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VOLUME 38 NUMBER 01 JANUARY 2020 Connected Strategies Are A Tale Of Two Pipelines AstraZeneca’s Fredrickson Vital For Medtechs In 2020 On Its Cancer Ambitions PAGE LEFT BLANK INTENTIONALLY invivo.pharmaintelligence.informa.com STRATEGIC INSIGHTS FOR LIFE SCIENCES DECISION-MAKERS CONTENTS ❚ January 2020 8 COVER ❚ In 2020 ESG Is Not A Tick-Box Exercise But An Opportunity William Looney The idea that public corporations have obligations that extend beyond the fiduciary responsibility to shareholders will be the dominant measure of responsible business behavior in the coming decade. Uncertainty about the extent of these commitments – commonly referenced as the environmental, social and governance (ESG) agenda – has produced equally variable responses from companies in the health care business. 14 20 24 A Tale Of Two Pipelines Bayer US Pharmaceuticals’ Connected Strategies Are Vital DENNIS CHANG, KEITH FLAHERTY AND Sebastian Guth: Designs On For Medtechs In The Consumer- UCIANE SCARLETT A New Decaden Led 2020s Immuno-oncology has produced some WILLIAM LOONEY ASHLEY YEO exciting successes, but the field has Bayer’s ambitious campaign to Discussions on the shape of health care become intensely crowded. Enormous reposition itself as a global leader in two have moved from “reimagining” to the resources are being poured into complementary fields – health and next stage: building and executing on the duplicative work and shaky hypotheses— nutrition – will face its toughest test in vision. That is the thrust of EY’s NextWave overshadowing other pursuits in cancer the US, with its highly litigious approach Report: New Horizons 2019. Additionally, research while producing limited results. to product liability and a tendency to for medtechs seeking business continu- It is time to re-evaluate how the sector target pharmaceuticals as the source of um, “duality” is now a preoccupying should be pursuing innovation in cancer the health system’s affordability and thought. and how it can be smarter in its use of access problems. resources—financial investment, talent, bandwidth, patients and data. 30 AstraZeneca's Fredrickson On Its 28 Cancer Ambitions Roche/Genentech Partnering ALEX SHIMMINGS Team: One Face For The World Just over a year ago AstraZeneca at last To See returned to growth and set about a reorganization that placed oncology at the LUCIE ELLIS heart of its plans for continued success. In Thomas Zioncheck, global head of Vivo talked to the executive vice-president neuroscience, ophthalmology and rare of its Oncology Business Unit David diseases, Roche Pharma Partnering, talks SEBASTIAN GUTH Fredrickson about how the company to In Vivo about Roche and Genentech’s hopes to become a major cancer player. united partnering group, 2019 successes, and highlights ahead for the big phar- ma’s neuroscience pipeline. ©2016 Informa Business Information, Inc., an Informa company January 2020 | In Vivo | 1 ❚ CONTENTS January 2020 DEPARTMENTS ❚ From The Editor AROUND THE INDUSTRY In this first issue of a brand-new decade, In Vivo 4 Executive Briefing: C-Suite And has filled its pages with a variety of content, Investors Discuss A New Decade from C-suite interviews to productivity over- WILLIAM MASTERS views and strategy analyses. 6 When Will POC Really Be On At the close of 2019, we published the annual The Cusp Of Major Uptake? Outlook issue which comprises 10 chapters of ASHLEY YEO original content, including the most recent Scrip 100 and Medtech 100 company perfor- 34 ON THE MOVE mance rankings. All of this content can be Recent executive appointments found in one place on our website: invivo.phar- in the life sciences industry LUCIE ELLIS maintelligence.informa.com/outlook. REGINA PALESKI Meanwhile, looking ahead into the new year, we have published a selection of thought leadership articles online that analyze the year ahead, predict- 38 DEAL-MAKING ing key trends and discussing hot topics like gene therapy M&A targets and Deals Shaping The Medical Industry, the advancement of digital tools. December 2019 THE STRATEGIC TRANSACTIONS TEAM The start of 2020 also marks a few changes at In Vivo Headquarters. William Looney has retired from In Vivo, however he will still be involved with the publication as a new member of our Editorial Advisory Board. The advisory board itself is undergoing some changes – look out for exciting announce- EXCLUSIVE ONLINE CONTENT ments about this in our February issue. invivo.pharmaintelligence.informa.com Succeeding William as In Vivo’s executive editor for biopharma is Ben Comer, who joined the team on January 6, 2020. Prior to joining us, Ben was a senior ❚ AstraZeneca Veteran Returns To manager in PwC’s Health Research Institute. Previously, he was a journalist Biotech With Fresh Goals For A with Pharmaceutical Executive; Medical Marketing & Media, PRWeek and Di- New Decade rect Marketing News; and Ad-Fax Media. LUCIE ELLIS Finally, January see us launch the annual Deals Of The Year contest. Voting is open in the three categories for 2019: Top M&A, Top Alliance and Top Fi- ❚ Gene Therapy Companies Among nancing. The winners will be announced in February. Don’t miss your Top M&A Targets In 2020 chance to vote, go to our homepage for full details of the nominees. ANDREW MCCONAGHIE ❚ What Does 2020 Hold For Biopharma? In Vivo: Always Online First Don’t have an online user account? JOSEPH HAAS AND Quickly and easily create one Relevant and exclusive online-only ELEANOR MALONE by clicking on the “Create your content at your fingertips 24/7. account” link at the top of the page. Full access to our 36-year archive. ❚ The Role Of AI In Signal Detection Contact: MIRANDA GREENHALGH Access your subscription by visiting: [email protected] invivo.pharmaintelligence.informa. or call: (888) 670-8900 or +1 (908) ❚ What The New Decade Could Bring com and log in. 748-1221 for additional information. For Alzheimer’s Treatment ANDREA PFEIFER All stock images in this publication courtesy of /invivo @invivo /invivo www.shutterstock.com unless otherwise stated. 2 | | January 2020 invivo.pharmamedtechbi.com In Vivo invivo.pharmaintelligence.informa.com invivo.pharmaintelligence.informa.com CONTENTS ❚ ❚ Up-Front SNAPSHOTS FROM JANUARY’S CONTENT Every partnership is unique, “a rulebook approach is not useful now that the overall climate for drug development is so fast- Given the widely held view paced and competitive” that medicines, devices PAGE 20 and diagnostics are public – Sebastian Guth goods, pharma and medtech companies face a high credibility bar on environmental, social and governance activities. A tremendous amount of It is no longer standard capital and human resources practice to assign the ESG has been consumed by portfolio to the corporate policy team. PAGE 8 immuno-oncology, and there are signs that exuberance for immunotherapy has become The future of health lies “ I want to let partners with technology. Within unsustainable. PAGE 14 2010 2011 2012 2013 2014 2015 know that we’re very the health care industries, 120% open to partnering new investors have been among 100% technologies, across the first to act on this 80% neurodegeneration, realization, funding health 60% tech, practice management 40% neuroinflammation and 20% neuromuscular diseases” and home health care ever 0% PAGE 28 more concertedly over the Amount of royalties/milestones not disclosed – Thomas Zioncheck past decade. PAGE 24 Note: Bubble size represents vale of upfront payment ©2016 Informa Business Information, Inc., an Informa company January 2020 | In Vivo | 3 ❚ Around The Industry Executive Briefing: C-Suite And Investors Discuss A New Decade From the US election to being over-focused on oncology, from the promise of artificial revenue stream. intelligence to private funding in Europe – there were a range of issues and opportuni- “All over the world, especially in the ties discussed at In Vivo’s inaugural executive briefing. emerging markets, they are all running out of money. Health care budgets are Having a commercially relevant drug completely challenged – they haven’t got means having a product that is “afford- any money at all. So even if you go into able and accessible,” said Roel Bulthuis, ❚ PANEL SESSION: specialty pharmaceuticals, if you go into managing director of INKEF Capital. “As BIOPHARMA STATE OF rare diseases, they cost anywhere up to investors, and as an industry, we need PLAY IN 2020 AND BEYOND $2m dollars per patient. Authorities in to take an active role in defining what Brazil, India, South Korea or South Africa affordable means. If we don’t think right cannot afford these things. So, we have now about how we’re going to position CHAIR: to rethink this.” drugs in a commercially relevant setting – Mike Ward, Head of Content Bulthuis defended the idea of having meaning affordable – we’re going to lose at EBD Group different portfolios for different markets, that discretion at some point,” he said. arguing that it is the same for any in- The specter looming over the com- PANELISTS: dustry: “If I were developing software I ment, and the industry itself, is the Roel Bulthuis, MD, would start with where the market was.” current hostile political discourse sur- INKEF Capital Bulthuis made the case that developing rounding drug pricing. When asked by products for the US and Europe was a chair of the panel, Mike Ward, what was Charlotte Casebourne, different thesis than for Africa. He noted keeping the industry up at night in 2020, CEO of Theolytics & that the industry was already increasing four out of six panelists emphasized the board member at BIA investment outside of traditional mar- political climate – including the US elec- kets, moving into East and Southeast tion, Brexit, and the US-China trade war. Tobias Kloepper, CEO, Asia. While agreeing that access and The US still represents around 60% Aigenpulse affordability should rightly be champi- of industry revenues today, noted Zulf oned, Bulthuis argued that to justify an Zulf Masters, CEO, Masters, CEO of Masters Specialty Phar- investment “you have to start with where Masters Specialty Pharma maceuticals.