1 europabio’s most innovative biotech sme awards october 2, 2013 brussels, belgium g. steven...
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EuropaBio’s Most Innovative BiotechSME AwardsOctober 2, 2013Brussels, Belgium
G. Steven BurrillChief Executive Officer
Burrill & Company
Biotech In 2020: Is Europe Still Relevant?
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What’s Ahead for Europe?
• Can European life sciences companies gain access to capital they need?
• Is European Big Pharma leading or following today?
• Will austerity quash innovation?
• Will price pressures in Europe cause companies to focus on other markets?
• Will price pressures in Europe force companies to focus on developing products with true value?
• Will resistance to GMOs delay progress for European companies?
• Will Europe serve as a model on regulation? Healthcare?
• Does Europe still matter?
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Healthcare:
A Menu Without Prices
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Healthcare:
Procedures
Cost
Outcomes
Value
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• Layoffs slow but so is hiring
• Housing market hot again
• Sequester takes effect
• Debt-ceiling battle ahead
• U.S. Federal Reserve’s policy for continued economic support uncertain
• Fed more pragmatic than doctrinaire… helps sustain a growing economy(rather than sharply higher interest rates)
• Capital goods purchases increase; consumer confidence building
• Economic growth is real but
Economic Signs in U.S. Show Some Improvement
Austerity is still the watchword of the day
6
Plenty of Mixed Signals Internationally
• Eurozone economy declines for six consecutive quarters
• German economy will grow at a slower pace than previously expected this year and next
• China’s manufacturing numbers shrink
• International Monetary Fund trims global gross-domestic-product growth forecast to 3.1 from 3.3 percent
• Japan recovery well underway
• Rising middle class globally is spending money
• Economic sentiment indicator in the E.U. rose above its long-term average for the first time since July 2011
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Globally Markets Are Improving And Capital Is Available
•Major indices hit record highs
•Life sciences first andinformation technology second inIPO performance
•Half of executives in 50 country surveysay credit availability improved versusone year ago.
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For the first time, the advanced economies, including:
JapanThe United StatesEurope
Source: Bridgewater Associates
collectively contribute more to growth in the $74 trillion global economy than the emerging nations, including:
ChinaIndiaBrazil
Emerging Markets Losing Steam
9
Mixed Global Life Sciences Financings Since Last SME Awards
In USD M
Source: Burrill & Company
Type10/1/11-9/30/12
10/1/12-9/30/13 Change
Global Venture Capital 11,726 12,319 5.1%
IPOs (56 vs 37) 2,308 6,391 176.9%
Global PIPEs 4,616 4,703 1.9%
Global Follow-ons 6,157 13,792 124.0%
Global Other Equity 2,726 1,067 -60.9%
Global Debt Offerings 51,947 53,642 3.3%
Global Other Debt 13,993 8,813 -37.0%
Total Global Public Financings 81,747 88,346 8.1%
Global Partnering 39,373 36,759 -6.6%
Total 121,120 125,105 3.3%
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Biotech Outperforms Major Indices Since Last Year’s Awards
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Burrill Select Index
Select DJIA NASDAQ
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Burrill Small-Cap Index
Small-Cap DJIA NASDAQ
And Small Companies Also Doing Well
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2012 (16 total)
Raised vs. Target -5.2%
Price vs. Target -23%Shares sold beyond Target 31%
Change as of 9/26/13 76%
2013 (37 total)
Raised vs. Target 11.4%
Price vs. Target -9.8%Shares sold beyond Target 27.5%
Change as of 9/26/13 61.3%
With Record U.S. Life Sciences IPOs in 2012 and 2013
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Life sciences markets are hot
(…in some places)
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IndexPrice 9/20/2012
(USD)Price 9/20/2013
(USD)Percent Change
DJIA 13,597 15,451 13.6%
S&P 500 1,460 1,710 17.1%
Nasdaq Composite 3,176 3,775 18.9%
Nasdaq Biotechnology 1,498 2,194 46.5%
NYSE Pharmaceutical 369 438 18.7%
NYSE Biotechnology 1,585 2,217 39.9%FTSE 350 Pharma/Biotechnology 9,768 11,060 13.2%
Euro STOXX 50 2,553 2,927 14.7%
Germany DAX 7,389 8,676 17.4%
Swiss SMI 6,556 8,105 23.6%
Not All Global Markets Up As Much As Biotech in the U.S.
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European Life Sciences Companies Financing by Debt
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Company Market Cap (USD Billions)
Closing price (USD) 9/26/13
85.0 $113
96.1 $63
57.8 $243
77.3 $47
55.8 $51
40.6 $52
206 $267
171 $77
Some Big Biotechs Surpass Big Pharma
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• Global climate change, sustainability of the planet
• Clean water
• Energy security, energy self-sufficiency
• Food security and food production
• Wellness
• Emergence of new viruses to which we are not immune
A Host of Problems Face the World
The life sciences industry has the tools to develop solutions
18
The Impact of Urbanization, Longevity and Better Lifestyles
Pakistan
Japan
Egypt
Indonesia
Mexico
Russian Federation
Brazil
USA
India
China
0 10 20 30 40 50 60 70 80 90 100
Top 10 Countries/Territories for People with Diabetes
More than 371 million people have diabetes.
Source: International Diabetes Foundation
19
Non-Communicable Diseases Take a Growing Toll Worldwide
• Account for 63% of deaths worldwide• Cost more than $30 trillion over the next 20 years• Cause nearly 80% of deaths in low- and middle-income countries
Source: World Economic Health Forum and the Harvard School of Public Health; World Health Organization
30%
13%
9%2%7%
30%
9%
Cardiovascular Diseases
Cancer
Other Chronic Diseases
Diabetes
Chronic Respiratory Diseases
Other Conditions*
Injuries
20
Half of Deaths from Diabetes Are In the Under 60 Age Group
and in 2012 alone 4.8 million people died worldwide due to diabetes
Source: International Diabetes Foundation
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Hepatitis C: A Silent Epidemic
One of every 33 baby boomers are infected with hepatitis C
- Centers for Disease Control and Prevention
22
Healthcare Cost Rapidly Increasing Not Only in the U.S.
Source: PricewaterhouseCoopers Health Research Institute
Health Costs as a Percent of GDP
21
19
17
15
13
11
9
U.S. OECD outside of the U.S.
2010 20142012 2016 202020182006 2008
23
Spending Does Not Equate to Quality
U.S. spends two-and-a-half times the OECD average
Source: OECD Health Data 2012
1. In the Netherlands, it is not possible to distinguish the public and private share related to investments.2. Total Expenditure excluding investments
Per
cap
ita h
ealth
care
ex
pend
iture
s in
US
D
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As Costs Rise, Governments Demand Value for Their Money
• Germany’s drug pricing law AMNOG
• U.K.’s National Institute for Health and Clinical Excellence
• U.S.’s Independent Payment Advisory Board
• India’s Department of Pharmaceuticals
Cost-based systems become value-based
Pricing pressures will alter pharmaceutical development strategies
25
Same pressures on healthcare driving
pressures on agriculture and energy
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The Biogreentech Opportunity
Opportunities within the agricultural and cleantech sectors that apply biotechnology and associated technologies, such as chemistry, biomaterial science and nano-technology to:
• Enhance productivity
• Enhance sustainability
• From agriculture to renewable chemicals
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Source: FAO 2008, Food Vs. Fuel, Frank Rosillo-Calle and Francis X. Johnson editors
Biofuel Crops, Feedstocks, and Fuels
Food vs. Fuel: Food Crops Used for Fuel
ETHANOL
BIODIESEL
FERMENTATION AND DISTILLATION
EXTRACTION AND ESTERIFICATION
SACCARIFICATION, FERMENTATION, AND
DISTILLATION
SUGAR CROPS
SUGAR CROPS
SUGAR CROPS
SUGAR CROPS
• Sugarcane• Sugar beet• Sweet sorghum
• Maize• Wheat• Barley
• Rye• Potatoes• Cassava
• Switchgrass• Miscanthus• Willow
• Poplar• Crop stover
• Rapeseed• Oil palm• Soybean
• Sunflower• Peanut• Jatropha
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EU Fourth for New Biorefineries
Projected Biorefineries by 2025
Source: Biofuels Digest
U.S.
Brazil
E.U.
India
China
Other EMEA
Other Asia-Pacific
Other-Americas200
130
60
40
4060
135
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Evolving Business Models Move to Bio-based Chemicals
Chemicals are a nearer term opportunity compared to fuels
• Smaller scale and volumes
• Lower capex requirements
• Less biomass required
• Better economic margins
• Market pull from the consumer product industry
• Access to ready partners
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A convergence oftechnology withhealthcare and biogreentech
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Convergence with IT Creating A New Healthcare Model
Passive / active data collection
Analytics and network architecture
Electronic medical record / patient medical record
Performance and outcomes analysis
Integrated technology platforms
Data miningand integration
services
Increasingly targetedcare and efficient
use of finite resources
Consumers
Healthcare IT
Diagnostics/Devices
Therapeutics
Patients
Services for
Integrated
Care
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Emerging Technologies Create New Possibilities
New digital technologies provide powerful weapons in the arsenal against disease
• Remote patient monitoring systems
• Mobile early interventions
• Health consumer wellness apps
• Genomics and personalized therapies
• Data analytics for improved patient AND provider outcomes
33
A New Future Drives the Bio-economy
• Productivity• Reliability• Quality• Integration of native and biotech traits
• Pest protection• Stress alleviation• Superior nutrient use • High nutrient density• Processor efficiency
• Pest control• Nutrition• Growth regulators
Microbes and biofilms / chemicals
Breeding traits Genetic traits
34
New Forms of Medical Intervention in Development
Implants
Brain stem implant in deaf 3 year-old turns data from a
receiver into sound
3D printing of trachea to maintain
airway function
Biomonitoring technologies and
implants
Human-computer interfaces
Self-regulating drug delivery technologies
Artificial organs and
exoskeletons
Mind-controlled prosthetics
Patient monitoring
Digital pills for medication adherence
Mobile apps remind patients and reduce
provider costs
Ingestible sensors report back to physicians for improved care
35
Europe pushes the envelope
36
Gene Therapy Advances in Europe
• UniQure’s Glybera wins regulatory approval
• Rescues lipoprotein lipase deficiency
• Relies on adeno-associated virus serotype 1
• EMA grants first approval for a gene therapy in the western world
• Approval for exceptional circumstances only and requires outcomes reporting
37
Europe A Leader In Using Sequence Data
To Advance Understanding of Ourselves:•Single-stranded library preparation at Max Planck Institute for Evolutionary Anthropology, Germany
•Reconstruction of the genome by sequencing DNA from frozen finger fragments
•Advances knowledge of our evolutionary past
To Advance Rapid Interventions:•Practical application of whole genome sequencing by Sanger Institute, Britain and Addenbrooke’s Hospital, Cambridge
•First case of rapid whole genome DNA sequencing to lead to intervention of an infectious disease outbreak
38
Europe Provides Innovation to Pharma and Biotech
•Oxford-based Immunocore
•Key platform technology todevelop immune mobilizing monoclonal T cell receptors against cancer, or ImmTACs
•GSK will pay more than $5 million USD total to gain access to treatments for cancer and other diseases
•Genentech will pay between $10 million and $30 million USD each for new cancer immunotherapy
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Company CountryAcademia/ NonProfit Reason
Affimed Therapeutics Germany
The Leukemia & Lymphoma Society
AFM13, antibody against human CD30 and CD16A for Hodgkin’s lymphoma
AstraZeneca UKNEOMED (Canada)
AstraZeneca’s 250,000 high-quality small molecule compounds library
Bayer Healthcare Germany Broad Institute
Bayer’s oncogenomics and drug discovery
Evotec Germany Yale UniversityEvotec's drug discovery infrastructure
Evotec GermanyHarvard University
Evotec's drug discovery infrastructure for antibacterials
Evotec GermanyHarvard Stem Cell Institute
Evotec's drug discovery infrastructure for amyotrophic lateral sclerosis
United States Reaches to Europe for Innovation
Source: Burrill
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Company CountryAcademia/ NonProfit Reason
Ipsen FranceHarvard University
Ipsen’s drug discovery and R&D expertise for botulinum toxins for the treatment of neurologic diseases
Karolinska Institute Sweden Mayo Clinic
Karolinska Development to evaluate Mayo Clinic innovations
LEO Pharma Denmark
US National Psoriasis Foundation
LEO Pharma's psoriasis care solutions
to-BBB technologies Netherlands
ALS Therapy Development Institute
BBB's CNS-targeted liposomal drug delivery system
United States Reaches to Europe for Innovation - cont
Source: Burrill
41
Company CountryAcademia/ NonProfit Country Reason
ICON Ireland
National Taiwan University Hospital Taiwan
ICON set-up and management of clinical studies in Taiwan
QuantuMDx UK
A*STAR: Genome Institute of Singapore Singapore
Asia-specific point-of-care genetic tests for use with QMDx’s handheld device
Roche SwitzerlandInstitute Pasteur Korea
South Korea
Discover and develop drug candidates for infectious diseases
Servier France A*STAR Singapore
Discover and develop compounds for cancer and autoimmuine diseases
Asian Governments Look to Europe Too
Source: Burrill
42
And Europe Leverages China’s Power
• BGI Europe in Denmark and the LUCAMP initiative, a collaboration with 9 Danish universities/institutes
• Focus on the human genome and the gut microbiome to understand variations in metabolic and cardiovascular disease
• To improve the health of at-risk populations
43
2018 Rank
Company Country Global Spending (USD M)
Increase 2012- 2018
(USD M)2012 2018
1 Siemens Germany 1,706 2,023 317
2 J&J USA 1,681 1,899 218
3 Medtronic USA 1,557 1,823 266
4 Abbott Laboratories USA 848 1,280 432
5 Philips Netherlands 1,032 1,180 148
6 Roche Sweden 1,009 1,157 148
12 Stryker USA 471 616 145
13 Becton Dickinson USA 472 591 119
16 Essilor International France 208 340 132
17 Novartis Sweden 285 335 50
19 B. Braun Melsungen Germany 246 329 83
20 bioMerieux France 217 272 55
Healthy Medtech R&D Spending in Europe
Source: EvaluateMedTech
44
A leader in public-private initiatives to solve big problems that hamper
innovation and productivity in drug
development
45
Working together to overcome obstacles
46
The European Lead Factory
• European public-private partnership that seeks to speed translation of academic research into innovative therapies
• 30 international partners, including 7 European Pharmas and 13 E.U. Universities
• Founded by Innovative Medicines Initiative
• Provides public partners with industry-like discovery platform
• Unifies 500,000 small molecule compounds into a Joint European Compound Collection for drug discovery screening
• $261.9 million (€196 million) effort
47
Company CountryAcademia/ NonProfit Country Reason
Abcodia UKAustrian Institute of Technology Austria
Biomarkers for early detection of lung and colorectal cancers
Almac Discovery Ireland
Queen's University Belfast Ireland
Accelerate cancer-focused drug discovery in Northern Ireland
AstraZeneca UK Karolinska Institute Sweden
Center for preclinical and clinical research for cardiovascular and metabolic disease
AstraZeneca UK
Univ. of Cambridge; Cancer Research UK UK
Identify changes in tumor cells and test drug combinations
Janssen R&D Ireland PATH IntlDevelop pre-exposure prophylaxis against HIV infection
Sanofi France Curie Institute FranceLarge collection of cryopreserved tumor samples at Institute Curie
Select European Government and Non-profit Initiatives 2013
Source: Burrill
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Public-Private Partnerships to Advance Biogreentech
• THANAPLAST private-public consortium: one of the largest projects in plastics technology
• Private partners include lead company Carbios, specializing in new approaches for recovering plastic waste and producing biopolymers
• Public partners are National Center for Scientific Research (CNRS) and Poitiers University
• Funds €3.2-million collaboration to develop new plastics technologies
49
Healthcare Solutions Redefined
Treating sickness with:DrugsDevicesDx
Promoting wellness with:Patient managementHealth incentives Individual and
efficient treatments
50
Global Initiatives to Engage Patients Worldwide
Improve patient outcomes globally through interactive web application for patients and doctors
Enhances the patient experience via U.K. consumers main point of contact:their pharmacist
Digital health diabetes self-management program using digital coaching and wireless glucose meter to transmit data to clinical monitors
51
Challenges and Opportunities for Europe
52
European Regulators More Proactive than U.S.
• U.S. contract research organization, Cetero Research, found to have falsified pre-clinical and clinical trial data
• Nearly 100 U.S. for drug approvals, ranging from blood thinners to chemotherapeutics and painkillers, relied on the falsified data
• European Medicines Agency recalled seven of the drugs, but the U.S. Food and Drug Administration has done little to address the problem
53
Unified Patent Protection Still Uncertain
• Unified patent system is designed to cut costs and eliminate burdensome filing procedures
• Will provide uniform legal protection in 25 European countries
• In 1973, the Munich Convention created a unified community patent, but it was never adopted
• Attempts again in 1989, 2000, proposal tabled in 2011
• Current agreement takes effect January 1, 2014 or after thirteen contracting states ratify it, provided that the signatories include the United Kingdom, France, and Germany
54
Uncertain Future for Med Devices
• European Parliament committee proposes U.S.-style premarketing approval system with randomized clinical trials for implantable devices
• Will be controlled by the European Medicines Agency
• In response to breast implants made in France with industrial-grade silicone used by hundreds of thousands of women around the world
• E.U. trade group Eucomed says it will delay patient access to lifesaving medical technology and deliver a devastating financial blow to Europe's 25,000 small and medium-sized device makers
55
Offsetting Stagnation in Europe by Global Arbitrage
Companies look to emerging markets:
• Amgen acquires Turkish drug maker Mustafa Nevzat
• Teva Pharmaceutical opens $110 M plant in Hungary
• Novo Nordisk hiring in emerging markets, including Ukraine
56
The Potential For Cell Phones As Partners in Health
•Out of the world’s estimated 7 billion people,6 billion have access to mobile phones
•Kaiser Permanente’s 9 million members aroundthe world have 24/7 access to their medical informationvia free apps
•Healthcare app downloads expected to be 142 millionin 2016
•The benefits of mobile:– Personal and immediate– Context aware; acts as a sensor– Distributes instant rewards
Source: International Telecommunication Union
57
•Nearly 70 percent of adults use a social networking site like Facebook, Google+, LinkedIn
•Nearly 60 percent of physicians think social media is engaging, beneficial, and a good way to get current high-quality information
•Physicians in Europe, particularly in Italy and France, are the most conservative in use of public social media sites, medical community sites, or the internet for professional networking, compared to physicians in the emerging markets or U.S.
Source: Physiciandesign.com and Cegedim Strategic Data
Social Media for Patients And Providers: Global Access
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The need for innovation
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Innovate or Die
• Kodak
• Nokia
• Vinyl records 8 track tape CDs iTunes cloud
60
Why Is Innovation Important?
•Global competition
•Sustainable economicgrowth
•Enhanced shareholder(and societal) value
•Faster, smaller, cheaper, more mobile
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Faster
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CellScope for Rapid And Remote Diagnosis of Infections
• Attachable devices turn smartphone into a microscope
• Transmits high-magnification diagnostic-quality images to physician for remote diagnosis and treatment
• Smart Otoscope for ear infections
• Smart Dermascope for skin infections
• No need to make an appointment with the doctor
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Smaller
64
New Products Connect Patient Data to Doctor for Feedback
Applications that report data to individual and doctor
Use: Improve compliance, provide early interventions, collect better quality data
Glow Caps Zio Patch
ComplianceLong-term
cardiac monitors
ViSi Mobile
Wireless platform forvital signs monitoring
65
Cheaper
66
Save Money on Prescriptions
•Prescription Saver searchesfor the prices of prescription drugsat local pharmacies
•App makes it easy to find the nearest pharmacy, get directions, click to calland save the pharmacies in favorites
•Share savings through Facebook, Twitter, and email Phunware
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• Digital diapers from Pixie Scientific
• Detects possible urinary tract infections, kidney dysfunction, dehydration
• Accompanied by smartphone app that transmits the information to a physician
• Intended to help in screening for disease so subject to regulation by the FDA; require clinical trials and 510(k) approval
• Crowdfunded through
Smart Diapers Connect Data
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Allow Elderly to Live Independently Longer
•Remote patient monitoring
•Smart sensors for senior livingcommunities
•Wellness surveys, brain fitness games,medication compliance reminders keepmembers engaged
•Simple, secure interface to interact onlinethrough a private social network to promotephysical, social, and mental health
•Helps staff monitor seniors’ wellness and identify potential problems early
69
Innovation Takes Two Principal Forms
• Brave new world of new ideas, new products, new industries– Fax– GPS– Email– iPhone
• Better, faster, cheaper modifications to existing products with new features/new industries
– US mail FedEx– Crops with new traits– Microsoft Office cloud computing
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Strategies for Promoting Innovation
• PROVIDE THE FOUNDATION - Promote innovative culture– Executive commitment– Mission statement– Reward it
• TECHNICAL CAPABILITIES - Establish internal research & development – Time– Financial resources– Leverage others R&D
• LEVERAGE OTHER’S IDEAS AND $$ - Acquire or partner for innovation
• KEEP THE INNOVATION WINDOW OPEN - Engage with venture capital
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The Necessity of Building A Culture of Innovation
“I can’t do it all. I don’t have all the ideas.That isn’t my job. My job is to builda culture of innovation. That’s somethingthat we try to enforce.
We encourage it.We value it.We notice it.We compensate for it.We require it.”
Salesforce FounderMarc Benioffto Forbes Magazine
Number 1 on Forbes Most Innovative Companies list in 2011, 2012, 2013
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Innovation Can Be Acquired
“I’m willing to acquire a company thatmight not have a lot of revenuebut has a lot of innovation.
We’ll take innovation any wayyou can give it to us. … I don’t care if it’s my idea, an employee’s idea, a competitor’s idea, a partner’s idea or some other associate’s idea.”
Marc Benioff,Salesforce Founder
Source: Forbes
Salesforce has spent nearly $4 billion since 2011 buying smaller software firms
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Innovating Into New Markets
•Microsoft acquires handsetand services business of Nokiafor $7.2 billion
•Consumers moving away fromlow-end mobile phones,Nokia’s lead product
•Microsoft needs mobile device for software
•Hope is to reduce intellectual property conflicts and increase agility of unified company
• Innovate by increasing efficiencies
74
Innovation By Integration
•New uses of existing technologies
• Integration of existing technologies for new applications
•Big data convergence
– Robotics
– Synthetic biology
– Biocontrol
The key is integration of innovation,not just new science or technology
75
Applying Technologies from Human Health to Agriculture
•Repurposes health technologies for agricultural use
•Acquires RNAi technologies
•Moves towards “point-of-care” gene sequencing
•Consistently present on Forbes’ innovative companies list:34th in 20139th in 201210th in 2011
•In 2013 number 14 on Great Place to Work Institute’s Top 25 world’s best multinational workplaces- the only ag company in the award’s second year of existence
76
Innovate By Capturing Value Outside the Product
Amazon:Builds cloud computing business
Google:AdWords pay-per-click advertising
Facebook:Establishes gifts program
Twitter:Charges for promoting tweets and trends
77
Life Sciences Companies Doing the Same
23andMe
• Business focused on selling DNA analysis for ancestry and health data
But finds value outside product:
• Company wins patent for polymorphisms associated with Parkinson’s disease
• Hired by Genentech to enlist breast cancer patients in a study to predict which patients benefit from the use of Avastin
78
All bring valueto healthcare
79
Promotes wellness/improves
outcomes
Prevention
Early intervention
Behavior modification
Treats illness
Targetedtherapies
Rx/Dx combos
Pharmacogenetics
A Transition from Illness to Wellness
Genomics
Diagnostics
Digital health
Bioinformatics
Treating Symptoms Promoting Health
80
Changing Roles of Doctors
• Health advisors
• Data driven decisions using
health IT and diagnostics
• Focus on prevention and
wellness
• Integrated with specialists,
labs, and pharmacists
• Unquestioned authorities
• Trial and error approach
• Treat disease
• Disconnected from others
in the healthcare system
Past Future
81
Changing Roles of Patients
• Active managers of their healthcare
• Armed with knowledge of genetic risks
• Have access to their own digital health records
• Rely on Internet, social networks, for medical information
• Monitor health and wellness with digital devices
• Passive about their healthcare
• Armed with family history
• Relied on doctors to maintain health records
• Relied on doctors as primary source of medical information
• Received annual check-up
Past Future
82
Healthcare Systems Are Changing Globally
Past Future
• Acute care • Chronic care (to wellness care)
• People = dying patients • Systems / Software
• Place = hospitals • Consumer digital health
• Payment = Cost-based care • Value-based care
83
Technology Is Changing Dysfunctional Sickness Care…
…to personalized, predictive, and preemptive medicine
• Treat sick people effectively and well people preemptively
• Treat the molecular mechanisms of disease rather than the symptoms
• Deliver the right drug at the right dose at the right time to the right patient, for the right cost!
Shifting towards integrated care of higher quality at lower costwould benefit everyone, everywhere
84
A Shift in Emphasis
Medical care system
Primary/pre-primary care system
Primary and pre-primary
care
Medical care
From treating illness To promoting wellness
85
But Innovation Is Not Enough
86
Value Creation Is Different Than Value Capture
Value Creation-customer perspective-
more for less
Value Creation-company perspective-
higher value productsgreater profits
Value Capture-everyone's perspective-
what payers will pay for
Targeted therapies
Rare diseases
Unmet medical needs
Faster regulatory path
Less competition
High margin products
Dominant market share
Broad markets
Reduced competition
Generics
OTC products
Biosimilars
Cheaper products
87
Why Europe Matters
• Big important market
• Still a source of innovation
• Ahead of U.S. on some policy issues
• Range of approaches to healthcare challenges being faced
• Integrating cost-effectiveness into pricing
• Financing remains difficult in Europe - companies forced to seek capital elsewhere
88
What Can Others Learn from Europe
•Collaborative efforts to promote innovation and answer the big questions in healthcare
•Leverage global resources
•Innovative government funding strategies
•Market size of Europe is still significant and companies shouldn’t ignore it
•Ahead of others in applying cost effectiveness: companies will need to learn to live in a world of NICE/AMNOGS
•As healthcare systems try to improve quality and reduce costs, there are successes in Europe that provide models to others
89
Where Are the Biggest Opportunities
•Transformational healthcare delivery
•Disruptive therapeutics / vaccines / diagnostics…each with a special
pathway to market
•Personalized and predictive medicine
•Medical devices / platforms / tools
•Data analytics
•Digital health
•Significant opportunity to address global needs for food, energy, fiber
•To address societal needs, investments are needed not only in
technology development but also infrastructure for deployment
•Emerging market opportunities / global arbitrage
90
The very best opportunitiesin Life Sciences are now.
Go for it!
91
EuropaBio’s Most Innovative BiotechSME AwardsOctober 2, 2013Brussels, Belgium
G. Steven BurrillChief Executive Officer
Burrill & Company
Biotech In 2020: Is Europe Still Relevant?