Collaborations between pharma industry and academia as drivers for innovations

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1 Collaborations between pharma industry and academia as drivers for innovations Dr. Monika Lessl Director Alliance Management Global Drug Discovery Bayer Schering Pharma Berlin, Germany Deutsch - Brasilianische Wirtschaftstage München 1. Juni 2010 Page 0

2 Overview Bayer and Bayer Schering Pharma in Brazil How to foster Innovation the translation of ideas into products Our approach Summary - Innovation Sourcing Strategy - Innovative collaboration- and partnership models - Professional alliance management - Fostering collaborative skills and mindset Page 1

3 Bayer AG Group Structure Holding company Bayer AG Group Management Board Corporate Center Subgroups Service Companies Bayer HealthCare Bayer CropScience Bayer MaterialScience Bayer Business Services Bayer Technology Services Currenta Page 2

4 Bayer HealthCare Divisions Consumer Health Animal Health Specialty Pharmaceuticals Consumer Care Bayer Schering Pharma* Medical Care * USA/Canada: Bayer HealthCare Pharmaceuticals Page 3

5 Bayer Brazil: high commitment and long history employees Bayer HealthCare - Global Pharmacovigilance - International Clinical Trials São Paulo: 50 years HQ: 36 years + HealthCare Production: 50 years + Technical Laboratory MaterialScience Paulínia: 7 years Development Center CropScience Belford Roxo: 51 years MaterialScience Production + CropScience Porto Alegre: 23 years Production and Development Center HealthCare Page 4

6 Key roles for the success in Brazil and in the world Brazil is the development pole in Latin America Management of CropScience and MaterialScience businesses from Brazil to the entire Latin America region Worldwide center of Pharmacovigilance for Bayer HealthCare , 70 new professionals were hired for the area expansion Key role in the medicines/r&d IT Service Support for Latin America region Page 5

7 Bayer Schering Pharma built a Global Pharmacovigilance Center in Sao Paulo Qualified staff /talent pool available Low attrition Proven PV expertise, quality and compliance Relevant Regulatory Authority in Brazil Strong support by local management Good IT infrastructure Available space Very good reputation of Bayer Page 6

8 The team in Sao Paulo displays a strong will to achieve and exceed goals The team has defined its mission, vision and values: Vision To be a high performance Centre of Excellence in Pharmacological Surveillance, becoming local and global reference in an inclusive and stimulating environment. October 2009, celebration with GPV team, local and global management Page 7

9 Overview Bayer and Bayer Schering Pharma in Brazil How to foster Innovation the translation of ideas into products Our approach Summary - Innovation Sourcing Strategy - Innovative collaboration- and partnership models - Professional alliance management - Fostering collaborative skills and mindset Page 8

10 Innovation Sourcing Strategyfrom technology transfer to know-how interchange Strategic focus on alliances and collaborations which will generate innovation by - fostering real partnerships with academic institutes, research organisations and biotech companies - creating mutual benefit for both partners by complementing expertise and skills - fostering know-how interchange instead of one-dimensional knowhow transfer by Innovative Partnership and Collaboration models Professional alliance management Fostering collaborative skills and mindset Page 9

11 Innovative partnership models our Grants4Targets Initiative Background Numerous targets exist, but are invisible for us The knowledge outside > inside Idea Join forces with academia and biotech start ups to translate innovative targets into drugs Provision of bridging grants to evaluate and validate novel targets Grants 4 targets Approach Easily accessible Internet site and submission tool Low bureaucratic burden for both partners Clear communication on needs - what are we looking for? Fast processing of requests Target Discovery Lead Generation Lead Optimization Preclinical Phase I Phase II Page 10

12 InnovativePartnership models - Next Deadline September 30, 2010!! Page 11

13 Grants4targets innovative process short timelines Submission of proposal by PI via G4T website Scientific evaluation by BSP scientists Grant decision by G4T committee if Yes Send out grant approval letter Nominate BSP scientist as internal project champion and contact Project start if No provide information to PI quickly 8 weeks after submission deadline Page 12

14 Novel partnership models: Strategic alliance Bayer Healthcare and German Cancer Research Center Largest biomedical research center on oncology in Germany Collaboration along the entire drug discovery and development value chain Novel risk and reward sharing approach to collaborate Joint financing (1 mio /year/partner) and selection of projects (9 Joint Projects) An ideal partnership due to high strategic fit and complementary competencies translating basic research into application NCT Heidelberg bench bedside translating clinical information into basic research Page 13

15 From technology transfer to know -how interchange Technology Transfer IP is created at universities small percentage out of the total IP generated technology transfer (licencing) to industry Know- how interchange Academia Industry Alliance generate joint IP increase value value proposition of of IP IP by bycontinued collaboration Page 14

16 Innovation Sourcing Strategyfrom know-how transfer ot know-how interchange Innovative Partnership and Collaboration models Professional alliance management Fostering collaborative skills and mindset Page 15

17 Causes of alliances failures Page 16

18 Professional Alliance Management RESOLVE model - KSFs for collaborations in drug discovery Lessl & Douglas Wissenschaftsmanagement 2, 2010 Page 17

19 Innovation Sourcing Strategyfrom know-how transfer ot know-how interchange Innovative Partnership and Collaboration models Professional alliance management Fostering collaborative skills and mindset Page 18

20 Fostering Collaborative Skills and mindsetanalysis of Core skills for alliance management Most important skills for collaboration and alliance management out of a skill set of 67 skills and competencies (Lominger s Leadership Architecture Libray) Lessl, 2010 Page 19

21 Fostering Collaborative Skills and Mindset Analysis of Core Competencies for Alliance and collaboration management revealed 10 Core Competencies which can be categorized in 4 main areas Relationship management - Peer relationships - Negotiating - Directing others - Integrity and Trust Conflict management - Conflict management - Problem Solving Positioning skills - Organisational agility - Innovation management Cross Cultural Skills - Managing Diversity - Cross cultural Sensitivity Initiation of tailored trainings to foster collaborative skills and comptencies Page 20

22 Summary Brazil is the development pole for Latin America and offers access to a talent pool of highly qualified people providing the basis for innovation Partnerships with universities, research institutes and biotech companies are key to address future challenges in innovative drug discovery New models are needed to promote flexibility, openness and know-how interchange as a basis to generate value from collaborative efforts To promote collaborations between industry and academia professional alliance management has been implemented on both sides taking into account key success factors summarized in the RESOLVE model The ability to identify partners with complementary skills, expertise and objectives (strategic fit) is key for successful partnerships Generation of value from collaborative efforts requires appropriate skills and competencies in addition to scientific expertise Page 21

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24 Forward-Looking Statements This presentation may contain forward-looking statements based on current assumptions and forecasts made by Bayer Group or subgroup management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Bayer s public reports which are available on the Bayer website at The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments. Page 23