1. business and industrial
2. company
3. joint venture

2010 Annual Meeting
Workshop 5-G:
No Really! This Alliance is Different
How Alliance Managers Help
Ensure a Successful Partnership
Pannie Trifillis, PhD, CA-AM
Assoc Director, Alliance Mgmt
Jan Twombly, CSAP
President
PTC Therapeutics Inc.
Alliances: > $205 million
Venture Capital: $182 million
Alliances
42%
Venture
Capital
38%
Grants
20%
Research Grants: $96 million
 Actively engaged in the discovery and development of drugs for genetic
disorders, cancer and infectious diseases
The Rhythm of Business
► Over 25 years of hands-on experience
designing, building and managing
strategic alliances and collaborative
networks
► Methodologies and measurement tools
applied in large, complex organizations
within
■ life sciences
■ International economic
development
■ energy
■ Information technology
► Member of team that created the first
alliance management professional
certification
► Leaders in the only alliance
management professional organization
► Operational, consulting, research,
academic pedigrees
3
Association of Strategic Alliance
Professionals
► The leading global
professional association
dedicated to the
formation and practice of
strategic alliances
► Networking, professional
development, resources
► Two levels of certification
► Local chapters in US,
Canada, Europe, APAC
4
The Alliance Portfolio Grows
► 60 – 70% of
revenue in some
companies
► 50% of new
products in many
companies
► Outsourcing
entire business
processes
A
Career
A Job
A
Responsibility
Dedicated alliance management is a
key success factor for alliances.
An increasing number of alliances
means managing alliances is also a
job in a career path and an assigned
responsibility in addition to one’s
5
regular job
Typical alliance management
mission
► Maximize the
value realized
H
Management Complexity
Potential Value
► Minimize the
risk of failure
caused by
complexity
Risk
Value
L
Time
6
Tell me what you do?
7
Discussion questions
► Describe your job as an alliance
manager
– In what ways does having an alliance
manager contribute to the success of
an alliance? Concrete examples of
things that you’ve done that
otherwise would not have been done
8
Roles of an alliance manager
► Central empowered contact accountable for
execution of the alliance
► Facilitates communication, meeting
coordination and data exchange
► Participates on all committees as observer or
committee member
► Representative of partner within PTC
► Representative of PTC to the partner
► Key figure in alliance success
Strategic function of an alliance manager
► Develop alliance timelines, goals and
objectives
► Build internal alignment around collaboration
goals
► Ensure program execution with respect to the
intent and goals of alliance
► Anticipate and resolve potential areas of
conflict or misalignment with partner
► Maintain consistency across alliance portfolio
Tactical function of an alliance manager
► Develop alliance processes and codes of
conduct
 Project charter
 Research plan
 Communication plan
 Governance structure and team interactions
 Decision making process
► Manage budget and resourcing commitments
and expectations
► Develop metrics to measure alliance health
and implement corrective action
Operational function of an alliance manager
► Interpretation and execution of the
contractual aspects of the agreement
► Execution of agreed upon processes and plans
► Manage relationship with partner
► Manage relationship with internal
stakeholders and team members
 Ensures buy-in and alignment
► Facilitate communication, meeting
coordination and data exchange
 Shared collaboration e-space
Rallying people and their resources to
achieve the vision of the alliance
Discussion questions
►In what ways does having alliance
management professionals give
the company an edge in
competitive licensing situations?
14
Business development and alliance management at PTC
Business Development (BD)
Alliance Management (AM)
► Identify and evaluate new
opportunities
► Implement and manage
alliance
► Perform due diligence
► Negotiate contract and
business terms
BD
Corporate
AM
Development
► Ensure internal and external
alignment
► Identify new opportunities
within existing alliances
Leverage the relationship between AM and BD
to expand the capabilities of both teams
Business development and alliance management
interface during the alliance life cycle
Identify
Negotiate
Manage
BD
AM
Identification
and evaluation
Due
diligence
Negotiation and
contracting
Contract execution
and launch
Management
of alliance
Incorporating lessons learned into
governance design
Strategic Intent
GIVE & GET
GIVE & GET
Strategic Challenges
Strategic Questions
What should we do together?
What should we do individually?
What is the appropriate governance?
Structural Elements
►
►
►
►
►
►
Committee Composition
Roles and Responsibilities
Decision Making Authority
Escalation
Milestones
IP Rights
Behavioral Elements
►
►
►
►
►
►
Communication Protocols
Meeting Management
Decision Making Norms
Conflict Resolution
Evaluation
Review Processes
17
Building synergies between business development
and alliance management: A practical implementation
Original governance structure
JSC*
JPT
JDT^
JPT
JPT
JDT
JDT
• Joint Project Teams (JPT)
– For each target; coordinates early-stage activities until
pre-clinical development
• Structure lead to repetitive meetings and inefficient
communication – specifically during early stages of the
program (assay development, HTS)
* Joint Steering Committee
^ Joint Development Team
Building synergies between business development
and alliance management: A practical implementation
Modified governance structure
JSC*
JCT
JPT
JDT^
JPT
JDT
• Joint Core Team (JCT)
– Early stage project team; coordinates activities from target
selection through Hit Identification
• Structure has enabled more efficient communication and interactions
• Lessons learned for one target can quickly be applied to the others
• Joint Project Teams (JPT)
– For each target, takes over research leadership when project
enters Lead Identification
* Joint Steering Committee
^ Joint Development Team
Another approach to speeding decision
making and communication
Joint
Steering
Committee
Joint
Steering
Committee
Joint
Development
Committee
Joint
Marketing
Committee
Joint
Study
Committee
Promotional
Review
Committee
Joint
Leadership
Team
Working
Team
Ad Hoc
Working
Group
Ad Hoc
Working
Group
Working
Team
Ad Hoc
Working
Group
Joint Leadership Team is
comprised of Alliance
Managers and heads of
working teams
20
The Alliance Manager
►Not everyone can be an alliance
manager. What qualities,
characteristics, skills and
experience are required to be a
successful alliance manager?
►How did you become an alliance
manager?
21
Skills of an alliance manager
►
►
►
►
►
►
Excellent communication and interpersonal skills
Ability to foresee potential problems and propose
solutions
Decision making and negotiation skills
Ability to manage by influence
Coordinate and align internal teams
Business knowledge


►
Scientific background and/or understanding of
functional area

►
►
Industry knowledge
Financial analysis skills
Discovery, clinical, regulatory, manufacturing, commercial
Manage day to day project activities
Manage resources and budgets
Project planning and scheduling

Gantt charts
Alliance management in biopharma
today
► Small groups – usually 3 to 5
people
► Most commonly manage 2 or 3
alliances
► Larger groups manage more
alliances per person
23
Implications
►Some alliances aren’t managed
►Some are managed by other
functional managers
 Typically project/product managers,
occasionally BD
►The role changes over time to
accommodate the larger portfolio
24
Is a dedicated alliance manager
always required?
Circumstances Justifying Non-Dedicated
Alliance Manager
N/A - Always assign alliance
manager
Well functioning, mature
alliance
Licensor ceded future
participation rights
No governance committee
0%
Source: The Practice of Alliance Management in the Biopharma
Industries, 2010, The Rhythm of Business, Inc.
5%
10% 15% 20% 25% 30% 35% 40%
Percent of Respondents
25
Establishing an alliance
management capability
►Under what circumstances should
an alliance management function
be established?
►Describe the alliance management
function in your company
26
Trigger points which lead to the establishment
of an alliance management function at PTC
►
Availability of a rich technology platform
applicable across many therapeutic areas leads
to




►
Multiple collaborations
Multi-target collaborations
Multi-TA collaborations
Multi-site collaborations
A corporate commitment to work with partners
to flexibly establish collaborations that best
leverage the potential of our technology

No ‘cookie cutter’ deals; each alliance has a different
structure and unique flavor
Align the Capability with the
Portfolio
Management Complexity
25
Investing
Resources





Relationship
Complexity




15









Relationship
Clarity
5
5
Leveraging
Resources
15
25
►Strategic Choices
– Positioning in
corporate
structure
– Balance between
full-time and parttime
– Definition of role
and accountability
Potential Value
28
In summary…
Strategic Alliance Management
is a philosophy – a way of thinking –
enabled by a set of policies,
processes, and tools. It is also
a profession and a corporate
function, requiring a defined
vision and mission, structure,
goals, and metrics
29
• Jan Twombly
[email protected]
• Pannie Trifillis
[email protected]