# Presentation: 410961

## PENN Medicine

**September 11, 2007**

**Keys to Establishing Academic-Corporate Partnerships**
**Arthur Rubenstein, MBBCh**
**Glen Gaulton, PhD**
**University of Pennsylvania**

## A Shared Mission

** ****Improving health care and delivery**
** ****Conducting research in an ethically appropriate manner **
** ****Advancing scientific knowledge specifically and generally**
** ****Supporting faculty, trainee and/or employee satisfaction and development**
** ****Commercializing and marketing discoveries**

## Shared Challenges

**Increasing competitive pressures to develop new drugs, devices and applications**
**Constant demand for increased and diversified financial resources to support research**
**A changing environment/business model for research development**
**Increasing administrative compliance requirements **
**Declining public trust in our conduct**

## Key Relationship Barriers

**For Industry**
** ****Access to new technology**
** ****Access to thoughts leaders**
** ****Preserving confidentiality and product development**
** ****Protect pipelines**
** ****Overcoming academic bureaucracy and conservative**
** ****Desire simplified IP policies**
**For Academia**
** ****Preserving academic freedom**
** ****Eliminating/managing conflicts of interest **
**(faculty and institutional)**
** ****Preserving commercialization potential**
** ****Ensuring funding continuity**
** ****Diversifying funding**
** ****Forming teams among individual entrepreneurs**

## The Opportunity

**Companies are faced with a continuing stream of technology developments, ideas, products, and businesses which are not pursued for a variety of reasons:**
-  Not a good fit with existing businesses
-  Market too small
-  Litigation and liability potential
-  No route to market
**Historically companies select individual investigators and development products at academic institutions for investment**
-  Contracts with an individual that does not commit/dedicate the 		institution to the project and/or the relationship
-  Does not interest the company in the potential of future value that 		could be delivered in the field/area
-  Companies invest only in _what_ and _who_ they know
- 		- typically not institutions
-  Does not mine institutional resources or expertise

## The Opportunity

** ****At the Universities, straight license deals successful only 2% of the time**
-  Value meetings result in deals 25%
** ****Technologies and relationships that do well**
-  Fit product development cycle of the company
-  80% of success is outside of original target
**Forming entity-entity partnerships**
**targeted to defined development areas**
** ****is a more effective approach.**** **

**Penn Experience:**
** ****Strategic Alliance/Partnership Focus  **
** ****Structure and processes in place **
** ****Partners large & small & of all types**
** ****Net results:**
** ****Enhanced discoveries and IP**
** ****Accelerated development of new drugs, devices & products**
** ****New indications**
** ****Opens new opportunity areas**** **

- PENN Medicine Research-Corporate Partnerships** **

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- Human Subjects Use

**Administrative Components**

**Scientific Components**

- Doing Business with Academic Centers Historically

## A Better Way of Collaboration

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**Penn Scientific Components**

**Partner**

**Discipline -Based Discovery Team**

## An Effective Approach For Collaboration

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- © University of Pennsylvania

**Administrative Components**

**Scientific Components**

- PENN Medicine

- JointGovernanceCommittee

- Partner

## Partnership Management

**Area of interest is pre-defined, focused and committed to by leadership and scientific teams**
**Projects are identified for joint benefit and are unique to the relationship**
**Project team support established on both sides**
**General terms of IP,confidentiality, rights... prenegotiated - active management is required**
**The strategy is to license technology before it is invented and across the spectrum of potential applications - new targets/drugs and new ways to use old targets/drugs**

## Partnership Management

**Define a process with people responsible for execution on the academic end and consistency of vision on the corporate end can help ensure success **
**Quarterly assessment of accomplishments and annual assessment of continued relationship**
**Partnering avails the parties to the full set of resources**
**Results driven - augment the resources of the partner with a process that moves technology along a path toward commercialization**

## From Concept to Commercialization

** ****and **
**Institution**

- IP Opportunity
- Identification

- Documentation& Planning

- Decision Making

- Developmen**t**

**Commercialization**

**From Concept to Commercialization**

- Concept Development

**Partner Driven Decisions**

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**Commercial Partner Relationships**

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- © University of Pennsylvania

## From Concept to Commercialization

-  and
-  Institution

- Opportunity
- Identification

- Documentation& Planning

- Decision Making

- Developmen**t**

**Commercialization**

- Faculty Driven

- Criteria Driven

- Concept Development

- Iterative Process

- Business/product Concept

- Vision Driven

- Plan Driven

**Partner Driven**

- Process Driven

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-  **Business Development & Support Function**

**Technology Transfer & Commercialization Function **

- “Management or Peer Process”

**Commercial Partner Relationships**

- © University of Pennsylvania

**From Concept to Commercialization**

- The “Embedded” Penn Process

## What Are The Benefits ?

** ****Creates opportunity model options up front: advanced collaborations, licensing, start-up, joint ventures...**** **
- Historically, technology transfer represents an exit for one party and an entrance for the other - not a continuum
**Permits flexibility in approaches and stages of development research**
- Basic Research - Animal and Cell Mode Systems - Clinical Trials
**Streamlines administrative burdens and regulatory concerns on both sides and thereby reduces cultural biases **
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**Highlights questions that need to be answered in order to maximize value - scientific and commercial**

## A Few Lessons Learned 

**Most ideas are good**
**only a few of them will make any money**
**All businesses have/need rules for developing new ideas into products – define yours and learn the rules of your partner**
**Begin by trusting  the ‘Other Side’**
**Build collaborations with both scientists and management**
**Define measurable objectives to be achieved in a finite period of time**

## Lessons Learned 

**Structure and institutionalize a management process**
**Build on strengths – partner with others as needed**
**Success must be clearly defined for all stakeholders up front**
**Maintain a *****relationship***** orientation versus *****transaction***** orientation**
**Develop a contract that is both flexible and targeted on resolving issues before they arise**
**Creativity counts as the business relationship evolves**
**Work with a shared sense of urgency**

## Slide 18