© 2012 IP Technology Exchange, Inc.1 What does a small/medium Pharma-Biotech need to do to get on “Big Pharma’s” radar? Mark McBride Managing Director, Pharmalicensing BioSynergy, FERA, January 2014

2© 2012 IP Technology Exchange, Inc. Key Global Issue BigPharma are losing exclusivity on their blockbuster products as they come off patent. This leads to ►fall in revenues, and ►pressure from shareholders as shareholder value falls

3© 2012 IP Technology Exchange, Inc. Key Global Issue – Example 1 World’s two biggest selling drugs both off- patent within last two years ► Lipitor (Pfizer): $13b annual sales ► Plavix (BMS/Sanofi): $6b annual sales In total, more than $83b of annual “blockbuster” sales as of January 2010 came off-patent within last four years. Another $150b+ due by end of 2016 Consequence: massive cuts are demanded, hitting R&D Groups.

4© 2012 IP Technology Exchange, Inc. Key Global Issue – Example 2 Last five years: Astra Zeneca, GSK & Pfizer announce: ► combined 67,000 job cuts (nearly 20% of workforce), largely from R&D ► plant closures (Sandwich / Alderley Park) ► reduction in areas of therapeutic focus ► future pipeline development driven by external acquisition/partnering of IP (opportunity)

5© 2012 IP Technology Exchange, Inc. Opportunity As Big Pharma embraces Open Innovation it puts aside its traditional “only-invented- here” attitude. Small/medium pharma-biotechs have opportunity to put themselves in front of BigPharma and highlight innovative IP.

6© 2012 IP Technology Exchange, Inc. Problem How to get on to the radar when less than 15% of interactions with Big Pharma are even reviewed? Focus: this presentation will discuss how to manage your visibility and ensure you have the best opportunity to partner successfully Source: Merck & Co, 2009

7© 2012 IP Technology Exchange, Inc. Key Points ►Understand where your IP fits into the global marketplace ►Understand what drives your partner ►Understand what partnership is correct ►What to do next

8© 2012 IP Technology Exchange, Inc. Therapeutic Areas of Interest Percentage of companies that expressed an interest (27 company sample) Source: Nature Biotechnology 2013

9© 2012 IP Technology Exchange, Inc. Global Market – Deal Stages Biotech Alliances with Big Pharma Alliances from 2005 – ,114 deals announced Stage at Deal Signing Discovery901 Lead Molecule77 Preclinical256 Phase I155 Phase II 179 Phase III 219 Approved357 Source: Deloitte Recap LLC

10© 2012 IP Technology Exchange, Inc. Global Market & your IP Where does your IP fit into the Global Marketplace? Is your IP potential strong when compared to Big Pharma’s key areas of interest? As Big Pharma is risk averse then position your proposal to best match their needs, otherwise….

11© 2012 IP Technology Exchange, Inc. Is Big Pharma correct for you? If your IP does not match BigPharma’s needs, or your partner is looking to In- License only at PIIb+ then consider Specialty Pharma instead ► Reactive ► Committed ► Consequence ► Proportional

12© 2012 IP Technology Exchange, Inc. Understand your Partner ► Shareholder needs (public/private) – are they risk averse? ► What in your USPs will excite them? ► Look at their pipelines ► Talk to their scouts as soon as possible ► Bring them solutions, not just pure science

13© 2012 IP Technology Exchange, Inc. What Partnership is best for you? Be open-minded – the market is fluid and so must you. ► Licensing (losing popularity) – be prepared to battle for significant up-fronts & milestones. ► CRADAs (gaining popularity) - gets Big Pharma in early (but not necessarily committed) - correct data generated

14© 2012 IP Technology Exchange, Inc. Action Items - 1 Have a Coherent Plan from Day 1: ► Management Team ► Understand your own IP & USPs ► What sort of Partner will be best for you? ► Understand prospective partner’s needs, and best deal structure ► Data Package (budget for this from start) ► Inject business reality & manage your shareholders’ expectations

15© 2012 IP Technology Exchange, Inc. Action Items - 2 Raise your profile: ► Build a story (benefits as well as science) ► Engage a good PR Company ► Talk to the Scouts ► Engage Opinion Leaders ► Engage Pharmalicensing

16© 2012 IP Technology Exchange, Inc. Pharmalicensing Partnering Solutions for the LifeSciences Pharmalicensing is a leading resource for partnering, licensing and business development across the lifescience and biopharmaceutical industries Through a unique offering combining Strategic Partnering Search and on-line Business Profiling services, the international biopharmaceutical, lifescience & healthcare industries utilise Pharmalicensing to identify and engage with prospective licensing, marketing and discovery/ development partners around the world.