Want to be a partner of choice? Distinguish yourself in the space

Many in the life sciences space would argue that partnerships are integral to achieving success throughout the clinical journey of a drug, through its commercialization and distribution. However, like many sectors, when it comes to deal-making in a saturated space, there is usually more than one company looking to be the partner of choice.

At BIO 2024 in San Diego, California a panel of experts discussed the need to be different and shared tips and tricks on how to become early innovation partners of choice. Moderator David Kane, managing partner at Arc Bio Communications, pointed out that “it is a crowded field and there is a need to stand out.”

Peter Sandor, head of corporate strategy at Astellas Pharma, echoed sentiments that were raised at multiple sessions during the conference regarding “how Innovation is always needed, we are reliant on each other,” but “it always comes in waves.”

With the economic market having a clear effect on what type of deals are made and when said deals are signed, Sandor told delegates it is key “to talk to each other early” because you “need to talk a lot to understand each other [and] figure out where we have synergies.”

Helena Chaye, CEO of oncology-focused KaliVir Immunotherapeutics, backed up his point by discussing why the firm decided to partner with Astellas in December 2020 to develop and commercialize VET2-L2, an intravenously administered oncolytic virus for immuno-oncology.

“Why Astellas? Not only did they have an oncolytic program in house to help them understand our program, [their] speed really led the way for them to be our partner. Astellas came with the term sheet, and they were incredibly fast, [and] they won by being fast and making fast decisions.”

She added: “We started planning a partnering strategy immediately and had the discussions really early [on] before the company was even launched.”

Olga Granaturova, co-founder and president of precision medicine firm PriveBio, agreed with Chaye and Sandor, telling the audience “You have to start thinking about your partnering strategy even earlier. It is an integral part of your business strategy, [and] it goes hand-in-hand with your financial strategy.”

She placed emphasis on the importance of introducing your company and/or platform technology “much earlier” even if you are not planning on forging a partnership at that time. Additionally, “you want to talk to investors before you need the money so that you have relationships you can then build on your story telling and when you come to partner” you already have connections.

Alongside the benefits of forging relationships to facilitate potential future deals, Granturova said it is another way “to see how teams work together and how collaborative they are. Small biotech’s are your babies, and you want to see the baby taken care of.”

Pit or peak: Non-market dependence

Partnerships are not exempt from feeling the ramifications of the financial market, as a separate panel at BIO discussed.

Joseph Baroldi, CEO of RNA-focused Ionis Pharmaceuticals, told delegates he thinks “of a choppy market being when it is down [like it is] right now and then also when it is at its peak.”

The ebbs and flow of the market can propel leaders to change their partnership strategy, but Baroldi said your “strategy should not change whether you are in an up market or a down market.”

Barbara Kosacz, COO of clinical-stage biopharmaceutical firm Kronos Bio, echoed Baroldi’s sentiments, telling delegates: “You want to have a steady and consistent strategy.”

However, while she agreed consistency is an integral part of deal-making, she added that she would “put an asterisk on that [because] you can have a strategy but if the logistics are not there, then you are kind of screwed.”

Additionally, Kosacz warned attendees about the dangers of business development focused workers driving “while looking in the rearview mirror.” She suggested members of the audience “might have a board of people who will tell you about all of the deals that have done well in the past,” but this becomes meaningless as “you have to understand the conditions you are actually working in.”

Stacy Feld, regional head of venture group Johnson & Johnson Innovation, said it is “looking at making strategic investments and partnerships regardless of where the macro is” but as “a large company, we also need to maintain a consistent approach.”

Additionally, she said companies can position themselves strategically “when the financial markets are not as sunny.” For example, firms should have a strong IP portfolio, a reason why they have decided to develop transformational therapies, and the ability to create visibility through pitches.

Another element of the panel discussion raised by Kosacz concerned the art of being realistic. When it comes to deal-making, “there is the deal you want to do, and the deal you can go and get done.” While she said, “it is a complicated ship we are dealing with” and “election year is always tough,” the panel maintained a level of optimism surrounding deal-making in the sector.

Baroldi commented “public markets are pretty tight, but the private markets seem pretty open if you have a good idea. I think partnering is very much alive and active and things are kind of getting back to normal.”