By Karen Deyo, Investor Research Analyst, LSN

Securing a partnership with a Big Pharma is widely considered as the Holy Grail for therapeutics startups. However, companies need to consider: is this the best path forward? What does the partnership entail and how do you go about getting there? Can companies outside of therapeutics partner with a Big Pharma? At RESI Europe on March 25^th in Vienna, the Big Pharma panel addressed these questions, and more.

The panel first addressed the biggest question: should a company seek out a Big Pharma partnership? The panelists stressed the need to have a strategy in place before approaching a Big Pharma. It isn’t enough to want a partnership – the company needs to have a plan in mind for what form this partnership will take. Partnerships between startups and Big Pharma can take many forms, including support for animal or pharmacology studies to which the company doesn’t have access, clinical trial or manufacturing and optimization assistance. All of this can come in the form of in-kind partnerships, MTAs or partnerships with milestone payments, so a clear plan for the collaboration needs to be in place before approaching a Big Pharma. That being said, it is important to be flexible, as the deal may not end up as you had originally planned.

A common misconception with therapeutics companies is that engaging Big Pharma later in development is better. However, all of the panelists stressed the importance of reaching out sooner rather than later, even in discovery phase. Not only is this a good way to get on their radar, this helps build a relationship and trust, both of which are very important if a partnership is in the offing. In addition, scientists within the Big Pharma can help direct companies to the data they want to see, recommending animal models that are particularly important for their evaluation. Even if you don’t have contact with the company, the panel suggested looking at data packages the companies publish to see what models they use, and which you can use to demonstrate the efficacy of your product compared to what is currently on the market, or even to see if your therapeutic is more effective than what is currently in their pipeline.

The panel also addressed the big question of how to get your foot in the door, and what is the best way to approach a Big Pharma. The answer, for the most part, was to get in contact with BD, as these people will be your advocates throughout the process, although knowing a scientist who will champion your company is also an option. However, when reaching out to a Big Pharma, it is key to make your approach targeted and concise – make sure that you align with the strategic areas of interest for the company and make the value of your technology clear. It is also key to be honest, both about your product and about your competition – remember that the people you are reaching out to know the market very well, and know what your competition is. This also applies to companies outside therapeutics, as many of the Big Pharmas have interests in partnering with companies outside of therapeutics, such as digital health or combination devices that support their efforts. As with any investor or partner, it is important to know your audience. Below are some highlights from the panel, featuring discussions prompted by the questions listed.

The panel was moderated by Ralph Lin, Senior Director, Corporate Development at Arena Pharmaceuticals and featured:

• Olaf Koenig, Director, International Business Development at Amgen
• Florence Dal Degan, R&D Innovation Sourcing Director at Novo Nordisk
• Chris Church, Manager, Partnering & Strategy at AstraZeneca
• Natalia Novac, Director, Emerging Technology & Innovation, Corporate BD at Eli Lilly & Co.

Why partner with Big Pharma?

How early is too early to engage, if the company is still in discovery stage?

How to get foot in the door? 

Dos and don’ts?

To watch the full panel video, click here.

 

 

 

By George Kamphaus, Business Development Representative, LSN

Life Science Nation and the Redefining Early Stage Investments (RESI) conference always bring together a truly global group of attendees. On March 25^th, at RESI Europe in Vienna, the investors, channel partners and entrepreneurs present represented 31 countries, and 5 different continents. When LSN says that we have a global ecosystem, it’s not hyperbole! The Innovation Challenge finalists were equally diverse, with the presenting companies coming from 13 different countries (including Argentina – the first finalist from South America) and 5 states in the US.

The companies attending RESI, 35% of registered attendees, represented all of the silos, including therapeutics, diagnostics, medical devices and digital health, with some companies representing multiple sectors. As with all RESI conferences, the investor-to-startup ratio was 1:1, with investors as 36% of the attendees. Attendees also represented the earliest stage companies in tech hubs, as well as strategic partners, such as Big Pharma, and service providers. These demographics show that LSN has the capability to bring its global life science ecosystem to venues around the world. Next year in Europe, the goal is an even larger global reach and participation. Come join us next in Philadelphia, then Boston and wrapping up the year in Shanghai and Taipei!

An interview with Mary Ann Picard, COO of the M2D2 Incubator – By Greg Mannix, VP of International Business Development, LSN

One of the clear trends in Life Science funding is that investors are taking a keen interest in earlier and earlier-stage companies. Some investors will put money in at a very early stage, while others will come in a bit later, but what is very clear is that they all want to identify the most significant new technology breakthroughs in the life sciences and put those companies on their radar as soon as possible.

A majority of these hot, early-stage technologies are being developed in tech hubs all around the world. The Redefining Early-Stage Investments (RESI) conference series is an excellent opportunity for these Tech Hubs to gain visibility among investors who will want to track the technologies being incubated and accelerated in their facilities. This is why at LSN we have made a purposeful effort to create a nexus between these two key players in the life science ecosystem.

I recently spoke to Mary Ann Picard, COO at Massachusetts Medical Device Development (M2D2) Center about how RESI plays a part in the success of her program and its constituent companies.

Greg Mannix: First of all, I consider M2D2 a perfect example of a Tech Hub. Could you give me some context as to what M2D2 is?

Mary Ann Picard: M2D2 is an incubator program for medical device and biotech early stage startup companies. M2D2 is a joint project with UMass Lowell and UMass Medical School. No affiliation with UMass is required and no equity taken. Resident companies have access to a whole host of university resources and mentors.

GM: M2D2 has participated in several RESI conferences with a table in the Exhibition Hall. How does that visibility benefit your project?

MAP: The visibility is extremely beneficial for us. It helps us maintain a pipeline of resident companies and it provides ample opportunity to meet potential investors and industry partners.

GM: Did you meet with any early-stage investors while at RESI? If so, what is your goal for these meetings?

MAP: Yes, we did. Our goal is to match them up with early stage startups in their specific areas of expertise.

GM: By virtue of your presence at RESI, M2D2’s constituent companies have been able to attend the conference at a discounted price. Is this an opportunity that your companies have taken advantage of?

MAP:  Yes, they have taken advantage of the discounted price on several occasions.

GM: Any other observations?

MAP:  RESI provides a setup that is supportive to startups and conducive to establishing investor and business relationships.

With years of both business development and fundraising experience, Mary Ann Picard’s objective is to combine these areas of expertise to establish interaction among entrepreneurs, inventors, scientists, industry, investors, state agencies and others to contribute to a rich entrepreneurial business ecosystem in the Commonwealth.