ashburn success

8/10/2019 Ashburn Success

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Skills for Success inBusiness Development

Kauffman Campus Best Practices WorkshopPurdue University

Ted T. Ashburn, MD, PhDSenior DirectorCorporate Development

Genzyme [email protected]

November 9, 2007


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2007 Genzyme Corporation. All rights reserved.1

Outline

1. Current Trends2. Genzyme

3. Business Development in Action

4. Key Skills for Success Business Development

General


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Outline



4. Key Skills for Success

Business Development

General


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1. The Pharmaceutical Value Chain

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

10-17 years, $1.7 billion+ process

> 75 different disciplines

< 10% overall probability of success once acand idate enters cl in ical tr ials!! !

Idea! Drug

Testing startsat Phase I(Phase I/II forcancer)

In vitro

Ex vivo

In vivo

In silico

Highthroughput

Bioavailability

Systemicexposure

TraditionalMed. Chem.

Rational drugdesign

TargetDiscovery

Discovery& Screening

LeadOptim. ADMET

ClinicalDevelop.

Regis-tration.

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

U.S (FDA)

E.U. (EMEA)

Japan (MHLW)

Rest of World

Expressionanalysis

In vitrofunction

In vivovalidation

Bioinformatics


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1. The Industrys Productivity Gap

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


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1. Possible Explanation for theIndustrys Productivity Gap

ChemicalStarting Point

TargetValidation

DevelopmentComplexity

Drug

Disease

1940s 1960s 1990s Today

TheFruit

Is

GettingHigher!

Hypertension

adrenaline

propranolol

Med

Med

Bacterial

Infectionspenicillin

penicillin

High

Low

Arthritis

celecoxib

Screening/RDD

Low

High

Alzheimers

N.A.

Screening/RDD

Very Low

Very High


7/26 2007 Genzyme Corporation. All rights reserved.

6

1. Why Innovation inHealthCare Is Important

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

Time

Complexity oftreatment

By Pass(Heart Surgeons)

Stents

(Cardiologists)

Antihyperlipidemics(PCPs & NPs)

OTC Antihyperlipidemics?(Patients)


8/26 2007 Genzyme Corporation. All rights reserved.7

0

50

100

150

200

250

300

Sales >$500M in '01* Drugs Approved in

the '90's**

1. Where Does InnovationCome From?

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

> 90% ofall new

drugs are

developedby the

PharmaIndustry

0

50

100

150

200

250

300

Sales >$500M in '01* Drugs Approved in

the '90's**

IndustryGov./Acad./Non-Prof.



1. Dependency of revenues onexternally sourced products

39%

41%

43%

45%

47%

49%

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

Big Pharma

Mid Pharma

Source: Datamonitor; company-reported information

~ of allinnovation

comesfrom smallcompanies



Outline



4. Key Skills for Success Business Development

General



2. Our Global Corporation

>9,500 employees worldwide

Helping patients in nearly 90 countries

17 manufacturing sites

9 genetic testing lab sites

14 marketed products

2006 revenue of $3.2 billion

>70 locations in >30 countries



2. Our Revenue Growth

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

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

(E)

$

$InMillions



2. Awards and Recognition

One of the 100 Best Companiesto Work for by FORTUNE

Named a top employer byScience

Rated one of the most generousin-kind givers by BusinessWeek

Named to the Dow Jones

Sustainability Genzyme Center recognized as

one of the most environmentallyresponsible U.S. buildings



2. Our Major Marketed Products& Services

Thymoglobulin

Hectorol

Renal

Renagel

Fabrazyme

GeneticDiseases

Aldurazyme

Cerezyme

Oncology/Endocrinology

Synvisc

SepraTMProducts

Orthopaedics/Biosurgery

Carticel

MACI Thyrogen

Campath

Clolar

Transplant/ImmuneDisease

Myozyme

GeneticTesting

Reproductive

Oncology

Infectious Disease

Cardiovascular

Cardiovascular

Cholestagel



Outline



4. Key Skills for Success BD

General



3. Summary: What isBusiness Development?

In larger companies Licensing/Acquisitions Department

Buying

In smaller companies BD is the Marketing & Sales before there are

any products

Selling (and sometimes buying)

Source: Jack Anthony, SVP, Business Development, Saegis Pharmaceuticals



3. Genzyme Strategy:Growth By Building Value

Maximize

Shareholder

value

Organic growth /

status quo

Optimize capital

structure

Improve investor

understanding

Large scale transaction/

merger/ sale

Strategic

transactions

Streamline portfolio

Add-on acquisitions

Licensing arrangements

joint ventures

Goal: To

RemainA Growth

Stock

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

CD is

Here



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3. An Integrated/Cross-FunctionalApproach

CorporateDevelopment Finance

Legal

BusinessUnit



18

3. Genzyme Deal Criteria

Signi f icantUnmet Medical Need Rare diseases New Standard of Care

Risk-reduced Opportunities Human POC or later

Clear Regulatory pathways

Focused Call Point(s)

Not PCPs Partnerships

Desire to work together to create value

Both Regional and worldwide



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3. The Kissing Lots Of Frogs

Problem

It takes 10-17 yrs & over $1.7 bn to develop a drug < 1 in 10 that begin human trials reach the market

Late stage clinical trials are often delayed/stopped

Hundreds of ongoing clinical trials targetinghundreds of diseases

> 1,500 private & public biotech companies (US)

< 35% of approved products justify the cost of

development & launch

20% earnings growth promised to Wall Street

We Cant Be Too

Picky About WhereWe Find GoodOpportunities

3 A T f ti



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3. A Transformation(One Step at a Time)

LSDs OrthopaedicsGenetics

Diagnostics

Genzyme pre-2000

Biomaterials

- 1999 Revenues: $750M

- Market Cap: $3.5B

Cerezyme

Fabrazyme

Aldurazyme

Myozyme

NiemannPick

LSDs

Renagel

Renvela

Renal fibrosis

Tolevamer

Synvisc

Carticel

Synvisc II

Orthopaedics/Biomaterials

Thymoglobu l in/

Lymphoglobu l in

Mozobil

TGF antibodies

FC gamma receptor

Transplant &Immune Disease

Thyrogen

CAMPATH

CLOLAR

ILX-651

DENSPMliver

Oncology/Endocrinology

GeneticsDiagnostics

Renal

Genzyme 2007

GelTex

12/00

Biomatrix

12/00SangStat

9/03

Ilex

12/04

IMPATH

4/04

Hylastan

Cancer

Sepra

I2S (Asia)

Reproductive Hectorol

Bone Care

7/05

WYE/Synvisc

1/05

GelTex

12/00

Biomatrix

12/00SangStat

9/03

AnorMED

11/06

Ilex/Bio-envision

12/04

10/07

IMPATH

4/04Bone Care

7/05

WYE/Synvisc

1/05

- 2006 Revenues: ~$3.2B

- Market Cap: $18B

CerezymeGabi/Epicel

CarticelPre-natal Sepra



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Who are Business DevelopmentPeople?

Top Notch Business Development Peopleare People who have an irresistible urge toMake Things Happen




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3. BD Backgrounds at Genzyme

10 MBAs (Wharton, Harvard, Kellogg)

4 PhDs Harvard PhD (Biomedical engineering)

with small cap biotech & start-upexperience

xScientist from Integrated Genetics MIT trained chemist

3 xSales Reps (Lilly & BMS)

3 JDs (Georgetown & Harvard)

2 xConsultants (Bain & McKinsey)

1 MPH (BU) & 1 MD (Missouri)

1 overly-trained individual Harvard/MIT trained MD/PhD with Big Rx,

VC & start-up experience

Anyone can

do this aslong as they

areexceptionally

strong at

S f S


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4. Key Skills for Success:Business Development

Selling Ability Listener

Organized/

Organizer

Planner

Presenter

Cold Caller

Articulate

Enthusiastic People Person

Lucky

Manager

Science Friendly

Reality Based Common Sense



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4. Key Skills for Success:General

1. Find a Cause2. Think BIG!

3. READ

VORACIOUSLY!4. Take care of yourself

5. Have a platform


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Skills for Success inBusiness Development

Kauffman Campus Best Practices WorkshopPurdue University

Ted T. Ashburn, MD, PhDSenior DirectorCorporate Development

Genzyme [email protected]

November 9, 2007

ashburn success

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