Collaborative Innovation in Biomedicine Conference

I had the opportunity to present this week at a conference on Collaborative Innovation. The conference delegates were very engaging and the presentations provoked a lot of dialog.

I came away with a strong sense of progress. A belief that the issues that hinder collaborative innovation are being overcome by these pioneers. Delegates from major biopharma companies (including Merck, Pfizer, Bayer and Novartis) shared experiences and mixed with innovators from Innovative Medicines Initiative, Scynexis, Accelrys, Results for Development Institute and Collaborative Drug Discovery to name but a few.

Three of the key points I came away with were:
1. Multiple Orchestrators in a Networked Model
When I talk about Networked R&D I make a point to highlight that there can be multiple orchestrators in a networked model. Networked is a step beyond collaborative R&D where it is typical to have only one orchestrator. The number of examples of this are few and far between. It was therefore very exciting to hear how NASA has been achieving this. Jeffrey Davis, Ph.D., Director, Space Life Sciences at Johnson Space Center shared with the delegates that they have provided the infostructure in their network of innovators that enable research to occur even where NASA is not directly orchestrating. Kudos to NASA!

2. Nobody mandated that scientists should put annotations on Gene Wiki
Benjamin Good Ph.D. from NIBR presented on the progress made by Gene Wiki. What was incredible was not just the number of contributing authors and the progress they have made but also that the contributors didn't need a top down management communication to begin collaborating. This growing "movement" of contributors just make it happen. As we look at how change in engineered in major companies it is interesting to see how effective viral change (what we at IBM call "building a movement") can be when compared with "engineered change". Engineered change being the traditional approach to corporate transformation programs.

3. Small makes collaboration a necessity
At the conclusion of my presentation I was asked a lot of good questions. The one that has spurred the most thinking for me was the hypothesis that "big" pharma had lost their skills in collaboration. They had lost them as they have (in the past) got everything (people, resources, platforms etc) that they have requested. The need for true peer to peer collaboration was limited. By contrast small biopharma has had to collaborate to achieve their goals. This small biopharma trend is growing rapidly in GSK with their DPUs and within Pfizer with their RUs. A GSK delegate shared some real examples of how this is working. If we believe collaboration is necessary then limiting resources for big biopharma could force them to collaborate. It is one way of moving from a culture of "not invented here" to a culture of "not invented here!".

The presentation and paper I presented can be found at below.

The link to download the paper is: Paper

The Presentation can be accessed through slideshare and viewed also below.

Collaborative Innovation - The Results are in..

The top 5 collaborative innovators in biopharma are.....
Let’s begin with the fact that several companies consistently rank “top of the pops.” Three of the five companies with which biotech executives most want to partner this year – Roche, Genentech and Lilly – have featured high on the list since 2006, while a fourth – GlaxoSmithKline – has done so since 2008.

Moreover, these companies are not simply good at handling one aspect of biopartnering, be it deal sourcing, formation or management; on the contrary, they stand out in most other ways (see Figure 4). Roche has ranked among the top five companies in all but one category in one year. Lilly, GlaxoSmithKline and Genentech have also regularly appeared in the top five rankings, although Genentech has lately slipped down the ladder. It figures among this year’s most highly rated partners primarily because of its high ranking across other individual partnership drivers that were measured. These include its reputation for innovativeness, the caliber of its people and its strong commitment to partnering at senior management level.

The key question is what are these companies doing to lead the pack? To answer that question you should download the full report from this link

If your company wasn't in the top five and you want to know where you placed in this study then contact me at sthender@us.ibm.com and I will be happy to share the more detailed results with you.

2010 Biopartnering Study - The Results are in and there are some big suprises!

Our 2010 Biopartnering study is due to be launched early next month. This year's study has an important finding - companies that partner well – what we call "preferred partners" – are displaying stronger financial performance.

Compared to the rest, preferred partners:

• Averaged the highest return on invested capital – over 70% more than the least desirable partners
• Gained the most points in sales growth

In this year's report we include the full ranking and not just the top 5. There are some very surprising results. Where did your company come in the ranking?

For your early copy of the report please email me at sthender@us.ibm.com. Or Tiffany Yu at tiffany.yu@us.ibm.com

Roche and IBM Research target whole genome sequencing for $100 to $1000

The IBM Global Business Services Life Sciences Practice runs a biopartnering study every two years. Roche is consistently in the top 5 of that study and based on the announcement today one can see why.

I have discussed collaboratories in the past in this blog and their role in collaborative innovation. Today sees the announcement of one that will combine the respective talents of Roche and IBM.

This collaboration involves Roche's science, expertise and research and IBM's DNA Transistor (a novel nanopore-based sequencer technology). It has the potential improve sequencing throughput and reduce costs to achieve the vision of whole human genome sequencing at a cost of $100 to $1,000; down from the $20,000-$30,000 that is costs today.

Quick and reliable DNA sequencing could help Roche find patients that react best to specific drugs, helping reduce side-effects and drug development costs. The deal should accelerate Roche's understanding of diseases at a molecular level. One hopes that this can provide the insights that help identify drug targets, pathways and accelerate the development of healthcare solutions for the world's unmet medical needs.

Check out more on this youtube video link

Schematics of the DNA transistor operation for the control of the translocation of a DNA through a nanopor


A membrane containing the nanopore, funtionalized with metal contacts (orange) separated by dielectric materials (lime), devides a reservoir into a top part containing an ionic solution with a high concentration of single stranded DNA, and a bottom part, where the DNA will be translocated to. The DNA on the top reservoir is induced to go to the bottom reservoir by the action of a biasing voltage. In the absence of anything else, the DNA would translocate through the pore at a speed of several million bases per second. To control the passage of DNA trhough the nano-hole, voltages of appropriate polarity (not shown) are applied to the metal contacts inside the pore, which create an internal electric field that trap the DNA. By alternating the trapping voltages applied to the metal contacts, the DNA can be made ratchet from the top to the bottom reservoirs in a controlled way.

See the Press Release Below:
Roche and IBM Collaborate to Develop DNA Sequencing Technology

Collaboration aims to accelerate human genome analysis and enable advancements in personalized healthcare.

Roche (SIX: RO, ROG; OTCQX: RHHBY) and IBM (NYSE: IBM) announced today a partnership to develop a nanopore-based sequencer that will directly read and decode human DNA quickly and efficiently. Focused on advancing IBM’s recently published "DNA Transistor" technology, the collaboration will take advantage of IBM’s leadership in microelectronics, information technology and computational biology and Roche’s expertise in medical diagnostics and genome sequencing.

The novel technology, developed by IBM Research, offers true single molecule sequencing by decoding molecules of DNA as they are threaded through a nanometer-sized pore in a silicon chip. The approach holds the promise of significant advantages in cost, throughput, scalability, and speed compared to sequencing technologies currently available or in development.
"By merging computational biology, biotechnology, and nanotechnology skills, we are moving closer to producing a system that can quickly and accurately translate DNA into medically-relevant genetic information," said Ajay Royyuru, Senior Manager of the Computational Biology Department at IBM Research. "The challenge of all nanopore-based sequencing technologies is to slow and control the motion of the DNA through the nanopore. We are developing the technology to achieve this so that the reader can accurately decode the DNA sequence."

Ultimately, the technology has the potential improve throughput and reduce costs to achieve the vision of whole human genome sequencing at a cost of $100 to $1,000. Having access to an individual’s personal genetic code could advance the quality of medical care by identifying persons who will gain the greatest benefit from a particular medicine and those who are at most risk of adverse reaction.

"Sequencing is an increasingly critical tool for personalized healthcare. It can provide the individual genetic information necessary for the effective diagnosis and targeted treatment of diseases," explained Manfred Baier, Head of Roche Applied Science. "We are confident that this powerful technology - plus the combined strengths of IBM and Roche – will make low-cost whole genome sequencing and its benefits available to the marketplace faster than previously thought possible."

As part of the agreement, Roche will fund continued development of the technology at IBM and provide additional resources and expertise through collaboration with Roche’s sequencing subsidiary, 454 Life Sciences. Roche will develop and market all products based on the technology.

Roche’s investment in future genomic technologies builds upon the strength of its currently available 454 Sequencing Systems, which generate hundreds of thousands of long, high quality sequencing reads in hours. The technology is available for large-scale genomic analysis with the GS FLX System and for benchtop sequencing with the GS Junior System. Shown to provide significant medical value in targeted resequencing applications for virology and oncology research, 454 Sequencing Systems are poised to be first next-generation sequencing technology to move from the laboratory to the clinic.

For more information on 454 Sequencing Systems, visit http://www.454.com/.

About Roche
Headquartered in Basel, Switzerland, Roche is one of the world’s leading research-focused healthcare groups in the fields of pharmaceuticals and diagnostics. As the world’s biggest biotech company and an innovator of products and services for the early detection, prevention, diagnosis and treatment of diseases, the Group contributes on a broad range of fronts to improving people’s health and quality of life. Roche is the world leader in in-vitro diagnostics and drugs for cancer and transplantation, and is a market leader in virology. It is also active in other major therapeutic areas such as autoimmune diseases, inflammatory and metabolic disorders and diseases of the central nervous system. In 2008 sales by the Pharmaceuticals Division totaled 36.0 billion Swiss francs, and the Diagnostics Division posted sales of 9.7 billion francs. Roche has R&D agreements and strategic alliances with numerous partners, including majority ownership interests in Genentech and Chugai, and invested nearly 9 billion Swiss francs in R&D in 2008. Worldwide, the Group employs about 80,000 people. Additional information is available on the Internet at http://www.roche.com/.

About IBM
For more information, visit www.ibm.com/smarterplanet

The 2010 CEO Study - Life Sciences Edition

This study is the fourth edition of IBM's biennial Global CEO Study series. It includes a specific analysis of the Life Sciences industry. Link to the study here

To better understand the challenges and goals of today's CEOs, IBM consultants met face-to-face with the largest-known sample of these executives. Between September 2009 and January 2010, IBM interviewed 1,541 CEOs, general managers, and senior public sector leaders who represent different sizes of organizations in 60 countries and 33 industries. This group included 76 Life Sciences CEOs based in 21 countries.

These conversations offer valuable insight into the agendas and actions of global leaders.

The analysis includes connecting the performance of the companies with the actions of these CEOs. Certain organizations have delivered solid business results even in the recent economic downturn – and the people who lead them feel much more prepared for complexity ahead.

So, what are these "Standouts" doing to thrive? Our extensive analysis shows that CEOs leading standout companies are capitalizing on complexity to:

• embody creative leadership,
• reinvent customer relationships; and
• build operating dexterity.

The study is well worth reading and I will blog more on some of the key analysis in coming weeks. I will leave you with one difference to digest now though.

Life Sciences CEOs are even more likely than Standouts to favor quick decisions. In fact 48% more likely than the standout CEOs. Only 8% of Life Sciences CEOs favored thorough decisions alone as a style. I am keen to hear your thoughts on this finding.

Decision Style:

Smarter products in the home: The future of wellness devices

Biopharma companies are looking beyond launching drugs to launching solutions. Solutions include the use of devices and programs with the drug. Whether it is ideas such as J&J's iPhone app for diabetics or simple glucose monitors it is clear that probability of achieving the health outcome can be improved significantly.

To understand consumer experiences with and expectations around the “wellness devices,” IBM’s Institute for Business Value surveyed over 1300 consumers most likely to be familiar with such devices: people who are living with chronic illnesses or who are caregivers. The survey was conducted in both the U.S. and U.K., yielding views of consumers who access different types of health systems.

The study is not published yet though.. it will be launched at a webcast on April 21, 2010 9:00 am - 10:30 am EDT. You can register for this webcast through this link.



The webcast will share:

1. What types of wellness devices are being used today?
2. What types of wellness devices would consumers like to see, and how much are they willing to pay for them?
3. What factors influence consumers’ device selection?

Diabetes Epidemic in Emerging Markets

The strategies of the largest biopharma companies have been adding focus to emerging markets for some time now. The NEJM published a paper today showing exactly why the focus is critical to the health of the population in those markets.

The researchers from the China National Diabetes and Metabolic Disorders Study Group conducted a national study from June 2007 through May 2008 to estimate the prevalence of diabetes among Chinese adults. The results are staggering.

Their research suggests that China has around 92 million diabetics. This double what the International Diabetes Federation has estimated. Furthermore it is significantly more than India which is estimated to be at 50 million today. A conservative estimate of $440 (USD) per annum to treat a diabetic would suggest that the Chinese market opportunity today is over $40BN (1% of 2009 China GDP) and when one includes India a $60BN market. To get some perspective on that market size one needs to consider that in 2007, the diabetes treatment market worldwide was worth in the region of $25 billion.

Success in addressing this pandemic will be the challenge of biopharma companies and healthcare organizations around the world. What remains unclear is how we will find the funds to provide for this exploding need for healthcare.


You can read the paper here


The following graphic is sourced from bbc.co.uk