1. Issue 12 | June 2010www.plg-uk.com Business Development & Licensing Journal For the Pharmaceutical Licensing GroupsFollow-on biologics Co-marketing: a successful model Trends in dealmaking Finding new products to license ADVERT Plan B: when negotiations fail

2. Finding new products to license There are many ways to get advice on best practice for product selection, deal structure, contract negotiation and partnerships, but little on where to find the products to license and partners to do business with in the first place. Fortunately, technology can help. By Asa Cox, founder, Generic Licensing Big pharma and generics used tomade to feel more substantial by the multipledo battle at patent expiry; now weautomated emails churning out thesee the companies playing in each same story. others sandpits more often. Big pharma isWhy is this? Is it because too few of the jumping into established products as a way products available are attractive? Is it because of utilising brand equity and oversized salesthere is not enough money to acquire new forces. Generics are adding value to older products? Is it that deals are frustrated due products through formulation development to lack of capacity or capability? Or is it that and need marketing to add a barrier to entry everyone is competing with each other to do for copycat products.deals with the same companies for the sameHistorically mergers and acquisitions products? have been a key means of growth for the Our hypothesis is that there are many dominant players on both sides; productstones left unturned, and that as emerging licensing deals have been the major force in markets and technologies begin to dominate more recent years and it is likely to remain other industries, so pharma needs to use that way for as long as shareholders want to different ways to exploit the potential of see results and not just potential.both.Of course with licensing, profit margins are reduced, as is research and developmentThe challenges kudos (a factor that now seems to have There are challenges to overcome. Common been rightly exchanged for a closer focusissues include the fact that engaging on commercial value). Time to market, risk potential partner organisations in emerging and tactical fit are good enough reasons tomarkets can be hard work, with differences make such concessions. For those without in language, business culture, commercial a pipeline to perk up sluggish share prices it experience and ethics. In addition, when About the authoris a matter of survival. Licensing is not to beit comes to new technologies and partner Asa Cox is founder of genericlicensing.com, viewed just as ventilator though, more like achannels some will work; some wont. You the pharma industrys first searchable internet Statin or an Aspirin for those of longer tooth.need to know what the acceptable risk/ database of generic products available for investment for progress or future return is. licensing. He is a dedicated web evangelist Finding potentialAnd breaking the mould can be a lonely and online networker. Asa is also a Director of Given the numbers involved in theventure, with unfamiliar situations and IPG Pharma, a 13-year-old technical servicescombination of human ailments, healthcareunfamiliar faces. Everyone prefers the company based in Berkshire. companies and research strands, one wouldcomfort zone. T: +44 (0)845 453 1363have thought there would be a torrent of As Confucius said: I know why the path E: asa.cox@genericlicensing.com licensing news flooding our email inboxesis not trodden; the clever ones overstep it on a daily basis. But it is really just a trickle, and the stupid ones do not reach it. For20 Business Development & Licensing Journalwww.plg-uk.com 3. some companies, the drive for efficiency in too late and now everyone will be keeping anTo find new deal-making channels means the business eye on them. development teams back into tried and Some of the larger data houses and partners or products tested sources and techniques. Such platforms are beginning to realise they areand to avoid license companies believe that they already know the best places to find products and expect that behind with regard to partnering. Recently developments have seen the integrationauctions, it is highly tuned management systems will driveof user-specific information with editorial, important to seek the licensing teams to be more productive.combining lead searches with contact lists tonew opportunities They step over the path.create a more dynamic environment. TheseOther companies believe that licensing innovations are the only way in which such in uncharted waters. a new product is easy, and is a matterconglomerates are going to survive against Everyone needs of keeping an eye on the industry press, attending as many conferences as possible, the onslaught of free web products. There are, however, a few sites thatdifferentiation and working the rolodex and networking. Theyproactively seek out new companies innovation. do not reach the path.that have products to license and needTo find new partners or products and help getting more visibility. These include to avoid license auctions, it is important to pharmadeals.com, pharmalicensing.com, seek new opportunities in uncharted waters. pharmaprojects.com, sourcegenerics.com These ideas are not just relevant for big and farmavita.net. On some of these sites pharma or generic giants; everyone needsit is possible to save searches and have new differentiation and innovation. There are companies that match criteria sent via email existing opportunities and future venturesautomatically, so you need only visit once to that could unearth the new opportunities, get a stream of potential leads. The internet including online databases/portals, is now the first place companies research virtual partnering forums, internet speed potential new marketing partners. networking, niche partnering events and collaboration platforms.Virtual partnering forums Although there are a few events in the Online databases/portalscalendar already, this is going to be an Companies that offer deal data are nothingarea of massive growth in coming years. revolutionary; the advent of online news feed Modelled on real-world conference centres, aggregation means that press statements are each has exhibition booths with multimedia distributed from every angle instantaneously. displays and live chat (with video and voice if While such news sites can provide a lead list desired), keynote speaker presentations and of active licensing companies, the fact theynetworking lounges. are announcing a deal normally means itsImproving broadband connections, >>www.plg-uk.comIssue 12 | June 2010 21 4. To discover unknown companies and exciting products, one needs to get out of the zoo and into the jungle. Such exotic terrain requires a specialist tour guide. >> streaming media and browser-based 20 minutes over 2 hours) and not have toapplications are all making virtual reality even leave the office?a much richer and more stimulating Webcams, Skype and simple webenvironment.interfaces will soon enable licensing teams,Reduced budgets, increased focus on brokers and industry associations to host wellcarbon footprints and greater time pressuresresearched events that have a better thanare all factors which count against the average return on time invested.traditional big shows and live partneringevents. This pressure is increased when Niche partnering eventsconsidering emerging markets with excellent Bigger isnt always better. The giantIT infrastructure and executives that are a partnering events like Bio, while enablinglittle less inclined to travel or blow budgets on thousands to meet under one roof, is focusedonly a few trips a year.on volume of attendees and meetings. ToEvents already in the calendardiscover unknown companies and excitinginclude bioconferencelive.com,products, one needs to get out of the zoopharmapartneringlive2010.com, and into the jungle. Such exotic terraincardiocarelive.com and informex.com/virtual.requires a specialist tour guide; one withSome of the larger pharma companies local knowledge and a connection with thenow have their own partnering web environment.presence; although not well promoted, they There are already a number of key eventsprovide a 24/7 opportunity for engagement on the calendar in high-growth markets,and information sharing with potentialincluding innchinc.com/wpcs2010, cphi-sa.partners. Expect to see many more of thesecom, eilat-aeds.com and kenes.com/ipa.virtual meeting spaces as a cost-effective wayWe can expect to see an increased focus onto attract interest from every corner of thetherapy areas and research and developmentExpect to seeindustry. technologies.many more virtualInternet speed networking Collaboration platforms meeting spaces as aSometimes introductory meetings can takemuch longer than necessary or desired andThe future of licensing deals, ie one companyacquiring the rights to anothers intellectual cost-effective way tocan be especially unproductive if they are part property, is a model that will morph as attract interest fromof the mandatory requirements of partnertechnology and business structures develop.every corner of theevents. What better than to have multipleIn other industries where innovation,consumer (patient) alignment and long-term industry.meetings in a short space of time (say everyvalue is a high priority, companies are joining22 Business Development & Licensing Journalwww.plg-uk.com 5. together in collaboration like never before.networks may not be an effective channel Given the global Web 2.0 is about integration, open source and user content creation. Business 2.0 (or into the new opportunities. To connect with the developers of tomorrow is going tospread of future more like 200.0) will mimic this trend, asrequire a more high-tech approach. intellectual workers, corporations seek to compete with the next The internet is making the world andpersonal contacts Facebook/Spotify/Apple of their space and every industry smaller; companies from start-ups discover game-changing ways toevery corner of the globe should be seekingand networks may work together, disrupting the establishment.ways to do business with each other before not be an effective How will the pharma industry look in 10 years time? How will that affect licensing? someone else does.If, as forecast, the BRIC countries are goingchannel into the new Pharma is founded on research and to dominate the future economy, are youopportunities. development (more development inalready connected in those markets? If not, generics) and finding better ways to bringwhy not? If, as forecast, technology is going more products to market. One way that to change the face of all industries, including the corporate model could be challenged pharma, are you investigating how you can is through the creation of loose networks get ahead of the game? If not, why not? of specialist teams and individuals for Tomorrows deals are not going to wait for specific projects, or to harness a unique joint you. capability.In the future, the products to license are With such experts having access tonot going to be found in the same places powerful technology infrastructure andas yesterday or today. The individuals and a willingness to achieve more through countries that will create the products of collaboration, licensing deals may be donetomorrow will be better integrated with with individuals or specific business vehicles. technology and more accessible to those who embrace the same. The future There are already more innovative ways The future integration and collaboration of to engage with new partners with new development bodies could make deal making products; it just takes a little step out into the a lot more complex. Such open platforms unknown, to depart from the old school and could also mean that options and sponsorshipadopt some new tools. or other commercial tools could tie up the best minds before the products reach the licensing space.Given the global spread of future intellectual workers, personal contacts andwww.plg-uk.comIssue 12 | June 2010 23