The Biotechnology Initiative

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The Biotechnology Initiative

• Leveraging Partnerships
• and Collaborations

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Biotechnology
Basic Research Biotech Company
Sales Channel
IP Drug target Drugable compound Gene
Association Instrument technology
Commercialization Regulatory Approval Sales and
Marketing Reimbursement
Value Add Pre Clinical Development Proof of
Principle Productization
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Key Drivers
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Partnerships

• Key Principles
• Strategy based on Valuation
• Champion inside
• Act Fast
• Negotiate a Win Win relationship

Partnering vs. Acquiring
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Reality Check
Variations Limit Commercial Partnering
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Value Chain Analysis
Revenue Allocation
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Partner for Value
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Case Study

• Tm Bioscience Corp

• Top 3 Diagnostic Co

• Four genetic tests
• FDA manufacturing
• Lead USA customers
• Cost of goods _at_ 15

• Strong USA Sales presence
• Failed molecular platform
• Tm Champion(VP Bus. Dev.)
• Strong relation with Quest
• Offered 20 of revenues

• Deal or No Deal ?
• Major deal might drive valuation on announcement
• Revenues might double or triple Go it Alone
  sales strategy
• Manufacturing valuations at 1 1.5 times
  revenue
• Sales valuations at 5 15 times revenue.

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Partner for Value
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Find a Champion Inside

• Leo Pharma Inc

• Smith Kline Beecham

• Topical Antibiotic (Fucidin)
• Pondocillin Respiratory Infections
• Selexid Urinary Tract Infections
• New company
• 17 Sales Representatives
• Focus on Hospital Sales

• Topical Antibiotic (Bactroban)
• Established Company
• 47 Sales Representatives
• Focus on General Practitioner

McNeil Pharmaceuticals Les Gagnon President and
CEO
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ACT FAST

• McNeil Pharmaceuticals
• Les Gagnon President (Champion)
• Leo licenses UTI antibiotic Selexid for two
  years
• Up-Front 250,000 30 to Leo Pharma
• Exchange 250,000 for McNeil Sales Force for 4
  months
• Leo 57 (40 17) sales reps SKF 47
• Leo beat SKF (31),

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Negotiate a Win Win

• Pennwalt Corporation

• Leo Pharma Inc.

• US Company
• Limited Research
• Cough and Cold narcotics
• Barbiturates
• Diet medications
• Diuretic / antihypertensive
• 25 of Revenues
• Lose

• Danish Foundation
• Research based Co
• Antiinfectives
• Biologicals
• Cardiovascular drugs
• Dermatology
• 75 of Revenues
• Win

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Partnerships

• Key Principles
• Strategy based on Valuation
• Champion inside
• Act Fast
• Negotiate a Win Win relationship

Partnering vs. Acquiring
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Shared Partnerships

• Biotech Community
• Networking
• Education
• Mentorship
• Representation
• Investors
• Service Providers
• Suppliers

• Government
• Seed Funding
• Infrastructure
• Housing
• Lab space
• Library services
• Attract conferences
• Employment incentives
• Business Development
• Support services

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Business Partnering

• Corporate Fair
• One Company exposition (Toronto / Montreal)
• All Departments
• Focus on Biotechnology not Research
• Execution!
• Economic Development (City, Province, Federal)
• Significant market research required
• Marketing Logistics support.

David Young CEO, Arius Research Inc.
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The Biotechnology Initiative

• Leveraging Partnerships
• and Collaborations