“business development”? − the case of biotechnology - sbr ...

BUSINESS DEVELOPMENT
function is to search for those new products and technologies that are candidates for what we
call pipeline or input deals. Examples of case study companies that in-licensed products are
Curacyte (TPO, FXa/FXIIIa, IL-4), Wilex (antibody G250), Axxima (inhibitor AXD 455),
Biofrontera (project “infl ammable skin diseases”) and Jerini (Icatibant); examples of companies
that in-licensed technologies to broaden their platform were MPB Cologne (transformation
technologies), Mice & More (knock-out technologies), Micromet (activating HAB-Technology),
NOXXON (SELEX TM ), MEMOREC (SAGE TM ) and GPC Biotech (e.g. DEUS-
PS, Bryostatin-1). Another option is to acquire or merge with other companies that have a
product or technology portfolio that is attractive to the acquiring company. However, in our
research period, this option was realized only in two cases. In 2002, Curacyte merged with the
U.S. based VitaResc Biotech, Inc. in order to get access to a Phase III product. In 2000, GPC
Biotech merged with U.S.-based Mitotix, Inc. (Jerini announced a merger in the beginning of
2003 with Dutch alliance partner Kiadis BV, but later withdrew from this position.)
Table 2: Task descriptions of business developers (examples from our interviews)
Task description Evidence (examples)
Re-filling the
research pipeline
and “partnering”
of projects
Commercialization
of products
and technologies
Network building
and pre-negotiation
of deals
“For us, BD means having the opportunity to continuously generate an inflow
of project opportunities for the company’s project portfolio, which means that
we screen and evaluate projects in order to decide whether or not to include
them in the project portfolio. Further down the road, when the company has
grown and matured, we will have to get rid of some projects. This is also a form
of BD! But right now this is rather irrelevant, because we are not that far yet.
Currently, we are focusing on the input aspects, finding technologies and integrating
them in our company.” (Curacyte)
“BD in our company is scouting for new technologies or products that are available
for licensing.” (Wilex)
“One main aspect of BD is the commercializing of technologies, products and
intellectual property. Moreover, BD is responsible for the licensing of technology
[…] The whole purpose of BD is to develop relationships with the pharmaceutical
industry and push those until the deal is closed.” (GPC Biotech)
“BD is the identification of the right partners and customers as well as the establishment
of a network. For this purpose, the BD function continually represents
the company to the outside.” (Xerion Pharmaceuticals)
“The most important task of BD is to develop business relationships with customers
and partners. These relationships should be on a long term basis, which
we try to establish throughout our various business divisions. Even if this is just
a conventional service, the relationships with the customers are very important
since they normally order larger amounts, and complicated contracts have to
be negotiated. Additionally, in our Drug Discovery division, many in and out licensing
projects are present which also definitely belong to BD.” (Jerini)
“For us, BD is mainly initiating business partnerships. You have to talk to people
and develop contract models: How can such a partnership generate revenues?
How much can you ask for? What are the costs? How high might the milestone
payments be? In addition to the acquisition of customers, the development and
negotiation of contracts is also part of my job.” (4SC)
SBR 59 April 2007 176-199 183