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Pfizer Canada
To Be Truly Healthy,
It Takes More Than Medication
Innovation Gap
Innovation Gap


!  “We intend to make our internal capability even more effective by tapping
   into the best scientific capability outside of our walls -wherever it exists.
   That’s why we are reaching out to scientists around the world.”
   Jeff Kindler, CEO, Pfizer
Understanding Disease Biology is not a
Competitive Activity
Canadian Public-Private Partnership Models
of Innovation

            Pre-Competitive Partnership Models of Innovation   Competitive




 Collaborative R&D Partnerships
        Centers of Excellence in Commercialization (CECRs)
        Quebec Pain Research Network (QPRN)
        Ontario Institute of Cancer Research (OICR)
        Center for Drug Research & Discovery (CDRD)


 Pre-Competitive R&D Partnerships
        Quebec Drug Discovery Consortium (CQDM)
        Structural Genomics Consortium (SGC)
Canadian Public-Private Partnership Models
of Innovation
                   World class science drives the day……
                   Very significant internal competition for global R&D $$s

                   Local affiliates can drive internal global recognition of local
                   opportunities, through local resources and local funds.

                   Alignment with large consortia and public funding is very
                   helpful

 IRMA : THE DRUG   In the Future
  REPOSITIONING
    INITIATIVE     Public-Private and Pre-competitive research is growing
                   ON is in position to excel in this emerging paradigm

                   Public support of PPP is not a temporary concept. Funding
                   must be maintained, as a basis for attracting other $$s into
                   the project.
Enable Integrate Engage




A New Model for the Translation of Regenerative Medicine:
 Collaborative, Capital-Efficient Technology Development

       New Models of Innovation in Life Sciences

             April 20th, 2011, MaRS, Toronto

                  Michael H. May PhD
                         CEO




                                                            Slide 1
“Open Innovation” is Not New

                                                                              Open
Collaboration
                                                                            Innovation


                                          Non-Zero-Sum
                                              Gain

Technology
                                              Zero-Sum
                                                Gain


Environmental
Stress or Need                                                          Competition

                    “NONZERO – The Logic of Human Destiny”, Robert Wright
                                                                                         Slide 2
Funding of Research and
Commercialization in Canada




                              Slide 3
CCRM Builds on MaRS and MI

!"#$%&'()'*%&#+!#,-..-*%#
    /%%)/..0#*%#123#




                                   Slide 4
A Global Nexus for RM Technology
                 and Commercialization

                     Mission: To bridge the RM commercialization
                     gap by leveraging funding and infrastructure,
                        and mobilizing business and scientific
                          expertise to translate technologies
  Existing                                                                     Industry
Government                                                                   Investment
 Programs                                                                       Capital




                                                 Pre-           Clinical &
                               Product
         Basic R&D                            Commercial       Commercial
                             Development
                                               Validation       Validation



                                                                               Slide 5
Our Plan to Bridge the RM
             Commercialization Gap




  Existing                                                              Industry
Government                                                            Investment
 Programs                                                                Capital


              Enable Product   Integrate Science and   Create Links
               Development           Business           to Market




                                                                        Slide 6
Translation through Collaboration




                                    Slide 7
  capital efficient RM development
  utilize academic infrastructure
  facilitate global collaboration
  focus on key bottlenecks
  explore alternative funding sources




                                        Slide 8
Slide 9
Industry Engagement
 Platform 1                                  Platform 2                                Platform 3
 4 companies, 2                              6 companies, 2                          6 companies, 2
Canadian, 2 large                           Canadian, 3 large                       Canadian, 1 large
   and 3 small                                 and 3 small                             and 5 small


        Community Offerings                                            Market Needs
         !  iPSC cells
         !  Lineage reprogramming                                Characterized and validated
         !  Stem cell characterization                                 stem cell lines
            and standardization




                                                                   Clinical and commercial
         !  Cell culture bioprocesses,
                                                                quantities of stem/differentiated
            sensors and scale-up / out
                                                                               cells



         !  Biomaterials/biocompatibility
         !  Therapeutic polymers                                    Tissue mimetics for drug
         !  Microfabrication                                         screening & transplantation
         !  Functional and stabilized,
            cell-derived tissues                                 Foundational Reagents, tools
                                                                       and processes                    Slide 10
Driving Open Innovation

Collaboration


                             Non-Zero-Sum
                                 Gain
                                            "  Capital efficient
Technology                                  "  Pre-competitive
                               Zero-Sum
                                 Gain

Environmental
Stress or Need



                                                             Slide 11
evidence-based infection control
Evidence-based Infection Control!
#$%"&'(')*+",-./0')$%"1%'0-*"'*2-34)*"3)*5%)6"$('*7"7-)(8/4/6"/*/6943(:"5)";)*'5)%:"
;-/($%-:"/*1"';8%)0-")$53);-(<"

#$%"=)/6+">-68"/3.'-0-"/*1"-?3--1"8/4-*5"(/2-59"';8-%/40-("@"8%')%'4-("

A"B-/%("C$;$6/40-"D-/%*'*7+"E'(-/(-"($%0-'66/*3-"/*1"'*2-34)*"3)*5%)6"()6$4)*(<"

F "G)()3);'/6"3/(-";/*/7-;-*5"
F "H$5);/5-1"./*1".97'-*-"3);86'/*3-";)*'5)%'*7"
F "H$5);/5-1")$5I%-/J"3)*5/35"5%/3'*7""
F "K>)5L(8)5M"'1-*4N3/4)*"
F "O-/6L4;-"@"($(5/'*-1"5%/3J'*7:"/6-%5("@";-5%'3("
                                                                                   !"
Innovation in Healthcare...!
Incremental innovation tends to be ‘evolutionary’.
  Small improvements in existing practices.!

Disruptive innovation improves a product or service
  in ways that the market does not expect and looks to
  make significant impacts.!

Goal in healthcare is affordability/sustainability while
 increasing accessibility, quality and safety. This sector
 should be an ideal target for disruptive solutions.!
                               3
Open Innovation!

• C)*0-%7-*3-"Q)6$4)*"
• R/%5*-%("S'5."H6'7*-1"=)/6("
• C)*N%;"&'(')*"/*1"R/5."
• T/'*5/'*"5.-"&'()*"
• =-5M-%"E)*-"

                                 P"
!"#$%&"'()*+",-"./&-"0--,1$2,-"

           34&"'5#"
'5#6",/&-"$77&%%"%70&-7&"
•  8,9:&*"0-";<<="(,">&-&9$(&"?-,@A&*>&"$B,)("4):$-"/9,(&0-%"

•  C&%)A(%"$-*"9&$>&-(%"0-(,"/)BA07"*,:$0-"@0(4,)("9&%(9072,-"

•  D,"-,("EA&"F,9"GH",-"$-+"9&%)A(%"

•  =<I",F">A,B$A",)(/)(",F"-&@"4):$-"$-*"/$9$%0(&"/9,(&0-"%(9)7()9&%"

•  ;"/$/&9%"/&9"@&&?"
!"/)BA07J/901$(&"/$9(-&9%40/"
              '@&*&-"
                                 H4$9:$"

#$-$*$"




 .-($90,"
                                 K&AA7,:&"39)%("
Industrial focus yields HQP
Former SGC members:

•  > 65 scientists went on to jobs in academia
    •  15 to leadership positions (7 Faculty positions)
•  > 33 to industry (9 to leadership positions)
•  7 returned to the SGC/or relocated to another SGC site
•  4 to business schools

Training at SGC:

•  187 external scientists trained at the SGC (20 coop students)
No IP facilitates collaboration
•  More than 200 Collaborations in 17 countries world wide
•  ~250 publications – an average of 3.1 non-SGC scientists per paper




                                                     1 collaboration

                                                     2-5 collaborations

   >1000 expression clones have been sent            5-10 collaborations

   out during the past 3 years of which more         10-20 collaborations


   than 800 to academia
                                                     > 20 collaborations
Knowledge transfer
•  Over the last 3 years SGC scientists attended >250 conferences the
   majority of them as speakers
•  Serve on SAB s of 5 biotech companies; 3 research consortia and 2 funding
agencies
•  The SGC organised 20 workshops/conferences during the past three years
•  More than 50 face-to-face meetings with industry per year
•  More than 100 external scientists attended workshops held at SGC
Technology development
SGC driven developments:
    !  Lex System
    !  BeeHive (w. MolSoft, Inovacia, CPR)
    !  iSee (MolSoft)
    !  Software for domain boundary analysis
    !  Expression clone generating platform
    !  Phage-resistant bacterial host strains
    !  Proximity assay!
Testing and Improvement of a number of different products/
machines in collaboration with vendors:
Crystallisation:
    !  JCSG+ crystallization screen
    !  Mosquito crystallization robot
    !  Minstrel imaging robot
    !  Actor anti-icing lid
    !  SpearLab Liquid nitrogen handling dewars
    Compound screening
    !  Stratagene/Agilent RT-PCR
    !  Stargazer
    !  BMG Labtech multi-functional plate reader "Polarstar Omega“
    !  Biacore with GE Healthcare
    Other
    !  Contur ELN
Commercialization
Harbinger Biotech, founded in 2005, has sold equipment to over
30 labs in industry and academia in Asia, North America and
Europe

SGC software programs distributed to >40 labs

1DegreeBio founded in 2010
Moving the Pre-Competitive Boundary

 H)BA07LH901$(&"   H)BA07"
                                     G-*)%(9+"
 H$9(-&9%40/"      D,:$0-"



 Chemical          Target                 Drug
 Probes            Validation             Discovery

 Screening         No IP                  (re)Screening
 Chemistry         No restrictions        Chemistry
 Structure         Publication            Lead optimization
 Bioavailability                          Pharmacology
                                          DMPK
                                          Toxicology
                                          Chemical development
                                          Clinical development
            Creative commons         Proprietary
Impact of novel BET probe



                            250+ labs
                            across
                            the globe




Identified     Published   Distributed
  Jan 10        Sep 10       Jan 11

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New Models of Innovation in Life Sciences - MaRS Market Insights

  • 1.
  • 2. Pfizer Canada To Be Truly Healthy, It Takes More Than Medication
  • 4. Innovation Gap !  “We intend to make our internal capability even more effective by tapping into the best scientific capability outside of our walls -wherever it exists. That’s why we are reaching out to scientists around the world.” Jeff Kindler, CEO, Pfizer
  • 5.
  • 6. Understanding Disease Biology is not a Competitive Activity
  • 7. Canadian Public-Private Partnership Models of Innovation Pre-Competitive Partnership Models of Innovation Competitive Collaborative R&D Partnerships Centers of Excellence in Commercialization (CECRs) Quebec Pain Research Network (QPRN) Ontario Institute of Cancer Research (OICR) Center for Drug Research & Discovery (CDRD) Pre-Competitive R&D Partnerships Quebec Drug Discovery Consortium (CQDM) Structural Genomics Consortium (SGC)
  • 8. Canadian Public-Private Partnership Models of Innovation World class science drives the day…… Very significant internal competition for global R&D $$s Local affiliates can drive internal global recognition of local opportunities, through local resources and local funds. Alignment with large consortia and public funding is very helpful IRMA : THE DRUG In the Future REPOSITIONING INITIATIVE Public-Private and Pre-competitive research is growing ON is in position to excel in this emerging paradigm Public support of PPP is not a temporary concept. Funding must be maintained, as a basis for attracting other $$s into the project.
  • 9. Enable Integrate Engage A New Model for the Translation of Regenerative Medicine: Collaborative, Capital-Efficient Technology Development New Models of Innovation in Life Sciences April 20th, 2011, MaRS, Toronto Michael H. May PhD CEO Slide 1
  • 10. “Open Innovation” is Not New Open Collaboration Innovation Non-Zero-Sum Gain Technology Zero-Sum Gain Environmental Stress or Need Competition “NONZERO – The Logic of Human Destiny”, Robert Wright Slide 2
  • 11. Funding of Research and Commercialization in Canada Slide 3
  • 12. CCRM Builds on MaRS and MI !"#$%&'()'*%&#+!#,-..-*%# /%%)/..0#*%#123# Slide 4
  • 13. A Global Nexus for RM Technology and Commercialization Mission: To bridge the RM commercialization gap by leveraging funding and infrastructure, and mobilizing business and scientific expertise to translate technologies Existing Industry Government Investment Programs Capital Pre- Clinical & Product Basic R&D Commercial Commercial Development Validation Validation Slide 5
  • 14. Our Plan to Bridge the RM Commercialization Gap Existing Industry Government Investment Programs Capital Enable Product Integrate Science and Create Links Development Business to Market Slide 6
  • 16.   capital efficient RM development   utilize academic infrastructure   facilitate global collaboration   focus on key bottlenecks   explore alternative funding sources Slide 8
  • 18. Industry Engagement Platform 1 Platform 2 Platform 3 4 companies, 2 6 companies, 2 6 companies, 2 Canadian, 2 large Canadian, 3 large Canadian, 1 large and 3 small and 3 small and 5 small Community Offerings Market Needs !  iPSC cells !  Lineage reprogramming Characterized and validated !  Stem cell characterization stem cell lines and standardization Clinical and commercial !  Cell culture bioprocesses, quantities of stem/differentiated sensors and scale-up / out cells !  Biomaterials/biocompatibility !  Therapeutic polymers Tissue mimetics for drug !  Microfabrication screening & transplantation !  Functional and stabilized, cell-derived tissues Foundational Reagents, tools and processes Slide 10
  • 19. Driving Open Innovation Collaboration Non-Zero-Sum Gain "  Capital efficient Technology "  Pre-competitive Zero-Sum Gain Environmental Stress or Need Slide 11
  • 22. Innovation in Healthcare...! Incremental innovation tends to be ‘evolutionary’. Small improvements in existing practices.! Disruptive innovation improves a product or service in ways that the market does not expect and looks to make significant impacts.! Goal in healthcare is affordability/sustainability while increasing accessibility, quality and safety. This sector should be an ideal target for disruptive solutions.! 3
  • 25. '5#6",/&-"$77&%%"%70&-7&" •  8,9:&*"0-";<<="(,">&-&9$(&"?-,@A&*>&"$B,)("4):$-"/9,(&0-%" •  C&%)A(%"$-*"9&$>&-(%"0-(,"/)BA07"*,:$0-"@0(4,)("9&%(9072,-" •  D,"-,("EA&"F,9"GH",-"$-+"9&%)A(%" •  =<I",F">A,B$A",)(/)(",F"-&@"4):$-"$-*"/$9$%0(&"/9,(&0-"%(9)7()9&%" •  ;"/$/&9%"/&9"@&&?"
  • 26. !"/)BA07J/901$(&"/$9(-&9%40/" '@&*&-" H4$9:$" #$-$*$" .-($90," K&AA7,:&"39)%("
  • 27. Industrial focus yields HQP Former SGC members: •  > 65 scientists went on to jobs in academia •  15 to leadership positions (7 Faculty positions) •  > 33 to industry (9 to leadership positions) •  7 returned to the SGC/or relocated to another SGC site •  4 to business schools Training at SGC: •  187 external scientists trained at the SGC (20 coop students)
  • 28. No IP facilitates collaboration •  More than 200 Collaborations in 17 countries world wide •  ~250 publications – an average of 3.1 non-SGC scientists per paper 1 collaboration 2-5 collaborations >1000 expression clones have been sent 5-10 collaborations out during the past 3 years of which more 10-20 collaborations than 800 to academia > 20 collaborations
  • 29. Knowledge transfer •  Over the last 3 years SGC scientists attended >250 conferences the majority of them as speakers •  Serve on SAB s of 5 biotech companies; 3 research consortia and 2 funding agencies •  The SGC organised 20 workshops/conferences during the past three years •  More than 50 face-to-face meetings with industry per year •  More than 100 external scientists attended workshops held at SGC
  • 30. Technology development SGC driven developments: !  Lex System !  BeeHive (w. MolSoft, Inovacia, CPR) !  iSee (MolSoft) !  Software for domain boundary analysis !  Expression clone generating platform !  Phage-resistant bacterial host strains !  Proximity assay! Testing and Improvement of a number of different products/ machines in collaboration with vendors: Crystallisation: !  JCSG+ crystallization screen !  Mosquito crystallization robot !  Minstrel imaging robot !  Actor anti-icing lid !  SpearLab Liquid nitrogen handling dewars Compound screening !  Stratagene/Agilent RT-PCR !  Stargazer !  BMG Labtech multi-functional plate reader "Polarstar Omega“ !  Biacore with GE Healthcare Other !  Contur ELN
  • 31. Commercialization Harbinger Biotech, founded in 2005, has sold equipment to over 30 labs in industry and academia in Asia, North America and Europe SGC software programs distributed to >40 labs 1DegreeBio founded in 2010
  • 32. Moving the Pre-Competitive Boundary H)BA07LH901$(&" H)BA07" G-*)%(9+" H$9(-&9%40/" D,:$0-" Chemical Target Drug Probes Validation Discovery Screening No IP (re)Screening Chemistry No restrictions Chemistry Structure Publication Lead optimization Bioavailability Pharmacology DMPK Toxicology Chemical development Clinical development Creative commons Proprietary
  • 33. Impact of novel BET probe 250+ labs across the globe Identified Published Distributed Jan 10 Sep 10 Jan 11