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COMPETITIVE INTELLIGENCE WORKSHOP
CTN – CISTI - FPTT
February 14, 2001
Competitive Intelligence in Life Sciences Sector
A Case Study – ParaTecH Therapeutics Inc.
Godfrey Marchand; Manager, Business & Administration, IBS
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CONTENT
Background on the case
Process we followed
False starts and lessons learned
Impact of CI on planning
Information sources
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OBJECTIVES (What I hope you get from the talk)
Multi-dimensional nature of CI
Impact of CI on strategic and operational planning
The need to identify Decision Makers (drivers)
The need for analysis – segmentation
Some tips on information sources
Keep it up to date
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BACKGROUND
(1993 – 1996)
A tissue engineering project that had been terminated
Continued as a ‘skunk works’ project for 3 years
Exploiting the bone generating properties of PTH
Research and technical successes
No business evaluation
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BACKGROUND- Osteoporosis the disease
Gradual deterioration of bone as we age
Bone is continually ‘remodeling’
Two cell types Osteoclast/Osteoblast
Aging and menopause - imbalance
More bone resorption than bone formation
Asymptomatic ‘silent disease’
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BACKGROUND– Current Treatment
All current treatments are Anti-resorptive
Work by slowing down the bone remodeling process
They are effective Anti-resorptive,… however
They can not restore lost bone
Fewer than 10% receive any treatment at all
Fewer than 1% comply sufficiently to be effective
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BACKGROUND: Statistics:
One of every two women will suffer a Fracture
One of every eight men will suffer a fracture
100 million to 200 million at risk
Hip fracture alone costs $14 Billion/year in US
Costs will increase to $130 billion by 2050
World Therapy market is $4 Billion/year
Market will grow at 15% compounded annually
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BUSINESS EVALUATION - 1997
No effective product/Large unmet need
Bisphosphonate success
All major pharma companies interested in disease
More than 140 products in the pipeline
Very few products true anabolics
We planned a strategy to license the product
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PROCESS –LICENSING
Established criteria for the prospective partner
We researched the 10 to 15 large Pharmas based on criteria
CI consisted of:
Purchased information, Edgar,
ReCap, Scientific Literature
Company publications Market information
Patent data bases Some contacts
Selected 5 target companies
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PROCESS –LICENSING
Licensing package:
Described technology, research results
We determined our product strengths
Presented our strong patent position
Presented the market study
Tailored presentation to each company
We had studied their portfolio
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PROCESS –LICENSING
Had completed a valuation different measures
Had received the mandate from IBS management
Initial contact, non-confidence
Visited each Company under confidentiality
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LICENSING PROCESS:
From Feb 1997 to Jun 1998
Large Pharma Companies:
AHP, HMR, Astra, RPR, Roche, Sanofi
Small to mid Pharma:
Ares Serono, ICN Pharma, Debio
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LICENSING PROCESS - CI Lacking
Product related:Concern with injectibles
The PTH Uncertainty
Perception of the stage of our product
Manufacturing process unknown
Unknown stability
Weak Product differentiation/advantage
The need to repeat everything we had done
The pharmacoeconomics Patents were still ‘pending’
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LICENSING PROCESS - CI Issues
Industry knowledge
Big pharma dynamics/Who to talk to
Identifying the champion in each company
The company investment approval processes
We knew little about the regulatory process
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LICENSING PROCESS - CI Issues
Other Issues
Industry Consolidations
Perceived high investment requirement
High current investment in the category
Regulatory barrier
Timing issues
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IMPACT ON PLANS
We recognized that we could not take the next steps easily within NRC
For various reasons the Institute wanted to spin-off the technology
Recognized we did not have the in-house expertise
Identified a partner who has expertise synergistic to NRCs
We addressed each Issue from our licensing experience.
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LICENSING PROCESS - CI Lacking
Product related:Concern with injectibles
The PTH Uncertainty
Perception of the stage of our product
Manufacturing process unknown
Unknown stability
Weak Product differentiation/advantage
The need to repeat everything we had done
The pharmacoeconomics Patents were still ‘pending’
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LICENSING PROCESS - CI Issues
Industry knowledge
Big pharma dynamics/Who to talk to
Identifying the champion in each company
The company investment approval processes
We knew little about the regulatory process
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LICENSING PROCESS - CI Issues
Other Issues
Industry Consolidations
Perceived high investment requirement
High current investment in the category
Regulatory barrier
Timing issues
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Competitive pipeline
Antiresorptives:Many antiresorptive products being launchedMost from same class as current
AnabolicFluoride - no significant entriesIGF - 6 projects in the pipeline
Merck is the most significant, Phase II
Several genomics based projectsAll in research stage but several will likely be successful
PTH
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Competitive pipeline
PTH
Eli Lilly 1-34 Phase III?
NPS-Allelix Starting Phase III
Aventis, Rhone Poulenc
Takeda, Suntory, Korea Green Cross
Most companies have a PTH program now
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OUR PRODUCT POSITIONING
We see a clear distinction between treatment & prevention
We will be positioned in the treatment market
We will be the second or third product in the market
Strategy will be the next generation, safer, more effective product
Our research indicates that to be a significant feature for this product with the clinician
A next generation ‘oral’ product will target both prevention and treatment
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CI SOURCES:
Market research web sources:
Edgar Strategis ReCap
Biospace SEDAR NIH
CISTI Medline Yahoo Finance
Biospace-Canada Derwent IBM
USPTO MicroPatent Alert Each Co www
AUTM Associations Generally
Personal News Sites
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CI SOURCES:
The real sources (People):
Your network, Conferences Industry Associations
Prof. Assoc Lawyer Accountant
Peers Consultant Ven Caps
Entepreneurs Your management Experts
Community leaders IRAP TT experts
Your network is Key to your success; Get involved
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CI SOURCES: Other
Directories
Financial pages
Personal news pages
Conference audit pages
Scientific Journals
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