RALEIGH, N.C., May 6 /PRNewswire/ -- While the Japanese economy may have struggled over a decade, there are still deals being made between American biotech companies and Japanese corporate partners.
In an LES Mini-Plenary Session, representatives from Kyowa Pharmaceutical, Inc. and Medarex, Inc. spoke of recent deals between their companies and why alliances are better served with flexibility and adaptability.
Kyowa General Counsel and Vice President Joseph J. Brindisi commented, “I once heard that the meaning of ‘Win, Win’ at (a huge American company) meant ‘we’ve kicked their a** twice.’ That’s not what we call a flexible alliance.”
Medarex Director of Business Development Mindy Brooks and Brindisi outlined the license agreement for BioWa (Kyowa subsidiary) Potelligent technology to be applied to antibodies developed by Metarex.
Key factors for their deal-making success include: -- Both parties understand the need and benefit for change in the agreement. -- Parties must actively build credibility and trust to ensure “buy-in” for change. -- Going in, the parties must be fair, realistic and committed to long- term success.
In one instance, a major renegotiation was required after Medarex acquired a company and inherited an attractive agreement with Kyowa that nonetheless required some rework. That injected the issue of loss of face, traditionally an awkward prospect for Japanese firms.
Brindisi explained, “It was important that the whole story was communicated in Tokyo and that it was clear that the original agreement was fine for its time. But now a new party is involved and things have changed. Also, there was a substantial amount of money involved. Even in Japanese, money talks.”
In another LES session, a collaboration between Argos Therapeutics, Inc. of Durham, N.C. and the pharmaceutical division of Kirin Brewery was examined by Argos Vice President of Business Development Jeff Abbey and Bill Wofford, a partner with Hutchison+Mason PLLC.
This agreement called for combining a cell-based immunotherapy technology developed by Argos to combat cancer with the capital and manufacturing savvy of Kirin. As is traditionally the case with Japanese partners, the deal took a long time.
Abbey recalled, “We first met with Kirin in the fall of 2001 and the deal was signed in June of 2004. That said, there’s lots to be said for making sure that this is a partner you want to live with for a long time.”
Abbey continued, “Our work was made easier when we fully understood what points Kirin was willing to negotiate and those they weren’t. As an example, we realized early that this was a transformational deal for them and they did not want their rights to be limited to Asia.”
A key point for Argos was retaining the full rights to existing intellectual property going in, even though Kirin was footing half the bill. Wofford, Argos’ attorney in the negotiations, noted, “Both parties brought technology to the deal but the core technology belonged to Argos.”
A NEW GRID COMPUTING CULTURE?
David Rizzo, President and CEO of the Microelectronics Center of North Carolina (MCNC) believes that grid computing “can actually be more powerful than the Internet, because the Internet offers only access and grids offer actual utilization.”
In the “Grids: The Next Big Computing Alliance” Mini-Plenary Session, Rizzo explained that computer grids allow multiple computing platforms and data sources to operate as a single computing system. He noted that more than 10,000 such grids are already being used, mostly in private businesses and in universities.
Rizzo believes that grid computing can greatly increase productivity and large savings are already being realized in the automobile, pharmaceutical, financial, aerospace and healthcare industries.
He cited a North Carolina study that grid computing could add $10.1 billion to output in the state by 2010, along with $7.2 billion in personal income and 22,000 additional jobs. Then he said, “I don’t really believe that, but suppose it’s only half of that?”
Rizzo told listeners, “The very nature of grids is based on open-source software technology ... Bill Gates (Microsoft) is fortunate to have made his money when he did.”
SEEKING A NEW OUT-LICENSING APPROACH
The most socially-responsible pharmaceutical companies will work harder to fight devastating health calamities in emerging and Third World countries, according to University of Ottawa law professor Dr. Amir Attaran.
In his LES Mini-Plenary discussion of improving access to medicine in poor countries, Attaran said, “I would ask that the drug manufacturers try to develop a (drug) licensing procedure that retains license protection in advanced countries and freely releases the medications in poor and Third World countries.”
He singled out Swiss giant pharmaceutical firm Novartis for special praise. Attaran related, “Working together with public health officials, Novartis is committed to providing the (anti-malaria drug) Coartem at no cost. As a result, I believe 200,000 to 300,000 children are being saved each year.”
WHERE HAS OUR LEADERSHIP GONE?
According to one economic developer leading a closing session at the LES gathering, it’s not that difficult to determine why community leadership doesn’t seem to be as effective as it once was. Ted Abernathy, Jr. of the (North Carolina) Research Triangle Regional Partnership cites four factors:
-- Globalization: Abernathy said one North Carolina CEO recently missed three successive civic committee meetings because he was away doing business, on three different continents. -- Digital Revolution: People don’t talk face-to-face anymore and it’s harder to develop a sense of cooperation and intimacy. -- New Demographics: Power and leadership access come in many different forms now, including gender, race, background, history and lifestyle. As Abernathy wryly noted, “We have leaders who ride a skateboard to work.” -- Devolution of Authority: Abernathy says there are no “benevolent dictatorships” around anymore and “people don’t know where to turn for leadership.” PRESIDENT CITES STRONG ATTENDANCE AT MEETING’S END
LES President Pat O’Reilly commented at meeting’s close, “We have been delighted at the registration and attendance of more than 310 licensing executives of varied backgrounds from around the nation and beyond. We were very proud of our international slate of featured speakers and panelists and have heard excellent comments about the program.”
UPCOMING LES MEETINGS OPEN FOR BUSINESS
Licensing Executives Society (U.S.A. and Canada), Inc. meetings have been announced and planning is being finalized for gatherings ranging from coast to coast. Coming up October 16-19, 2005 is the LES Annual Meeting in Phoenix titled “Tools for Licensing in the 21st Century.”
The 2006 meetings are titled “Communicate,” “Connect,” and “Create” and will be held in succession at Pasadena, Calif. (Winter Meeting, February 22- 24); Philadelphia, Pa. (Spring Meeting, May 10-12) and New York City (Annual Meeting, Sept. 10-14).
For additional information, please contact LES soon at 703.836.3106 or by accessing http://www.usa-canada.les.org/ .
Licensing Executives Society (USA and Canada) Inc.
CONTACT: Allen Baum of LES, +1-919-829-4340, or LES, +1-703-836-3106
Web site: http://www.usa-canada.les.org/
