9th Swiss-Scandinavian Bio-Business 2015 Roche Diagnostics Business Development: Partnering to bring R&D excellence and global reach
9th Swiss-Scandinavian Bio-Business 2015
Roche Diagnostics Business Development: Partnering to bring R&D excellence and global reach
Diagnostics
Roche Group: Our Structure
Roche Diabetes
Care
Roche Professional Diagnostics
Roche Molecular Diagnostics
Roche Tissue
Diagnostics
Pharma
Chugai Genentech Roche Pharma
Sequencing Unit
Roche Group: Our Distinctiveness Optimally positioned for the future
• Combined strengths of Pharmaceuticals and Diagnostics
• Synergies in research, development and marketing
• Unique global network of alliances
• Pioneering personalized medicine
Early detection
Leader in Diagnostics
Leader in Pharma
Prevention Diagnose Therapy Therapy monitoring
Diagnostics
Roche Group: Our Structure
Roche Diabetes
Care
Roche Professional Diagnostics
Roche Molecular Diagnostics
Roche Tissue
Diagnostics
Pharma
Chugai Genentech Roche Pharma
Sequencing Unit
Professional Diagnostics Business Area
Molecular Diagnostics Business Area
Tissue Diagnostics Business Area
Diabetes Care Business Unit
• Serum work area/immuno-
assays and clinical chemistry
• Point-of-care testing
• Coagulation and specialty
testing
• Workflow management
• Custom Biotech
• Virology
• Blood screening
• Genomics/oncology
• Microbiology
• Women’s health
• Biochemical reagents
• Nucleic acid DNA
purification and real-time PCR
• Primary staining
• Advanced staining
• Workflow management • Digital pathology
• Blood glucose monitoring
• Insulin delivery
• Diabetes management systems
Sequencing Unit offers sequencing solutions for both Life science and clinical segments
7
Clinical IVD
Life Science
Roche Diagnostics: Portfolio Overview Industry leading businesses covering the entire IVD
spectrum
Roche Diagnostics: IVD Market Overview Large and growing market; Roche is market
leader
2013 2018E
Market share Market size
52
66
8
USD bn
Tissue
Molecular
Diabetes Monitoring
Source: Roche Analysis, Company reports, validated by an independent IVD consultancy
CAGR +5%
5%
10%
8%
2%
Professional
20%
11%
10%
8%7%3%
41%Others
Biomerieux Danaher J&J
Siemens
Abbott
Roche
Roche Diagnostics: Our Strategy Differentiation through innovation in testing
efficiency and medical value
9
2012 2020
Medical Value
Drivers of competitive differentiation
Testing Efficiency
Diagnostics BD: What we offer Beyond the deal
Roche is consistently raising the bar for best-in-class performance
Commitment to building relationships for the future
Deal Flexibility
Single point of contact
Negotiation Market Access Integration & Partnership Mgt
Executive leadership and governance management
BD team with responsibility for early integration plan
R&D and Manufacturing expertise
Market leading breadth & depth of IVD technologies - largest installed base in the industry
Access to leading PHC related pharma pipeline
Diagnostics BD: Dx Content we look for New Dx biomarkers with high clinical utility; we
value good science, collaborative approach,
patient focus
Required attributes
• Addresses significant unmet medical need with potential for changing standard of care
• Market Attractiveness of Disease Area & Test
• Clinical Evidence to support clinical utility claims
• Technical Feasibility • Solid IP
Platform Fit
Clinical Chemistry Immunoassays ( Single or Multiplex) Tissue Markers (IHC, ISH) PCR (incl Multiplex) Sequencing Marker Data analysis for all platform
technologies
Biomarker disease areas • Oncology • CNS • Cardiometabolic disorders (inc.
Diabetes) • Inflammation • Infectious Disease • Critical Care • Women’s Health
Diagnostics BD: Selected technologies we look for Innovative, enabling Human Healthcare related
Technologies in Life Sciences and In Vitro Diagnostics
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Technology Examples Scope
Next Generation Sequencing Innovative clonal or single molecule sequencing technologies, sample preparation and data analysis/bioinformatics
Innovative PoC (Immunoassays & NAT) High performance, easy to use, low cost POC technology ideally for both Immunoassays & NAT
Non-Invasive Glucose Monitoring Non-invasive spot and/or continuous monitoring
Digital Pathology Complete imaging workflow solutions
Circulating Tumor Cell Technologies Non bias, high yield CTC collection technologies
Mass Spectrometry High performance, compact low cost MS system suitable for IVD
Digital PCR High performance, compact, low cost digital PCR system
Multiplexing NAT / proteome multiplexing systems
Source: Roche Diagnostics Div. BD Analysis (CTO)
Note:
Diagnostics BD: What we are not looking for Outside our Strategic Scope Diagnostics
• Medical devices • In vivo Dx imaging – MRI, PET, CT • Hospital information systems (e.g. EMR, Admin, ..) • Healthcare Services ( e.g. Disease management, Home care, Payer
management,…) • Lab services w/o proprietary content • Standalone consulting or education businesses • Veterinary Dx
Life Science
• Basic lab supplies (tubes, syringes) • Lab Furniture • Applied testing
– Food, – Forensics – Agriculture – Bioterrorism
• Lab services
Diagnostics BD: Risk-sharing deal structures Mix of structures as common solution
M&A • Immediate change of control &
ownership
• Immediate transfer of full risk to buyer
• No future involvement and profit sharing for seller
Earn-out • Purchase price dependent on
future events • Immediate change of control &
ownership • Proper definition of earn-out
measures / events important
Co-Development • Initial upfront payment • Sharing of further development
control, costs & profits • Shared development activities
require full transparency and therefore full trust
Option Deal • Upfront payment • Control remains at seller under
defined conditions • Buyer can but does not have to
exercise the option to acquire at a defined point in time
Licensing • No change in ownership • Change in control under defined
conditions • Upfront payment combined
with future profit sharing
Risk born by buyer Risk born by seller
Diagnostics BD: How we work From opportunity to partnership and beyond the deal
Strategic fit Alignment with strategic (Dx Content, Technology/Regional)
needs/Opportunistic
Business case Will this bring value to both companies?
Medical value Will this test result /technology enable novel and important physician
action?
Want Defining our search
Empowered negotiation team Decision-making authority Access to top management
Philosophy of partnership Long-term view Seat at the development table Major role in integration
One size doesn’t fit all Tailored deals Creative variations on known themes
- License, option, portfolio, acquisition
Get
Personalising deals
Manage
Building collaborations Want Definining our focus
Find Indentifying partners
Get Personalising deals
Manage Building collaborations
Testing efficiency Will this technology / platform provide a better solution for our IVD
and Life Science customers today and in the future?