Jan Twombly, CSAP and Jeff Shuman, CSAP, PhD · The Rhythm of Business Overview Embed partnering...
Transcript of Jan Twombly, CSAP and Jeff Shuman, CSAP, PhD · The Rhythm of Business Overview Embed partnering...
Jan Twombly, CSAP and Jeff Shuman, CSAP, PhDSession 502
ASAP 2020 Global Alliance Summit
© 2020 The Rhythm of Business, Inc.
The Rhythm of Business OverviewEmbed partnering throughout the organization.
Create desired outcomes. Fuel innovation to drive growth.
ConsultingStrategize, build, and integrate your end-to-end partnering practice to demonstrate value to stakeholders and partners and outcomes for customers. Design and activate individual alliances
AssessmentsData-driven, contextual analysis provides deep insights that solves problems and drives measurable improvement
Talent DevelopmentHands-on coaching, support on challenging alliances, classroom and individual training to grow partnering and alliance management expertise and collaborative skills
SERVICES THOUGHT LEADERSHIP
REPRESENTATIVE CLIENTS
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©2020 The Rhythm of Business, Inc.
● Present the opportunity digital health represents for alliance managers
● Introduce tech and biopharma alliance managers to each other’s world
● Examine what it takes to bridge the digital divide between tech and biopharma
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The Underlying Assumption of Digital Health for Patients
Digital has the potential to improve the health of millions of patients and radically change the way health
services are delivered by
● Focusing on prevention versus treatment
● Reimagining the patient-provider relationship
● Involving patients in the development of personalized health solutions
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Digital technologies help biopharma companies
innovate new products and services, engage better with
patients, providers, and payers, and operate their
businesses more effectively
The Underlying Assumption of Digital Health for Businesses
Digital health gives info tech companies an exciting market
worth $96B in 2018 and projected to reach
approximately $510 billion by 2026
Source: Acumen Research and Consulting
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Digital Therapeutics
Health Information Technology
Devices, Sensors
Informatics
AnalyticsTelehealth
Personalized Healthcare
Virtual Clinical Trials
The Digital Health Ecosystem is Maturing
Key statistics from 2019 ● $7.4B in digital health investments● Six IPOs worth $17B in total● Over 100 acquisitions
Other milestones● Market authorization for novel
products such as a digital therapeutic in oncology
● New Industry groups (DTx Alliance)● Launch of prestigious journals
(Nature, Lancet)
Source: Digital Healthcare Growth Drivers in 2020, Forbes, January 2020
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© 2020 The Rhythm of Business, Inc.
An Explosion of Digital Health Innovation
Early research in antibiotics assisted with AI
Automated A.I. guided drug design
Analyze data from smartphones and connected sensors aimed at
uncovering novel digital measures of health
Use Qualcomm’s 2net platform to improve an anticoagulation meter
for the US market
RWE analytics to support label expansion
AI to reduce cost and time of drug development
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Tech and Biopharma: Two Innovative Industries that Innovate Very Differently…
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Iterative, agile product development
Rapid development timelines
Move fast and break things
Mobile first
Minimal regulatory concerns
Methodical, waterfall development
Long development timelines
Do no harm, safety first
Complex manufacturing
Heavily regulated
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Increasingly solution focused
Sell with and through, co-selling a new muscle
System integrators or distributors bring multiple products together for the customer
Embed technologies (OEM) in others’ products and white label
Land, adopt, expand, renew
…Go To Market Differently…
Primarily product focused
Significant co-promotion and co-marketing on a global scale
Co-development the norm
Combination therapies
Product-based lifecycle management
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Structured partner programs based on focus of efforts
May or may not have a contract other than the terms of the partner program
Lots of partners doing similar things
Build the stack through APIs
Traditionally either get- or go-to-market
…And Partner Differently
Individually negotiated alliances
Detailed long-term contracts and sub-agreements
Each alliance is unique
License individual assets
Partner from research to commercialization
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No Wonder Tech and Biopharma Alliance Managers Have Different Jobs!
© 2020 The Rhythm of Business, Inc.
High TechDrive Revenue
Develop New Opportunities
Gain Resource Commitments
Engage the Field
Build Out the Ecosystem
Biopharma
Maximize Value and Minimize Risk
Negotiate Amendments and New
Lead Governance
Enable Executive Decision Making
Manage Contractual Restrictions
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Bridge Differences to Create New Value in Digital Health Alliances
Digital Health
AllianceHigh Tech Biopharma
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Digital Health Case Study
● Alliance is between a tech company and a traditional big pharma company
● The pharma company will leverage the tech company’s Internet of Things (IoT) platform to co-develop digital products (apps & digital devices) and collect Real World Evidence (RWE)
● The partners will co-commercialize the digital products as non-exclusive companions to the related pharmaceutical therapeutic
● The digital products are intended to help patients manage symptoms related to their therapy and help them communicate with their care team
● Patients will be provided with a personalized care plan
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What is the Value Assumption?
Customers
● Patients—Applications that help them better manage their disease
● Providers—Data that helps them give better care to their patients
● Payors—RWE of efficacy of the therapy
Tech Company
● The value of its platform increases with the number of products connected to it
Biopharma Company
● Real World Evidence
● Patient Adherence
● Time to Market
● Access to Expertise
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What Is a Likely Alliance Business Model?
Economic Model
● Software subscription
● Revenue share from Tech Company to Biopharma when marketed
● Dedicated resources from Tech company
Operating Framework
● Joint development project team
● Independent go-to-market
Governance Process
● Joint Steering Committee for strategic oversight
● Each party makes its own decisions
Collaboration
● Align on intended outcomes, regulatory pathway, decision making processes, go-to-market messaging
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What Are Some of the Challenges Inherent in the
Business Model?
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A Few of the Challenges
● Economic model more akin to “vendor” model for biopharma
● Organizational structures don’t align, making it harder to identify who should work with whom
● The biopharma requirements of safety and quality are not part of the tech operating focus
● Regulation is new to tech and regulation of digital health products is new for all
● Biopharma alliance governance is bureaucratic
● Trust building, developing understanding must be intentional and worked as a muscle
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How Should the Alliance Managers Work Together
to Bridge Differences?
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Leadership
• Build a “third way”• Maintain organizational
commitment• Champion each other
Collaboration
• Convene the right people• Listen to understand• Leverage each other’s strengths
Governance
• Be transparent about decision making process
• Rigorous stakeholder management
• Align on evidence standards
Outcomes
• Align on a North Star• Agree to milestones and
metrics• Make status against plans
visible to all
Apply the Alliance Management Foundation
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How Should You Bridge Cultures?
Digital Health
AllianceHigh Tech Biopharma
Assume
best
intentions
Explain
your world
– visually
when
possible
Provide
alternatives
when
something
won’t work
Pay attention
to the
elephant in
the room
Work at
trust
building
Celebrate
success,
learn from
mistakes
© 2020 The Rhythm of Business, Inc. 20
© 2020 The Rhythm of Business, Inc.
Tips and Traps to Bridge the Digital Divide
● Allowing stakeholders to think a digital health partnership is like all the others they’ve worked in and that they can maintain the status quo
● Not appreciating and leveraging the core strengths each brings to the alliance
● Failing to be a champion for your partner and the promise of digital health for both technology and biopharma companies
TIPS TRAPS
● Take the time to develop understanding of how each partner innovates, goes to market, and what partnership looks like for them
● Understand your counterpart’s focus and core responsibilities
● Use the Alliance Management Foundation to help you and your counterpart decide how to work together to bridge differences
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You are partners because you are different and together you can innovate, create value, and
learn new stuff
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© 2020 The Rhythm of Business, Inc.
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