jan twombly, csap and jeff shuman, csap, phd · the rhythm of business overview embed partnering...

Jan Twombly, CSAP and Jeff Shuman, CSAP, PhDSession 502

ASAP 2020 Global Alliance Summit

© 2020 The Rhythm of Business, Inc.

The Rhythm of Business OverviewEmbed partnering throughout the organization.

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REPRESENTATIVE CLIENTS

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● Present the opportunity digital health represents for alliance managers

● Introduce tech and biopharma alliance managers to each other’s world

● Examine what it takes to bridge the digital divide between tech and biopharma

3

The Underlying Assumption of Digital Health for Patients

Digital has the potential to improve the health of millions of patients and radically change the way health

services are delivered by

● Focusing on prevention versus treatment

● Reimagining the patient-provider relationship

● Involving patients in the development of personalized health solutions


Digital technologies help biopharma companies

innovate new products and services, engage better with

patients, providers, and payers, and operate their

businesses more effectively

The Underlying Assumption of Digital Health for Businesses

Digital health gives info tech companies an exciting market

worth $96B in 2018 and projected to reach

approximately $510 billion by 2026

Source: Acumen Research and Consulting


Digital Therapeutics

Health Information Technology

Devices, Sensors

Informatics

AnalyticsTelehealth

Personalized Healthcare

Virtual Clinical Trials

The Digital Health Ecosystem is Maturing

Key statistics from 2019 ● $7.4B in digital health investments● Six IPOs worth $17B in total● Over 100 acquisitions

Other milestones● Market authorization for novel

products such as a digital therapeutic in oncology

● New Industry groups (DTx Alliance)● Launch of prestigious journals

(Nature, Lancet)

Source: Digital Healthcare Growth Drivers in 2020, Forbes, January 2020



An Explosion of Digital Health Innovation

Early research in antibiotics assisted with AI

Automated A.I. guided drug design

Analyze data from smartphones and connected sensors aimed at

uncovering novel digital measures of health

Use Qualcomm’s 2net platform to improve an anticoagulation meter

for the US market

RWE analytics to support label expansion

AI to reduce cost and time of drug development

7

Tech and Biopharma: Two Innovative Industries that Innovate Very Differently…


Iterative, agile product development

Rapid development timelines

Move fast and break things

Mobile first

Minimal regulatory concerns

Methodical, waterfall development

Long development timelines

Do no harm, safety first

Complex manufacturing

Heavily regulated

8


Increasingly solution focused

Sell with and through, co-selling a new muscle

System integrators or distributors bring multiple products together for the customer

Embed technologies (OEM) in others’ products and white label

Land, adopt, expand, renew

…Go To Market Differently…

Primarily product focused

Significant co-promotion and co-marketing on a global scale

Co-development the norm

Combination therapies

Product-based lifecycle management

9


Structured partner programs based on focus of efforts

May or may not have a contract other than the terms of the partner program

Lots of partners doing similar things

Build the stack through APIs

Traditionally either get- or go-to-market

…And Partner Differently

Individually negotiated alliances

Detailed long-term contracts and sub-agreements

Each alliance is unique

License individual assets

Partner from research to commercialization

10

No Wonder Tech and Biopharma Alliance Managers Have Different Jobs!


High TechDrive Revenue

Develop New Opportunities

Gain Resource Commitments

Engage the Field

Build Out the Ecosystem

Biopharma

Maximize Value and Minimize Risk

Negotiate Amendments and New

Lead Governance

Enable Executive Decision Making

Manage Contractual Restrictions

11

Bridge Differences to Create New Value in Digital Health Alliances

Digital Health

AllianceHigh Tech Biopharma


Digital Health Case Study

● Alliance is between a tech company and a traditional big pharma company

● The pharma company will leverage the tech company’s Internet of Things (IoT) platform to co-develop digital products (apps & digital devices) and collect Real World Evidence (RWE)

● The partners will co-commercialize the digital products as non-exclusive companions to the related pharmaceutical therapeutic

● The digital products are intended to help patients manage symptoms related to their therapy and help them communicate with their care team

● Patients will be provided with a personalized care plan


What is the Value Assumption?

Customers

● Patients—Applications that help them better manage their disease

● Providers—Data that helps them give better care to their patients

● Payors—RWE of efficacy of the therapy

Tech Company

● The value of its platform increases with the number of products connected to it

Biopharma Company

● Real World Evidence

● Patient Adherence

● Time to Market

● Access to Expertise


What Is a Likely Alliance Business Model?

Economic Model

● Software subscription

● Revenue share from Tech Company to Biopharma when marketed

● Dedicated resources from Tech company

Operating Framework

● Joint development project team

● Independent go-to-market

Governance Process

● Joint Steering Committee for strategic oversight

● Each party makes its own decisions

Collaboration

● Align on intended outcomes, regulatory pathway, decision making processes, go-to-market messaging


What Are Some of the Challenges Inherent in the

Business Model?


A Few of the Challenges

● Economic model more akin to “vendor” model for biopharma

● Organizational structures don’t align, making it harder to identify who should work with whom

● The biopharma requirements of safety and quality are not part of the tech operating focus

● Regulation is new to tech and regulation of digital health products is new for all

● Biopharma alliance governance is bureaucratic

● Trust building, developing understanding must be intentional and worked as a muscle


How Should the Alliance Managers Work Together

to Bridge Differences?


Leadership

• Build a “third way”• Maintain organizational

commitment• Champion each other

Collaboration

• Convene the right people• Listen to understand• Leverage each other’s strengths

Governance

• Be transparent about decision making process

• Rigorous stakeholder management

• Align on evidence standards

Outcomes

• Align on a North Star• Agree to milestones and

metrics• Make status against plans

visible to all

Apply the Alliance Management Foundation


How Should You Bridge Cultures?

Digital Health

AllianceHigh Tech Biopharma

Assume

best

intentions

Explain

your world

– visually

when

possible

Provide

alternatives

when

something

won’t work

Pay attention

to the

elephant in

the room

Work at

trust

building

Celebrate

success,

learn from

mistakes



Tips and Traps to Bridge the Digital Divide

● Allowing stakeholders to think a digital health partnership is like all the others they’ve worked in and that they can maintain the status quo

● Not appreciating and leveraging the core strengths each brings to the alliance

● Failing to be a champion for your partner and the promise of digital health for both technology and biopharma companies

TIPS TRAPS

● Take the time to develop understanding of how each partner innovates, goes to market, and what partnership looks like for them

● Understand your counterpart’s focus and core responsibilities

● Use the Alliance Management Foundation to help you and your counterpart decide how to work together to bridge differences

21

You are partners because you are different and together you can innovate, create value, and

learn new stuff



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jan twombly, csap and jeff shuman, csap, phd · the rhythm of business overview embed partnering...

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