Alliance Management: An Exclusive Interview with Roche

In the November 2006 edition of the PharmaVentures Business Review we take a look at Alliance Management. We review the key components that are needed for successful partnering as well the various strategic approaches that can be used to aid in alliance management. In our Face-to-Face interview we talk to Eric de la Fortelle from the Pharma Partnering team at Roche about the company’s alliance management approach and partnering strategy. As always, we have our monthly round-up of major deals and transactions from the previous month's industry activity.

The Month in Review

Analyst coverage of the following important deals and transactions from the past month:

To learn more about the major deals and transactions from the previous month’s industry activity, you should view PharmaDeals Intelligence bank, a comprehensive and global source of deals information. With financial information, news alerts and legal agreements, this searchable resource, which is compiled by analysts and consultants, is an essential deal making tool.

• Roche's and Plexxikon's development and commercialisation agreement for Plexxikon's novel targeted cancer therapeutic PLX4032
• Gilead Sciences' two-step cash acquisition of Myogen for US$2.5 B
• Johnson & Johnson's US$410 M OTC divestment deal with Chattem
• Ambrilia Biopharma's US$232 M HIV/AIDS protease inhibitor licensing deal with US-based Merck
• Boehringer Ingelheim's US$510 M acquisition of Johnson & Johnson's OTC product Zantac™
• InterMune's and Roche's US$530 M collaborative R&D deal for the commercialisation of InterMune's HCV protease inhibitor programme
• Eli Lilly's US$2.1 B acquisition of long-term collaborative partner ICOS.
• Merck's US$1.1 B acquisition of RNAi biotech company Sirna Therapeutics

The Business Report

In this month's business report, we take a look at strategic alliance management and examine the factors that that can make the difference between a successful alliance and a terminated deal. We highlight the different types of risk and the conflict inherent in the alliance management process, and discuss the practical approaches that can be taken in order to avoid alliance failure. These include using alliance risk diagnostics, establishing the 'rules of engagement', specialist problem-solving techniques and calculating an 'alliance scorecard'.

Face-to-Face

Fintan Walton talks to Eric de la Fortelle, Global Head, External Research and Technology, F. Hoffmann-La Roche, about his role within the Pharma Partnering Group at Roche. Eric outlines the structure of the Pharma Partnering Group and Roche's overall model for alliance management. The discussion covers Roche's long-term alliance with Morphosys and the integrated approach that has allowed the companies to harness both science and business, and develop and maintain a successful alliance. Eric also highlights the importance of flexibility in management strategy when assesing alliance candidates and gives an overview of what Roche looks for in a potential partner.