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Model

Increasing Sophistication in the Pharma/ Biotech Partnership Model

The last couple of years have seen the life sciences industry propelled into the mainstream news. Advanced technologies like mRNA vaccines and novel antivirals have received unprecedented public attention, and for good reason as the sector provides a powerful toolkit to respond to the global challenge of the COVID-19 pandemic. Investment in the sector has been strong with reports of 2021 surpassing previous records for fundraising for UK life sciences and biotech companies, reaching some £4.5bn. This will support and drive forward continuing innovation Teamed with exceptional levels of investment, we are also seeing increased activity amongst peer-to-peer dealmakers in the sector. Biotech companies with strong proprietary technologies can offer new routes to tackling unmet need alongside more tried and tested approaches to drug discovery. This dynamic can shift the power balance in favour of the smaller partner, which enable it to retain more control over the applications for its technology. Important strands for a biotech partner include the following points. Define carefully the scope and extent of each licence. While licences in the past might have been broadly cast to allow a wide range of activity and target-seeking on the part of the licensee, there is now greater sophistication in the allocation of fields of activity between technology users. In addition to helping the biotech innovator to realise full value for its technology, it also enhances the likelihood that important patient benefits will be realised across a broad range of needs. A licensee will focus R&D effort on its own areas of interest, leaving neighbouring fields to be taken forward by others. Mechanisms to make this work include gatekeeper arrangements that serve both to protect the biotech’s in house programmes and those of all of its licensees. Identify and retain control of fields for in-house R&D. We are seeing biotech innovators select fields that will be reserved for in-house R&D. While biotech companies may in the past have left drug discovery and development to major players with an international presence and well-resourced development machine, many now see carefully defined projects as a part of their own remit. If progressed effectively, these can offer an important potential source of revenue. The high risk profile of in-house development can be offset by revenue streams from out-licensing in other areas. Consider per-target pricing models. Biotech companies are increasingly looking at pricing that is based on the number of targets that a partner will select and take forward using the licensed technology. Where a particular target does not progress well, a replacement mechanism is usually appropriate. However, retaining control over the ultimate number of projects helps the biotech provider to realise full value from its technology. The different shape and character of any particular collaboration will determine the extent to which these considerations apply, but we see these factors coming into play across many types of activity. James Fry, Mills & Reeve www.mills-reeve.com

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More than a membership organisation, One Nucleus is a network with many ways in which to interact and draw benefit from it. Think of it as a social group with a nucleus of core elements which would be active in managing the activities and working on maintaining the connections – this would be your devoted One Nucleus team! – the other elements of the group would then interact as much, or as little as they wanted but sharing a common goal. For the social group it could be as simple as having fun, and for a group like One Nucleus it is to leverage collective strength and intelligence to progress their business, career or product development.

As there is no better place than the Annual Review feature to reflect on this network as a whole, here is a representation of the One Nucleus network and importantly, our valuable members.

Introducing One Nucleus membership

There are numerous reasons for becoming a One Nucleus member including profiling opportunities, making new contacts, sharing and learning with peers, or saving money with our purchasing scheme, but there is always one common factor: the contribution to the life science innovation value chain.

This value chain, ranging from public research institutions to large drug developers with all stages of company in between, is fully represented in the One Nucleus membership accounting for 31% of its total. The discovery and development backbone could not deliver on its promise without the increasingly specialised support from technology providers representing another 30% of the network and ranging from niche technical services in data, chemistry or biology to broad spectrum CROs and CDMOs. The rest of the support is a highly specialised group of professional services helping companies operations as well as their strategic development.

Here is a more detailed representation of One Nucleus members with examples. The breadth of expertise and span of company size is a great reflection of the wider One Nucleus community and one of the keys for the network success.

Understanding the regional dynamic

The One Nucleus membership ecosystem does not exist in isolation, but sits within the surrounding cluster centred on Cambridge; the two sharing a very symbiotic relationship.

Not all of its geographic neighbours, whether public or private organisations, will be One Nucleus members at any given point. The value of membership being dependent on their status, activity plans or employees’ availability to engage. Importantly, One Nucleus maintains comprehensive connectivity with, and awareness of, the whole ecosystem. Our understanding of the whole, not just our members with our flexible approach to engaging non-members, makes One Nucleus the go-to network for the region.

Breakdown of Therapeutics Biotech in East of England

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This breakdown is a good reflection of the key technology expertise in the East of England region. Not only are most of these companies at the cutting edge of their science topic but they are also active deal makers, as analysed in the article ‘East of England’ deal activity on page 32 of this Review.

In conclusion there are many ways to interact with the One Nucleus community, but it always has to start by acknowledging this community - it encompasses both members and the wider network. The annual review is a good place to start with the following A- Z list of members.

In describing the network, the aim is to illustrate One Nucleus’ role in helping all stakeholders to solve the ‘big challenges’; generating the best biotech innovations, developing the best treatments and being the best life sciences cluster.

International Connections for Local Benefits

With Life sciences being a truly global sector, international connectivity is vital. Set out below are some key international facing activities One Nucleus undertakes.

Leveraging international conferences Events like BioEurope or BIO are great opportunities for life science companies to make connections and develop their international footprint. Through our collaboration with EBD group and other conference providers, One Nucleus secures significant discounts on registration fees for its members.

Bringing the rest of the world to us Understanding the life science sector characteristics of other geographical locations is also an important component of international business development. Governments can provide effective overviews and key data but hearing directly from those within an ecosystem often provides more practical insight. We are very privileged at One Nucleus to have a fantastic network of international bioregions, represented below, who are willing to engage in our activities and interact with the One Nucleus network.

Examples of sessions at Genesis 2021 to highlight and connect key international One Nucleus partners included:

Accelerating Market Access for Digital Health Innovation between Québec and UK Learn about the Latest Japanese Startup Ecosystem Hong Kong Biomedical Cluster and Leading IPO Center in Asia

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