merck and Pfizer have committed to create one of the most extensive pharmacogenomic cancer databases known to date This database will be composed of data from approximately 2000 tis-sue samples from patients with lung and gastric cancer that will be made publicly available to researchers and over time further populated with clini-cal data from a longitudinal analysis of patients (Pfizer 2010) Ties to Academia In the past six years Pfizer RampD China has developed a large collaborative research network covering basic research institutes contract research or-ganizations and smaller biotech and pharmaceutical firms Pfizerlsquos China Research and Development Center a state-of-the-art facility that provides global drug development support capabilities research collaborations and strategic alliance opportunities to China and the Asian region is based in Shanghai It is the largest RampD center for a multinational pharmaceutical company in China The Center works alongside Chinese partners to develop the skills and talents of local scientists biostatisticians medical professionals pharmacists and others with expertise in life sciences The Center collabo-rates with leading academic researchers and top institutes in China including Peking University Tsinghua University Shanghai Jiaotong University and multiple institutes of the Chinese Academy of Sciences (Pfizer 2009) Pfizer signed a deal in July 2009 with the Shanghai Institute of Biological Sciences (Sibs) As part of this deal Pfizer will provide US$500000 each year for three years to fund early stage joint research in life sciences and new drug development between Sibs scientists and Pfizer scientists Scientists in basic research institutes learn drug development skills from industry collabo-

rators while Pfizer scientists learn from and gain access to ideas of the aca-demics Though the funding is small the joint research is supported by Pfizerlsquos global resources For example proposals are revised to become more feasible and workable The researchers also receive assistance on intel-lectual property managementmdashhence the attraction of the programme for Chinese life scientists (Jia 2010) ―Our choice of Shanghai Institutes for Biological Sciences as a research part-ner demonstrates our high regard for the scientific expertise and capabilities of SIBS said Martin Mackay President Pfizer Global Research and Devel-opment ―China is increasingly seen as a source for innovative healthcare research and we are proud of our ongoing investment in the outstanding science and people here Research projects will be selected and developed jointly by Pfizer and SIBS scientists (Pfizer 2009) In parallel Pfizer has made a significant commitment to South Korean re-searchers The company signed a memorandum of understanding with the countrys Ministry of Health and Welfare in 2007 agreeing to invest $300 million in RampD in the country At this time Pfizer formed a strategic re-search partnership with the Korea Research Institute of Bioscience and Biotechnology (Ray 2010) Pfizer and the Korea Research Institute for Bioscience and Biotechnology (KRIBB) expanded the earlier agreement in May of 2010 to jointly develop drugs for liver and gastric cancer and to in-vest a total of KRW 300 billion (U$240 million) from 2008 to 2012 (Moffat 2010) Continuing its focus on pharmacogenomics Pfizer also recently formed a research partnership with Samsung Medical Centre in Seoul for the analysis of Korean liver cancer patients in order to generate gene expression profiles for the condition (Adams 2010) Choi Han-Yong president of Samsung Medical Centre said ―We are pleased to have an opportunity to work with the worldlsquos number one phar-maceutical company Pfizer to better understand cancer in Korean patients with the goal of being able to send a new message of hope for patients with liver cancer across the world especially in Asia (Adams 2010) Centers for Therapeutic Innovation (CTI) Pfizer recently announced the formation of a network of academic collabo-rators to accelerate the translation of basic science into biologics-based drugs According to Mikael Dolsten MD PhD president of Pfizer Worldwide Research amp Development the Centers represents a novel open innovation paradigm combining the competencies of top academic research institutions with Pfizerlsquos leading drug development capabilities and research technologies (Pfizer 2010) The Centers for Therapeutic Innovation (CTI) will initially focus on collaborations within the US Pfizer expects to expand into Europe and Asia in 2012 Each Center will be governed by a Joint Steering Committee (JSC) comprised of Pfizer and Academic Medical Cen-ter (AMC) representatives who will provide leadership and evaluate the suc-cess of each program through discovery and early stage clinical develop-ment Through this innovation model Pfizer will have the opportunity to broaden its pipeline with novel candidate drugs to treat diseasesmdashaddressing unmet medical need (Pfizer 2010) A key aspect of the Centers for Therapeutic Innovation is Pfizerlsquos commit-ment to establishing local Centers at each partner site The partnerships will follow a venture capital-funded biotechnology start-up model whereby Pfizer funds preclinical and clinical development programs and offers equi-table intellectual property and ownership rights as well as broad rights to publication When programs are successful and advance according to the terms determined by a joint steering committee Pfizer will grant milestone payments and royalties (Rockefeller University 2011) ―The concept is to make a transition away from the vertically integrated RampD model into smaller decentralized groups of a truly global nature says Pfizerlsquos Anthony Coyle who is heading up the program out of the com-panys Cambridge Massachusetts facilities (Ratner 2011) The CTI will provide the primary investigator (PI) with funding (postdoctoral support) technical support (dedicated Pfizer personnel with expertise in protein sciences and development) and infrastructure (laboratory space libraries robots) (Pfizer 2011) The incentives operating model and goals for participating primary investigators and Pfizer colleagues will be designed to support achieving a positive Proof-of-Mechanism study in humans (PoM) PoM studies are small investigator-led clinical trials that typically involve 10 to 30 human subjects and have defined mechanistic or therapeutic endpoints (Pfizer 2011)

9

Partnerships Reaching Down the Value Chain In 2008 WuXi PharmaTech signed a three year deal with Pfizer Under the new collaboration agreement WuXi PharmaTech in partnership with Pfizer will establish ADME assays to provide in vitro screening services on com-pounds WuXi PharmaTech synthesizes for Pfizer (WuXi 2008) WuXi PharmaTech and Pfizer have previously collaborated on synthetic chemistry parallel medicinal chemistry ADME and bioanalytical services ―This new agreement further strengthens our already productive relationship with Pfizer one of our largest customers for many years and it is the direct result of our research capability and firm commitment to quality and customer sat-isfaction according to Ge Li PhD chairman and CEO of WuXi PharmaTech (GEN News 2008) In 2009 Pfizer and Crown Bioscience Inc (Crown) announced a collabora-tion to research and develop novel therapeutics for Asian cancers Under the terms of this agreement Crown will receive an upfront payment and re-search funding as well as milestone payments based on the achievement of preclinical and clinical goals The companies will work together to discover and advance multiple candidates for clinical development The work will take place at Crownlsquos new research facility located in Taicang (near Shang-hai) China (Pfizer 2009) ―I am delighted to be collaborating with Pfizerlsquos exceptional oncology group says Alex Wu CEO of Crown ―I am also very happy that Pfizer is focusing on and dedicating resources to address a very important unmet medical need for the Asian populations This new collaboration extends an already very successful partnership between Crown and Pfizer and further demonstrates Crownlsquos commitment to becoming an outstanding cancer re-search company in Asia (Pfizer 2009) Reaching out to the bottom of the pyramid MicuRx Pharmaceuticals Inc a biopharmaceutical company (with its presence in San Francisco US and Shanghai China) dedicated to the development of antibiotics to treat drug-resistant bacteria and Cumencor Pharmaceuticals Inc recently announced that the companies have entered a collaboration with Pfizer (NYSE PFE) to discover novel therapeutic agents to treat multi-drug resistant tuberculosis (MDR-TB) Cumencor Pharmaceuticals is a China-based biotechnology company applying MicuRxlsquos proprietary technology platform to discover and develop novel antibiotics for MDR-TB (PR Newswire April 2010) Under the terms of the agreement Pfizer will provide an upfront payment funding for the discovery and preclinical development of novel antibiotics to treat MDR-TB and payments linked to the development and commerciali-zation (including royalty payments on sales) of any antibiotics developed through the collaboration All collaboration research will be conducted at the ZhangJiang High-Tech Park in Shanghai China (PR Newswire April 2010) ―MicuRxlsquos novel approach to developing antibiotics for the treatment of drug-resistant bacteria and their existing technology know-how and exper-tise provide the basis for this collaboration said Steve Yang PhD Vice President and Head of Pfizers Asia Research and Development organiza-tion ―We expect that any compounds resulting from the collaboration will complement our portfolio of anti-infective agents and build our global pres-ence in the emerging pharmaceutical markets of Asia and beyond (PR

Newswire April 2010) Building Intellectual Capital in Asia through Open Innovation Pfizerlsquos open innovation strategy in Asia has a strong capacity development focusmdashnamely the development of intellectual capacity in Asia Beginning with a focus on health issues directly affecting the Asian patient Pfizer is not only devoting its resources to such diseases but through the ACRG will widely share pharmacogenomic information pertaining to lung and gastric cancers Supporting this endeavour are collaborations with the Korea Research Institute for Bioscience and Biotechnology (KRIBB) and the Samsung Medical Centre in Seoul Through its association with the Shanghai Institute of Biological Sciences (Sibs) and the planned Centers of Therapeutic Innovation Pfizer hopes to fund early stage joint discovery and clinical research in life sciences and new drug development Scientists in ba-sic research institutes will learn drug development skills from industry col-laborators while Pfizer scientists learn from and gain access to ideas of the academics Training opportunities in the area of intellectual property man-agement have been equally attractive to scientists Knowledge sharing knowledge development and exchange should support a vibrant life sciences sector in emerging markets in Asiamdashwith the goals of addressing chronic and neglected diseases that are endemic to Asia (Figure 1) References 1 Adams B Pfizer form liver cancer research partnership in Korea InPharm

July 2010 2 Jia H Though the funding is small the joint research is supported by

Pfizerlsquos global resources Chemistry World October-December 2010 3 MicuRx Pharmaceuticals and Cumencor Pharmaceuticals Partner with Pfizer

to Discover and Develop Antibiotics for Drug-Resistant Tuberculosis in China PR Newswire April 2010

4 Moffat B Global pharma eyeing Korean acquisitions as nation becomes test-bed Private Equity Korea May 2010

5 Pfizer And Crown Bioscience Announce A Collaboration To Research And Develop New Treatments For Asian Cancers Pfizer 2009 Pfizer Announces Partnership With Shanghai Institutes For Biological Sci-ences For Drug Discovery Activities BusinessWire July 2009

6 Pfizer Employs WuXi PharmaTech for In Vitro ADME Services GEN News November 2008

7 Pfizer Global Opportunities Annual Review 2010 8 Pfizer Launches Global Centers for Therapeutic Innovation a Network of

Research Partnerships With University of California San Francisco Pfizer November 2010

9 Publicly Available Genomic Database of Profiled Tumor Samples to Provide a Resource for Biomedical Researchers Worldwide Lillycom February 2010

10 Ratner M 2011 Pfizer reaches out to academiamdashagain Nature Biotechnol-ogy 29 3-4

11 Ray T PfizerSamsung Collaboration to Focus on PGx Strategies to Per-sonalize Liver Cancer Treatments in Korea Pharmacogenomics Reporter July 2010

12 Rockefeller joins Pfizerlsquos Global Centers For Therapeutic Innovation The Rockefeller University April 2011

13 WuXi PharmaTech Signs New Collaboration Agreement With Pfizer WuXi AppTec November 2008

14 wwwpfizercom 2011

Figure 1 A Broad Asian Open Innovation Strategy at Pfizer

Pfizerrsquos Open Source Strategy

Asian Cancer Research Group Inc (ACRG)

Reaching Down the Value Chain Alliance with WuXi

PharmaTech Alliance with Crown

Biosciences Alliance with MicuRx Pharmaceuticals

and Cumencor Pharmaceuticals

Ties to AcademiamdashIntellectual Capital Development

China Research and Development Center

Sibs Alliance KRIBB Alliance

Samsung Medical Centre Alliance CTI

10

11

A Networked Open Innovation Strategy The SpringFire Laboratory Network Technological complexities and market pressures have increased the degree to which companies are outsourcing to highly specialized technology driven companies However conventional outsourcing on a project-by-project ba-sis is strategically insufficient in this era A new type of structure-the virtual or networked outsourcing company provides access to customized solutions and is focused on long-term strategic partnering The formation of this new networked outsourcing company structure is driven by the need to access a broad range of expertise and the shift from narrowly focused specialized outsourcing companies to ―all inclusive outsourcing companies The virtual company is much more agile responsive to paradigm shifts and regulatory changes Accessible expertise can cover drug discovery from the earliest stage of lead compound identification and development through preclinical clinical phases manufacturing global registration post-marketing and line-extension studies The virtual outsourcing company enables access to a multidisciplinary team where the appropriate skill sets and expertise can be available at each stage of the biopharmaceutical value chain Appropriate teams are quickly assem-bled to manage issues as they arise In contrast large vertically integrated outsourcing companies can face many of the same problems associated with the fully integrated biopharmaceutical company including integration coor-dination and communication problems For each team the most suitable individuals from the most appropriate outsourcing firms within the network are selected on the basis of skills experience and fit with the project or product goals client and other individuals on the team Virtual outsourcing companies manage the various contracts budgets and relationships for their clients Lower project risk exists as dependency on a single supplier relation-ship is removed A virtual company must add value and not act simply as an intermediary be-tween contractors and large companies To operate successfully within the virtual environment requires strong industrial and academic networks effec-tive project management skills highly developed intellectual property man-agement skills and the ability to bring together partners to enable drug devel-opment Teams of experienced suppliers and experts are tailored to fulfill project or product requirements and are led by a dedicated senior project manager to ensure knowledge coordination and integration Forming the right partnerships and teams as well as managing operational processes in-crease the effectiveness of RampD outsourcing and ensure that the associated cost time and risk-sharing benefits are enjoyed by the Sponsor Models at Work The SpringFire Laboratory Network SpringFire Laboratory Network is a firm with the goal to match pharmaceu-tical medical device and biotech companies with clinical laboratories to pro-vide clinical trial testing solutions SpringFire Laboratory Network is unique in representing a network of independent non-competing high complexity laboratories collectively providing testing offerings to the clinical trial mar-ketplace The founders discovered that there was a strong desire by Sponsors and CROs to have choices in laboratories other than large laboratory companies with rigid requirements and little flexibility or educational institutions that were expensive and less responsive to external clients However there was little incentive for independent laboratories to pursue clinical trials testing given the large upfront costs to start a business development effort and the significantly different and lengthy sales cycle in clinical trials In an attempt to bridge the gap between the strong need for laboratory choices and the reluctance of independent laboratories to shoulder the bur-dens of clinical trials initiatives SpringFire Laboratory Network was estab-lished The network includes hand-selected independent laboratories to pro-vide testing services to clinical trial Sponsors and CROs The SpringFire team provides business development services for the network laboratories as well as expert knowledge around project management and clinical trial-specific operations The laboratories are non-competing and as such they share costs and best practices with one another without competing for the work ―The clinical trial marketplace has a need for esoteric laboratories to respond to its ever-expanding requests states Jim McClintic Managing Partner of SpringFire Laboratory Network

Selecting and Matching Network Participants SpringFire Laboratory Network is committed to a successful outcome for each drug or device development project The network of laboratories is made up of hand-selected ―Centers of Excellence The affiliated laborato-ries provide solutions in sub-specialized anatomical pathology and highly specialized clinical diagnostic testing along with state of the science micro-array testing SpringFirelsquos core team works with all affiliated laboratories to ensure their internal operations meet or exceed the unique regulatory and data manage-ment needs of clinical trials Each laboratory has demonstrated their abilities to provide customized quality results for clinical investigations on an inter-national basis The SpringFire affiliated laboratories are highly regarded in their specialized areas of testing expertise Each affiliate laboratory is evalu-ated to determine their fitness for work in the clinical trials arena A variety of characteristics are considered during a 2-day on site assessment including

Past clinical trial experience Quality laboratory processes Scientific and medical leadership Platform and technology maturity Project management Storage space options Data management capabilities Commitment to providing quality testing to clinical trials Sponsors

or CROs Since most of the laboratories are non-competing the matching process is usually based on the services requested and which lab provides those ser-vices In the event that more than one laboratory provides the requested tests or services SpringFire works with the laboratory that provides the most comprehensive set of tests or services In the event that no single lab performs all of the testing SpringFire will facilitate for two or more of the network laboratories to work together on a study Current Members of the Network SpringFire Laboratory Networklsquos current member laboratories are based in North America The Network provides testing services for both domestic and international study sites and is open to working with laboratories and sponsors around the globe Current members include

With a combined menu of more than 1000 specialty tests SpringFire offers Sponsors and CROs expertise and testing services in numerous therapeutic areas including anatomical pathology coagulation advanced lipids molecu-lar genetics and womenlsquos health The SpringFire network of laboratories col-lectively represent over 90 years of experience in the clinical marketplace while successfully completing more than 250 clinical trials Governance of the Network The SpringFire team is much more than business development The team works closely with each laboratory before during and after the study From the start the team works with each laboratory to build a competitive and timely proposal With the awarding of a contract the SpringFire team re-views and assists with negotiations and contract development During the study start-up phase the team facilitates on-going communications and lo-gistics to ensure the effective completion of tasks including routinely follow-ing up with both the laboratory and Sponsor or CRO to ensure good com-munication and suitable quality laboratory services When the study is con-cluded all parties are provided with a summary and an opportunity to share their experiences thoughts and ideas on the study and the laboratory ser-vices (Figure 1)

Laboratory Specialization

D-Path Dermatopathology

GI Pathology Gastrointestinal and liver pathology

ITxM Diagnostics Coagulation testing

Atherotech Diagnostics Advanced lipids

Baylor College of Medicinersquos Molecular Genetics Laboratories

Pharmacogenomics cytogenetics and medical genetic diagnostics

Baylor College of Medicinersquos Cancer Genetics Laboratory

Cancer-related genetics testing

12

Figure 1 Interactions in the SpringFire Laboratory Network Knowledge management is vital both to the effective working of the project team but also to the efficient transfer of information to and from the Sponsor as well as to external audiences such as site investigators regulatory authorities and potential licensees Outsourcing multiple stages of the drug product life cycle is critical for those companies that require access to expertise and technology in a rapidly chang-ing paradigm without the risk and cost associated with internal development Both young and small biotechnology companies and large traditional phar-maceutical companies can benefit from the model of drug discovery and development offered by organizations such as the SpringFire Laboratory Network

SPRINGFIRE

CORE TEAMPartner Selection

Best Practice Sharing

Baylor College of

Medicines

Cancer Genetics

Laboratory

GI Pathology

D-Path

ITxM Diagnostics

Baylor College of

Medicines

Molecular Genetics

Laboratories

Atherotech

Diagnostics

SPONSORCRO

PARTNER

MATCHING

GOVERNANCE

LESSON

KNOWLEDGE

TRANSFER

UPCOMING BIO PARTNERSHIPS ASIA 2012 CALENDAR

EDITORIAL

TRENDS AND ANALYSIS Articles that run 1500-2000 words and explore trends across the value chain describe opportunities in emerging Asian markets outline policy changes enabling partnerships in these markets and discuss the management of such partnerships

CASE STUDIES Company case studies that run 500-1000 words and explore partnerships across the drug discovery and development value chain

Submit text and electronic images with a resolution of 300 dpi or better We cannot guarantee placement in a particular issue The staff may schedule an entry to coincide with a certain issues editorial theme

COMPANY PROFILES Service provider profiles Send the following information Company name

contact information description services offered markets served and partnerships sought Also send a company logo

TECHNOLOGY PROFILES Technology licensing opportunities Send the following information Technology background areas of application competitive advantages stage of development intellectual property status partnerships sought and contact

information Please forward an image if applicable

NEWS RELEASES Updates on deals partnerships opportunities Send a press release and a company logo

MONTH FEATURE STORIES TRENDS AND ANALYSIS

CASE STUDIES

February 2012 New Models of Open Innovation in Asia

Business Model Analysis

Company Profiles

May 2012 Cluster Formation and Participation in Asia

Case Analysis Cluster Profiles

August 2012 Partnerships and Biopharmaceutical Capacity

Development in Asia

Case Analysis Company Profiles

November 2012 Transferring the Lessons from Asia to the Bottom of

the Pyramid

Lessons from India China Singapore

Middle East

Company Profiles

13

14

15

Convergence Innovation Development at the Intersection of Disciplines Organizations and Products Convergence Innovation is the paradigm where discovery and technology creation occur at the intersection of multiple disciplines and organizations Specifically convergence between the chemical biological cognitive physi-cal and information sciences is evident Firms and researchers will cross the boundaries between these disciplines to create technological value--finding solutions to address health environmental and energy challenges In parallel will be emergence of new models of collaboration to enable knowledge crea-tion and knowledge dissemination Central to Convergence Innovation will be a determination of the common value of knowledge versus the private value of knowledge across the associated disciplinesmdashwith the goal of ad-vancing and commercializing technology Levels of Convergence Convergence can be considered at three levelsmdashnamely convergence in the sources of knowledge for research convergence in organizational forms to enable technology development and convergence at the product level with the embodiment of knowledge in complementary products For example while nanotechnology research has been shown to have a dominant focus on material sciences additional analysis has demonstrated that nano-based research increasingly draws its knowledge from other areas (Porter and Youtie 2009) Specifically Porter and Youtie (2009) reveal that while nano-based publications center on materials science (including chemistry and physics) nano-based research also significantly involves many other fields including biomedical sciences computer sciences and mathematical sci-ences environmental sciences and engineering Citation patterns further show extensive referencing across macro-disciplinesmdashwith a preponderance of references in nano-related articles to research outside the macro-discipline in which the article is published (Porter and Youtie 2009) Conse-quently at this level of convergence the sharing and absorption of research across the involved disciplines will be necessary for downstream value crea-tion (Figure 1) Figure 1 Convergence at the Disciplinary (Knowledge Sources) Level At the next level of convergencemdashthe organizational levelmdashthe interaction between technological convergence and models of open innovation is be-coming apparent Licensing mergers acquisitions and strategic alliances such as joint ventures as well as new structures such as innovation networks and open innovation communities represent alternative strategies that may be used to acquire or access the necessary knowledge or assets for discovery and development From a convergence perspective the opportunity exists for a (public or private) stakeholder to not only interact with other (public andor private sector) stakeholders through simple one-to-one traditional collaborations but with many stakeholders through more complex mecha-nisms such as consortia crowdsourcing and other such open innovation communities For example the need for shared scientific expertise and large scale infrastructure in both nanotechnology and biotechnology is thought to be responsible for the development of networks spanning both fields (Figure 2) The pervasiveness of enabling technologies such as information and communications technology (ICT) have encouraged innovation net-works to increase in dominance and have lead to the blurring of organiza-tional boundaries among research organizations (Powell Koput and Smith-Doerr 1996 Roijakkers and Hagedoorn 2006) In such collaborations the opportunity to assume multiple roles exists to enable RampD including the collaborator who shares knowledge with one or many partners for the pur-poses of discovery or development the incubator who provides funding or expertise to other stakeholders to support venture development the enabler

who provides access to tools equipment large scale infrastructure or other services to support product development and the orchestrator who manages the network of partners with either the objective of knowledge creation or knowledge application (Melese Lin Chang and Cohen 2009) At this level of convergence there is the critical need to closely examine the management processes associated with collaboration as the collaborative strategies have not only grown in relevance but also in terms of impact and the number of participants involved

Collaboration Model

Access

Simple (One to One) Complex (Many to Many)

Collaboration Complexity

Figure 2 Convergence at the Organizational Level Open Access=Participation Open Closed Access=Exclusive Partnership

Simple=One to One Link between Partners Complex=Many Links between Several Partners PPP=Public Private Partnership JV=Joint Venture

The location in the above grid determines the extent to which the collabora-tion is open or closed and between one few or many partners

Finally the outcomes from any collaborative interaction will increasingly lead to convergence at the product level In this case multiple components or products will be packaged together to enhance the value over individual product offerings (Figure 3) Such bundled products will have the goal of simultaneously meeting several technological needs be it for biomedical treatment as seen in the use of nano-based diagnostics paired with therapeutics in agriculture or environmental applications as seen in the use of sensors to measure pathogens in food and the environment or the use of nanospheres to selectively detect harmful materials in water and then used for detoxification and in the creation of novel energy technologies as seen in the use of catalysts in particles for biodiesel synthesis to name a few (Schmidt 2007) At the product level effective intellectual property man-agement strategies and coordination between regulatory agencies will be paramount

Figure 3 Convergence at the Product Level

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

COGNITIVE

PPP JV

MampA

Consortium Innovation Network

Crowdsourcing Open Source Network

Licensing

Proprietary Open Innovation Community

Closed

Open

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

Nanomaterials

Nanodevices

Nanoelectronics

Nanosensors

Bioinformatics

Biosensors

Tissue Engineering

Drug Delivery

Diagnostics

Drug Delivery

Chemical Catalysis

Nanofiltration

Chemical Sensors

Neuron Network

Prostheses GenerationCOGNITIVE

16

The Impact of Convergence At each level of convergence there are several complexities that either im-pact the management of stakeholder interaction or the management of the knowledge based assets generated through such interactions For example given the expected intersection between disciplines knowledge complexities including varied types (such as biological information and biological struc-tures chemical knowledge and structures physical knowledge and struc-tures) and forms of knowledge (disembodied and embodied) will drive the need for a common platform for knowledge integration validation and standardization Beyond integration of knowledge it is expected that teams of biological chemical and physical scientists will increasingly form to de-velop and bridge together the necessary tools and equipment for RampD ac-tivities (Ideker Galitski and Hood 2001 Kitano 2001 Kautt Walsh and Bittner 2007 Boardman 2008 Boardman and Ponomarioy 2009) We must also consider the impact of convergence on the downstream rights to de-velop products Lemley (2005) discusses that unlike other industries in which patentees are actual or potential participants in the downstream mar-ket a significant number of corporate patentees will increasingly own rights not just in the industry in which they participate but other industries as well Analysts fear that over-patenting alongside the large shadow of such patents could not only fragment technology but could discourage stakeholders in a number of industries from attempting to develop products incorporating infringing technologies (Lemley 2005) It is important to consider that as multiple disciplines increasingly working together each discipline will have its own priorities and conventions regarding knowledge dissemination and knowledge appropriation (Hilgartner 1996) One discipline may signal its success during knowledge generation through the enclosure and the sale of disembodied knowledge Another discipline may measure its success exclu-sively by the embodiment of knowledge in medical products (Hilgartner 1996) While patent pools are a suggested solution to the possible patent holdups (DlsquoSilva 2009) it has been proposed that as has occurred in the genomics arena innovation-based networks with rules regulating the devel-opment and appropriation of critical technology building blocks could not only circumvent the product development and legal problems of the past but will also bring together the requisite intellectual and physical capital (DlsquoSilva 2009 Allarakhia and Walsh 2010) A Template for Managing Interactions and Knowledge-Based Assets Governance strategies must seek to align the incentives for participation in collaborative activities for multiple stakeholders The use of rules to define actions communication mechanisms used to enable and monitor actions and to share the outcomes are all critical to ensure that goals are achieved Structure and Roles It is expected that the chosen collaboration modemdashone to one one to many or many to many collaboration and objectives set for the collaborationmdashpooling of assets generation of new assets andor pol-icy creation will impact the type of participants that will join The organiza-tional structure chosen will be determined in part by the attributes of the resources to be contributed or developedmdashinformation supporting tools technology as well as the location of participantsmdashwith linkages established through physical clustering or virtual networking Thereafter the organiza-tion of participants may be a function of technological expertise geographic location or project-based management expertise Resource Types and Outcomes Participants will contribute several inputs including funding equipment and human capital The resulting outcomes include data materials tools and technology Facilities store artifacts in or-der to make them accessible Traditional facilities have been libraries and archives containing books journals and papers New technologies have made electronic distributed information possible Artifacts are discreet ob-servable nameable representations of ideas such as articles research notes books databases maps computer files and web pages (Foray 2004 Hess and Ostrom 2006) In the context of nanotechnology databases material and model repositories accessible laboratories that aggregate equipment and tools for nanotechnology development are varied options to manage the outputs Hence any outcomes analysis should seek to determine the success of collaboration including the amount of data produced and accessed the material generated housed and accessed the tools created and used and the technology produced by participants Governance Internal rules or mechanisms used to promote cooperative be-haviour can include formalizing the requirements to join the initiative en-suring frequent interactions encouraging communication between partici-pants monitoring and punishing defection and setting the boundary for access to resources An authority that regulates access to resources can en-sure that a fair and efficient governance strategy is used (Ostrom Gardner and Walker 1994) While access generally refers to disembodied assets such

as data extraction can involve the removal andor use of physical materials models and tools Knowledge use and access can be governed by the fol-lowing rules sharing with partners only (closed access) sharing with part-ners and the public at large (open access) and intellectual property assign-ment potentially on information materials tools and technology with the specification of rights to use based on licensee type geography or target market for product launch Creating Value The Path Forward in The path forward will require the creation of supporting policies encourag-ing multi-disciplinary collaboration At a national level several governments have recognized the importance of innovation networks to develop capacity and compete on an international level Consequently policies are now pro-viding more RampD funding and incentives encouraging the formation of multi-sectoral networks (Corley Boardman and Bozeman 2006) New prod-ucts of convergent technologies will necessitate cooperation among regula-tory bodies with the coordination of information flow coordination of du-ties and increased harmonization between international regulatory bodies (Castle et al 2006 Drezek and Tour 2010) To avoid the mistakes of the past policies outlining guidelines for the management of intellectual prop-erty rights can ensure that stakeholders will correctly assess the common value of knowledge versus the private value of knowledgemdashresulting in the transition from open knowledge to appropriated knowledge with the objec-tive of pursuing (unilateral or collaborative) downstream product develop-ment References 1) Allarakhia M amp Walsh S Managing knowledge assets under conditions of radical change The case of the pharmaceutical industry Technovation 31 105-117 (2011) 2) Boardman P Beyond the stars The impact of affiliation with university biotechnology centers on the industrial involvement of university scientists Technovation 28 291-297 (2008) 3) Boardman Pamp Ponomarioy B University researchers working with pri-vate companies Technovation 29 142-153 (2009) 4) Castle D Loeppky R Saner M Cline C Dalgleish J amp Wojnik V Convergence in Biotechnology Innovation Case Studies and Implications for Regulation (University of Guelph Guelph 2006) 5) Corley EA Boardman PC amp Bozeman B Design and the manage-ment of multi-institutional research collaborations Theoretical implications from two case studies Research Policy 35 975-993 (2006) 6) Drezek RA amp Tour JM Is Nanotechnology Too Broad to Practice Nature Nanotechnology 5 168-169 (2010) 7) DlsquoSilva J Pools thickets and open source nanotechnology European Intellectual Property Review 31 300-306 (2009) 8) Foray D The Economics of Knowledge (MIT Press Cambridge 2004) 9) Hess C amp Ostrom E Understanding Knowledge as a Commons From Theory to Practice (MIT Press Cambridge 2006) 10) Ideker TT Galitski L amp Hood LE A new approach to decoding life Systems biology Annual Review Genomics and Human Genetics 2 343-372 (2001) 11) Kautt M Walsh S amp Bittner K Global distribution of microndashnano technology and fabrication centers A portfolio analysis approach Technol-ogy Forecasting and Social Change 74 1697-1717 (2007) 12) Kitano H Systems biology Toward systems-level understanding of bio-logical systems Foundation of Systems Biology 1-29 (MIT Press Cam-bridge 2001) 13) Lemley MA Patenting nanotechnology Stanford Law Review 58 601-630 (2005) 14) Melese T Lin SM Chang JL amp Cohen NH Open innovation net-works between academia and industry an imperative for breakthrough therapies Nature Medicine 15 502-507 (2009) 15) Ostrom E Gardner R amp Walker J Rules Games and Common-Pool Resources (The University of Michigan Press Ann Arbor 1994) 16) Porter AL amp Youtie J How interdisciplinary is nanotechnology Jour-nal of Nanoparticle Research 11 1023-1041 (2009) 17) Powell WW Koput KK amp Smith-Doerr L Inter-organizational col-laboration and the locus of innovation Network of learning in biotechnol-ogy Administrative Science Quarterly 41 116-145 (1996) 18) Roijakkers N amp Hagedoorn Inter-firm RampD partnering in pharmaceu-tical biotechnology since 1975 Trends patterns and networks J Research

Policy 35 431minus446 (2006) 19) Schmidt K Project on Emerging Nanotechnologies (2007)

17

18

Beyond Cost-Savings Hidden Considerations for Conducting Clinical Trials in Asia

By Jessica Liu General Manager ChinaNorth Asia INC Research and Garth Tierney Regional General Manager Australia and South East Asia INC Research

Abstract Pharmaceutical industry sponsors are well-aware of the cost bene-fits of conducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the pri-mary criteria by which sponsors should select the Asian regions in which they will conduct their clinical trials Other important considerations include disease incidence treatment standards minimizing variability maximizing protocol adherence regulatory factors politics cultural considerations and ethical concerns While global spending on medicines is expected to grow three percent to five percent over the next five years spending in the ―pharmerging markets is expected to double1 The desire to access this fast-growing consumer base is the primary reason large pharmaceutical companies are increasing their clinical presence in emerging countries like China according to a report from investment bank-ing firm William Blair2 But small to midsize drug makers are also moving into emerging markets driven primarily by cost differentials China can offer as much as a 50 percent cost advantage compared to the United States or Europe as can Thailand the Philippines or Malaysia Most countries in Asia are at least 20 percent to 30 percent more cost-efficient than their western counterparts although there are notable exceptions such as South Korea and Japan Pharmaceutical industry sponsors are well-aware of the cost benefits of con-ducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the primary criteria by which sponsors should select the Asian regions in which they will con-duct their clinical trials Other important considerations for conducting a trial in Asia include disease incidence and treatment standards the potential to minimize variability and maximize protocol adherence regulatory and political factors and cultural and ethical considerations Disease Incidence and Treatment Standards With more than four billion people Asia offers sponsors a deep pool from which to draw clinical trial participants Indeed for sponsors conducting late-stage clinical trials in indications such as diabetes or cardiovascular dis-ease which can require thousands of patients establishing Asian trial sites to tap into that pool is critical The key is determining which Asian countries will best match each triallsquos unique patient requirements For sponsors most concerned with enrolling large numbers of patients into a trial highly populous countries such as India China Indonesia Japan the Philippines Thailand and Malaysia may be the best fit A recent CRO survey revealed that China is the leader in patient recruitment for the Asia-Pacific region followed by India and South Korea3 However sponsors need to be aware that the region is still expanding and a vast population does not equate to vast number of ICH GCP trained sites in the larger countries of China and India This can be a limiting factor in gaining access to the best sites for certain indications If on the other hand a sponsor is conducting a Phase I trial they should know that certain Asian countries have specific regulatory requirements for approval of a clinical trial application (CTA) that can add complexity to the process Others like Australia specialize in Phase I studies thanks to their fast and straightforward approval processes high-quality clinical practices and variety of many academic and commercial clinical trials centers4 Selecting an appropriate region for trial sites also depends on the incidence of the target disease in each countrylsquos population Highly-developed Asian countries have a higher incidence of diseases common in the West such as diabetes and cardiovascular disease while diseases such as tuberculosis are more common in Southeast Asia Some countries like India have diverse patient populations afflicted with diseases of both the developing and devel-oped world

When it comes to standards of care certain diseases like breast cancer lung cancer and diabetes are treated in much the same way in Asia as they would be treated in the Western world But for many other indications medical practice standards differ both from East to West and between the different Asian regions Sponsors seeking to meet specific market regulatory approval will need to mirror Western standards-of-care and as such should consider focusing trial sites to Australia New Zealand Singapore Taiwan Hong Kong and South Korea But differing standards of care can also provide unique opportunities Asia offers relatively more patients for first-line and second-line cancer drug evaluation than the West where such patient stores have been largely exhausted Risk Mitigation Sponsors should be prepared that some Asian trial sites ndash even those that have adapted Western-style medical practices ndash may require more assistance when it comes to following protocol and differentiating between medical practice and clinical research Not all Asian sites will have the infrastructure for a clinical trial A good CRO partner will work with a sponsor and site investigators to identify any infrastructure gap ndash such as a dedicated com-puter fax or freezer ndash and develop plans to ensure sites have the essentials to deliver a study efficiently Data integrity is another area that sponsors and CROs need to focus atten-tion It is critical to reduce variability by ensuring all monitoring and site staff are well trained Monitors need to understand how to identify and pro-actively resolve issues early on to minimize long-term issues with patient recruitment and data collection They should understand how to recognize early warning signals and not overreact to red herrings Investigators and site monitors also need to be trained in adverse event reporting to ensure that they meet local regional and global clinical trial safety reporting Sponsors must ensure monitoring visits are being conducted regularly as such visits make it more likely that recruitment and data integrity issues will be detected early and managed in a timely and effective manner Equally im-portant site staff needs to be as consistent as possible Finally sponsors need to implement a proven system for data reporting as variability in the data collection process may decrease the evaluable patient pool in the trial decreasing the sponsorlsquos chances to establish statistical sig-nificance or detect a rare safety signal Regulatory and Political Factors While regulatory bodies in South Korea and Taiwan as well as in Singapore have adopted an FDA-based approach each Asian country has its own regulatory idiosyncrasies In China for example reviews take on a project-based nature and sponsors should never assume that what worked in one application will be directly applicable to another No matter how harmo-nized Asia may appear the cookie-cutter approach simply doesnlsquot work However the fact that regulatory policies are still evolving in certain Asian countries provides a unique opportunity to sponsors the opportunity to in-fluence those policies There are no formal guidances or rules covering this topic but it is a real opportunity The recent economic downturn has prompted finance ministers in many countries to more closely analyze the cost of healthcare and they are realizing that good drugs can decrease their overall costs To ensure new drugs are available in their countries they have become increasingly eager to support clinical trials and they are engaging in conversations with sponsors about how approval pathways might be con-structed that take healthcare economics into consideration For example if a sponsor works closely with regulatory agencies to design the right preclinical and Phase I trials could a single Phase IIIII trial be sufficient for approval in some indications Are so many repetitive studies really necessary Is the requirement or guidance relevant to the current technology If a sponsor can prove to the government that a certain disease is currently costing 50 cents per person per day to treat and a new drug would change treatment paradigms and reduce that cost to a penny that is a compelling argument Not compelling enough to compromise safety or effi-cacy but compelling enough to expedite things along by partnering to agree upon the most appropriate pathway to approval While some regulatory agencies may not be as comfortable with the idea of allowing more flexibility and customization in the clinical trial design many are open to reducing bu-reaucracy and the associated time delays for CTA approval ndash particularly when there is potential to significantly impact health economics Govern-ments may provide commercialization support including funding to enable

19

development of new technologies and testing methods There may also be a higher priority given to certain CTA applications in the review queue Australia and Singapore have adopted a more simplified regulatory process and offer a notification scheme rather than formal review by the regulator South Korea and Taiwan are working to ease regulations and facilitate pro-tocol reviews Countries such as China have lengthy regulatory approval processes however there are some early indications that this may be de-creasing India is currently experiencing slower regulatory paths Interest-ingly some Asia Pacific countries that have historically been considered ―easy targets for clinical trials are increasing their regulations While there is much potential to collaborate with regulatory bodies in Asia these are not the only government agencies with which a sponsor must work Each country has its own policies on insurance regulations import licenses and other factors that affect a sponsorlsquos ability to establish and run clinical trial sites Each should be reviewed before selecting countries in which to establish trial sites Cultural and Ethical Considerations Language barriers can be easily overcome by CRO partners with offices across Asia and they are the least of a sponsorlsquos worries when it comes to cultural differences More pressing are issues such as the fact that some Asian researchers may believe that their participation in a trial gives them the right to publish data on their findings while sponsors require at least some degree of control over the publication of trial data Such issues are best managed by thorough communication prior to the start of enrolment In certain countries cultural factors may positively impact a trial Ethical factors may also weigh on a sponsorlsquos decision to conduct trials in certain Asian countries There are certain diseases that present a serious unmet medical need specifically within Asian populations such as foot-and-mouth disease and such indications obviously lend themselves to Asian clinical tri-als Yet if a sponsor has no plans to launch a drug in certain Asian countries perhaps because the populations of those countries would not be able to afford the drug then conducting clinical research in those countries may present ethical challenges For the most part however sponsors are eager to launch their drugs into the rapidly growing Asian healthcare markets and Asian clinical trials are necessary to support this endeavour As mentioned initially the cost advan-tages of conducting clinical trials in Asia cannot be ignored as both large and small companies face pressures on their bottom lines But while costs are important they are not the only consideration About the Authors Jessica Liu MD is the general manager for Clinical Operations in China and North Asia at INC Research She previously managed international pro-jects out of the European headquarters office for a global CRO in Brussels Belgium Prior to that she worked for 15 years in the Chinese affiliates of several global pharmaceutical companies overseeing clinical operations pro-ject management and medical affairs She conducted and managed Phase I-IV clinical studies across multiple therapeutic areas Dr Liu started her ca-reer as a resident physician in the endocrinology Department of the Peking Union Medical College Hospital (PUMCH) in Beijing China She received her Medical Doctorate from the University of Beijing (China) and has a Di-ploma in Pharmaceutical Medicine from the University of Basel (Switzerland) Dr Liu is based in Beijing She can be reached at jialiuincresearchcom Garth Tierney is the regional general manager for Australia and South East Asia for INC Research Garth previously founded and managed Trident Clinical Research a CRO based throughout Australia New Zealand and In-dia After 14 years of operation Trident was acquired by INC Research in June 2011 Prior to founding and managing Trident Clinical Research Garth worked for 8 years in the clinical research industry in various senior manage-ment and operational management roles across several companies including a global CRO an Australian pharmaceutical company and two global phar-maceutical companies Garth has a pharmacology (University of NSW) and business administration (University of Adelaide) background and worked in hypertension research for several years before joining the pharmaceutical industry During this time Garth published various papers and won the Whelan prize (awarded by ASCEPT) He can be reached at gtierneyincresearchcom

References 1 IMS IMS Institute Forecasts Global Spending on Medicines to Reach

Nearly $11 Trillion by 2015 May 18 2011 2 Wm Blair Pharmaceutical Outsourcing Industry Analysis Jun 10

2010 3 CyberMedia Research-BioSpectrum Asia-Pacific CRO Survey 2011 4 Clinical Trials Action Group Report Commonwealth of Australia

2011 CPTR Yields Progress New Six-Way Agreement has Goal to Speed Development of TB Drug Combinations November 11 2011 The Critical Path to TB Drug Regimens (CPTR) announced this November an innovative agreement between AstraZeneca Bayer Sanofi Tibotec TB Alliance and the World Health Organization to share information on tuber-culosis (TB) compounds within their respective drug pipelines to quickly identify and work together to develop the most promising TB drug regimen regardless of sponsor The partnership facilitates a more collaborative ap-proach to TB drug development with the objective to dramatically speed the development of shorter safer and more effective multi-drug treatments that are urgently needed to control the global TB pandemic The agreement will enable information-sharing around scientific and clinical data on TB compounds in clinical development By sharing data partners can identify opportunities to test their compounds in combination speeding availability of future TB regimens The collaboration includes the majority of global sponsors with TB drugs in clinical development Under the agree-ment if two or more organizations choose to work together to further de-velop a regimen they will enter into a separate arrangement that defines the rights and responsibilities of each party CPTR is working closely with regulatory scientists at the US Food and Drug Administration European Medicines Agency and other regulatory bodies in China India and some countries in Africa to develop the tools that are needed to allow testing of new TB drugs in combination cutting years off the development timeline Under the leadership of the Critical Path Institute CPTRlsquos Regulatory Science Consortium focuses on establishing consensus on preferred standards methods and tools for developing new TB drug regimens and obtaining official acceptance from international regulatory authorities Source TB Alliance Pfizer Establishes the Cambridge Research Center September 01 2011 Pfizer Inc recently announced it has entered into a 10-year lease agreement with the Massachusetts Institute of Technology (MIT) for more than 180000 square feet in a new building under development in Cambridge Massachusetts Located at 610 Main Street South in Kendall Square the new site will be the future location of Pfizerlsquos Cardiovascular Metabolic and En-docrine Disease (CVMED) and Neuroscience Research Units The reloca-tion of the two Research Units will substantially boost Pfizerlsquos footprint in Cambridge making it the second largest biopharmaceutical company in Massachusetts in terms of jobs ―We were very deliberate in our choice to move to Cambridge MA as a key part of our RampD strategy By expanding our presence in one of the worldlsquos great centers of scientific and medical innovation we will provide the best environment for our researchers to invent the next generation of medicines in areas of greatest need such as Alzheimerlsquos disease schizophrenia diabe-tes and cardiovascular disease said Rod MacKenzie senior vice president and head of PharmaTherapeutics Research amp Development ―We intend to foster productive formal and informal collaborations between our drug dis-covery experts and the outstanding scientists of Cambridgelsquos world class institutions This is a very exciting period in Pfizer RampD Source Pfizer

20

21

Continued from page 19hellip UK Academia Given Access to Selected AstraZeneca Compounds December 11 2011 Following a unique landmark agreement between AstraZeneca and the UK Medical Research Council (MRC) a wide range of compounds will be made available to UK medical researchers next year In a new type of collabora-tion academia will be granted access to 22 clinical and preclinical com-pounds developed by AstraZeneca Though making individual compounds available to external academic investigators is not unusual the breadth and open-innovation nature of this collaboration is unique because it provides unprecedented access to well characterised clinical and preclinical candidate molecules to investigators across all UK academic institutions There is significant unmet need in diseases both within and outside Astra-Zenecalsquos current research focus This collaboration builds on the sizable in-vestment made in developing candidate drugs within AstraZeneca by help-ing researchers to explore their potential more broadly with the hope that they will find new future medicines It also helps AstraZeneca explore areas of unmet patient need beyond its current disease area focus leveraging great external science in a way that is highly flexible and cost effective The New Opportunities Innovative Medicines Unit (iMed) in AstraZeneca has been central in establishing this research collaboration with the MRC and has acted as the interface with the other AstraZeneca iMeds to agree which compounds would be eligible Clive Morris VP New Opportunities iMed said that ―This Open Innova-tionlsquo approach brings together the strengths of AstraZeneca the MRC and UK Academia into what I hope will be a really potent mix bringing forward really exciting new ideas that could transform our understanding of some diseases It highlights an openness to new scientific thinking and also places external scientific collaboration right at the heart of what we do It is also an excellent way to broaden our portfolio of activities into new diseases for As-traZeneca leveraging the wealth of expertise across UK academia AstraZeneca and the MRC will invite preclinical and clinical research pro-posals from across the UK academic community to investigate the com-pounds in a range of diseases with a view to finding new treatment oppor-tunities AstraZeneca will work with the academic collaborators to develop the best scientific proposals and the MRC will select the highest quality pro-posals for funding awarding up to pound10 million in total to fund the success-ful proposals The successful applicants will then work collaboratively with AstraZeneca to deliver the studies David Brennan AstraZenecalsquos Chief Executive Officer said ―Innovative collaborations are playing a crucial role in finding ways to unlock the poten-tial of new treatments The UK has a strong heritage of research excellence in life sciences We hope that in sharing these valuable compounds with aca-demic scientists through the MRC new discoveries will be made by explor-ing additional uses of these compounds Source AstraZeneca WIPO ReSearch A Neglected Tropical Diseases Initiative October 26 2011 The World Intellectual Property Organization (WIPO) in an unprecedented collaboration with leading pharmaceutical companies and BIO Ventures for Global Health (BVGH) recently launched the WIPO Re Search a new consortium where public and private sector organizations share valuable in-tellectual property (IP) and expertise with the global health research commu-nity to promote development of new drugs vaccines and diagnostics to treat neglected tropical diseases malaria and tuberculosis In WIPO ReSearch Alnylam Pharmaceuticals AstraZeneca Eisai GlaxoS-mithKline MSD1 Novartis Pfizer and Sanofi are collaborating with WIPO BVGH the US National Institutes of Health (NIH) and multiple non-profit research organizations These include the California Institute of Technology the Center for World Health amp Medicine the Drugs for Ne-glected Diseases initiative Fundaccedilatildeo Oswaldo Cruz (Fiocruz) Massachu-setts Institute of Technology Medicines for Malaria Venture PATH the South African Medical Research Council the Swiss Tropical and Public Health Institute the University of California Berkeley and the University of Dundee (UK)

―WIPO ReSearch is a ground breaking example of how a multi-stakeholder coalition can put IP to work for social benefit said WIPO Director Gen-

eral Francis Gurry ―By joining WIPO ReSearch companies and researchers commit to making selected intellectual property assets available under roy-alty-free licenses to qualified researchers anywhere in the world for research and development on neglected tropical diseases malaria and tuberculosis This commitment should accelerate the development of medicines vaccines and diagnostics for these diseases

According to the World Health Organization (WHO) neglected tropical diseases today impair the lives of an estimated 1 billion people The WHO provides technical advice to WIPO on public health issues and research pri-orities as appropriate

By providing a searchable public database of available intellectual property assets information and resources WIPO ReSearch facilitates new partner-ships with organizations that conduct research on treatments for neglected tropical diseases malaria and tuberculosis

Membership in WIPO ReSearch as a user provider or supporter is open to all organizations that endorse adhere to and support the projectlsquos Guiding Principles These Guiding Principles include the commitment that IP li-censed via WIPO ReSearch will be licensed on a royalty-free basis for re-search and development on neglected tropical diseases in any country and on a royalty-free basis for sale of neglected tropical disease medicines in or to least developed countries

―The innovative pharmaceutical industry has an important part to play in addressing unmet medical needs and increasing access to our collective pro-prietary information will help advance research into treatment options for these underserved diseases said David Brennan CEO of AstraZeneca and President of the International Federation of Pharmaceutical Manufacturers amp Associations (IFPMA) ―WIPO ReSearch has the potential to make a real impact on global health which is why we are proud to make all patents owned by AstraZeneca available to this important initiative for promoting the research and development of treatments for neglected tropical diseases anywhere in the world

The WIPO ReSearch database includes a wide variety of contributions rele-vant to malaria tuberculosis and other neglected tropical diseases including individual compounds and associated data screening hits from compound libraries and expertise and know-how in pharmaceutical research and devel-opment In addition WIPO ReSearch offers the opportunity for neglected tropical disease researchers to work directly with scientists at pharmaceutical companies to advance RampD on these diseases As WIPO ReSearch moves forward offerings from current partners will continue to grow and new pro-viders are expected to join to add to the wealth of information compounds and services available

―NIH licenses its patents to enable the private sector to develop diagnostics therapeutics and devices that improve public health said National Insti-tutes of Health Director Francis S Collins MD PhD ―We want to ensure that our biological materials and patents covering treatments or vaccines for neglected tropical diseases as with all diseases are available as broadly as possible to speed the development of new products for people who are most burdened by these diseases and WIPO ReSearch helps us to do this

The founding eight pharmaceutical companies WIPO BVGH and NIH are joined by a distinguished group of globally recognized institutions as provid-ers potential users and supporters of WIPO ReSearch (see annex) BVGH will manage the WIPO ReSearch Partnership Hub which will facilitate rela-tionships between the pharmaceutical company providers and new users

―In our role as administrator of the WIPO ReSearch Partnership Hub BIO Ventures for Global Health is excited to bring these new opportunities to neglected disease researchers around the world to accelerate their work in this area of critical unmet need said Don Joseph Chief Operating Officer of BVGH ―As both present and future providers evaluate their internal data and IP with the goal to provide focused information which they believe will best serve the neglected tropical disease research and development commu-nity WIPO ReSearch will build on previous RampD investments to speed the development of drugs vaccines and diagnostics for the neglected diseases that disproportionately impact people living in resource-poor countries Source WIPO

Page 7: Bio Outsourcing Asia: Volume 1 Issue 3 2011.pdf · TB drug trials. Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies

7

8

Pfizerrsquos Open Innovation Strategy in Asia

Pfizer has been targeting Asian markets since the early 1950s and is one of the largest US-headquartered pharmaceutical companies in Asia One key issue is the disassociation between drug research and sales It has increas-ingly become apparent that the majority of RampD is conducted outside Asia while products are sold within target Asian markets The Asia Research Ac-celerator strategy was designed to address this concernmdashwith the goal of advancing drug discovery programs in Asia while complementing existing research efforts in North America and Europe (Pfizer Global Opportuni-ties 2010) Through this initiative Pfizer invests in Asia-based research efforts that may yield either new candidates for medicines or new pathways for technology development In 2010 Pfizer either launched or expanded collaborative ef-forts throughout the region with major Asia-based researchers such as WuXi AppTec Crown Bioscience Cumencor HD Biosciences and PharmaResources (Shanghai) Co as well as through academic partnerships with Fudan University Shanghai Jiao Tong University and Shanghai Institutes for Biological Sciences (Pfizer Global Opportunities 2010) This global network of industry and academic alliances is stimulating bio-medical advances into diseases that are more prevalent in Asia than in other parts of the world For example Pfizer currently has partnerships with the Korea Research Institute of Bioscience and Biotechnology and with the Asian Cancer Research Group (an independent not-for-profit company es-tablished by Pfizer Eli Lilly and Merck) to investigate treatments and to un-derstand certain types of gastric liver head and neck cancers that have higher prevalence rates in Asia than in places such as North America and Western Europe Here we see capacity development in emerging markets with the objective to address the health concerns of the Asian patient (Pfizer Global Opportunities 2010) An Open Source Strategy for New Drug Discovery In 2010 Eli Lilly and Company Merck and Pfizer Inc formed the Asian Cancer Research Group Inc (ACRG) an independent not-for-profit com-pany The ACRGlsquos formation represents a prime example of a growing trend in pre-competitive collaboration in which large pharmaceutical compa-nies combine their resources and expertise to rapidly increase knowledge of disease and disease processes The goal of the ACRG is to improve the knowledge of cancers prevalent in Asia and to accelerate drug discovery ef-forts by freely sharing the resulting data with the scientific community Initially the ACRG will focus on lung and gastric cancers two of the most common forms of cancer in Asia As many as 40 percent of patients with lung cancer in Asia demonstrate a mutation that is relatively rare in Western patients (EGFR mutation) This mutation has resulted in differences in re-sponse to some types of agents suggesting that a different research ap-proach is needed for developing treatments for certain patient populations Over the next two years Lilly Merck and Pfizer have committed to create one of the most extensive pharmacogenomic cancer databases known to date This database will be composed of data from approximately 2000 tis-sue samples from patients with lung and gastric cancer that will be made publicly available to researchers and over time further populated with clini-cal data from a longitudinal analysis of patients (Pfizer 2010) Ties to Academia In the past six years Pfizer RampD China has developed a large collaborative research network covering basic research institutes contract research or-ganizations and smaller biotech and pharmaceutical firms Pfizerlsquos China Research and Development Center a state-of-the-art facility that provides global drug development support capabilities research collaborations and strategic alliance opportunities to China and the Asian region is based in Shanghai It is the largest RampD center for a multinational pharmaceutical company in China The Center works alongside Chinese partners to develop the skills and talents of local scientists biostatisticians medical professionals pharmacists and others with expertise in life sciences The Center collabo-rates with leading academic researchers and top institutes in China including Peking University Tsinghua University Shanghai Jiaotong University and multiple institutes of the Chinese Academy of Sciences (Pfizer 2009) Pfizer signed a deal in July 2009 with the Shanghai Institute of Biological Sciences (Sibs) As part of this deal Pfizer will provide US$500000 each year for three years to fund early stage joint research in life sciences and new drug development between Sibs scientists and Pfizer scientists Scientists in basic research institutes learn drug development skills from industry collabo-

rators while Pfizer scientists learn from and gain access to ideas of the aca-demics Though the funding is small the joint research is supported by Pfizerlsquos global resources For example proposals are revised to become more feasible and workable The researchers also receive assistance on intel-lectual property managementmdashhence the attraction of the programme for Chinese life scientists (Jia 2010) ―Our choice of Shanghai Institutes for Biological Sciences as a research part-ner demonstrates our high regard for the scientific expertise and capabilities of SIBS said Martin Mackay President Pfizer Global Research and Devel-opment ―China is increasingly seen as a source for innovative healthcare research and we are proud of our ongoing investment in the outstanding science and people here Research projects will be selected and developed jointly by Pfizer and SIBS scientists (Pfizer 2009) In parallel Pfizer has made a significant commitment to South Korean re-searchers The company signed a memorandum of understanding with the countrys Ministry of Health and Welfare in 2007 agreeing to invest $300 million in RampD in the country At this time Pfizer formed a strategic re-search partnership with the Korea Research Institute of Bioscience and Biotechnology (Ray 2010) Pfizer and the Korea Research Institute for Bioscience and Biotechnology (KRIBB) expanded the earlier agreement in May of 2010 to jointly develop drugs for liver and gastric cancer and to in-vest a total of KRW 300 billion (U$240 million) from 2008 to 2012 (Moffat 2010) Continuing its focus on pharmacogenomics Pfizer also recently formed a research partnership with Samsung Medical Centre in Seoul for the analysis of Korean liver cancer patients in order to generate gene expression profiles for the condition (Adams 2010) Choi Han-Yong president of Samsung Medical Centre said ―We are pleased to have an opportunity to work with the worldlsquos number one phar-maceutical company Pfizer to better understand cancer in Korean patients with the goal of being able to send a new message of hope for patients with liver cancer across the world especially in Asia (Adams 2010) Centers for Therapeutic Innovation (CTI) Pfizer recently announced the formation of a network of academic collabo-rators to accelerate the translation of basic science into biologics-based drugs According to Mikael Dolsten MD PhD president of Pfizer Worldwide Research amp Development the Centers represents a novel open innovation paradigm combining the competencies of top academic research institutions with Pfizerlsquos leading drug development capabilities and research technologies (Pfizer 2010) The Centers for Therapeutic Innovation (CTI) will initially focus on collaborations within the US Pfizer expects to expand into Europe and Asia in 2012 Each Center will be governed by a Joint Steering Committee (JSC) comprised of Pfizer and Academic Medical Cen-ter (AMC) representatives who will provide leadership and evaluate the suc-cess of each program through discovery and early stage clinical develop-ment Through this innovation model Pfizer will have the opportunity to broaden its pipeline with novel candidate drugs to treat diseasesmdashaddressing unmet medical need (Pfizer 2010) A key aspect of the Centers for Therapeutic Innovation is Pfizerlsquos commit-ment to establishing local Centers at each partner site The partnerships will follow a venture capital-funded biotechnology start-up model whereby Pfizer funds preclinical and clinical development programs and offers equi-table intellectual property and ownership rights as well as broad rights to publication When programs are successful and advance according to the terms determined by a joint steering committee Pfizer will grant milestone payments and royalties (Rockefeller University 2011) ―The concept is to make a transition away from the vertically integrated RampD model into smaller decentralized groups of a truly global nature says Pfizerlsquos Anthony Coyle who is heading up the program out of the com-panys Cambridge Massachusetts facilities (Ratner 2011) The CTI will provide the primary investigator (PI) with funding (postdoctoral support) technical support (dedicated Pfizer personnel with expertise in protein sciences and development) and infrastructure (laboratory space libraries robots) (Pfizer 2011) The incentives operating model and goals for participating primary investigators and Pfizer colleagues will be designed to support achieving a positive Proof-of-Mechanism study in humans (PoM) PoM studies are small investigator-led clinical trials that typically involve 10 to 30 human subjects and have defined mechanistic or therapeutic endpoints (Pfizer 2011)

9

Partnerships Reaching Down the Value Chain In 2008 WuXi PharmaTech signed a three year deal with Pfizer Under the new collaboration agreement WuXi PharmaTech in partnership with Pfizer will establish ADME assays to provide in vitro screening services on com-pounds WuXi PharmaTech synthesizes for Pfizer (WuXi 2008) WuXi PharmaTech and Pfizer have previously collaborated on synthetic chemistry parallel medicinal chemistry ADME and bioanalytical services ―This new agreement further strengthens our already productive relationship with Pfizer one of our largest customers for many years and it is the direct result of our research capability and firm commitment to quality and customer sat-isfaction according to Ge Li PhD chairman and CEO of WuXi PharmaTech (GEN News 2008) In 2009 Pfizer and Crown Bioscience Inc (Crown) announced a collabora-tion to research and develop novel therapeutics for Asian cancers Under the terms of this agreement Crown will receive an upfront payment and re-search funding as well as milestone payments based on the achievement of preclinical and clinical goals The companies will work together to discover and advance multiple candidates for clinical development The work will take place at Crownlsquos new research facility located in Taicang (near Shang-hai) China (Pfizer 2009) ―I am delighted to be collaborating with Pfizerlsquos exceptional oncology group says Alex Wu CEO of Crown ―I am also very happy that Pfizer is focusing on and dedicating resources to address a very important unmet medical need for the Asian populations This new collaboration extends an already very successful partnership between Crown and Pfizer and further demonstrates Crownlsquos commitment to becoming an outstanding cancer re-search company in Asia (Pfizer 2009) Reaching out to the bottom of the pyramid MicuRx Pharmaceuticals Inc a biopharmaceutical company (with its presence in San Francisco US and Shanghai China) dedicated to the development of antibiotics to treat drug-resistant bacteria and Cumencor Pharmaceuticals Inc recently announced that the companies have entered a collaboration with Pfizer (NYSE PFE) to discover novel therapeutic agents to treat multi-drug resistant tuberculosis (MDR-TB) Cumencor Pharmaceuticals is a China-based biotechnology company applying MicuRxlsquos proprietary technology platform to discover and develop novel antibiotics for MDR-TB (PR Newswire April 2010) Under the terms of the agreement Pfizer will provide an upfront payment funding for the discovery and preclinical development of novel antibiotics to treat MDR-TB and payments linked to the development and commerciali-zation (including royalty payments on sales) of any antibiotics developed through the collaboration All collaboration research will be conducted at the ZhangJiang High-Tech Park in Shanghai China (PR Newswire April 2010) ―MicuRxlsquos novel approach to developing antibiotics for the treatment of drug-resistant bacteria and their existing technology know-how and exper-tise provide the basis for this collaboration said Steve Yang PhD Vice President and Head of Pfizers Asia Research and Development organiza-tion ―We expect that any compounds resulting from the collaboration will complement our portfolio of anti-infective agents and build our global pres-ence in the emerging pharmaceutical markets of Asia and beyond (PR

Newswire April 2010) Building Intellectual Capital in Asia through Open Innovation Pfizerlsquos open innovation strategy in Asia has a strong capacity development focusmdashnamely the development of intellectual capacity in Asia Beginning with a focus on health issues directly affecting the Asian patient Pfizer is not only devoting its resources to such diseases but through the ACRG will widely share pharmacogenomic information pertaining to lung and gastric cancers Supporting this endeavour are collaborations with the Korea Research Institute for Bioscience and Biotechnology (KRIBB) and the Samsung Medical Centre in Seoul Through its association with the Shanghai Institute of Biological Sciences (Sibs) and the planned Centers of Therapeutic Innovation Pfizer hopes to fund early stage joint discovery and clinical research in life sciences and new drug development Scientists in ba-sic research institutes will learn drug development skills from industry col-laborators while Pfizer scientists learn from and gain access to ideas of the academics Training opportunities in the area of intellectual property man-agement have been equally attractive to scientists Knowledge sharing knowledge development and exchange should support a vibrant life sciences sector in emerging markets in Asiamdashwith the goals of addressing chronic and neglected diseases that are endemic to Asia (Figure 1) References 1 Adams B Pfizer form liver cancer research partnership in Korea InPharm

July 2010 2 Jia H Though the funding is small the joint research is supported by

Pfizerlsquos global resources Chemistry World October-December 2010 3 MicuRx Pharmaceuticals and Cumencor Pharmaceuticals Partner with Pfizer

to Discover and Develop Antibiotics for Drug-Resistant Tuberculosis in China PR Newswire April 2010

4 Moffat B Global pharma eyeing Korean acquisitions as nation becomes test-bed Private Equity Korea May 2010

5 Pfizer And Crown Bioscience Announce A Collaboration To Research And Develop New Treatments For Asian Cancers Pfizer 2009 Pfizer Announces Partnership With Shanghai Institutes For Biological Sci-ences For Drug Discovery Activities BusinessWire July 2009

6 Pfizer Employs WuXi PharmaTech for In Vitro ADME Services GEN News November 2008

7 Pfizer Global Opportunities Annual Review 2010 8 Pfizer Launches Global Centers for Therapeutic Innovation a Network of

Research Partnerships With University of California San Francisco Pfizer November 2010

9 Publicly Available Genomic Database of Profiled Tumor Samples to Provide a Resource for Biomedical Researchers Worldwide Lillycom February 2010

10 Ratner M 2011 Pfizer reaches out to academiamdashagain Nature Biotechnol-ogy 29 3-4

11 Ray T PfizerSamsung Collaboration to Focus on PGx Strategies to Per-sonalize Liver Cancer Treatments in Korea Pharmacogenomics Reporter July 2010

12 Rockefeller joins Pfizerlsquos Global Centers For Therapeutic Innovation The Rockefeller University April 2011

13 WuXi PharmaTech Signs New Collaboration Agreement With Pfizer WuXi AppTec November 2008

14 wwwpfizercom 2011

Figure 1 A Broad Asian Open Innovation Strategy at Pfizer

Pfizerrsquos Open Source Strategy

Asian Cancer Research Group Inc (ACRG)

Reaching Down the Value Chain Alliance with WuXi

PharmaTech Alliance with Crown

Biosciences Alliance with MicuRx Pharmaceuticals

and Cumencor Pharmaceuticals

Ties to AcademiamdashIntellectual Capital Development

China Research and Development Center

Sibs Alliance KRIBB Alliance

Samsung Medical Centre Alliance CTI

10

11

A Networked Open Innovation Strategy The SpringFire Laboratory Network Technological complexities and market pressures have increased the degree to which companies are outsourcing to highly specialized technology driven companies However conventional outsourcing on a project-by-project ba-sis is strategically insufficient in this era A new type of structure-the virtual or networked outsourcing company provides access to customized solutions and is focused on long-term strategic partnering The formation of this new networked outsourcing company structure is driven by the need to access a broad range of expertise and the shift from narrowly focused specialized outsourcing companies to ―all inclusive outsourcing companies The virtual company is much more agile responsive to paradigm shifts and regulatory changes Accessible expertise can cover drug discovery from the earliest stage of lead compound identification and development through preclinical clinical phases manufacturing global registration post-marketing and line-extension studies The virtual outsourcing company enables access to a multidisciplinary team where the appropriate skill sets and expertise can be available at each stage of the biopharmaceutical value chain Appropriate teams are quickly assem-bled to manage issues as they arise In contrast large vertically integrated outsourcing companies can face many of the same problems associated with the fully integrated biopharmaceutical company including integration coor-dination and communication problems For each team the most suitable individuals from the most appropriate outsourcing firms within the network are selected on the basis of skills experience and fit with the project or product goals client and other individuals on the team Virtual outsourcing companies manage the various contracts budgets and relationships for their clients Lower project risk exists as dependency on a single supplier relation-ship is removed A virtual company must add value and not act simply as an intermediary be-tween contractors and large companies To operate successfully within the virtual environment requires strong industrial and academic networks effec-tive project management skills highly developed intellectual property man-agement skills and the ability to bring together partners to enable drug devel-opment Teams of experienced suppliers and experts are tailored to fulfill project or product requirements and are led by a dedicated senior project manager to ensure knowledge coordination and integration Forming the right partnerships and teams as well as managing operational processes in-crease the effectiveness of RampD outsourcing and ensure that the associated cost time and risk-sharing benefits are enjoyed by the Sponsor Models at Work The SpringFire Laboratory Network SpringFire Laboratory Network is a firm with the goal to match pharmaceu-tical medical device and biotech companies with clinical laboratories to pro-vide clinical trial testing solutions SpringFire Laboratory Network is unique in representing a network of independent non-competing high complexity laboratories collectively providing testing offerings to the clinical trial mar-ketplace The founders discovered that there was a strong desire by Sponsors and CROs to have choices in laboratories other than large laboratory companies with rigid requirements and little flexibility or educational institutions that were expensive and less responsive to external clients However there was little incentive for independent laboratories to pursue clinical trials testing given the large upfront costs to start a business development effort and the significantly different and lengthy sales cycle in clinical trials In an attempt to bridge the gap between the strong need for laboratory choices and the reluctance of independent laboratories to shoulder the bur-dens of clinical trials initiatives SpringFire Laboratory Network was estab-lished The network includes hand-selected independent laboratories to pro-vide testing services to clinical trial Sponsors and CROs The SpringFire team provides business development services for the network laboratories as well as expert knowledge around project management and clinical trial-specific operations The laboratories are non-competing and as such they share costs and best practices with one another without competing for the work ―The clinical trial marketplace has a need for esoteric laboratories to respond to its ever-expanding requests states Jim McClintic Managing Partner of SpringFire Laboratory Network

Selecting and Matching Network Participants SpringFire Laboratory Network is committed to a successful outcome for each drug or device development project The network of laboratories is made up of hand-selected ―Centers of Excellence The affiliated laborato-ries provide solutions in sub-specialized anatomical pathology and highly specialized clinical diagnostic testing along with state of the science micro-array testing SpringFirelsquos core team works with all affiliated laboratories to ensure their internal operations meet or exceed the unique regulatory and data manage-ment needs of clinical trials Each laboratory has demonstrated their abilities to provide customized quality results for clinical investigations on an inter-national basis The SpringFire affiliated laboratories are highly regarded in their specialized areas of testing expertise Each affiliate laboratory is evalu-ated to determine their fitness for work in the clinical trials arena A variety of characteristics are considered during a 2-day on site assessment including

Past clinical trial experience Quality laboratory processes Scientific and medical leadership Platform and technology maturity Project management Storage space options Data management capabilities Commitment to providing quality testing to clinical trials Sponsors

or CROs Since most of the laboratories are non-competing the matching process is usually based on the services requested and which lab provides those ser-vices In the event that more than one laboratory provides the requested tests or services SpringFire works with the laboratory that provides the most comprehensive set of tests or services In the event that no single lab performs all of the testing SpringFire will facilitate for two or more of the network laboratories to work together on a study Current Members of the Network SpringFire Laboratory Networklsquos current member laboratories are based in North America The Network provides testing services for both domestic and international study sites and is open to working with laboratories and sponsors around the globe Current members include

With a combined menu of more than 1000 specialty tests SpringFire offers Sponsors and CROs expertise and testing services in numerous therapeutic areas including anatomical pathology coagulation advanced lipids molecu-lar genetics and womenlsquos health The SpringFire network of laboratories col-lectively represent over 90 years of experience in the clinical marketplace while successfully completing more than 250 clinical trials Governance of the Network The SpringFire team is much more than business development The team works closely with each laboratory before during and after the study From the start the team works with each laboratory to build a competitive and timely proposal With the awarding of a contract the SpringFire team re-views and assists with negotiations and contract development During the study start-up phase the team facilitates on-going communications and lo-gistics to ensure the effective completion of tasks including routinely follow-ing up with both the laboratory and Sponsor or CRO to ensure good com-munication and suitable quality laboratory services When the study is con-cluded all parties are provided with a summary and an opportunity to share their experiences thoughts and ideas on the study and the laboratory ser-vices (Figure 1)

Laboratory Specialization

D-Path Dermatopathology

GI Pathology Gastrointestinal and liver pathology

ITxM Diagnostics Coagulation testing

Atherotech Diagnostics Advanced lipids

Baylor College of Medicinersquos Molecular Genetics Laboratories

Pharmacogenomics cytogenetics and medical genetic diagnostics

Baylor College of Medicinersquos Cancer Genetics Laboratory

Cancer-related genetics testing

12

Figure 1 Interactions in the SpringFire Laboratory Network Knowledge management is vital both to the effective working of the project team but also to the efficient transfer of information to and from the Sponsor as well as to external audiences such as site investigators regulatory authorities and potential licensees Outsourcing multiple stages of the drug product life cycle is critical for those companies that require access to expertise and technology in a rapidly chang-ing paradigm without the risk and cost associated with internal development Both young and small biotechnology companies and large traditional phar-maceutical companies can benefit from the model of drug discovery and development offered by organizations such as the SpringFire Laboratory Network

SPRINGFIRE

CORE TEAMPartner Selection

Best Practice Sharing

Baylor College of

Medicines

Cancer Genetics

Laboratory

GI Pathology

D-Path

ITxM Diagnostics

Baylor College of

Medicines

Molecular Genetics

Laboratories

Atherotech

Diagnostics

SPONSORCRO

PARTNER

MATCHING

GOVERNANCE

LESSON

KNOWLEDGE

TRANSFER

UPCOMING BIO PARTNERSHIPS ASIA 2012 CALENDAR

EDITORIAL

TRENDS AND ANALYSIS Articles that run 1500-2000 words and explore trends across the value chain describe opportunities in emerging Asian markets outline policy changes enabling partnerships in these markets and discuss the management of such partnerships

CASE STUDIES Company case studies that run 500-1000 words and explore partnerships across the drug discovery and development value chain

Submit text and electronic images with a resolution of 300 dpi or better We cannot guarantee placement in a particular issue The staff may schedule an entry to coincide with a certain issues editorial theme

COMPANY PROFILES Service provider profiles Send the following information Company name

contact information description services offered markets served and partnerships sought Also send a company logo

TECHNOLOGY PROFILES Technology licensing opportunities Send the following information Technology background areas of application competitive advantages stage of development intellectual property status partnerships sought and contact

information Please forward an image if applicable

NEWS RELEASES Updates on deals partnerships opportunities Send a press release and a company logo

MONTH FEATURE STORIES TRENDS AND ANALYSIS

CASE STUDIES

February 2012 New Models of Open Innovation in Asia

Business Model Analysis

Company Profiles

May 2012 Cluster Formation and Participation in Asia

Case Analysis Cluster Profiles

August 2012 Partnerships and Biopharmaceutical Capacity

Development in Asia

Case Analysis Company Profiles

November 2012 Transferring the Lessons from Asia to the Bottom of

the Pyramid

Lessons from India China Singapore

Middle East

Company Profiles

13

14

15

Convergence Innovation Development at the Intersection of Disciplines Organizations and Products Convergence Innovation is the paradigm where discovery and technology creation occur at the intersection of multiple disciplines and organizations Specifically convergence between the chemical biological cognitive physi-cal and information sciences is evident Firms and researchers will cross the boundaries between these disciplines to create technological value--finding solutions to address health environmental and energy challenges In parallel will be emergence of new models of collaboration to enable knowledge crea-tion and knowledge dissemination Central to Convergence Innovation will be a determination of the common value of knowledge versus the private value of knowledge across the associated disciplinesmdashwith the goal of ad-vancing and commercializing technology Levels of Convergence Convergence can be considered at three levelsmdashnamely convergence in the sources of knowledge for research convergence in organizational forms to enable technology development and convergence at the product level with the embodiment of knowledge in complementary products For example while nanotechnology research has been shown to have a dominant focus on material sciences additional analysis has demonstrated that nano-based research increasingly draws its knowledge from other areas (Porter and Youtie 2009) Specifically Porter and Youtie (2009) reveal that while nano-based publications center on materials science (including chemistry and physics) nano-based research also significantly involves many other fields including biomedical sciences computer sciences and mathematical sci-ences environmental sciences and engineering Citation patterns further show extensive referencing across macro-disciplinesmdashwith a preponderance of references in nano-related articles to research outside the macro-discipline in which the article is published (Porter and Youtie 2009) Conse-quently at this level of convergence the sharing and absorption of research across the involved disciplines will be necessary for downstream value crea-tion (Figure 1) Figure 1 Convergence at the Disciplinary (Knowledge Sources) Level At the next level of convergencemdashthe organizational levelmdashthe interaction between technological convergence and models of open innovation is be-coming apparent Licensing mergers acquisitions and strategic alliances such as joint ventures as well as new structures such as innovation networks and open innovation communities represent alternative strategies that may be used to acquire or access the necessary knowledge or assets for discovery and development From a convergence perspective the opportunity exists for a (public or private) stakeholder to not only interact with other (public andor private sector) stakeholders through simple one-to-one traditional collaborations but with many stakeholders through more complex mecha-nisms such as consortia crowdsourcing and other such open innovation communities For example the need for shared scientific expertise and large scale infrastructure in both nanotechnology and biotechnology is thought to be responsible for the development of networks spanning both fields (Figure 2) The pervasiveness of enabling technologies such as information and communications technology (ICT) have encouraged innovation net-works to increase in dominance and have lead to the blurring of organiza-tional boundaries among research organizations (Powell Koput and Smith-Doerr 1996 Roijakkers and Hagedoorn 2006) In such collaborations the opportunity to assume multiple roles exists to enable RampD including the collaborator who shares knowledge with one or many partners for the pur-poses of discovery or development the incubator who provides funding or expertise to other stakeholders to support venture development the enabler

who provides access to tools equipment large scale infrastructure or other services to support product development and the orchestrator who manages the network of partners with either the objective of knowledge creation or knowledge application (Melese Lin Chang and Cohen 2009) At this level of convergence there is the critical need to closely examine the management processes associated with collaboration as the collaborative strategies have not only grown in relevance but also in terms of impact and the number of participants involved

Collaboration Model

Access

Simple (One to One) Complex (Many to Many)

Collaboration Complexity

Figure 2 Convergence at the Organizational Level Open Access=Participation Open Closed Access=Exclusive Partnership

Simple=One to One Link between Partners Complex=Many Links between Several Partners PPP=Public Private Partnership JV=Joint Venture

The location in the above grid determines the extent to which the collabora-tion is open or closed and between one few or many partners

Finally the outcomes from any collaborative interaction will increasingly lead to convergence at the product level In this case multiple components or products will be packaged together to enhance the value over individual product offerings (Figure 3) Such bundled products will have the goal of simultaneously meeting several technological needs be it for biomedical treatment as seen in the use of nano-based diagnostics paired with therapeutics in agriculture or environmental applications as seen in the use of sensors to measure pathogens in food and the environment or the use of nanospheres to selectively detect harmful materials in water and then used for detoxification and in the creation of novel energy technologies as seen in the use of catalysts in particles for biodiesel synthesis to name a few (Schmidt 2007) At the product level effective intellectual property man-agement strategies and coordination between regulatory agencies will be paramount

Figure 3 Convergence at the Product Level

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

COGNITIVE

PPP JV

MampA

Consortium Innovation Network

Crowdsourcing Open Source Network

Licensing

Proprietary Open Innovation Community

Closed

Open

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

Nanomaterials

Nanodevices

Nanoelectronics

Nanosensors

Bioinformatics

Biosensors

Tissue Engineering

Drug Delivery

Diagnostics

Drug Delivery

Chemical Catalysis

Nanofiltration

Chemical Sensors

Neuron Network

Prostheses GenerationCOGNITIVE

16

The Impact of Convergence At each level of convergence there are several complexities that either im-pact the management of stakeholder interaction or the management of the knowledge based assets generated through such interactions For example given the expected intersection between disciplines knowledge complexities including varied types (such as biological information and biological struc-tures chemical knowledge and structures physical knowledge and struc-tures) and forms of knowledge (disembodied and embodied) will drive the need for a common platform for knowledge integration validation and standardization Beyond integration of knowledge it is expected that teams of biological chemical and physical scientists will increasingly form to de-velop and bridge together the necessary tools and equipment for RampD ac-tivities (Ideker Galitski and Hood 2001 Kitano 2001 Kautt Walsh and Bittner 2007 Boardman 2008 Boardman and Ponomarioy 2009) We must also consider the impact of convergence on the downstream rights to de-velop products Lemley (2005) discusses that unlike other industries in which patentees are actual or potential participants in the downstream mar-ket a significant number of corporate patentees will increasingly own rights not just in the industry in which they participate but other industries as well Analysts fear that over-patenting alongside the large shadow of such patents could not only fragment technology but could discourage stakeholders in a number of industries from attempting to develop products incorporating infringing technologies (Lemley 2005) It is important to consider that as multiple disciplines increasingly working together each discipline will have its own priorities and conventions regarding knowledge dissemination and knowledge appropriation (Hilgartner 1996) One discipline may signal its success during knowledge generation through the enclosure and the sale of disembodied knowledge Another discipline may measure its success exclu-sively by the embodiment of knowledge in medical products (Hilgartner 1996) While patent pools are a suggested solution to the possible patent holdups (DlsquoSilva 2009) it has been proposed that as has occurred in the genomics arena innovation-based networks with rules regulating the devel-opment and appropriation of critical technology building blocks could not only circumvent the product development and legal problems of the past but will also bring together the requisite intellectual and physical capital (DlsquoSilva 2009 Allarakhia and Walsh 2010) A Template for Managing Interactions and Knowledge-Based Assets Governance strategies must seek to align the incentives for participation in collaborative activities for multiple stakeholders The use of rules to define actions communication mechanisms used to enable and monitor actions and to share the outcomes are all critical to ensure that goals are achieved Structure and Roles It is expected that the chosen collaboration modemdashone to one one to many or many to many collaboration and objectives set for the collaborationmdashpooling of assets generation of new assets andor pol-icy creation will impact the type of participants that will join The organiza-tional structure chosen will be determined in part by the attributes of the resources to be contributed or developedmdashinformation supporting tools technology as well as the location of participantsmdashwith linkages established through physical clustering or virtual networking Thereafter the organiza-tion of participants may be a function of technological expertise geographic location or project-based management expertise Resource Types and Outcomes Participants will contribute several inputs including funding equipment and human capital The resulting outcomes include data materials tools and technology Facilities store artifacts in or-der to make them accessible Traditional facilities have been libraries and archives containing books journals and papers New technologies have made electronic distributed information possible Artifacts are discreet ob-servable nameable representations of ideas such as articles research notes books databases maps computer files and web pages (Foray 2004 Hess and Ostrom 2006) In the context of nanotechnology databases material and model repositories accessible laboratories that aggregate equipment and tools for nanotechnology development are varied options to manage the outputs Hence any outcomes analysis should seek to determine the success of collaboration including the amount of data produced and accessed the material generated housed and accessed the tools created and used and the technology produced by participants Governance Internal rules or mechanisms used to promote cooperative be-haviour can include formalizing the requirements to join the initiative en-suring frequent interactions encouraging communication between partici-pants monitoring and punishing defection and setting the boundary for access to resources An authority that regulates access to resources can en-sure that a fair and efficient governance strategy is used (Ostrom Gardner and Walker 1994) While access generally refers to disembodied assets such

as data extraction can involve the removal andor use of physical materials models and tools Knowledge use and access can be governed by the fol-lowing rules sharing with partners only (closed access) sharing with part-ners and the public at large (open access) and intellectual property assign-ment potentially on information materials tools and technology with the specification of rights to use based on licensee type geography or target market for product launch Creating Value The Path Forward in The path forward will require the creation of supporting policies encourag-ing multi-disciplinary collaboration At a national level several governments have recognized the importance of innovation networks to develop capacity and compete on an international level Consequently policies are now pro-viding more RampD funding and incentives encouraging the formation of multi-sectoral networks (Corley Boardman and Bozeman 2006) New prod-ucts of convergent technologies will necessitate cooperation among regula-tory bodies with the coordination of information flow coordination of du-ties and increased harmonization between international regulatory bodies (Castle et al 2006 Drezek and Tour 2010) To avoid the mistakes of the past policies outlining guidelines for the management of intellectual prop-erty rights can ensure that stakeholders will correctly assess the common value of knowledge versus the private value of knowledgemdashresulting in the transition from open knowledge to appropriated knowledge with the objec-tive of pursuing (unilateral or collaborative) downstream product develop-ment References 1) Allarakhia M amp Walsh S Managing knowledge assets under conditions of radical change The case of the pharmaceutical industry Technovation 31 105-117 (2011) 2) Boardman P Beyond the stars The impact of affiliation with university biotechnology centers on the industrial involvement of university scientists Technovation 28 291-297 (2008) 3) Boardman Pamp Ponomarioy B University researchers working with pri-vate companies Technovation 29 142-153 (2009) 4) Castle D Loeppky R Saner M Cline C Dalgleish J amp Wojnik V Convergence in Biotechnology Innovation Case Studies and Implications for Regulation (University of Guelph Guelph 2006) 5) Corley EA Boardman PC amp Bozeman B Design and the manage-ment of multi-institutional research collaborations Theoretical implications from two case studies Research Policy 35 975-993 (2006) 6) Drezek RA amp Tour JM Is Nanotechnology Too Broad to Practice Nature Nanotechnology 5 168-169 (2010) 7) DlsquoSilva J Pools thickets and open source nanotechnology European Intellectual Property Review 31 300-306 (2009) 8) Foray D The Economics of Knowledge (MIT Press Cambridge 2004) 9) Hess C amp Ostrom E Understanding Knowledge as a Commons From Theory to Practice (MIT Press Cambridge 2006) 10) Ideker TT Galitski L amp Hood LE A new approach to decoding life Systems biology Annual Review Genomics and Human Genetics 2 343-372 (2001) 11) Kautt M Walsh S amp Bittner K Global distribution of microndashnano technology and fabrication centers A portfolio analysis approach Technol-ogy Forecasting and Social Change 74 1697-1717 (2007) 12) Kitano H Systems biology Toward systems-level understanding of bio-logical systems Foundation of Systems Biology 1-29 (MIT Press Cam-bridge 2001) 13) Lemley MA Patenting nanotechnology Stanford Law Review 58 601-630 (2005) 14) Melese T Lin SM Chang JL amp Cohen NH Open innovation net-works between academia and industry an imperative for breakthrough therapies Nature Medicine 15 502-507 (2009) 15) Ostrom E Gardner R amp Walker J Rules Games and Common-Pool Resources (The University of Michigan Press Ann Arbor 1994) 16) Porter AL amp Youtie J How interdisciplinary is nanotechnology Jour-nal of Nanoparticle Research 11 1023-1041 (2009) 17) Powell WW Koput KK amp Smith-Doerr L Inter-organizational col-laboration and the locus of innovation Network of learning in biotechnol-ogy Administrative Science Quarterly 41 116-145 (1996) 18) Roijakkers N amp Hagedoorn Inter-firm RampD partnering in pharmaceu-tical biotechnology since 1975 Trends patterns and networks J Research

Policy 35 431minus446 (2006) 19) Schmidt K Project on Emerging Nanotechnologies (2007)

17

18

Beyond Cost-Savings Hidden Considerations for Conducting Clinical Trials in Asia

By Jessica Liu General Manager ChinaNorth Asia INC Research and Garth Tierney Regional General Manager Australia and South East Asia INC Research

Abstract Pharmaceutical industry sponsors are well-aware of the cost bene-fits of conducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the pri-mary criteria by which sponsors should select the Asian regions in which they will conduct their clinical trials Other important considerations include disease incidence treatment standards minimizing variability maximizing protocol adherence regulatory factors politics cultural considerations and ethical concerns While global spending on medicines is expected to grow three percent to five percent over the next five years spending in the ―pharmerging markets is expected to double1 The desire to access this fast-growing consumer base is the primary reason large pharmaceutical companies are increasing their clinical presence in emerging countries like China according to a report from investment bank-ing firm William Blair2 But small to midsize drug makers are also moving into emerging markets driven primarily by cost differentials China can offer as much as a 50 percent cost advantage compared to the United States or Europe as can Thailand the Philippines or Malaysia Most countries in Asia are at least 20 percent to 30 percent more cost-efficient than their western counterparts although there are notable exceptions such as South Korea and Japan Pharmaceutical industry sponsors are well-aware of the cost benefits of con-ducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the primary criteria by which sponsors should select the Asian regions in which they will con-duct their clinical trials Other important considerations for conducting a trial in Asia include disease incidence and treatment standards the potential to minimize variability and maximize protocol adherence regulatory and political factors and cultural and ethical considerations Disease Incidence and Treatment Standards With more than four billion people Asia offers sponsors a deep pool from which to draw clinical trial participants Indeed for sponsors conducting late-stage clinical trials in indications such as diabetes or cardiovascular dis-ease which can require thousands of patients establishing Asian trial sites to tap into that pool is critical The key is determining which Asian countries will best match each triallsquos unique patient requirements For sponsors most concerned with enrolling large numbers of patients into a trial highly populous countries such as India China Indonesia Japan the Philippines Thailand and Malaysia may be the best fit A recent CRO survey revealed that China is the leader in patient recruitment for the Asia-Pacific region followed by India and South Korea3 However sponsors need to be aware that the region is still expanding and a vast population does not equate to vast number of ICH GCP trained sites in the larger countries of China and India This can be a limiting factor in gaining access to the best sites for certain indications If on the other hand a sponsor is conducting a Phase I trial they should know that certain Asian countries have specific regulatory requirements for approval of a clinical trial application (CTA) that can add complexity to the process Others like Australia specialize in Phase I studies thanks to their fast and straightforward approval processes high-quality clinical practices and variety of many academic and commercial clinical trials centers4 Selecting an appropriate region for trial sites also depends on the incidence of the target disease in each countrylsquos population Highly-developed Asian countries have a higher incidence of diseases common in the West such as diabetes and cardiovascular disease while diseases such as tuberculosis are more common in Southeast Asia Some countries like India have diverse patient populations afflicted with diseases of both the developing and devel-oped world

When it comes to standards of care certain diseases like breast cancer lung cancer and diabetes are treated in much the same way in Asia as they would be treated in the Western world But for many other indications medical practice standards differ both from East to West and between the different Asian regions Sponsors seeking to meet specific market regulatory approval will need to mirror Western standards-of-care and as such should consider focusing trial sites to Australia New Zealand Singapore Taiwan Hong Kong and South Korea But differing standards of care can also provide unique opportunities Asia offers relatively more patients for first-line and second-line cancer drug evaluation than the West where such patient stores have been largely exhausted Risk Mitigation Sponsors should be prepared that some Asian trial sites ndash even those that have adapted Western-style medical practices ndash may require more assistance when it comes to following protocol and differentiating between medical practice and clinical research Not all Asian sites will have the infrastructure for a clinical trial A good CRO partner will work with a sponsor and site investigators to identify any infrastructure gap ndash such as a dedicated com-puter fax or freezer ndash and develop plans to ensure sites have the essentials to deliver a study efficiently Data integrity is another area that sponsors and CROs need to focus atten-tion It is critical to reduce variability by ensuring all monitoring and site staff are well trained Monitors need to understand how to identify and pro-actively resolve issues early on to minimize long-term issues with patient recruitment and data collection They should understand how to recognize early warning signals and not overreact to red herrings Investigators and site monitors also need to be trained in adverse event reporting to ensure that they meet local regional and global clinical trial safety reporting Sponsors must ensure monitoring visits are being conducted regularly as such visits make it more likely that recruitment and data integrity issues will be detected early and managed in a timely and effective manner Equally im-portant site staff needs to be as consistent as possible Finally sponsors need to implement a proven system for data reporting as variability in the data collection process may decrease the evaluable patient pool in the trial decreasing the sponsorlsquos chances to establish statistical sig-nificance or detect a rare safety signal Regulatory and Political Factors While regulatory bodies in South Korea and Taiwan as well as in Singapore have adopted an FDA-based approach each Asian country has its own regulatory idiosyncrasies In China for example reviews take on a project-based nature and sponsors should never assume that what worked in one application will be directly applicable to another No matter how harmo-nized Asia may appear the cookie-cutter approach simply doesnlsquot work However the fact that regulatory policies are still evolving in certain Asian countries provides a unique opportunity to sponsors the opportunity to in-fluence those policies There are no formal guidances or rules covering this topic but it is a real opportunity The recent economic downturn has prompted finance ministers in many countries to more closely analyze the cost of healthcare and they are realizing that good drugs can decrease their overall costs To ensure new drugs are available in their countries they have become increasingly eager to support clinical trials and they are engaging in conversations with sponsors about how approval pathways might be con-structed that take healthcare economics into consideration For example if a sponsor works closely with regulatory agencies to design the right preclinical and Phase I trials could a single Phase IIIII trial be sufficient for approval in some indications Are so many repetitive studies really necessary Is the requirement or guidance relevant to the current technology If a sponsor can prove to the government that a certain disease is currently costing 50 cents per person per day to treat and a new drug would change treatment paradigms and reduce that cost to a penny that is a compelling argument Not compelling enough to compromise safety or effi-cacy but compelling enough to expedite things along by partnering to agree upon the most appropriate pathway to approval While some regulatory agencies may not be as comfortable with the idea of allowing more flexibility and customization in the clinical trial design many are open to reducing bu-reaucracy and the associated time delays for CTA approval ndash particularly when there is potential to significantly impact health economics Govern-ments may provide commercialization support including funding to enable

19

development of new technologies and testing methods There may also be a higher priority given to certain CTA applications in the review queue Australia and Singapore have adopted a more simplified regulatory process and offer a notification scheme rather than formal review by the regulator South Korea and Taiwan are working to ease regulations and facilitate pro-tocol reviews Countries such as China have lengthy regulatory approval processes however there are some early indications that this may be de-creasing India is currently experiencing slower regulatory paths Interest-ingly some Asia Pacific countries that have historically been considered ―easy targets for clinical trials are increasing their regulations While there is much potential to collaborate with regulatory bodies in Asia these are not the only government agencies with which a sponsor must work Each country has its own policies on insurance regulations import licenses and other factors that affect a sponsorlsquos ability to establish and run clinical trial sites Each should be reviewed before selecting countries in which to establish trial sites Cultural and Ethical Considerations Language barriers can be easily overcome by CRO partners with offices across Asia and they are the least of a sponsorlsquos worries when it comes to cultural differences More pressing are issues such as the fact that some Asian researchers may believe that their participation in a trial gives them the right to publish data on their findings while sponsors require at least some degree of control over the publication of trial data Such issues are best managed by thorough communication prior to the start of enrolment In certain countries cultural factors may positively impact a trial Ethical factors may also weigh on a sponsorlsquos decision to conduct trials in certain Asian countries There are certain diseases that present a serious unmet medical need specifically within Asian populations such as foot-and-mouth disease and such indications obviously lend themselves to Asian clinical tri-als Yet if a sponsor has no plans to launch a drug in certain Asian countries perhaps because the populations of those countries would not be able to afford the drug then conducting clinical research in those countries may present ethical challenges For the most part however sponsors are eager to launch their drugs into the rapidly growing Asian healthcare markets and Asian clinical trials are necessary to support this endeavour As mentioned initially the cost advan-tages of conducting clinical trials in Asia cannot be ignored as both large and small companies face pressures on their bottom lines But while costs are important they are not the only consideration About the Authors Jessica Liu MD is the general manager for Clinical Operations in China and North Asia at INC Research She previously managed international pro-jects out of the European headquarters office for a global CRO in Brussels Belgium Prior to that she worked for 15 years in the Chinese affiliates of several global pharmaceutical companies overseeing clinical operations pro-ject management and medical affairs She conducted and managed Phase I-IV clinical studies across multiple therapeutic areas Dr Liu started her ca-reer as a resident physician in the endocrinology Department of the Peking Union Medical College Hospital (PUMCH) in Beijing China She received her Medical Doctorate from the University of Beijing (China) and has a Di-ploma in Pharmaceutical Medicine from the University of Basel (Switzerland) Dr Liu is based in Beijing She can be reached at jialiuincresearchcom Garth Tierney is the regional general manager for Australia and South East Asia for INC Research Garth previously founded and managed Trident Clinical Research a CRO based throughout Australia New Zealand and In-dia After 14 years of operation Trident was acquired by INC Research in June 2011 Prior to founding and managing Trident Clinical Research Garth worked for 8 years in the clinical research industry in various senior manage-ment and operational management roles across several companies including a global CRO an Australian pharmaceutical company and two global phar-maceutical companies Garth has a pharmacology (University of NSW) and business administration (University of Adelaide) background and worked in hypertension research for several years before joining the pharmaceutical industry During this time Garth published various papers and won the Whelan prize (awarded by ASCEPT) He can be reached at gtierneyincresearchcom

References 1 IMS IMS Institute Forecasts Global Spending on Medicines to Reach

Nearly $11 Trillion by 2015 May 18 2011 2 Wm Blair Pharmaceutical Outsourcing Industry Analysis Jun 10

2010 3 CyberMedia Research-BioSpectrum Asia-Pacific CRO Survey 2011 4 Clinical Trials Action Group Report Commonwealth of Australia

2011 CPTR Yields Progress New Six-Way Agreement has Goal to Speed Development of TB Drug Combinations November 11 2011 The Critical Path to TB Drug Regimens (CPTR) announced this November an innovative agreement between AstraZeneca Bayer Sanofi Tibotec TB Alliance and the World Health Organization to share information on tuber-culosis (TB) compounds within their respective drug pipelines to quickly identify and work together to develop the most promising TB drug regimen regardless of sponsor The partnership facilitates a more collaborative ap-proach to TB drug development with the objective to dramatically speed the development of shorter safer and more effective multi-drug treatments that are urgently needed to control the global TB pandemic The agreement will enable information-sharing around scientific and clinical data on TB compounds in clinical development By sharing data partners can identify opportunities to test their compounds in combination speeding availability of future TB regimens The collaboration includes the majority of global sponsors with TB drugs in clinical development Under the agree-ment if two or more organizations choose to work together to further de-velop a regimen they will enter into a separate arrangement that defines the rights and responsibilities of each party CPTR is working closely with regulatory scientists at the US Food and Drug Administration European Medicines Agency and other regulatory bodies in China India and some countries in Africa to develop the tools that are needed to allow testing of new TB drugs in combination cutting years off the development timeline Under the leadership of the Critical Path Institute CPTRlsquos Regulatory Science Consortium focuses on establishing consensus on preferred standards methods and tools for developing new TB drug regimens and obtaining official acceptance from international regulatory authorities Source TB Alliance Pfizer Establishes the Cambridge Research Center September 01 2011 Pfizer Inc recently announced it has entered into a 10-year lease agreement with the Massachusetts Institute of Technology (MIT) for more than 180000 square feet in a new building under development in Cambridge Massachusetts Located at 610 Main Street South in Kendall Square the new site will be the future location of Pfizerlsquos Cardiovascular Metabolic and En-docrine Disease (CVMED) and Neuroscience Research Units The reloca-tion of the two Research Units will substantially boost Pfizerlsquos footprint in Cambridge making it the second largest biopharmaceutical company in Massachusetts in terms of jobs ―We were very deliberate in our choice to move to Cambridge MA as a key part of our RampD strategy By expanding our presence in one of the worldlsquos great centers of scientific and medical innovation we will provide the best environment for our researchers to invent the next generation of medicines in areas of greatest need such as Alzheimerlsquos disease schizophrenia diabe-tes and cardiovascular disease said Rod MacKenzie senior vice president and head of PharmaTherapeutics Research amp Development ―We intend to foster productive formal and informal collaborations between our drug dis-covery experts and the outstanding scientists of Cambridgelsquos world class institutions This is a very exciting period in Pfizer RampD Source Pfizer

20

21

Continued from page 19hellip UK Academia Given Access to Selected AstraZeneca Compounds December 11 2011 Following a unique landmark agreement between AstraZeneca and the UK Medical Research Council (MRC) a wide range of compounds will be made available to UK medical researchers next year In a new type of collabora-tion academia will be granted access to 22 clinical and preclinical com-pounds developed by AstraZeneca Though making individual compounds available to external academic investigators is not unusual the breadth and open-innovation nature of this collaboration is unique because it provides unprecedented access to well characterised clinical and preclinical candidate molecules to investigators across all UK academic institutions There is significant unmet need in diseases both within and outside Astra-Zenecalsquos current research focus This collaboration builds on the sizable in-vestment made in developing candidate drugs within AstraZeneca by help-ing researchers to explore their potential more broadly with the hope that they will find new future medicines It also helps AstraZeneca explore areas of unmet patient need beyond its current disease area focus leveraging great external science in a way that is highly flexible and cost effective The New Opportunities Innovative Medicines Unit (iMed) in AstraZeneca has been central in establishing this research collaboration with the MRC and has acted as the interface with the other AstraZeneca iMeds to agree which compounds would be eligible Clive Morris VP New Opportunities iMed said that ―This Open Innova-tionlsquo approach brings together the strengths of AstraZeneca the MRC and UK Academia into what I hope will be a really potent mix bringing forward really exciting new ideas that could transform our understanding of some diseases It highlights an openness to new scientific thinking and also places external scientific collaboration right at the heart of what we do It is also an excellent way to broaden our portfolio of activities into new diseases for As-traZeneca leveraging the wealth of expertise across UK academia AstraZeneca and the MRC will invite preclinical and clinical research pro-posals from across the UK academic community to investigate the com-pounds in a range of diseases with a view to finding new treatment oppor-tunities AstraZeneca will work with the academic collaborators to develop the best scientific proposals and the MRC will select the highest quality pro-posals for funding awarding up to pound10 million in total to fund the success-ful proposals The successful applicants will then work collaboratively with AstraZeneca to deliver the studies David Brennan AstraZenecalsquos Chief Executive Officer said ―Innovative collaborations are playing a crucial role in finding ways to unlock the poten-tial of new treatments The UK has a strong heritage of research excellence in life sciences We hope that in sharing these valuable compounds with aca-demic scientists through the MRC new discoveries will be made by explor-ing additional uses of these compounds Source AstraZeneca WIPO ReSearch A Neglected Tropical Diseases Initiative October 26 2011 The World Intellectual Property Organization (WIPO) in an unprecedented collaboration with leading pharmaceutical companies and BIO Ventures for Global Health (BVGH) recently launched the WIPO Re Search a new consortium where public and private sector organizations share valuable in-tellectual property (IP) and expertise with the global health research commu-nity to promote development of new drugs vaccines and diagnostics to treat neglected tropical diseases malaria and tuberculosis In WIPO ReSearch Alnylam Pharmaceuticals AstraZeneca Eisai GlaxoS-mithKline MSD1 Novartis Pfizer and Sanofi are collaborating with WIPO BVGH the US National Institutes of Health (NIH) and multiple non-profit research organizations These include the California Institute of Technology the Center for World Health amp Medicine the Drugs for Ne-glected Diseases initiative Fundaccedilatildeo Oswaldo Cruz (Fiocruz) Massachu-setts Institute of Technology Medicines for Malaria Venture PATH the South African Medical Research Council the Swiss Tropical and Public Health Institute the University of California Berkeley and the University of Dundee (UK)

―WIPO ReSearch is a ground breaking example of how a multi-stakeholder coalition can put IP to work for social benefit said WIPO Director Gen-

eral Francis Gurry ―By joining WIPO ReSearch companies and researchers commit to making selected intellectual property assets available under roy-alty-free licenses to qualified researchers anywhere in the world for research and development on neglected tropical diseases malaria and tuberculosis This commitment should accelerate the development of medicines vaccines and diagnostics for these diseases

According to the World Health Organization (WHO) neglected tropical diseases today impair the lives of an estimated 1 billion people The WHO provides technical advice to WIPO on public health issues and research pri-orities as appropriate

By providing a searchable public database of available intellectual property assets information and resources WIPO ReSearch facilitates new partner-ships with organizations that conduct research on treatments for neglected tropical diseases malaria and tuberculosis

Membership in WIPO ReSearch as a user provider or supporter is open to all organizations that endorse adhere to and support the projectlsquos Guiding Principles These Guiding Principles include the commitment that IP li-censed via WIPO ReSearch will be licensed on a royalty-free basis for re-search and development on neglected tropical diseases in any country and on a royalty-free basis for sale of neglected tropical disease medicines in or to least developed countries

―The innovative pharmaceutical industry has an important part to play in addressing unmet medical needs and increasing access to our collective pro-prietary information will help advance research into treatment options for these underserved diseases said David Brennan CEO of AstraZeneca and President of the International Federation of Pharmaceutical Manufacturers amp Associations (IFPMA) ―WIPO ReSearch has the potential to make a real impact on global health which is why we are proud to make all patents owned by AstraZeneca available to this important initiative for promoting the research and development of treatments for neglected tropical diseases anywhere in the world

The WIPO ReSearch database includes a wide variety of contributions rele-vant to malaria tuberculosis and other neglected tropical diseases including individual compounds and associated data screening hits from compound libraries and expertise and know-how in pharmaceutical research and devel-opment In addition WIPO ReSearch offers the opportunity for neglected tropical disease researchers to work directly with scientists at pharmaceutical companies to advance RampD on these diseases As WIPO ReSearch moves forward offerings from current partners will continue to grow and new pro-viders are expected to join to add to the wealth of information compounds and services available

―NIH licenses its patents to enable the private sector to develop diagnostics therapeutics and devices that improve public health said National Insti-tutes of Health Director Francis S Collins MD PhD ―We want to ensure that our biological materials and patents covering treatments or vaccines for neglected tropical diseases as with all diseases are available as broadly as possible to speed the development of new products for people who are most burdened by these diseases and WIPO ReSearch helps us to do this

The founding eight pharmaceutical companies WIPO BVGH and NIH are joined by a distinguished group of globally recognized institutions as provid-ers potential users and supporters of WIPO ReSearch (see annex) BVGH will manage the WIPO ReSearch Partnership Hub which will facilitate rela-tionships between the pharmaceutical company providers and new users

―In our role as administrator of the WIPO ReSearch Partnership Hub BIO Ventures for Global Health is excited to bring these new opportunities to neglected disease researchers around the world to accelerate their work in this area of critical unmet need said Don Joseph Chief Operating Officer of BVGH ―As both present and future providers evaluate their internal data and IP with the goal to provide focused information which they believe will best serve the neglected tropical disease research and development commu-nity WIPO ReSearch will build on previous RampD investments to speed the development of drugs vaccines and diagnostics for the neglected diseases that disproportionately impact people living in resource-poor countries Source WIPO

Page 8: Bio Outsourcing Asia: Volume 1 Issue 3 2011.pdf · TB drug trials. Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies

8

Pfizerrsquos Open Innovation Strategy in Asia

Pfizer has been targeting Asian markets since the early 1950s and is one of the largest US-headquartered pharmaceutical companies in Asia One key issue is the disassociation between drug research and sales It has increas-ingly become apparent that the majority of RampD is conducted outside Asia while products are sold within target Asian markets The Asia Research Ac-celerator strategy was designed to address this concernmdashwith the goal of advancing drug discovery programs in Asia while complementing existing research efforts in North America and Europe (Pfizer Global Opportuni-ties 2010) Through this initiative Pfizer invests in Asia-based research efforts that may yield either new candidates for medicines or new pathways for technology development In 2010 Pfizer either launched or expanded collaborative ef-forts throughout the region with major Asia-based researchers such as WuXi AppTec Crown Bioscience Cumencor HD Biosciences and PharmaResources (Shanghai) Co as well as through academic partnerships with Fudan University Shanghai Jiao Tong University and Shanghai Institutes for Biological Sciences (Pfizer Global Opportunities 2010) This global network of industry and academic alliances is stimulating bio-medical advances into diseases that are more prevalent in Asia than in other parts of the world For example Pfizer currently has partnerships with the Korea Research Institute of Bioscience and Biotechnology and with the Asian Cancer Research Group (an independent not-for-profit company es-tablished by Pfizer Eli Lilly and Merck) to investigate treatments and to un-derstand certain types of gastric liver head and neck cancers that have higher prevalence rates in Asia than in places such as North America and Western Europe Here we see capacity development in emerging markets with the objective to address the health concerns of the Asian patient (Pfizer Global Opportunities 2010) An Open Source Strategy for New Drug Discovery In 2010 Eli Lilly and Company Merck and Pfizer Inc formed the Asian Cancer Research Group Inc (ACRG) an independent not-for-profit com-pany The ACRGlsquos formation represents a prime example of a growing trend in pre-competitive collaboration in which large pharmaceutical compa-nies combine their resources and expertise to rapidly increase knowledge of disease and disease processes The goal of the ACRG is to improve the knowledge of cancers prevalent in Asia and to accelerate drug discovery ef-forts by freely sharing the resulting data with the scientific community Initially the ACRG will focus on lung and gastric cancers two of the most common forms of cancer in Asia As many as 40 percent of patients with lung cancer in Asia demonstrate a mutation that is relatively rare in Western patients (EGFR mutation) This mutation has resulted in differences in re-sponse to some types of agents suggesting that a different research ap-proach is needed for developing treatments for certain patient populations Over the next two years Lilly Merck and Pfizer have committed to create one of the most extensive pharmacogenomic cancer databases known to date This database will be composed of data from approximately 2000 tis-sue samples from patients with lung and gastric cancer that will be made publicly available to researchers and over time further populated with clini-cal data from a longitudinal analysis of patients (Pfizer 2010) Ties to Academia In the past six years Pfizer RampD China has developed a large collaborative research network covering basic research institutes contract research or-ganizations and smaller biotech and pharmaceutical firms Pfizerlsquos China Research and Development Center a state-of-the-art facility that provides global drug development support capabilities research collaborations and strategic alliance opportunities to China and the Asian region is based in Shanghai It is the largest RampD center for a multinational pharmaceutical company in China The Center works alongside Chinese partners to develop the skills and talents of local scientists biostatisticians medical professionals pharmacists and others with expertise in life sciences The Center collabo-rates with leading academic researchers and top institutes in China including Peking University Tsinghua University Shanghai Jiaotong University and multiple institutes of the Chinese Academy of Sciences (Pfizer 2009) Pfizer signed a deal in July 2009 with the Shanghai Institute of Biological Sciences (Sibs) As part of this deal Pfizer will provide US$500000 each year for three years to fund early stage joint research in life sciences and new drug development between Sibs scientists and Pfizer scientists Scientists in basic research institutes learn drug development skills from industry collabo-

rators while Pfizer scientists learn from and gain access to ideas of the aca-demics Though the funding is small the joint research is supported by Pfizerlsquos global resources For example proposals are revised to become more feasible and workable The researchers also receive assistance on intel-lectual property managementmdashhence the attraction of the programme for Chinese life scientists (Jia 2010) ―Our choice of Shanghai Institutes for Biological Sciences as a research part-ner demonstrates our high regard for the scientific expertise and capabilities of SIBS said Martin Mackay President Pfizer Global Research and Devel-opment ―China is increasingly seen as a source for innovative healthcare research and we are proud of our ongoing investment in the outstanding science and people here Research projects will be selected and developed jointly by Pfizer and SIBS scientists (Pfizer 2009) In parallel Pfizer has made a significant commitment to South Korean re-searchers The company signed a memorandum of understanding with the countrys Ministry of Health and Welfare in 2007 agreeing to invest $300 million in RampD in the country At this time Pfizer formed a strategic re-search partnership with the Korea Research Institute of Bioscience and Biotechnology (Ray 2010) Pfizer and the Korea Research Institute for Bioscience and Biotechnology (KRIBB) expanded the earlier agreement in May of 2010 to jointly develop drugs for liver and gastric cancer and to in-vest a total of KRW 300 billion (U$240 million) from 2008 to 2012 (Moffat 2010) Continuing its focus on pharmacogenomics Pfizer also recently formed a research partnership with Samsung Medical Centre in Seoul for the analysis of Korean liver cancer patients in order to generate gene expression profiles for the condition (Adams 2010) Choi Han-Yong president of Samsung Medical Centre said ―We are pleased to have an opportunity to work with the worldlsquos number one phar-maceutical company Pfizer to better understand cancer in Korean patients with the goal of being able to send a new message of hope for patients with liver cancer across the world especially in Asia (Adams 2010) Centers for Therapeutic Innovation (CTI) Pfizer recently announced the formation of a network of academic collabo-rators to accelerate the translation of basic science into biologics-based drugs According to Mikael Dolsten MD PhD president of Pfizer Worldwide Research amp Development the Centers represents a novel open innovation paradigm combining the competencies of top academic research institutions with Pfizerlsquos leading drug development capabilities and research technologies (Pfizer 2010) The Centers for Therapeutic Innovation (CTI) will initially focus on collaborations within the US Pfizer expects to expand into Europe and Asia in 2012 Each Center will be governed by a Joint Steering Committee (JSC) comprised of Pfizer and Academic Medical Cen-ter (AMC) representatives who will provide leadership and evaluate the suc-cess of each program through discovery and early stage clinical develop-ment Through this innovation model Pfizer will have the opportunity to broaden its pipeline with novel candidate drugs to treat diseasesmdashaddressing unmet medical need (Pfizer 2010) A key aspect of the Centers for Therapeutic Innovation is Pfizerlsquos commit-ment to establishing local Centers at each partner site The partnerships will follow a venture capital-funded biotechnology start-up model whereby Pfizer funds preclinical and clinical development programs and offers equi-table intellectual property and ownership rights as well as broad rights to publication When programs are successful and advance according to the terms determined by a joint steering committee Pfizer will grant milestone payments and royalties (Rockefeller University 2011) ―The concept is to make a transition away from the vertically integrated RampD model into smaller decentralized groups of a truly global nature says Pfizerlsquos Anthony Coyle who is heading up the program out of the com-panys Cambridge Massachusetts facilities (Ratner 2011) The CTI will provide the primary investigator (PI) with funding (postdoctoral support) technical support (dedicated Pfizer personnel with expertise in protein sciences and development) and infrastructure (laboratory space libraries robots) (Pfizer 2011) The incentives operating model and goals for participating primary investigators and Pfizer colleagues will be designed to support achieving a positive Proof-of-Mechanism study in humans (PoM) PoM studies are small investigator-led clinical trials that typically involve 10 to 30 human subjects and have defined mechanistic or therapeutic endpoints (Pfizer 2011)

9

Partnerships Reaching Down the Value Chain In 2008 WuXi PharmaTech signed a three year deal with Pfizer Under the new collaboration agreement WuXi PharmaTech in partnership with Pfizer will establish ADME assays to provide in vitro screening services on com-pounds WuXi PharmaTech synthesizes for Pfizer (WuXi 2008) WuXi PharmaTech and Pfizer have previously collaborated on synthetic chemistry parallel medicinal chemistry ADME and bioanalytical services ―This new agreement further strengthens our already productive relationship with Pfizer one of our largest customers for many years and it is the direct result of our research capability and firm commitment to quality and customer sat-isfaction according to Ge Li PhD chairman and CEO of WuXi PharmaTech (GEN News 2008) In 2009 Pfizer and Crown Bioscience Inc (Crown) announced a collabora-tion to research and develop novel therapeutics for Asian cancers Under the terms of this agreement Crown will receive an upfront payment and re-search funding as well as milestone payments based on the achievement of preclinical and clinical goals The companies will work together to discover and advance multiple candidates for clinical development The work will take place at Crownlsquos new research facility located in Taicang (near Shang-hai) China (Pfizer 2009) ―I am delighted to be collaborating with Pfizerlsquos exceptional oncology group says Alex Wu CEO of Crown ―I am also very happy that Pfizer is focusing on and dedicating resources to address a very important unmet medical need for the Asian populations This new collaboration extends an already very successful partnership between Crown and Pfizer and further demonstrates Crownlsquos commitment to becoming an outstanding cancer re-search company in Asia (Pfizer 2009) Reaching out to the bottom of the pyramid MicuRx Pharmaceuticals Inc a biopharmaceutical company (with its presence in San Francisco US and Shanghai China) dedicated to the development of antibiotics to treat drug-resistant bacteria and Cumencor Pharmaceuticals Inc recently announced that the companies have entered a collaboration with Pfizer (NYSE PFE) to discover novel therapeutic agents to treat multi-drug resistant tuberculosis (MDR-TB) Cumencor Pharmaceuticals is a China-based biotechnology company applying MicuRxlsquos proprietary technology platform to discover and develop novel antibiotics for MDR-TB (PR Newswire April 2010) Under the terms of the agreement Pfizer will provide an upfront payment funding for the discovery and preclinical development of novel antibiotics to treat MDR-TB and payments linked to the development and commerciali-zation (including royalty payments on sales) of any antibiotics developed through the collaboration All collaboration research will be conducted at the ZhangJiang High-Tech Park in Shanghai China (PR Newswire April 2010) ―MicuRxlsquos novel approach to developing antibiotics for the treatment of drug-resistant bacteria and their existing technology know-how and exper-tise provide the basis for this collaboration said Steve Yang PhD Vice President and Head of Pfizers Asia Research and Development organiza-tion ―We expect that any compounds resulting from the collaboration will complement our portfolio of anti-infective agents and build our global pres-ence in the emerging pharmaceutical markets of Asia and beyond (PR

Newswire April 2010) Building Intellectual Capital in Asia through Open Innovation Pfizerlsquos open innovation strategy in Asia has a strong capacity development focusmdashnamely the development of intellectual capacity in Asia Beginning with a focus on health issues directly affecting the Asian patient Pfizer is not only devoting its resources to such diseases but through the ACRG will widely share pharmacogenomic information pertaining to lung and gastric cancers Supporting this endeavour are collaborations with the Korea Research Institute for Bioscience and Biotechnology (KRIBB) and the Samsung Medical Centre in Seoul Through its association with the Shanghai Institute of Biological Sciences (Sibs) and the planned Centers of Therapeutic Innovation Pfizer hopes to fund early stage joint discovery and clinical research in life sciences and new drug development Scientists in ba-sic research institutes will learn drug development skills from industry col-laborators while Pfizer scientists learn from and gain access to ideas of the academics Training opportunities in the area of intellectual property man-agement have been equally attractive to scientists Knowledge sharing knowledge development and exchange should support a vibrant life sciences sector in emerging markets in Asiamdashwith the goals of addressing chronic and neglected diseases that are endemic to Asia (Figure 1) References 1 Adams B Pfizer form liver cancer research partnership in Korea InPharm

July 2010 2 Jia H Though the funding is small the joint research is supported by

Pfizerlsquos global resources Chemistry World October-December 2010 3 MicuRx Pharmaceuticals and Cumencor Pharmaceuticals Partner with Pfizer

to Discover and Develop Antibiotics for Drug-Resistant Tuberculosis in China PR Newswire April 2010

4 Moffat B Global pharma eyeing Korean acquisitions as nation becomes test-bed Private Equity Korea May 2010

5 Pfizer And Crown Bioscience Announce A Collaboration To Research And Develop New Treatments For Asian Cancers Pfizer 2009 Pfizer Announces Partnership With Shanghai Institutes For Biological Sci-ences For Drug Discovery Activities BusinessWire July 2009

6 Pfizer Employs WuXi PharmaTech for In Vitro ADME Services GEN News November 2008

7 Pfizer Global Opportunities Annual Review 2010 8 Pfizer Launches Global Centers for Therapeutic Innovation a Network of

Research Partnerships With University of California San Francisco Pfizer November 2010

9 Publicly Available Genomic Database of Profiled Tumor Samples to Provide a Resource for Biomedical Researchers Worldwide Lillycom February 2010

10 Ratner M 2011 Pfizer reaches out to academiamdashagain Nature Biotechnol-ogy 29 3-4

11 Ray T PfizerSamsung Collaboration to Focus on PGx Strategies to Per-sonalize Liver Cancer Treatments in Korea Pharmacogenomics Reporter July 2010

12 Rockefeller joins Pfizerlsquos Global Centers For Therapeutic Innovation The Rockefeller University April 2011

13 WuXi PharmaTech Signs New Collaboration Agreement With Pfizer WuXi AppTec November 2008

14 wwwpfizercom 2011

Figure 1 A Broad Asian Open Innovation Strategy at Pfizer

Pfizerrsquos Open Source Strategy

Asian Cancer Research Group Inc (ACRG)

Reaching Down the Value Chain Alliance with WuXi

PharmaTech Alliance with Crown

Biosciences Alliance with MicuRx Pharmaceuticals

and Cumencor Pharmaceuticals

Ties to AcademiamdashIntellectual Capital Development

China Research and Development Center

Sibs Alliance KRIBB Alliance

Samsung Medical Centre Alliance CTI

10

11

A Networked Open Innovation Strategy The SpringFire Laboratory Network Technological complexities and market pressures have increased the degree to which companies are outsourcing to highly specialized technology driven companies However conventional outsourcing on a project-by-project ba-sis is strategically insufficient in this era A new type of structure-the virtual or networked outsourcing company provides access to customized solutions and is focused on long-term strategic partnering The formation of this new networked outsourcing company structure is driven by the need to access a broad range of expertise and the shift from narrowly focused specialized outsourcing companies to ―all inclusive outsourcing companies The virtual company is much more agile responsive to paradigm shifts and regulatory changes Accessible expertise can cover drug discovery from the earliest stage of lead compound identification and development through preclinical clinical phases manufacturing global registration post-marketing and line-extension studies The virtual outsourcing company enables access to a multidisciplinary team where the appropriate skill sets and expertise can be available at each stage of the biopharmaceutical value chain Appropriate teams are quickly assem-bled to manage issues as they arise In contrast large vertically integrated outsourcing companies can face many of the same problems associated with the fully integrated biopharmaceutical company including integration coor-dination and communication problems For each team the most suitable individuals from the most appropriate outsourcing firms within the network are selected on the basis of skills experience and fit with the project or product goals client and other individuals on the team Virtual outsourcing companies manage the various contracts budgets and relationships for their clients Lower project risk exists as dependency on a single supplier relation-ship is removed A virtual company must add value and not act simply as an intermediary be-tween contractors and large companies To operate successfully within the virtual environment requires strong industrial and academic networks effec-tive project management skills highly developed intellectual property man-agement skills and the ability to bring together partners to enable drug devel-opment Teams of experienced suppliers and experts are tailored to fulfill project or product requirements and are led by a dedicated senior project manager to ensure knowledge coordination and integration Forming the right partnerships and teams as well as managing operational processes in-crease the effectiveness of RampD outsourcing and ensure that the associated cost time and risk-sharing benefits are enjoyed by the Sponsor Models at Work The SpringFire Laboratory Network SpringFire Laboratory Network is a firm with the goal to match pharmaceu-tical medical device and biotech companies with clinical laboratories to pro-vide clinical trial testing solutions SpringFire Laboratory Network is unique in representing a network of independent non-competing high complexity laboratories collectively providing testing offerings to the clinical trial mar-ketplace The founders discovered that there was a strong desire by Sponsors and CROs to have choices in laboratories other than large laboratory companies with rigid requirements and little flexibility or educational institutions that were expensive and less responsive to external clients However there was little incentive for independent laboratories to pursue clinical trials testing given the large upfront costs to start a business development effort and the significantly different and lengthy sales cycle in clinical trials In an attempt to bridge the gap between the strong need for laboratory choices and the reluctance of independent laboratories to shoulder the bur-dens of clinical trials initiatives SpringFire Laboratory Network was estab-lished The network includes hand-selected independent laboratories to pro-vide testing services to clinical trial Sponsors and CROs The SpringFire team provides business development services for the network laboratories as well as expert knowledge around project management and clinical trial-specific operations The laboratories are non-competing and as such they share costs and best practices with one another without competing for the work ―The clinical trial marketplace has a need for esoteric laboratories to respond to its ever-expanding requests states Jim McClintic Managing Partner of SpringFire Laboratory Network

Selecting and Matching Network Participants SpringFire Laboratory Network is committed to a successful outcome for each drug or device development project The network of laboratories is made up of hand-selected ―Centers of Excellence The affiliated laborato-ries provide solutions in sub-specialized anatomical pathology and highly specialized clinical diagnostic testing along with state of the science micro-array testing SpringFirelsquos core team works with all affiliated laboratories to ensure their internal operations meet or exceed the unique regulatory and data manage-ment needs of clinical trials Each laboratory has demonstrated their abilities to provide customized quality results for clinical investigations on an inter-national basis The SpringFire affiliated laboratories are highly regarded in their specialized areas of testing expertise Each affiliate laboratory is evalu-ated to determine their fitness for work in the clinical trials arena A variety of characteristics are considered during a 2-day on site assessment including

Past clinical trial experience Quality laboratory processes Scientific and medical leadership Platform and technology maturity Project management Storage space options Data management capabilities Commitment to providing quality testing to clinical trials Sponsors

or CROs Since most of the laboratories are non-competing the matching process is usually based on the services requested and which lab provides those ser-vices In the event that more than one laboratory provides the requested tests or services SpringFire works with the laboratory that provides the most comprehensive set of tests or services In the event that no single lab performs all of the testing SpringFire will facilitate for two or more of the network laboratories to work together on a study Current Members of the Network SpringFire Laboratory Networklsquos current member laboratories are based in North America The Network provides testing services for both domestic and international study sites and is open to working with laboratories and sponsors around the globe Current members include

With a combined menu of more than 1000 specialty tests SpringFire offers Sponsors and CROs expertise and testing services in numerous therapeutic areas including anatomical pathology coagulation advanced lipids molecu-lar genetics and womenlsquos health The SpringFire network of laboratories col-lectively represent over 90 years of experience in the clinical marketplace while successfully completing more than 250 clinical trials Governance of the Network The SpringFire team is much more than business development The team works closely with each laboratory before during and after the study From the start the team works with each laboratory to build a competitive and timely proposal With the awarding of a contract the SpringFire team re-views and assists with negotiations and contract development During the study start-up phase the team facilitates on-going communications and lo-gistics to ensure the effective completion of tasks including routinely follow-ing up with both the laboratory and Sponsor or CRO to ensure good com-munication and suitable quality laboratory services When the study is con-cluded all parties are provided with a summary and an opportunity to share their experiences thoughts and ideas on the study and the laboratory ser-vices (Figure 1)

Laboratory Specialization

D-Path Dermatopathology

GI Pathology Gastrointestinal and liver pathology

ITxM Diagnostics Coagulation testing

Atherotech Diagnostics Advanced lipids

Baylor College of Medicinersquos Molecular Genetics Laboratories

Pharmacogenomics cytogenetics and medical genetic diagnostics

Baylor College of Medicinersquos Cancer Genetics Laboratory

Cancer-related genetics testing

12

Figure 1 Interactions in the SpringFire Laboratory Network Knowledge management is vital both to the effective working of the project team but also to the efficient transfer of information to and from the Sponsor as well as to external audiences such as site investigators regulatory authorities and potential licensees Outsourcing multiple stages of the drug product life cycle is critical for those companies that require access to expertise and technology in a rapidly chang-ing paradigm without the risk and cost associated with internal development Both young and small biotechnology companies and large traditional phar-maceutical companies can benefit from the model of drug discovery and development offered by organizations such as the SpringFire Laboratory Network

SPRINGFIRE

CORE TEAMPartner Selection

Best Practice Sharing

Baylor College of

Medicines

Cancer Genetics

Laboratory

GI Pathology

D-Path

ITxM Diagnostics

Baylor College of

Medicines

Molecular Genetics

Laboratories

Atherotech

Diagnostics

SPONSORCRO

PARTNER

MATCHING

GOVERNANCE

LESSON

KNOWLEDGE

TRANSFER

UPCOMING BIO PARTNERSHIPS ASIA 2012 CALENDAR

EDITORIAL

TRENDS AND ANALYSIS Articles that run 1500-2000 words and explore trends across the value chain describe opportunities in emerging Asian markets outline policy changes enabling partnerships in these markets and discuss the management of such partnerships

CASE STUDIES Company case studies that run 500-1000 words and explore partnerships across the drug discovery and development value chain

Submit text and electronic images with a resolution of 300 dpi or better We cannot guarantee placement in a particular issue The staff may schedule an entry to coincide with a certain issues editorial theme

COMPANY PROFILES Service provider profiles Send the following information Company name

contact information description services offered markets served and partnerships sought Also send a company logo

TECHNOLOGY PROFILES Technology licensing opportunities Send the following information Technology background areas of application competitive advantages stage of development intellectual property status partnerships sought and contact

information Please forward an image if applicable

NEWS RELEASES Updates on deals partnerships opportunities Send a press release and a company logo

MONTH FEATURE STORIES TRENDS AND ANALYSIS

CASE STUDIES

February 2012 New Models of Open Innovation in Asia

Business Model Analysis

Company Profiles

May 2012 Cluster Formation and Participation in Asia

Case Analysis Cluster Profiles

August 2012 Partnerships and Biopharmaceutical Capacity

Development in Asia

Case Analysis Company Profiles

November 2012 Transferring the Lessons from Asia to the Bottom of

the Pyramid

Lessons from India China Singapore

Middle East

Company Profiles

13

14

15

Convergence Innovation Development at the Intersection of Disciplines Organizations and Products Convergence Innovation is the paradigm where discovery and technology creation occur at the intersection of multiple disciplines and organizations Specifically convergence between the chemical biological cognitive physi-cal and information sciences is evident Firms and researchers will cross the boundaries between these disciplines to create technological value--finding solutions to address health environmental and energy challenges In parallel will be emergence of new models of collaboration to enable knowledge crea-tion and knowledge dissemination Central to Convergence Innovation will be a determination of the common value of knowledge versus the private value of knowledge across the associated disciplinesmdashwith the goal of ad-vancing and commercializing technology Levels of Convergence Convergence can be considered at three levelsmdashnamely convergence in the sources of knowledge for research convergence in organizational forms to enable technology development and convergence at the product level with the embodiment of knowledge in complementary products For example while nanotechnology research has been shown to have a dominant focus on material sciences additional analysis has demonstrated that nano-based research increasingly draws its knowledge from other areas (Porter and Youtie 2009) Specifically Porter and Youtie (2009) reveal that while nano-based publications center on materials science (including chemistry and physics) nano-based research also significantly involves many other fields including biomedical sciences computer sciences and mathematical sci-ences environmental sciences and engineering Citation patterns further show extensive referencing across macro-disciplinesmdashwith a preponderance of references in nano-related articles to research outside the macro-discipline in which the article is published (Porter and Youtie 2009) Conse-quently at this level of convergence the sharing and absorption of research across the involved disciplines will be necessary for downstream value crea-tion (Figure 1) Figure 1 Convergence at the Disciplinary (Knowledge Sources) Level At the next level of convergencemdashthe organizational levelmdashthe interaction between technological convergence and models of open innovation is be-coming apparent Licensing mergers acquisitions and strategic alliances such as joint ventures as well as new structures such as innovation networks and open innovation communities represent alternative strategies that may be used to acquire or access the necessary knowledge or assets for discovery and development From a convergence perspective the opportunity exists for a (public or private) stakeholder to not only interact with other (public andor private sector) stakeholders through simple one-to-one traditional collaborations but with many stakeholders through more complex mecha-nisms such as consortia crowdsourcing and other such open innovation communities For example the need for shared scientific expertise and large scale infrastructure in both nanotechnology and biotechnology is thought to be responsible for the development of networks spanning both fields (Figure 2) The pervasiveness of enabling technologies such as information and communications technology (ICT) have encouraged innovation net-works to increase in dominance and have lead to the blurring of organiza-tional boundaries among research organizations (Powell Koput and Smith-Doerr 1996 Roijakkers and Hagedoorn 2006) In such collaborations the opportunity to assume multiple roles exists to enable RampD including the collaborator who shares knowledge with one or many partners for the pur-poses of discovery or development the incubator who provides funding or expertise to other stakeholders to support venture development the enabler

who provides access to tools equipment large scale infrastructure or other services to support product development and the orchestrator who manages the network of partners with either the objective of knowledge creation or knowledge application (Melese Lin Chang and Cohen 2009) At this level of convergence there is the critical need to closely examine the management processes associated with collaboration as the collaborative strategies have not only grown in relevance but also in terms of impact and the number of participants involved

Collaboration Model

Access

Simple (One to One) Complex (Many to Many)

Collaboration Complexity

Figure 2 Convergence at the Organizational Level Open Access=Participation Open Closed Access=Exclusive Partnership

Simple=One to One Link between Partners Complex=Many Links between Several Partners PPP=Public Private Partnership JV=Joint Venture

The location in the above grid determines the extent to which the collabora-tion is open or closed and between one few or many partners

Finally the outcomes from any collaborative interaction will increasingly lead to convergence at the product level In this case multiple components or products will be packaged together to enhance the value over individual product offerings (Figure 3) Such bundled products will have the goal of simultaneously meeting several technological needs be it for biomedical treatment as seen in the use of nano-based diagnostics paired with therapeutics in agriculture or environmental applications as seen in the use of sensors to measure pathogens in food and the environment or the use of nanospheres to selectively detect harmful materials in water and then used for detoxification and in the creation of novel energy technologies as seen in the use of catalysts in particles for biodiesel synthesis to name a few (Schmidt 2007) At the product level effective intellectual property man-agement strategies and coordination between regulatory agencies will be paramount

Figure 3 Convergence at the Product Level

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

COGNITIVE

PPP JV

MampA

Consortium Innovation Network

Crowdsourcing Open Source Network

Licensing

Proprietary Open Innovation Community

Closed

Open

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

Nanomaterials

Nanodevices

Nanoelectronics

Nanosensors

Bioinformatics

Biosensors

Tissue Engineering

Drug Delivery

Diagnostics

Drug Delivery

Chemical Catalysis

Nanofiltration

Chemical Sensors

Neuron Network

Prostheses GenerationCOGNITIVE

16

The Impact of Convergence At each level of convergence there are several complexities that either im-pact the management of stakeholder interaction or the management of the knowledge based assets generated through such interactions For example given the expected intersection between disciplines knowledge complexities including varied types (such as biological information and biological struc-tures chemical knowledge and structures physical knowledge and struc-tures) and forms of knowledge (disembodied and embodied) will drive the need for a common platform for knowledge integration validation and standardization Beyond integration of knowledge it is expected that teams of biological chemical and physical scientists will increasingly form to de-velop and bridge together the necessary tools and equipment for RampD ac-tivities (Ideker Galitski and Hood 2001 Kitano 2001 Kautt Walsh and Bittner 2007 Boardman 2008 Boardman and Ponomarioy 2009) We must also consider the impact of convergence on the downstream rights to de-velop products Lemley (2005) discusses that unlike other industries in which patentees are actual or potential participants in the downstream mar-ket a significant number of corporate patentees will increasingly own rights not just in the industry in which they participate but other industries as well Analysts fear that over-patenting alongside the large shadow of such patents could not only fragment technology but could discourage stakeholders in a number of industries from attempting to develop products incorporating infringing technologies (Lemley 2005) It is important to consider that as multiple disciplines increasingly working together each discipline will have its own priorities and conventions regarding knowledge dissemination and knowledge appropriation (Hilgartner 1996) One discipline may signal its success during knowledge generation through the enclosure and the sale of disembodied knowledge Another discipline may measure its success exclu-sively by the embodiment of knowledge in medical products (Hilgartner 1996) While patent pools are a suggested solution to the possible patent holdups (DlsquoSilva 2009) it has been proposed that as has occurred in the genomics arena innovation-based networks with rules regulating the devel-opment and appropriation of critical technology building blocks could not only circumvent the product development and legal problems of the past but will also bring together the requisite intellectual and physical capital (DlsquoSilva 2009 Allarakhia and Walsh 2010) A Template for Managing Interactions and Knowledge-Based Assets Governance strategies must seek to align the incentives for participation in collaborative activities for multiple stakeholders The use of rules to define actions communication mechanisms used to enable and monitor actions and to share the outcomes are all critical to ensure that goals are achieved Structure and Roles It is expected that the chosen collaboration modemdashone to one one to many or many to many collaboration and objectives set for the collaborationmdashpooling of assets generation of new assets andor pol-icy creation will impact the type of participants that will join The organiza-tional structure chosen will be determined in part by the attributes of the resources to be contributed or developedmdashinformation supporting tools technology as well as the location of participantsmdashwith linkages established through physical clustering or virtual networking Thereafter the organiza-tion of participants may be a function of technological expertise geographic location or project-based management expertise Resource Types and Outcomes Participants will contribute several inputs including funding equipment and human capital The resulting outcomes include data materials tools and technology Facilities store artifacts in or-der to make them accessible Traditional facilities have been libraries and archives containing books journals and papers New technologies have made electronic distributed information possible Artifacts are discreet ob-servable nameable representations of ideas such as articles research notes books databases maps computer files and web pages (Foray 2004 Hess and Ostrom 2006) In the context of nanotechnology databases material and model repositories accessible laboratories that aggregate equipment and tools for nanotechnology development are varied options to manage the outputs Hence any outcomes analysis should seek to determine the success of collaboration including the amount of data produced and accessed the material generated housed and accessed the tools created and used and the technology produced by participants Governance Internal rules or mechanisms used to promote cooperative be-haviour can include formalizing the requirements to join the initiative en-suring frequent interactions encouraging communication between partici-pants monitoring and punishing defection and setting the boundary for access to resources An authority that regulates access to resources can en-sure that a fair and efficient governance strategy is used (Ostrom Gardner and Walker 1994) While access generally refers to disembodied assets such

as data extraction can involve the removal andor use of physical materials models and tools Knowledge use and access can be governed by the fol-lowing rules sharing with partners only (closed access) sharing with part-ners and the public at large (open access) and intellectual property assign-ment potentially on information materials tools and technology with the specification of rights to use based on licensee type geography or target market for product launch Creating Value The Path Forward in The path forward will require the creation of supporting policies encourag-ing multi-disciplinary collaboration At a national level several governments have recognized the importance of innovation networks to develop capacity and compete on an international level Consequently policies are now pro-viding more RampD funding and incentives encouraging the formation of multi-sectoral networks (Corley Boardman and Bozeman 2006) New prod-ucts of convergent technologies will necessitate cooperation among regula-tory bodies with the coordination of information flow coordination of du-ties and increased harmonization between international regulatory bodies (Castle et al 2006 Drezek and Tour 2010) To avoid the mistakes of the past policies outlining guidelines for the management of intellectual prop-erty rights can ensure that stakeholders will correctly assess the common value of knowledge versus the private value of knowledgemdashresulting in the transition from open knowledge to appropriated knowledge with the objec-tive of pursuing (unilateral or collaborative) downstream product develop-ment References 1) Allarakhia M amp Walsh S Managing knowledge assets under conditions of radical change The case of the pharmaceutical industry Technovation 31 105-117 (2011) 2) Boardman P Beyond the stars The impact of affiliation with university biotechnology centers on the industrial involvement of university scientists Technovation 28 291-297 (2008) 3) Boardman Pamp Ponomarioy B University researchers working with pri-vate companies Technovation 29 142-153 (2009) 4) Castle D Loeppky R Saner M Cline C Dalgleish J amp Wojnik V Convergence in Biotechnology Innovation Case Studies and Implications for Regulation (University of Guelph Guelph 2006) 5) Corley EA Boardman PC amp Bozeman B Design and the manage-ment of multi-institutional research collaborations Theoretical implications from two case studies Research Policy 35 975-993 (2006) 6) Drezek RA amp Tour JM Is Nanotechnology Too Broad to Practice Nature Nanotechnology 5 168-169 (2010) 7) DlsquoSilva J Pools thickets and open source nanotechnology European Intellectual Property Review 31 300-306 (2009) 8) Foray D The Economics of Knowledge (MIT Press Cambridge 2004) 9) Hess C amp Ostrom E Understanding Knowledge as a Commons From Theory to Practice (MIT Press Cambridge 2006) 10) Ideker TT Galitski L amp Hood LE A new approach to decoding life Systems biology Annual Review Genomics and Human Genetics 2 343-372 (2001) 11) Kautt M Walsh S amp Bittner K Global distribution of microndashnano technology and fabrication centers A portfolio analysis approach Technol-ogy Forecasting and Social Change 74 1697-1717 (2007) 12) Kitano H Systems biology Toward systems-level understanding of bio-logical systems Foundation of Systems Biology 1-29 (MIT Press Cam-bridge 2001) 13) Lemley MA Patenting nanotechnology Stanford Law Review 58 601-630 (2005) 14) Melese T Lin SM Chang JL amp Cohen NH Open innovation net-works between academia and industry an imperative for breakthrough therapies Nature Medicine 15 502-507 (2009) 15) Ostrom E Gardner R amp Walker J Rules Games and Common-Pool Resources (The University of Michigan Press Ann Arbor 1994) 16) Porter AL amp Youtie J How interdisciplinary is nanotechnology Jour-nal of Nanoparticle Research 11 1023-1041 (2009) 17) Powell WW Koput KK amp Smith-Doerr L Inter-organizational col-laboration and the locus of innovation Network of learning in biotechnol-ogy Administrative Science Quarterly 41 116-145 (1996) 18) Roijakkers N amp Hagedoorn Inter-firm RampD partnering in pharmaceu-tical biotechnology since 1975 Trends patterns and networks J Research

Policy 35 431minus446 (2006) 19) Schmidt K Project on Emerging Nanotechnologies (2007)

17

18

Beyond Cost-Savings Hidden Considerations for Conducting Clinical Trials in Asia

By Jessica Liu General Manager ChinaNorth Asia INC Research and Garth Tierney Regional General Manager Australia and South East Asia INC Research

Abstract Pharmaceutical industry sponsors are well-aware of the cost bene-fits of conducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the pri-mary criteria by which sponsors should select the Asian regions in which they will conduct their clinical trials Other important considerations include disease incidence treatment standards minimizing variability maximizing protocol adherence regulatory factors politics cultural considerations and ethical concerns While global spending on medicines is expected to grow three percent to five percent over the next five years spending in the ―pharmerging markets is expected to double1 The desire to access this fast-growing consumer base is the primary reason large pharmaceutical companies are increasing their clinical presence in emerging countries like China according to a report from investment bank-ing firm William Blair2 But small to midsize drug makers are also moving into emerging markets driven primarily by cost differentials China can offer as much as a 50 percent cost advantage compared to the United States or Europe as can Thailand the Philippines or Malaysia Most countries in Asia are at least 20 percent to 30 percent more cost-efficient than their western counterparts although there are notable exceptions such as South Korea and Japan Pharmaceutical industry sponsors are well-aware of the cost benefits of con-ducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the primary criteria by which sponsors should select the Asian regions in which they will con-duct their clinical trials Other important considerations for conducting a trial in Asia include disease incidence and treatment standards the potential to minimize variability and maximize protocol adherence regulatory and political factors and cultural and ethical considerations Disease Incidence and Treatment Standards With more than four billion people Asia offers sponsors a deep pool from which to draw clinical trial participants Indeed for sponsors conducting late-stage clinical trials in indications such as diabetes or cardiovascular dis-ease which can require thousands of patients establishing Asian trial sites to tap into that pool is critical The key is determining which Asian countries will best match each triallsquos unique patient requirements For sponsors most concerned with enrolling large numbers of patients into a trial highly populous countries such as India China Indonesia Japan the Philippines Thailand and Malaysia may be the best fit A recent CRO survey revealed that China is the leader in patient recruitment for the Asia-Pacific region followed by India and South Korea3 However sponsors need to be aware that the region is still expanding and a vast population does not equate to vast number of ICH GCP trained sites in the larger countries of China and India This can be a limiting factor in gaining access to the best sites for certain indications If on the other hand a sponsor is conducting a Phase I trial they should know that certain Asian countries have specific regulatory requirements for approval of a clinical trial application (CTA) that can add complexity to the process Others like Australia specialize in Phase I studies thanks to their fast and straightforward approval processes high-quality clinical practices and variety of many academic and commercial clinical trials centers4 Selecting an appropriate region for trial sites also depends on the incidence of the target disease in each countrylsquos population Highly-developed Asian countries have a higher incidence of diseases common in the West such as diabetes and cardiovascular disease while diseases such as tuberculosis are more common in Southeast Asia Some countries like India have diverse patient populations afflicted with diseases of both the developing and devel-oped world

When it comes to standards of care certain diseases like breast cancer lung cancer and diabetes are treated in much the same way in Asia as they would be treated in the Western world But for many other indications medical practice standards differ both from East to West and between the different Asian regions Sponsors seeking to meet specific market regulatory approval will need to mirror Western standards-of-care and as such should consider focusing trial sites to Australia New Zealand Singapore Taiwan Hong Kong and South Korea But differing standards of care can also provide unique opportunities Asia offers relatively more patients for first-line and second-line cancer drug evaluation than the West where such patient stores have been largely exhausted Risk Mitigation Sponsors should be prepared that some Asian trial sites ndash even those that have adapted Western-style medical practices ndash may require more assistance when it comes to following protocol and differentiating between medical practice and clinical research Not all Asian sites will have the infrastructure for a clinical trial A good CRO partner will work with a sponsor and site investigators to identify any infrastructure gap ndash such as a dedicated com-puter fax or freezer ndash and develop plans to ensure sites have the essentials to deliver a study efficiently Data integrity is another area that sponsors and CROs need to focus atten-tion It is critical to reduce variability by ensuring all monitoring and site staff are well trained Monitors need to understand how to identify and pro-actively resolve issues early on to minimize long-term issues with patient recruitment and data collection They should understand how to recognize early warning signals and not overreact to red herrings Investigators and site monitors also need to be trained in adverse event reporting to ensure that they meet local regional and global clinical trial safety reporting Sponsors must ensure monitoring visits are being conducted regularly as such visits make it more likely that recruitment and data integrity issues will be detected early and managed in a timely and effective manner Equally im-portant site staff needs to be as consistent as possible Finally sponsors need to implement a proven system for data reporting as variability in the data collection process may decrease the evaluable patient pool in the trial decreasing the sponsorlsquos chances to establish statistical sig-nificance or detect a rare safety signal Regulatory and Political Factors While regulatory bodies in South Korea and Taiwan as well as in Singapore have adopted an FDA-based approach each Asian country has its own regulatory idiosyncrasies In China for example reviews take on a project-based nature and sponsors should never assume that what worked in one application will be directly applicable to another No matter how harmo-nized Asia may appear the cookie-cutter approach simply doesnlsquot work However the fact that regulatory policies are still evolving in certain Asian countries provides a unique opportunity to sponsors the opportunity to in-fluence those policies There are no formal guidances or rules covering this topic but it is a real opportunity The recent economic downturn has prompted finance ministers in many countries to more closely analyze the cost of healthcare and they are realizing that good drugs can decrease their overall costs To ensure new drugs are available in their countries they have become increasingly eager to support clinical trials and they are engaging in conversations with sponsors about how approval pathways might be con-structed that take healthcare economics into consideration For example if a sponsor works closely with regulatory agencies to design the right preclinical and Phase I trials could a single Phase IIIII trial be sufficient for approval in some indications Are so many repetitive studies really necessary Is the requirement or guidance relevant to the current technology If a sponsor can prove to the government that a certain disease is currently costing 50 cents per person per day to treat and a new drug would change treatment paradigms and reduce that cost to a penny that is a compelling argument Not compelling enough to compromise safety or effi-cacy but compelling enough to expedite things along by partnering to agree upon the most appropriate pathway to approval While some regulatory agencies may not be as comfortable with the idea of allowing more flexibility and customization in the clinical trial design many are open to reducing bu-reaucracy and the associated time delays for CTA approval ndash particularly when there is potential to significantly impact health economics Govern-ments may provide commercialization support including funding to enable

19

development of new technologies and testing methods There may also be a higher priority given to certain CTA applications in the review queue Australia and Singapore have adopted a more simplified regulatory process and offer a notification scheme rather than formal review by the regulator South Korea and Taiwan are working to ease regulations and facilitate pro-tocol reviews Countries such as China have lengthy regulatory approval processes however there are some early indications that this may be de-creasing India is currently experiencing slower regulatory paths Interest-ingly some Asia Pacific countries that have historically been considered ―easy targets for clinical trials are increasing their regulations While there is much potential to collaborate with regulatory bodies in Asia these are not the only government agencies with which a sponsor must work Each country has its own policies on insurance regulations import licenses and other factors that affect a sponsorlsquos ability to establish and run clinical trial sites Each should be reviewed before selecting countries in which to establish trial sites Cultural and Ethical Considerations Language barriers can be easily overcome by CRO partners with offices across Asia and they are the least of a sponsorlsquos worries when it comes to cultural differences More pressing are issues such as the fact that some Asian researchers may believe that their participation in a trial gives them the right to publish data on their findings while sponsors require at least some degree of control over the publication of trial data Such issues are best managed by thorough communication prior to the start of enrolment In certain countries cultural factors may positively impact a trial Ethical factors may also weigh on a sponsorlsquos decision to conduct trials in certain Asian countries There are certain diseases that present a serious unmet medical need specifically within Asian populations such as foot-and-mouth disease and such indications obviously lend themselves to Asian clinical tri-als Yet if a sponsor has no plans to launch a drug in certain Asian countries perhaps because the populations of those countries would not be able to afford the drug then conducting clinical research in those countries may present ethical challenges For the most part however sponsors are eager to launch their drugs into the rapidly growing Asian healthcare markets and Asian clinical trials are necessary to support this endeavour As mentioned initially the cost advan-tages of conducting clinical trials in Asia cannot be ignored as both large and small companies face pressures on their bottom lines But while costs are important they are not the only consideration About the Authors Jessica Liu MD is the general manager for Clinical Operations in China and North Asia at INC Research She previously managed international pro-jects out of the European headquarters office for a global CRO in Brussels Belgium Prior to that she worked for 15 years in the Chinese affiliates of several global pharmaceutical companies overseeing clinical operations pro-ject management and medical affairs She conducted and managed Phase I-IV clinical studies across multiple therapeutic areas Dr Liu started her ca-reer as a resident physician in the endocrinology Department of the Peking Union Medical College Hospital (PUMCH) in Beijing China She received her Medical Doctorate from the University of Beijing (China) and has a Di-ploma in Pharmaceutical Medicine from the University of Basel (Switzerland) Dr Liu is based in Beijing She can be reached at jialiuincresearchcom Garth Tierney is the regional general manager for Australia and South East Asia for INC Research Garth previously founded and managed Trident Clinical Research a CRO based throughout Australia New Zealand and In-dia After 14 years of operation Trident was acquired by INC Research in June 2011 Prior to founding and managing Trident Clinical Research Garth worked for 8 years in the clinical research industry in various senior manage-ment and operational management roles across several companies including a global CRO an Australian pharmaceutical company and two global phar-maceutical companies Garth has a pharmacology (University of NSW) and business administration (University of Adelaide) background and worked in hypertension research for several years before joining the pharmaceutical industry During this time Garth published various papers and won the Whelan prize (awarded by ASCEPT) He can be reached at gtierneyincresearchcom

References 1 IMS IMS Institute Forecasts Global Spending on Medicines to Reach

Nearly $11 Trillion by 2015 May 18 2011 2 Wm Blair Pharmaceutical Outsourcing Industry Analysis Jun 10

2010 3 CyberMedia Research-BioSpectrum Asia-Pacific CRO Survey 2011 4 Clinical Trials Action Group Report Commonwealth of Australia

2011 CPTR Yields Progress New Six-Way Agreement has Goal to Speed Development of TB Drug Combinations November 11 2011 The Critical Path to TB Drug Regimens (CPTR) announced this November an innovative agreement between AstraZeneca Bayer Sanofi Tibotec TB Alliance and the World Health Organization to share information on tuber-culosis (TB) compounds within their respective drug pipelines to quickly identify and work together to develop the most promising TB drug regimen regardless of sponsor The partnership facilitates a more collaborative ap-proach to TB drug development with the objective to dramatically speed the development of shorter safer and more effective multi-drug treatments that are urgently needed to control the global TB pandemic The agreement will enable information-sharing around scientific and clinical data on TB compounds in clinical development By sharing data partners can identify opportunities to test their compounds in combination speeding availability of future TB regimens The collaboration includes the majority of global sponsors with TB drugs in clinical development Under the agree-ment if two or more organizations choose to work together to further de-velop a regimen they will enter into a separate arrangement that defines the rights and responsibilities of each party CPTR is working closely with regulatory scientists at the US Food and Drug Administration European Medicines Agency and other regulatory bodies in China India and some countries in Africa to develop the tools that are needed to allow testing of new TB drugs in combination cutting years off the development timeline Under the leadership of the Critical Path Institute CPTRlsquos Regulatory Science Consortium focuses on establishing consensus on preferred standards methods and tools for developing new TB drug regimens and obtaining official acceptance from international regulatory authorities Source TB Alliance Pfizer Establishes the Cambridge Research Center September 01 2011 Pfizer Inc recently announced it has entered into a 10-year lease agreement with the Massachusetts Institute of Technology (MIT) for more than 180000 square feet in a new building under development in Cambridge Massachusetts Located at 610 Main Street South in Kendall Square the new site will be the future location of Pfizerlsquos Cardiovascular Metabolic and En-docrine Disease (CVMED) and Neuroscience Research Units The reloca-tion of the two Research Units will substantially boost Pfizerlsquos footprint in Cambridge making it the second largest biopharmaceutical company in Massachusetts in terms of jobs ―We were very deliberate in our choice to move to Cambridge MA as a key part of our RampD strategy By expanding our presence in one of the worldlsquos great centers of scientific and medical innovation we will provide the best environment for our researchers to invent the next generation of medicines in areas of greatest need such as Alzheimerlsquos disease schizophrenia diabe-tes and cardiovascular disease said Rod MacKenzie senior vice president and head of PharmaTherapeutics Research amp Development ―We intend to foster productive formal and informal collaborations between our drug dis-covery experts and the outstanding scientists of Cambridgelsquos world class institutions This is a very exciting period in Pfizer RampD Source Pfizer

20

21

Continued from page 19hellip UK Academia Given Access to Selected AstraZeneca Compounds December 11 2011 Following a unique landmark agreement between AstraZeneca and the UK Medical Research Council (MRC) a wide range of compounds will be made available to UK medical researchers next year In a new type of collabora-tion academia will be granted access to 22 clinical and preclinical com-pounds developed by AstraZeneca Though making individual compounds available to external academic investigators is not unusual the breadth and open-innovation nature of this collaboration is unique because it provides unprecedented access to well characterised clinical and preclinical candidate molecules to investigators across all UK academic institutions There is significant unmet need in diseases both within and outside Astra-Zenecalsquos current research focus This collaboration builds on the sizable in-vestment made in developing candidate drugs within AstraZeneca by help-ing researchers to explore their potential more broadly with the hope that they will find new future medicines It also helps AstraZeneca explore areas of unmet patient need beyond its current disease area focus leveraging great external science in a way that is highly flexible and cost effective The New Opportunities Innovative Medicines Unit (iMed) in AstraZeneca has been central in establishing this research collaboration with the MRC and has acted as the interface with the other AstraZeneca iMeds to agree which compounds would be eligible Clive Morris VP New Opportunities iMed said that ―This Open Innova-tionlsquo approach brings together the strengths of AstraZeneca the MRC and UK Academia into what I hope will be a really potent mix bringing forward really exciting new ideas that could transform our understanding of some diseases It highlights an openness to new scientific thinking and also places external scientific collaboration right at the heart of what we do It is also an excellent way to broaden our portfolio of activities into new diseases for As-traZeneca leveraging the wealth of expertise across UK academia AstraZeneca and the MRC will invite preclinical and clinical research pro-posals from across the UK academic community to investigate the com-pounds in a range of diseases with a view to finding new treatment oppor-tunities AstraZeneca will work with the academic collaborators to develop the best scientific proposals and the MRC will select the highest quality pro-posals for funding awarding up to pound10 million in total to fund the success-ful proposals The successful applicants will then work collaboratively with AstraZeneca to deliver the studies David Brennan AstraZenecalsquos Chief Executive Officer said ―Innovative collaborations are playing a crucial role in finding ways to unlock the poten-tial of new treatments The UK has a strong heritage of research excellence in life sciences We hope that in sharing these valuable compounds with aca-demic scientists through the MRC new discoveries will be made by explor-ing additional uses of these compounds Source AstraZeneca WIPO ReSearch A Neglected Tropical Diseases Initiative October 26 2011 The World Intellectual Property Organization (WIPO) in an unprecedented collaboration with leading pharmaceutical companies and BIO Ventures for Global Health (BVGH) recently launched the WIPO Re Search a new consortium where public and private sector organizations share valuable in-tellectual property (IP) and expertise with the global health research commu-nity to promote development of new drugs vaccines and diagnostics to treat neglected tropical diseases malaria and tuberculosis In WIPO ReSearch Alnylam Pharmaceuticals AstraZeneca Eisai GlaxoS-mithKline MSD1 Novartis Pfizer and Sanofi are collaborating with WIPO BVGH the US National Institutes of Health (NIH) and multiple non-profit research organizations These include the California Institute of Technology the Center for World Health amp Medicine the Drugs for Ne-glected Diseases initiative Fundaccedilatildeo Oswaldo Cruz (Fiocruz) Massachu-setts Institute of Technology Medicines for Malaria Venture PATH the South African Medical Research Council the Swiss Tropical and Public Health Institute the University of California Berkeley and the University of Dundee (UK)

―WIPO ReSearch is a ground breaking example of how a multi-stakeholder coalition can put IP to work for social benefit said WIPO Director Gen-

eral Francis Gurry ―By joining WIPO ReSearch companies and researchers commit to making selected intellectual property assets available under roy-alty-free licenses to qualified researchers anywhere in the world for research and development on neglected tropical diseases malaria and tuberculosis This commitment should accelerate the development of medicines vaccines and diagnostics for these diseases

According to the World Health Organization (WHO) neglected tropical diseases today impair the lives of an estimated 1 billion people The WHO provides technical advice to WIPO on public health issues and research pri-orities as appropriate

By providing a searchable public database of available intellectual property assets information and resources WIPO ReSearch facilitates new partner-ships with organizations that conduct research on treatments for neglected tropical diseases malaria and tuberculosis

Membership in WIPO ReSearch as a user provider or supporter is open to all organizations that endorse adhere to and support the projectlsquos Guiding Principles These Guiding Principles include the commitment that IP li-censed via WIPO ReSearch will be licensed on a royalty-free basis for re-search and development on neglected tropical diseases in any country and on a royalty-free basis for sale of neglected tropical disease medicines in or to least developed countries

―The innovative pharmaceutical industry has an important part to play in addressing unmet medical needs and increasing access to our collective pro-prietary information will help advance research into treatment options for these underserved diseases said David Brennan CEO of AstraZeneca and President of the International Federation of Pharmaceutical Manufacturers amp Associations (IFPMA) ―WIPO ReSearch has the potential to make a real impact on global health which is why we are proud to make all patents owned by AstraZeneca available to this important initiative for promoting the research and development of treatments for neglected tropical diseases anywhere in the world

The WIPO ReSearch database includes a wide variety of contributions rele-vant to malaria tuberculosis and other neglected tropical diseases including individual compounds and associated data screening hits from compound libraries and expertise and know-how in pharmaceutical research and devel-opment In addition WIPO ReSearch offers the opportunity for neglected tropical disease researchers to work directly with scientists at pharmaceutical companies to advance RampD on these diseases As WIPO ReSearch moves forward offerings from current partners will continue to grow and new pro-viders are expected to join to add to the wealth of information compounds and services available

―NIH licenses its patents to enable the private sector to develop diagnostics therapeutics and devices that improve public health said National Insti-tutes of Health Director Francis S Collins MD PhD ―We want to ensure that our biological materials and patents covering treatments or vaccines for neglected tropical diseases as with all diseases are available as broadly as possible to speed the development of new products for people who are most burdened by these diseases and WIPO ReSearch helps us to do this

The founding eight pharmaceutical companies WIPO BVGH and NIH are joined by a distinguished group of globally recognized institutions as provid-ers potential users and supporters of WIPO ReSearch (see annex) BVGH will manage the WIPO ReSearch Partnership Hub which will facilitate rela-tionships between the pharmaceutical company providers and new users

―In our role as administrator of the WIPO ReSearch Partnership Hub BIO Ventures for Global Health is excited to bring these new opportunities to neglected disease researchers around the world to accelerate their work in this area of critical unmet need said Don Joseph Chief Operating Officer of BVGH ―As both present and future providers evaluate their internal data and IP with the goal to provide focused information which they believe will best serve the neglected tropical disease research and development commu-nity WIPO ReSearch will build on previous RampD investments to speed the development of drugs vaccines and diagnostics for the neglected diseases that disproportionately impact people living in resource-poor countries Source WIPO

Page 9: Bio Outsourcing Asia: Volume 1 Issue 3 2011.pdf · TB drug trials. Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies

9

Partnerships Reaching Down the Value Chain In 2008 WuXi PharmaTech signed a three year deal with Pfizer Under the new collaboration agreement WuXi PharmaTech in partnership with Pfizer will establish ADME assays to provide in vitro screening services on com-pounds WuXi PharmaTech synthesizes for Pfizer (WuXi 2008) WuXi PharmaTech and Pfizer have previously collaborated on synthetic chemistry parallel medicinal chemistry ADME and bioanalytical services ―This new agreement further strengthens our already productive relationship with Pfizer one of our largest customers for many years and it is the direct result of our research capability and firm commitment to quality and customer sat-isfaction according to Ge Li PhD chairman and CEO of WuXi PharmaTech (GEN News 2008) In 2009 Pfizer and Crown Bioscience Inc (Crown) announced a collabora-tion to research and develop novel therapeutics for Asian cancers Under the terms of this agreement Crown will receive an upfront payment and re-search funding as well as milestone payments based on the achievement of preclinical and clinical goals The companies will work together to discover and advance multiple candidates for clinical development The work will take place at Crownlsquos new research facility located in Taicang (near Shang-hai) China (Pfizer 2009) ―I am delighted to be collaborating with Pfizerlsquos exceptional oncology group says Alex Wu CEO of Crown ―I am also very happy that Pfizer is focusing on and dedicating resources to address a very important unmet medical need for the Asian populations This new collaboration extends an already very successful partnership between Crown and Pfizer and further demonstrates Crownlsquos commitment to becoming an outstanding cancer re-search company in Asia (Pfizer 2009) Reaching out to the bottom of the pyramid MicuRx Pharmaceuticals Inc a biopharmaceutical company (with its presence in San Francisco US and Shanghai China) dedicated to the development of antibiotics to treat drug-resistant bacteria and Cumencor Pharmaceuticals Inc recently announced that the companies have entered a collaboration with Pfizer (NYSE PFE) to discover novel therapeutic agents to treat multi-drug resistant tuberculosis (MDR-TB) Cumencor Pharmaceuticals is a China-based biotechnology company applying MicuRxlsquos proprietary technology platform to discover and develop novel antibiotics for MDR-TB (PR Newswire April 2010) Under the terms of the agreement Pfizer will provide an upfront payment funding for the discovery and preclinical development of novel antibiotics to treat MDR-TB and payments linked to the development and commerciali-zation (including royalty payments on sales) of any antibiotics developed through the collaboration All collaboration research will be conducted at the ZhangJiang High-Tech Park in Shanghai China (PR Newswire April 2010) ―MicuRxlsquos novel approach to developing antibiotics for the treatment of drug-resistant bacteria and their existing technology know-how and exper-tise provide the basis for this collaboration said Steve Yang PhD Vice President and Head of Pfizers Asia Research and Development organiza-tion ―We expect that any compounds resulting from the collaboration will complement our portfolio of anti-infective agents and build our global pres-ence in the emerging pharmaceutical markets of Asia and beyond (PR

Newswire April 2010) Building Intellectual Capital in Asia through Open Innovation Pfizerlsquos open innovation strategy in Asia has a strong capacity development focusmdashnamely the development of intellectual capacity in Asia Beginning with a focus on health issues directly affecting the Asian patient Pfizer is not only devoting its resources to such diseases but through the ACRG will widely share pharmacogenomic information pertaining to lung and gastric cancers Supporting this endeavour are collaborations with the Korea Research Institute for Bioscience and Biotechnology (KRIBB) and the Samsung Medical Centre in Seoul Through its association with the Shanghai Institute of Biological Sciences (Sibs) and the planned Centers of Therapeutic Innovation Pfizer hopes to fund early stage joint discovery and clinical research in life sciences and new drug development Scientists in ba-sic research institutes will learn drug development skills from industry col-laborators while Pfizer scientists learn from and gain access to ideas of the academics Training opportunities in the area of intellectual property man-agement have been equally attractive to scientists Knowledge sharing knowledge development and exchange should support a vibrant life sciences sector in emerging markets in Asiamdashwith the goals of addressing chronic and neglected diseases that are endemic to Asia (Figure 1) References 1 Adams B Pfizer form liver cancer research partnership in Korea InPharm

July 2010 2 Jia H Though the funding is small the joint research is supported by

Pfizerlsquos global resources Chemistry World October-December 2010 3 MicuRx Pharmaceuticals and Cumencor Pharmaceuticals Partner with Pfizer

to Discover and Develop Antibiotics for Drug-Resistant Tuberculosis in China PR Newswire April 2010

4 Moffat B Global pharma eyeing Korean acquisitions as nation becomes test-bed Private Equity Korea May 2010

5 Pfizer And Crown Bioscience Announce A Collaboration To Research And Develop New Treatments For Asian Cancers Pfizer 2009 Pfizer Announces Partnership With Shanghai Institutes For Biological Sci-ences For Drug Discovery Activities BusinessWire July 2009

6 Pfizer Employs WuXi PharmaTech for In Vitro ADME Services GEN News November 2008

7 Pfizer Global Opportunities Annual Review 2010 8 Pfizer Launches Global Centers for Therapeutic Innovation a Network of

Research Partnerships With University of California San Francisco Pfizer November 2010

9 Publicly Available Genomic Database of Profiled Tumor Samples to Provide a Resource for Biomedical Researchers Worldwide Lillycom February 2010

10 Ratner M 2011 Pfizer reaches out to academiamdashagain Nature Biotechnol-ogy 29 3-4

11 Ray T PfizerSamsung Collaboration to Focus on PGx Strategies to Per-sonalize Liver Cancer Treatments in Korea Pharmacogenomics Reporter July 2010

12 Rockefeller joins Pfizerlsquos Global Centers For Therapeutic Innovation The Rockefeller University April 2011

13 WuXi PharmaTech Signs New Collaboration Agreement With Pfizer WuXi AppTec November 2008

14 wwwpfizercom 2011

Figure 1 A Broad Asian Open Innovation Strategy at Pfizer

Pfizerrsquos Open Source Strategy

Asian Cancer Research Group Inc (ACRG)

Reaching Down the Value Chain Alliance with WuXi

PharmaTech Alliance with Crown

Biosciences Alliance with MicuRx Pharmaceuticals

and Cumencor Pharmaceuticals

Ties to AcademiamdashIntellectual Capital Development

China Research and Development Center

Sibs Alliance KRIBB Alliance

Samsung Medical Centre Alliance CTI

10

11

A Networked Open Innovation Strategy The SpringFire Laboratory Network Technological complexities and market pressures have increased the degree to which companies are outsourcing to highly specialized technology driven companies However conventional outsourcing on a project-by-project ba-sis is strategically insufficient in this era A new type of structure-the virtual or networked outsourcing company provides access to customized solutions and is focused on long-term strategic partnering The formation of this new networked outsourcing company structure is driven by the need to access a broad range of expertise and the shift from narrowly focused specialized outsourcing companies to ―all inclusive outsourcing companies The virtual company is much more agile responsive to paradigm shifts and regulatory changes Accessible expertise can cover drug discovery from the earliest stage of lead compound identification and development through preclinical clinical phases manufacturing global registration post-marketing and line-extension studies The virtual outsourcing company enables access to a multidisciplinary team where the appropriate skill sets and expertise can be available at each stage of the biopharmaceutical value chain Appropriate teams are quickly assem-bled to manage issues as they arise In contrast large vertically integrated outsourcing companies can face many of the same problems associated with the fully integrated biopharmaceutical company including integration coor-dination and communication problems For each team the most suitable individuals from the most appropriate outsourcing firms within the network are selected on the basis of skills experience and fit with the project or product goals client and other individuals on the team Virtual outsourcing companies manage the various contracts budgets and relationships for their clients Lower project risk exists as dependency on a single supplier relation-ship is removed A virtual company must add value and not act simply as an intermediary be-tween contractors and large companies To operate successfully within the virtual environment requires strong industrial and academic networks effec-tive project management skills highly developed intellectual property man-agement skills and the ability to bring together partners to enable drug devel-opment Teams of experienced suppliers and experts are tailored to fulfill project or product requirements and are led by a dedicated senior project manager to ensure knowledge coordination and integration Forming the right partnerships and teams as well as managing operational processes in-crease the effectiveness of RampD outsourcing and ensure that the associated cost time and risk-sharing benefits are enjoyed by the Sponsor Models at Work The SpringFire Laboratory Network SpringFire Laboratory Network is a firm with the goal to match pharmaceu-tical medical device and biotech companies with clinical laboratories to pro-vide clinical trial testing solutions SpringFire Laboratory Network is unique in representing a network of independent non-competing high complexity laboratories collectively providing testing offerings to the clinical trial mar-ketplace The founders discovered that there was a strong desire by Sponsors and CROs to have choices in laboratories other than large laboratory companies with rigid requirements and little flexibility or educational institutions that were expensive and less responsive to external clients However there was little incentive for independent laboratories to pursue clinical trials testing given the large upfront costs to start a business development effort and the significantly different and lengthy sales cycle in clinical trials In an attempt to bridge the gap between the strong need for laboratory choices and the reluctance of independent laboratories to shoulder the bur-dens of clinical trials initiatives SpringFire Laboratory Network was estab-lished The network includes hand-selected independent laboratories to pro-vide testing services to clinical trial Sponsors and CROs The SpringFire team provides business development services for the network laboratories as well as expert knowledge around project management and clinical trial-specific operations The laboratories are non-competing and as such they share costs and best practices with one another without competing for the work ―The clinical trial marketplace has a need for esoteric laboratories to respond to its ever-expanding requests states Jim McClintic Managing Partner of SpringFire Laboratory Network

Selecting and Matching Network Participants SpringFire Laboratory Network is committed to a successful outcome for each drug or device development project The network of laboratories is made up of hand-selected ―Centers of Excellence The affiliated laborato-ries provide solutions in sub-specialized anatomical pathology and highly specialized clinical diagnostic testing along with state of the science micro-array testing SpringFirelsquos core team works with all affiliated laboratories to ensure their internal operations meet or exceed the unique regulatory and data manage-ment needs of clinical trials Each laboratory has demonstrated their abilities to provide customized quality results for clinical investigations on an inter-national basis The SpringFire affiliated laboratories are highly regarded in their specialized areas of testing expertise Each affiliate laboratory is evalu-ated to determine their fitness for work in the clinical trials arena A variety of characteristics are considered during a 2-day on site assessment including

Past clinical trial experience Quality laboratory processes Scientific and medical leadership Platform and technology maturity Project management Storage space options Data management capabilities Commitment to providing quality testing to clinical trials Sponsors

or CROs Since most of the laboratories are non-competing the matching process is usually based on the services requested and which lab provides those ser-vices In the event that more than one laboratory provides the requested tests or services SpringFire works with the laboratory that provides the most comprehensive set of tests or services In the event that no single lab performs all of the testing SpringFire will facilitate for two or more of the network laboratories to work together on a study Current Members of the Network SpringFire Laboratory Networklsquos current member laboratories are based in North America The Network provides testing services for both domestic and international study sites and is open to working with laboratories and sponsors around the globe Current members include

With a combined menu of more than 1000 specialty tests SpringFire offers Sponsors and CROs expertise and testing services in numerous therapeutic areas including anatomical pathology coagulation advanced lipids molecu-lar genetics and womenlsquos health The SpringFire network of laboratories col-lectively represent over 90 years of experience in the clinical marketplace while successfully completing more than 250 clinical trials Governance of the Network The SpringFire team is much more than business development The team works closely with each laboratory before during and after the study From the start the team works with each laboratory to build a competitive and timely proposal With the awarding of a contract the SpringFire team re-views and assists with negotiations and contract development During the study start-up phase the team facilitates on-going communications and lo-gistics to ensure the effective completion of tasks including routinely follow-ing up with both the laboratory and Sponsor or CRO to ensure good com-munication and suitable quality laboratory services When the study is con-cluded all parties are provided with a summary and an opportunity to share their experiences thoughts and ideas on the study and the laboratory ser-vices (Figure 1)

Laboratory Specialization

D-Path Dermatopathology

GI Pathology Gastrointestinal and liver pathology

ITxM Diagnostics Coagulation testing

Atherotech Diagnostics Advanced lipids

Baylor College of Medicinersquos Molecular Genetics Laboratories

Pharmacogenomics cytogenetics and medical genetic diagnostics

Baylor College of Medicinersquos Cancer Genetics Laboratory

Cancer-related genetics testing

12

Figure 1 Interactions in the SpringFire Laboratory Network Knowledge management is vital both to the effective working of the project team but also to the efficient transfer of information to and from the Sponsor as well as to external audiences such as site investigators regulatory authorities and potential licensees Outsourcing multiple stages of the drug product life cycle is critical for those companies that require access to expertise and technology in a rapidly chang-ing paradigm without the risk and cost associated with internal development Both young and small biotechnology companies and large traditional phar-maceutical companies can benefit from the model of drug discovery and development offered by organizations such as the SpringFire Laboratory Network

SPRINGFIRE

CORE TEAMPartner Selection

Best Practice Sharing

Baylor College of

Medicines

Cancer Genetics

Laboratory

GI Pathology

D-Path

ITxM Diagnostics

Baylor College of

Medicines

Molecular Genetics

Laboratories

Atherotech

Diagnostics

SPONSORCRO

PARTNER

MATCHING

GOVERNANCE

LESSON

KNOWLEDGE

TRANSFER

UPCOMING BIO PARTNERSHIPS ASIA 2012 CALENDAR

EDITORIAL

TRENDS AND ANALYSIS Articles that run 1500-2000 words and explore trends across the value chain describe opportunities in emerging Asian markets outline policy changes enabling partnerships in these markets and discuss the management of such partnerships

CASE STUDIES Company case studies that run 500-1000 words and explore partnerships across the drug discovery and development value chain

Submit text and electronic images with a resolution of 300 dpi or better We cannot guarantee placement in a particular issue The staff may schedule an entry to coincide with a certain issues editorial theme

COMPANY PROFILES Service provider profiles Send the following information Company name

contact information description services offered markets served and partnerships sought Also send a company logo

TECHNOLOGY PROFILES Technology licensing opportunities Send the following information Technology background areas of application competitive advantages stage of development intellectual property status partnerships sought and contact

information Please forward an image if applicable

NEWS RELEASES Updates on deals partnerships opportunities Send a press release and a company logo

MONTH FEATURE STORIES TRENDS AND ANALYSIS

CASE STUDIES

February 2012 New Models of Open Innovation in Asia

Business Model Analysis

Company Profiles

May 2012 Cluster Formation and Participation in Asia

Case Analysis Cluster Profiles

August 2012 Partnerships and Biopharmaceutical Capacity

Development in Asia

Case Analysis Company Profiles

November 2012 Transferring the Lessons from Asia to the Bottom of

the Pyramid

Lessons from India China Singapore

Middle East

Company Profiles

13

14

15

Convergence Innovation Development at the Intersection of Disciplines Organizations and Products Convergence Innovation is the paradigm where discovery and technology creation occur at the intersection of multiple disciplines and organizations Specifically convergence between the chemical biological cognitive physi-cal and information sciences is evident Firms and researchers will cross the boundaries between these disciplines to create technological value--finding solutions to address health environmental and energy challenges In parallel will be emergence of new models of collaboration to enable knowledge crea-tion and knowledge dissemination Central to Convergence Innovation will be a determination of the common value of knowledge versus the private value of knowledge across the associated disciplinesmdashwith the goal of ad-vancing and commercializing technology Levels of Convergence Convergence can be considered at three levelsmdashnamely convergence in the sources of knowledge for research convergence in organizational forms to enable technology development and convergence at the product level with the embodiment of knowledge in complementary products For example while nanotechnology research has been shown to have a dominant focus on material sciences additional analysis has demonstrated that nano-based research increasingly draws its knowledge from other areas (Porter and Youtie 2009) Specifically Porter and Youtie (2009) reveal that while nano-based publications center on materials science (including chemistry and physics) nano-based research also significantly involves many other fields including biomedical sciences computer sciences and mathematical sci-ences environmental sciences and engineering Citation patterns further show extensive referencing across macro-disciplinesmdashwith a preponderance of references in nano-related articles to research outside the macro-discipline in which the article is published (Porter and Youtie 2009) Conse-quently at this level of convergence the sharing and absorption of research across the involved disciplines will be necessary for downstream value crea-tion (Figure 1) Figure 1 Convergence at the Disciplinary (Knowledge Sources) Level At the next level of convergencemdashthe organizational levelmdashthe interaction between technological convergence and models of open innovation is be-coming apparent Licensing mergers acquisitions and strategic alliances such as joint ventures as well as new structures such as innovation networks and open innovation communities represent alternative strategies that may be used to acquire or access the necessary knowledge or assets for discovery and development From a convergence perspective the opportunity exists for a (public or private) stakeholder to not only interact with other (public andor private sector) stakeholders through simple one-to-one traditional collaborations but with many stakeholders through more complex mecha-nisms such as consortia crowdsourcing and other such open innovation communities For example the need for shared scientific expertise and large scale infrastructure in both nanotechnology and biotechnology is thought to be responsible for the development of networks spanning both fields (Figure 2) The pervasiveness of enabling technologies such as information and communications technology (ICT) have encouraged innovation net-works to increase in dominance and have lead to the blurring of organiza-tional boundaries among research organizations (Powell Koput and Smith-Doerr 1996 Roijakkers and Hagedoorn 2006) In such collaborations the opportunity to assume multiple roles exists to enable RampD including the collaborator who shares knowledge with one or many partners for the pur-poses of discovery or development the incubator who provides funding or expertise to other stakeholders to support venture development the enabler

who provides access to tools equipment large scale infrastructure or other services to support product development and the orchestrator who manages the network of partners with either the objective of knowledge creation or knowledge application (Melese Lin Chang and Cohen 2009) At this level of convergence there is the critical need to closely examine the management processes associated with collaboration as the collaborative strategies have not only grown in relevance but also in terms of impact and the number of participants involved

Collaboration Model

Access

Simple (One to One) Complex (Many to Many)

Collaboration Complexity

Figure 2 Convergence at the Organizational Level Open Access=Participation Open Closed Access=Exclusive Partnership

Simple=One to One Link between Partners Complex=Many Links between Several Partners PPP=Public Private Partnership JV=Joint Venture

The location in the above grid determines the extent to which the collabora-tion is open or closed and between one few or many partners

Finally the outcomes from any collaborative interaction will increasingly lead to convergence at the product level In this case multiple components or products will be packaged together to enhance the value over individual product offerings (Figure 3) Such bundled products will have the goal of simultaneously meeting several technological needs be it for biomedical treatment as seen in the use of nano-based diagnostics paired with therapeutics in agriculture or environmental applications as seen in the use of sensors to measure pathogens in food and the environment or the use of nanospheres to selectively detect harmful materials in water and then used for detoxification and in the creation of novel energy technologies as seen in the use of catalysts in particles for biodiesel synthesis to name a few (Schmidt 2007) At the product level effective intellectual property man-agement strategies and coordination between regulatory agencies will be paramount

Figure 3 Convergence at the Product Level

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

COGNITIVE

PPP JV

MampA

Consortium Innovation Network

Crowdsourcing Open Source Network

Licensing

Proprietary Open Innovation Community

Closed

Open

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

Nanomaterials

Nanodevices

Nanoelectronics

Nanosensors

Bioinformatics

Biosensors

Tissue Engineering

Drug Delivery

Diagnostics

Drug Delivery

Chemical Catalysis

Nanofiltration

Chemical Sensors

Neuron Network

Prostheses GenerationCOGNITIVE

16

The Impact of Convergence At each level of convergence there are several complexities that either im-pact the management of stakeholder interaction or the management of the knowledge based assets generated through such interactions For example given the expected intersection between disciplines knowledge complexities including varied types (such as biological information and biological struc-tures chemical knowledge and structures physical knowledge and struc-tures) and forms of knowledge (disembodied and embodied) will drive the need for a common platform for knowledge integration validation and standardization Beyond integration of knowledge it is expected that teams of biological chemical and physical scientists will increasingly form to de-velop and bridge together the necessary tools and equipment for RampD ac-tivities (Ideker Galitski and Hood 2001 Kitano 2001 Kautt Walsh and Bittner 2007 Boardman 2008 Boardman and Ponomarioy 2009) We must also consider the impact of convergence on the downstream rights to de-velop products Lemley (2005) discusses that unlike other industries in which patentees are actual or potential participants in the downstream mar-ket a significant number of corporate patentees will increasingly own rights not just in the industry in which they participate but other industries as well Analysts fear that over-patenting alongside the large shadow of such patents could not only fragment technology but could discourage stakeholders in a number of industries from attempting to develop products incorporating infringing technologies (Lemley 2005) It is important to consider that as multiple disciplines increasingly working together each discipline will have its own priorities and conventions regarding knowledge dissemination and knowledge appropriation (Hilgartner 1996) One discipline may signal its success during knowledge generation through the enclosure and the sale of disembodied knowledge Another discipline may measure its success exclu-sively by the embodiment of knowledge in medical products (Hilgartner 1996) While patent pools are a suggested solution to the possible patent holdups (DlsquoSilva 2009) it has been proposed that as has occurred in the genomics arena innovation-based networks with rules regulating the devel-opment and appropriation of critical technology building blocks could not only circumvent the product development and legal problems of the past but will also bring together the requisite intellectual and physical capital (DlsquoSilva 2009 Allarakhia and Walsh 2010) A Template for Managing Interactions and Knowledge-Based Assets Governance strategies must seek to align the incentives for participation in collaborative activities for multiple stakeholders The use of rules to define actions communication mechanisms used to enable and monitor actions and to share the outcomes are all critical to ensure that goals are achieved Structure and Roles It is expected that the chosen collaboration modemdashone to one one to many or many to many collaboration and objectives set for the collaborationmdashpooling of assets generation of new assets andor pol-icy creation will impact the type of participants that will join The organiza-tional structure chosen will be determined in part by the attributes of the resources to be contributed or developedmdashinformation supporting tools technology as well as the location of participantsmdashwith linkages established through physical clustering or virtual networking Thereafter the organiza-tion of participants may be a function of technological expertise geographic location or project-based management expertise Resource Types and Outcomes Participants will contribute several inputs including funding equipment and human capital The resulting outcomes include data materials tools and technology Facilities store artifacts in or-der to make them accessible Traditional facilities have been libraries and archives containing books journals and papers New technologies have made electronic distributed information possible Artifacts are discreet ob-servable nameable representations of ideas such as articles research notes books databases maps computer files and web pages (Foray 2004 Hess and Ostrom 2006) In the context of nanotechnology databases material and model repositories accessible laboratories that aggregate equipment and tools for nanotechnology development are varied options to manage the outputs Hence any outcomes analysis should seek to determine the success of collaboration including the amount of data produced and accessed the material generated housed and accessed the tools created and used and the technology produced by participants Governance Internal rules or mechanisms used to promote cooperative be-haviour can include formalizing the requirements to join the initiative en-suring frequent interactions encouraging communication between partici-pants monitoring and punishing defection and setting the boundary for access to resources An authority that regulates access to resources can en-sure that a fair and efficient governance strategy is used (Ostrom Gardner and Walker 1994) While access generally refers to disembodied assets such

as data extraction can involve the removal andor use of physical materials models and tools Knowledge use and access can be governed by the fol-lowing rules sharing with partners only (closed access) sharing with part-ners and the public at large (open access) and intellectual property assign-ment potentially on information materials tools and technology with the specification of rights to use based on licensee type geography or target market for product launch Creating Value The Path Forward in The path forward will require the creation of supporting policies encourag-ing multi-disciplinary collaboration At a national level several governments have recognized the importance of innovation networks to develop capacity and compete on an international level Consequently policies are now pro-viding more RampD funding and incentives encouraging the formation of multi-sectoral networks (Corley Boardman and Bozeman 2006) New prod-ucts of convergent technologies will necessitate cooperation among regula-tory bodies with the coordination of information flow coordination of du-ties and increased harmonization between international regulatory bodies (Castle et al 2006 Drezek and Tour 2010) To avoid the mistakes of the past policies outlining guidelines for the management of intellectual prop-erty rights can ensure that stakeholders will correctly assess the common value of knowledge versus the private value of knowledgemdashresulting in the transition from open knowledge to appropriated knowledge with the objec-tive of pursuing (unilateral or collaborative) downstream product develop-ment References 1) Allarakhia M amp Walsh S Managing knowledge assets under conditions of radical change The case of the pharmaceutical industry Technovation 31 105-117 (2011) 2) Boardman P Beyond the stars The impact of affiliation with university biotechnology centers on the industrial involvement of university scientists Technovation 28 291-297 (2008) 3) Boardman Pamp Ponomarioy B University researchers working with pri-vate companies Technovation 29 142-153 (2009) 4) Castle D Loeppky R Saner M Cline C Dalgleish J amp Wojnik V Convergence in Biotechnology Innovation Case Studies and Implications for Regulation (University of Guelph Guelph 2006) 5) Corley EA Boardman PC amp Bozeman B Design and the manage-ment of multi-institutional research collaborations Theoretical implications from two case studies Research Policy 35 975-993 (2006) 6) Drezek RA amp Tour JM Is Nanotechnology Too Broad to Practice Nature Nanotechnology 5 168-169 (2010) 7) DlsquoSilva J Pools thickets and open source nanotechnology European Intellectual Property Review 31 300-306 (2009) 8) Foray D The Economics of Knowledge (MIT Press Cambridge 2004) 9) Hess C amp Ostrom E Understanding Knowledge as a Commons From Theory to Practice (MIT Press Cambridge 2006) 10) Ideker TT Galitski L amp Hood LE A new approach to decoding life Systems biology Annual Review Genomics and Human Genetics 2 343-372 (2001) 11) Kautt M Walsh S amp Bittner K Global distribution of microndashnano technology and fabrication centers A portfolio analysis approach Technol-ogy Forecasting and Social Change 74 1697-1717 (2007) 12) Kitano H Systems biology Toward systems-level understanding of bio-logical systems Foundation of Systems Biology 1-29 (MIT Press Cam-bridge 2001) 13) Lemley MA Patenting nanotechnology Stanford Law Review 58 601-630 (2005) 14) Melese T Lin SM Chang JL amp Cohen NH Open innovation net-works between academia and industry an imperative for breakthrough therapies Nature Medicine 15 502-507 (2009) 15) Ostrom E Gardner R amp Walker J Rules Games and Common-Pool Resources (The University of Michigan Press Ann Arbor 1994) 16) Porter AL amp Youtie J How interdisciplinary is nanotechnology Jour-nal of Nanoparticle Research 11 1023-1041 (2009) 17) Powell WW Koput KK amp Smith-Doerr L Inter-organizational col-laboration and the locus of innovation Network of learning in biotechnol-ogy Administrative Science Quarterly 41 116-145 (1996) 18) Roijakkers N amp Hagedoorn Inter-firm RampD partnering in pharmaceu-tical biotechnology since 1975 Trends patterns and networks J Research

Policy 35 431minus446 (2006) 19) Schmidt K Project on Emerging Nanotechnologies (2007)

17

18

Beyond Cost-Savings Hidden Considerations for Conducting Clinical Trials in Asia

By Jessica Liu General Manager ChinaNorth Asia INC Research and Garth Tierney Regional General Manager Australia and South East Asia INC Research

Abstract Pharmaceutical industry sponsors are well-aware of the cost bene-fits of conducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the pri-mary criteria by which sponsors should select the Asian regions in which they will conduct their clinical trials Other important considerations include disease incidence treatment standards minimizing variability maximizing protocol adherence regulatory factors politics cultural considerations and ethical concerns While global spending on medicines is expected to grow three percent to five percent over the next five years spending in the ―pharmerging markets is expected to double1 The desire to access this fast-growing consumer base is the primary reason large pharmaceutical companies are increasing their clinical presence in emerging countries like China according to a report from investment bank-ing firm William Blair2 But small to midsize drug makers are also moving into emerging markets driven primarily by cost differentials China can offer as much as a 50 percent cost advantage compared to the United States or Europe as can Thailand the Philippines or Malaysia Most countries in Asia are at least 20 percent to 30 percent more cost-efficient than their western counterparts although there are notable exceptions such as South Korea and Japan Pharmaceutical industry sponsors are well-aware of the cost benefits of con-ducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the primary criteria by which sponsors should select the Asian regions in which they will con-duct their clinical trials Other important considerations for conducting a trial in Asia include disease incidence and treatment standards the potential to minimize variability and maximize protocol adherence regulatory and political factors and cultural and ethical considerations Disease Incidence and Treatment Standards With more than four billion people Asia offers sponsors a deep pool from which to draw clinical trial participants Indeed for sponsors conducting late-stage clinical trials in indications such as diabetes or cardiovascular dis-ease which can require thousands of patients establishing Asian trial sites to tap into that pool is critical The key is determining which Asian countries will best match each triallsquos unique patient requirements For sponsors most concerned with enrolling large numbers of patients into a trial highly populous countries such as India China Indonesia Japan the Philippines Thailand and Malaysia may be the best fit A recent CRO survey revealed that China is the leader in patient recruitment for the Asia-Pacific region followed by India and South Korea3 However sponsors need to be aware that the region is still expanding and a vast population does not equate to vast number of ICH GCP trained sites in the larger countries of China and India This can be a limiting factor in gaining access to the best sites for certain indications If on the other hand a sponsor is conducting a Phase I trial they should know that certain Asian countries have specific regulatory requirements for approval of a clinical trial application (CTA) that can add complexity to the process Others like Australia specialize in Phase I studies thanks to their fast and straightforward approval processes high-quality clinical practices and variety of many academic and commercial clinical trials centers4 Selecting an appropriate region for trial sites also depends on the incidence of the target disease in each countrylsquos population Highly-developed Asian countries have a higher incidence of diseases common in the West such as diabetes and cardiovascular disease while diseases such as tuberculosis are more common in Southeast Asia Some countries like India have diverse patient populations afflicted with diseases of both the developing and devel-oped world

When it comes to standards of care certain diseases like breast cancer lung cancer and diabetes are treated in much the same way in Asia as they would be treated in the Western world But for many other indications medical practice standards differ both from East to West and between the different Asian regions Sponsors seeking to meet specific market regulatory approval will need to mirror Western standards-of-care and as such should consider focusing trial sites to Australia New Zealand Singapore Taiwan Hong Kong and South Korea But differing standards of care can also provide unique opportunities Asia offers relatively more patients for first-line and second-line cancer drug evaluation than the West where such patient stores have been largely exhausted Risk Mitigation Sponsors should be prepared that some Asian trial sites ndash even those that have adapted Western-style medical practices ndash may require more assistance when it comes to following protocol and differentiating between medical practice and clinical research Not all Asian sites will have the infrastructure for a clinical trial A good CRO partner will work with a sponsor and site investigators to identify any infrastructure gap ndash such as a dedicated com-puter fax or freezer ndash and develop plans to ensure sites have the essentials to deliver a study efficiently Data integrity is another area that sponsors and CROs need to focus atten-tion It is critical to reduce variability by ensuring all monitoring and site staff are well trained Monitors need to understand how to identify and pro-actively resolve issues early on to minimize long-term issues with patient recruitment and data collection They should understand how to recognize early warning signals and not overreact to red herrings Investigators and site monitors also need to be trained in adverse event reporting to ensure that they meet local regional and global clinical trial safety reporting Sponsors must ensure monitoring visits are being conducted regularly as such visits make it more likely that recruitment and data integrity issues will be detected early and managed in a timely and effective manner Equally im-portant site staff needs to be as consistent as possible Finally sponsors need to implement a proven system for data reporting as variability in the data collection process may decrease the evaluable patient pool in the trial decreasing the sponsorlsquos chances to establish statistical sig-nificance or detect a rare safety signal Regulatory and Political Factors While regulatory bodies in South Korea and Taiwan as well as in Singapore have adopted an FDA-based approach each Asian country has its own regulatory idiosyncrasies In China for example reviews take on a project-based nature and sponsors should never assume that what worked in one application will be directly applicable to another No matter how harmo-nized Asia may appear the cookie-cutter approach simply doesnlsquot work However the fact that regulatory policies are still evolving in certain Asian countries provides a unique opportunity to sponsors the opportunity to in-fluence those policies There are no formal guidances or rules covering this topic but it is a real opportunity The recent economic downturn has prompted finance ministers in many countries to more closely analyze the cost of healthcare and they are realizing that good drugs can decrease their overall costs To ensure new drugs are available in their countries they have become increasingly eager to support clinical trials and they are engaging in conversations with sponsors about how approval pathways might be con-structed that take healthcare economics into consideration For example if a sponsor works closely with regulatory agencies to design the right preclinical and Phase I trials could a single Phase IIIII trial be sufficient for approval in some indications Are so many repetitive studies really necessary Is the requirement or guidance relevant to the current technology If a sponsor can prove to the government that a certain disease is currently costing 50 cents per person per day to treat and a new drug would change treatment paradigms and reduce that cost to a penny that is a compelling argument Not compelling enough to compromise safety or effi-cacy but compelling enough to expedite things along by partnering to agree upon the most appropriate pathway to approval While some regulatory agencies may not be as comfortable with the idea of allowing more flexibility and customization in the clinical trial design many are open to reducing bu-reaucracy and the associated time delays for CTA approval ndash particularly when there is potential to significantly impact health economics Govern-ments may provide commercialization support including funding to enable

19

development of new technologies and testing methods There may also be a higher priority given to certain CTA applications in the review queue Australia and Singapore have adopted a more simplified regulatory process and offer a notification scheme rather than formal review by the regulator South Korea and Taiwan are working to ease regulations and facilitate pro-tocol reviews Countries such as China have lengthy regulatory approval processes however there are some early indications that this may be de-creasing India is currently experiencing slower regulatory paths Interest-ingly some Asia Pacific countries that have historically been considered ―easy targets for clinical trials are increasing their regulations While there is much potential to collaborate with regulatory bodies in Asia these are not the only government agencies with which a sponsor must work Each country has its own policies on insurance regulations import licenses and other factors that affect a sponsorlsquos ability to establish and run clinical trial sites Each should be reviewed before selecting countries in which to establish trial sites Cultural and Ethical Considerations Language barriers can be easily overcome by CRO partners with offices across Asia and they are the least of a sponsorlsquos worries when it comes to cultural differences More pressing are issues such as the fact that some Asian researchers may believe that their participation in a trial gives them the right to publish data on their findings while sponsors require at least some degree of control over the publication of trial data Such issues are best managed by thorough communication prior to the start of enrolment In certain countries cultural factors may positively impact a trial Ethical factors may also weigh on a sponsorlsquos decision to conduct trials in certain Asian countries There are certain diseases that present a serious unmet medical need specifically within Asian populations such as foot-and-mouth disease and such indications obviously lend themselves to Asian clinical tri-als Yet if a sponsor has no plans to launch a drug in certain Asian countries perhaps because the populations of those countries would not be able to afford the drug then conducting clinical research in those countries may present ethical challenges For the most part however sponsors are eager to launch their drugs into the rapidly growing Asian healthcare markets and Asian clinical trials are necessary to support this endeavour As mentioned initially the cost advan-tages of conducting clinical trials in Asia cannot be ignored as both large and small companies face pressures on their bottom lines But while costs are important they are not the only consideration About the Authors Jessica Liu MD is the general manager for Clinical Operations in China and North Asia at INC Research She previously managed international pro-jects out of the European headquarters office for a global CRO in Brussels Belgium Prior to that she worked for 15 years in the Chinese affiliates of several global pharmaceutical companies overseeing clinical operations pro-ject management and medical affairs She conducted and managed Phase I-IV clinical studies across multiple therapeutic areas Dr Liu started her ca-reer as a resident physician in the endocrinology Department of the Peking Union Medical College Hospital (PUMCH) in Beijing China She received her Medical Doctorate from the University of Beijing (China) and has a Di-ploma in Pharmaceutical Medicine from the University of Basel (Switzerland) Dr Liu is based in Beijing She can be reached at jialiuincresearchcom Garth Tierney is the regional general manager for Australia and South East Asia for INC Research Garth previously founded and managed Trident Clinical Research a CRO based throughout Australia New Zealand and In-dia After 14 years of operation Trident was acquired by INC Research in June 2011 Prior to founding and managing Trident Clinical Research Garth worked for 8 years in the clinical research industry in various senior manage-ment and operational management roles across several companies including a global CRO an Australian pharmaceutical company and two global phar-maceutical companies Garth has a pharmacology (University of NSW) and business administration (University of Adelaide) background and worked in hypertension research for several years before joining the pharmaceutical industry During this time Garth published various papers and won the Whelan prize (awarded by ASCEPT) He can be reached at gtierneyincresearchcom

References 1 IMS IMS Institute Forecasts Global Spending on Medicines to Reach

Nearly $11 Trillion by 2015 May 18 2011 2 Wm Blair Pharmaceutical Outsourcing Industry Analysis Jun 10

2010 3 CyberMedia Research-BioSpectrum Asia-Pacific CRO Survey 2011 4 Clinical Trials Action Group Report Commonwealth of Australia

2011 CPTR Yields Progress New Six-Way Agreement has Goal to Speed Development of TB Drug Combinations November 11 2011 The Critical Path to TB Drug Regimens (CPTR) announced this November an innovative agreement between AstraZeneca Bayer Sanofi Tibotec TB Alliance and the World Health Organization to share information on tuber-culosis (TB) compounds within their respective drug pipelines to quickly identify and work together to develop the most promising TB drug regimen regardless of sponsor The partnership facilitates a more collaborative ap-proach to TB drug development with the objective to dramatically speed the development of shorter safer and more effective multi-drug treatments that are urgently needed to control the global TB pandemic The agreement will enable information-sharing around scientific and clinical data on TB compounds in clinical development By sharing data partners can identify opportunities to test their compounds in combination speeding availability of future TB regimens The collaboration includes the majority of global sponsors with TB drugs in clinical development Under the agree-ment if two or more organizations choose to work together to further de-velop a regimen they will enter into a separate arrangement that defines the rights and responsibilities of each party CPTR is working closely with regulatory scientists at the US Food and Drug Administration European Medicines Agency and other regulatory bodies in China India and some countries in Africa to develop the tools that are needed to allow testing of new TB drugs in combination cutting years off the development timeline Under the leadership of the Critical Path Institute CPTRlsquos Regulatory Science Consortium focuses on establishing consensus on preferred standards methods and tools for developing new TB drug regimens and obtaining official acceptance from international regulatory authorities Source TB Alliance Pfizer Establishes the Cambridge Research Center September 01 2011 Pfizer Inc recently announced it has entered into a 10-year lease agreement with the Massachusetts Institute of Technology (MIT) for more than 180000 square feet in a new building under development in Cambridge Massachusetts Located at 610 Main Street South in Kendall Square the new site will be the future location of Pfizerlsquos Cardiovascular Metabolic and En-docrine Disease (CVMED) and Neuroscience Research Units The reloca-tion of the two Research Units will substantially boost Pfizerlsquos footprint in Cambridge making it the second largest biopharmaceutical company in Massachusetts in terms of jobs ―We were very deliberate in our choice to move to Cambridge MA as a key part of our RampD strategy By expanding our presence in one of the worldlsquos great centers of scientific and medical innovation we will provide the best environment for our researchers to invent the next generation of medicines in areas of greatest need such as Alzheimerlsquos disease schizophrenia diabe-tes and cardiovascular disease said Rod MacKenzie senior vice president and head of PharmaTherapeutics Research amp Development ―We intend to foster productive formal and informal collaborations between our drug dis-covery experts and the outstanding scientists of Cambridgelsquos world class institutions This is a very exciting period in Pfizer RampD Source Pfizer

20

21

Continued from page 19hellip UK Academia Given Access to Selected AstraZeneca Compounds December 11 2011 Following a unique landmark agreement between AstraZeneca and the UK Medical Research Council (MRC) a wide range of compounds will be made available to UK medical researchers next year In a new type of collabora-tion academia will be granted access to 22 clinical and preclinical com-pounds developed by AstraZeneca Though making individual compounds available to external academic investigators is not unusual the breadth and open-innovation nature of this collaboration is unique because it provides unprecedented access to well characterised clinical and preclinical candidate molecules to investigators across all UK academic institutions There is significant unmet need in diseases both within and outside Astra-Zenecalsquos current research focus This collaboration builds on the sizable in-vestment made in developing candidate drugs within AstraZeneca by help-ing researchers to explore their potential more broadly with the hope that they will find new future medicines It also helps AstraZeneca explore areas of unmet patient need beyond its current disease area focus leveraging great external science in a way that is highly flexible and cost effective The New Opportunities Innovative Medicines Unit (iMed) in AstraZeneca has been central in establishing this research collaboration with the MRC and has acted as the interface with the other AstraZeneca iMeds to agree which compounds would be eligible Clive Morris VP New Opportunities iMed said that ―This Open Innova-tionlsquo approach brings together the strengths of AstraZeneca the MRC and UK Academia into what I hope will be a really potent mix bringing forward really exciting new ideas that could transform our understanding of some diseases It highlights an openness to new scientific thinking and also places external scientific collaboration right at the heart of what we do It is also an excellent way to broaden our portfolio of activities into new diseases for As-traZeneca leveraging the wealth of expertise across UK academia AstraZeneca and the MRC will invite preclinical and clinical research pro-posals from across the UK academic community to investigate the com-pounds in a range of diseases with a view to finding new treatment oppor-tunities AstraZeneca will work with the academic collaborators to develop the best scientific proposals and the MRC will select the highest quality pro-posals for funding awarding up to pound10 million in total to fund the success-ful proposals The successful applicants will then work collaboratively with AstraZeneca to deliver the studies David Brennan AstraZenecalsquos Chief Executive Officer said ―Innovative collaborations are playing a crucial role in finding ways to unlock the poten-tial of new treatments The UK has a strong heritage of research excellence in life sciences We hope that in sharing these valuable compounds with aca-demic scientists through the MRC new discoveries will be made by explor-ing additional uses of these compounds Source AstraZeneca WIPO ReSearch A Neglected Tropical Diseases Initiative October 26 2011 The World Intellectual Property Organization (WIPO) in an unprecedented collaboration with leading pharmaceutical companies and BIO Ventures for Global Health (BVGH) recently launched the WIPO Re Search a new consortium where public and private sector organizations share valuable in-tellectual property (IP) and expertise with the global health research commu-nity to promote development of new drugs vaccines and diagnostics to treat neglected tropical diseases malaria and tuberculosis In WIPO ReSearch Alnylam Pharmaceuticals AstraZeneca Eisai GlaxoS-mithKline MSD1 Novartis Pfizer and Sanofi are collaborating with WIPO BVGH the US National Institutes of Health (NIH) and multiple non-profit research organizations These include the California Institute of Technology the Center for World Health amp Medicine the Drugs for Ne-glected Diseases initiative Fundaccedilatildeo Oswaldo Cruz (Fiocruz) Massachu-setts Institute of Technology Medicines for Malaria Venture PATH the South African Medical Research Council the Swiss Tropical and Public Health Institute the University of California Berkeley and the University of Dundee (UK)

―WIPO ReSearch is a ground breaking example of how a multi-stakeholder coalition can put IP to work for social benefit said WIPO Director Gen-

eral Francis Gurry ―By joining WIPO ReSearch companies and researchers commit to making selected intellectual property assets available under roy-alty-free licenses to qualified researchers anywhere in the world for research and development on neglected tropical diseases malaria and tuberculosis This commitment should accelerate the development of medicines vaccines and diagnostics for these diseases

According to the World Health Organization (WHO) neglected tropical diseases today impair the lives of an estimated 1 billion people The WHO provides technical advice to WIPO on public health issues and research pri-orities as appropriate

By providing a searchable public database of available intellectual property assets information and resources WIPO ReSearch facilitates new partner-ships with organizations that conduct research on treatments for neglected tropical diseases malaria and tuberculosis

Membership in WIPO ReSearch as a user provider or supporter is open to all organizations that endorse adhere to and support the projectlsquos Guiding Principles These Guiding Principles include the commitment that IP li-censed via WIPO ReSearch will be licensed on a royalty-free basis for re-search and development on neglected tropical diseases in any country and on a royalty-free basis for sale of neglected tropical disease medicines in or to least developed countries

―The innovative pharmaceutical industry has an important part to play in addressing unmet medical needs and increasing access to our collective pro-prietary information will help advance research into treatment options for these underserved diseases said David Brennan CEO of AstraZeneca and President of the International Federation of Pharmaceutical Manufacturers amp Associations (IFPMA) ―WIPO ReSearch has the potential to make a real impact on global health which is why we are proud to make all patents owned by AstraZeneca available to this important initiative for promoting the research and development of treatments for neglected tropical diseases anywhere in the world

The WIPO ReSearch database includes a wide variety of contributions rele-vant to malaria tuberculosis and other neglected tropical diseases including individual compounds and associated data screening hits from compound libraries and expertise and know-how in pharmaceutical research and devel-opment In addition WIPO ReSearch offers the opportunity for neglected tropical disease researchers to work directly with scientists at pharmaceutical companies to advance RampD on these diseases As WIPO ReSearch moves forward offerings from current partners will continue to grow and new pro-viders are expected to join to add to the wealth of information compounds and services available

―NIH licenses its patents to enable the private sector to develop diagnostics therapeutics and devices that improve public health said National Insti-tutes of Health Director Francis S Collins MD PhD ―We want to ensure that our biological materials and patents covering treatments or vaccines for neglected tropical diseases as with all diseases are available as broadly as possible to speed the development of new products for people who are most burdened by these diseases and WIPO ReSearch helps us to do this

The founding eight pharmaceutical companies WIPO BVGH and NIH are joined by a distinguished group of globally recognized institutions as provid-ers potential users and supporters of WIPO ReSearch (see annex) BVGH will manage the WIPO ReSearch Partnership Hub which will facilitate rela-tionships between the pharmaceutical company providers and new users

―In our role as administrator of the WIPO ReSearch Partnership Hub BIO Ventures for Global Health is excited to bring these new opportunities to neglected disease researchers around the world to accelerate their work in this area of critical unmet need said Don Joseph Chief Operating Officer of BVGH ―As both present and future providers evaluate their internal data and IP with the goal to provide focused information which they believe will best serve the neglected tropical disease research and development commu-nity WIPO ReSearch will build on previous RampD investments to speed the development of drugs vaccines and diagnostics for the neglected diseases that disproportionately impact people living in resource-poor countries Source WIPO

Page 10: Bio Outsourcing Asia: Volume 1 Issue 3 2011.pdf · TB drug trials. Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies

10

11

A Networked Open Innovation Strategy The SpringFire Laboratory Network Technological complexities and market pressures have increased the degree to which companies are outsourcing to highly specialized technology driven companies However conventional outsourcing on a project-by-project ba-sis is strategically insufficient in this era A new type of structure-the virtual or networked outsourcing company provides access to customized solutions and is focused on long-term strategic partnering The formation of this new networked outsourcing company structure is driven by the need to access a broad range of expertise and the shift from narrowly focused specialized outsourcing companies to ―all inclusive outsourcing companies The virtual company is much more agile responsive to paradigm shifts and regulatory changes Accessible expertise can cover drug discovery from the earliest stage of lead compound identification and development through preclinical clinical phases manufacturing global registration post-marketing and line-extension studies The virtual outsourcing company enables access to a multidisciplinary team where the appropriate skill sets and expertise can be available at each stage of the biopharmaceutical value chain Appropriate teams are quickly assem-bled to manage issues as they arise In contrast large vertically integrated outsourcing companies can face many of the same problems associated with the fully integrated biopharmaceutical company including integration coor-dination and communication problems For each team the most suitable individuals from the most appropriate outsourcing firms within the network are selected on the basis of skills experience and fit with the project or product goals client and other individuals on the team Virtual outsourcing companies manage the various contracts budgets and relationships for their clients Lower project risk exists as dependency on a single supplier relation-ship is removed A virtual company must add value and not act simply as an intermediary be-tween contractors and large companies To operate successfully within the virtual environment requires strong industrial and academic networks effec-tive project management skills highly developed intellectual property man-agement skills and the ability to bring together partners to enable drug devel-opment Teams of experienced suppliers and experts are tailored to fulfill project or product requirements and are led by a dedicated senior project manager to ensure knowledge coordination and integration Forming the right partnerships and teams as well as managing operational processes in-crease the effectiveness of RampD outsourcing and ensure that the associated cost time and risk-sharing benefits are enjoyed by the Sponsor Models at Work The SpringFire Laboratory Network SpringFire Laboratory Network is a firm with the goal to match pharmaceu-tical medical device and biotech companies with clinical laboratories to pro-vide clinical trial testing solutions SpringFire Laboratory Network is unique in representing a network of independent non-competing high complexity laboratories collectively providing testing offerings to the clinical trial mar-ketplace The founders discovered that there was a strong desire by Sponsors and CROs to have choices in laboratories other than large laboratory companies with rigid requirements and little flexibility or educational institutions that were expensive and less responsive to external clients However there was little incentive for independent laboratories to pursue clinical trials testing given the large upfront costs to start a business development effort and the significantly different and lengthy sales cycle in clinical trials In an attempt to bridge the gap between the strong need for laboratory choices and the reluctance of independent laboratories to shoulder the bur-dens of clinical trials initiatives SpringFire Laboratory Network was estab-lished The network includes hand-selected independent laboratories to pro-vide testing services to clinical trial Sponsors and CROs The SpringFire team provides business development services for the network laboratories as well as expert knowledge around project management and clinical trial-specific operations The laboratories are non-competing and as such they share costs and best practices with one another without competing for the work ―The clinical trial marketplace has a need for esoteric laboratories to respond to its ever-expanding requests states Jim McClintic Managing Partner of SpringFire Laboratory Network

Selecting and Matching Network Participants SpringFire Laboratory Network is committed to a successful outcome for each drug or device development project The network of laboratories is made up of hand-selected ―Centers of Excellence The affiliated laborato-ries provide solutions in sub-specialized anatomical pathology and highly specialized clinical diagnostic testing along with state of the science micro-array testing SpringFirelsquos core team works with all affiliated laboratories to ensure their internal operations meet or exceed the unique regulatory and data manage-ment needs of clinical trials Each laboratory has demonstrated their abilities to provide customized quality results for clinical investigations on an inter-national basis The SpringFire affiliated laboratories are highly regarded in their specialized areas of testing expertise Each affiliate laboratory is evalu-ated to determine their fitness for work in the clinical trials arena A variety of characteristics are considered during a 2-day on site assessment including

Past clinical trial experience Quality laboratory processes Scientific and medical leadership Platform and technology maturity Project management Storage space options Data management capabilities Commitment to providing quality testing to clinical trials Sponsors

or CROs Since most of the laboratories are non-competing the matching process is usually based on the services requested and which lab provides those ser-vices In the event that more than one laboratory provides the requested tests or services SpringFire works with the laboratory that provides the most comprehensive set of tests or services In the event that no single lab performs all of the testing SpringFire will facilitate for two or more of the network laboratories to work together on a study Current Members of the Network SpringFire Laboratory Networklsquos current member laboratories are based in North America The Network provides testing services for both domestic and international study sites and is open to working with laboratories and sponsors around the globe Current members include

With a combined menu of more than 1000 specialty tests SpringFire offers Sponsors and CROs expertise and testing services in numerous therapeutic areas including anatomical pathology coagulation advanced lipids molecu-lar genetics and womenlsquos health The SpringFire network of laboratories col-lectively represent over 90 years of experience in the clinical marketplace while successfully completing more than 250 clinical trials Governance of the Network The SpringFire team is much more than business development The team works closely with each laboratory before during and after the study From the start the team works with each laboratory to build a competitive and timely proposal With the awarding of a contract the SpringFire team re-views and assists with negotiations and contract development During the study start-up phase the team facilitates on-going communications and lo-gistics to ensure the effective completion of tasks including routinely follow-ing up with both the laboratory and Sponsor or CRO to ensure good com-munication and suitable quality laboratory services When the study is con-cluded all parties are provided with a summary and an opportunity to share their experiences thoughts and ideas on the study and the laboratory ser-vices (Figure 1)

Laboratory Specialization

D-Path Dermatopathology

GI Pathology Gastrointestinal and liver pathology

ITxM Diagnostics Coagulation testing

Atherotech Diagnostics Advanced lipids

Baylor College of Medicinersquos Molecular Genetics Laboratories

Pharmacogenomics cytogenetics and medical genetic diagnostics

Baylor College of Medicinersquos Cancer Genetics Laboratory

Cancer-related genetics testing

12

Figure 1 Interactions in the SpringFire Laboratory Network Knowledge management is vital both to the effective working of the project team but also to the efficient transfer of information to and from the Sponsor as well as to external audiences such as site investigators regulatory authorities and potential licensees Outsourcing multiple stages of the drug product life cycle is critical for those companies that require access to expertise and technology in a rapidly chang-ing paradigm without the risk and cost associated with internal development Both young and small biotechnology companies and large traditional phar-maceutical companies can benefit from the model of drug discovery and development offered by organizations such as the SpringFire Laboratory Network

SPRINGFIRE

CORE TEAMPartner Selection

Best Practice Sharing

Baylor College of

Medicines

Cancer Genetics

Laboratory

GI Pathology

D-Path

ITxM Diagnostics

Baylor College of

Medicines

Molecular Genetics

Laboratories

Atherotech

Diagnostics

SPONSORCRO

PARTNER

MATCHING

GOVERNANCE

LESSON

KNOWLEDGE

TRANSFER

UPCOMING BIO PARTNERSHIPS ASIA 2012 CALENDAR

EDITORIAL

TRENDS AND ANALYSIS Articles that run 1500-2000 words and explore trends across the value chain describe opportunities in emerging Asian markets outline policy changes enabling partnerships in these markets and discuss the management of such partnerships

CASE STUDIES Company case studies that run 500-1000 words and explore partnerships across the drug discovery and development value chain

Submit text and electronic images with a resolution of 300 dpi or better We cannot guarantee placement in a particular issue The staff may schedule an entry to coincide with a certain issues editorial theme

COMPANY PROFILES Service provider profiles Send the following information Company name

contact information description services offered markets served and partnerships sought Also send a company logo

TECHNOLOGY PROFILES Technology licensing opportunities Send the following information Technology background areas of application competitive advantages stage of development intellectual property status partnerships sought and contact

information Please forward an image if applicable

NEWS RELEASES Updates on deals partnerships opportunities Send a press release and a company logo

MONTH FEATURE STORIES TRENDS AND ANALYSIS

CASE STUDIES

February 2012 New Models of Open Innovation in Asia

Business Model Analysis

Company Profiles

May 2012 Cluster Formation and Participation in Asia

Case Analysis Cluster Profiles

August 2012 Partnerships and Biopharmaceutical Capacity

Development in Asia

Case Analysis Company Profiles

November 2012 Transferring the Lessons from Asia to the Bottom of

the Pyramid

Lessons from India China Singapore

Middle East

Company Profiles

13

14

15

Convergence Innovation Development at the Intersection of Disciplines Organizations and Products Convergence Innovation is the paradigm where discovery and technology creation occur at the intersection of multiple disciplines and organizations Specifically convergence between the chemical biological cognitive physi-cal and information sciences is evident Firms and researchers will cross the boundaries between these disciplines to create technological value--finding solutions to address health environmental and energy challenges In parallel will be emergence of new models of collaboration to enable knowledge crea-tion and knowledge dissemination Central to Convergence Innovation will be a determination of the common value of knowledge versus the private value of knowledge across the associated disciplinesmdashwith the goal of ad-vancing and commercializing technology Levels of Convergence Convergence can be considered at three levelsmdashnamely convergence in the sources of knowledge for research convergence in organizational forms to enable technology development and convergence at the product level with the embodiment of knowledge in complementary products For example while nanotechnology research has been shown to have a dominant focus on material sciences additional analysis has demonstrated that nano-based research increasingly draws its knowledge from other areas (Porter and Youtie 2009) Specifically Porter and Youtie (2009) reveal that while nano-based publications center on materials science (including chemistry and physics) nano-based research also significantly involves many other fields including biomedical sciences computer sciences and mathematical sci-ences environmental sciences and engineering Citation patterns further show extensive referencing across macro-disciplinesmdashwith a preponderance of references in nano-related articles to research outside the macro-discipline in which the article is published (Porter and Youtie 2009) Conse-quently at this level of convergence the sharing and absorption of research across the involved disciplines will be necessary for downstream value crea-tion (Figure 1) Figure 1 Convergence at the Disciplinary (Knowledge Sources) Level At the next level of convergencemdashthe organizational levelmdashthe interaction between technological convergence and models of open innovation is be-coming apparent Licensing mergers acquisitions and strategic alliances such as joint ventures as well as new structures such as innovation networks and open innovation communities represent alternative strategies that may be used to acquire or access the necessary knowledge or assets for discovery and development From a convergence perspective the opportunity exists for a (public or private) stakeholder to not only interact with other (public andor private sector) stakeholders through simple one-to-one traditional collaborations but with many stakeholders through more complex mecha-nisms such as consortia crowdsourcing and other such open innovation communities For example the need for shared scientific expertise and large scale infrastructure in both nanotechnology and biotechnology is thought to be responsible for the development of networks spanning both fields (Figure 2) The pervasiveness of enabling technologies such as information and communications technology (ICT) have encouraged innovation net-works to increase in dominance and have lead to the blurring of organiza-tional boundaries among research organizations (Powell Koput and Smith-Doerr 1996 Roijakkers and Hagedoorn 2006) In such collaborations the opportunity to assume multiple roles exists to enable RampD including the collaborator who shares knowledge with one or many partners for the pur-poses of discovery or development the incubator who provides funding or expertise to other stakeholders to support venture development the enabler

who provides access to tools equipment large scale infrastructure or other services to support product development and the orchestrator who manages the network of partners with either the objective of knowledge creation or knowledge application (Melese Lin Chang and Cohen 2009) At this level of convergence there is the critical need to closely examine the management processes associated with collaboration as the collaborative strategies have not only grown in relevance but also in terms of impact and the number of participants involved

Collaboration Model

Access

Simple (One to One) Complex (Many to Many)

Collaboration Complexity

Figure 2 Convergence at the Organizational Level Open Access=Participation Open Closed Access=Exclusive Partnership

Simple=One to One Link between Partners Complex=Many Links between Several Partners PPP=Public Private Partnership JV=Joint Venture

The location in the above grid determines the extent to which the collabora-tion is open or closed and between one few or many partners

Finally the outcomes from any collaborative interaction will increasingly lead to convergence at the product level In this case multiple components or products will be packaged together to enhance the value over individual product offerings (Figure 3) Such bundled products will have the goal of simultaneously meeting several technological needs be it for biomedical treatment as seen in the use of nano-based diagnostics paired with therapeutics in agriculture or environmental applications as seen in the use of sensors to measure pathogens in food and the environment or the use of nanospheres to selectively detect harmful materials in water and then used for detoxification and in the creation of novel energy technologies as seen in the use of catalysts in particles for biodiesel synthesis to name a few (Schmidt 2007) At the product level effective intellectual property man-agement strategies and coordination between regulatory agencies will be paramount

Figure 3 Convergence at the Product Level

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

COGNITIVE

PPP JV

MampA

Consortium Innovation Network

Crowdsourcing Open Source Network

Licensing

Proprietary Open Innovation Community

Closed

Open

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

Nanomaterials

Nanodevices

Nanoelectronics

Nanosensors

Bioinformatics

Biosensors

Tissue Engineering

Drug Delivery

Diagnostics

Drug Delivery

Chemical Catalysis

Nanofiltration

Chemical Sensors

Neuron Network

Prostheses GenerationCOGNITIVE

16

The Impact of Convergence At each level of convergence there are several complexities that either im-pact the management of stakeholder interaction or the management of the knowledge based assets generated through such interactions For example given the expected intersection between disciplines knowledge complexities including varied types (such as biological information and biological struc-tures chemical knowledge and structures physical knowledge and struc-tures) and forms of knowledge (disembodied and embodied) will drive the need for a common platform for knowledge integration validation and standardization Beyond integration of knowledge it is expected that teams of biological chemical and physical scientists will increasingly form to de-velop and bridge together the necessary tools and equipment for RampD ac-tivities (Ideker Galitski and Hood 2001 Kitano 2001 Kautt Walsh and Bittner 2007 Boardman 2008 Boardman and Ponomarioy 2009) We must also consider the impact of convergence on the downstream rights to de-velop products Lemley (2005) discusses that unlike other industries in which patentees are actual or potential participants in the downstream mar-ket a significant number of corporate patentees will increasingly own rights not just in the industry in which they participate but other industries as well Analysts fear that over-patenting alongside the large shadow of such patents could not only fragment technology but could discourage stakeholders in a number of industries from attempting to develop products incorporating infringing technologies (Lemley 2005) It is important to consider that as multiple disciplines increasingly working together each discipline will have its own priorities and conventions regarding knowledge dissemination and knowledge appropriation (Hilgartner 1996) One discipline may signal its success during knowledge generation through the enclosure and the sale of disembodied knowledge Another discipline may measure its success exclu-sively by the embodiment of knowledge in medical products (Hilgartner 1996) While patent pools are a suggested solution to the possible patent holdups (DlsquoSilva 2009) it has been proposed that as has occurred in the genomics arena innovation-based networks with rules regulating the devel-opment and appropriation of critical technology building blocks could not only circumvent the product development and legal problems of the past but will also bring together the requisite intellectual and physical capital (DlsquoSilva 2009 Allarakhia and Walsh 2010) A Template for Managing Interactions and Knowledge-Based Assets Governance strategies must seek to align the incentives for participation in collaborative activities for multiple stakeholders The use of rules to define actions communication mechanisms used to enable and monitor actions and to share the outcomes are all critical to ensure that goals are achieved Structure and Roles It is expected that the chosen collaboration modemdashone to one one to many or many to many collaboration and objectives set for the collaborationmdashpooling of assets generation of new assets andor pol-icy creation will impact the type of participants that will join The organiza-tional structure chosen will be determined in part by the attributes of the resources to be contributed or developedmdashinformation supporting tools technology as well as the location of participantsmdashwith linkages established through physical clustering or virtual networking Thereafter the organiza-tion of participants may be a function of technological expertise geographic location or project-based management expertise Resource Types and Outcomes Participants will contribute several inputs including funding equipment and human capital The resulting outcomes include data materials tools and technology Facilities store artifacts in or-der to make them accessible Traditional facilities have been libraries and archives containing books journals and papers New technologies have made electronic distributed information possible Artifacts are discreet ob-servable nameable representations of ideas such as articles research notes books databases maps computer files and web pages (Foray 2004 Hess and Ostrom 2006) In the context of nanotechnology databases material and model repositories accessible laboratories that aggregate equipment and tools for nanotechnology development are varied options to manage the outputs Hence any outcomes analysis should seek to determine the success of collaboration including the amount of data produced and accessed the material generated housed and accessed the tools created and used and the technology produced by participants Governance Internal rules or mechanisms used to promote cooperative be-haviour can include formalizing the requirements to join the initiative en-suring frequent interactions encouraging communication between partici-pants monitoring and punishing defection and setting the boundary for access to resources An authority that regulates access to resources can en-sure that a fair and efficient governance strategy is used (Ostrom Gardner and Walker 1994) While access generally refers to disembodied assets such

as data extraction can involve the removal andor use of physical materials models and tools Knowledge use and access can be governed by the fol-lowing rules sharing with partners only (closed access) sharing with part-ners and the public at large (open access) and intellectual property assign-ment potentially on information materials tools and technology with the specification of rights to use based on licensee type geography or target market for product launch Creating Value The Path Forward in The path forward will require the creation of supporting policies encourag-ing multi-disciplinary collaboration At a national level several governments have recognized the importance of innovation networks to develop capacity and compete on an international level Consequently policies are now pro-viding more RampD funding and incentives encouraging the formation of multi-sectoral networks (Corley Boardman and Bozeman 2006) New prod-ucts of convergent technologies will necessitate cooperation among regula-tory bodies with the coordination of information flow coordination of du-ties and increased harmonization between international regulatory bodies (Castle et al 2006 Drezek and Tour 2010) To avoid the mistakes of the past policies outlining guidelines for the management of intellectual prop-erty rights can ensure that stakeholders will correctly assess the common value of knowledge versus the private value of knowledgemdashresulting in the transition from open knowledge to appropriated knowledge with the objec-tive of pursuing (unilateral or collaborative) downstream product develop-ment References 1) Allarakhia M amp Walsh S Managing knowledge assets under conditions of radical change The case of the pharmaceutical industry Technovation 31 105-117 (2011) 2) Boardman P Beyond the stars The impact of affiliation with university biotechnology centers on the industrial involvement of university scientists Technovation 28 291-297 (2008) 3) Boardman Pamp Ponomarioy B University researchers working with pri-vate companies Technovation 29 142-153 (2009) 4) Castle D Loeppky R Saner M Cline C Dalgleish J amp Wojnik V Convergence in Biotechnology Innovation Case Studies and Implications for Regulation (University of Guelph Guelph 2006) 5) Corley EA Boardman PC amp Bozeman B Design and the manage-ment of multi-institutional research collaborations Theoretical implications from two case studies Research Policy 35 975-993 (2006) 6) Drezek RA amp Tour JM Is Nanotechnology Too Broad to Practice Nature Nanotechnology 5 168-169 (2010) 7) DlsquoSilva J Pools thickets and open source nanotechnology European Intellectual Property Review 31 300-306 (2009) 8) Foray D The Economics of Knowledge (MIT Press Cambridge 2004) 9) Hess C amp Ostrom E Understanding Knowledge as a Commons From Theory to Practice (MIT Press Cambridge 2006) 10) Ideker TT Galitski L amp Hood LE A new approach to decoding life Systems biology Annual Review Genomics and Human Genetics 2 343-372 (2001) 11) Kautt M Walsh S amp Bittner K Global distribution of microndashnano technology and fabrication centers A portfolio analysis approach Technol-ogy Forecasting and Social Change 74 1697-1717 (2007) 12) Kitano H Systems biology Toward systems-level understanding of bio-logical systems Foundation of Systems Biology 1-29 (MIT Press Cam-bridge 2001) 13) Lemley MA Patenting nanotechnology Stanford Law Review 58 601-630 (2005) 14) Melese T Lin SM Chang JL amp Cohen NH Open innovation net-works between academia and industry an imperative for breakthrough therapies Nature Medicine 15 502-507 (2009) 15) Ostrom E Gardner R amp Walker J Rules Games and Common-Pool Resources (The University of Michigan Press Ann Arbor 1994) 16) Porter AL amp Youtie J How interdisciplinary is nanotechnology Jour-nal of Nanoparticle Research 11 1023-1041 (2009) 17) Powell WW Koput KK amp Smith-Doerr L Inter-organizational col-laboration and the locus of innovation Network of learning in biotechnol-ogy Administrative Science Quarterly 41 116-145 (1996) 18) Roijakkers N amp Hagedoorn Inter-firm RampD partnering in pharmaceu-tical biotechnology since 1975 Trends patterns and networks J Research

Policy 35 431minus446 (2006) 19) Schmidt K Project on Emerging Nanotechnologies (2007)

17

18

Beyond Cost-Savings Hidden Considerations for Conducting Clinical Trials in Asia

By Jessica Liu General Manager ChinaNorth Asia INC Research and Garth Tierney Regional General Manager Australia and South East Asia INC Research

Abstract Pharmaceutical industry sponsors are well-aware of the cost bene-fits of conducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the pri-mary criteria by which sponsors should select the Asian regions in which they will conduct their clinical trials Other important considerations include disease incidence treatment standards minimizing variability maximizing protocol adherence regulatory factors politics cultural considerations and ethical concerns While global spending on medicines is expected to grow three percent to five percent over the next five years spending in the ―pharmerging markets is expected to double1 The desire to access this fast-growing consumer base is the primary reason large pharmaceutical companies are increasing their clinical presence in emerging countries like China according to a report from investment bank-ing firm William Blair2 But small to midsize drug makers are also moving into emerging markets driven primarily by cost differentials China can offer as much as a 50 percent cost advantage compared to the United States or Europe as can Thailand the Philippines or Malaysia Most countries in Asia are at least 20 percent to 30 percent more cost-efficient than their western counterparts although there are notable exceptions such as South Korea and Japan Pharmaceutical industry sponsors are well-aware of the cost benefits of con-ducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the primary criteria by which sponsors should select the Asian regions in which they will con-duct their clinical trials Other important considerations for conducting a trial in Asia include disease incidence and treatment standards the potential to minimize variability and maximize protocol adherence regulatory and political factors and cultural and ethical considerations Disease Incidence and Treatment Standards With more than four billion people Asia offers sponsors a deep pool from which to draw clinical trial participants Indeed for sponsors conducting late-stage clinical trials in indications such as diabetes or cardiovascular dis-ease which can require thousands of patients establishing Asian trial sites to tap into that pool is critical The key is determining which Asian countries will best match each triallsquos unique patient requirements For sponsors most concerned with enrolling large numbers of patients into a trial highly populous countries such as India China Indonesia Japan the Philippines Thailand and Malaysia may be the best fit A recent CRO survey revealed that China is the leader in patient recruitment for the Asia-Pacific region followed by India and South Korea3 However sponsors need to be aware that the region is still expanding and a vast population does not equate to vast number of ICH GCP trained sites in the larger countries of China and India This can be a limiting factor in gaining access to the best sites for certain indications If on the other hand a sponsor is conducting a Phase I trial they should know that certain Asian countries have specific regulatory requirements for approval of a clinical trial application (CTA) that can add complexity to the process Others like Australia specialize in Phase I studies thanks to their fast and straightforward approval processes high-quality clinical practices and variety of many academic and commercial clinical trials centers4 Selecting an appropriate region for trial sites also depends on the incidence of the target disease in each countrylsquos population Highly-developed Asian countries have a higher incidence of diseases common in the West such as diabetes and cardiovascular disease while diseases such as tuberculosis are more common in Southeast Asia Some countries like India have diverse patient populations afflicted with diseases of both the developing and devel-oped world

When it comes to standards of care certain diseases like breast cancer lung cancer and diabetes are treated in much the same way in Asia as they would be treated in the Western world But for many other indications medical practice standards differ both from East to West and between the different Asian regions Sponsors seeking to meet specific market regulatory approval will need to mirror Western standards-of-care and as such should consider focusing trial sites to Australia New Zealand Singapore Taiwan Hong Kong and South Korea But differing standards of care can also provide unique opportunities Asia offers relatively more patients for first-line and second-line cancer drug evaluation than the West where such patient stores have been largely exhausted Risk Mitigation Sponsors should be prepared that some Asian trial sites ndash even those that have adapted Western-style medical practices ndash may require more assistance when it comes to following protocol and differentiating between medical practice and clinical research Not all Asian sites will have the infrastructure for a clinical trial A good CRO partner will work with a sponsor and site investigators to identify any infrastructure gap ndash such as a dedicated com-puter fax or freezer ndash and develop plans to ensure sites have the essentials to deliver a study efficiently Data integrity is another area that sponsors and CROs need to focus atten-tion It is critical to reduce variability by ensuring all monitoring and site staff are well trained Monitors need to understand how to identify and pro-actively resolve issues early on to minimize long-term issues with patient recruitment and data collection They should understand how to recognize early warning signals and not overreact to red herrings Investigators and site monitors also need to be trained in adverse event reporting to ensure that they meet local regional and global clinical trial safety reporting Sponsors must ensure monitoring visits are being conducted regularly as such visits make it more likely that recruitment and data integrity issues will be detected early and managed in a timely and effective manner Equally im-portant site staff needs to be as consistent as possible Finally sponsors need to implement a proven system for data reporting as variability in the data collection process may decrease the evaluable patient pool in the trial decreasing the sponsorlsquos chances to establish statistical sig-nificance or detect a rare safety signal Regulatory and Political Factors While regulatory bodies in South Korea and Taiwan as well as in Singapore have adopted an FDA-based approach each Asian country has its own regulatory idiosyncrasies In China for example reviews take on a project-based nature and sponsors should never assume that what worked in one application will be directly applicable to another No matter how harmo-nized Asia may appear the cookie-cutter approach simply doesnlsquot work However the fact that regulatory policies are still evolving in certain Asian countries provides a unique opportunity to sponsors the opportunity to in-fluence those policies There are no formal guidances or rules covering this topic but it is a real opportunity The recent economic downturn has prompted finance ministers in many countries to more closely analyze the cost of healthcare and they are realizing that good drugs can decrease their overall costs To ensure new drugs are available in their countries they have become increasingly eager to support clinical trials and they are engaging in conversations with sponsors about how approval pathways might be con-structed that take healthcare economics into consideration For example if a sponsor works closely with regulatory agencies to design the right preclinical and Phase I trials could a single Phase IIIII trial be sufficient for approval in some indications Are so many repetitive studies really necessary Is the requirement or guidance relevant to the current technology If a sponsor can prove to the government that a certain disease is currently costing 50 cents per person per day to treat and a new drug would change treatment paradigms and reduce that cost to a penny that is a compelling argument Not compelling enough to compromise safety or effi-cacy but compelling enough to expedite things along by partnering to agree upon the most appropriate pathway to approval While some regulatory agencies may not be as comfortable with the idea of allowing more flexibility and customization in the clinical trial design many are open to reducing bu-reaucracy and the associated time delays for CTA approval ndash particularly when there is potential to significantly impact health economics Govern-ments may provide commercialization support including funding to enable

19

development of new technologies and testing methods There may also be a higher priority given to certain CTA applications in the review queue Australia and Singapore have adopted a more simplified regulatory process and offer a notification scheme rather than formal review by the regulator South Korea and Taiwan are working to ease regulations and facilitate pro-tocol reviews Countries such as China have lengthy regulatory approval processes however there are some early indications that this may be de-creasing India is currently experiencing slower regulatory paths Interest-ingly some Asia Pacific countries that have historically been considered ―easy targets for clinical trials are increasing their regulations While there is much potential to collaborate with regulatory bodies in Asia these are not the only government agencies with which a sponsor must work Each country has its own policies on insurance regulations import licenses and other factors that affect a sponsorlsquos ability to establish and run clinical trial sites Each should be reviewed before selecting countries in which to establish trial sites Cultural and Ethical Considerations Language barriers can be easily overcome by CRO partners with offices across Asia and they are the least of a sponsorlsquos worries when it comes to cultural differences More pressing are issues such as the fact that some Asian researchers may believe that their participation in a trial gives them the right to publish data on their findings while sponsors require at least some degree of control over the publication of trial data Such issues are best managed by thorough communication prior to the start of enrolment In certain countries cultural factors may positively impact a trial Ethical factors may also weigh on a sponsorlsquos decision to conduct trials in certain Asian countries There are certain diseases that present a serious unmet medical need specifically within Asian populations such as foot-and-mouth disease and such indications obviously lend themselves to Asian clinical tri-als Yet if a sponsor has no plans to launch a drug in certain Asian countries perhaps because the populations of those countries would not be able to afford the drug then conducting clinical research in those countries may present ethical challenges For the most part however sponsors are eager to launch their drugs into the rapidly growing Asian healthcare markets and Asian clinical trials are necessary to support this endeavour As mentioned initially the cost advan-tages of conducting clinical trials in Asia cannot be ignored as both large and small companies face pressures on their bottom lines But while costs are important they are not the only consideration About the Authors Jessica Liu MD is the general manager for Clinical Operations in China and North Asia at INC Research She previously managed international pro-jects out of the European headquarters office for a global CRO in Brussels Belgium Prior to that she worked for 15 years in the Chinese affiliates of several global pharmaceutical companies overseeing clinical operations pro-ject management and medical affairs She conducted and managed Phase I-IV clinical studies across multiple therapeutic areas Dr Liu started her ca-reer as a resident physician in the endocrinology Department of the Peking Union Medical College Hospital (PUMCH) in Beijing China She received her Medical Doctorate from the University of Beijing (China) and has a Di-ploma in Pharmaceutical Medicine from the University of Basel (Switzerland) Dr Liu is based in Beijing She can be reached at jialiuincresearchcom Garth Tierney is the regional general manager for Australia and South East Asia for INC Research Garth previously founded and managed Trident Clinical Research a CRO based throughout Australia New Zealand and In-dia After 14 years of operation Trident was acquired by INC Research in June 2011 Prior to founding and managing Trident Clinical Research Garth worked for 8 years in the clinical research industry in various senior manage-ment and operational management roles across several companies including a global CRO an Australian pharmaceutical company and two global phar-maceutical companies Garth has a pharmacology (University of NSW) and business administration (University of Adelaide) background and worked in hypertension research for several years before joining the pharmaceutical industry During this time Garth published various papers and won the Whelan prize (awarded by ASCEPT) He can be reached at gtierneyincresearchcom

References 1 IMS IMS Institute Forecasts Global Spending on Medicines to Reach

Nearly $11 Trillion by 2015 May 18 2011 2 Wm Blair Pharmaceutical Outsourcing Industry Analysis Jun 10

2010 3 CyberMedia Research-BioSpectrum Asia-Pacific CRO Survey 2011 4 Clinical Trials Action Group Report Commonwealth of Australia

2011 CPTR Yields Progress New Six-Way Agreement has Goal to Speed Development of TB Drug Combinations November 11 2011 The Critical Path to TB Drug Regimens (CPTR) announced this November an innovative agreement between AstraZeneca Bayer Sanofi Tibotec TB Alliance and the World Health Organization to share information on tuber-culosis (TB) compounds within their respective drug pipelines to quickly identify and work together to develop the most promising TB drug regimen regardless of sponsor The partnership facilitates a more collaborative ap-proach to TB drug development with the objective to dramatically speed the development of shorter safer and more effective multi-drug treatments that are urgently needed to control the global TB pandemic The agreement will enable information-sharing around scientific and clinical data on TB compounds in clinical development By sharing data partners can identify opportunities to test their compounds in combination speeding availability of future TB regimens The collaboration includes the majority of global sponsors with TB drugs in clinical development Under the agree-ment if two or more organizations choose to work together to further de-velop a regimen they will enter into a separate arrangement that defines the rights and responsibilities of each party CPTR is working closely with regulatory scientists at the US Food and Drug Administration European Medicines Agency and other regulatory bodies in China India and some countries in Africa to develop the tools that are needed to allow testing of new TB drugs in combination cutting years off the development timeline Under the leadership of the Critical Path Institute CPTRlsquos Regulatory Science Consortium focuses on establishing consensus on preferred standards methods and tools for developing new TB drug regimens and obtaining official acceptance from international regulatory authorities Source TB Alliance Pfizer Establishes the Cambridge Research Center September 01 2011 Pfizer Inc recently announced it has entered into a 10-year lease agreement with the Massachusetts Institute of Technology (MIT) for more than 180000 square feet in a new building under development in Cambridge Massachusetts Located at 610 Main Street South in Kendall Square the new site will be the future location of Pfizerlsquos Cardiovascular Metabolic and En-docrine Disease (CVMED) and Neuroscience Research Units The reloca-tion of the two Research Units will substantially boost Pfizerlsquos footprint in Cambridge making it the second largest biopharmaceutical company in Massachusetts in terms of jobs ―We were very deliberate in our choice to move to Cambridge MA as a key part of our RampD strategy By expanding our presence in one of the worldlsquos great centers of scientific and medical innovation we will provide the best environment for our researchers to invent the next generation of medicines in areas of greatest need such as Alzheimerlsquos disease schizophrenia diabe-tes and cardiovascular disease said Rod MacKenzie senior vice president and head of PharmaTherapeutics Research amp Development ―We intend to foster productive formal and informal collaborations between our drug dis-covery experts and the outstanding scientists of Cambridgelsquos world class institutions This is a very exciting period in Pfizer RampD Source Pfizer

20

21

Continued from page 19hellip UK Academia Given Access to Selected AstraZeneca Compounds December 11 2011 Following a unique landmark agreement between AstraZeneca and the UK Medical Research Council (MRC) a wide range of compounds will be made available to UK medical researchers next year In a new type of collabora-tion academia will be granted access to 22 clinical and preclinical com-pounds developed by AstraZeneca Though making individual compounds available to external academic investigators is not unusual the breadth and open-innovation nature of this collaboration is unique because it provides unprecedented access to well characterised clinical and preclinical candidate molecules to investigators across all UK academic institutions There is significant unmet need in diseases both within and outside Astra-Zenecalsquos current research focus This collaboration builds on the sizable in-vestment made in developing candidate drugs within AstraZeneca by help-ing researchers to explore their potential more broadly with the hope that they will find new future medicines It also helps AstraZeneca explore areas of unmet patient need beyond its current disease area focus leveraging great external science in a way that is highly flexible and cost effective The New Opportunities Innovative Medicines Unit (iMed) in AstraZeneca has been central in establishing this research collaboration with the MRC and has acted as the interface with the other AstraZeneca iMeds to agree which compounds would be eligible Clive Morris VP New Opportunities iMed said that ―This Open Innova-tionlsquo approach brings together the strengths of AstraZeneca the MRC and UK Academia into what I hope will be a really potent mix bringing forward really exciting new ideas that could transform our understanding of some diseases It highlights an openness to new scientific thinking and also places external scientific collaboration right at the heart of what we do It is also an excellent way to broaden our portfolio of activities into new diseases for As-traZeneca leveraging the wealth of expertise across UK academia AstraZeneca and the MRC will invite preclinical and clinical research pro-posals from across the UK academic community to investigate the com-pounds in a range of diseases with a view to finding new treatment oppor-tunities AstraZeneca will work with the academic collaborators to develop the best scientific proposals and the MRC will select the highest quality pro-posals for funding awarding up to pound10 million in total to fund the success-ful proposals The successful applicants will then work collaboratively with AstraZeneca to deliver the studies David Brennan AstraZenecalsquos Chief Executive Officer said ―Innovative collaborations are playing a crucial role in finding ways to unlock the poten-tial of new treatments The UK has a strong heritage of research excellence in life sciences We hope that in sharing these valuable compounds with aca-demic scientists through the MRC new discoveries will be made by explor-ing additional uses of these compounds Source AstraZeneca WIPO ReSearch A Neglected Tropical Diseases Initiative October 26 2011 The World Intellectual Property Organization (WIPO) in an unprecedented collaboration with leading pharmaceutical companies and BIO Ventures for Global Health (BVGH) recently launched the WIPO Re Search a new consortium where public and private sector organizations share valuable in-tellectual property (IP) and expertise with the global health research commu-nity to promote development of new drugs vaccines and diagnostics to treat neglected tropical diseases malaria and tuberculosis In WIPO ReSearch Alnylam Pharmaceuticals AstraZeneca Eisai GlaxoS-mithKline MSD1 Novartis Pfizer and Sanofi are collaborating with WIPO BVGH the US National Institutes of Health (NIH) and multiple non-profit research organizations These include the California Institute of Technology the Center for World Health amp Medicine the Drugs for Ne-glected Diseases initiative Fundaccedilatildeo Oswaldo Cruz (Fiocruz) Massachu-setts Institute of Technology Medicines for Malaria Venture PATH the South African Medical Research Council the Swiss Tropical and Public Health Institute the University of California Berkeley and the University of Dundee (UK)

―WIPO ReSearch is a ground breaking example of how a multi-stakeholder coalition can put IP to work for social benefit said WIPO Director Gen-

eral Francis Gurry ―By joining WIPO ReSearch companies and researchers commit to making selected intellectual property assets available under roy-alty-free licenses to qualified researchers anywhere in the world for research and development on neglected tropical diseases malaria and tuberculosis This commitment should accelerate the development of medicines vaccines and diagnostics for these diseases

According to the World Health Organization (WHO) neglected tropical diseases today impair the lives of an estimated 1 billion people The WHO provides technical advice to WIPO on public health issues and research pri-orities as appropriate

By providing a searchable public database of available intellectual property assets information and resources WIPO ReSearch facilitates new partner-ships with organizations that conduct research on treatments for neglected tropical diseases malaria and tuberculosis

Membership in WIPO ReSearch as a user provider or supporter is open to all organizations that endorse adhere to and support the projectlsquos Guiding Principles These Guiding Principles include the commitment that IP li-censed via WIPO ReSearch will be licensed on a royalty-free basis for re-search and development on neglected tropical diseases in any country and on a royalty-free basis for sale of neglected tropical disease medicines in or to least developed countries

―The innovative pharmaceutical industry has an important part to play in addressing unmet medical needs and increasing access to our collective pro-prietary information will help advance research into treatment options for these underserved diseases said David Brennan CEO of AstraZeneca and President of the International Federation of Pharmaceutical Manufacturers amp Associations (IFPMA) ―WIPO ReSearch has the potential to make a real impact on global health which is why we are proud to make all patents owned by AstraZeneca available to this important initiative for promoting the research and development of treatments for neglected tropical diseases anywhere in the world

The WIPO ReSearch database includes a wide variety of contributions rele-vant to malaria tuberculosis and other neglected tropical diseases including individual compounds and associated data screening hits from compound libraries and expertise and know-how in pharmaceutical research and devel-opment In addition WIPO ReSearch offers the opportunity for neglected tropical disease researchers to work directly with scientists at pharmaceutical companies to advance RampD on these diseases As WIPO ReSearch moves forward offerings from current partners will continue to grow and new pro-viders are expected to join to add to the wealth of information compounds and services available

―NIH licenses its patents to enable the private sector to develop diagnostics therapeutics and devices that improve public health said National Insti-tutes of Health Director Francis S Collins MD PhD ―We want to ensure that our biological materials and patents covering treatments or vaccines for neglected tropical diseases as with all diseases are available as broadly as possible to speed the development of new products for people who are most burdened by these diseases and WIPO ReSearch helps us to do this

The founding eight pharmaceutical companies WIPO BVGH and NIH are joined by a distinguished group of globally recognized institutions as provid-ers potential users and supporters of WIPO ReSearch (see annex) BVGH will manage the WIPO ReSearch Partnership Hub which will facilitate rela-tionships between the pharmaceutical company providers and new users

―In our role as administrator of the WIPO ReSearch Partnership Hub BIO Ventures for Global Health is excited to bring these new opportunities to neglected disease researchers around the world to accelerate their work in this area of critical unmet need said Don Joseph Chief Operating Officer of BVGH ―As both present and future providers evaluate their internal data and IP with the goal to provide focused information which they believe will best serve the neglected tropical disease research and development commu-nity WIPO ReSearch will build on previous RampD investments to speed the development of drugs vaccines and diagnostics for the neglected diseases that disproportionately impact people living in resource-poor countries Source WIPO

Page 11: Bio Outsourcing Asia: Volume 1 Issue 3 2011.pdf · TB drug trials. Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies

11

A Networked Open Innovation Strategy The SpringFire Laboratory Network Technological complexities and market pressures have increased the degree to which companies are outsourcing to highly specialized technology driven companies However conventional outsourcing on a project-by-project ba-sis is strategically insufficient in this era A new type of structure-the virtual or networked outsourcing company provides access to customized solutions and is focused on long-term strategic partnering The formation of this new networked outsourcing company structure is driven by the need to access a broad range of expertise and the shift from narrowly focused specialized outsourcing companies to ―all inclusive outsourcing companies The virtual company is much more agile responsive to paradigm shifts and regulatory changes Accessible expertise can cover drug discovery from the earliest stage of lead compound identification and development through preclinical clinical phases manufacturing global registration post-marketing and line-extension studies The virtual outsourcing company enables access to a multidisciplinary team where the appropriate skill sets and expertise can be available at each stage of the biopharmaceutical value chain Appropriate teams are quickly assem-bled to manage issues as they arise In contrast large vertically integrated outsourcing companies can face many of the same problems associated with the fully integrated biopharmaceutical company including integration coor-dination and communication problems For each team the most suitable individuals from the most appropriate outsourcing firms within the network are selected on the basis of skills experience and fit with the project or product goals client and other individuals on the team Virtual outsourcing companies manage the various contracts budgets and relationships for their clients Lower project risk exists as dependency on a single supplier relation-ship is removed A virtual company must add value and not act simply as an intermediary be-tween contractors and large companies To operate successfully within the virtual environment requires strong industrial and academic networks effec-tive project management skills highly developed intellectual property man-agement skills and the ability to bring together partners to enable drug devel-opment Teams of experienced suppliers and experts are tailored to fulfill project or product requirements and are led by a dedicated senior project manager to ensure knowledge coordination and integration Forming the right partnerships and teams as well as managing operational processes in-crease the effectiveness of RampD outsourcing and ensure that the associated cost time and risk-sharing benefits are enjoyed by the Sponsor Models at Work The SpringFire Laboratory Network SpringFire Laboratory Network is a firm with the goal to match pharmaceu-tical medical device and biotech companies with clinical laboratories to pro-vide clinical trial testing solutions SpringFire Laboratory Network is unique in representing a network of independent non-competing high complexity laboratories collectively providing testing offerings to the clinical trial mar-ketplace The founders discovered that there was a strong desire by Sponsors and CROs to have choices in laboratories other than large laboratory companies with rigid requirements and little flexibility or educational institutions that were expensive and less responsive to external clients However there was little incentive for independent laboratories to pursue clinical trials testing given the large upfront costs to start a business development effort and the significantly different and lengthy sales cycle in clinical trials In an attempt to bridge the gap between the strong need for laboratory choices and the reluctance of independent laboratories to shoulder the bur-dens of clinical trials initiatives SpringFire Laboratory Network was estab-lished The network includes hand-selected independent laboratories to pro-vide testing services to clinical trial Sponsors and CROs The SpringFire team provides business development services for the network laboratories as well as expert knowledge around project management and clinical trial-specific operations The laboratories are non-competing and as such they share costs and best practices with one another without competing for the work ―The clinical trial marketplace has a need for esoteric laboratories to respond to its ever-expanding requests states Jim McClintic Managing Partner of SpringFire Laboratory Network

Selecting and Matching Network Participants SpringFire Laboratory Network is committed to a successful outcome for each drug or device development project The network of laboratories is made up of hand-selected ―Centers of Excellence The affiliated laborato-ries provide solutions in sub-specialized anatomical pathology and highly specialized clinical diagnostic testing along with state of the science micro-array testing SpringFirelsquos core team works with all affiliated laboratories to ensure their internal operations meet or exceed the unique regulatory and data manage-ment needs of clinical trials Each laboratory has demonstrated their abilities to provide customized quality results for clinical investigations on an inter-national basis The SpringFire affiliated laboratories are highly regarded in their specialized areas of testing expertise Each affiliate laboratory is evalu-ated to determine their fitness for work in the clinical trials arena A variety of characteristics are considered during a 2-day on site assessment including

Past clinical trial experience Quality laboratory processes Scientific and medical leadership Platform and technology maturity Project management Storage space options Data management capabilities Commitment to providing quality testing to clinical trials Sponsors

or CROs Since most of the laboratories are non-competing the matching process is usually based on the services requested and which lab provides those ser-vices In the event that more than one laboratory provides the requested tests or services SpringFire works with the laboratory that provides the most comprehensive set of tests or services In the event that no single lab performs all of the testing SpringFire will facilitate for two or more of the network laboratories to work together on a study Current Members of the Network SpringFire Laboratory Networklsquos current member laboratories are based in North America The Network provides testing services for both domestic and international study sites and is open to working with laboratories and sponsors around the globe Current members include

With a combined menu of more than 1000 specialty tests SpringFire offers Sponsors and CROs expertise and testing services in numerous therapeutic areas including anatomical pathology coagulation advanced lipids molecu-lar genetics and womenlsquos health The SpringFire network of laboratories col-lectively represent over 90 years of experience in the clinical marketplace while successfully completing more than 250 clinical trials Governance of the Network The SpringFire team is much more than business development The team works closely with each laboratory before during and after the study From the start the team works with each laboratory to build a competitive and timely proposal With the awarding of a contract the SpringFire team re-views and assists with negotiations and contract development During the study start-up phase the team facilitates on-going communications and lo-gistics to ensure the effective completion of tasks including routinely follow-ing up with both the laboratory and Sponsor or CRO to ensure good com-munication and suitable quality laboratory services When the study is con-cluded all parties are provided with a summary and an opportunity to share their experiences thoughts and ideas on the study and the laboratory ser-vices (Figure 1)

Laboratory Specialization

D-Path Dermatopathology

GI Pathology Gastrointestinal and liver pathology

ITxM Diagnostics Coagulation testing

Atherotech Diagnostics Advanced lipids

Baylor College of Medicinersquos Molecular Genetics Laboratories

Pharmacogenomics cytogenetics and medical genetic diagnostics

Baylor College of Medicinersquos Cancer Genetics Laboratory

Cancer-related genetics testing

12

Figure 1 Interactions in the SpringFire Laboratory Network Knowledge management is vital both to the effective working of the project team but also to the efficient transfer of information to and from the Sponsor as well as to external audiences such as site investigators regulatory authorities and potential licensees Outsourcing multiple stages of the drug product life cycle is critical for those companies that require access to expertise and technology in a rapidly chang-ing paradigm without the risk and cost associated with internal development Both young and small biotechnology companies and large traditional phar-maceutical companies can benefit from the model of drug discovery and development offered by organizations such as the SpringFire Laboratory Network

SPRINGFIRE

CORE TEAMPartner Selection

Best Practice Sharing

Baylor College of

Medicines

Cancer Genetics

Laboratory

GI Pathology

D-Path

ITxM Diagnostics

Baylor College of

Medicines

Molecular Genetics

Laboratories

Atherotech

Diagnostics

SPONSORCRO

PARTNER

MATCHING

GOVERNANCE

LESSON

KNOWLEDGE

TRANSFER

UPCOMING BIO PARTNERSHIPS ASIA 2012 CALENDAR

EDITORIAL

TRENDS AND ANALYSIS Articles that run 1500-2000 words and explore trends across the value chain describe opportunities in emerging Asian markets outline policy changes enabling partnerships in these markets and discuss the management of such partnerships

CASE STUDIES Company case studies that run 500-1000 words and explore partnerships across the drug discovery and development value chain

Submit text and electronic images with a resolution of 300 dpi or better We cannot guarantee placement in a particular issue The staff may schedule an entry to coincide with a certain issues editorial theme

COMPANY PROFILES Service provider profiles Send the following information Company name

contact information description services offered markets served and partnerships sought Also send a company logo

TECHNOLOGY PROFILES Technology licensing opportunities Send the following information Technology background areas of application competitive advantages stage of development intellectual property status partnerships sought and contact

information Please forward an image if applicable

NEWS RELEASES Updates on deals partnerships opportunities Send a press release and a company logo

MONTH FEATURE STORIES TRENDS AND ANALYSIS

CASE STUDIES

February 2012 New Models of Open Innovation in Asia

Business Model Analysis

Company Profiles

May 2012 Cluster Formation and Participation in Asia

Case Analysis Cluster Profiles

August 2012 Partnerships and Biopharmaceutical Capacity

Development in Asia

Case Analysis Company Profiles

November 2012 Transferring the Lessons from Asia to the Bottom of

the Pyramid

Lessons from India China Singapore

Middle East

Company Profiles

13

14

15

Convergence Innovation Development at the Intersection of Disciplines Organizations and Products Convergence Innovation is the paradigm where discovery and technology creation occur at the intersection of multiple disciplines and organizations Specifically convergence between the chemical biological cognitive physi-cal and information sciences is evident Firms and researchers will cross the boundaries between these disciplines to create technological value--finding solutions to address health environmental and energy challenges In parallel will be emergence of new models of collaboration to enable knowledge crea-tion and knowledge dissemination Central to Convergence Innovation will be a determination of the common value of knowledge versus the private value of knowledge across the associated disciplinesmdashwith the goal of ad-vancing and commercializing technology Levels of Convergence Convergence can be considered at three levelsmdashnamely convergence in the sources of knowledge for research convergence in organizational forms to enable technology development and convergence at the product level with the embodiment of knowledge in complementary products For example while nanotechnology research has been shown to have a dominant focus on material sciences additional analysis has demonstrated that nano-based research increasingly draws its knowledge from other areas (Porter and Youtie 2009) Specifically Porter and Youtie (2009) reveal that while nano-based publications center on materials science (including chemistry and physics) nano-based research also significantly involves many other fields including biomedical sciences computer sciences and mathematical sci-ences environmental sciences and engineering Citation patterns further show extensive referencing across macro-disciplinesmdashwith a preponderance of references in nano-related articles to research outside the macro-discipline in which the article is published (Porter and Youtie 2009) Conse-quently at this level of convergence the sharing and absorption of research across the involved disciplines will be necessary for downstream value crea-tion (Figure 1) Figure 1 Convergence at the Disciplinary (Knowledge Sources) Level At the next level of convergencemdashthe organizational levelmdashthe interaction between technological convergence and models of open innovation is be-coming apparent Licensing mergers acquisitions and strategic alliances such as joint ventures as well as new structures such as innovation networks and open innovation communities represent alternative strategies that may be used to acquire or access the necessary knowledge or assets for discovery and development From a convergence perspective the opportunity exists for a (public or private) stakeholder to not only interact with other (public andor private sector) stakeholders through simple one-to-one traditional collaborations but with many stakeholders through more complex mecha-nisms such as consortia crowdsourcing and other such open innovation communities For example the need for shared scientific expertise and large scale infrastructure in both nanotechnology and biotechnology is thought to be responsible for the development of networks spanning both fields (Figure 2) The pervasiveness of enabling technologies such as information and communications technology (ICT) have encouraged innovation net-works to increase in dominance and have lead to the blurring of organiza-tional boundaries among research organizations (Powell Koput and Smith-Doerr 1996 Roijakkers and Hagedoorn 2006) In such collaborations the opportunity to assume multiple roles exists to enable RampD including the collaborator who shares knowledge with one or many partners for the pur-poses of discovery or development the incubator who provides funding or expertise to other stakeholders to support venture development the enabler

who provides access to tools equipment large scale infrastructure or other services to support product development and the orchestrator who manages the network of partners with either the objective of knowledge creation or knowledge application (Melese Lin Chang and Cohen 2009) At this level of convergence there is the critical need to closely examine the management processes associated with collaboration as the collaborative strategies have not only grown in relevance but also in terms of impact and the number of participants involved

Collaboration Model

Access

Simple (One to One) Complex (Many to Many)

Collaboration Complexity

Figure 2 Convergence at the Organizational Level Open Access=Participation Open Closed Access=Exclusive Partnership

Simple=One to One Link between Partners Complex=Many Links between Several Partners PPP=Public Private Partnership JV=Joint Venture

The location in the above grid determines the extent to which the collabora-tion is open or closed and between one few or many partners

Finally the outcomes from any collaborative interaction will increasingly lead to convergence at the product level In this case multiple components or products will be packaged together to enhance the value over individual product offerings (Figure 3) Such bundled products will have the goal of simultaneously meeting several technological needs be it for biomedical treatment as seen in the use of nano-based diagnostics paired with therapeutics in agriculture or environmental applications as seen in the use of sensors to measure pathogens in food and the environment or the use of nanospheres to selectively detect harmful materials in water and then used for detoxification and in the creation of novel energy technologies as seen in the use of catalysts in particles for biodiesel synthesis to name a few (Schmidt 2007) At the product level effective intellectual property man-agement strategies and coordination between regulatory agencies will be paramount

Figure 3 Convergence at the Product Level

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

COGNITIVE

PPP JV

MampA

Consortium Innovation Network

Crowdsourcing Open Source Network

Licensing

Proprietary Open Innovation Community

Closed

Open

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

Nanomaterials

Nanodevices

Nanoelectronics

Nanosensors

Bioinformatics

Biosensors

Tissue Engineering

Drug Delivery

Diagnostics

Drug Delivery

Chemical Catalysis

Nanofiltration

Chemical Sensors

Neuron Network

Prostheses GenerationCOGNITIVE

16

The Impact of Convergence At each level of convergence there are several complexities that either im-pact the management of stakeholder interaction or the management of the knowledge based assets generated through such interactions For example given the expected intersection between disciplines knowledge complexities including varied types (such as biological information and biological struc-tures chemical knowledge and structures physical knowledge and struc-tures) and forms of knowledge (disembodied and embodied) will drive the need for a common platform for knowledge integration validation and standardization Beyond integration of knowledge it is expected that teams of biological chemical and physical scientists will increasingly form to de-velop and bridge together the necessary tools and equipment for RampD ac-tivities (Ideker Galitski and Hood 2001 Kitano 2001 Kautt Walsh and Bittner 2007 Boardman 2008 Boardman and Ponomarioy 2009) We must also consider the impact of convergence on the downstream rights to de-velop products Lemley (2005) discusses that unlike other industries in which patentees are actual or potential participants in the downstream mar-ket a significant number of corporate patentees will increasingly own rights not just in the industry in which they participate but other industries as well Analysts fear that over-patenting alongside the large shadow of such patents could not only fragment technology but could discourage stakeholders in a number of industries from attempting to develop products incorporating infringing technologies (Lemley 2005) It is important to consider that as multiple disciplines increasingly working together each discipline will have its own priorities and conventions regarding knowledge dissemination and knowledge appropriation (Hilgartner 1996) One discipline may signal its success during knowledge generation through the enclosure and the sale of disembodied knowledge Another discipline may measure its success exclu-sively by the embodiment of knowledge in medical products (Hilgartner 1996) While patent pools are a suggested solution to the possible patent holdups (DlsquoSilva 2009) it has been proposed that as has occurred in the genomics arena innovation-based networks with rules regulating the devel-opment and appropriation of critical technology building blocks could not only circumvent the product development and legal problems of the past but will also bring together the requisite intellectual and physical capital (DlsquoSilva 2009 Allarakhia and Walsh 2010) A Template for Managing Interactions and Knowledge-Based Assets Governance strategies must seek to align the incentives for participation in collaborative activities for multiple stakeholders The use of rules to define actions communication mechanisms used to enable and monitor actions and to share the outcomes are all critical to ensure that goals are achieved Structure and Roles It is expected that the chosen collaboration modemdashone to one one to many or many to many collaboration and objectives set for the collaborationmdashpooling of assets generation of new assets andor pol-icy creation will impact the type of participants that will join The organiza-tional structure chosen will be determined in part by the attributes of the resources to be contributed or developedmdashinformation supporting tools technology as well as the location of participantsmdashwith linkages established through physical clustering or virtual networking Thereafter the organiza-tion of participants may be a function of technological expertise geographic location or project-based management expertise Resource Types and Outcomes Participants will contribute several inputs including funding equipment and human capital The resulting outcomes include data materials tools and technology Facilities store artifacts in or-der to make them accessible Traditional facilities have been libraries and archives containing books journals and papers New technologies have made electronic distributed information possible Artifacts are discreet ob-servable nameable representations of ideas such as articles research notes books databases maps computer files and web pages (Foray 2004 Hess and Ostrom 2006) In the context of nanotechnology databases material and model repositories accessible laboratories that aggregate equipment and tools for nanotechnology development are varied options to manage the outputs Hence any outcomes analysis should seek to determine the success of collaboration including the amount of data produced and accessed the material generated housed and accessed the tools created and used and the technology produced by participants Governance Internal rules or mechanisms used to promote cooperative be-haviour can include formalizing the requirements to join the initiative en-suring frequent interactions encouraging communication between partici-pants monitoring and punishing defection and setting the boundary for access to resources An authority that regulates access to resources can en-sure that a fair and efficient governance strategy is used (Ostrom Gardner and Walker 1994) While access generally refers to disembodied assets such

as data extraction can involve the removal andor use of physical materials models and tools Knowledge use and access can be governed by the fol-lowing rules sharing with partners only (closed access) sharing with part-ners and the public at large (open access) and intellectual property assign-ment potentially on information materials tools and technology with the specification of rights to use based on licensee type geography or target market for product launch Creating Value The Path Forward in The path forward will require the creation of supporting policies encourag-ing multi-disciplinary collaboration At a national level several governments have recognized the importance of innovation networks to develop capacity and compete on an international level Consequently policies are now pro-viding more RampD funding and incentives encouraging the formation of multi-sectoral networks (Corley Boardman and Bozeman 2006) New prod-ucts of convergent technologies will necessitate cooperation among regula-tory bodies with the coordination of information flow coordination of du-ties and increased harmonization between international regulatory bodies (Castle et al 2006 Drezek and Tour 2010) To avoid the mistakes of the past policies outlining guidelines for the management of intellectual prop-erty rights can ensure that stakeholders will correctly assess the common value of knowledge versus the private value of knowledgemdashresulting in the transition from open knowledge to appropriated knowledge with the objec-tive of pursuing (unilateral or collaborative) downstream product develop-ment References 1) Allarakhia M amp Walsh S Managing knowledge assets under conditions of radical change The case of the pharmaceutical industry Technovation 31 105-117 (2011) 2) Boardman P Beyond the stars The impact of affiliation with university biotechnology centers on the industrial involvement of university scientists Technovation 28 291-297 (2008) 3) Boardman Pamp Ponomarioy B University researchers working with pri-vate companies Technovation 29 142-153 (2009) 4) Castle D Loeppky R Saner M Cline C Dalgleish J amp Wojnik V Convergence in Biotechnology Innovation Case Studies and Implications for Regulation (University of Guelph Guelph 2006) 5) Corley EA Boardman PC amp Bozeman B Design and the manage-ment of multi-institutional research collaborations Theoretical implications from two case studies Research Policy 35 975-993 (2006) 6) Drezek RA amp Tour JM Is Nanotechnology Too Broad to Practice Nature Nanotechnology 5 168-169 (2010) 7) DlsquoSilva J Pools thickets and open source nanotechnology European Intellectual Property Review 31 300-306 (2009) 8) Foray D The Economics of Knowledge (MIT Press Cambridge 2004) 9) Hess C amp Ostrom E Understanding Knowledge as a Commons From Theory to Practice (MIT Press Cambridge 2006) 10) Ideker TT Galitski L amp Hood LE A new approach to decoding life Systems biology Annual Review Genomics and Human Genetics 2 343-372 (2001) 11) Kautt M Walsh S amp Bittner K Global distribution of microndashnano technology and fabrication centers A portfolio analysis approach Technol-ogy Forecasting and Social Change 74 1697-1717 (2007) 12) Kitano H Systems biology Toward systems-level understanding of bio-logical systems Foundation of Systems Biology 1-29 (MIT Press Cam-bridge 2001) 13) Lemley MA Patenting nanotechnology Stanford Law Review 58 601-630 (2005) 14) Melese T Lin SM Chang JL amp Cohen NH Open innovation net-works between academia and industry an imperative for breakthrough therapies Nature Medicine 15 502-507 (2009) 15) Ostrom E Gardner R amp Walker J Rules Games and Common-Pool Resources (The University of Michigan Press Ann Arbor 1994) 16) Porter AL amp Youtie J How interdisciplinary is nanotechnology Jour-nal of Nanoparticle Research 11 1023-1041 (2009) 17) Powell WW Koput KK amp Smith-Doerr L Inter-organizational col-laboration and the locus of innovation Network of learning in biotechnol-ogy Administrative Science Quarterly 41 116-145 (1996) 18) Roijakkers N amp Hagedoorn Inter-firm RampD partnering in pharmaceu-tical biotechnology since 1975 Trends patterns and networks J Research

Policy 35 431minus446 (2006) 19) Schmidt K Project on Emerging Nanotechnologies (2007)

17

18

Beyond Cost-Savings Hidden Considerations for Conducting Clinical Trials in Asia

By Jessica Liu General Manager ChinaNorth Asia INC Research and Garth Tierney Regional General Manager Australia and South East Asia INC Research

Abstract Pharmaceutical industry sponsors are well-aware of the cost bene-fits of conducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the pri-mary criteria by which sponsors should select the Asian regions in which they will conduct their clinical trials Other important considerations include disease incidence treatment standards minimizing variability maximizing protocol adherence regulatory factors politics cultural considerations and ethical concerns While global spending on medicines is expected to grow three percent to five percent over the next five years spending in the ―pharmerging markets is expected to double1 The desire to access this fast-growing consumer base is the primary reason large pharmaceutical companies are increasing their clinical presence in emerging countries like China according to a report from investment bank-ing firm William Blair2 But small to midsize drug makers are also moving into emerging markets driven primarily by cost differentials China can offer as much as a 50 percent cost advantage compared to the United States or Europe as can Thailand the Philippines or Malaysia Most countries in Asia are at least 20 percent to 30 percent more cost-efficient than their western counterparts although there are notable exceptions such as South Korea and Japan Pharmaceutical industry sponsors are well-aware of the cost benefits of con-ducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the primary criteria by which sponsors should select the Asian regions in which they will con-duct their clinical trials Other important considerations for conducting a trial in Asia include disease incidence and treatment standards the potential to minimize variability and maximize protocol adherence regulatory and political factors and cultural and ethical considerations Disease Incidence and Treatment Standards With more than four billion people Asia offers sponsors a deep pool from which to draw clinical trial participants Indeed for sponsors conducting late-stage clinical trials in indications such as diabetes or cardiovascular dis-ease which can require thousands of patients establishing Asian trial sites to tap into that pool is critical The key is determining which Asian countries will best match each triallsquos unique patient requirements For sponsors most concerned with enrolling large numbers of patients into a trial highly populous countries such as India China Indonesia Japan the Philippines Thailand and Malaysia may be the best fit A recent CRO survey revealed that China is the leader in patient recruitment for the Asia-Pacific region followed by India and South Korea3 However sponsors need to be aware that the region is still expanding and a vast population does not equate to vast number of ICH GCP trained sites in the larger countries of China and India This can be a limiting factor in gaining access to the best sites for certain indications If on the other hand a sponsor is conducting a Phase I trial they should know that certain Asian countries have specific regulatory requirements for approval of a clinical trial application (CTA) that can add complexity to the process Others like Australia specialize in Phase I studies thanks to their fast and straightforward approval processes high-quality clinical practices and variety of many academic and commercial clinical trials centers4 Selecting an appropriate region for trial sites also depends on the incidence of the target disease in each countrylsquos population Highly-developed Asian countries have a higher incidence of diseases common in the West such as diabetes and cardiovascular disease while diseases such as tuberculosis are more common in Southeast Asia Some countries like India have diverse patient populations afflicted with diseases of both the developing and devel-oped world

When it comes to standards of care certain diseases like breast cancer lung cancer and diabetes are treated in much the same way in Asia as they would be treated in the Western world But for many other indications medical practice standards differ both from East to West and between the different Asian regions Sponsors seeking to meet specific market regulatory approval will need to mirror Western standards-of-care and as such should consider focusing trial sites to Australia New Zealand Singapore Taiwan Hong Kong and South Korea But differing standards of care can also provide unique opportunities Asia offers relatively more patients for first-line and second-line cancer drug evaluation than the West where such patient stores have been largely exhausted Risk Mitigation Sponsors should be prepared that some Asian trial sites ndash even those that have adapted Western-style medical practices ndash may require more assistance when it comes to following protocol and differentiating between medical practice and clinical research Not all Asian sites will have the infrastructure for a clinical trial A good CRO partner will work with a sponsor and site investigators to identify any infrastructure gap ndash such as a dedicated com-puter fax or freezer ndash and develop plans to ensure sites have the essentials to deliver a study efficiently Data integrity is another area that sponsors and CROs need to focus atten-tion It is critical to reduce variability by ensuring all monitoring and site staff are well trained Monitors need to understand how to identify and pro-actively resolve issues early on to minimize long-term issues with patient recruitment and data collection They should understand how to recognize early warning signals and not overreact to red herrings Investigators and site monitors also need to be trained in adverse event reporting to ensure that they meet local regional and global clinical trial safety reporting Sponsors must ensure monitoring visits are being conducted regularly as such visits make it more likely that recruitment and data integrity issues will be detected early and managed in a timely and effective manner Equally im-portant site staff needs to be as consistent as possible Finally sponsors need to implement a proven system for data reporting as variability in the data collection process may decrease the evaluable patient pool in the trial decreasing the sponsorlsquos chances to establish statistical sig-nificance or detect a rare safety signal Regulatory and Political Factors While regulatory bodies in South Korea and Taiwan as well as in Singapore have adopted an FDA-based approach each Asian country has its own regulatory idiosyncrasies In China for example reviews take on a project-based nature and sponsors should never assume that what worked in one application will be directly applicable to another No matter how harmo-nized Asia may appear the cookie-cutter approach simply doesnlsquot work However the fact that regulatory policies are still evolving in certain Asian countries provides a unique opportunity to sponsors the opportunity to in-fluence those policies There are no formal guidances or rules covering this topic but it is a real opportunity The recent economic downturn has prompted finance ministers in many countries to more closely analyze the cost of healthcare and they are realizing that good drugs can decrease their overall costs To ensure new drugs are available in their countries they have become increasingly eager to support clinical trials and they are engaging in conversations with sponsors about how approval pathways might be con-structed that take healthcare economics into consideration For example if a sponsor works closely with regulatory agencies to design the right preclinical and Phase I trials could a single Phase IIIII trial be sufficient for approval in some indications Are so many repetitive studies really necessary Is the requirement or guidance relevant to the current technology If a sponsor can prove to the government that a certain disease is currently costing 50 cents per person per day to treat and a new drug would change treatment paradigms and reduce that cost to a penny that is a compelling argument Not compelling enough to compromise safety or effi-cacy but compelling enough to expedite things along by partnering to agree upon the most appropriate pathway to approval While some regulatory agencies may not be as comfortable with the idea of allowing more flexibility and customization in the clinical trial design many are open to reducing bu-reaucracy and the associated time delays for CTA approval ndash particularly when there is potential to significantly impact health economics Govern-ments may provide commercialization support including funding to enable

19

development of new technologies and testing methods There may also be a higher priority given to certain CTA applications in the review queue Australia and Singapore have adopted a more simplified regulatory process and offer a notification scheme rather than formal review by the regulator South Korea and Taiwan are working to ease regulations and facilitate pro-tocol reviews Countries such as China have lengthy regulatory approval processes however there are some early indications that this may be de-creasing India is currently experiencing slower regulatory paths Interest-ingly some Asia Pacific countries that have historically been considered ―easy targets for clinical trials are increasing their regulations While there is much potential to collaborate with regulatory bodies in Asia these are not the only government agencies with which a sponsor must work Each country has its own policies on insurance regulations import licenses and other factors that affect a sponsorlsquos ability to establish and run clinical trial sites Each should be reviewed before selecting countries in which to establish trial sites Cultural and Ethical Considerations Language barriers can be easily overcome by CRO partners with offices across Asia and they are the least of a sponsorlsquos worries when it comes to cultural differences More pressing are issues such as the fact that some Asian researchers may believe that their participation in a trial gives them the right to publish data on their findings while sponsors require at least some degree of control over the publication of trial data Such issues are best managed by thorough communication prior to the start of enrolment In certain countries cultural factors may positively impact a trial Ethical factors may also weigh on a sponsorlsquos decision to conduct trials in certain Asian countries There are certain diseases that present a serious unmet medical need specifically within Asian populations such as foot-and-mouth disease and such indications obviously lend themselves to Asian clinical tri-als Yet if a sponsor has no plans to launch a drug in certain Asian countries perhaps because the populations of those countries would not be able to afford the drug then conducting clinical research in those countries may present ethical challenges For the most part however sponsors are eager to launch their drugs into the rapidly growing Asian healthcare markets and Asian clinical trials are necessary to support this endeavour As mentioned initially the cost advan-tages of conducting clinical trials in Asia cannot be ignored as both large and small companies face pressures on their bottom lines But while costs are important they are not the only consideration About the Authors Jessica Liu MD is the general manager for Clinical Operations in China and North Asia at INC Research She previously managed international pro-jects out of the European headquarters office for a global CRO in Brussels Belgium Prior to that she worked for 15 years in the Chinese affiliates of several global pharmaceutical companies overseeing clinical operations pro-ject management and medical affairs She conducted and managed Phase I-IV clinical studies across multiple therapeutic areas Dr Liu started her ca-reer as a resident physician in the endocrinology Department of the Peking Union Medical College Hospital (PUMCH) in Beijing China She received her Medical Doctorate from the University of Beijing (China) and has a Di-ploma in Pharmaceutical Medicine from the University of Basel (Switzerland) Dr Liu is based in Beijing She can be reached at jialiuincresearchcom Garth Tierney is the regional general manager for Australia and South East Asia for INC Research Garth previously founded and managed Trident Clinical Research a CRO based throughout Australia New Zealand and In-dia After 14 years of operation Trident was acquired by INC Research in June 2011 Prior to founding and managing Trident Clinical Research Garth worked for 8 years in the clinical research industry in various senior manage-ment and operational management roles across several companies including a global CRO an Australian pharmaceutical company and two global phar-maceutical companies Garth has a pharmacology (University of NSW) and business administration (University of Adelaide) background and worked in hypertension research for several years before joining the pharmaceutical industry During this time Garth published various papers and won the Whelan prize (awarded by ASCEPT) He can be reached at gtierneyincresearchcom

References 1 IMS IMS Institute Forecasts Global Spending on Medicines to Reach

Nearly $11 Trillion by 2015 May 18 2011 2 Wm Blair Pharmaceutical Outsourcing Industry Analysis Jun 10

2010 3 CyberMedia Research-BioSpectrum Asia-Pacific CRO Survey 2011 4 Clinical Trials Action Group Report Commonwealth of Australia

2011 CPTR Yields Progress New Six-Way Agreement has Goal to Speed Development of TB Drug Combinations November 11 2011 The Critical Path to TB Drug Regimens (CPTR) announced this November an innovative agreement between AstraZeneca Bayer Sanofi Tibotec TB Alliance and the World Health Organization to share information on tuber-culosis (TB) compounds within their respective drug pipelines to quickly identify and work together to develop the most promising TB drug regimen regardless of sponsor The partnership facilitates a more collaborative ap-proach to TB drug development with the objective to dramatically speed the development of shorter safer and more effective multi-drug treatments that are urgently needed to control the global TB pandemic The agreement will enable information-sharing around scientific and clinical data on TB compounds in clinical development By sharing data partners can identify opportunities to test their compounds in combination speeding availability of future TB regimens The collaboration includes the majority of global sponsors with TB drugs in clinical development Under the agree-ment if two or more organizations choose to work together to further de-velop a regimen they will enter into a separate arrangement that defines the rights and responsibilities of each party CPTR is working closely with regulatory scientists at the US Food and Drug Administration European Medicines Agency and other regulatory bodies in China India and some countries in Africa to develop the tools that are needed to allow testing of new TB drugs in combination cutting years off the development timeline Under the leadership of the Critical Path Institute CPTRlsquos Regulatory Science Consortium focuses on establishing consensus on preferred standards methods and tools for developing new TB drug regimens and obtaining official acceptance from international regulatory authorities Source TB Alliance Pfizer Establishes the Cambridge Research Center September 01 2011 Pfizer Inc recently announced it has entered into a 10-year lease agreement with the Massachusetts Institute of Technology (MIT) for more than 180000 square feet in a new building under development in Cambridge Massachusetts Located at 610 Main Street South in Kendall Square the new site will be the future location of Pfizerlsquos Cardiovascular Metabolic and En-docrine Disease (CVMED) and Neuroscience Research Units The reloca-tion of the two Research Units will substantially boost Pfizerlsquos footprint in Cambridge making it the second largest biopharmaceutical company in Massachusetts in terms of jobs ―We were very deliberate in our choice to move to Cambridge MA as a key part of our RampD strategy By expanding our presence in one of the worldlsquos great centers of scientific and medical innovation we will provide the best environment for our researchers to invent the next generation of medicines in areas of greatest need such as Alzheimerlsquos disease schizophrenia diabe-tes and cardiovascular disease said Rod MacKenzie senior vice president and head of PharmaTherapeutics Research amp Development ―We intend to foster productive formal and informal collaborations between our drug dis-covery experts and the outstanding scientists of Cambridgelsquos world class institutions This is a very exciting period in Pfizer RampD Source Pfizer

20

21

Continued from page 19hellip UK Academia Given Access to Selected AstraZeneca Compounds December 11 2011 Following a unique landmark agreement between AstraZeneca and the UK Medical Research Council (MRC) a wide range of compounds will be made available to UK medical researchers next year In a new type of collabora-tion academia will be granted access to 22 clinical and preclinical com-pounds developed by AstraZeneca Though making individual compounds available to external academic investigators is not unusual the breadth and open-innovation nature of this collaboration is unique because it provides unprecedented access to well characterised clinical and preclinical candidate molecules to investigators across all UK academic institutions There is significant unmet need in diseases both within and outside Astra-Zenecalsquos current research focus This collaboration builds on the sizable in-vestment made in developing candidate drugs within AstraZeneca by help-ing researchers to explore their potential more broadly with the hope that they will find new future medicines It also helps AstraZeneca explore areas of unmet patient need beyond its current disease area focus leveraging great external science in a way that is highly flexible and cost effective The New Opportunities Innovative Medicines Unit (iMed) in AstraZeneca has been central in establishing this research collaboration with the MRC and has acted as the interface with the other AstraZeneca iMeds to agree which compounds would be eligible Clive Morris VP New Opportunities iMed said that ―This Open Innova-tionlsquo approach brings together the strengths of AstraZeneca the MRC and UK Academia into what I hope will be a really potent mix bringing forward really exciting new ideas that could transform our understanding of some diseases It highlights an openness to new scientific thinking and also places external scientific collaboration right at the heart of what we do It is also an excellent way to broaden our portfolio of activities into new diseases for As-traZeneca leveraging the wealth of expertise across UK academia AstraZeneca and the MRC will invite preclinical and clinical research pro-posals from across the UK academic community to investigate the com-pounds in a range of diseases with a view to finding new treatment oppor-tunities AstraZeneca will work with the academic collaborators to develop the best scientific proposals and the MRC will select the highest quality pro-posals for funding awarding up to pound10 million in total to fund the success-ful proposals The successful applicants will then work collaboratively with AstraZeneca to deliver the studies David Brennan AstraZenecalsquos Chief Executive Officer said ―Innovative collaborations are playing a crucial role in finding ways to unlock the poten-tial of new treatments The UK has a strong heritage of research excellence in life sciences We hope that in sharing these valuable compounds with aca-demic scientists through the MRC new discoveries will be made by explor-ing additional uses of these compounds Source AstraZeneca WIPO ReSearch A Neglected Tropical Diseases Initiative October 26 2011 The World Intellectual Property Organization (WIPO) in an unprecedented collaboration with leading pharmaceutical companies and BIO Ventures for Global Health (BVGH) recently launched the WIPO Re Search a new consortium where public and private sector organizations share valuable in-tellectual property (IP) and expertise with the global health research commu-nity to promote development of new drugs vaccines and diagnostics to treat neglected tropical diseases malaria and tuberculosis In WIPO ReSearch Alnylam Pharmaceuticals AstraZeneca Eisai GlaxoS-mithKline MSD1 Novartis Pfizer and Sanofi are collaborating with WIPO BVGH the US National Institutes of Health (NIH) and multiple non-profit research organizations These include the California Institute of Technology the Center for World Health amp Medicine the Drugs for Ne-glected Diseases initiative Fundaccedilatildeo Oswaldo Cruz (Fiocruz) Massachu-setts Institute of Technology Medicines for Malaria Venture PATH the South African Medical Research Council the Swiss Tropical and Public Health Institute the University of California Berkeley and the University of Dundee (UK)

―WIPO ReSearch is a ground breaking example of how a multi-stakeholder coalition can put IP to work for social benefit said WIPO Director Gen-

eral Francis Gurry ―By joining WIPO ReSearch companies and researchers commit to making selected intellectual property assets available under roy-alty-free licenses to qualified researchers anywhere in the world for research and development on neglected tropical diseases malaria and tuberculosis This commitment should accelerate the development of medicines vaccines and diagnostics for these diseases

According to the World Health Organization (WHO) neglected tropical diseases today impair the lives of an estimated 1 billion people The WHO provides technical advice to WIPO on public health issues and research pri-orities as appropriate

By providing a searchable public database of available intellectual property assets information and resources WIPO ReSearch facilitates new partner-ships with organizations that conduct research on treatments for neglected tropical diseases malaria and tuberculosis

Membership in WIPO ReSearch as a user provider or supporter is open to all organizations that endorse adhere to and support the projectlsquos Guiding Principles These Guiding Principles include the commitment that IP li-censed via WIPO ReSearch will be licensed on a royalty-free basis for re-search and development on neglected tropical diseases in any country and on a royalty-free basis for sale of neglected tropical disease medicines in or to least developed countries

―The innovative pharmaceutical industry has an important part to play in addressing unmet medical needs and increasing access to our collective pro-prietary information will help advance research into treatment options for these underserved diseases said David Brennan CEO of AstraZeneca and President of the International Federation of Pharmaceutical Manufacturers amp Associations (IFPMA) ―WIPO ReSearch has the potential to make a real impact on global health which is why we are proud to make all patents owned by AstraZeneca available to this important initiative for promoting the research and development of treatments for neglected tropical diseases anywhere in the world

The WIPO ReSearch database includes a wide variety of contributions rele-vant to malaria tuberculosis and other neglected tropical diseases including individual compounds and associated data screening hits from compound libraries and expertise and know-how in pharmaceutical research and devel-opment In addition WIPO ReSearch offers the opportunity for neglected tropical disease researchers to work directly with scientists at pharmaceutical companies to advance RampD on these diseases As WIPO ReSearch moves forward offerings from current partners will continue to grow and new pro-viders are expected to join to add to the wealth of information compounds and services available

―NIH licenses its patents to enable the private sector to develop diagnostics therapeutics and devices that improve public health said National Insti-tutes of Health Director Francis S Collins MD PhD ―We want to ensure that our biological materials and patents covering treatments or vaccines for neglected tropical diseases as with all diseases are available as broadly as possible to speed the development of new products for people who are most burdened by these diseases and WIPO ReSearch helps us to do this

The founding eight pharmaceutical companies WIPO BVGH and NIH are joined by a distinguished group of globally recognized institutions as provid-ers potential users and supporters of WIPO ReSearch (see annex) BVGH will manage the WIPO ReSearch Partnership Hub which will facilitate rela-tionships between the pharmaceutical company providers and new users

―In our role as administrator of the WIPO ReSearch Partnership Hub BIO Ventures for Global Health is excited to bring these new opportunities to neglected disease researchers around the world to accelerate their work in this area of critical unmet need said Don Joseph Chief Operating Officer of BVGH ―As both present and future providers evaluate their internal data and IP with the goal to provide focused information which they believe will best serve the neglected tropical disease research and development commu-nity WIPO ReSearch will build on previous RampD investments to speed the development of drugs vaccines and diagnostics for the neglected diseases that disproportionately impact people living in resource-poor countries Source WIPO

Page 12: Bio Outsourcing Asia: Volume 1 Issue 3 2011.pdf · TB drug trials. Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies

12

Figure 1 Interactions in the SpringFire Laboratory Network Knowledge management is vital both to the effective working of the project team but also to the efficient transfer of information to and from the Sponsor as well as to external audiences such as site investigators regulatory authorities and potential licensees Outsourcing multiple stages of the drug product life cycle is critical for those companies that require access to expertise and technology in a rapidly chang-ing paradigm without the risk and cost associated with internal development Both young and small biotechnology companies and large traditional phar-maceutical companies can benefit from the model of drug discovery and development offered by organizations such as the SpringFire Laboratory Network

SPRINGFIRE

CORE TEAMPartner Selection

Best Practice Sharing

Baylor College of

Medicines

Cancer Genetics

Laboratory

GI Pathology

D-Path

ITxM Diagnostics

Baylor College of

Medicines

Molecular Genetics

Laboratories

Atherotech

Diagnostics

SPONSORCRO

PARTNER

MATCHING

GOVERNANCE

LESSON

KNOWLEDGE

TRANSFER

UPCOMING BIO PARTNERSHIPS ASIA 2012 CALENDAR

EDITORIAL

TRENDS AND ANALYSIS Articles that run 1500-2000 words and explore trends across the value chain describe opportunities in emerging Asian markets outline policy changes enabling partnerships in these markets and discuss the management of such partnerships

CASE STUDIES Company case studies that run 500-1000 words and explore partnerships across the drug discovery and development value chain

Submit text and electronic images with a resolution of 300 dpi or better We cannot guarantee placement in a particular issue The staff may schedule an entry to coincide with a certain issues editorial theme

COMPANY PROFILES Service provider profiles Send the following information Company name

contact information description services offered markets served and partnerships sought Also send a company logo

TECHNOLOGY PROFILES Technology licensing opportunities Send the following information Technology background areas of application competitive advantages stage of development intellectual property status partnerships sought and contact

information Please forward an image if applicable

NEWS RELEASES Updates on deals partnerships opportunities Send a press release and a company logo

MONTH FEATURE STORIES TRENDS AND ANALYSIS

CASE STUDIES

February 2012 New Models of Open Innovation in Asia

Business Model Analysis

Company Profiles

May 2012 Cluster Formation and Participation in Asia

Case Analysis Cluster Profiles

August 2012 Partnerships and Biopharmaceutical Capacity

Development in Asia

Case Analysis Company Profiles

November 2012 Transferring the Lessons from Asia to the Bottom of

the Pyramid

Lessons from India China Singapore

Middle East

Company Profiles

13

14

15

Convergence Innovation Development at the Intersection of Disciplines Organizations and Products Convergence Innovation is the paradigm where discovery and technology creation occur at the intersection of multiple disciplines and organizations Specifically convergence between the chemical biological cognitive physi-cal and information sciences is evident Firms and researchers will cross the boundaries between these disciplines to create technological value--finding solutions to address health environmental and energy challenges In parallel will be emergence of new models of collaboration to enable knowledge crea-tion and knowledge dissemination Central to Convergence Innovation will be a determination of the common value of knowledge versus the private value of knowledge across the associated disciplinesmdashwith the goal of ad-vancing and commercializing technology Levels of Convergence Convergence can be considered at three levelsmdashnamely convergence in the sources of knowledge for research convergence in organizational forms to enable technology development and convergence at the product level with the embodiment of knowledge in complementary products For example while nanotechnology research has been shown to have a dominant focus on material sciences additional analysis has demonstrated that nano-based research increasingly draws its knowledge from other areas (Porter and Youtie 2009) Specifically Porter and Youtie (2009) reveal that while nano-based publications center on materials science (including chemistry and physics) nano-based research also significantly involves many other fields including biomedical sciences computer sciences and mathematical sci-ences environmental sciences and engineering Citation patterns further show extensive referencing across macro-disciplinesmdashwith a preponderance of references in nano-related articles to research outside the macro-discipline in which the article is published (Porter and Youtie 2009) Conse-quently at this level of convergence the sharing and absorption of research across the involved disciplines will be necessary for downstream value crea-tion (Figure 1) Figure 1 Convergence at the Disciplinary (Knowledge Sources) Level At the next level of convergencemdashthe organizational levelmdashthe interaction between technological convergence and models of open innovation is be-coming apparent Licensing mergers acquisitions and strategic alliances such as joint ventures as well as new structures such as innovation networks and open innovation communities represent alternative strategies that may be used to acquire or access the necessary knowledge or assets for discovery and development From a convergence perspective the opportunity exists for a (public or private) stakeholder to not only interact with other (public andor private sector) stakeholders through simple one-to-one traditional collaborations but with many stakeholders through more complex mecha-nisms such as consortia crowdsourcing and other such open innovation communities For example the need for shared scientific expertise and large scale infrastructure in both nanotechnology and biotechnology is thought to be responsible for the development of networks spanning both fields (Figure 2) The pervasiveness of enabling technologies such as information and communications technology (ICT) have encouraged innovation net-works to increase in dominance and have lead to the blurring of organiza-tional boundaries among research organizations (Powell Koput and Smith-Doerr 1996 Roijakkers and Hagedoorn 2006) In such collaborations the opportunity to assume multiple roles exists to enable RampD including the collaborator who shares knowledge with one or many partners for the pur-poses of discovery or development the incubator who provides funding or expertise to other stakeholders to support venture development the enabler

who provides access to tools equipment large scale infrastructure or other services to support product development and the orchestrator who manages the network of partners with either the objective of knowledge creation or knowledge application (Melese Lin Chang and Cohen 2009) At this level of convergence there is the critical need to closely examine the management processes associated with collaboration as the collaborative strategies have not only grown in relevance but also in terms of impact and the number of participants involved

Collaboration Model

Access

Simple (One to One) Complex (Many to Many)

Collaboration Complexity

Figure 2 Convergence at the Organizational Level Open Access=Participation Open Closed Access=Exclusive Partnership

Simple=One to One Link between Partners Complex=Many Links between Several Partners PPP=Public Private Partnership JV=Joint Venture

The location in the above grid determines the extent to which the collabora-tion is open or closed and between one few or many partners

Finally the outcomes from any collaborative interaction will increasingly lead to convergence at the product level In this case multiple components or products will be packaged together to enhance the value over individual product offerings (Figure 3) Such bundled products will have the goal of simultaneously meeting several technological needs be it for biomedical treatment as seen in the use of nano-based diagnostics paired with therapeutics in agriculture or environmental applications as seen in the use of sensors to measure pathogens in food and the environment or the use of nanospheres to selectively detect harmful materials in water and then used for detoxification and in the creation of novel energy technologies as seen in the use of catalysts in particles for biodiesel synthesis to name a few (Schmidt 2007) At the product level effective intellectual property man-agement strategies and coordination between regulatory agencies will be paramount

Figure 3 Convergence at the Product Level

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

COGNITIVE

PPP JV

MampA

Consortium Innovation Network

Crowdsourcing Open Source Network

Licensing

Proprietary Open Innovation Community

Closed

Open

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

Nanomaterials

Nanodevices

Nanoelectronics

Nanosensors

Bioinformatics

Biosensors

Tissue Engineering

Drug Delivery

Diagnostics

Drug Delivery

Chemical Catalysis

Nanofiltration

Chemical Sensors

Neuron Network

Prostheses GenerationCOGNITIVE

16

The Impact of Convergence At each level of convergence there are several complexities that either im-pact the management of stakeholder interaction or the management of the knowledge based assets generated through such interactions For example given the expected intersection between disciplines knowledge complexities including varied types (such as biological information and biological struc-tures chemical knowledge and structures physical knowledge and struc-tures) and forms of knowledge (disembodied and embodied) will drive the need for a common platform for knowledge integration validation and standardization Beyond integration of knowledge it is expected that teams of biological chemical and physical scientists will increasingly form to de-velop and bridge together the necessary tools and equipment for RampD ac-tivities (Ideker Galitski and Hood 2001 Kitano 2001 Kautt Walsh and Bittner 2007 Boardman 2008 Boardman and Ponomarioy 2009) We must also consider the impact of convergence on the downstream rights to de-velop products Lemley (2005) discusses that unlike other industries in which patentees are actual or potential participants in the downstream mar-ket a significant number of corporate patentees will increasingly own rights not just in the industry in which they participate but other industries as well Analysts fear that over-patenting alongside the large shadow of such patents could not only fragment technology but could discourage stakeholders in a number of industries from attempting to develop products incorporating infringing technologies (Lemley 2005) It is important to consider that as multiple disciplines increasingly working together each discipline will have its own priorities and conventions regarding knowledge dissemination and knowledge appropriation (Hilgartner 1996) One discipline may signal its success during knowledge generation through the enclosure and the sale of disembodied knowledge Another discipline may measure its success exclu-sively by the embodiment of knowledge in medical products (Hilgartner 1996) While patent pools are a suggested solution to the possible patent holdups (DlsquoSilva 2009) it has been proposed that as has occurred in the genomics arena innovation-based networks with rules regulating the devel-opment and appropriation of critical technology building blocks could not only circumvent the product development and legal problems of the past but will also bring together the requisite intellectual and physical capital (DlsquoSilva 2009 Allarakhia and Walsh 2010) A Template for Managing Interactions and Knowledge-Based Assets Governance strategies must seek to align the incentives for participation in collaborative activities for multiple stakeholders The use of rules to define actions communication mechanisms used to enable and monitor actions and to share the outcomes are all critical to ensure that goals are achieved Structure and Roles It is expected that the chosen collaboration modemdashone to one one to many or many to many collaboration and objectives set for the collaborationmdashpooling of assets generation of new assets andor pol-icy creation will impact the type of participants that will join The organiza-tional structure chosen will be determined in part by the attributes of the resources to be contributed or developedmdashinformation supporting tools technology as well as the location of participantsmdashwith linkages established through physical clustering or virtual networking Thereafter the organiza-tion of participants may be a function of technological expertise geographic location or project-based management expertise Resource Types and Outcomes Participants will contribute several inputs including funding equipment and human capital The resulting outcomes include data materials tools and technology Facilities store artifacts in or-der to make them accessible Traditional facilities have been libraries and archives containing books journals and papers New technologies have made electronic distributed information possible Artifacts are discreet ob-servable nameable representations of ideas such as articles research notes books databases maps computer files and web pages (Foray 2004 Hess and Ostrom 2006) In the context of nanotechnology databases material and model repositories accessible laboratories that aggregate equipment and tools for nanotechnology development are varied options to manage the outputs Hence any outcomes analysis should seek to determine the success of collaboration including the amount of data produced and accessed the material generated housed and accessed the tools created and used and the technology produced by participants Governance Internal rules or mechanisms used to promote cooperative be-haviour can include formalizing the requirements to join the initiative en-suring frequent interactions encouraging communication between partici-pants monitoring and punishing defection and setting the boundary for access to resources An authority that regulates access to resources can en-sure that a fair and efficient governance strategy is used (Ostrom Gardner and Walker 1994) While access generally refers to disembodied assets such

as data extraction can involve the removal andor use of physical materials models and tools Knowledge use and access can be governed by the fol-lowing rules sharing with partners only (closed access) sharing with part-ners and the public at large (open access) and intellectual property assign-ment potentially on information materials tools and technology with the specification of rights to use based on licensee type geography or target market for product launch Creating Value The Path Forward in The path forward will require the creation of supporting policies encourag-ing multi-disciplinary collaboration At a national level several governments have recognized the importance of innovation networks to develop capacity and compete on an international level Consequently policies are now pro-viding more RampD funding and incentives encouraging the formation of multi-sectoral networks (Corley Boardman and Bozeman 2006) New prod-ucts of convergent technologies will necessitate cooperation among regula-tory bodies with the coordination of information flow coordination of du-ties and increased harmonization between international regulatory bodies (Castle et al 2006 Drezek and Tour 2010) To avoid the mistakes of the past policies outlining guidelines for the management of intellectual prop-erty rights can ensure that stakeholders will correctly assess the common value of knowledge versus the private value of knowledgemdashresulting in the transition from open knowledge to appropriated knowledge with the objec-tive of pursuing (unilateral or collaborative) downstream product develop-ment References 1) Allarakhia M amp Walsh S Managing knowledge assets under conditions of radical change The case of the pharmaceutical industry Technovation 31 105-117 (2011) 2) Boardman P Beyond the stars The impact of affiliation with university biotechnology centers on the industrial involvement of university scientists Technovation 28 291-297 (2008) 3) Boardman Pamp Ponomarioy B University researchers working with pri-vate companies Technovation 29 142-153 (2009) 4) Castle D Loeppky R Saner M Cline C Dalgleish J amp Wojnik V Convergence in Biotechnology Innovation Case Studies and Implications for Regulation (University of Guelph Guelph 2006) 5) Corley EA Boardman PC amp Bozeman B Design and the manage-ment of multi-institutional research collaborations Theoretical implications from two case studies Research Policy 35 975-993 (2006) 6) Drezek RA amp Tour JM Is Nanotechnology Too Broad to Practice Nature Nanotechnology 5 168-169 (2010) 7) DlsquoSilva J Pools thickets and open source nanotechnology European Intellectual Property Review 31 300-306 (2009) 8) Foray D The Economics of Knowledge (MIT Press Cambridge 2004) 9) Hess C amp Ostrom E Understanding Knowledge as a Commons From Theory to Practice (MIT Press Cambridge 2006) 10) Ideker TT Galitski L amp Hood LE A new approach to decoding life Systems biology Annual Review Genomics and Human Genetics 2 343-372 (2001) 11) Kautt M Walsh S amp Bittner K Global distribution of microndashnano technology and fabrication centers A portfolio analysis approach Technol-ogy Forecasting and Social Change 74 1697-1717 (2007) 12) Kitano H Systems biology Toward systems-level understanding of bio-logical systems Foundation of Systems Biology 1-29 (MIT Press Cam-bridge 2001) 13) Lemley MA Patenting nanotechnology Stanford Law Review 58 601-630 (2005) 14) Melese T Lin SM Chang JL amp Cohen NH Open innovation net-works between academia and industry an imperative for breakthrough therapies Nature Medicine 15 502-507 (2009) 15) Ostrom E Gardner R amp Walker J Rules Games and Common-Pool Resources (The University of Michigan Press Ann Arbor 1994) 16) Porter AL amp Youtie J How interdisciplinary is nanotechnology Jour-nal of Nanoparticle Research 11 1023-1041 (2009) 17) Powell WW Koput KK amp Smith-Doerr L Inter-organizational col-laboration and the locus of innovation Network of learning in biotechnol-ogy Administrative Science Quarterly 41 116-145 (1996) 18) Roijakkers N amp Hagedoorn Inter-firm RampD partnering in pharmaceu-tical biotechnology since 1975 Trends patterns and networks J Research

Policy 35 431minus446 (2006) 19) Schmidt K Project on Emerging Nanotechnologies (2007)

17

18

Beyond Cost-Savings Hidden Considerations for Conducting Clinical Trials in Asia

By Jessica Liu General Manager ChinaNorth Asia INC Research and Garth Tierney Regional General Manager Australia and South East Asia INC Research

Abstract Pharmaceutical industry sponsors are well-aware of the cost bene-fits of conducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the pri-mary criteria by which sponsors should select the Asian regions in which they will conduct their clinical trials Other important considerations include disease incidence treatment standards minimizing variability maximizing protocol adherence regulatory factors politics cultural considerations and ethical concerns While global spending on medicines is expected to grow three percent to five percent over the next five years spending in the ―pharmerging markets is expected to double1 The desire to access this fast-growing consumer base is the primary reason large pharmaceutical companies are increasing their clinical presence in emerging countries like China according to a report from investment bank-ing firm William Blair2 But small to midsize drug makers are also moving into emerging markets driven primarily by cost differentials China can offer as much as a 50 percent cost advantage compared to the United States or Europe as can Thailand the Philippines or Malaysia Most countries in Asia are at least 20 percent to 30 percent more cost-efficient than their western counterparts although there are notable exceptions such as South Korea and Japan Pharmaceutical industry sponsors are well-aware of the cost benefits of con-ducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the primary criteria by which sponsors should select the Asian regions in which they will con-duct their clinical trials Other important considerations for conducting a trial in Asia include disease incidence and treatment standards the potential to minimize variability and maximize protocol adherence regulatory and political factors and cultural and ethical considerations Disease Incidence and Treatment Standards With more than four billion people Asia offers sponsors a deep pool from which to draw clinical trial participants Indeed for sponsors conducting late-stage clinical trials in indications such as diabetes or cardiovascular dis-ease which can require thousands of patients establishing Asian trial sites to tap into that pool is critical The key is determining which Asian countries will best match each triallsquos unique patient requirements For sponsors most concerned with enrolling large numbers of patients into a trial highly populous countries such as India China Indonesia Japan the Philippines Thailand and Malaysia may be the best fit A recent CRO survey revealed that China is the leader in patient recruitment for the Asia-Pacific region followed by India and South Korea3 However sponsors need to be aware that the region is still expanding and a vast population does not equate to vast number of ICH GCP trained sites in the larger countries of China and India This can be a limiting factor in gaining access to the best sites for certain indications If on the other hand a sponsor is conducting a Phase I trial they should know that certain Asian countries have specific regulatory requirements for approval of a clinical trial application (CTA) that can add complexity to the process Others like Australia specialize in Phase I studies thanks to their fast and straightforward approval processes high-quality clinical practices and variety of many academic and commercial clinical trials centers4 Selecting an appropriate region for trial sites also depends on the incidence of the target disease in each countrylsquos population Highly-developed Asian countries have a higher incidence of diseases common in the West such as diabetes and cardiovascular disease while diseases such as tuberculosis are more common in Southeast Asia Some countries like India have diverse patient populations afflicted with diseases of both the developing and devel-oped world

When it comes to standards of care certain diseases like breast cancer lung cancer and diabetes are treated in much the same way in Asia as they would be treated in the Western world But for many other indications medical practice standards differ both from East to West and between the different Asian regions Sponsors seeking to meet specific market regulatory approval will need to mirror Western standards-of-care and as such should consider focusing trial sites to Australia New Zealand Singapore Taiwan Hong Kong and South Korea But differing standards of care can also provide unique opportunities Asia offers relatively more patients for first-line and second-line cancer drug evaluation than the West where such patient stores have been largely exhausted Risk Mitigation Sponsors should be prepared that some Asian trial sites ndash even those that have adapted Western-style medical practices ndash may require more assistance when it comes to following protocol and differentiating between medical practice and clinical research Not all Asian sites will have the infrastructure for a clinical trial A good CRO partner will work with a sponsor and site investigators to identify any infrastructure gap ndash such as a dedicated com-puter fax or freezer ndash and develop plans to ensure sites have the essentials to deliver a study efficiently Data integrity is another area that sponsors and CROs need to focus atten-tion It is critical to reduce variability by ensuring all monitoring and site staff are well trained Monitors need to understand how to identify and pro-actively resolve issues early on to minimize long-term issues with patient recruitment and data collection They should understand how to recognize early warning signals and not overreact to red herrings Investigators and site monitors also need to be trained in adverse event reporting to ensure that they meet local regional and global clinical trial safety reporting Sponsors must ensure monitoring visits are being conducted regularly as such visits make it more likely that recruitment and data integrity issues will be detected early and managed in a timely and effective manner Equally im-portant site staff needs to be as consistent as possible Finally sponsors need to implement a proven system for data reporting as variability in the data collection process may decrease the evaluable patient pool in the trial decreasing the sponsorlsquos chances to establish statistical sig-nificance or detect a rare safety signal Regulatory and Political Factors While regulatory bodies in South Korea and Taiwan as well as in Singapore have adopted an FDA-based approach each Asian country has its own regulatory idiosyncrasies In China for example reviews take on a project-based nature and sponsors should never assume that what worked in one application will be directly applicable to another No matter how harmo-nized Asia may appear the cookie-cutter approach simply doesnlsquot work However the fact that regulatory policies are still evolving in certain Asian countries provides a unique opportunity to sponsors the opportunity to in-fluence those policies There are no formal guidances or rules covering this topic but it is a real opportunity The recent economic downturn has prompted finance ministers in many countries to more closely analyze the cost of healthcare and they are realizing that good drugs can decrease their overall costs To ensure new drugs are available in their countries they have become increasingly eager to support clinical trials and they are engaging in conversations with sponsors about how approval pathways might be con-structed that take healthcare economics into consideration For example if a sponsor works closely with regulatory agencies to design the right preclinical and Phase I trials could a single Phase IIIII trial be sufficient for approval in some indications Are so many repetitive studies really necessary Is the requirement or guidance relevant to the current technology If a sponsor can prove to the government that a certain disease is currently costing 50 cents per person per day to treat and a new drug would change treatment paradigms and reduce that cost to a penny that is a compelling argument Not compelling enough to compromise safety or effi-cacy but compelling enough to expedite things along by partnering to agree upon the most appropriate pathway to approval While some regulatory agencies may not be as comfortable with the idea of allowing more flexibility and customization in the clinical trial design many are open to reducing bu-reaucracy and the associated time delays for CTA approval ndash particularly when there is potential to significantly impact health economics Govern-ments may provide commercialization support including funding to enable

19

development of new technologies and testing methods There may also be a higher priority given to certain CTA applications in the review queue Australia and Singapore have adopted a more simplified regulatory process and offer a notification scheme rather than formal review by the regulator South Korea and Taiwan are working to ease regulations and facilitate pro-tocol reviews Countries such as China have lengthy regulatory approval processes however there are some early indications that this may be de-creasing India is currently experiencing slower regulatory paths Interest-ingly some Asia Pacific countries that have historically been considered ―easy targets for clinical trials are increasing their regulations While there is much potential to collaborate with regulatory bodies in Asia these are not the only government agencies with which a sponsor must work Each country has its own policies on insurance regulations import licenses and other factors that affect a sponsorlsquos ability to establish and run clinical trial sites Each should be reviewed before selecting countries in which to establish trial sites Cultural and Ethical Considerations Language barriers can be easily overcome by CRO partners with offices across Asia and they are the least of a sponsorlsquos worries when it comes to cultural differences More pressing are issues such as the fact that some Asian researchers may believe that their participation in a trial gives them the right to publish data on their findings while sponsors require at least some degree of control over the publication of trial data Such issues are best managed by thorough communication prior to the start of enrolment In certain countries cultural factors may positively impact a trial Ethical factors may also weigh on a sponsorlsquos decision to conduct trials in certain Asian countries There are certain diseases that present a serious unmet medical need specifically within Asian populations such as foot-and-mouth disease and such indications obviously lend themselves to Asian clinical tri-als Yet if a sponsor has no plans to launch a drug in certain Asian countries perhaps because the populations of those countries would not be able to afford the drug then conducting clinical research in those countries may present ethical challenges For the most part however sponsors are eager to launch their drugs into the rapidly growing Asian healthcare markets and Asian clinical trials are necessary to support this endeavour As mentioned initially the cost advan-tages of conducting clinical trials in Asia cannot be ignored as both large and small companies face pressures on their bottom lines But while costs are important they are not the only consideration About the Authors Jessica Liu MD is the general manager for Clinical Operations in China and North Asia at INC Research She previously managed international pro-jects out of the European headquarters office for a global CRO in Brussels Belgium Prior to that she worked for 15 years in the Chinese affiliates of several global pharmaceutical companies overseeing clinical operations pro-ject management and medical affairs She conducted and managed Phase I-IV clinical studies across multiple therapeutic areas Dr Liu started her ca-reer as a resident physician in the endocrinology Department of the Peking Union Medical College Hospital (PUMCH) in Beijing China She received her Medical Doctorate from the University of Beijing (China) and has a Di-ploma in Pharmaceutical Medicine from the University of Basel (Switzerland) Dr Liu is based in Beijing She can be reached at jialiuincresearchcom Garth Tierney is the regional general manager for Australia and South East Asia for INC Research Garth previously founded and managed Trident Clinical Research a CRO based throughout Australia New Zealand and In-dia After 14 years of operation Trident was acquired by INC Research in June 2011 Prior to founding and managing Trident Clinical Research Garth worked for 8 years in the clinical research industry in various senior manage-ment and operational management roles across several companies including a global CRO an Australian pharmaceutical company and two global phar-maceutical companies Garth has a pharmacology (University of NSW) and business administration (University of Adelaide) background and worked in hypertension research for several years before joining the pharmaceutical industry During this time Garth published various papers and won the Whelan prize (awarded by ASCEPT) He can be reached at gtierneyincresearchcom

References 1 IMS IMS Institute Forecasts Global Spending on Medicines to Reach

Nearly $11 Trillion by 2015 May 18 2011 2 Wm Blair Pharmaceutical Outsourcing Industry Analysis Jun 10

2010 3 CyberMedia Research-BioSpectrum Asia-Pacific CRO Survey 2011 4 Clinical Trials Action Group Report Commonwealth of Australia

2011 CPTR Yields Progress New Six-Way Agreement has Goal to Speed Development of TB Drug Combinations November 11 2011 The Critical Path to TB Drug Regimens (CPTR) announced this November an innovative agreement between AstraZeneca Bayer Sanofi Tibotec TB Alliance and the World Health Organization to share information on tuber-culosis (TB) compounds within their respective drug pipelines to quickly identify and work together to develop the most promising TB drug regimen regardless of sponsor The partnership facilitates a more collaborative ap-proach to TB drug development with the objective to dramatically speed the development of shorter safer and more effective multi-drug treatments that are urgently needed to control the global TB pandemic The agreement will enable information-sharing around scientific and clinical data on TB compounds in clinical development By sharing data partners can identify opportunities to test their compounds in combination speeding availability of future TB regimens The collaboration includes the majority of global sponsors with TB drugs in clinical development Under the agree-ment if two or more organizations choose to work together to further de-velop a regimen they will enter into a separate arrangement that defines the rights and responsibilities of each party CPTR is working closely with regulatory scientists at the US Food and Drug Administration European Medicines Agency and other regulatory bodies in China India and some countries in Africa to develop the tools that are needed to allow testing of new TB drugs in combination cutting years off the development timeline Under the leadership of the Critical Path Institute CPTRlsquos Regulatory Science Consortium focuses on establishing consensus on preferred standards methods and tools for developing new TB drug regimens and obtaining official acceptance from international regulatory authorities Source TB Alliance Pfizer Establishes the Cambridge Research Center September 01 2011 Pfizer Inc recently announced it has entered into a 10-year lease agreement with the Massachusetts Institute of Technology (MIT) for more than 180000 square feet in a new building under development in Cambridge Massachusetts Located at 610 Main Street South in Kendall Square the new site will be the future location of Pfizerlsquos Cardiovascular Metabolic and En-docrine Disease (CVMED) and Neuroscience Research Units The reloca-tion of the two Research Units will substantially boost Pfizerlsquos footprint in Cambridge making it the second largest biopharmaceutical company in Massachusetts in terms of jobs ―We were very deliberate in our choice to move to Cambridge MA as a key part of our RampD strategy By expanding our presence in one of the worldlsquos great centers of scientific and medical innovation we will provide the best environment for our researchers to invent the next generation of medicines in areas of greatest need such as Alzheimerlsquos disease schizophrenia diabe-tes and cardiovascular disease said Rod MacKenzie senior vice president and head of PharmaTherapeutics Research amp Development ―We intend to foster productive formal and informal collaborations between our drug dis-covery experts and the outstanding scientists of Cambridgelsquos world class institutions This is a very exciting period in Pfizer RampD Source Pfizer

20

21

Continued from page 19hellip UK Academia Given Access to Selected AstraZeneca Compounds December 11 2011 Following a unique landmark agreement between AstraZeneca and the UK Medical Research Council (MRC) a wide range of compounds will be made available to UK medical researchers next year In a new type of collabora-tion academia will be granted access to 22 clinical and preclinical com-pounds developed by AstraZeneca Though making individual compounds available to external academic investigators is not unusual the breadth and open-innovation nature of this collaboration is unique because it provides unprecedented access to well characterised clinical and preclinical candidate molecules to investigators across all UK academic institutions There is significant unmet need in diseases both within and outside Astra-Zenecalsquos current research focus This collaboration builds on the sizable in-vestment made in developing candidate drugs within AstraZeneca by help-ing researchers to explore their potential more broadly with the hope that they will find new future medicines It also helps AstraZeneca explore areas of unmet patient need beyond its current disease area focus leveraging great external science in a way that is highly flexible and cost effective The New Opportunities Innovative Medicines Unit (iMed) in AstraZeneca has been central in establishing this research collaboration with the MRC and has acted as the interface with the other AstraZeneca iMeds to agree which compounds would be eligible Clive Morris VP New Opportunities iMed said that ―This Open Innova-tionlsquo approach brings together the strengths of AstraZeneca the MRC and UK Academia into what I hope will be a really potent mix bringing forward really exciting new ideas that could transform our understanding of some diseases It highlights an openness to new scientific thinking and also places external scientific collaboration right at the heart of what we do It is also an excellent way to broaden our portfolio of activities into new diseases for As-traZeneca leveraging the wealth of expertise across UK academia AstraZeneca and the MRC will invite preclinical and clinical research pro-posals from across the UK academic community to investigate the com-pounds in a range of diseases with a view to finding new treatment oppor-tunities AstraZeneca will work with the academic collaborators to develop the best scientific proposals and the MRC will select the highest quality pro-posals for funding awarding up to pound10 million in total to fund the success-ful proposals The successful applicants will then work collaboratively with AstraZeneca to deliver the studies David Brennan AstraZenecalsquos Chief Executive Officer said ―Innovative collaborations are playing a crucial role in finding ways to unlock the poten-tial of new treatments The UK has a strong heritage of research excellence in life sciences We hope that in sharing these valuable compounds with aca-demic scientists through the MRC new discoveries will be made by explor-ing additional uses of these compounds Source AstraZeneca WIPO ReSearch A Neglected Tropical Diseases Initiative October 26 2011 The World Intellectual Property Organization (WIPO) in an unprecedented collaboration with leading pharmaceutical companies and BIO Ventures for Global Health (BVGH) recently launched the WIPO Re Search a new consortium where public and private sector organizations share valuable in-tellectual property (IP) and expertise with the global health research commu-nity to promote development of new drugs vaccines and diagnostics to treat neglected tropical diseases malaria and tuberculosis In WIPO ReSearch Alnylam Pharmaceuticals AstraZeneca Eisai GlaxoS-mithKline MSD1 Novartis Pfizer and Sanofi are collaborating with WIPO BVGH the US National Institutes of Health (NIH) and multiple non-profit research organizations These include the California Institute of Technology the Center for World Health amp Medicine the Drugs for Ne-glected Diseases initiative Fundaccedilatildeo Oswaldo Cruz (Fiocruz) Massachu-setts Institute of Technology Medicines for Malaria Venture PATH the South African Medical Research Council the Swiss Tropical and Public Health Institute the University of California Berkeley and the University of Dundee (UK)

―WIPO ReSearch is a ground breaking example of how a multi-stakeholder coalition can put IP to work for social benefit said WIPO Director Gen-

eral Francis Gurry ―By joining WIPO ReSearch companies and researchers commit to making selected intellectual property assets available under roy-alty-free licenses to qualified researchers anywhere in the world for research and development on neglected tropical diseases malaria and tuberculosis This commitment should accelerate the development of medicines vaccines and diagnostics for these diseases

According to the World Health Organization (WHO) neglected tropical diseases today impair the lives of an estimated 1 billion people The WHO provides technical advice to WIPO on public health issues and research pri-orities as appropriate

By providing a searchable public database of available intellectual property assets information and resources WIPO ReSearch facilitates new partner-ships with organizations that conduct research on treatments for neglected tropical diseases malaria and tuberculosis

Membership in WIPO ReSearch as a user provider or supporter is open to all organizations that endorse adhere to and support the projectlsquos Guiding Principles These Guiding Principles include the commitment that IP li-censed via WIPO ReSearch will be licensed on a royalty-free basis for re-search and development on neglected tropical diseases in any country and on a royalty-free basis for sale of neglected tropical disease medicines in or to least developed countries

―The innovative pharmaceutical industry has an important part to play in addressing unmet medical needs and increasing access to our collective pro-prietary information will help advance research into treatment options for these underserved diseases said David Brennan CEO of AstraZeneca and President of the International Federation of Pharmaceutical Manufacturers amp Associations (IFPMA) ―WIPO ReSearch has the potential to make a real impact on global health which is why we are proud to make all patents owned by AstraZeneca available to this important initiative for promoting the research and development of treatments for neglected tropical diseases anywhere in the world

The WIPO ReSearch database includes a wide variety of contributions rele-vant to malaria tuberculosis and other neglected tropical diseases including individual compounds and associated data screening hits from compound libraries and expertise and know-how in pharmaceutical research and devel-opment In addition WIPO ReSearch offers the opportunity for neglected tropical disease researchers to work directly with scientists at pharmaceutical companies to advance RampD on these diseases As WIPO ReSearch moves forward offerings from current partners will continue to grow and new pro-viders are expected to join to add to the wealth of information compounds and services available

―NIH licenses its patents to enable the private sector to develop diagnostics therapeutics and devices that improve public health said National Insti-tutes of Health Director Francis S Collins MD PhD ―We want to ensure that our biological materials and patents covering treatments or vaccines for neglected tropical diseases as with all diseases are available as broadly as possible to speed the development of new products for people who are most burdened by these diseases and WIPO ReSearch helps us to do this

The founding eight pharmaceutical companies WIPO BVGH and NIH are joined by a distinguished group of globally recognized institutions as provid-ers potential users and supporters of WIPO ReSearch (see annex) BVGH will manage the WIPO ReSearch Partnership Hub which will facilitate rela-tionships between the pharmaceutical company providers and new users

―In our role as administrator of the WIPO ReSearch Partnership Hub BIO Ventures for Global Health is excited to bring these new opportunities to neglected disease researchers around the world to accelerate their work in this area of critical unmet need said Don Joseph Chief Operating Officer of BVGH ―As both present and future providers evaluate their internal data and IP with the goal to provide focused information which they believe will best serve the neglected tropical disease research and development commu-nity WIPO ReSearch will build on previous RampD investments to speed the development of drugs vaccines and diagnostics for the neglected diseases that disproportionately impact people living in resource-poor countries Source WIPO

Page 13: Bio Outsourcing Asia: Volume 1 Issue 3 2011.pdf · TB drug trials. Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies

13

14

15

Convergence Innovation Development at the Intersection of Disciplines Organizations and Products Convergence Innovation is the paradigm where discovery and technology creation occur at the intersection of multiple disciplines and organizations Specifically convergence between the chemical biological cognitive physi-cal and information sciences is evident Firms and researchers will cross the boundaries between these disciplines to create technological value--finding solutions to address health environmental and energy challenges In parallel will be emergence of new models of collaboration to enable knowledge crea-tion and knowledge dissemination Central to Convergence Innovation will be a determination of the common value of knowledge versus the private value of knowledge across the associated disciplinesmdashwith the goal of ad-vancing and commercializing technology Levels of Convergence Convergence can be considered at three levelsmdashnamely convergence in the sources of knowledge for research convergence in organizational forms to enable technology development and convergence at the product level with the embodiment of knowledge in complementary products For example while nanotechnology research has been shown to have a dominant focus on material sciences additional analysis has demonstrated that nano-based research increasingly draws its knowledge from other areas (Porter and Youtie 2009) Specifically Porter and Youtie (2009) reveal that while nano-based publications center on materials science (including chemistry and physics) nano-based research also significantly involves many other fields including biomedical sciences computer sciences and mathematical sci-ences environmental sciences and engineering Citation patterns further show extensive referencing across macro-disciplinesmdashwith a preponderance of references in nano-related articles to research outside the macro-discipline in which the article is published (Porter and Youtie 2009) Conse-quently at this level of convergence the sharing and absorption of research across the involved disciplines will be necessary for downstream value crea-tion (Figure 1) Figure 1 Convergence at the Disciplinary (Knowledge Sources) Level At the next level of convergencemdashthe organizational levelmdashthe interaction between technological convergence and models of open innovation is be-coming apparent Licensing mergers acquisitions and strategic alliances such as joint ventures as well as new structures such as innovation networks and open innovation communities represent alternative strategies that may be used to acquire or access the necessary knowledge or assets for discovery and development From a convergence perspective the opportunity exists for a (public or private) stakeholder to not only interact with other (public andor private sector) stakeholders through simple one-to-one traditional collaborations but with many stakeholders through more complex mecha-nisms such as consortia crowdsourcing and other such open innovation communities For example the need for shared scientific expertise and large scale infrastructure in both nanotechnology and biotechnology is thought to be responsible for the development of networks spanning both fields (Figure 2) The pervasiveness of enabling technologies such as information and communications technology (ICT) have encouraged innovation net-works to increase in dominance and have lead to the blurring of organiza-tional boundaries among research organizations (Powell Koput and Smith-Doerr 1996 Roijakkers and Hagedoorn 2006) In such collaborations the opportunity to assume multiple roles exists to enable RampD including the collaborator who shares knowledge with one or many partners for the pur-poses of discovery or development the incubator who provides funding or expertise to other stakeholders to support venture development the enabler

who provides access to tools equipment large scale infrastructure or other services to support product development and the orchestrator who manages the network of partners with either the objective of knowledge creation or knowledge application (Melese Lin Chang and Cohen 2009) At this level of convergence there is the critical need to closely examine the management processes associated with collaboration as the collaborative strategies have not only grown in relevance but also in terms of impact and the number of participants involved

Collaboration Model

Access

Simple (One to One) Complex (Many to Many)

Collaboration Complexity

Figure 2 Convergence at the Organizational Level Open Access=Participation Open Closed Access=Exclusive Partnership

Simple=One to One Link between Partners Complex=Many Links between Several Partners PPP=Public Private Partnership JV=Joint Venture

The location in the above grid determines the extent to which the collabora-tion is open or closed and between one few or many partners

Finally the outcomes from any collaborative interaction will increasingly lead to convergence at the product level In this case multiple components or products will be packaged together to enhance the value over individual product offerings (Figure 3) Such bundled products will have the goal of simultaneously meeting several technological needs be it for biomedical treatment as seen in the use of nano-based diagnostics paired with therapeutics in agriculture or environmental applications as seen in the use of sensors to measure pathogens in food and the environment or the use of nanospheres to selectively detect harmful materials in water and then used for detoxification and in the creation of novel energy technologies as seen in the use of catalysts in particles for biodiesel synthesis to name a few (Schmidt 2007) At the product level effective intellectual property man-agement strategies and coordination between regulatory agencies will be paramount

Figure 3 Convergence at the Product Level

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

COGNITIVE

PPP JV

MampA

Consortium Innovation Network

Crowdsourcing Open Source Network

Licensing

Proprietary Open Innovation Community

Closed

Open

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

Nanomaterials

Nanodevices

Nanoelectronics

Nanosensors

Bioinformatics

Biosensors

Tissue Engineering

Drug Delivery

Diagnostics

Drug Delivery

Chemical Catalysis

Nanofiltration

Chemical Sensors

Neuron Network

Prostheses GenerationCOGNITIVE

16

The Impact of Convergence At each level of convergence there are several complexities that either im-pact the management of stakeholder interaction or the management of the knowledge based assets generated through such interactions For example given the expected intersection between disciplines knowledge complexities including varied types (such as biological information and biological struc-tures chemical knowledge and structures physical knowledge and struc-tures) and forms of knowledge (disembodied and embodied) will drive the need for a common platform for knowledge integration validation and standardization Beyond integration of knowledge it is expected that teams of biological chemical and physical scientists will increasingly form to de-velop and bridge together the necessary tools and equipment for RampD ac-tivities (Ideker Galitski and Hood 2001 Kitano 2001 Kautt Walsh and Bittner 2007 Boardman 2008 Boardman and Ponomarioy 2009) We must also consider the impact of convergence on the downstream rights to de-velop products Lemley (2005) discusses that unlike other industries in which patentees are actual or potential participants in the downstream mar-ket a significant number of corporate patentees will increasingly own rights not just in the industry in which they participate but other industries as well Analysts fear that over-patenting alongside the large shadow of such patents could not only fragment technology but could discourage stakeholders in a number of industries from attempting to develop products incorporating infringing technologies (Lemley 2005) It is important to consider that as multiple disciplines increasingly working together each discipline will have its own priorities and conventions regarding knowledge dissemination and knowledge appropriation (Hilgartner 1996) One discipline may signal its success during knowledge generation through the enclosure and the sale of disembodied knowledge Another discipline may measure its success exclu-sively by the embodiment of knowledge in medical products (Hilgartner 1996) While patent pools are a suggested solution to the possible patent holdups (DlsquoSilva 2009) it has been proposed that as has occurred in the genomics arena innovation-based networks with rules regulating the devel-opment and appropriation of critical technology building blocks could not only circumvent the product development and legal problems of the past but will also bring together the requisite intellectual and physical capital (DlsquoSilva 2009 Allarakhia and Walsh 2010) A Template for Managing Interactions and Knowledge-Based Assets Governance strategies must seek to align the incentives for participation in collaborative activities for multiple stakeholders The use of rules to define actions communication mechanisms used to enable and monitor actions and to share the outcomes are all critical to ensure that goals are achieved Structure and Roles It is expected that the chosen collaboration modemdashone to one one to many or many to many collaboration and objectives set for the collaborationmdashpooling of assets generation of new assets andor pol-icy creation will impact the type of participants that will join The organiza-tional structure chosen will be determined in part by the attributes of the resources to be contributed or developedmdashinformation supporting tools technology as well as the location of participantsmdashwith linkages established through physical clustering or virtual networking Thereafter the organiza-tion of participants may be a function of technological expertise geographic location or project-based management expertise Resource Types and Outcomes Participants will contribute several inputs including funding equipment and human capital The resulting outcomes include data materials tools and technology Facilities store artifacts in or-der to make them accessible Traditional facilities have been libraries and archives containing books journals and papers New technologies have made electronic distributed information possible Artifacts are discreet ob-servable nameable representations of ideas such as articles research notes books databases maps computer files and web pages (Foray 2004 Hess and Ostrom 2006) In the context of nanotechnology databases material and model repositories accessible laboratories that aggregate equipment and tools for nanotechnology development are varied options to manage the outputs Hence any outcomes analysis should seek to determine the success of collaboration including the amount of data produced and accessed the material generated housed and accessed the tools created and used and the technology produced by participants Governance Internal rules or mechanisms used to promote cooperative be-haviour can include formalizing the requirements to join the initiative en-suring frequent interactions encouraging communication between partici-pants monitoring and punishing defection and setting the boundary for access to resources An authority that regulates access to resources can en-sure that a fair and efficient governance strategy is used (Ostrom Gardner and Walker 1994) While access generally refers to disembodied assets such

as data extraction can involve the removal andor use of physical materials models and tools Knowledge use and access can be governed by the fol-lowing rules sharing with partners only (closed access) sharing with part-ners and the public at large (open access) and intellectual property assign-ment potentially on information materials tools and technology with the specification of rights to use based on licensee type geography or target market for product launch Creating Value The Path Forward in The path forward will require the creation of supporting policies encourag-ing multi-disciplinary collaboration At a national level several governments have recognized the importance of innovation networks to develop capacity and compete on an international level Consequently policies are now pro-viding more RampD funding and incentives encouraging the formation of multi-sectoral networks (Corley Boardman and Bozeman 2006) New prod-ucts of convergent technologies will necessitate cooperation among regula-tory bodies with the coordination of information flow coordination of du-ties and increased harmonization between international regulatory bodies (Castle et al 2006 Drezek and Tour 2010) To avoid the mistakes of the past policies outlining guidelines for the management of intellectual prop-erty rights can ensure that stakeholders will correctly assess the common value of knowledge versus the private value of knowledgemdashresulting in the transition from open knowledge to appropriated knowledge with the objec-tive of pursuing (unilateral or collaborative) downstream product develop-ment References 1) Allarakhia M amp Walsh S Managing knowledge assets under conditions of radical change The case of the pharmaceutical industry Technovation 31 105-117 (2011) 2) Boardman P Beyond the stars The impact of affiliation with university biotechnology centers on the industrial involvement of university scientists Technovation 28 291-297 (2008) 3) Boardman Pamp Ponomarioy B University researchers working with pri-vate companies Technovation 29 142-153 (2009) 4) Castle D Loeppky R Saner M Cline C Dalgleish J amp Wojnik V Convergence in Biotechnology Innovation Case Studies and Implications for Regulation (University of Guelph Guelph 2006) 5) Corley EA Boardman PC amp Bozeman B Design and the manage-ment of multi-institutional research collaborations Theoretical implications from two case studies Research Policy 35 975-993 (2006) 6) Drezek RA amp Tour JM Is Nanotechnology Too Broad to Practice Nature Nanotechnology 5 168-169 (2010) 7) DlsquoSilva J Pools thickets and open source nanotechnology European Intellectual Property Review 31 300-306 (2009) 8) Foray D The Economics of Knowledge (MIT Press Cambridge 2004) 9) Hess C amp Ostrom E Understanding Knowledge as a Commons From Theory to Practice (MIT Press Cambridge 2006) 10) Ideker TT Galitski L amp Hood LE A new approach to decoding life Systems biology Annual Review Genomics and Human Genetics 2 343-372 (2001) 11) Kautt M Walsh S amp Bittner K Global distribution of microndashnano technology and fabrication centers A portfolio analysis approach Technol-ogy Forecasting and Social Change 74 1697-1717 (2007) 12) Kitano H Systems biology Toward systems-level understanding of bio-logical systems Foundation of Systems Biology 1-29 (MIT Press Cam-bridge 2001) 13) Lemley MA Patenting nanotechnology Stanford Law Review 58 601-630 (2005) 14) Melese T Lin SM Chang JL amp Cohen NH Open innovation net-works between academia and industry an imperative for breakthrough therapies Nature Medicine 15 502-507 (2009) 15) Ostrom E Gardner R amp Walker J Rules Games and Common-Pool Resources (The University of Michigan Press Ann Arbor 1994) 16) Porter AL amp Youtie J How interdisciplinary is nanotechnology Jour-nal of Nanoparticle Research 11 1023-1041 (2009) 17) Powell WW Koput KK amp Smith-Doerr L Inter-organizational col-laboration and the locus of innovation Network of learning in biotechnol-ogy Administrative Science Quarterly 41 116-145 (1996) 18) Roijakkers N amp Hagedoorn Inter-firm RampD partnering in pharmaceu-tical biotechnology since 1975 Trends patterns and networks J Research

Policy 35 431minus446 (2006) 19) Schmidt K Project on Emerging Nanotechnologies (2007)

17

18

Beyond Cost-Savings Hidden Considerations for Conducting Clinical Trials in Asia

By Jessica Liu General Manager ChinaNorth Asia INC Research and Garth Tierney Regional General Manager Australia and South East Asia INC Research

Abstract Pharmaceutical industry sponsors are well-aware of the cost bene-fits of conducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the pri-mary criteria by which sponsors should select the Asian regions in which they will conduct their clinical trials Other important considerations include disease incidence treatment standards minimizing variability maximizing protocol adherence regulatory factors politics cultural considerations and ethical concerns While global spending on medicines is expected to grow three percent to five percent over the next five years spending in the ―pharmerging markets is expected to double1 The desire to access this fast-growing consumer base is the primary reason large pharmaceutical companies are increasing their clinical presence in emerging countries like China according to a report from investment bank-ing firm William Blair2 But small to midsize drug makers are also moving into emerging markets driven primarily by cost differentials China can offer as much as a 50 percent cost advantage compared to the United States or Europe as can Thailand the Philippines or Malaysia Most countries in Asia are at least 20 percent to 30 percent more cost-efficient than their western counterparts although there are notable exceptions such as South Korea and Japan Pharmaceutical industry sponsors are well-aware of the cost benefits of con-ducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the primary criteria by which sponsors should select the Asian regions in which they will con-duct their clinical trials Other important considerations for conducting a trial in Asia include disease incidence and treatment standards the potential to minimize variability and maximize protocol adherence regulatory and political factors and cultural and ethical considerations Disease Incidence and Treatment Standards With more than four billion people Asia offers sponsors a deep pool from which to draw clinical trial participants Indeed for sponsors conducting late-stage clinical trials in indications such as diabetes or cardiovascular dis-ease which can require thousands of patients establishing Asian trial sites to tap into that pool is critical The key is determining which Asian countries will best match each triallsquos unique patient requirements For sponsors most concerned with enrolling large numbers of patients into a trial highly populous countries such as India China Indonesia Japan the Philippines Thailand and Malaysia may be the best fit A recent CRO survey revealed that China is the leader in patient recruitment for the Asia-Pacific region followed by India and South Korea3 However sponsors need to be aware that the region is still expanding and a vast population does not equate to vast number of ICH GCP trained sites in the larger countries of China and India This can be a limiting factor in gaining access to the best sites for certain indications If on the other hand a sponsor is conducting a Phase I trial they should know that certain Asian countries have specific regulatory requirements for approval of a clinical trial application (CTA) that can add complexity to the process Others like Australia specialize in Phase I studies thanks to their fast and straightforward approval processes high-quality clinical practices and variety of many academic and commercial clinical trials centers4 Selecting an appropriate region for trial sites also depends on the incidence of the target disease in each countrylsquos population Highly-developed Asian countries have a higher incidence of diseases common in the West such as diabetes and cardiovascular disease while diseases such as tuberculosis are more common in Southeast Asia Some countries like India have diverse patient populations afflicted with diseases of both the developing and devel-oped world

When it comes to standards of care certain diseases like breast cancer lung cancer and diabetes are treated in much the same way in Asia as they would be treated in the Western world But for many other indications medical practice standards differ both from East to West and between the different Asian regions Sponsors seeking to meet specific market regulatory approval will need to mirror Western standards-of-care and as such should consider focusing trial sites to Australia New Zealand Singapore Taiwan Hong Kong and South Korea But differing standards of care can also provide unique opportunities Asia offers relatively more patients for first-line and second-line cancer drug evaluation than the West where such patient stores have been largely exhausted Risk Mitigation Sponsors should be prepared that some Asian trial sites ndash even those that have adapted Western-style medical practices ndash may require more assistance when it comes to following protocol and differentiating between medical practice and clinical research Not all Asian sites will have the infrastructure for a clinical trial A good CRO partner will work with a sponsor and site investigators to identify any infrastructure gap ndash such as a dedicated com-puter fax or freezer ndash and develop plans to ensure sites have the essentials to deliver a study efficiently Data integrity is another area that sponsors and CROs need to focus atten-tion It is critical to reduce variability by ensuring all monitoring and site staff are well trained Monitors need to understand how to identify and pro-actively resolve issues early on to minimize long-term issues with patient recruitment and data collection They should understand how to recognize early warning signals and not overreact to red herrings Investigators and site monitors also need to be trained in adverse event reporting to ensure that they meet local regional and global clinical trial safety reporting Sponsors must ensure monitoring visits are being conducted regularly as such visits make it more likely that recruitment and data integrity issues will be detected early and managed in a timely and effective manner Equally im-portant site staff needs to be as consistent as possible Finally sponsors need to implement a proven system for data reporting as variability in the data collection process may decrease the evaluable patient pool in the trial decreasing the sponsorlsquos chances to establish statistical sig-nificance or detect a rare safety signal Regulatory and Political Factors While regulatory bodies in South Korea and Taiwan as well as in Singapore have adopted an FDA-based approach each Asian country has its own regulatory idiosyncrasies In China for example reviews take on a project-based nature and sponsors should never assume that what worked in one application will be directly applicable to another No matter how harmo-nized Asia may appear the cookie-cutter approach simply doesnlsquot work However the fact that regulatory policies are still evolving in certain Asian countries provides a unique opportunity to sponsors the opportunity to in-fluence those policies There are no formal guidances or rules covering this topic but it is a real opportunity The recent economic downturn has prompted finance ministers in many countries to more closely analyze the cost of healthcare and they are realizing that good drugs can decrease their overall costs To ensure new drugs are available in their countries they have become increasingly eager to support clinical trials and they are engaging in conversations with sponsors about how approval pathways might be con-structed that take healthcare economics into consideration For example if a sponsor works closely with regulatory agencies to design the right preclinical and Phase I trials could a single Phase IIIII trial be sufficient for approval in some indications Are so many repetitive studies really necessary Is the requirement or guidance relevant to the current technology If a sponsor can prove to the government that a certain disease is currently costing 50 cents per person per day to treat and a new drug would change treatment paradigms and reduce that cost to a penny that is a compelling argument Not compelling enough to compromise safety or effi-cacy but compelling enough to expedite things along by partnering to agree upon the most appropriate pathway to approval While some regulatory agencies may not be as comfortable with the idea of allowing more flexibility and customization in the clinical trial design many are open to reducing bu-reaucracy and the associated time delays for CTA approval ndash particularly when there is potential to significantly impact health economics Govern-ments may provide commercialization support including funding to enable

19

development of new technologies and testing methods There may also be a higher priority given to certain CTA applications in the review queue Australia and Singapore have adopted a more simplified regulatory process and offer a notification scheme rather than formal review by the regulator South Korea and Taiwan are working to ease regulations and facilitate pro-tocol reviews Countries such as China have lengthy regulatory approval processes however there are some early indications that this may be de-creasing India is currently experiencing slower regulatory paths Interest-ingly some Asia Pacific countries that have historically been considered ―easy targets for clinical trials are increasing their regulations While there is much potential to collaborate with regulatory bodies in Asia these are not the only government agencies with which a sponsor must work Each country has its own policies on insurance regulations import licenses and other factors that affect a sponsorlsquos ability to establish and run clinical trial sites Each should be reviewed before selecting countries in which to establish trial sites Cultural and Ethical Considerations Language barriers can be easily overcome by CRO partners with offices across Asia and they are the least of a sponsorlsquos worries when it comes to cultural differences More pressing are issues such as the fact that some Asian researchers may believe that their participation in a trial gives them the right to publish data on their findings while sponsors require at least some degree of control over the publication of trial data Such issues are best managed by thorough communication prior to the start of enrolment In certain countries cultural factors may positively impact a trial Ethical factors may also weigh on a sponsorlsquos decision to conduct trials in certain Asian countries There are certain diseases that present a serious unmet medical need specifically within Asian populations such as foot-and-mouth disease and such indications obviously lend themselves to Asian clinical tri-als Yet if a sponsor has no plans to launch a drug in certain Asian countries perhaps because the populations of those countries would not be able to afford the drug then conducting clinical research in those countries may present ethical challenges For the most part however sponsors are eager to launch their drugs into the rapidly growing Asian healthcare markets and Asian clinical trials are necessary to support this endeavour As mentioned initially the cost advan-tages of conducting clinical trials in Asia cannot be ignored as both large and small companies face pressures on their bottom lines But while costs are important they are not the only consideration About the Authors Jessica Liu MD is the general manager for Clinical Operations in China and North Asia at INC Research She previously managed international pro-jects out of the European headquarters office for a global CRO in Brussels Belgium Prior to that she worked for 15 years in the Chinese affiliates of several global pharmaceutical companies overseeing clinical operations pro-ject management and medical affairs She conducted and managed Phase I-IV clinical studies across multiple therapeutic areas Dr Liu started her ca-reer as a resident physician in the endocrinology Department of the Peking Union Medical College Hospital (PUMCH) in Beijing China She received her Medical Doctorate from the University of Beijing (China) and has a Di-ploma in Pharmaceutical Medicine from the University of Basel (Switzerland) Dr Liu is based in Beijing She can be reached at jialiuincresearchcom Garth Tierney is the regional general manager for Australia and South East Asia for INC Research Garth previously founded and managed Trident Clinical Research a CRO based throughout Australia New Zealand and In-dia After 14 years of operation Trident was acquired by INC Research in June 2011 Prior to founding and managing Trident Clinical Research Garth worked for 8 years in the clinical research industry in various senior manage-ment and operational management roles across several companies including a global CRO an Australian pharmaceutical company and two global phar-maceutical companies Garth has a pharmacology (University of NSW) and business administration (University of Adelaide) background and worked in hypertension research for several years before joining the pharmaceutical industry During this time Garth published various papers and won the Whelan prize (awarded by ASCEPT) He can be reached at gtierneyincresearchcom

References 1 IMS IMS Institute Forecasts Global Spending on Medicines to Reach

Nearly $11 Trillion by 2015 May 18 2011 2 Wm Blair Pharmaceutical Outsourcing Industry Analysis Jun 10

2010 3 CyberMedia Research-BioSpectrum Asia-Pacific CRO Survey 2011 4 Clinical Trials Action Group Report Commonwealth of Australia

2011 CPTR Yields Progress New Six-Way Agreement has Goal to Speed Development of TB Drug Combinations November 11 2011 The Critical Path to TB Drug Regimens (CPTR) announced this November an innovative agreement between AstraZeneca Bayer Sanofi Tibotec TB Alliance and the World Health Organization to share information on tuber-culosis (TB) compounds within their respective drug pipelines to quickly identify and work together to develop the most promising TB drug regimen regardless of sponsor The partnership facilitates a more collaborative ap-proach to TB drug development with the objective to dramatically speed the development of shorter safer and more effective multi-drug treatments that are urgently needed to control the global TB pandemic The agreement will enable information-sharing around scientific and clinical data on TB compounds in clinical development By sharing data partners can identify opportunities to test their compounds in combination speeding availability of future TB regimens The collaboration includes the majority of global sponsors with TB drugs in clinical development Under the agree-ment if two or more organizations choose to work together to further de-velop a regimen they will enter into a separate arrangement that defines the rights and responsibilities of each party CPTR is working closely with regulatory scientists at the US Food and Drug Administration European Medicines Agency and other regulatory bodies in China India and some countries in Africa to develop the tools that are needed to allow testing of new TB drugs in combination cutting years off the development timeline Under the leadership of the Critical Path Institute CPTRlsquos Regulatory Science Consortium focuses on establishing consensus on preferred standards methods and tools for developing new TB drug regimens and obtaining official acceptance from international regulatory authorities Source TB Alliance Pfizer Establishes the Cambridge Research Center September 01 2011 Pfizer Inc recently announced it has entered into a 10-year lease agreement with the Massachusetts Institute of Technology (MIT) for more than 180000 square feet in a new building under development in Cambridge Massachusetts Located at 610 Main Street South in Kendall Square the new site will be the future location of Pfizerlsquos Cardiovascular Metabolic and En-docrine Disease (CVMED) and Neuroscience Research Units The reloca-tion of the two Research Units will substantially boost Pfizerlsquos footprint in Cambridge making it the second largest biopharmaceutical company in Massachusetts in terms of jobs ―We were very deliberate in our choice to move to Cambridge MA as a key part of our RampD strategy By expanding our presence in one of the worldlsquos great centers of scientific and medical innovation we will provide the best environment for our researchers to invent the next generation of medicines in areas of greatest need such as Alzheimerlsquos disease schizophrenia diabe-tes and cardiovascular disease said Rod MacKenzie senior vice president and head of PharmaTherapeutics Research amp Development ―We intend to foster productive formal and informal collaborations between our drug dis-covery experts and the outstanding scientists of Cambridgelsquos world class institutions This is a very exciting period in Pfizer RampD Source Pfizer

20

21

Continued from page 19hellip UK Academia Given Access to Selected AstraZeneca Compounds December 11 2011 Following a unique landmark agreement between AstraZeneca and the UK Medical Research Council (MRC) a wide range of compounds will be made available to UK medical researchers next year In a new type of collabora-tion academia will be granted access to 22 clinical and preclinical com-pounds developed by AstraZeneca Though making individual compounds available to external academic investigators is not unusual the breadth and open-innovation nature of this collaboration is unique because it provides unprecedented access to well characterised clinical and preclinical candidate molecules to investigators across all UK academic institutions There is significant unmet need in diseases both within and outside Astra-Zenecalsquos current research focus This collaboration builds on the sizable in-vestment made in developing candidate drugs within AstraZeneca by help-ing researchers to explore their potential more broadly with the hope that they will find new future medicines It also helps AstraZeneca explore areas of unmet patient need beyond its current disease area focus leveraging great external science in a way that is highly flexible and cost effective The New Opportunities Innovative Medicines Unit (iMed) in AstraZeneca has been central in establishing this research collaboration with the MRC and has acted as the interface with the other AstraZeneca iMeds to agree which compounds would be eligible Clive Morris VP New Opportunities iMed said that ―This Open Innova-tionlsquo approach brings together the strengths of AstraZeneca the MRC and UK Academia into what I hope will be a really potent mix bringing forward really exciting new ideas that could transform our understanding of some diseases It highlights an openness to new scientific thinking and also places external scientific collaboration right at the heart of what we do It is also an excellent way to broaden our portfolio of activities into new diseases for As-traZeneca leveraging the wealth of expertise across UK academia AstraZeneca and the MRC will invite preclinical and clinical research pro-posals from across the UK academic community to investigate the com-pounds in a range of diseases with a view to finding new treatment oppor-tunities AstraZeneca will work with the academic collaborators to develop the best scientific proposals and the MRC will select the highest quality pro-posals for funding awarding up to pound10 million in total to fund the success-ful proposals The successful applicants will then work collaboratively with AstraZeneca to deliver the studies David Brennan AstraZenecalsquos Chief Executive Officer said ―Innovative collaborations are playing a crucial role in finding ways to unlock the poten-tial of new treatments The UK has a strong heritage of research excellence in life sciences We hope that in sharing these valuable compounds with aca-demic scientists through the MRC new discoveries will be made by explor-ing additional uses of these compounds Source AstraZeneca WIPO ReSearch A Neglected Tropical Diseases Initiative October 26 2011 The World Intellectual Property Organization (WIPO) in an unprecedented collaboration with leading pharmaceutical companies and BIO Ventures for Global Health (BVGH) recently launched the WIPO Re Search a new consortium where public and private sector organizations share valuable in-tellectual property (IP) and expertise with the global health research commu-nity to promote development of new drugs vaccines and diagnostics to treat neglected tropical diseases malaria and tuberculosis In WIPO ReSearch Alnylam Pharmaceuticals AstraZeneca Eisai GlaxoS-mithKline MSD1 Novartis Pfizer and Sanofi are collaborating with WIPO BVGH the US National Institutes of Health (NIH) and multiple non-profit research organizations These include the California Institute of Technology the Center for World Health amp Medicine the Drugs for Ne-glected Diseases initiative Fundaccedilatildeo Oswaldo Cruz (Fiocruz) Massachu-setts Institute of Technology Medicines for Malaria Venture PATH the South African Medical Research Council the Swiss Tropical and Public Health Institute the University of California Berkeley and the University of Dundee (UK)

―WIPO ReSearch is a ground breaking example of how a multi-stakeholder coalition can put IP to work for social benefit said WIPO Director Gen-

eral Francis Gurry ―By joining WIPO ReSearch companies and researchers commit to making selected intellectual property assets available under roy-alty-free licenses to qualified researchers anywhere in the world for research and development on neglected tropical diseases malaria and tuberculosis This commitment should accelerate the development of medicines vaccines and diagnostics for these diseases

According to the World Health Organization (WHO) neglected tropical diseases today impair the lives of an estimated 1 billion people The WHO provides technical advice to WIPO on public health issues and research pri-orities as appropriate

By providing a searchable public database of available intellectual property assets information and resources WIPO ReSearch facilitates new partner-ships with organizations that conduct research on treatments for neglected tropical diseases malaria and tuberculosis

Membership in WIPO ReSearch as a user provider or supporter is open to all organizations that endorse adhere to and support the projectlsquos Guiding Principles These Guiding Principles include the commitment that IP li-censed via WIPO ReSearch will be licensed on a royalty-free basis for re-search and development on neglected tropical diseases in any country and on a royalty-free basis for sale of neglected tropical disease medicines in or to least developed countries

―The innovative pharmaceutical industry has an important part to play in addressing unmet medical needs and increasing access to our collective pro-prietary information will help advance research into treatment options for these underserved diseases said David Brennan CEO of AstraZeneca and President of the International Federation of Pharmaceutical Manufacturers amp Associations (IFPMA) ―WIPO ReSearch has the potential to make a real impact on global health which is why we are proud to make all patents owned by AstraZeneca available to this important initiative for promoting the research and development of treatments for neglected tropical diseases anywhere in the world

The WIPO ReSearch database includes a wide variety of contributions rele-vant to malaria tuberculosis and other neglected tropical diseases including individual compounds and associated data screening hits from compound libraries and expertise and know-how in pharmaceutical research and devel-opment In addition WIPO ReSearch offers the opportunity for neglected tropical disease researchers to work directly with scientists at pharmaceutical companies to advance RampD on these diseases As WIPO ReSearch moves forward offerings from current partners will continue to grow and new pro-viders are expected to join to add to the wealth of information compounds and services available

―NIH licenses its patents to enable the private sector to develop diagnostics therapeutics and devices that improve public health said National Insti-tutes of Health Director Francis S Collins MD PhD ―We want to ensure that our biological materials and patents covering treatments or vaccines for neglected tropical diseases as with all diseases are available as broadly as possible to speed the development of new products for people who are most burdened by these diseases and WIPO ReSearch helps us to do this

The founding eight pharmaceutical companies WIPO BVGH and NIH are joined by a distinguished group of globally recognized institutions as provid-ers potential users and supporters of WIPO ReSearch (see annex) BVGH will manage the WIPO ReSearch Partnership Hub which will facilitate rela-tionships between the pharmaceutical company providers and new users

―In our role as administrator of the WIPO ReSearch Partnership Hub BIO Ventures for Global Health is excited to bring these new opportunities to neglected disease researchers around the world to accelerate their work in this area of critical unmet need said Don Joseph Chief Operating Officer of BVGH ―As both present and future providers evaluate their internal data and IP with the goal to provide focused information which they believe will best serve the neglected tropical disease research and development commu-nity WIPO ReSearch will build on previous RampD investments to speed the development of drugs vaccines and diagnostics for the neglected diseases that disproportionately impact people living in resource-poor countries Source WIPO

Page 14: Bio Outsourcing Asia: Volume 1 Issue 3 2011.pdf · TB drug trials. Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies

14

15

Convergence Innovation Development at the Intersection of Disciplines Organizations and Products Convergence Innovation is the paradigm where discovery and technology creation occur at the intersection of multiple disciplines and organizations Specifically convergence between the chemical biological cognitive physi-cal and information sciences is evident Firms and researchers will cross the boundaries between these disciplines to create technological value--finding solutions to address health environmental and energy challenges In parallel will be emergence of new models of collaboration to enable knowledge crea-tion and knowledge dissemination Central to Convergence Innovation will be a determination of the common value of knowledge versus the private value of knowledge across the associated disciplinesmdashwith the goal of ad-vancing and commercializing technology Levels of Convergence Convergence can be considered at three levelsmdashnamely convergence in the sources of knowledge for research convergence in organizational forms to enable technology development and convergence at the product level with the embodiment of knowledge in complementary products For example while nanotechnology research has been shown to have a dominant focus on material sciences additional analysis has demonstrated that nano-based research increasingly draws its knowledge from other areas (Porter and Youtie 2009) Specifically Porter and Youtie (2009) reveal that while nano-based publications center on materials science (including chemistry and physics) nano-based research also significantly involves many other fields including biomedical sciences computer sciences and mathematical sci-ences environmental sciences and engineering Citation patterns further show extensive referencing across macro-disciplinesmdashwith a preponderance of references in nano-related articles to research outside the macro-discipline in which the article is published (Porter and Youtie 2009) Conse-quently at this level of convergence the sharing and absorption of research across the involved disciplines will be necessary for downstream value crea-tion (Figure 1) Figure 1 Convergence at the Disciplinary (Knowledge Sources) Level At the next level of convergencemdashthe organizational levelmdashthe interaction between technological convergence and models of open innovation is be-coming apparent Licensing mergers acquisitions and strategic alliances such as joint ventures as well as new structures such as innovation networks and open innovation communities represent alternative strategies that may be used to acquire or access the necessary knowledge or assets for discovery and development From a convergence perspective the opportunity exists for a (public or private) stakeholder to not only interact with other (public andor private sector) stakeholders through simple one-to-one traditional collaborations but with many stakeholders through more complex mecha-nisms such as consortia crowdsourcing and other such open innovation communities For example the need for shared scientific expertise and large scale infrastructure in both nanotechnology and biotechnology is thought to be responsible for the development of networks spanning both fields (Figure 2) The pervasiveness of enabling technologies such as information and communications technology (ICT) have encouraged innovation net-works to increase in dominance and have lead to the blurring of organiza-tional boundaries among research organizations (Powell Koput and Smith-Doerr 1996 Roijakkers and Hagedoorn 2006) In such collaborations the opportunity to assume multiple roles exists to enable RampD including the collaborator who shares knowledge with one or many partners for the pur-poses of discovery or development the incubator who provides funding or expertise to other stakeholders to support venture development the enabler

who provides access to tools equipment large scale infrastructure or other services to support product development and the orchestrator who manages the network of partners with either the objective of knowledge creation or knowledge application (Melese Lin Chang and Cohen 2009) At this level of convergence there is the critical need to closely examine the management processes associated with collaboration as the collaborative strategies have not only grown in relevance but also in terms of impact and the number of participants involved

Collaboration Model

Access

Simple (One to One) Complex (Many to Many)

Collaboration Complexity

Figure 2 Convergence at the Organizational Level Open Access=Participation Open Closed Access=Exclusive Partnership

Simple=One to One Link between Partners Complex=Many Links between Several Partners PPP=Public Private Partnership JV=Joint Venture

The location in the above grid determines the extent to which the collabora-tion is open or closed and between one few or many partners

Finally the outcomes from any collaborative interaction will increasingly lead to convergence at the product level In this case multiple components or products will be packaged together to enhance the value over individual product offerings (Figure 3) Such bundled products will have the goal of simultaneously meeting several technological needs be it for biomedical treatment as seen in the use of nano-based diagnostics paired with therapeutics in agriculture or environmental applications as seen in the use of sensors to measure pathogens in food and the environment or the use of nanospheres to selectively detect harmful materials in water and then used for detoxification and in the creation of novel energy technologies as seen in the use of catalysts in particles for biodiesel synthesis to name a few (Schmidt 2007) At the product level effective intellectual property man-agement strategies and coordination between regulatory agencies will be paramount

Figure 3 Convergence at the Product Level

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

COGNITIVE

PPP JV

MampA

Consortium Innovation Network

Crowdsourcing Open Source Network

Licensing

Proprietary Open Innovation Community

Closed

Open

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

Nanomaterials

Nanodevices

Nanoelectronics

Nanosensors

Bioinformatics

Biosensors

Tissue Engineering

Drug Delivery

Diagnostics

Drug Delivery

Chemical Catalysis

Nanofiltration

Chemical Sensors

Neuron Network

Prostheses GenerationCOGNITIVE

16

The Impact of Convergence At each level of convergence there are several complexities that either im-pact the management of stakeholder interaction or the management of the knowledge based assets generated through such interactions For example given the expected intersection between disciplines knowledge complexities including varied types (such as biological information and biological struc-tures chemical knowledge and structures physical knowledge and struc-tures) and forms of knowledge (disembodied and embodied) will drive the need for a common platform for knowledge integration validation and standardization Beyond integration of knowledge it is expected that teams of biological chemical and physical scientists will increasingly form to de-velop and bridge together the necessary tools and equipment for RampD ac-tivities (Ideker Galitski and Hood 2001 Kitano 2001 Kautt Walsh and Bittner 2007 Boardman 2008 Boardman and Ponomarioy 2009) We must also consider the impact of convergence on the downstream rights to de-velop products Lemley (2005) discusses that unlike other industries in which patentees are actual or potential participants in the downstream mar-ket a significant number of corporate patentees will increasingly own rights not just in the industry in which they participate but other industries as well Analysts fear that over-patenting alongside the large shadow of such patents could not only fragment technology but could discourage stakeholders in a number of industries from attempting to develop products incorporating infringing technologies (Lemley 2005) It is important to consider that as multiple disciplines increasingly working together each discipline will have its own priorities and conventions regarding knowledge dissemination and knowledge appropriation (Hilgartner 1996) One discipline may signal its success during knowledge generation through the enclosure and the sale of disembodied knowledge Another discipline may measure its success exclu-sively by the embodiment of knowledge in medical products (Hilgartner 1996) While patent pools are a suggested solution to the possible patent holdups (DlsquoSilva 2009) it has been proposed that as has occurred in the genomics arena innovation-based networks with rules regulating the devel-opment and appropriation of critical technology building blocks could not only circumvent the product development and legal problems of the past but will also bring together the requisite intellectual and physical capital (DlsquoSilva 2009 Allarakhia and Walsh 2010) A Template for Managing Interactions and Knowledge-Based Assets Governance strategies must seek to align the incentives for participation in collaborative activities for multiple stakeholders The use of rules to define actions communication mechanisms used to enable and monitor actions and to share the outcomes are all critical to ensure that goals are achieved Structure and Roles It is expected that the chosen collaboration modemdashone to one one to many or many to many collaboration and objectives set for the collaborationmdashpooling of assets generation of new assets andor pol-icy creation will impact the type of participants that will join The organiza-tional structure chosen will be determined in part by the attributes of the resources to be contributed or developedmdashinformation supporting tools technology as well as the location of participantsmdashwith linkages established through physical clustering or virtual networking Thereafter the organiza-tion of participants may be a function of technological expertise geographic location or project-based management expertise Resource Types and Outcomes Participants will contribute several inputs including funding equipment and human capital The resulting outcomes include data materials tools and technology Facilities store artifacts in or-der to make them accessible Traditional facilities have been libraries and archives containing books journals and papers New technologies have made electronic distributed information possible Artifacts are discreet ob-servable nameable representations of ideas such as articles research notes books databases maps computer files and web pages (Foray 2004 Hess and Ostrom 2006) In the context of nanotechnology databases material and model repositories accessible laboratories that aggregate equipment and tools for nanotechnology development are varied options to manage the outputs Hence any outcomes analysis should seek to determine the success of collaboration including the amount of data produced and accessed the material generated housed and accessed the tools created and used and the technology produced by participants Governance Internal rules or mechanisms used to promote cooperative be-haviour can include formalizing the requirements to join the initiative en-suring frequent interactions encouraging communication between partici-pants monitoring and punishing defection and setting the boundary for access to resources An authority that regulates access to resources can en-sure that a fair and efficient governance strategy is used (Ostrom Gardner and Walker 1994) While access generally refers to disembodied assets such

as data extraction can involve the removal andor use of physical materials models and tools Knowledge use and access can be governed by the fol-lowing rules sharing with partners only (closed access) sharing with part-ners and the public at large (open access) and intellectual property assign-ment potentially on information materials tools and technology with the specification of rights to use based on licensee type geography or target market for product launch Creating Value The Path Forward in The path forward will require the creation of supporting policies encourag-ing multi-disciplinary collaboration At a national level several governments have recognized the importance of innovation networks to develop capacity and compete on an international level Consequently policies are now pro-viding more RampD funding and incentives encouraging the formation of multi-sectoral networks (Corley Boardman and Bozeman 2006) New prod-ucts of convergent technologies will necessitate cooperation among regula-tory bodies with the coordination of information flow coordination of du-ties and increased harmonization between international regulatory bodies (Castle et al 2006 Drezek and Tour 2010) To avoid the mistakes of the past policies outlining guidelines for the management of intellectual prop-erty rights can ensure that stakeholders will correctly assess the common value of knowledge versus the private value of knowledgemdashresulting in the transition from open knowledge to appropriated knowledge with the objec-tive of pursuing (unilateral or collaborative) downstream product develop-ment References 1) Allarakhia M amp Walsh S Managing knowledge assets under conditions of radical change The case of the pharmaceutical industry Technovation 31 105-117 (2011) 2) Boardman P Beyond the stars The impact of affiliation with university biotechnology centers on the industrial involvement of university scientists Technovation 28 291-297 (2008) 3) Boardman Pamp Ponomarioy B University researchers working with pri-vate companies Technovation 29 142-153 (2009) 4) Castle D Loeppky R Saner M Cline C Dalgleish J amp Wojnik V Convergence in Biotechnology Innovation Case Studies and Implications for Regulation (University of Guelph Guelph 2006) 5) Corley EA Boardman PC amp Bozeman B Design and the manage-ment of multi-institutional research collaborations Theoretical implications from two case studies Research Policy 35 975-993 (2006) 6) Drezek RA amp Tour JM Is Nanotechnology Too Broad to Practice Nature Nanotechnology 5 168-169 (2010) 7) DlsquoSilva J Pools thickets and open source nanotechnology European Intellectual Property Review 31 300-306 (2009) 8) Foray D The Economics of Knowledge (MIT Press Cambridge 2004) 9) Hess C amp Ostrom E Understanding Knowledge as a Commons From Theory to Practice (MIT Press Cambridge 2006) 10) Ideker TT Galitski L amp Hood LE A new approach to decoding life Systems biology Annual Review Genomics and Human Genetics 2 343-372 (2001) 11) Kautt M Walsh S amp Bittner K Global distribution of microndashnano technology and fabrication centers A portfolio analysis approach Technol-ogy Forecasting and Social Change 74 1697-1717 (2007) 12) Kitano H Systems biology Toward systems-level understanding of bio-logical systems Foundation of Systems Biology 1-29 (MIT Press Cam-bridge 2001) 13) Lemley MA Patenting nanotechnology Stanford Law Review 58 601-630 (2005) 14) Melese T Lin SM Chang JL amp Cohen NH Open innovation net-works between academia and industry an imperative for breakthrough therapies Nature Medicine 15 502-507 (2009) 15) Ostrom E Gardner R amp Walker J Rules Games and Common-Pool Resources (The University of Michigan Press Ann Arbor 1994) 16) Porter AL amp Youtie J How interdisciplinary is nanotechnology Jour-nal of Nanoparticle Research 11 1023-1041 (2009) 17) Powell WW Koput KK amp Smith-Doerr L Inter-organizational col-laboration and the locus of innovation Network of learning in biotechnol-ogy Administrative Science Quarterly 41 116-145 (1996) 18) Roijakkers N amp Hagedoorn Inter-firm RampD partnering in pharmaceu-tical biotechnology since 1975 Trends patterns and networks J Research

Policy 35 431minus446 (2006) 19) Schmidt K Project on Emerging Nanotechnologies (2007)

17

18

Beyond Cost-Savings Hidden Considerations for Conducting Clinical Trials in Asia

By Jessica Liu General Manager ChinaNorth Asia INC Research and Garth Tierney Regional General Manager Australia and South East Asia INC Research

Abstract Pharmaceutical industry sponsors are well-aware of the cost bene-fits of conducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the pri-mary criteria by which sponsors should select the Asian regions in which they will conduct their clinical trials Other important considerations include disease incidence treatment standards minimizing variability maximizing protocol adherence regulatory factors politics cultural considerations and ethical concerns While global spending on medicines is expected to grow three percent to five percent over the next five years spending in the ―pharmerging markets is expected to double1 The desire to access this fast-growing consumer base is the primary reason large pharmaceutical companies are increasing their clinical presence in emerging countries like China according to a report from investment bank-ing firm William Blair2 But small to midsize drug makers are also moving into emerging markets driven primarily by cost differentials China can offer as much as a 50 percent cost advantage compared to the United States or Europe as can Thailand the Philippines or Malaysia Most countries in Asia are at least 20 percent to 30 percent more cost-efficient than their western counterparts although there are notable exceptions such as South Korea and Japan Pharmaceutical industry sponsors are well-aware of the cost benefits of con-ducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the primary criteria by which sponsors should select the Asian regions in which they will con-duct their clinical trials Other important considerations for conducting a trial in Asia include disease incidence and treatment standards the potential to minimize variability and maximize protocol adherence regulatory and political factors and cultural and ethical considerations Disease Incidence and Treatment Standards With more than four billion people Asia offers sponsors a deep pool from which to draw clinical trial participants Indeed for sponsors conducting late-stage clinical trials in indications such as diabetes or cardiovascular dis-ease which can require thousands of patients establishing Asian trial sites to tap into that pool is critical The key is determining which Asian countries will best match each triallsquos unique patient requirements For sponsors most concerned with enrolling large numbers of patients into a trial highly populous countries such as India China Indonesia Japan the Philippines Thailand and Malaysia may be the best fit A recent CRO survey revealed that China is the leader in patient recruitment for the Asia-Pacific region followed by India and South Korea3 However sponsors need to be aware that the region is still expanding and a vast population does not equate to vast number of ICH GCP trained sites in the larger countries of China and India This can be a limiting factor in gaining access to the best sites for certain indications If on the other hand a sponsor is conducting a Phase I trial they should know that certain Asian countries have specific regulatory requirements for approval of a clinical trial application (CTA) that can add complexity to the process Others like Australia specialize in Phase I studies thanks to their fast and straightforward approval processes high-quality clinical practices and variety of many academic and commercial clinical trials centers4 Selecting an appropriate region for trial sites also depends on the incidence of the target disease in each countrylsquos population Highly-developed Asian countries have a higher incidence of diseases common in the West such as diabetes and cardiovascular disease while diseases such as tuberculosis are more common in Southeast Asia Some countries like India have diverse patient populations afflicted with diseases of both the developing and devel-oped world

When it comes to standards of care certain diseases like breast cancer lung cancer and diabetes are treated in much the same way in Asia as they would be treated in the Western world But for many other indications medical practice standards differ both from East to West and between the different Asian regions Sponsors seeking to meet specific market regulatory approval will need to mirror Western standards-of-care and as such should consider focusing trial sites to Australia New Zealand Singapore Taiwan Hong Kong and South Korea But differing standards of care can also provide unique opportunities Asia offers relatively more patients for first-line and second-line cancer drug evaluation than the West where such patient stores have been largely exhausted Risk Mitigation Sponsors should be prepared that some Asian trial sites ndash even those that have adapted Western-style medical practices ndash may require more assistance when it comes to following protocol and differentiating between medical practice and clinical research Not all Asian sites will have the infrastructure for a clinical trial A good CRO partner will work with a sponsor and site investigators to identify any infrastructure gap ndash such as a dedicated com-puter fax or freezer ndash and develop plans to ensure sites have the essentials to deliver a study efficiently Data integrity is another area that sponsors and CROs need to focus atten-tion It is critical to reduce variability by ensuring all monitoring and site staff are well trained Monitors need to understand how to identify and pro-actively resolve issues early on to minimize long-term issues with patient recruitment and data collection They should understand how to recognize early warning signals and not overreact to red herrings Investigators and site monitors also need to be trained in adverse event reporting to ensure that they meet local regional and global clinical trial safety reporting Sponsors must ensure monitoring visits are being conducted regularly as such visits make it more likely that recruitment and data integrity issues will be detected early and managed in a timely and effective manner Equally im-portant site staff needs to be as consistent as possible Finally sponsors need to implement a proven system for data reporting as variability in the data collection process may decrease the evaluable patient pool in the trial decreasing the sponsorlsquos chances to establish statistical sig-nificance or detect a rare safety signal Regulatory and Political Factors While regulatory bodies in South Korea and Taiwan as well as in Singapore have adopted an FDA-based approach each Asian country has its own regulatory idiosyncrasies In China for example reviews take on a project-based nature and sponsors should never assume that what worked in one application will be directly applicable to another No matter how harmo-nized Asia may appear the cookie-cutter approach simply doesnlsquot work However the fact that regulatory policies are still evolving in certain Asian countries provides a unique opportunity to sponsors the opportunity to in-fluence those policies There are no formal guidances or rules covering this topic but it is a real opportunity The recent economic downturn has prompted finance ministers in many countries to more closely analyze the cost of healthcare and they are realizing that good drugs can decrease their overall costs To ensure new drugs are available in their countries they have become increasingly eager to support clinical trials and they are engaging in conversations with sponsors about how approval pathways might be con-structed that take healthcare economics into consideration For example if a sponsor works closely with regulatory agencies to design the right preclinical and Phase I trials could a single Phase IIIII trial be sufficient for approval in some indications Are so many repetitive studies really necessary Is the requirement or guidance relevant to the current technology If a sponsor can prove to the government that a certain disease is currently costing 50 cents per person per day to treat and a new drug would change treatment paradigms and reduce that cost to a penny that is a compelling argument Not compelling enough to compromise safety or effi-cacy but compelling enough to expedite things along by partnering to agree upon the most appropriate pathway to approval While some regulatory agencies may not be as comfortable with the idea of allowing more flexibility and customization in the clinical trial design many are open to reducing bu-reaucracy and the associated time delays for CTA approval ndash particularly when there is potential to significantly impact health economics Govern-ments may provide commercialization support including funding to enable

19

development of new technologies and testing methods There may also be a higher priority given to certain CTA applications in the review queue Australia and Singapore have adopted a more simplified regulatory process and offer a notification scheme rather than formal review by the regulator South Korea and Taiwan are working to ease regulations and facilitate pro-tocol reviews Countries such as China have lengthy regulatory approval processes however there are some early indications that this may be de-creasing India is currently experiencing slower regulatory paths Interest-ingly some Asia Pacific countries that have historically been considered ―easy targets for clinical trials are increasing their regulations While there is much potential to collaborate with regulatory bodies in Asia these are not the only government agencies with which a sponsor must work Each country has its own policies on insurance regulations import licenses and other factors that affect a sponsorlsquos ability to establish and run clinical trial sites Each should be reviewed before selecting countries in which to establish trial sites Cultural and Ethical Considerations Language barriers can be easily overcome by CRO partners with offices across Asia and they are the least of a sponsorlsquos worries when it comes to cultural differences More pressing are issues such as the fact that some Asian researchers may believe that their participation in a trial gives them the right to publish data on their findings while sponsors require at least some degree of control over the publication of trial data Such issues are best managed by thorough communication prior to the start of enrolment In certain countries cultural factors may positively impact a trial Ethical factors may also weigh on a sponsorlsquos decision to conduct trials in certain Asian countries There are certain diseases that present a serious unmet medical need specifically within Asian populations such as foot-and-mouth disease and such indications obviously lend themselves to Asian clinical tri-als Yet if a sponsor has no plans to launch a drug in certain Asian countries perhaps because the populations of those countries would not be able to afford the drug then conducting clinical research in those countries may present ethical challenges For the most part however sponsors are eager to launch their drugs into the rapidly growing Asian healthcare markets and Asian clinical trials are necessary to support this endeavour As mentioned initially the cost advan-tages of conducting clinical trials in Asia cannot be ignored as both large and small companies face pressures on their bottom lines But while costs are important they are not the only consideration About the Authors Jessica Liu MD is the general manager for Clinical Operations in China and North Asia at INC Research She previously managed international pro-jects out of the European headquarters office for a global CRO in Brussels Belgium Prior to that she worked for 15 years in the Chinese affiliates of several global pharmaceutical companies overseeing clinical operations pro-ject management and medical affairs She conducted and managed Phase I-IV clinical studies across multiple therapeutic areas Dr Liu started her ca-reer as a resident physician in the endocrinology Department of the Peking Union Medical College Hospital (PUMCH) in Beijing China She received her Medical Doctorate from the University of Beijing (China) and has a Di-ploma in Pharmaceutical Medicine from the University of Basel (Switzerland) Dr Liu is based in Beijing She can be reached at jialiuincresearchcom Garth Tierney is the regional general manager for Australia and South East Asia for INC Research Garth previously founded and managed Trident Clinical Research a CRO based throughout Australia New Zealand and In-dia After 14 years of operation Trident was acquired by INC Research in June 2011 Prior to founding and managing Trident Clinical Research Garth worked for 8 years in the clinical research industry in various senior manage-ment and operational management roles across several companies including a global CRO an Australian pharmaceutical company and two global phar-maceutical companies Garth has a pharmacology (University of NSW) and business administration (University of Adelaide) background and worked in hypertension research for several years before joining the pharmaceutical industry During this time Garth published various papers and won the Whelan prize (awarded by ASCEPT) He can be reached at gtierneyincresearchcom

References 1 IMS IMS Institute Forecasts Global Spending on Medicines to Reach

Nearly $11 Trillion by 2015 May 18 2011 2 Wm Blair Pharmaceutical Outsourcing Industry Analysis Jun 10

2010 3 CyberMedia Research-BioSpectrum Asia-Pacific CRO Survey 2011 4 Clinical Trials Action Group Report Commonwealth of Australia

2011 CPTR Yields Progress New Six-Way Agreement has Goal to Speed Development of TB Drug Combinations November 11 2011 The Critical Path to TB Drug Regimens (CPTR) announced this November an innovative agreement between AstraZeneca Bayer Sanofi Tibotec TB Alliance and the World Health Organization to share information on tuber-culosis (TB) compounds within their respective drug pipelines to quickly identify and work together to develop the most promising TB drug regimen regardless of sponsor The partnership facilitates a more collaborative ap-proach to TB drug development with the objective to dramatically speed the development of shorter safer and more effective multi-drug treatments that are urgently needed to control the global TB pandemic The agreement will enable information-sharing around scientific and clinical data on TB compounds in clinical development By sharing data partners can identify opportunities to test their compounds in combination speeding availability of future TB regimens The collaboration includes the majority of global sponsors with TB drugs in clinical development Under the agree-ment if two or more organizations choose to work together to further de-velop a regimen they will enter into a separate arrangement that defines the rights and responsibilities of each party CPTR is working closely with regulatory scientists at the US Food and Drug Administration European Medicines Agency and other regulatory bodies in China India and some countries in Africa to develop the tools that are needed to allow testing of new TB drugs in combination cutting years off the development timeline Under the leadership of the Critical Path Institute CPTRlsquos Regulatory Science Consortium focuses on establishing consensus on preferred standards methods and tools for developing new TB drug regimens and obtaining official acceptance from international regulatory authorities Source TB Alliance Pfizer Establishes the Cambridge Research Center September 01 2011 Pfizer Inc recently announced it has entered into a 10-year lease agreement with the Massachusetts Institute of Technology (MIT) for more than 180000 square feet in a new building under development in Cambridge Massachusetts Located at 610 Main Street South in Kendall Square the new site will be the future location of Pfizerlsquos Cardiovascular Metabolic and En-docrine Disease (CVMED) and Neuroscience Research Units The reloca-tion of the two Research Units will substantially boost Pfizerlsquos footprint in Cambridge making it the second largest biopharmaceutical company in Massachusetts in terms of jobs ―We were very deliberate in our choice to move to Cambridge MA as a key part of our RampD strategy By expanding our presence in one of the worldlsquos great centers of scientific and medical innovation we will provide the best environment for our researchers to invent the next generation of medicines in areas of greatest need such as Alzheimerlsquos disease schizophrenia diabe-tes and cardiovascular disease said Rod MacKenzie senior vice president and head of PharmaTherapeutics Research amp Development ―We intend to foster productive formal and informal collaborations between our drug dis-covery experts and the outstanding scientists of Cambridgelsquos world class institutions This is a very exciting period in Pfizer RampD Source Pfizer

20

21

Continued from page 19hellip UK Academia Given Access to Selected AstraZeneca Compounds December 11 2011 Following a unique landmark agreement between AstraZeneca and the UK Medical Research Council (MRC) a wide range of compounds will be made available to UK medical researchers next year In a new type of collabora-tion academia will be granted access to 22 clinical and preclinical com-pounds developed by AstraZeneca Though making individual compounds available to external academic investigators is not unusual the breadth and open-innovation nature of this collaboration is unique because it provides unprecedented access to well characterised clinical and preclinical candidate molecules to investigators across all UK academic institutions There is significant unmet need in diseases both within and outside Astra-Zenecalsquos current research focus This collaboration builds on the sizable in-vestment made in developing candidate drugs within AstraZeneca by help-ing researchers to explore their potential more broadly with the hope that they will find new future medicines It also helps AstraZeneca explore areas of unmet patient need beyond its current disease area focus leveraging great external science in a way that is highly flexible and cost effective The New Opportunities Innovative Medicines Unit (iMed) in AstraZeneca has been central in establishing this research collaboration with the MRC and has acted as the interface with the other AstraZeneca iMeds to agree which compounds would be eligible Clive Morris VP New Opportunities iMed said that ―This Open Innova-tionlsquo approach brings together the strengths of AstraZeneca the MRC and UK Academia into what I hope will be a really potent mix bringing forward really exciting new ideas that could transform our understanding of some diseases It highlights an openness to new scientific thinking and also places external scientific collaboration right at the heart of what we do It is also an excellent way to broaden our portfolio of activities into new diseases for As-traZeneca leveraging the wealth of expertise across UK academia AstraZeneca and the MRC will invite preclinical and clinical research pro-posals from across the UK academic community to investigate the com-pounds in a range of diseases with a view to finding new treatment oppor-tunities AstraZeneca will work with the academic collaborators to develop the best scientific proposals and the MRC will select the highest quality pro-posals for funding awarding up to pound10 million in total to fund the success-ful proposals The successful applicants will then work collaboratively with AstraZeneca to deliver the studies David Brennan AstraZenecalsquos Chief Executive Officer said ―Innovative collaborations are playing a crucial role in finding ways to unlock the poten-tial of new treatments The UK has a strong heritage of research excellence in life sciences We hope that in sharing these valuable compounds with aca-demic scientists through the MRC new discoveries will be made by explor-ing additional uses of these compounds Source AstraZeneca WIPO ReSearch A Neglected Tropical Diseases Initiative October 26 2011 The World Intellectual Property Organization (WIPO) in an unprecedented collaboration with leading pharmaceutical companies and BIO Ventures for Global Health (BVGH) recently launched the WIPO Re Search a new consortium where public and private sector organizations share valuable in-tellectual property (IP) and expertise with the global health research commu-nity to promote development of new drugs vaccines and diagnostics to treat neglected tropical diseases malaria and tuberculosis In WIPO ReSearch Alnylam Pharmaceuticals AstraZeneca Eisai GlaxoS-mithKline MSD1 Novartis Pfizer and Sanofi are collaborating with WIPO BVGH the US National Institutes of Health (NIH) and multiple non-profit research organizations These include the California Institute of Technology the Center for World Health amp Medicine the Drugs for Ne-glected Diseases initiative Fundaccedilatildeo Oswaldo Cruz (Fiocruz) Massachu-setts Institute of Technology Medicines for Malaria Venture PATH the South African Medical Research Council the Swiss Tropical and Public Health Institute the University of California Berkeley and the University of Dundee (UK)

―WIPO ReSearch is a ground breaking example of how a multi-stakeholder coalition can put IP to work for social benefit said WIPO Director Gen-

eral Francis Gurry ―By joining WIPO ReSearch companies and researchers commit to making selected intellectual property assets available under roy-alty-free licenses to qualified researchers anywhere in the world for research and development on neglected tropical diseases malaria and tuberculosis This commitment should accelerate the development of medicines vaccines and diagnostics for these diseases

According to the World Health Organization (WHO) neglected tropical diseases today impair the lives of an estimated 1 billion people The WHO provides technical advice to WIPO on public health issues and research pri-orities as appropriate

By providing a searchable public database of available intellectual property assets information and resources WIPO ReSearch facilitates new partner-ships with organizations that conduct research on treatments for neglected tropical diseases malaria and tuberculosis

Membership in WIPO ReSearch as a user provider or supporter is open to all organizations that endorse adhere to and support the projectlsquos Guiding Principles These Guiding Principles include the commitment that IP li-censed via WIPO ReSearch will be licensed on a royalty-free basis for re-search and development on neglected tropical diseases in any country and on a royalty-free basis for sale of neglected tropical disease medicines in or to least developed countries

―The innovative pharmaceutical industry has an important part to play in addressing unmet medical needs and increasing access to our collective pro-prietary information will help advance research into treatment options for these underserved diseases said David Brennan CEO of AstraZeneca and President of the International Federation of Pharmaceutical Manufacturers amp Associations (IFPMA) ―WIPO ReSearch has the potential to make a real impact on global health which is why we are proud to make all patents owned by AstraZeneca available to this important initiative for promoting the research and development of treatments for neglected tropical diseases anywhere in the world

The WIPO ReSearch database includes a wide variety of contributions rele-vant to malaria tuberculosis and other neglected tropical diseases including individual compounds and associated data screening hits from compound libraries and expertise and know-how in pharmaceutical research and devel-opment In addition WIPO ReSearch offers the opportunity for neglected tropical disease researchers to work directly with scientists at pharmaceutical companies to advance RampD on these diseases As WIPO ReSearch moves forward offerings from current partners will continue to grow and new pro-viders are expected to join to add to the wealth of information compounds and services available

―NIH licenses its patents to enable the private sector to develop diagnostics therapeutics and devices that improve public health said National Insti-tutes of Health Director Francis S Collins MD PhD ―We want to ensure that our biological materials and patents covering treatments or vaccines for neglected tropical diseases as with all diseases are available as broadly as possible to speed the development of new products for people who are most burdened by these diseases and WIPO ReSearch helps us to do this

The founding eight pharmaceutical companies WIPO BVGH and NIH are joined by a distinguished group of globally recognized institutions as provid-ers potential users and supporters of WIPO ReSearch (see annex) BVGH will manage the WIPO ReSearch Partnership Hub which will facilitate rela-tionships between the pharmaceutical company providers and new users

―In our role as administrator of the WIPO ReSearch Partnership Hub BIO Ventures for Global Health is excited to bring these new opportunities to neglected disease researchers around the world to accelerate their work in this area of critical unmet need said Don Joseph Chief Operating Officer of BVGH ―As both present and future providers evaluate their internal data and IP with the goal to provide focused information which they believe will best serve the neglected tropical disease research and development commu-nity WIPO ReSearch will build on previous RampD investments to speed the development of drugs vaccines and diagnostics for the neglected diseases that disproportionately impact people living in resource-poor countries Source WIPO

Page 15: Bio Outsourcing Asia: Volume 1 Issue 3 2011.pdf · TB drug trials. Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies

15

Convergence Innovation Development at the Intersection of Disciplines Organizations and Products Convergence Innovation is the paradigm where discovery and technology creation occur at the intersection of multiple disciplines and organizations Specifically convergence between the chemical biological cognitive physi-cal and information sciences is evident Firms and researchers will cross the boundaries between these disciplines to create technological value--finding solutions to address health environmental and energy challenges In parallel will be emergence of new models of collaboration to enable knowledge crea-tion and knowledge dissemination Central to Convergence Innovation will be a determination of the common value of knowledge versus the private value of knowledge across the associated disciplinesmdashwith the goal of ad-vancing and commercializing technology Levels of Convergence Convergence can be considered at three levelsmdashnamely convergence in the sources of knowledge for research convergence in organizational forms to enable technology development and convergence at the product level with the embodiment of knowledge in complementary products For example while nanotechnology research has been shown to have a dominant focus on material sciences additional analysis has demonstrated that nano-based research increasingly draws its knowledge from other areas (Porter and Youtie 2009) Specifically Porter and Youtie (2009) reveal that while nano-based publications center on materials science (including chemistry and physics) nano-based research also significantly involves many other fields including biomedical sciences computer sciences and mathematical sci-ences environmental sciences and engineering Citation patterns further show extensive referencing across macro-disciplinesmdashwith a preponderance of references in nano-related articles to research outside the macro-discipline in which the article is published (Porter and Youtie 2009) Conse-quently at this level of convergence the sharing and absorption of research across the involved disciplines will be necessary for downstream value crea-tion (Figure 1) Figure 1 Convergence at the Disciplinary (Knowledge Sources) Level At the next level of convergencemdashthe organizational levelmdashthe interaction between technological convergence and models of open innovation is be-coming apparent Licensing mergers acquisitions and strategic alliances such as joint ventures as well as new structures such as innovation networks and open innovation communities represent alternative strategies that may be used to acquire or access the necessary knowledge or assets for discovery and development From a convergence perspective the opportunity exists for a (public or private) stakeholder to not only interact with other (public andor private sector) stakeholders through simple one-to-one traditional collaborations but with many stakeholders through more complex mecha-nisms such as consortia crowdsourcing and other such open innovation communities For example the need for shared scientific expertise and large scale infrastructure in both nanotechnology and biotechnology is thought to be responsible for the development of networks spanning both fields (Figure 2) The pervasiveness of enabling technologies such as information and communications technology (ICT) have encouraged innovation net-works to increase in dominance and have lead to the blurring of organiza-tional boundaries among research organizations (Powell Koput and Smith-Doerr 1996 Roijakkers and Hagedoorn 2006) In such collaborations the opportunity to assume multiple roles exists to enable RampD including the collaborator who shares knowledge with one or many partners for the pur-poses of discovery or development the incubator who provides funding or expertise to other stakeholders to support venture development the enabler

who provides access to tools equipment large scale infrastructure or other services to support product development and the orchestrator who manages the network of partners with either the objective of knowledge creation or knowledge application (Melese Lin Chang and Cohen 2009) At this level of convergence there is the critical need to closely examine the management processes associated with collaboration as the collaborative strategies have not only grown in relevance but also in terms of impact and the number of participants involved

Collaboration Model

Access

Simple (One to One) Complex (Many to Many)

Collaboration Complexity

Figure 2 Convergence at the Organizational Level Open Access=Participation Open Closed Access=Exclusive Partnership

Simple=One to One Link between Partners Complex=Many Links between Several Partners PPP=Public Private Partnership JV=Joint Venture

The location in the above grid determines the extent to which the collabora-tion is open or closed and between one few or many partners

Finally the outcomes from any collaborative interaction will increasingly lead to convergence at the product level In this case multiple components or products will be packaged together to enhance the value over individual product offerings (Figure 3) Such bundled products will have the goal of simultaneously meeting several technological needs be it for biomedical treatment as seen in the use of nano-based diagnostics paired with therapeutics in agriculture or environmental applications as seen in the use of sensors to measure pathogens in food and the environment or the use of nanospheres to selectively detect harmful materials in water and then used for detoxification and in the creation of novel energy technologies as seen in the use of catalysts in particles for biodiesel synthesis to name a few (Schmidt 2007) At the product level effective intellectual property man-agement strategies and coordination between regulatory agencies will be paramount

Figure 3 Convergence at the Product Level

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

COGNITIVE

PPP JV

MampA

Consortium Innovation Network

Crowdsourcing Open Source Network

Licensing

Proprietary Open Innovation Community

Closed

Open

NANOTECHNOLOGY

BIOLOGY

CHEMISTRY PHYSICS

INFORMATION

SCIENCES

Nanomaterials

Nanodevices

Nanoelectronics

Nanosensors

Bioinformatics

Biosensors

Tissue Engineering

Drug Delivery

Diagnostics

Drug Delivery

Chemical Catalysis

Nanofiltration

Chemical Sensors

Neuron Network

Prostheses GenerationCOGNITIVE

16

The Impact of Convergence At each level of convergence there are several complexities that either im-pact the management of stakeholder interaction or the management of the knowledge based assets generated through such interactions For example given the expected intersection between disciplines knowledge complexities including varied types (such as biological information and biological struc-tures chemical knowledge and structures physical knowledge and struc-tures) and forms of knowledge (disembodied and embodied) will drive the need for a common platform for knowledge integration validation and standardization Beyond integration of knowledge it is expected that teams of biological chemical and physical scientists will increasingly form to de-velop and bridge together the necessary tools and equipment for RampD ac-tivities (Ideker Galitski and Hood 2001 Kitano 2001 Kautt Walsh and Bittner 2007 Boardman 2008 Boardman and Ponomarioy 2009) We must also consider the impact of convergence on the downstream rights to de-velop products Lemley (2005) discusses that unlike other industries in which patentees are actual or potential participants in the downstream mar-ket a significant number of corporate patentees will increasingly own rights not just in the industry in which they participate but other industries as well Analysts fear that over-patenting alongside the large shadow of such patents could not only fragment technology but could discourage stakeholders in a number of industries from attempting to develop products incorporating infringing technologies (Lemley 2005) It is important to consider that as multiple disciplines increasingly working together each discipline will have its own priorities and conventions regarding knowledge dissemination and knowledge appropriation (Hilgartner 1996) One discipline may signal its success during knowledge generation through the enclosure and the sale of disembodied knowledge Another discipline may measure its success exclu-sively by the embodiment of knowledge in medical products (Hilgartner 1996) While patent pools are a suggested solution to the possible patent holdups (DlsquoSilva 2009) it has been proposed that as has occurred in the genomics arena innovation-based networks with rules regulating the devel-opment and appropriation of critical technology building blocks could not only circumvent the product development and legal problems of the past but will also bring together the requisite intellectual and physical capital (DlsquoSilva 2009 Allarakhia and Walsh 2010) A Template for Managing Interactions and Knowledge-Based Assets Governance strategies must seek to align the incentives for participation in collaborative activities for multiple stakeholders The use of rules to define actions communication mechanisms used to enable and monitor actions and to share the outcomes are all critical to ensure that goals are achieved Structure and Roles It is expected that the chosen collaboration modemdashone to one one to many or many to many collaboration and objectives set for the collaborationmdashpooling of assets generation of new assets andor pol-icy creation will impact the type of participants that will join The organiza-tional structure chosen will be determined in part by the attributes of the resources to be contributed or developedmdashinformation supporting tools technology as well as the location of participantsmdashwith linkages established through physical clustering or virtual networking Thereafter the organiza-tion of participants may be a function of technological expertise geographic location or project-based management expertise Resource Types and Outcomes Participants will contribute several inputs including funding equipment and human capital The resulting outcomes include data materials tools and technology Facilities store artifacts in or-der to make them accessible Traditional facilities have been libraries and archives containing books journals and papers New technologies have made electronic distributed information possible Artifacts are discreet ob-servable nameable representations of ideas such as articles research notes books databases maps computer files and web pages (Foray 2004 Hess and Ostrom 2006) In the context of nanotechnology databases material and model repositories accessible laboratories that aggregate equipment and tools for nanotechnology development are varied options to manage the outputs Hence any outcomes analysis should seek to determine the success of collaboration including the amount of data produced and accessed the material generated housed and accessed the tools created and used and the technology produced by participants Governance Internal rules or mechanisms used to promote cooperative be-haviour can include formalizing the requirements to join the initiative en-suring frequent interactions encouraging communication between partici-pants monitoring and punishing defection and setting the boundary for access to resources An authority that regulates access to resources can en-sure that a fair and efficient governance strategy is used (Ostrom Gardner and Walker 1994) While access generally refers to disembodied assets such

as data extraction can involve the removal andor use of physical materials models and tools Knowledge use and access can be governed by the fol-lowing rules sharing with partners only (closed access) sharing with part-ners and the public at large (open access) and intellectual property assign-ment potentially on information materials tools and technology with the specification of rights to use based on licensee type geography or target market for product launch Creating Value The Path Forward in The path forward will require the creation of supporting policies encourag-ing multi-disciplinary collaboration At a national level several governments have recognized the importance of innovation networks to develop capacity and compete on an international level Consequently policies are now pro-viding more RampD funding and incentives encouraging the formation of multi-sectoral networks (Corley Boardman and Bozeman 2006) New prod-ucts of convergent technologies will necessitate cooperation among regula-tory bodies with the coordination of information flow coordination of du-ties and increased harmonization between international regulatory bodies (Castle et al 2006 Drezek and Tour 2010) To avoid the mistakes of the past policies outlining guidelines for the management of intellectual prop-erty rights can ensure that stakeholders will correctly assess the common value of knowledge versus the private value of knowledgemdashresulting in the transition from open knowledge to appropriated knowledge with the objec-tive of pursuing (unilateral or collaborative) downstream product develop-ment References 1) Allarakhia M amp Walsh S Managing knowledge assets under conditions of radical change The case of the pharmaceutical industry Technovation 31 105-117 (2011) 2) Boardman P Beyond the stars The impact of affiliation with university biotechnology centers on the industrial involvement of university scientists Technovation 28 291-297 (2008) 3) Boardman Pamp Ponomarioy B University researchers working with pri-vate companies Technovation 29 142-153 (2009) 4) Castle D Loeppky R Saner M Cline C Dalgleish J amp Wojnik V Convergence in Biotechnology Innovation Case Studies and Implications for Regulation (University of Guelph Guelph 2006) 5) Corley EA Boardman PC amp Bozeman B Design and the manage-ment of multi-institutional research collaborations Theoretical implications from two case studies Research Policy 35 975-993 (2006) 6) Drezek RA amp Tour JM Is Nanotechnology Too Broad to Practice Nature Nanotechnology 5 168-169 (2010) 7) DlsquoSilva J Pools thickets and open source nanotechnology European Intellectual Property Review 31 300-306 (2009) 8) Foray D The Economics of Knowledge (MIT Press Cambridge 2004) 9) Hess C amp Ostrom E Understanding Knowledge as a Commons From Theory to Practice (MIT Press Cambridge 2006) 10) Ideker TT Galitski L amp Hood LE A new approach to decoding life Systems biology Annual Review Genomics and Human Genetics 2 343-372 (2001) 11) Kautt M Walsh S amp Bittner K Global distribution of microndashnano technology and fabrication centers A portfolio analysis approach Technol-ogy Forecasting and Social Change 74 1697-1717 (2007) 12) Kitano H Systems biology Toward systems-level understanding of bio-logical systems Foundation of Systems Biology 1-29 (MIT Press Cam-bridge 2001) 13) Lemley MA Patenting nanotechnology Stanford Law Review 58 601-630 (2005) 14) Melese T Lin SM Chang JL amp Cohen NH Open innovation net-works between academia and industry an imperative for breakthrough therapies Nature Medicine 15 502-507 (2009) 15) Ostrom E Gardner R amp Walker J Rules Games and Common-Pool Resources (The University of Michigan Press Ann Arbor 1994) 16) Porter AL amp Youtie J How interdisciplinary is nanotechnology Jour-nal of Nanoparticle Research 11 1023-1041 (2009) 17) Powell WW Koput KK amp Smith-Doerr L Inter-organizational col-laboration and the locus of innovation Network of learning in biotechnol-ogy Administrative Science Quarterly 41 116-145 (1996) 18) Roijakkers N amp Hagedoorn Inter-firm RampD partnering in pharmaceu-tical biotechnology since 1975 Trends patterns and networks J Research

Policy 35 431minus446 (2006) 19) Schmidt K Project on Emerging Nanotechnologies (2007)

17

18

Beyond Cost-Savings Hidden Considerations for Conducting Clinical Trials in Asia

By Jessica Liu General Manager ChinaNorth Asia INC Research and Garth Tierney Regional General Manager Australia and South East Asia INC Research

Abstract Pharmaceutical industry sponsors are well-aware of the cost bene-fits of conducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the pri-mary criteria by which sponsors should select the Asian regions in which they will conduct their clinical trials Other important considerations include disease incidence treatment standards minimizing variability maximizing protocol adherence regulatory factors politics cultural considerations and ethical concerns While global spending on medicines is expected to grow three percent to five percent over the next five years spending in the ―pharmerging markets is expected to double1 The desire to access this fast-growing consumer base is the primary reason large pharmaceutical companies are increasing their clinical presence in emerging countries like China according to a report from investment bank-ing firm William Blair2 But small to midsize drug makers are also moving into emerging markets driven primarily by cost differentials China can offer as much as a 50 percent cost advantage compared to the United States or Europe as can Thailand the Philippines or Malaysia Most countries in Asia are at least 20 percent to 30 percent more cost-efficient than their western counterparts although there are notable exceptions such as South Korea and Japan Pharmaceutical industry sponsors are well-aware of the cost benefits of con-ducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the primary criteria by which sponsors should select the Asian regions in which they will con-duct their clinical trials Other important considerations for conducting a trial in Asia include disease incidence and treatment standards the potential to minimize variability and maximize protocol adherence regulatory and political factors and cultural and ethical considerations Disease Incidence and Treatment Standards With more than four billion people Asia offers sponsors a deep pool from which to draw clinical trial participants Indeed for sponsors conducting late-stage clinical trials in indications such as diabetes or cardiovascular dis-ease which can require thousands of patients establishing Asian trial sites to tap into that pool is critical The key is determining which Asian countries will best match each triallsquos unique patient requirements For sponsors most concerned with enrolling large numbers of patients into a trial highly populous countries such as India China Indonesia Japan the Philippines Thailand and Malaysia may be the best fit A recent CRO survey revealed that China is the leader in patient recruitment for the Asia-Pacific region followed by India and South Korea3 However sponsors need to be aware that the region is still expanding and a vast population does not equate to vast number of ICH GCP trained sites in the larger countries of China and India This can be a limiting factor in gaining access to the best sites for certain indications If on the other hand a sponsor is conducting a Phase I trial they should know that certain Asian countries have specific regulatory requirements for approval of a clinical trial application (CTA) that can add complexity to the process Others like Australia specialize in Phase I studies thanks to their fast and straightforward approval processes high-quality clinical practices and variety of many academic and commercial clinical trials centers4 Selecting an appropriate region for trial sites also depends on the incidence of the target disease in each countrylsquos population Highly-developed Asian countries have a higher incidence of diseases common in the West such as diabetes and cardiovascular disease while diseases such as tuberculosis are more common in Southeast Asia Some countries like India have diverse patient populations afflicted with diseases of both the developing and devel-oped world

When it comes to standards of care certain diseases like breast cancer lung cancer and diabetes are treated in much the same way in Asia as they would be treated in the Western world But for many other indications medical practice standards differ both from East to West and between the different Asian regions Sponsors seeking to meet specific market regulatory approval will need to mirror Western standards-of-care and as such should consider focusing trial sites to Australia New Zealand Singapore Taiwan Hong Kong and South Korea But differing standards of care can also provide unique opportunities Asia offers relatively more patients for first-line and second-line cancer drug evaluation than the West where such patient stores have been largely exhausted Risk Mitigation Sponsors should be prepared that some Asian trial sites ndash even those that have adapted Western-style medical practices ndash may require more assistance when it comes to following protocol and differentiating between medical practice and clinical research Not all Asian sites will have the infrastructure for a clinical trial A good CRO partner will work with a sponsor and site investigators to identify any infrastructure gap ndash such as a dedicated com-puter fax or freezer ndash and develop plans to ensure sites have the essentials to deliver a study efficiently Data integrity is another area that sponsors and CROs need to focus atten-tion It is critical to reduce variability by ensuring all monitoring and site staff are well trained Monitors need to understand how to identify and pro-actively resolve issues early on to minimize long-term issues with patient recruitment and data collection They should understand how to recognize early warning signals and not overreact to red herrings Investigators and site monitors also need to be trained in adverse event reporting to ensure that they meet local regional and global clinical trial safety reporting Sponsors must ensure monitoring visits are being conducted regularly as such visits make it more likely that recruitment and data integrity issues will be detected early and managed in a timely and effective manner Equally im-portant site staff needs to be as consistent as possible Finally sponsors need to implement a proven system for data reporting as variability in the data collection process may decrease the evaluable patient pool in the trial decreasing the sponsorlsquos chances to establish statistical sig-nificance or detect a rare safety signal Regulatory and Political Factors While regulatory bodies in South Korea and Taiwan as well as in Singapore have adopted an FDA-based approach each Asian country has its own regulatory idiosyncrasies In China for example reviews take on a project-based nature and sponsors should never assume that what worked in one application will be directly applicable to another No matter how harmo-nized Asia may appear the cookie-cutter approach simply doesnlsquot work However the fact that regulatory policies are still evolving in certain Asian countries provides a unique opportunity to sponsors the opportunity to in-fluence those policies There are no formal guidances or rules covering this topic but it is a real opportunity The recent economic downturn has prompted finance ministers in many countries to more closely analyze the cost of healthcare and they are realizing that good drugs can decrease their overall costs To ensure new drugs are available in their countries they have become increasingly eager to support clinical trials and they are engaging in conversations with sponsors about how approval pathways might be con-structed that take healthcare economics into consideration For example if a sponsor works closely with regulatory agencies to design the right preclinical and Phase I trials could a single Phase IIIII trial be sufficient for approval in some indications Are so many repetitive studies really necessary Is the requirement or guidance relevant to the current technology If a sponsor can prove to the government that a certain disease is currently costing 50 cents per person per day to treat and a new drug would change treatment paradigms and reduce that cost to a penny that is a compelling argument Not compelling enough to compromise safety or effi-cacy but compelling enough to expedite things along by partnering to agree upon the most appropriate pathway to approval While some regulatory agencies may not be as comfortable with the idea of allowing more flexibility and customization in the clinical trial design many are open to reducing bu-reaucracy and the associated time delays for CTA approval ndash particularly when there is potential to significantly impact health economics Govern-ments may provide commercialization support including funding to enable

19

development of new technologies and testing methods There may also be a higher priority given to certain CTA applications in the review queue Australia and Singapore have adopted a more simplified regulatory process and offer a notification scheme rather than formal review by the regulator South Korea and Taiwan are working to ease regulations and facilitate pro-tocol reviews Countries such as China have lengthy regulatory approval processes however there are some early indications that this may be de-creasing India is currently experiencing slower regulatory paths Interest-ingly some Asia Pacific countries that have historically been considered ―easy targets for clinical trials are increasing their regulations While there is much potential to collaborate with regulatory bodies in Asia these are not the only government agencies with which a sponsor must work Each country has its own policies on insurance regulations import licenses and other factors that affect a sponsorlsquos ability to establish and run clinical trial sites Each should be reviewed before selecting countries in which to establish trial sites Cultural and Ethical Considerations Language barriers can be easily overcome by CRO partners with offices across Asia and they are the least of a sponsorlsquos worries when it comes to cultural differences More pressing are issues such as the fact that some Asian researchers may believe that their participation in a trial gives them the right to publish data on their findings while sponsors require at least some degree of control over the publication of trial data Such issues are best managed by thorough communication prior to the start of enrolment In certain countries cultural factors may positively impact a trial Ethical factors may also weigh on a sponsorlsquos decision to conduct trials in certain Asian countries There are certain diseases that present a serious unmet medical need specifically within Asian populations such as foot-and-mouth disease and such indications obviously lend themselves to Asian clinical tri-als Yet if a sponsor has no plans to launch a drug in certain Asian countries perhaps because the populations of those countries would not be able to afford the drug then conducting clinical research in those countries may present ethical challenges For the most part however sponsors are eager to launch their drugs into the rapidly growing Asian healthcare markets and Asian clinical trials are necessary to support this endeavour As mentioned initially the cost advan-tages of conducting clinical trials in Asia cannot be ignored as both large and small companies face pressures on their bottom lines But while costs are important they are not the only consideration About the Authors Jessica Liu MD is the general manager for Clinical Operations in China and North Asia at INC Research She previously managed international pro-jects out of the European headquarters office for a global CRO in Brussels Belgium Prior to that she worked for 15 years in the Chinese affiliates of several global pharmaceutical companies overseeing clinical operations pro-ject management and medical affairs She conducted and managed Phase I-IV clinical studies across multiple therapeutic areas Dr Liu started her ca-reer as a resident physician in the endocrinology Department of the Peking Union Medical College Hospital (PUMCH) in Beijing China She received her Medical Doctorate from the University of Beijing (China) and has a Di-ploma in Pharmaceutical Medicine from the University of Basel (Switzerland) Dr Liu is based in Beijing She can be reached at jialiuincresearchcom Garth Tierney is the regional general manager for Australia and South East Asia for INC Research Garth previously founded and managed Trident Clinical Research a CRO based throughout Australia New Zealand and In-dia After 14 years of operation Trident was acquired by INC Research in June 2011 Prior to founding and managing Trident Clinical Research Garth worked for 8 years in the clinical research industry in various senior manage-ment and operational management roles across several companies including a global CRO an Australian pharmaceutical company and two global phar-maceutical companies Garth has a pharmacology (University of NSW) and business administration (University of Adelaide) background and worked in hypertension research for several years before joining the pharmaceutical industry During this time Garth published various papers and won the Whelan prize (awarded by ASCEPT) He can be reached at gtierneyincresearchcom

References 1 IMS IMS Institute Forecasts Global Spending on Medicines to Reach

Nearly $11 Trillion by 2015 May 18 2011 2 Wm Blair Pharmaceutical Outsourcing Industry Analysis Jun 10

2010 3 CyberMedia Research-BioSpectrum Asia-Pacific CRO Survey 2011 4 Clinical Trials Action Group Report Commonwealth of Australia

2011 CPTR Yields Progress New Six-Way Agreement has Goal to Speed Development of TB Drug Combinations November 11 2011 The Critical Path to TB Drug Regimens (CPTR) announced this November an innovative agreement between AstraZeneca Bayer Sanofi Tibotec TB Alliance and the World Health Organization to share information on tuber-culosis (TB) compounds within their respective drug pipelines to quickly identify and work together to develop the most promising TB drug regimen regardless of sponsor The partnership facilitates a more collaborative ap-proach to TB drug development with the objective to dramatically speed the development of shorter safer and more effective multi-drug treatments that are urgently needed to control the global TB pandemic The agreement will enable information-sharing around scientific and clinical data on TB compounds in clinical development By sharing data partners can identify opportunities to test their compounds in combination speeding availability of future TB regimens The collaboration includes the majority of global sponsors with TB drugs in clinical development Under the agree-ment if two or more organizations choose to work together to further de-velop a regimen they will enter into a separate arrangement that defines the rights and responsibilities of each party CPTR is working closely with regulatory scientists at the US Food and Drug Administration European Medicines Agency and other regulatory bodies in China India and some countries in Africa to develop the tools that are needed to allow testing of new TB drugs in combination cutting years off the development timeline Under the leadership of the Critical Path Institute CPTRlsquos Regulatory Science Consortium focuses on establishing consensus on preferred standards methods and tools for developing new TB drug regimens and obtaining official acceptance from international regulatory authorities Source TB Alliance Pfizer Establishes the Cambridge Research Center September 01 2011 Pfizer Inc recently announced it has entered into a 10-year lease agreement with the Massachusetts Institute of Technology (MIT) for more than 180000 square feet in a new building under development in Cambridge Massachusetts Located at 610 Main Street South in Kendall Square the new site will be the future location of Pfizerlsquos Cardiovascular Metabolic and En-docrine Disease (CVMED) and Neuroscience Research Units The reloca-tion of the two Research Units will substantially boost Pfizerlsquos footprint in Cambridge making it the second largest biopharmaceutical company in Massachusetts in terms of jobs ―We were very deliberate in our choice to move to Cambridge MA as a key part of our RampD strategy By expanding our presence in one of the worldlsquos great centers of scientific and medical innovation we will provide the best environment for our researchers to invent the next generation of medicines in areas of greatest need such as Alzheimerlsquos disease schizophrenia diabe-tes and cardiovascular disease said Rod MacKenzie senior vice president and head of PharmaTherapeutics Research amp Development ―We intend to foster productive formal and informal collaborations between our drug dis-covery experts and the outstanding scientists of Cambridgelsquos world class institutions This is a very exciting period in Pfizer RampD Source Pfizer

20

21

Continued from page 19hellip UK Academia Given Access to Selected AstraZeneca Compounds December 11 2011 Following a unique landmark agreement between AstraZeneca and the UK Medical Research Council (MRC) a wide range of compounds will be made available to UK medical researchers next year In a new type of collabora-tion academia will be granted access to 22 clinical and preclinical com-pounds developed by AstraZeneca Though making individual compounds available to external academic investigators is not unusual the breadth and open-innovation nature of this collaboration is unique because it provides unprecedented access to well characterised clinical and preclinical candidate molecules to investigators across all UK academic institutions There is significant unmet need in diseases both within and outside Astra-Zenecalsquos current research focus This collaboration builds on the sizable in-vestment made in developing candidate drugs within AstraZeneca by help-ing researchers to explore their potential more broadly with the hope that they will find new future medicines It also helps AstraZeneca explore areas of unmet patient need beyond its current disease area focus leveraging great external science in a way that is highly flexible and cost effective The New Opportunities Innovative Medicines Unit (iMed) in AstraZeneca has been central in establishing this research collaboration with the MRC and has acted as the interface with the other AstraZeneca iMeds to agree which compounds would be eligible Clive Morris VP New Opportunities iMed said that ―This Open Innova-tionlsquo approach brings together the strengths of AstraZeneca the MRC and UK Academia into what I hope will be a really potent mix bringing forward really exciting new ideas that could transform our understanding of some diseases It highlights an openness to new scientific thinking and also places external scientific collaboration right at the heart of what we do It is also an excellent way to broaden our portfolio of activities into new diseases for As-traZeneca leveraging the wealth of expertise across UK academia AstraZeneca and the MRC will invite preclinical and clinical research pro-posals from across the UK academic community to investigate the com-pounds in a range of diseases with a view to finding new treatment oppor-tunities AstraZeneca will work with the academic collaborators to develop the best scientific proposals and the MRC will select the highest quality pro-posals for funding awarding up to pound10 million in total to fund the success-ful proposals The successful applicants will then work collaboratively with AstraZeneca to deliver the studies David Brennan AstraZenecalsquos Chief Executive Officer said ―Innovative collaborations are playing a crucial role in finding ways to unlock the poten-tial of new treatments The UK has a strong heritage of research excellence in life sciences We hope that in sharing these valuable compounds with aca-demic scientists through the MRC new discoveries will be made by explor-ing additional uses of these compounds Source AstraZeneca WIPO ReSearch A Neglected Tropical Diseases Initiative October 26 2011 The World Intellectual Property Organization (WIPO) in an unprecedented collaboration with leading pharmaceutical companies and BIO Ventures for Global Health (BVGH) recently launched the WIPO Re Search a new consortium where public and private sector organizations share valuable in-tellectual property (IP) and expertise with the global health research commu-nity to promote development of new drugs vaccines and diagnostics to treat neglected tropical diseases malaria and tuberculosis In WIPO ReSearch Alnylam Pharmaceuticals AstraZeneca Eisai GlaxoS-mithKline MSD1 Novartis Pfizer and Sanofi are collaborating with WIPO BVGH the US National Institutes of Health (NIH) and multiple non-profit research organizations These include the California Institute of Technology the Center for World Health amp Medicine the Drugs for Ne-glected Diseases initiative Fundaccedilatildeo Oswaldo Cruz (Fiocruz) Massachu-setts Institute of Technology Medicines for Malaria Venture PATH the South African Medical Research Council the Swiss Tropical and Public Health Institute the University of California Berkeley and the University of Dundee (UK)

―WIPO ReSearch is a ground breaking example of how a multi-stakeholder coalition can put IP to work for social benefit said WIPO Director Gen-

eral Francis Gurry ―By joining WIPO ReSearch companies and researchers commit to making selected intellectual property assets available under roy-alty-free licenses to qualified researchers anywhere in the world for research and development on neglected tropical diseases malaria and tuberculosis This commitment should accelerate the development of medicines vaccines and diagnostics for these diseases

According to the World Health Organization (WHO) neglected tropical diseases today impair the lives of an estimated 1 billion people The WHO provides technical advice to WIPO on public health issues and research pri-orities as appropriate

By providing a searchable public database of available intellectual property assets information and resources WIPO ReSearch facilitates new partner-ships with organizations that conduct research on treatments for neglected tropical diseases malaria and tuberculosis

Membership in WIPO ReSearch as a user provider or supporter is open to all organizations that endorse adhere to and support the projectlsquos Guiding Principles These Guiding Principles include the commitment that IP li-censed via WIPO ReSearch will be licensed on a royalty-free basis for re-search and development on neglected tropical diseases in any country and on a royalty-free basis for sale of neglected tropical disease medicines in or to least developed countries

―The innovative pharmaceutical industry has an important part to play in addressing unmet medical needs and increasing access to our collective pro-prietary information will help advance research into treatment options for these underserved diseases said David Brennan CEO of AstraZeneca and President of the International Federation of Pharmaceutical Manufacturers amp Associations (IFPMA) ―WIPO ReSearch has the potential to make a real impact on global health which is why we are proud to make all patents owned by AstraZeneca available to this important initiative for promoting the research and development of treatments for neglected tropical diseases anywhere in the world

The WIPO ReSearch database includes a wide variety of contributions rele-vant to malaria tuberculosis and other neglected tropical diseases including individual compounds and associated data screening hits from compound libraries and expertise and know-how in pharmaceutical research and devel-opment In addition WIPO ReSearch offers the opportunity for neglected tropical disease researchers to work directly with scientists at pharmaceutical companies to advance RampD on these diseases As WIPO ReSearch moves forward offerings from current partners will continue to grow and new pro-viders are expected to join to add to the wealth of information compounds and services available

―NIH licenses its patents to enable the private sector to develop diagnostics therapeutics and devices that improve public health said National Insti-tutes of Health Director Francis S Collins MD PhD ―We want to ensure that our biological materials and patents covering treatments or vaccines for neglected tropical diseases as with all diseases are available as broadly as possible to speed the development of new products for people who are most burdened by these diseases and WIPO ReSearch helps us to do this

The founding eight pharmaceutical companies WIPO BVGH and NIH are joined by a distinguished group of globally recognized institutions as provid-ers potential users and supporters of WIPO ReSearch (see annex) BVGH will manage the WIPO ReSearch Partnership Hub which will facilitate rela-tionships between the pharmaceutical company providers and new users

―In our role as administrator of the WIPO ReSearch Partnership Hub BIO Ventures for Global Health is excited to bring these new opportunities to neglected disease researchers around the world to accelerate their work in this area of critical unmet need said Don Joseph Chief Operating Officer of BVGH ―As both present and future providers evaluate their internal data and IP with the goal to provide focused information which they believe will best serve the neglected tropical disease research and development commu-nity WIPO ReSearch will build on previous RampD investments to speed the development of drugs vaccines and diagnostics for the neglected diseases that disproportionately impact people living in resource-poor countries Source WIPO

Page 16: Bio Outsourcing Asia: Volume 1 Issue 3 2011.pdf · TB drug trials. Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies

16

The Impact of Convergence At each level of convergence there are several complexities that either im-pact the management of stakeholder interaction or the management of the knowledge based assets generated through such interactions For example given the expected intersection between disciplines knowledge complexities including varied types (such as biological information and biological struc-tures chemical knowledge and structures physical knowledge and struc-tures) and forms of knowledge (disembodied and embodied) will drive the need for a common platform for knowledge integration validation and standardization Beyond integration of knowledge it is expected that teams of biological chemical and physical scientists will increasingly form to de-velop and bridge together the necessary tools and equipment for RampD ac-tivities (Ideker Galitski and Hood 2001 Kitano 2001 Kautt Walsh and Bittner 2007 Boardman 2008 Boardman and Ponomarioy 2009) We must also consider the impact of convergence on the downstream rights to de-velop products Lemley (2005) discusses that unlike other industries in which patentees are actual or potential participants in the downstream mar-ket a significant number of corporate patentees will increasingly own rights not just in the industry in which they participate but other industries as well Analysts fear that over-patenting alongside the large shadow of such patents could not only fragment technology but could discourage stakeholders in a number of industries from attempting to develop products incorporating infringing technologies (Lemley 2005) It is important to consider that as multiple disciplines increasingly working together each discipline will have its own priorities and conventions regarding knowledge dissemination and knowledge appropriation (Hilgartner 1996) One discipline may signal its success during knowledge generation through the enclosure and the sale of disembodied knowledge Another discipline may measure its success exclu-sively by the embodiment of knowledge in medical products (Hilgartner 1996) While patent pools are a suggested solution to the possible patent holdups (DlsquoSilva 2009) it has been proposed that as has occurred in the genomics arena innovation-based networks with rules regulating the devel-opment and appropriation of critical technology building blocks could not only circumvent the product development and legal problems of the past but will also bring together the requisite intellectual and physical capital (DlsquoSilva 2009 Allarakhia and Walsh 2010) A Template for Managing Interactions and Knowledge-Based Assets Governance strategies must seek to align the incentives for participation in collaborative activities for multiple stakeholders The use of rules to define actions communication mechanisms used to enable and monitor actions and to share the outcomes are all critical to ensure that goals are achieved Structure and Roles It is expected that the chosen collaboration modemdashone to one one to many or many to many collaboration and objectives set for the collaborationmdashpooling of assets generation of new assets andor pol-icy creation will impact the type of participants that will join The organiza-tional structure chosen will be determined in part by the attributes of the resources to be contributed or developedmdashinformation supporting tools technology as well as the location of participantsmdashwith linkages established through physical clustering or virtual networking Thereafter the organiza-tion of participants may be a function of technological expertise geographic location or project-based management expertise Resource Types and Outcomes Participants will contribute several inputs including funding equipment and human capital The resulting outcomes include data materials tools and technology Facilities store artifacts in or-der to make them accessible Traditional facilities have been libraries and archives containing books journals and papers New technologies have made electronic distributed information possible Artifacts are discreet ob-servable nameable representations of ideas such as articles research notes books databases maps computer files and web pages (Foray 2004 Hess and Ostrom 2006) In the context of nanotechnology databases material and model repositories accessible laboratories that aggregate equipment and tools for nanotechnology development are varied options to manage the outputs Hence any outcomes analysis should seek to determine the success of collaboration including the amount of data produced and accessed the material generated housed and accessed the tools created and used and the technology produced by participants Governance Internal rules or mechanisms used to promote cooperative be-haviour can include formalizing the requirements to join the initiative en-suring frequent interactions encouraging communication between partici-pants monitoring and punishing defection and setting the boundary for access to resources An authority that regulates access to resources can en-sure that a fair and efficient governance strategy is used (Ostrom Gardner and Walker 1994) While access generally refers to disembodied assets such

as data extraction can involve the removal andor use of physical materials models and tools Knowledge use and access can be governed by the fol-lowing rules sharing with partners only (closed access) sharing with part-ners and the public at large (open access) and intellectual property assign-ment potentially on information materials tools and technology with the specification of rights to use based on licensee type geography or target market for product launch Creating Value The Path Forward in The path forward will require the creation of supporting policies encourag-ing multi-disciplinary collaboration At a national level several governments have recognized the importance of innovation networks to develop capacity and compete on an international level Consequently policies are now pro-viding more RampD funding and incentives encouraging the formation of multi-sectoral networks (Corley Boardman and Bozeman 2006) New prod-ucts of convergent technologies will necessitate cooperation among regula-tory bodies with the coordination of information flow coordination of du-ties and increased harmonization between international regulatory bodies (Castle et al 2006 Drezek and Tour 2010) To avoid the mistakes of the past policies outlining guidelines for the management of intellectual prop-erty rights can ensure that stakeholders will correctly assess the common value of knowledge versus the private value of knowledgemdashresulting in the transition from open knowledge to appropriated knowledge with the objec-tive of pursuing (unilateral or collaborative) downstream product develop-ment References 1) Allarakhia M amp Walsh S Managing knowledge assets under conditions of radical change The case of the pharmaceutical industry Technovation 31 105-117 (2011) 2) Boardman P Beyond the stars The impact of affiliation with university biotechnology centers on the industrial involvement of university scientists Technovation 28 291-297 (2008) 3) Boardman Pamp Ponomarioy B University researchers working with pri-vate companies Technovation 29 142-153 (2009) 4) Castle D Loeppky R Saner M Cline C Dalgleish J amp Wojnik V Convergence in Biotechnology Innovation Case Studies and Implications for Regulation (University of Guelph Guelph 2006) 5) Corley EA Boardman PC amp Bozeman B Design and the manage-ment of multi-institutional research collaborations Theoretical implications from two case studies Research Policy 35 975-993 (2006) 6) Drezek RA amp Tour JM Is Nanotechnology Too Broad to Practice Nature Nanotechnology 5 168-169 (2010) 7) DlsquoSilva J Pools thickets and open source nanotechnology European Intellectual Property Review 31 300-306 (2009) 8) Foray D The Economics of Knowledge (MIT Press Cambridge 2004) 9) Hess C amp Ostrom E Understanding Knowledge as a Commons From Theory to Practice (MIT Press Cambridge 2006) 10) Ideker TT Galitski L amp Hood LE A new approach to decoding life Systems biology Annual Review Genomics and Human Genetics 2 343-372 (2001) 11) Kautt M Walsh S amp Bittner K Global distribution of microndashnano technology and fabrication centers A portfolio analysis approach Technol-ogy Forecasting and Social Change 74 1697-1717 (2007) 12) Kitano H Systems biology Toward systems-level understanding of bio-logical systems Foundation of Systems Biology 1-29 (MIT Press Cam-bridge 2001) 13) Lemley MA Patenting nanotechnology Stanford Law Review 58 601-630 (2005) 14) Melese T Lin SM Chang JL amp Cohen NH Open innovation net-works between academia and industry an imperative for breakthrough therapies Nature Medicine 15 502-507 (2009) 15) Ostrom E Gardner R amp Walker J Rules Games and Common-Pool Resources (The University of Michigan Press Ann Arbor 1994) 16) Porter AL amp Youtie J How interdisciplinary is nanotechnology Jour-nal of Nanoparticle Research 11 1023-1041 (2009) 17) Powell WW Koput KK amp Smith-Doerr L Inter-organizational col-laboration and the locus of innovation Network of learning in biotechnol-ogy Administrative Science Quarterly 41 116-145 (1996) 18) Roijakkers N amp Hagedoorn Inter-firm RampD partnering in pharmaceu-tical biotechnology since 1975 Trends patterns and networks J Research

Policy 35 431minus446 (2006) 19) Schmidt K Project on Emerging Nanotechnologies (2007)

17

18

Beyond Cost-Savings Hidden Considerations for Conducting Clinical Trials in Asia

By Jessica Liu General Manager ChinaNorth Asia INC Research and Garth Tierney Regional General Manager Australia and South East Asia INC Research

Abstract Pharmaceutical industry sponsors are well-aware of the cost bene-fits of conducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the pri-mary criteria by which sponsors should select the Asian regions in which they will conduct their clinical trials Other important considerations include disease incidence treatment standards minimizing variability maximizing protocol adherence regulatory factors politics cultural considerations and ethical concerns While global spending on medicines is expected to grow three percent to five percent over the next five years spending in the ―pharmerging markets is expected to double1 The desire to access this fast-growing consumer base is the primary reason large pharmaceutical companies are increasing their clinical presence in emerging countries like China according to a report from investment bank-ing firm William Blair2 But small to midsize drug makers are also moving into emerging markets driven primarily by cost differentials China can offer as much as a 50 percent cost advantage compared to the United States or Europe as can Thailand the Philippines or Malaysia Most countries in Asia are at least 20 percent to 30 percent more cost-efficient than their western counterparts although there are notable exceptions such as South Korea and Japan Pharmaceutical industry sponsors are well-aware of the cost benefits of con-ducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the primary criteria by which sponsors should select the Asian regions in which they will con-duct their clinical trials Other important considerations for conducting a trial in Asia include disease incidence and treatment standards the potential to minimize variability and maximize protocol adherence regulatory and political factors and cultural and ethical considerations Disease Incidence and Treatment Standards With more than four billion people Asia offers sponsors a deep pool from which to draw clinical trial participants Indeed for sponsors conducting late-stage clinical trials in indications such as diabetes or cardiovascular dis-ease which can require thousands of patients establishing Asian trial sites to tap into that pool is critical The key is determining which Asian countries will best match each triallsquos unique patient requirements For sponsors most concerned with enrolling large numbers of patients into a trial highly populous countries such as India China Indonesia Japan the Philippines Thailand and Malaysia may be the best fit A recent CRO survey revealed that China is the leader in patient recruitment for the Asia-Pacific region followed by India and South Korea3 However sponsors need to be aware that the region is still expanding and a vast population does not equate to vast number of ICH GCP trained sites in the larger countries of China and India This can be a limiting factor in gaining access to the best sites for certain indications If on the other hand a sponsor is conducting a Phase I trial they should know that certain Asian countries have specific regulatory requirements for approval of a clinical trial application (CTA) that can add complexity to the process Others like Australia specialize in Phase I studies thanks to their fast and straightforward approval processes high-quality clinical practices and variety of many academic and commercial clinical trials centers4 Selecting an appropriate region for trial sites also depends on the incidence of the target disease in each countrylsquos population Highly-developed Asian countries have a higher incidence of diseases common in the West such as diabetes and cardiovascular disease while diseases such as tuberculosis are more common in Southeast Asia Some countries like India have diverse patient populations afflicted with diseases of both the developing and devel-oped world

When it comes to standards of care certain diseases like breast cancer lung cancer and diabetes are treated in much the same way in Asia as they would be treated in the Western world But for many other indications medical practice standards differ both from East to West and between the different Asian regions Sponsors seeking to meet specific market regulatory approval will need to mirror Western standards-of-care and as such should consider focusing trial sites to Australia New Zealand Singapore Taiwan Hong Kong and South Korea But differing standards of care can also provide unique opportunities Asia offers relatively more patients for first-line and second-line cancer drug evaluation than the West where such patient stores have been largely exhausted Risk Mitigation Sponsors should be prepared that some Asian trial sites ndash even those that have adapted Western-style medical practices ndash may require more assistance when it comes to following protocol and differentiating between medical practice and clinical research Not all Asian sites will have the infrastructure for a clinical trial A good CRO partner will work with a sponsor and site investigators to identify any infrastructure gap ndash such as a dedicated com-puter fax or freezer ndash and develop plans to ensure sites have the essentials to deliver a study efficiently Data integrity is another area that sponsors and CROs need to focus atten-tion It is critical to reduce variability by ensuring all monitoring and site staff are well trained Monitors need to understand how to identify and pro-actively resolve issues early on to minimize long-term issues with patient recruitment and data collection They should understand how to recognize early warning signals and not overreact to red herrings Investigators and site monitors also need to be trained in adverse event reporting to ensure that they meet local regional and global clinical trial safety reporting Sponsors must ensure monitoring visits are being conducted regularly as such visits make it more likely that recruitment and data integrity issues will be detected early and managed in a timely and effective manner Equally im-portant site staff needs to be as consistent as possible Finally sponsors need to implement a proven system for data reporting as variability in the data collection process may decrease the evaluable patient pool in the trial decreasing the sponsorlsquos chances to establish statistical sig-nificance or detect a rare safety signal Regulatory and Political Factors While regulatory bodies in South Korea and Taiwan as well as in Singapore have adopted an FDA-based approach each Asian country has its own regulatory idiosyncrasies In China for example reviews take on a project-based nature and sponsors should never assume that what worked in one application will be directly applicable to another No matter how harmo-nized Asia may appear the cookie-cutter approach simply doesnlsquot work However the fact that regulatory policies are still evolving in certain Asian countries provides a unique opportunity to sponsors the opportunity to in-fluence those policies There are no formal guidances or rules covering this topic but it is a real opportunity The recent economic downturn has prompted finance ministers in many countries to more closely analyze the cost of healthcare and they are realizing that good drugs can decrease their overall costs To ensure new drugs are available in their countries they have become increasingly eager to support clinical trials and they are engaging in conversations with sponsors about how approval pathways might be con-structed that take healthcare economics into consideration For example if a sponsor works closely with regulatory agencies to design the right preclinical and Phase I trials could a single Phase IIIII trial be sufficient for approval in some indications Are so many repetitive studies really necessary Is the requirement or guidance relevant to the current technology If a sponsor can prove to the government that a certain disease is currently costing 50 cents per person per day to treat and a new drug would change treatment paradigms and reduce that cost to a penny that is a compelling argument Not compelling enough to compromise safety or effi-cacy but compelling enough to expedite things along by partnering to agree upon the most appropriate pathway to approval While some regulatory agencies may not be as comfortable with the idea of allowing more flexibility and customization in the clinical trial design many are open to reducing bu-reaucracy and the associated time delays for CTA approval ndash particularly when there is potential to significantly impact health economics Govern-ments may provide commercialization support including funding to enable

19

development of new technologies and testing methods There may also be a higher priority given to certain CTA applications in the review queue Australia and Singapore have adopted a more simplified regulatory process and offer a notification scheme rather than formal review by the regulator South Korea and Taiwan are working to ease regulations and facilitate pro-tocol reviews Countries such as China have lengthy regulatory approval processes however there are some early indications that this may be de-creasing India is currently experiencing slower regulatory paths Interest-ingly some Asia Pacific countries that have historically been considered ―easy targets for clinical trials are increasing their regulations While there is much potential to collaborate with regulatory bodies in Asia these are not the only government agencies with which a sponsor must work Each country has its own policies on insurance regulations import licenses and other factors that affect a sponsorlsquos ability to establish and run clinical trial sites Each should be reviewed before selecting countries in which to establish trial sites Cultural and Ethical Considerations Language barriers can be easily overcome by CRO partners with offices across Asia and they are the least of a sponsorlsquos worries when it comes to cultural differences More pressing are issues such as the fact that some Asian researchers may believe that their participation in a trial gives them the right to publish data on their findings while sponsors require at least some degree of control over the publication of trial data Such issues are best managed by thorough communication prior to the start of enrolment In certain countries cultural factors may positively impact a trial Ethical factors may also weigh on a sponsorlsquos decision to conduct trials in certain Asian countries There are certain diseases that present a serious unmet medical need specifically within Asian populations such as foot-and-mouth disease and such indications obviously lend themselves to Asian clinical tri-als Yet if a sponsor has no plans to launch a drug in certain Asian countries perhaps because the populations of those countries would not be able to afford the drug then conducting clinical research in those countries may present ethical challenges For the most part however sponsors are eager to launch their drugs into the rapidly growing Asian healthcare markets and Asian clinical trials are necessary to support this endeavour As mentioned initially the cost advan-tages of conducting clinical trials in Asia cannot be ignored as both large and small companies face pressures on their bottom lines But while costs are important they are not the only consideration About the Authors Jessica Liu MD is the general manager for Clinical Operations in China and North Asia at INC Research She previously managed international pro-jects out of the European headquarters office for a global CRO in Brussels Belgium Prior to that she worked for 15 years in the Chinese affiliates of several global pharmaceutical companies overseeing clinical operations pro-ject management and medical affairs She conducted and managed Phase I-IV clinical studies across multiple therapeutic areas Dr Liu started her ca-reer as a resident physician in the endocrinology Department of the Peking Union Medical College Hospital (PUMCH) in Beijing China She received her Medical Doctorate from the University of Beijing (China) and has a Di-ploma in Pharmaceutical Medicine from the University of Basel (Switzerland) Dr Liu is based in Beijing She can be reached at jialiuincresearchcom Garth Tierney is the regional general manager for Australia and South East Asia for INC Research Garth previously founded and managed Trident Clinical Research a CRO based throughout Australia New Zealand and In-dia After 14 years of operation Trident was acquired by INC Research in June 2011 Prior to founding and managing Trident Clinical Research Garth worked for 8 years in the clinical research industry in various senior manage-ment and operational management roles across several companies including a global CRO an Australian pharmaceutical company and two global phar-maceutical companies Garth has a pharmacology (University of NSW) and business administration (University of Adelaide) background and worked in hypertension research for several years before joining the pharmaceutical industry During this time Garth published various papers and won the Whelan prize (awarded by ASCEPT) He can be reached at gtierneyincresearchcom

References 1 IMS IMS Institute Forecasts Global Spending on Medicines to Reach

Nearly $11 Trillion by 2015 May 18 2011 2 Wm Blair Pharmaceutical Outsourcing Industry Analysis Jun 10

2010 3 CyberMedia Research-BioSpectrum Asia-Pacific CRO Survey 2011 4 Clinical Trials Action Group Report Commonwealth of Australia

2011 CPTR Yields Progress New Six-Way Agreement has Goal to Speed Development of TB Drug Combinations November 11 2011 The Critical Path to TB Drug Regimens (CPTR) announced this November an innovative agreement between AstraZeneca Bayer Sanofi Tibotec TB Alliance and the World Health Organization to share information on tuber-culosis (TB) compounds within their respective drug pipelines to quickly identify and work together to develop the most promising TB drug regimen regardless of sponsor The partnership facilitates a more collaborative ap-proach to TB drug development with the objective to dramatically speed the development of shorter safer and more effective multi-drug treatments that are urgently needed to control the global TB pandemic The agreement will enable information-sharing around scientific and clinical data on TB compounds in clinical development By sharing data partners can identify opportunities to test their compounds in combination speeding availability of future TB regimens The collaboration includes the majority of global sponsors with TB drugs in clinical development Under the agree-ment if two or more organizations choose to work together to further de-velop a regimen they will enter into a separate arrangement that defines the rights and responsibilities of each party CPTR is working closely with regulatory scientists at the US Food and Drug Administration European Medicines Agency and other regulatory bodies in China India and some countries in Africa to develop the tools that are needed to allow testing of new TB drugs in combination cutting years off the development timeline Under the leadership of the Critical Path Institute CPTRlsquos Regulatory Science Consortium focuses on establishing consensus on preferred standards methods and tools for developing new TB drug regimens and obtaining official acceptance from international regulatory authorities Source TB Alliance Pfizer Establishes the Cambridge Research Center September 01 2011 Pfizer Inc recently announced it has entered into a 10-year lease agreement with the Massachusetts Institute of Technology (MIT) for more than 180000 square feet in a new building under development in Cambridge Massachusetts Located at 610 Main Street South in Kendall Square the new site will be the future location of Pfizerlsquos Cardiovascular Metabolic and En-docrine Disease (CVMED) and Neuroscience Research Units The reloca-tion of the two Research Units will substantially boost Pfizerlsquos footprint in Cambridge making it the second largest biopharmaceutical company in Massachusetts in terms of jobs ―We were very deliberate in our choice to move to Cambridge MA as a key part of our RampD strategy By expanding our presence in one of the worldlsquos great centers of scientific and medical innovation we will provide the best environment for our researchers to invent the next generation of medicines in areas of greatest need such as Alzheimerlsquos disease schizophrenia diabe-tes and cardiovascular disease said Rod MacKenzie senior vice president and head of PharmaTherapeutics Research amp Development ―We intend to foster productive formal and informal collaborations between our drug dis-covery experts and the outstanding scientists of Cambridgelsquos world class institutions This is a very exciting period in Pfizer RampD Source Pfizer

20

21

Continued from page 19hellip UK Academia Given Access to Selected AstraZeneca Compounds December 11 2011 Following a unique landmark agreement between AstraZeneca and the UK Medical Research Council (MRC) a wide range of compounds will be made available to UK medical researchers next year In a new type of collabora-tion academia will be granted access to 22 clinical and preclinical com-pounds developed by AstraZeneca Though making individual compounds available to external academic investigators is not unusual the breadth and open-innovation nature of this collaboration is unique because it provides unprecedented access to well characterised clinical and preclinical candidate molecules to investigators across all UK academic institutions There is significant unmet need in diseases both within and outside Astra-Zenecalsquos current research focus This collaboration builds on the sizable in-vestment made in developing candidate drugs within AstraZeneca by help-ing researchers to explore their potential more broadly with the hope that they will find new future medicines It also helps AstraZeneca explore areas of unmet patient need beyond its current disease area focus leveraging great external science in a way that is highly flexible and cost effective The New Opportunities Innovative Medicines Unit (iMed) in AstraZeneca has been central in establishing this research collaboration with the MRC and has acted as the interface with the other AstraZeneca iMeds to agree which compounds would be eligible Clive Morris VP New Opportunities iMed said that ―This Open Innova-tionlsquo approach brings together the strengths of AstraZeneca the MRC and UK Academia into what I hope will be a really potent mix bringing forward really exciting new ideas that could transform our understanding of some diseases It highlights an openness to new scientific thinking and also places external scientific collaboration right at the heart of what we do It is also an excellent way to broaden our portfolio of activities into new diseases for As-traZeneca leveraging the wealth of expertise across UK academia AstraZeneca and the MRC will invite preclinical and clinical research pro-posals from across the UK academic community to investigate the com-pounds in a range of diseases with a view to finding new treatment oppor-tunities AstraZeneca will work with the academic collaborators to develop the best scientific proposals and the MRC will select the highest quality pro-posals for funding awarding up to pound10 million in total to fund the success-ful proposals The successful applicants will then work collaboratively with AstraZeneca to deliver the studies David Brennan AstraZenecalsquos Chief Executive Officer said ―Innovative collaborations are playing a crucial role in finding ways to unlock the poten-tial of new treatments The UK has a strong heritage of research excellence in life sciences We hope that in sharing these valuable compounds with aca-demic scientists through the MRC new discoveries will be made by explor-ing additional uses of these compounds Source AstraZeneca WIPO ReSearch A Neglected Tropical Diseases Initiative October 26 2011 The World Intellectual Property Organization (WIPO) in an unprecedented collaboration with leading pharmaceutical companies and BIO Ventures for Global Health (BVGH) recently launched the WIPO Re Search a new consortium where public and private sector organizations share valuable in-tellectual property (IP) and expertise with the global health research commu-nity to promote development of new drugs vaccines and diagnostics to treat neglected tropical diseases malaria and tuberculosis In WIPO ReSearch Alnylam Pharmaceuticals AstraZeneca Eisai GlaxoS-mithKline MSD1 Novartis Pfizer and Sanofi are collaborating with WIPO BVGH the US National Institutes of Health (NIH) and multiple non-profit research organizations These include the California Institute of Technology the Center for World Health amp Medicine the Drugs for Ne-glected Diseases initiative Fundaccedilatildeo Oswaldo Cruz (Fiocruz) Massachu-setts Institute of Technology Medicines for Malaria Venture PATH the South African Medical Research Council the Swiss Tropical and Public Health Institute the University of California Berkeley and the University of Dundee (UK)

―WIPO ReSearch is a ground breaking example of how a multi-stakeholder coalition can put IP to work for social benefit said WIPO Director Gen-

eral Francis Gurry ―By joining WIPO ReSearch companies and researchers commit to making selected intellectual property assets available under roy-alty-free licenses to qualified researchers anywhere in the world for research and development on neglected tropical diseases malaria and tuberculosis This commitment should accelerate the development of medicines vaccines and diagnostics for these diseases

According to the World Health Organization (WHO) neglected tropical diseases today impair the lives of an estimated 1 billion people The WHO provides technical advice to WIPO on public health issues and research pri-orities as appropriate

By providing a searchable public database of available intellectual property assets information and resources WIPO ReSearch facilitates new partner-ships with organizations that conduct research on treatments for neglected tropical diseases malaria and tuberculosis

Membership in WIPO ReSearch as a user provider or supporter is open to all organizations that endorse adhere to and support the projectlsquos Guiding Principles These Guiding Principles include the commitment that IP li-censed via WIPO ReSearch will be licensed on a royalty-free basis for re-search and development on neglected tropical diseases in any country and on a royalty-free basis for sale of neglected tropical disease medicines in or to least developed countries

―The innovative pharmaceutical industry has an important part to play in addressing unmet medical needs and increasing access to our collective pro-prietary information will help advance research into treatment options for these underserved diseases said David Brennan CEO of AstraZeneca and President of the International Federation of Pharmaceutical Manufacturers amp Associations (IFPMA) ―WIPO ReSearch has the potential to make a real impact on global health which is why we are proud to make all patents owned by AstraZeneca available to this important initiative for promoting the research and development of treatments for neglected tropical diseases anywhere in the world

The WIPO ReSearch database includes a wide variety of contributions rele-vant to malaria tuberculosis and other neglected tropical diseases including individual compounds and associated data screening hits from compound libraries and expertise and know-how in pharmaceutical research and devel-opment In addition WIPO ReSearch offers the opportunity for neglected tropical disease researchers to work directly with scientists at pharmaceutical companies to advance RampD on these diseases As WIPO ReSearch moves forward offerings from current partners will continue to grow and new pro-viders are expected to join to add to the wealth of information compounds and services available

―NIH licenses its patents to enable the private sector to develop diagnostics therapeutics and devices that improve public health said National Insti-tutes of Health Director Francis S Collins MD PhD ―We want to ensure that our biological materials and patents covering treatments or vaccines for neglected tropical diseases as with all diseases are available as broadly as possible to speed the development of new products for people who are most burdened by these diseases and WIPO ReSearch helps us to do this

The founding eight pharmaceutical companies WIPO BVGH and NIH are joined by a distinguished group of globally recognized institutions as provid-ers potential users and supporters of WIPO ReSearch (see annex) BVGH will manage the WIPO ReSearch Partnership Hub which will facilitate rela-tionships between the pharmaceutical company providers and new users

―In our role as administrator of the WIPO ReSearch Partnership Hub BIO Ventures for Global Health is excited to bring these new opportunities to neglected disease researchers around the world to accelerate their work in this area of critical unmet need said Don Joseph Chief Operating Officer of BVGH ―As both present and future providers evaluate their internal data and IP with the goal to provide focused information which they believe will best serve the neglected tropical disease research and development commu-nity WIPO ReSearch will build on previous RampD investments to speed the development of drugs vaccines and diagnostics for the neglected diseases that disproportionately impact people living in resource-poor countries Source WIPO

Page 17: Bio Outsourcing Asia: Volume 1 Issue 3 2011.pdf · TB drug trials. Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies

17

18

Beyond Cost-Savings Hidden Considerations for Conducting Clinical Trials in Asia

By Jessica Liu General Manager ChinaNorth Asia INC Research and Garth Tierney Regional General Manager Australia and South East Asia INC Research

Abstract Pharmaceutical industry sponsors are well-aware of the cost bene-fits of conducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the pri-mary criteria by which sponsors should select the Asian regions in which they will conduct their clinical trials Other important considerations include disease incidence treatment standards minimizing variability maximizing protocol adherence regulatory factors politics cultural considerations and ethical concerns While global spending on medicines is expected to grow three percent to five percent over the next five years spending in the ―pharmerging markets is expected to double1 The desire to access this fast-growing consumer base is the primary reason large pharmaceutical companies are increasing their clinical presence in emerging countries like China according to a report from investment bank-ing firm William Blair2 But small to midsize drug makers are also moving into emerging markets driven primarily by cost differentials China can offer as much as a 50 percent cost advantage compared to the United States or Europe as can Thailand the Philippines or Malaysia Most countries in Asia are at least 20 percent to 30 percent more cost-efficient than their western counterparts although there are notable exceptions such as South Korea and Japan Pharmaceutical industry sponsors are well-aware of the cost benefits of con-ducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the primary criteria by which sponsors should select the Asian regions in which they will con-duct their clinical trials Other important considerations for conducting a trial in Asia include disease incidence and treatment standards the potential to minimize variability and maximize protocol adherence regulatory and political factors and cultural and ethical considerations Disease Incidence and Treatment Standards With more than four billion people Asia offers sponsors a deep pool from which to draw clinical trial participants Indeed for sponsors conducting late-stage clinical trials in indications such as diabetes or cardiovascular dis-ease which can require thousands of patients establishing Asian trial sites to tap into that pool is critical The key is determining which Asian countries will best match each triallsquos unique patient requirements For sponsors most concerned with enrolling large numbers of patients into a trial highly populous countries such as India China Indonesia Japan the Philippines Thailand and Malaysia may be the best fit A recent CRO survey revealed that China is the leader in patient recruitment for the Asia-Pacific region followed by India and South Korea3 However sponsors need to be aware that the region is still expanding and a vast population does not equate to vast number of ICH GCP trained sites in the larger countries of China and India This can be a limiting factor in gaining access to the best sites for certain indications If on the other hand a sponsor is conducting a Phase I trial they should know that certain Asian countries have specific regulatory requirements for approval of a clinical trial application (CTA) that can add complexity to the process Others like Australia specialize in Phase I studies thanks to their fast and straightforward approval processes high-quality clinical practices and variety of many academic and commercial clinical trials centers4 Selecting an appropriate region for trial sites also depends on the incidence of the target disease in each countrylsquos population Highly-developed Asian countries have a higher incidence of diseases common in the West such as diabetes and cardiovascular disease while diseases such as tuberculosis are more common in Southeast Asia Some countries like India have diverse patient populations afflicted with diseases of both the developing and devel-oped world

When it comes to standards of care certain diseases like breast cancer lung cancer and diabetes are treated in much the same way in Asia as they would be treated in the Western world But for many other indications medical practice standards differ both from East to West and between the different Asian regions Sponsors seeking to meet specific market regulatory approval will need to mirror Western standards-of-care and as such should consider focusing trial sites to Australia New Zealand Singapore Taiwan Hong Kong and South Korea But differing standards of care can also provide unique opportunities Asia offers relatively more patients for first-line and second-line cancer drug evaluation than the West where such patient stores have been largely exhausted Risk Mitigation Sponsors should be prepared that some Asian trial sites ndash even those that have adapted Western-style medical practices ndash may require more assistance when it comes to following protocol and differentiating between medical practice and clinical research Not all Asian sites will have the infrastructure for a clinical trial A good CRO partner will work with a sponsor and site investigators to identify any infrastructure gap ndash such as a dedicated com-puter fax or freezer ndash and develop plans to ensure sites have the essentials to deliver a study efficiently Data integrity is another area that sponsors and CROs need to focus atten-tion It is critical to reduce variability by ensuring all monitoring and site staff are well trained Monitors need to understand how to identify and pro-actively resolve issues early on to minimize long-term issues with patient recruitment and data collection They should understand how to recognize early warning signals and not overreact to red herrings Investigators and site monitors also need to be trained in adverse event reporting to ensure that they meet local regional and global clinical trial safety reporting Sponsors must ensure monitoring visits are being conducted regularly as such visits make it more likely that recruitment and data integrity issues will be detected early and managed in a timely and effective manner Equally im-portant site staff needs to be as consistent as possible Finally sponsors need to implement a proven system for data reporting as variability in the data collection process may decrease the evaluable patient pool in the trial decreasing the sponsorlsquos chances to establish statistical sig-nificance or detect a rare safety signal Regulatory and Political Factors While regulatory bodies in South Korea and Taiwan as well as in Singapore have adopted an FDA-based approach each Asian country has its own regulatory idiosyncrasies In China for example reviews take on a project-based nature and sponsors should never assume that what worked in one application will be directly applicable to another No matter how harmo-nized Asia may appear the cookie-cutter approach simply doesnlsquot work However the fact that regulatory policies are still evolving in certain Asian countries provides a unique opportunity to sponsors the opportunity to in-fluence those policies There are no formal guidances or rules covering this topic but it is a real opportunity The recent economic downturn has prompted finance ministers in many countries to more closely analyze the cost of healthcare and they are realizing that good drugs can decrease their overall costs To ensure new drugs are available in their countries they have become increasingly eager to support clinical trials and they are engaging in conversations with sponsors about how approval pathways might be con-structed that take healthcare economics into consideration For example if a sponsor works closely with regulatory agencies to design the right preclinical and Phase I trials could a single Phase IIIII trial be sufficient for approval in some indications Are so many repetitive studies really necessary Is the requirement or guidance relevant to the current technology If a sponsor can prove to the government that a certain disease is currently costing 50 cents per person per day to treat and a new drug would change treatment paradigms and reduce that cost to a penny that is a compelling argument Not compelling enough to compromise safety or effi-cacy but compelling enough to expedite things along by partnering to agree upon the most appropriate pathway to approval While some regulatory agencies may not be as comfortable with the idea of allowing more flexibility and customization in the clinical trial design many are open to reducing bu-reaucracy and the associated time delays for CTA approval ndash particularly when there is potential to significantly impact health economics Govern-ments may provide commercialization support including funding to enable

19

development of new technologies and testing methods There may also be a higher priority given to certain CTA applications in the review queue Australia and Singapore have adopted a more simplified regulatory process and offer a notification scheme rather than formal review by the regulator South Korea and Taiwan are working to ease regulations and facilitate pro-tocol reviews Countries such as China have lengthy regulatory approval processes however there are some early indications that this may be de-creasing India is currently experiencing slower regulatory paths Interest-ingly some Asia Pacific countries that have historically been considered ―easy targets for clinical trials are increasing their regulations While there is much potential to collaborate with regulatory bodies in Asia these are not the only government agencies with which a sponsor must work Each country has its own policies on insurance regulations import licenses and other factors that affect a sponsorlsquos ability to establish and run clinical trial sites Each should be reviewed before selecting countries in which to establish trial sites Cultural and Ethical Considerations Language barriers can be easily overcome by CRO partners with offices across Asia and they are the least of a sponsorlsquos worries when it comes to cultural differences More pressing are issues such as the fact that some Asian researchers may believe that their participation in a trial gives them the right to publish data on their findings while sponsors require at least some degree of control over the publication of trial data Such issues are best managed by thorough communication prior to the start of enrolment In certain countries cultural factors may positively impact a trial Ethical factors may also weigh on a sponsorlsquos decision to conduct trials in certain Asian countries There are certain diseases that present a serious unmet medical need specifically within Asian populations such as foot-and-mouth disease and such indications obviously lend themselves to Asian clinical tri-als Yet if a sponsor has no plans to launch a drug in certain Asian countries perhaps because the populations of those countries would not be able to afford the drug then conducting clinical research in those countries may present ethical challenges For the most part however sponsors are eager to launch their drugs into the rapidly growing Asian healthcare markets and Asian clinical trials are necessary to support this endeavour As mentioned initially the cost advan-tages of conducting clinical trials in Asia cannot be ignored as both large and small companies face pressures on their bottom lines But while costs are important they are not the only consideration About the Authors Jessica Liu MD is the general manager for Clinical Operations in China and North Asia at INC Research She previously managed international pro-jects out of the European headquarters office for a global CRO in Brussels Belgium Prior to that she worked for 15 years in the Chinese affiliates of several global pharmaceutical companies overseeing clinical operations pro-ject management and medical affairs She conducted and managed Phase I-IV clinical studies across multiple therapeutic areas Dr Liu started her ca-reer as a resident physician in the endocrinology Department of the Peking Union Medical College Hospital (PUMCH) in Beijing China She received her Medical Doctorate from the University of Beijing (China) and has a Di-ploma in Pharmaceutical Medicine from the University of Basel (Switzerland) Dr Liu is based in Beijing She can be reached at jialiuincresearchcom Garth Tierney is the regional general manager for Australia and South East Asia for INC Research Garth previously founded and managed Trident Clinical Research a CRO based throughout Australia New Zealand and In-dia After 14 years of operation Trident was acquired by INC Research in June 2011 Prior to founding and managing Trident Clinical Research Garth worked for 8 years in the clinical research industry in various senior manage-ment and operational management roles across several companies including a global CRO an Australian pharmaceutical company and two global phar-maceutical companies Garth has a pharmacology (University of NSW) and business administration (University of Adelaide) background and worked in hypertension research for several years before joining the pharmaceutical industry During this time Garth published various papers and won the Whelan prize (awarded by ASCEPT) He can be reached at gtierneyincresearchcom

References 1 IMS IMS Institute Forecasts Global Spending on Medicines to Reach

Nearly $11 Trillion by 2015 May 18 2011 2 Wm Blair Pharmaceutical Outsourcing Industry Analysis Jun 10

2010 3 CyberMedia Research-BioSpectrum Asia-Pacific CRO Survey 2011 4 Clinical Trials Action Group Report Commonwealth of Australia

2011 CPTR Yields Progress New Six-Way Agreement has Goal to Speed Development of TB Drug Combinations November 11 2011 The Critical Path to TB Drug Regimens (CPTR) announced this November an innovative agreement between AstraZeneca Bayer Sanofi Tibotec TB Alliance and the World Health Organization to share information on tuber-culosis (TB) compounds within their respective drug pipelines to quickly identify and work together to develop the most promising TB drug regimen regardless of sponsor The partnership facilitates a more collaborative ap-proach to TB drug development with the objective to dramatically speed the development of shorter safer and more effective multi-drug treatments that are urgently needed to control the global TB pandemic The agreement will enable information-sharing around scientific and clinical data on TB compounds in clinical development By sharing data partners can identify opportunities to test their compounds in combination speeding availability of future TB regimens The collaboration includes the majority of global sponsors with TB drugs in clinical development Under the agree-ment if two or more organizations choose to work together to further de-velop a regimen they will enter into a separate arrangement that defines the rights and responsibilities of each party CPTR is working closely with regulatory scientists at the US Food and Drug Administration European Medicines Agency and other regulatory bodies in China India and some countries in Africa to develop the tools that are needed to allow testing of new TB drugs in combination cutting years off the development timeline Under the leadership of the Critical Path Institute CPTRlsquos Regulatory Science Consortium focuses on establishing consensus on preferred standards methods and tools for developing new TB drug regimens and obtaining official acceptance from international regulatory authorities Source TB Alliance Pfizer Establishes the Cambridge Research Center September 01 2011 Pfizer Inc recently announced it has entered into a 10-year lease agreement with the Massachusetts Institute of Technology (MIT) for more than 180000 square feet in a new building under development in Cambridge Massachusetts Located at 610 Main Street South in Kendall Square the new site will be the future location of Pfizerlsquos Cardiovascular Metabolic and En-docrine Disease (CVMED) and Neuroscience Research Units The reloca-tion of the two Research Units will substantially boost Pfizerlsquos footprint in Cambridge making it the second largest biopharmaceutical company in Massachusetts in terms of jobs ―We were very deliberate in our choice to move to Cambridge MA as a key part of our RampD strategy By expanding our presence in one of the worldlsquos great centers of scientific and medical innovation we will provide the best environment for our researchers to invent the next generation of medicines in areas of greatest need such as Alzheimerlsquos disease schizophrenia diabe-tes and cardiovascular disease said Rod MacKenzie senior vice president and head of PharmaTherapeutics Research amp Development ―We intend to foster productive formal and informal collaborations between our drug dis-covery experts and the outstanding scientists of Cambridgelsquos world class institutions This is a very exciting period in Pfizer RampD Source Pfizer

20

21

Continued from page 19hellip UK Academia Given Access to Selected AstraZeneca Compounds December 11 2011 Following a unique landmark agreement between AstraZeneca and the UK Medical Research Council (MRC) a wide range of compounds will be made available to UK medical researchers next year In a new type of collabora-tion academia will be granted access to 22 clinical and preclinical com-pounds developed by AstraZeneca Though making individual compounds available to external academic investigators is not unusual the breadth and open-innovation nature of this collaboration is unique because it provides unprecedented access to well characterised clinical and preclinical candidate molecules to investigators across all UK academic institutions There is significant unmet need in diseases both within and outside Astra-Zenecalsquos current research focus This collaboration builds on the sizable in-vestment made in developing candidate drugs within AstraZeneca by help-ing researchers to explore their potential more broadly with the hope that they will find new future medicines It also helps AstraZeneca explore areas of unmet patient need beyond its current disease area focus leveraging great external science in a way that is highly flexible and cost effective The New Opportunities Innovative Medicines Unit (iMed) in AstraZeneca has been central in establishing this research collaboration with the MRC and has acted as the interface with the other AstraZeneca iMeds to agree which compounds would be eligible Clive Morris VP New Opportunities iMed said that ―This Open Innova-tionlsquo approach brings together the strengths of AstraZeneca the MRC and UK Academia into what I hope will be a really potent mix bringing forward really exciting new ideas that could transform our understanding of some diseases It highlights an openness to new scientific thinking and also places external scientific collaboration right at the heart of what we do It is also an excellent way to broaden our portfolio of activities into new diseases for As-traZeneca leveraging the wealth of expertise across UK academia AstraZeneca and the MRC will invite preclinical and clinical research pro-posals from across the UK academic community to investigate the com-pounds in a range of diseases with a view to finding new treatment oppor-tunities AstraZeneca will work with the academic collaborators to develop the best scientific proposals and the MRC will select the highest quality pro-posals for funding awarding up to pound10 million in total to fund the success-ful proposals The successful applicants will then work collaboratively with AstraZeneca to deliver the studies David Brennan AstraZenecalsquos Chief Executive Officer said ―Innovative collaborations are playing a crucial role in finding ways to unlock the poten-tial of new treatments The UK has a strong heritage of research excellence in life sciences We hope that in sharing these valuable compounds with aca-demic scientists through the MRC new discoveries will be made by explor-ing additional uses of these compounds Source AstraZeneca WIPO ReSearch A Neglected Tropical Diseases Initiative October 26 2011 The World Intellectual Property Organization (WIPO) in an unprecedented collaboration with leading pharmaceutical companies and BIO Ventures for Global Health (BVGH) recently launched the WIPO Re Search a new consortium where public and private sector organizations share valuable in-tellectual property (IP) and expertise with the global health research commu-nity to promote development of new drugs vaccines and diagnostics to treat neglected tropical diseases malaria and tuberculosis In WIPO ReSearch Alnylam Pharmaceuticals AstraZeneca Eisai GlaxoS-mithKline MSD1 Novartis Pfizer and Sanofi are collaborating with WIPO BVGH the US National Institutes of Health (NIH) and multiple non-profit research organizations These include the California Institute of Technology the Center for World Health amp Medicine the Drugs for Ne-glected Diseases initiative Fundaccedilatildeo Oswaldo Cruz (Fiocruz) Massachu-setts Institute of Technology Medicines for Malaria Venture PATH the South African Medical Research Council the Swiss Tropical and Public Health Institute the University of California Berkeley and the University of Dundee (UK)

―WIPO ReSearch is a ground breaking example of how a multi-stakeholder coalition can put IP to work for social benefit said WIPO Director Gen-

eral Francis Gurry ―By joining WIPO ReSearch companies and researchers commit to making selected intellectual property assets available under roy-alty-free licenses to qualified researchers anywhere in the world for research and development on neglected tropical diseases malaria and tuberculosis This commitment should accelerate the development of medicines vaccines and diagnostics for these diseases

According to the World Health Organization (WHO) neglected tropical diseases today impair the lives of an estimated 1 billion people The WHO provides technical advice to WIPO on public health issues and research pri-orities as appropriate

By providing a searchable public database of available intellectual property assets information and resources WIPO ReSearch facilitates new partner-ships with organizations that conduct research on treatments for neglected tropical diseases malaria and tuberculosis

Membership in WIPO ReSearch as a user provider or supporter is open to all organizations that endorse adhere to and support the projectlsquos Guiding Principles These Guiding Principles include the commitment that IP li-censed via WIPO ReSearch will be licensed on a royalty-free basis for re-search and development on neglected tropical diseases in any country and on a royalty-free basis for sale of neglected tropical disease medicines in or to least developed countries

―The innovative pharmaceutical industry has an important part to play in addressing unmet medical needs and increasing access to our collective pro-prietary information will help advance research into treatment options for these underserved diseases said David Brennan CEO of AstraZeneca and President of the International Federation of Pharmaceutical Manufacturers amp Associations (IFPMA) ―WIPO ReSearch has the potential to make a real impact on global health which is why we are proud to make all patents owned by AstraZeneca available to this important initiative for promoting the research and development of treatments for neglected tropical diseases anywhere in the world

The WIPO ReSearch database includes a wide variety of contributions rele-vant to malaria tuberculosis and other neglected tropical diseases including individual compounds and associated data screening hits from compound libraries and expertise and know-how in pharmaceutical research and devel-opment In addition WIPO ReSearch offers the opportunity for neglected tropical disease researchers to work directly with scientists at pharmaceutical companies to advance RampD on these diseases As WIPO ReSearch moves forward offerings from current partners will continue to grow and new pro-viders are expected to join to add to the wealth of information compounds and services available

―NIH licenses its patents to enable the private sector to develop diagnostics therapeutics and devices that improve public health said National Insti-tutes of Health Director Francis S Collins MD PhD ―We want to ensure that our biological materials and patents covering treatments or vaccines for neglected tropical diseases as with all diseases are available as broadly as possible to speed the development of new products for people who are most burdened by these diseases and WIPO ReSearch helps us to do this

The founding eight pharmaceutical companies WIPO BVGH and NIH are joined by a distinguished group of globally recognized institutions as provid-ers potential users and supporters of WIPO ReSearch (see annex) BVGH will manage the WIPO ReSearch Partnership Hub which will facilitate rela-tionships between the pharmaceutical company providers and new users

―In our role as administrator of the WIPO ReSearch Partnership Hub BIO Ventures for Global Health is excited to bring these new opportunities to neglected disease researchers around the world to accelerate their work in this area of critical unmet need said Don Joseph Chief Operating Officer of BVGH ―As both present and future providers evaluate their internal data and IP with the goal to provide focused information which they believe will best serve the neglected tropical disease research and development commu-nity WIPO ReSearch will build on previous RampD investments to speed the development of drugs vaccines and diagnostics for the neglected diseases that disproportionately impact people living in resource-poor countries Source WIPO

Page 18: Bio Outsourcing Asia: Volume 1 Issue 3 2011.pdf · TB drug trials. Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies

18

Beyond Cost-Savings Hidden Considerations for Conducting Clinical Trials in Asia

By Jessica Liu General Manager ChinaNorth Asia INC Research and Garth Tierney Regional General Manager Australia and South East Asia INC Research

Abstract Pharmaceutical industry sponsors are well-aware of the cost bene-fits of conducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the pri-mary criteria by which sponsors should select the Asian regions in which they will conduct their clinical trials Other important considerations include disease incidence treatment standards minimizing variability maximizing protocol adherence regulatory factors politics cultural considerations and ethical concerns While global spending on medicines is expected to grow three percent to five percent over the next five years spending in the ―pharmerging markets is expected to double1 The desire to access this fast-growing consumer base is the primary reason large pharmaceutical companies are increasing their clinical presence in emerging countries like China according to a report from investment bank-ing firm William Blair2 But small to midsize drug makers are also moving into emerging markets driven primarily by cost differentials China can offer as much as a 50 percent cost advantage compared to the United States or Europe as can Thailand the Philippines or Malaysia Most countries in Asia are at least 20 percent to 30 percent more cost-efficient than their western counterparts although there are notable exceptions such as South Korea and Japan Pharmaceutical industry sponsors are well-aware of the cost benefits of con-ducting clinical trials in various Asian countries and they are also well aware of the future potential healthcare consumption of Asian patients What they may not realize however is that these are not necessarily the primary criteria by which sponsors should select the Asian regions in which they will con-duct their clinical trials Other important considerations for conducting a trial in Asia include disease incidence and treatment standards the potential to minimize variability and maximize protocol adherence regulatory and political factors and cultural and ethical considerations Disease Incidence and Treatment Standards With more than four billion people Asia offers sponsors a deep pool from which to draw clinical trial participants Indeed for sponsors conducting late-stage clinical trials in indications such as diabetes or cardiovascular dis-ease which can require thousands of patients establishing Asian trial sites to tap into that pool is critical The key is determining which Asian countries will best match each triallsquos unique patient requirements For sponsors most concerned with enrolling large numbers of patients into a trial highly populous countries such as India China Indonesia Japan the Philippines Thailand and Malaysia may be the best fit A recent CRO survey revealed that China is the leader in patient recruitment for the Asia-Pacific region followed by India and South Korea3 However sponsors need to be aware that the region is still expanding and a vast population does not equate to vast number of ICH GCP trained sites in the larger countries of China and India This can be a limiting factor in gaining access to the best sites for certain indications If on the other hand a sponsor is conducting a Phase I trial they should know that certain Asian countries have specific regulatory requirements for approval of a clinical trial application (CTA) that can add complexity to the process Others like Australia specialize in Phase I studies thanks to their fast and straightforward approval processes high-quality clinical practices and variety of many academic and commercial clinical trials centers4 Selecting an appropriate region for trial sites also depends on the incidence of the target disease in each countrylsquos population Highly-developed Asian countries have a higher incidence of diseases common in the West such as diabetes and cardiovascular disease while diseases such as tuberculosis are more common in Southeast Asia Some countries like India have diverse patient populations afflicted with diseases of both the developing and devel-oped world

When it comes to standards of care certain diseases like breast cancer lung cancer and diabetes are treated in much the same way in Asia as they would be treated in the Western world But for many other indications medical practice standards differ both from East to West and between the different Asian regions Sponsors seeking to meet specific market regulatory approval will need to mirror Western standards-of-care and as such should consider focusing trial sites to Australia New Zealand Singapore Taiwan Hong Kong and South Korea But differing standards of care can also provide unique opportunities Asia offers relatively more patients for first-line and second-line cancer drug evaluation than the West where such patient stores have been largely exhausted Risk Mitigation Sponsors should be prepared that some Asian trial sites ndash even those that have adapted Western-style medical practices ndash may require more assistance when it comes to following protocol and differentiating between medical practice and clinical research Not all Asian sites will have the infrastructure for a clinical trial A good CRO partner will work with a sponsor and site investigators to identify any infrastructure gap ndash such as a dedicated com-puter fax or freezer ndash and develop plans to ensure sites have the essentials to deliver a study efficiently Data integrity is another area that sponsors and CROs need to focus atten-tion It is critical to reduce variability by ensuring all monitoring and site staff are well trained Monitors need to understand how to identify and pro-actively resolve issues early on to minimize long-term issues with patient recruitment and data collection They should understand how to recognize early warning signals and not overreact to red herrings Investigators and site monitors also need to be trained in adverse event reporting to ensure that they meet local regional and global clinical trial safety reporting Sponsors must ensure monitoring visits are being conducted regularly as such visits make it more likely that recruitment and data integrity issues will be detected early and managed in a timely and effective manner Equally im-portant site staff needs to be as consistent as possible Finally sponsors need to implement a proven system for data reporting as variability in the data collection process may decrease the evaluable patient pool in the trial decreasing the sponsorlsquos chances to establish statistical sig-nificance or detect a rare safety signal Regulatory and Political Factors While regulatory bodies in South Korea and Taiwan as well as in Singapore have adopted an FDA-based approach each Asian country has its own regulatory idiosyncrasies In China for example reviews take on a project-based nature and sponsors should never assume that what worked in one application will be directly applicable to another No matter how harmo-nized Asia may appear the cookie-cutter approach simply doesnlsquot work However the fact that regulatory policies are still evolving in certain Asian countries provides a unique opportunity to sponsors the opportunity to in-fluence those policies There are no formal guidances or rules covering this topic but it is a real opportunity The recent economic downturn has prompted finance ministers in many countries to more closely analyze the cost of healthcare and they are realizing that good drugs can decrease their overall costs To ensure new drugs are available in their countries they have become increasingly eager to support clinical trials and they are engaging in conversations with sponsors about how approval pathways might be con-structed that take healthcare economics into consideration For example if a sponsor works closely with regulatory agencies to design the right preclinical and Phase I trials could a single Phase IIIII trial be sufficient for approval in some indications Are so many repetitive studies really necessary Is the requirement or guidance relevant to the current technology If a sponsor can prove to the government that a certain disease is currently costing 50 cents per person per day to treat and a new drug would change treatment paradigms and reduce that cost to a penny that is a compelling argument Not compelling enough to compromise safety or effi-cacy but compelling enough to expedite things along by partnering to agree upon the most appropriate pathway to approval While some regulatory agencies may not be as comfortable with the idea of allowing more flexibility and customization in the clinical trial design many are open to reducing bu-reaucracy and the associated time delays for CTA approval ndash particularly when there is potential to significantly impact health economics Govern-ments may provide commercialization support including funding to enable

19

development of new technologies and testing methods There may also be a higher priority given to certain CTA applications in the review queue Australia and Singapore have adopted a more simplified regulatory process and offer a notification scheme rather than formal review by the regulator South Korea and Taiwan are working to ease regulations and facilitate pro-tocol reviews Countries such as China have lengthy regulatory approval processes however there are some early indications that this may be de-creasing India is currently experiencing slower regulatory paths Interest-ingly some Asia Pacific countries that have historically been considered ―easy targets for clinical trials are increasing their regulations While there is much potential to collaborate with regulatory bodies in Asia these are not the only government agencies with which a sponsor must work Each country has its own policies on insurance regulations import licenses and other factors that affect a sponsorlsquos ability to establish and run clinical trial sites Each should be reviewed before selecting countries in which to establish trial sites Cultural and Ethical Considerations Language barriers can be easily overcome by CRO partners with offices across Asia and they are the least of a sponsorlsquos worries when it comes to cultural differences More pressing are issues such as the fact that some Asian researchers may believe that their participation in a trial gives them the right to publish data on their findings while sponsors require at least some degree of control over the publication of trial data Such issues are best managed by thorough communication prior to the start of enrolment In certain countries cultural factors may positively impact a trial Ethical factors may also weigh on a sponsorlsquos decision to conduct trials in certain Asian countries There are certain diseases that present a serious unmet medical need specifically within Asian populations such as foot-and-mouth disease and such indications obviously lend themselves to Asian clinical tri-als Yet if a sponsor has no plans to launch a drug in certain Asian countries perhaps because the populations of those countries would not be able to afford the drug then conducting clinical research in those countries may present ethical challenges For the most part however sponsors are eager to launch their drugs into the rapidly growing Asian healthcare markets and Asian clinical trials are necessary to support this endeavour As mentioned initially the cost advan-tages of conducting clinical trials in Asia cannot be ignored as both large and small companies face pressures on their bottom lines But while costs are important they are not the only consideration About the Authors Jessica Liu MD is the general manager for Clinical Operations in China and North Asia at INC Research She previously managed international pro-jects out of the European headquarters office for a global CRO in Brussels Belgium Prior to that she worked for 15 years in the Chinese affiliates of several global pharmaceutical companies overseeing clinical operations pro-ject management and medical affairs She conducted and managed Phase I-IV clinical studies across multiple therapeutic areas Dr Liu started her ca-reer as a resident physician in the endocrinology Department of the Peking Union Medical College Hospital (PUMCH) in Beijing China She received her Medical Doctorate from the University of Beijing (China) and has a Di-ploma in Pharmaceutical Medicine from the University of Basel (Switzerland) Dr Liu is based in Beijing She can be reached at jialiuincresearchcom Garth Tierney is the regional general manager for Australia and South East Asia for INC Research Garth previously founded and managed Trident Clinical Research a CRO based throughout Australia New Zealand and In-dia After 14 years of operation Trident was acquired by INC Research in June 2011 Prior to founding and managing Trident Clinical Research Garth worked for 8 years in the clinical research industry in various senior manage-ment and operational management roles across several companies including a global CRO an Australian pharmaceutical company and two global phar-maceutical companies Garth has a pharmacology (University of NSW) and business administration (University of Adelaide) background and worked in hypertension research for several years before joining the pharmaceutical industry During this time Garth published various papers and won the Whelan prize (awarded by ASCEPT) He can be reached at gtierneyincresearchcom

References 1 IMS IMS Institute Forecasts Global Spending on Medicines to Reach

Nearly $11 Trillion by 2015 May 18 2011 2 Wm Blair Pharmaceutical Outsourcing Industry Analysis Jun 10

2010 3 CyberMedia Research-BioSpectrum Asia-Pacific CRO Survey 2011 4 Clinical Trials Action Group Report Commonwealth of Australia

2011 CPTR Yields Progress New Six-Way Agreement has Goal to Speed Development of TB Drug Combinations November 11 2011 The Critical Path to TB Drug Regimens (CPTR) announced this November an innovative agreement between AstraZeneca Bayer Sanofi Tibotec TB Alliance and the World Health Organization to share information on tuber-culosis (TB) compounds within their respective drug pipelines to quickly identify and work together to develop the most promising TB drug regimen regardless of sponsor The partnership facilitates a more collaborative ap-proach to TB drug development with the objective to dramatically speed the development of shorter safer and more effective multi-drug treatments that are urgently needed to control the global TB pandemic The agreement will enable information-sharing around scientific and clinical data on TB compounds in clinical development By sharing data partners can identify opportunities to test their compounds in combination speeding availability of future TB regimens The collaboration includes the majority of global sponsors with TB drugs in clinical development Under the agree-ment if two or more organizations choose to work together to further de-velop a regimen they will enter into a separate arrangement that defines the rights and responsibilities of each party CPTR is working closely with regulatory scientists at the US Food and Drug Administration European Medicines Agency and other regulatory bodies in China India and some countries in Africa to develop the tools that are needed to allow testing of new TB drugs in combination cutting years off the development timeline Under the leadership of the Critical Path Institute CPTRlsquos Regulatory Science Consortium focuses on establishing consensus on preferred standards methods and tools for developing new TB drug regimens and obtaining official acceptance from international regulatory authorities Source TB Alliance Pfizer Establishes the Cambridge Research Center September 01 2011 Pfizer Inc recently announced it has entered into a 10-year lease agreement with the Massachusetts Institute of Technology (MIT) for more than 180000 square feet in a new building under development in Cambridge Massachusetts Located at 610 Main Street South in Kendall Square the new site will be the future location of Pfizerlsquos Cardiovascular Metabolic and En-docrine Disease (CVMED) and Neuroscience Research Units The reloca-tion of the two Research Units will substantially boost Pfizerlsquos footprint in Cambridge making it the second largest biopharmaceutical company in Massachusetts in terms of jobs ―We were very deliberate in our choice to move to Cambridge MA as a key part of our RampD strategy By expanding our presence in one of the worldlsquos great centers of scientific and medical innovation we will provide the best environment for our researchers to invent the next generation of medicines in areas of greatest need such as Alzheimerlsquos disease schizophrenia diabe-tes and cardiovascular disease said Rod MacKenzie senior vice president and head of PharmaTherapeutics Research amp Development ―We intend to foster productive formal and informal collaborations between our drug dis-covery experts and the outstanding scientists of Cambridgelsquos world class institutions This is a very exciting period in Pfizer RampD Source Pfizer

20

21

Continued from page 19hellip UK Academia Given Access to Selected AstraZeneca Compounds December 11 2011 Following a unique landmark agreement between AstraZeneca and the UK Medical Research Council (MRC) a wide range of compounds will be made available to UK medical researchers next year In a new type of collabora-tion academia will be granted access to 22 clinical and preclinical com-pounds developed by AstraZeneca Though making individual compounds available to external academic investigators is not unusual the breadth and open-innovation nature of this collaboration is unique because it provides unprecedented access to well characterised clinical and preclinical candidate molecules to investigators across all UK academic institutions There is significant unmet need in diseases both within and outside Astra-Zenecalsquos current research focus This collaboration builds on the sizable in-vestment made in developing candidate drugs within AstraZeneca by help-ing researchers to explore their potential more broadly with the hope that they will find new future medicines It also helps AstraZeneca explore areas of unmet patient need beyond its current disease area focus leveraging great external science in a way that is highly flexible and cost effective The New Opportunities Innovative Medicines Unit (iMed) in AstraZeneca has been central in establishing this research collaboration with the MRC and has acted as the interface with the other AstraZeneca iMeds to agree which compounds would be eligible Clive Morris VP New Opportunities iMed said that ―This Open Innova-tionlsquo approach brings together the strengths of AstraZeneca the MRC and UK Academia into what I hope will be a really potent mix bringing forward really exciting new ideas that could transform our understanding of some diseases It highlights an openness to new scientific thinking and also places external scientific collaboration right at the heart of what we do It is also an excellent way to broaden our portfolio of activities into new diseases for As-traZeneca leveraging the wealth of expertise across UK academia AstraZeneca and the MRC will invite preclinical and clinical research pro-posals from across the UK academic community to investigate the com-pounds in a range of diseases with a view to finding new treatment oppor-tunities AstraZeneca will work with the academic collaborators to develop the best scientific proposals and the MRC will select the highest quality pro-posals for funding awarding up to pound10 million in total to fund the success-ful proposals The successful applicants will then work collaboratively with AstraZeneca to deliver the studies David Brennan AstraZenecalsquos Chief Executive Officer said ―Innovative collaborations are playing a crucial role in finding ways to unlock the poten-tial of new treatments The UK has a strong heritage of research excellence in life sciences We hope that in sharing these valuable compounds with aca-demic scientists through the MRC new discoveries will be made by explor-ing additional uses of these compounds Source AstraZeneca WIPO ReSearch A Neglected Tropical Diseases Initiative October 26 2011 The World Intellectual Property Organization (WIPO) in an unprecedented collaboration with leading pharmaceutical companies and BIO Ventures for Global Health (BVGH) recently launched the WIPO Re Search a new consortium where public and private sector organizations share valuable in-tellectual property (IP) and expertise with the global health research commu-nity to promote development of new drugs vaccines and diagnostics to treat neglected tropical diseases malaria and tuberculosis In WIPO ReSearch Alnylam Pharmaceuticals AstraZeneca Eisai GlaxoS-mithKline MSD1 Novartis Pfizer and Sanofi are collaborating with WIPO BVGH the US National Institutes of Health (NIH) and multiple non-profit research organizations These include the California Institute of Technology the Center for World Health amp Medicine the Drugs for Ne-glected Diseases initiative Fundaccedilatildeo Oswaldo Cruz (Fiocruz) Massachu-setts Institute of Technology Medicines for Malaria Venture PATH the South African Medical Research Council the Swiss Tropical and Public Health Institute the University of California Berkeley and the University of Dundee (UK)

―WIPO ReSearch is a ground breaking example of how a multi-stakeholder coalition can put IP to work for social benefit said WIPO Director Gen-

eral Francis Gurry ―By joining WIPO ReSearch companies and researchers commit to making selected intellectual property assets available under roy-alty-free licenses to qualified researchers anywhere in the world for research and development on neglected tropical diseases malaria and tuberculosis This commitment should accelerate the development of medicines vaccines and diagnostics for these diseases

According to the World Health Organization (WHO) neglected tropical diseases today impair the lives of an estimated 1 billion people The WHO provides technical advice to WIPO on public health issues and research pri-orities as appropriate

By providing a searchable public database of available intellectual property assets information and resources WIPO ReSearch facilitates new partner-ships with organizations that conduct research on treatments for neglected tropical diseases malaria and tuberculosis

Membership in WIPO ReSearch as a user provider or supporter is open to all organizations that endorse adhere to and support the projectlsquos Guiding Principles These Guiding Principles include the commitment that IP li-censed via WIPO ReSearch will be licensed on a royalty-free basis for re-search and development on neglected tropical diseases in any country and on a royalty-free basis for sale of neglected tropical disease medicines in or to least developed countries

―The innovative pharmaceutical industry has an important part to play in addressing unmet medical needs and increasing access to our collective pro-prietary information will help advance research into treatment options for these underserved diseases said David Brennan CEO of AstraZeneca and President of the International Federation of Pharmaceutical Manufacturers amp Associations (IFPMA) ―WIPO ReSearch has the potential to make a real impact on global health which is why we are proud to make all patents owned by AstraZeneca available to this important initiative for promoting the research and development of treatments for neglected tropical diseases anywhere in the world

The WIPO ReSearch database includes a wide variety of contributions rele-vant to malaria tuberculosis and other neglected tropical diseases including individual compounds and associated data screening hits from compound libraries and expertise and know-how in pharmaceutical research and devel-opment In addition WIPO ReSearch offers the opportunity for neglected tropical disease researchers to work directly with scientists at pharmaceutical companies to advance RampD on these diseases As WIPO ReSearch moves forward offerings from current partners will continue to grow and new pro-viders are expected to join to add to the wealth of information compounds and services available

―NIH licenses its patents to enable the private sector to develop diagnostics therapeutics and devices that improve public health said National Insti-tutes of Health Director Francis S Collins MD PhD ―We want to ensure that our biological materials and patents covering treatments or vaccines for neglected tropical diseases as with all diseases are available as broadly as possible to speed the development of new products for people who are most burdened by these diseases and WIPO ReSearch helps us to do this

The founding eight pharmaceutical companies WIPO BVGH and NIH are joined by a distinguished group of globally recognized institutions as provid-ers potential users and supporters of WIPO ReSearch (see annex) BVGH will manage the WIPO ReSearch Partnership Hub which will facilitate rela-tionships between the pharmaceutical company providers and new users

―In our role as administrator of the WIPO ReSearch Partnership Hub BIO Ventures for Global Health is excited to bring these new opportunities to neglected disease researchers around the world to accelerate their work in this area of critical unmet need said Don Joseph Chief Operating Officer of BVGH ―As both present and future providers evaluate their internal data and IP with the goal to provide focused information which they believe will best serve the neglected tropical disease research and development commu-nity WIPO ReSearch will build on previous RampD investments to speed the development of drugs vaccines and diagnostics for the neglected diseases that disproportionately impact people living in resource-poor countries Source WIPO

Page 19: Bio Outsourcing Asia: Volume 1 Issue 3 2011.pdf · TB drug trials. Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies

19

development of new technologies and testing methods There may also be a higher priority given to certain CTA applications in the review queue Australia and Singapore have adopted a more simplified regulatory process and offer a notification scheme rather than formal review by the regulator South Korea and Taiwan are working to ease regulations and facilitate pro-tocol reviews Countries such as China have lengthy regulatory approval processes however there are some early indications that this may be de-creasing India is currently experiencing slower regulatory paths Interest-ingly some Asia Pacific countries that have historically been considered ―easy targets for clinical trials are increasing their regulations While there is much potential to collaborate with regulatory bodies in Asia these are not the only government agencies with which a sponsor must work Each country has its own policies on insurance regulations import licenses and other factors that affect a sponsorlsquos ability to establish and run clinical trial sites Each should be reviewed before selecting countries in which to establish trial sites Cultural and Ethical Considerations Language barriers can be easily overcome by CRO partners with offices across Asia and they are the least of a sponsorlsquos worries when it comes to cultural differences More pressing are issues such as the fact that some Asian researchers may believe that their participation in a trial gives them the right to publish data on their findings while sponsors require at least some degree of control over the publication of trial data Such issues are best managed by thorough communication prior to the start of enrolment In certain countries cultural factors may positively impact a trial Ethical factors may also weigh on a sponsorlsquos decision to conduct trials in certain Asian countries There are certain diseases that present a serious unmet medical need specifically within Asian populations such as foot-and-mouth disease and such indications obviously lend themselves to Asian clinical tri-als Yet if a sponsor has no plans to launch a drug in certain Asian countries perhaps because the populations of those countries would not be able to afford the drug then conducting clinical research in those countries may present ethical challenges For the most part however sponsors are eager to launch their drugs into the rapidly growing Asian healthcare markets and Asian clinical trials are necessary to support this endeavour As mentioned initially the cost advan-tages of conducting clinical trials in Asia cannot be ignored as both large and small companies face pressures on their bottom lines But while costs are important they are not the only consideration About the Authors Jessica Liu MD is the general manager for Clinical Operations in China and North Asia at INC Research She previously managed international pro-jects out of the European headquarters office for a global CRO in Brussels Belgium Prior to that she worked for 15 years in the Chinese affiliates of several global pharmaceutical companies overseeing clinical operations pro-ject management and medical affairs She conducted and managed Phase I-IV clinical studies across multiple therapeutic areas Dr Liu started her ca-reer as a resident physician in the endocrinology Department of the Peking Union Medical College Hospital (PUMCH) in Beijing China She received her Medical Doctorate from the University of Beijing (China) and has a Di-ploma in Pharmaceutical Medicine from the University of Basel (Switzerland) Dr Liu is based in Beijing She can be reached at jialiuincresearchcom Garth Tierney is the regional general manager for Australia and South East Asia for INC Research Garth previously founded and managed Trident Clinical Research a CRO based throughout Australia New Zealand and In-dia After 14 years of operation Trident was acquired by INC Research in June 2011 Prior to founding and managing Trident Clinical Research Garth worked for 8 years in the clinical research industry in various senior manage-ment and operational management roles across several companies including a global CRO an Australian pharmaceutical company and two global phar-maceutical companies Garth has a pharmacology (University of NSW) and business administration (University of Adelaide) background and worked in hypertension research for several years before joining the pharmaceutical industry During this time Garth published various papers and won the Whelan prize (awarded by ASCEPT) He can be reached at gtierneyincresearchcom

References 1 IMS IMS Institute Forecasts Global Spending on Medicines to Reach

Nearly $11 Trillion by 2015 May 18 2011 2 Wm Blair Pharmaceutical Outsourcing Industry Analysis Jun 10

2010 3 CyberMedia Research-BioSpectrum Asia-Pacific CRO Survey 2011 4 Clinical Trials Action Group Report Commonwealth of Australia

2011 CPTR Yields Progress New Six-Way Agreement has Goal to Speed Development of TB Drug Combinations November 11 2011 The Critical Path to TB Drug Regimens (CPTR) announced this November an innovative agreement between AstraZeneca Bayer Sanofi Tibotec TB Alliance and the World Health Organization to share information on tuber-culosis (TB) compounds within their respective drug pipelines to quickly identify and work together to develop the most promising TB drug regimen regardless of sponsor The partnership facilitates a more collaborative ap-proach to TB drug development with the objective to dramatically speed the development of shorter safer and more effective multi-drug treatments that are urgently needed to control the global TB pandemic The agreement will enable information-sharing around scientific and clinical data on TB compounds in clinical development By sharing data partners can identify opportunities to test their compounds in combination speeding availability of future TB regimens The collaboration includes the majority of global sponsors with TB drugs in clinical development Under the agree-ment if two or more organizations choose to work together to further de-velop a regimen they will enter into a separate arrangement that defines the rights and responsibilities of each party CPTR is working closely with regulatory scientists at the US Food and Drug Administration European Medicines Agency and other regulatory bodies in China India and some countries in Africa to develop the tools that are needed to allow testing of new TB drugs in combination cutting years off the development timeline Under the leadership of the Critical Path Institute CPTRlsquos Regulatory Science Consortium focuses on establishing consensus on preferred standards methods and tools for developing new TB drug regimens and obtaining official acceptance from international regulatory authorities Source TB Alliance Pfizer Establishes the Cambridge Research Center September 01 2011 Pfizer Inc recently announced it has entered into a 10-year lease agreement with the Massachusetts Institute of Technology (MIT) for more than 180000 square feet in a new building under development in Cambridge Massachusetts Located at 610 Main Street South in Kendall Square the new site will be the future location of Pfizerlsquos Cardiovascular Metabolic and En-docrine Disease (CVMED) and Neuroscience Research Units The reloca-tion of the two Research Units will substantially boost Pfizerlsquos footprint in Cambridge making it the second largest biopharmaceutical company in Massachusetts in terms of jobs ―We were very deliberate in our choice to move to Cambridge MA as a key part of our RampD strategy By expanding our presence in one of the worldlsquos great centers of scientific and medical innovation we will provide the best environment for our researchers to invent the next generation of medicines in areas of greatest need such as Alzheimerlsquos disease schizophrenia diabe-tes and cardiovascular disease said Rod MacKenzie senior vice president and head of PharmaTherapeutics Research amp Development ―We intend to foster productive formal and informal collaborations between our drug dis-covery experts and the outstanding scientists of Cambridgelsquos world class institutions This is a very exciting period in Pfizer RampD Source Pfizer

20

21

Continued from page 19hellip UK Academia Given Access to Selected AstraZeneca Compounds December 11 2011 Following a unique landmark agreement between AstraZeneca and the UK Medical Research Council (MRC) a wide range of compounds will be made available to UK medical researchers next year In a new type of collabora-tion academia will be granted access to 22 clinical and preclinical com-pounds developed by AstraZeneca Though making individual compounds available to external academic investigators is not unusual the breadth and open-innovation nature of this collaboration is unique because it provides unprecedented access to well characterised clinical and preclinical candidate molecules to investigators across all UK academic institutions There is significant unmet need in diseases both within and outside Astra-Zenecalsquos current research focus This collaboration builds on the sizable in-vestment made in developing candidate drugs within AstraZeneca by help-ing researchers to explore their potential more broadly with the hope that they will find new future medicines It also helps AstraZeneca explore areas of unmet patient need beyond its current disease area focus leveraging great external science in a way that is highly flexible and cost effective The New Opportunities Innovative Medicines Unit (iMed) in AstraZeneca has been central in establishing this research collaboration with the MRC and has acted as the interface with the other AstraZeneca iMeds to agree which compounds would be eligible Clive Morris VP New Opportunities iMed said that ―This Open Innova-tionlsquo approach brings together the strengths of AstraZeneca the MRC and UK Academia into what I hope will be a really potent mix bringing forward really exciting new ideas that could transform our understanding of some diseases It highlights an openness to new scientific thinking and also places external scientific collaboration right at the heart of what we do It is also an excellent way to broaden our portfolio of activities into new diseases for As-traZeneca leveraging the wealth of expertise across UK academia AstraZeneca and the MRC will invite preclinical and clinical research pro-posals from across the UK academic community to investigate the com-pounds in a range of diseases with a view to finding new treatment oppor-tunities AstraZeneca will work with the academic collaborators to develop the best scientific proposals and the MRC will select the highest quality pro-posals for funding awarding up to pound10 million in total to fund the success-ful proposals The successful applicants will then work collaboratively with AstraZeneca to deliver the studies David Brennan AstraZenecalsquos Chief Executive Officer said ―Innovative collaborations are playing a crucial role in finding ways to unlock the poten-tial of new treatments The UK has a strong heritage of research excellence in life sciences We hope that in sharing these valuable compounds with aca-demic scientists through the MRC new discoveries will be made by explor-ing additional uses of these compounds Source AstraZeneca WIPO ReSearch A Neglected Tropical Diseases Initiative October 26 2011 The World Intellectual Property Organization (WIPO) in an unprecedented collaboration with leading pharmaceutical companies and BIO Ventures for Global Health (BVGH) recently launched the WIPO Re Search a new consortium where public and private sector organizations share valuable in-tellectual property (IP) and expertise with the global health research commu-nity to promote development of new drugs vaccines and diagnostics to treat neglected tropical diseases malaria and tuberculosis In WIPO ReSearch Alnylam Pharmaceuticals AstraZeneca Eisai GlaxoS-mithKline MSD1 Novartis Pfizer and Sanofi are collaborating with WIPO BVGH the US National Institutes of Health (NIH) and multiple non-profit research organizations These include the California Institute of Technology the Center for World Health amp Medicine the Drugs for Ne-glected Diseases initiative Fundaccedilatildeo Oswaldo Cruz (Fiocruz) Massachu-setts Institute of Technology Medicines for Malaria Venture PATH the South African Medical Research Council the Swiss Tropical and Public Health Institute the University of California Berkeley and the University of Dundee (UK)

―WIPO ReSearch is a ground breaking example of how a multi-stakeholder coalition can put IP to work for social benefit said WIPO Director Gen-

eral Francis Gurry ―By joining WIPO ReSearch companies and researchers commit to making selected intellectual property assets available under roy-alty-free licenses to qualified researchers anywhere in the world for research and development on neglected tropical diseases malaria and tuberculosis This commitment should accelerate the development of medicines vaccines and diagnostics for these diseases

According to the World Health Organization (WHO) neglected tropical diseases today impair the lives of an estimated 1 billion people The WHO provides technical advice to WIPO on public health issues and research pri-orities as appropriate

By providing a searchable public database of available intellectual property assets information and resources WIPO ReSearch facilitates new partner-ships with organizations that conduct research on treatments for neglected tropical diseases malaria and tuberculosis

Membership in WIPO ReSearch as a user provider or supporter is open to all organizations that endorse adhere to and support the projectlsquos Guiding Principles These Guiding Principles include the commitment that IP li-censed via WIPO ReSearch will be licensed on a royalty-free basis for re-search and development on neglected tropical diseases in any country and on a royalty-free basis for sale of neglected tropical disease medicines in or to least developed countries

―The innovative pharmaceutical industry has an important part to play in addressing unmet medical needs and increasing access to our collective pro-prietary information will help advance research into treatment options for these underserved diseases said David Brennan CEO of AstraZeneca and President of the International Federation of Pharmaceutical Manufacturers amp Associations (IFPMA) ―WIPO ReSearch has the potential to make a real impact on global health which is why we are proud to make all patents owned by AstraZeneca available to this important initiative for promoting the research and development of treatments for neglected tropical diseases anywhere in the world

The WIPO ReSearch database includes a wide variety of contributions rele-vant to malaria tuberculosis and other neglected tropical diseases including individual compounds and associated data screening hits from compound libraries and expertise and know-how in pharmaceutical research and devel-opment In addition WIPO ReSearch offers the opportunity for neglected tropical disease researchers to work directly with scientists at pharmaceutical companies to advance RampD on these diseases As WIPO ReSearch moves forward offerings from current partners will continue to grow and new pro-viders are expected to join to add to the wealth of information compounds and services available

―NIH licenses its patents to enable the private sector to develop diagnostics therapeutics and devices that improve public health said National Insti-tutes of Health Director Francis S Collins MD PhD ―We want to ensure that our biological materials and patents covering treatments or vaccines for neglected tropical diseases as with all diseases are available as broadly as possible to speed the development of new products for people who are most burdened by these diseases and WIPO ReSearch helps us to do this

The founding eight pharmaceutical companies WIPO BVGH and NIH are joined by a distinguished group of globally recognized institutions as provid-ers potential users and supporters of WIPO ReSearch (see annex) BVGH will manage the WIPO ReSearch Partnership Hub which will facilitate rela-tionships between the pharmaceutical company providers and new users

―In our role as administrator of the WIPO ReSearch Partnership Hub BIO Ventures for Global Health is excited to bring these new opportunities to neglected disease researchers around the world to accelerate their work in this area of critical unmet need said Don Joseph Chief Operating Officer of BVGH ―As both present and future providers evaluate their internal data and IP with the goal to provide focused information which they believe will best serve the neglected tropical disease research and development commu-nity WIPO ReSearch will build on previous RampD investments to speed the development of drugs vaccines and diagnostics for the neglected diseases that disproportionately impact people living in resource-poor countries Source WIPO

Page 20: Bio Outsourcing Asia: Volume 1 Issue 3 2011.pdf · TB drug trials. Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies

20

21

Continued from page 19hellip UK Academia Given Access to Selected AstraZeneca Compounds December 11 2011 Following a unique landmark agreement between AstraZeneca and the UK Medical Research Council (MRC) a wide range of compounds will be made available to UK medical researchers next year In a new type of collabora-tion academia will be granted access to 22 clinical and preclinical com-pounds developed by AstraZeneca Though making individual compounds available to external academic investigators is not unusual the breadth and open-innovation nature of this collaboration is unique because it provides unprecedented access to well characterised clinical and preclinical candidate molecules to investigators across all UK academic institutions There is significant unmet need in diseases both within and outside Astra-Zenecalsquos current research focus This collaboration builds on the sizable in-vestment made in developing candidate drugs within AstraZeneca by help-ing researchers to explore their potential more broadly with the hope that they will find new future medicines It also helps AstraZeneca explore areas of unmet patient need beyond its current disease area focus leveraging great external science in a way that is highly flexible and cost effective The New Opportunities Innovative Medicines Unit (iMed) in AstraZeneca has been central in establishing this research collaboration with the MRC and has acted as the interface with the other AstraZeneca iMeds to agree which compounds would be eligible Clive Morris VP New Opportunities iMed said that ―This Open Innova-tionlsquo approach brings together the strengths of AstraZeneca the MRC and UK Academia into what I hope will be a really potent mix bringing forward really exciting new ideas that could transform our understanding of some diseases It highlights an openness to new scientific thinking and also places external scientific collaboration right at the heart of what we do It is also an excellent way to broaden our portfolio of activities into new diseases for As-traZeneca leveraging the wealth of expertise across UK academia AstraZeneca and the MRC will invite preclinical and clinical research pro-posals from across the UK academic community to investigate the com-pounds in a range of diseases with a view to finding new treatment oppor-tunities AstraZeneca will work with the academic collaborators to develop the best scientific proposals and the MRC will select the highest quality pro-posals for funding awarding up to pound10 million in total to fund the success-ful proposals The successful applicants will then work collaboratively with AstraZeneca to deliver the studies David Brennan AstraZenecalsquos Chief Executive Officer said ―Innovative collaborations are playing a crucial role in finding ways to unlock the poten-tial of new treatments The UK has a strong heritage of research excellence in life sciences We hope that in sharing these valuable compounds with aca-demic scientists through the MRC new discoveries will be made by explor-ing additional uses of these compounds Source AstraZeneca WIPO ReSearch A Neglected Tropical Diseases Initiative October 26 2011 The World Intellectual Property Organization (WIPO) in an unprecedented collaboration with leading pharmaceutical companies and BIO Ventures for Global Health (BVGH) recently launched the WIPO Re Search a new consortium where public and private sector organizations share valuable in-tellectual property (IP) and expertise with the global health research commu-nity to promote development of new drugs vaccines and diagnostics to treat neglected tropical diseases malaria and tuberculosis In WIPO ReSearch Alnylam Pharmaceuticals AstraZeneca Eisai GlaxoS-mithKline MSD1 Novartis Pfizer and Sanofi are collaborating with WIPO BVGH the US National Institutes of Health (NIH) and multiple non-profit research organizations These include the California Institute of Technology the Center for World Health amp Medicine the Drugs for Ne-glected Diseases initiative Fundaccedilatildeo Oswaldo Cruz (Fiocruz) Massachu-setts Institute of Technology Medicines for Malaria Venture PATH the South African Medical Research Council the Swiss Tropical and Public Health Institute the University of California Berkeley and the University of Dundee (UK)

―WIPO ReSearch is a ground breaking example of how a multi-stakeholder coalition can put IP to work for social benefit said WIPO Director Gen-

eral Francis Gurry ―By joining WIPO ReSearch companies and researchers commit to making selected intellectual property assets available under roy-alty-free licenses to qualified researchers anywhere in the world for research and development on neglected tropical diseases malaria and tuberculosis This commitment should accelerate the development of medicines vaccines and diagnostics for these diseases

According to the World Health Organization (WHO) neglected tropical diseases today impair the lives of an estimated 1 billion people The WHO provides technical advice to WIPO on public health issues and research pri-orities as appropriate

By providing a searchable public database of available intellectual property assets information and resources WIPO ReSearch facilitates new partner-ships with organizations that conduct research on treatments for neglected tropical diseases malaria and tuberculosis

Membership in WIPO ReSearch as a user provider or supporter is open to all organizations that endorse adhere to and support the projectlsquos Guiding Principles These Guiding Principles include the commitment that IP li-censed via WIPO ReSearch will be licensed on a royalty-free basis for re-search and development on neglected tropical diseases in any country and on a royalty-free basis for sale of neglected tropical disease medicines in or to least developed countries

―The innovative pharmaceutical industry has an important part to play in addressing unmet medical needs and increasing access to our collective pro-prietary information will help advance research into treatment options for these underserved diseases said David Brennan CEO of AstraZeneca and President of the International Federation of Pharmaceutical Manufacturers amp Associations (IFPMA) ―WIPO ReSearch has the potential to make a real impact on global health which is why we are proud to make all patents owned by AstraZeneca available to this important initiative for promoting the research and development of treatments for neglected tropical diseases anywhere in the world

The WIPO ReSearch database includes a wide variety of contributions rele-vant to malaria tuberculosis and other neglected tropical diseases including individual compounds and associated data screening hits from compound libraries and expertise and know-how in pharmaceutical research and devel-opment In addition WIPO ReSearch offers the opportunity for neglected tropical disease researchers to work directly with scientists at pharmaceutical companies to advance RampD on these diseases As WIPO ReSearch moves forward offerings from current partners will continue to grow and new pro-viders are expected to join to add to the wealth of information compounds and services available

―NIH licenses its patents to enable the private sector to develop diagnostics therapeutics and devices that improve public health said National Insti-tutes of Health Director Francis S Collins MD PhD ―We want to ensure that our biological materials and patents covering treatments or vaccines for neglected tropical diseases as with all diseases are available as broadly as possible to speed the development of new products for people who are most burdened by these diseases and WIPO ReSearch helps us to do this

The founding eight pharmaceutical companies WIPO BVGH and NIH are joined by a distinguished group of globally recognized institutions as provid-ers potential users and supporters of WIPO ReSearch (see annex) BVGH will manage the WIPO ReSearch Partnership Hub which will facilitate rela-tionships between the pharmaceutical company providers and new users

―In our role as administrator of the WIPO ReSearch Partnership Hub BIO Ventures for Global Health is excited to bring these new opportunities to neglected disease researchers around the world to accelerate their work in this area of critical unmet need said Don Joseph Chief Operating Officer of BVGH ―As both present and future providers evaluate their internal data and IP with the goal to provide focused information which they believe will best serve the neglected tropical disease research and development commu-nity WIPO ReSearch will build on previous RampD investments to speed the development of drugs vaccines and diagnostics for the neglected diseases that disproportionately impact people living in resource-poor countries Source WIPO

Page 21: Bio Outsourcing Asia: Volume 1 Issue 3 2011.pdf · TB drug trials. Support relevant organizations and stakeholders in accelerating procurement of and access to new TB drug therapies

21

Continued from page 19hellip UK Academia Given Access to Selected AstraZeneca Compounds December 11 2011 Following a unique landmark agreement between AstraZeneca and the UK Medical Research Council (MRC) a wide range of compounds will be made available to UK medical researchers next year In a new type of collabora-tion academia will be granted access to 22 clinical and preclinical com-pounds developed by AstraZeneca Though making individual compounds available to external academic investigators is not unusual the breadth and open-innovation nature of this collaboration is unique because it provides unprecedented access to well characterised clinical and preclinical candidate molecules to investigators across all UK academic institutions There is significant unmet need in diseases both within and outside Astra-Zenecalsquos current research focus This collaboration builds on the sizable in-vestment made in developing candidate drugs within AstraZeneca by help-ing researchers to explore their potential more broadly with the hope that they will find new future medicines It also helps AstraZeneca explore areas of unmet patient need beyond its current disease area focus leveraging great external science in a way that is highly flexible and cost effective The New Opportunities Innovative Medicines Unit (iMed) in AstraZeneca has been central in establishing this research collaboration with the MRC and has acted as the interface with the other AstraZeneca iMeds to agree which compounds would be eligible Clive Morris VP New Opportunities iMed said that ―This Open Innova-tionlsquo approach brings together the strengths of AstraZeneca the MRC and UK Academia into what I hope will be a really potent mix bringing forward really exciting new ideas that could transform our understanding of some diseases It highlights an openness to new scientific thinking and also places external scientific collaboration right at the heart of what we do It is also an excellent way to broaden our portfolio of activities into new diseases for As-traZeneca leveraging the wealth of expertise across UK academia AstraZeneca and the MRC will invite preclinical and clinical research pro-posals from across the UK academic community to investigate the com-pounds in a range of diseases with a view to finding new treatment oppor-tunities AstraZeneca will work with the academic collaborators to develop the best scientific proposals and the MRC will select the highest quality pro-posals for funding awarding up to pound10 million in total to fund the success-ful proposals The successful applicants will then work collaboratively with AstraZeneca to deliver the studies David Brennan AstraZenecalsquos Chief Executive Officer said ―Innovative collaborations are playing a crucial role in finding ways to unlock the poten-tial of new treatments The UK has a strong heritage of research excellence in life sciences We hope that in sharing these valuable compounds with aca-demic scientists through the MRC new discoveries will be made by explor-ing additional uses of these compounds Source AstraZeneca WIPO ReSearch A Neglected Tropical Diseases Initiative October 26 2011 The World Intellectual Property Organization (WIPO) in an unprecedented collaboration with leading pharmaceutical companies and BIO Ventures for Global Health (BVGH) recently launched the WIPO Re Search a new consortium where public and private sector organizations share valuable in-tellectual property (IP) and expertise with the global health research commu-nity to promote development of new drugs vaccines and diagnostics to treat neglected tropical diseases malaria and tuberculosis In WIPO ReSearch Alnylam Pharmaceuticals AstraZeneca Eisai GlaxoS-mithKline MSD1 Novartis Pfizer and Sanofi are collaborating with WIPO BVGH the US National Institutes of Health (NIH) and multiple non-profit research organizations These include the California Institute of Technology the Center for World Health amp Medicine the Drugs for Ne-glected Diseases initiative Fundaccedilatildeo Oswaldo Cruz (Fiocruz) Massachu-setts Institute of Technology Medicines for Malaria Venture PATH the South African Medical Research Council the Swiss Tropical and Public Health Institute the University of California Berkeley and the University of Dundee (UK)

―WIPO ReSearch is a ground breaking example of how a multi-stakeholder coalition can put IP to work for social benefit said WIPO Director Gen-

eral Francis Gurry ―By joining WIPO ReSearch companies and researchers commit to making selected intellectual property assets available under roy-alty-free licenses to qualified researchers anywhere in the world for research and development on neglected tropical diseases malaria and tuberculosis This commitment should accelerate the development of medicines vaccines and diagnostics for these diseases

According to the World Health Organization (WHO) neglected tropical diseases today impair the lives of an estimated 1 billion people The WHO provides technical advice to WIPO on public health issues and research pri-orities as appropriate

By providing a searchable public database of available intellectual property assets information and resources WIPO ReSearch facilitates new partner-ships with organizations that conduct research on treatments for neglected tropical diseases malaria and tuberculosis

Membership in WIPO ReSearch as a user provider or supporter is open to all organizations that endorse adhere to and support the projectlsquos Guiding Principles These Guiding Principles include the commitment that IP li-censed via WIPO ReSearch will be licensed on a royalty-free basis for re-search and development on neglected tropical diseases in any country and on a royalty-free basis for sale of neglected tropical disease medicines in or to least developed countries

―The innovative pharmaceutical industry has an important part to play in addressing unmet medical needs and increasing access to our collective pro-prietary information will help advance research into treatment options for these underserved diseases said David Brennan CEO of AstraZeneca and President of the International Federation of Pharmaceutical Manufacturers amp Associations (IFPMA) ―WIPO ReSearch has the potential to make a real impact on global health which is why we are proud to make all patents owned by AstraZeneca available to this important initiative for promoting the research and development of treatments for neglected tropical diseases anywhere in the world

The WIPO ReSearch database includes a wide variety of contributions rele-vant to malaria tuberculosis and other neglected tropical diseases including individual compounds and associated data screening hits from compound libraries and expertise and know-how in pharmaceutical research and devel-opment In addition WIPO ReSearch offers the opportunity for neglected tropical disease researchers to work directly with scientists at pharmaceutical companies to advance RampD on these diseases As WIPO ReSearch moves forward offerings from current partners will continue to grow and new pro-viders are expected to join to add to the wealth of information compounds and services available

―NIH licenses its patents to enable the private sector to develop diagnostics therapeutics and devices that improve public health said National Insti-tutes of Health Director Francis S Collins MD PhD ―We want to ensure that our biological materials and patents covering treatments or vaccines for neglected tropical diseases as with all diseases are available as broadly as possible to speed the development of new products for people who are most burdened by these diseases and WIPO ReSearch helps us to do this

The founding eight pharmaceutical companies WIPO BVGH and NIH are joined by a distinguished group of globally recognized institutions as provid-ers potential users and supporters of WIPO ReSearch (see annex) BVGH will manage the WIPO ReSearch Partnership Hub which will facilitate rela-tionships between the pharmaceutical company providers and new users

―In our role as administrator of the WIPO ReSearch Partnership Hub BIO Ventures for Global Health is excited to bring these new opportunities to neglected disease researchers around the world to accelerate their work in this area of critical unmet need said Don Joseph Chief Operating Officer of BVGH ―As both present and future providers evaluate their internal data and IP with the goal to provide focused information which they believe will best serve the neglected tropical disease research and development commu-nity WIPO ReSearch will build on previous RampD investments to speed the development of drugs vaccines and diagnostics for the neglected diseases that disproportionately impact people living in resource-poor countries Source WIPO