Successful Pharmabiotech Alliance Strategies: Driving synergies, avoiding failure and managing relationships

Table of Contents

Executive summary

• Pharma and biotech company synergies
• Overview of pharma-biotech alliances
• Why pharma-biotech alliances fail
• Strategies to manage pharma-biotech alliances
• The future of pharma-biotech alliance management

Chapter 1 Pharma and biotech company synergies

• Summary
• Background
• The pharmaceutical industry
  • The research and development process
  • Resources
  • Constraints and pressures
• The biotechnology industry
  • The research and development process
  • Resources
  • Constraints and presures
• Drug development today
• More sophisticated science
• More complicated disease targets
• Rapidly escalating costs
• Declining R&D productivity
• Conclusions

Chapter 2 Overview of pharma- biotech alliances

• Summary
• Introduction
• Evolution of major alliances
• Genentech
• ImClone
• MedImmune
• Current deal trends
• Types of relationships currently undertaken
• Licensing
  • Significant recent pharma-biotech licensing deals
• Joint ventures
  • Significant recent pharma-biotech joint ventures
• Acquisitions
  • Significant recent pharma-biotech acquisitions
• Hostile takeovers
• Offshore alliances
• Japan
• China
• India
• Canada
• Number and value of alliances
• Key therapeutic areas for pharma-biotech alliances
• Conclusions

Chapter 3 Why pharma-biotech alliances fail

• Summary
• High failure rates
• Symptoms of alliance failure
• Factors that do not affect alliance success
• Main causes of alliance failure
• Management changes
• Culture
• Project organization and expectations
  • Alliance goals
  • Incentives
  • Roles and responsibilities
  • Sharing of business processes
  • Decision support infrastructure
  • Project and alliance leadership
  • Harmonization of information technology
  • Timelines and budgets
  • Alliance expectations
  • Other preventable problems
• Technology failure
  • The drug approval process
  • Drug development success rates
  • Case study: Alza and Scios
• Vulnerability by alliance type
• Licensing deals
• Joint ventures
• Acquisitions
• Conclusions

Chapter 4 Strategies to manage pharmabiotech alliances

• Summary
• Determining alliance success
• Performance measurement
• Alliance goals versus company goals
• Why effective alliance management is crucial
• Key alliance management strategies
• Deal structure 104
  • Case study : Wyeth
  • Case study : Novartis
• Relationship managing and monitoring
  • Case study : Eli Lilly
  • Case study : GlaxoSmithKline
  • Exploiting synergies across alliances
• Biologics consolidation
  • Case study: AstraZeneca
  • Case study: Novartis
  • Case study: Pfizer
• Addressing corporate culture
  • Case study: WuXi PharmaTech
• Leadership continuity
• Renegotiation
• Third party services
• Conclusions

Chapter 5 The future of pharma-biotech alliance management

• Summary
• Increasing reliance on biotech by Big Pharma
• Positions of the leading pharmaceutical companies
  • AstraZeneca
  • Bayer
  • Eli Lilly
  • GlaxoSmithKline
  • Johnson & Johnson
  • Merck
  • Novartis
  • Pfizer
  • Sanofi-Aventis
  • Weyth
• Deal trends
• Number and value
• Therapeutic areas
• Types of relationships
• Offshore relationships
• Relationship management trends
• Conclusions
• Index

List of Figures

• Figure 1.1: U.S. NME approvals vs. R&D spend, 1980 - 2007
• Figure 1.2: U.S. R&D spend per NME approval by year, 1990 - 2007
• Figure 2.1: Comparison of key types of pharma-biotech alliances
• Figure 2.2: Volume and value of biolicensing deals, 1997 - 2007
• Figure 3.1: Compounds tested by phase of development, 2008
• Figure 3.2: Pharma-biotech alliance failure trends by alliance type
• Figure 4.1: Pharma, biotech and alliance goals
• Figure 4.2: Roles and responsibilities for alliance personnel
• Figure 4.3: Biologics consolidation vs. alliance consolidation
• Figure 5.1: Volume and value of biolicensing deals, 2005 - 2015 (est.)

List of Tables

• Table 1.1: Characteristics of pharmaceutical companies and biotechs, 2008
• Table 1.2: Pharma and biotech views of alliances, 2008
• Table 1.3: R&D expenditure within the U.S. and abroad by PhRMA members
• Table 1.4: U.S. R&D spend per NME approved, 1990 - 2007
• Table 2.5: Significant recent pharma-biotech licensing deals
• Table 2.6: Significant recent pharma-biotech licensing deals (continued)
• Table 2.7: Significant recent pharma-biotech licensing deals (continued)
• Table 2.8: Significant recent pharma-biotech licensing deals (continued)
• Table 2.9: Significant recent pharma-biotech licensing deals (continued)
• Table 2.10: Significant recent pharma-biotech acquisitions
• Table 2.11: Significant recent pharma-biotech acquisitions (continued)
• Table 2.12: Significant recent pharma-biotech acquisitions (continued)
• Table 3.13: Cultural characteristics of pharmaceutical companies and biotechs
• Table 4.14: Selected GlaxoSmithKline biotech alliances, 2008
• Table 4.15: Capabilities of selected alliance management specialists
• Table 5.16: Current and future biotech positions of top 10 pharmaceutical companies, 2008