www.pharmatechoutlook.com

September - 11 - 2019$15

ISSN 2644-2787

APAC SPECIALDRUGDISCOVERYSERVICE EDITION

Hideyuki Hirama,President & CEOGemseki

A DRUG CANDIDATE
MARKETPLACE TO ACCELERATEDRUG DEVELOPMENT

CO

VERSTORYTECH OUTLOOKDRUG DISCOVERYCONSULTING/SERVICES COMPANIES IN APAC - 2019

GemsekiBy Stacey Smithnnovation is the driving force behind thepharmaceutical industry. And, innovation
calls for information sharing. However, thepharmaceutical industry has been a very
conservative and closed landscape where newplayers find it impossible to enter the market
while those within the industry hold criticalinformation to themselves without any open
collaboration. This has led to information asymmetry.
The situation is slowly changing due to open innovation
efforts from some companies, yet there is a wide range of
information asymmetry present between various players
in the industry, out-licensors and in-licensees, as wellas biotech and large pharmaceutical companies. This
information asymmetry generates “market failures,”where the pharmaceutical companies are unable touncover optimal outcomes or potential breakthrough drug
discoveries. The industry needs to move toward openinnovation, which entails more licensing and partnering
efforts where information flows between various players.

With over ten years of experience in the pharma
and life sciences industry and an MBA degree fromthe Harvard Business School, Hideyuki Hirama
observed these challenges and decided to revolutionize
the scenario with the idea of open innovation. With
Gemseki, he created an open marketplace, the “DrugCandidate Marketplace” to list drug candidates,
therapeutic targets, and drug discovery technologies(assets) that are available for partnering and licensing.
Today, there are many assets that require partners fordevelopment at pharmaceutical companies, start-ups, andacademia to move to the next stage in the drug discovery
phase. However, there are challenges in generating
optimal outcomes due to the information asymmetry,lack of resources of each player, and connections. Hirama
wanted to bring an Amazon-like marketplace to thepharmaceutical industry and introduce easy access toasset information for drug discovery and development.
With Gemseki’s Drug Candidate Marketplace,participants can license in or license out a variety ofHideyuki Hirama,President & CEO

assets. The marketplace lists informationof these assets seeking partners while
Gemseki actively looks for potential
licensees within its own network. Theseassets can then be utilized efficiently,
and the development can be expedited
through new combinations.

We create abridge between
a company thatwants to deriveand publish
its own drug
discovery assets
and a company
that wants totake over anddevelop it“This is not as easy as selling andbuying of stocks or commodities,”says Hirama, which is why Gemseki
takes an innovative approach toward
licensing/partnering activities byactively engaging in discussions
and negotiations while providing a
web-based Amazon-like platform.
Gemseki becomes an integral partof the innovation ecosystem among
pharmas, biotechs, new industry players,
academia, investors, and government tofulfill the gaps created by information
asymmetry. “We create a bridge
between a company that wants to deriveand publish its own drug discovery
assets and a company that wants to takeover and develop it,” says Hirama.

Connecting Licensors withLicensees

As opposed to the current one-to-one
scheme of the out/in-license of drugcandidates, Gemseki’s platform features
a many-to-many scheme with activeengagements. This means that potential
licensors can easily connect to potentiallicensees. The platform enables outlicensors to perform sustained partnering
activities at all times, and in parallel, theGemseki staff conducts active out-license
activities utilizing a global network andparticipating in many partnering events.
The web-based platform and Gemseki’s
robust network also give out-licensors
access to R&D departments as wellas business development departments,
which proves to be beneficial,
particularly for innovative assets. Onceengaged, Gemseki provides advisory
support for drug development andpartnering strategies for clients without
any additional charge. What is more,
Gemseki takes a candid approach byestablishing a success fee business model
where they levy charges to out-licensors
only when the agreement is executed andout-licensors receive cash from the deal.
This fee model, without retainers andfixed fees is a big differentiator comparedto models adopted by traditional industry
players.
Highlighting the uniqueness ofGemseki, Hirama points out that thecompany provides hybrid services,
combining web-based, many-tomany approach and active one-to-one
engagement to potential licensees whilecharging out-licensors only successfees. The marketplace’s many-tomany schemes open up new avenues
for a number of potential licensors
and licensees. Also, the experienced
staff of Gemseki removes the resource
limitations for pharma companies
for individual contacts with potential
licensees. By firmly stating licensing
criteria of potential licensees through its
own and group networks, Gemseki canidentify appropriate potential licensees ofeach asset and approach them proactively
to generate results.
With its Drug Candidate
Marketplace, Gemseki enables
out-licensors to list various assets
to increase the opportunity andprobability of out-license in parallelwith the activities of their licensing
department. Out-licensors can continue
their partnering activities without
restrictions. On the other hand, inlicensees can benefit from Gemseki’s
collection of assets and can utilize
its services without any charges andrestrictions to receive non-confidential
information. Thus, the Gemseki modelis easy to use for both out-licensors andin-licensees.
The process starts with theexecution of a service agreement
between a potential licensor andGemseki and uploading of asset
information on the website, wherenames of the compound and theorganization are kept anonymous. The
second stage of the process involves
potential licensees who send inquiries
to Gemseki for more information or
potential licensees Gemseki identifies
based on the accumulated database ofeach company’s licensing criteria. Here,
Gemseki provides non-confidential
detailed information to these potentiallicensees after confirming with theoriginator to start mediation with thesepotential licensees. After reviewing
the non-confidential information,
the potential licensees communicate
to Gemseki about their interest inlicensing. In the third step, Gemseki
executes a confidential disclosureagreement (CDA) for the transfer ofconfidential information and licensing
activities if the potential licensee would
like to move forward. Finally, upon
execution of the licensing agreement,out-licensor pays the contingent fee
to Gemseki. In the entire process,Gemseki provides all necessary
support, including support for
discussions and negotiations.

Owing to its exceptional qualities inthe drug discovery field, Gemseki has
been selected as one of the “Top 10 Drug
Discovery Consulting/Services Companies
in APAC 2019,” by “Pharma TechOutlook.”

The Go-to Marketplace for
Pharma Companies

Since its launch in Oct 2017, Gemseki
has rapidly grown worldwide. Gemseki
has been attracting many out-licensors
and has accumulated more than 80 assets
available for partnering, 25 percent of
which came from Japan and the rest 75
percent from the U.S., Europe, and other
Asian regions. Biotech companies, smallmiddle size companies or universities
that have limited access to overseas
network seek help from Gemseki tobridge the gap through the global web
platform. Similarly, large pharmaceuticalcompanies that wish to promote theirassets and increase the chance of finding
partners also approach Gemseki to get
multiple leads. Gemseki’s clients also
include pharmaceutical companies thathave discontinued their drugs and want
to reach out to potential partners for theirassets. Moreover, Gemseki has been
establishing a relationship with venture
capitals who wish to find partners for theirportfolio companies. Accordingly, withthe rapid increase of assets on the Drug
Candidate Marketplace, Gemseki has been
attracting a lot of potential in-licensees. In
fact, Gemseki has undertaken quite a few
deals under CDA negotiations.
Going beyond their efforts tohelp pharma companies find suitablepartners, Gemseki contributes to society
by supporting the development ofvaluable drug candidates. “There area lot of hidden drug candidates in theworld that hold great potential. We, asa portal platform company, hope to help
turn these gemstones or hidden drugcandidates into brilliant gems or valuable
new drugs,” mentions Hirama. Keeping
this vision in mind, the company’s name,gemseki.com/en/drugcandidatemarket

There are a lot of hidden drug candidates in theworld that hold great potential. We, as a portal
platform company, hope to help turn thesegemstones or hidden drug candidates into
brilliant gems or valuable new drugs
Gemseki, was created by combining“gemstone” and “genseki” (gemstonein Japanese). The company is built as a
subsidiary of Shin Nippon Biomedical
Laboratories, Ltd. (SNBL), the largest
preclinical CRO in Japan that has been
supporting this new model. Therefore,
Gemseki can capitalize on the accumulated
network and experiences of its parent andgroup companies. By using this groupcapabilities, Gemseki is considering its
future plan to expand its capabilities
toward incubation and investment roles forthe life science industry.
Gemseki staff consist of varieties
of experienced professionals in theindustry, including the fields of businessdevelopment, pharmacology, toxicology,regulatory and drug pricing strategy. By
firmly stating licensing criteria of potential
licensees through its own and group
networks and examining each asset in
depth, Gemseki’s experienced staff canidentify appropriate potential licensees ofeach asset and is incentivized to approachthem proactively to generate results dueto the success fee structure. With a vision
to make Gemseki the go-to marketplace
for the pharma and life science industry,the company intends to expand its evergrowing network. “Our goal is to enable
pharmas, biotechs, or academia—thathave difficulty in maintaining full-time
professionals for international activities—
use Gemseki’s platform to find the best
partner,” explains Hirama. “I would liketo contribute to the industry to create
an environment through partnering andlicensing.”
From a geographical standpoint, theoperation of Gemseki is already global.
The company currently has staff in Japan,
the U.S., and Greater China and plans tofurther expand its international footprint tohelp local clients augment their capabilities
using a global web platform.

ISSN 2644-2787

September - 11 - 2019

TECH OUTLOOKDrug Discovery APAC Service

WWW.PHARMATECHOUTLOOK.COM

Top 10 Drug Discovery Consulting/Services Companies in APAC - 2019T

he drug discovery services market today is influenced
by technological advancements and growing demandfor cancer treatment. What is fueling the growth of
this market is people’s increasing concern aboutchronic diseases, growing patient pool, increasing government
assistance, and enhancing the regulatory framework, among
other reasons. Steady advancements in the drug discovery
technologies are paving the way for new and unique products.
In this edition of Pharma Tech Outlook, we bring the listof top 10 drug discovery consulting/services companies inAPAC. The edition features Axcelead, a Japan-based pharma
and biotech company that helps drug institutes streamline theimplementation of drug discovery procedures. The company
offers a one-stop-shop service tailored to the needs of eachprocess. Another company that finds its place in the list isGemseki, a company that has contributed immensely to thepharmaceutical industry. The company serves as a connecting
agent for licensing-in/licensing-out of drug candidates, drugGemseki
recognized byTECH OUTLOOK

discovery technologies, and therapeutic targets. Gemseki
provides a detailed summary of the candidate drugs ortechnologies when inquired. Based on the information,customers can choose to involve in the process of due diligence.
Similarly, PharmAbcine, a research-oriented biotech company,
focuses on the development of therapeutic antibodies.
The company has created many pipelines under clinicaldevelopment. For commercializing antibody therapeutics
PharmAbcine’s services come across one of the best choices.
Also, the cost and scope of every service are determinedthrough prior consultation.
With several innovative services and success stories up
their sleeves, these companies are constantly proving theirability in the drug discovery expanse. We hope this issue ofPharma Tech Outlook helps you build the partnership you andyour firm needs to drive success.
We present to you Pharma Tech Outlook’s “Top 10 Drug
Discovery Consulting/Services Companies in APAC - 2019.”

Company:

Description:

Key Person:

Website:Gemsekimagazine asProvides a platform for pharmaceutical,
biotech companies, and academic
institutions to connect through partneringand licensing easily

DRUG DISCOVERYCONSULTING/SERVICES COMPANIES IN APAC - 2019

An annual listing of 10 companies that are at the forefront of providing
Drug Discovery Consulting Services and impacting the marketplace

Hideyuki Hirama,
President and CEO
Dr. Ryoichi Nagata,
Chairmangemseki.com/en/