BIOTECHNOLOGY BUSINESS BUILDING A BIOTECH COMPANY SINGAPORE BIOTECH
BIOTECHNOLOGY BUSINESS BUILDING A BIOTECH COMPANY SINGAPORE BIOTECH PTE LTD SMU/JK/STEC 210/L#3
BUILDING A BIOTECH COMPANY • SINGAPORE BIOTECH • BIOTECHNOLOGY CENTRE OF TAIWAN • ACQUISITION OF TECHNOLOGY FOR PRODUCTION OF HEPATITIS B VACCINE • TECHNOLOGY AVAILABLE-PLASMA DERIVED HEP. B VACCINE • >300 MILLION CARRIERS WORLDWIDE
STEC 210 Biotechnology/Bioentrepreneurship ISBN 13: 978 -981 -4266 -59 -8 Publisher Straits Times Press
IMPORTANCE of TECHNOLOGY There are THREE WAYS to ruin yourself GAMBLING, WOMEN& TECHNOLOGY GAMBLING is the FASTEST WOMEN are the most PLEASURABLE TECHNOLOGY is the MOST CERTAIN ……Former French President Georges Pompidou
STRATEGIES NATIONAL AGENDA - Reduce/Eradicate Hepatitis B Recognized ASEAN initiative-ASEAN INDUSTRIAL PROJECT CATALYST- Birth of Home Grown Biotechnology Industrialization STRATEGIC ALLIANCE- World Class Biotechnology Companies
RETHINK Manpower with Technical Expertise? Source of Raw Material? ASEAN corporation? Government or Private Enterprise?
TECHNICAL EXPERTISE LOCAL TALENT FOREIGN TALENT SELLS BETTER IF ASEAN IN OUTLOOK
RAW MATERIAL SINGAPORE ASEAN POPULATION -4 Million POPULATION-500 Million 10 % CARRIER RATE 12 % CARRIER RATE PLASMA POOL-400 k PLASMA POOL-60 Million LIMITED SUPPLY ABUNDANT SUPPLY
GOVERNMENT OR PRIVATE? REGIONAL WITH ASEAN PARTNERS PRIVATE WITH ASEAN PARTNERS / GOVERNMENT PRIVATE COMPANY WITH ANY SHAREHOLDERS GLC + PUBLIC COMPANIES + PRIVATE COMPANY
SINGAPORE BIOTECH TEMASEK DBS BANK INTRACO US SUMMIT CORPORATION
SINGAPORE BIOTECH SINGAPORE’S FIRST BIOTECH COMPANY LINCENSEE of Merck Sharp & Dohme (MSD) from new chersey HEPATITIS B VACCINE MANUFACTURER ASEAN industrial project*
SINGAPORE BIOTECH LICENSING AGREEMENT MERCK SHARP & DOHME(MSD) PRICE >>US$ 1 Million TECHNOLOGY IN PRODUCTION ACCESS TO NEW TECHNOLOGY? MARKETING RIGHTS?
Inactivated - Heptavax-B MSD - B Hepavac SB Hepatitis Vaccine B Contained hepatitis B virus surface (s) antigen (HBs. Ag) particles - pooled blood of hepatitis B virus-infected (HBs. Ag-seropositive) donors. Vaccine subjected to multiple viral inactivation*
COMPETITION –SINGAPORE & TAIWAN SINGAPORE BIOTECHNOLOGY CENTRE-TAIWAN
TAIWAN-BIOTECHNOLOGY CENTRE PURE GOVERNMENT INITIATIVE PLASMA POOL ABUNDANT-23 Million @ 12%=2. 76 Million NATIONALISTIC IN OUTLOOK DETERMINATION TO COMPETE WITH SINGAPORE
BIOTECHNOLOGY CENTRE OF TAIWAN LICENCING AGREEMENT- PASTEUR INSTITUTE PRICE-? TECHNOLOGY IN PRODUCTION-SIMILAR* ACCESS TO NEW TECHNOLOGY? MARKETING RIGHTS-TAIWAN ?
LESSONS LEARNED HORRENDOUS TECHNOLOGY LONGEST PROCESSING TECHNOLOGY-25 WEEKS POOR YIELD PERCEPTION of NOT SAFE-AIDS EPIDEMIC PERIOD TECHNOLOGY OBSOLESCENCE
PROBLEMS ? ? PUBLIC OPINION- A BIG ISSUE EPICENTRE OF HIV IN USADOUBTS RAISED THREE STAGE INACTIVATIONDEEMED SAFE Pepsin (p. H 2), Urea (8 M) & HCHO ( 0. 01% wt/vol)
HEPATITIS B VACCINE PLASMA DERIVED RECOMBINANT DNA TECHNOLOGY
r. DNA vs PLASMA VACCINE Available within a year Process- simple Yield- very high Safety & Public Opinion -no issues Technology Obsolescence- in sight
DILEMMA-ABANDON or PROCEED? ? SINGAPORE BIOTECH ABANDON RENEGOTIATE TERMS OF AGREEMENT RETROFIT STRATEGY OEM MANUFACTURING FULFILL NATIONAL HEALTH AGENDA Dr. MAURICE HILLERMAN, VP of MSD INC.
SB-RENEGOTIATED DEAL MANUFACTURER MARKETING-OEM
SINGAPORE BIOTECH MARKETING RIGHTS FOR ASEAN PROFITABLE WITHIN ONE YEAR RELOOK INTO r. DNA TECHNOLOGY FULFILLED NATIONAL NEEDS
TAIWAN-PROCEEDEDUSD 120 M Plasma Vaccine Plant Plasma Vaccine < 1 Year Technology Obsolete
TAIWANWENT HEADLONG BULIT A $120 MILLION FACILITY PROBLEM WITH SAFETY AMONGST PUBLIC NO RENEGOTIATION OF AGREEMENT FINALLY ABANDON PROJECT
LESSONS LEARNED TECHNOLOGY or MARKETS OPTIONS in AGREEMENT MAKE the BEST DEAL PRAGMATISMCUT LOSS TECHNOLOGY OBSOLESCENCE
Maslow’s Hierarchy of Needs Self-actualization personal growth and fulfilment Esteem needs achievement, status, responsibility, reputation Belongingness and Love needs family, affection, relationships, work group, etc. Safety needs protection, security, order, law, limits, stability, etc. Biological and Physiological needs basic needs- food, shelter, clothing, water
Maslow’s Hierarchy of Needs 1940 Pyramid of Needs
Maslow’s Hierarchy of Needs 1940 Pyramid of Needs GLOBAL COUNTRY SELF
National, Regional & Global NEEDS GLOBAL REGIONAL ASEAN NATIONAL SINGAPORE
CURRENT STATUS HEPATITIS B BUSINESS CONTROLLED BY MNCs-MSD & GSK GLOBAL DOMINANCE given only 20 years STRATEGY-KEEP KEY TECHNOLOGY PROLIFERATION OF GENERICS
What Impact SB has on Singapore ? Economy-Provided a CATALYST to attract Biotech investments Health- Lowered the carrier rate of Hepatitis B from 10% to less than 2% * Social-Educated people on vaccination program. * Vertical Transmission-Mother to child transmission Horizontal Transmission-adult population Business-Entrepreneurial opportunities Medisave Program*
STEC 210 Biotechnology/Bioentrepreneurship ISBN 13: 978 -981 -4266 -59 -8 Publisher Straits Times Press
What became of Singapore Biotech? >>>Innovative Biotech Group of Companies in ASEAN
Bumpy Ride…. . Innovative Biotech> Biotech Medical Corp(Malaysia)>Biotek Medica(Indonesia)>Biotech Medical Corp(Hong Kong) ->Niche Medicals(Singapore)
CHALLENGES = CRISIS……………… CHINESE SAYING
Lessons Learned SUCCESS is a result of lessons learned from FAILURES
CASE STUDY # 3 Hep B Who made the best deal? Licensee or Licensor? Licensee-Singapore or Taiwan? What was critical in the Technology considered? Why did Taiwan proceed and then abandon project? Why did Singapore abandon the project and then restructure the deal? Was the Licensor serious about new technology transfer? What did we learn about GLOBAL Business by MNCs? MNC-Good & Responsible Corporate Player? Success & Failure-Lessons Learned in Building Companies
CASE STUDY # 3 a Hep B –Singapore Biotech vs Biotechnology Center of Taiwan Who made the best deal? Licensee or Licensor? Licensee-Singapore or Taiwan? What was critical in the Technology considered? Why did Taiwan proceed and then abandon project? Why did Singapore abandon the project and then restructure the deal? Was the Licensor serious about new technology transfer? What did we learn about GLOBAL Business by MNCs? MNC-Good & Responsible Corporate Player? Success & Failure-Lessons Learned in Building Companies Hep B Program-what impact on Singapore & World? SINGAP ORE BIOTEC H
Case Study # 3 b CORDLIFE LTD & CHINA CORD BLOOD CORP Discuss the technology in cord blood banking Discuss the business model of these two companies. What are the similarities and differences in their modus operandi? What are the pros and cons of listing in USA and Australia? What are the criteria used for choosing which stock exchange to list in? Why is there no interest to list in their country of origin? Which company will be more successful?
DCASE STUDY #3 c Discuss the M & A of GENZYME by of SANOFI AVENTIS Discuss the M & A of Genzyme by Sanofi Aventis What are the objectives of this M & A ? Does the price paid justifies the acquisition? What are the synergies between these two companies? Is M& A the trend with big pharma companies or organic growth is preferred? What benefits are there for the current shareholders? How difficult is the integration of these two companies? Do you think it is a good M&A?
CITATION Text/Web/Video References Hepatitis B virus information video* http: //www. youtube. com/watch? v=JVsji. IIG_f. E Hepatitis B http: //www. youtube. com/watch? v=U 5 g. Dwag 1 Lw&feature=more_related Gabriel Onn Chong Jin & Karen Kwek; A Canver Vaccine that transformed Sngapore and the world; Publisher Straits Times Singapore Biotech- new hepatitis vaccine, The Straits Times, 29 July 1986, Page 12 http: //newspapers. nl. sg/Digitised/Article/straitstimes 19860729. 2. 21. 14. aspx
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