partnering , often also referred to as business or corporate development , identifies , acquires , and manages external scientific innovation .
almost half of newly approved drugs originated in academia or the biotech industry and are licensed to pharmaceutical companies for development and commercialization .
partnering is charged with accessing and acquiring these types of external discoveries , which , it is hoped , will translate into new medicines that bring substantial benefit to patients . here
i focus on how partnering is conducted in a pharmaceutical company that is focused on acquiring , developing , and commercializing new assets , also called the  buy - side . 
the complement is the  sell - side ,  which is the company looking to find a licensee or acquirer to take the company s asset forward . traditionally , the sell - side consists of biotech companies and academic institutions .
partnering groups can be organizationally structured in many different ways , but the basic partnering process is always the same .
the four basics steps are want , find , get , and manage ( figure 1 ) .
the partnering teams of roche and genentech ( a member of the roche group ) manage all four steps , but at other pharmaceutical companies , they may be divided among various functions , such as corporate strategy , finance , and project management .
pharma partnering : a well - defined process to capture innovation . want : the first step of the partnering process is defining the areas of interest .
this starts with defining the disease areas that are relevant to the company  for example , oncology or ophthalmology .
the disease areas are then further detailed to the level of pathways and targets of interest
. some companies also have a preference for certain therapeutic modalities , such as small molecules , antibodies , and gene therapy .
this process is usually carried out in collaboration with a group of scientists , clinicians , and commercial experts .
prioritization follows a number of dimensions , such as unmet medical need , scientific validation , stage of development , commercial potential , or strategic fit .
the identification of areas of interest is a collaborative effort across functions and can be led by the partnering or other groups within a company , such as corporate strategy or pipeline planning .
find : once the areas of interest are selected , assets and technologies have to be identified that fit the criteria .
pharma / biotech is a fairly transparent industry with respect to molecules and technologies that are in development .
there are commercial services tracking any molecule ever mentioned in a press release , patent filing , or publication or presented at scientific and industry conferences .
companies that are seeking to partner their assets are usually open about their inventions and frequently communicate updates by press releases .
the challenge is sifting through the mountain of information and finding the innovations that are unique and based on sound scientific work .
solid scientific training is essential , especially for assets that are in discovery or in early clinical development .
a significant amount of work goes into understanding the scientific hypothesis for the approach , the clarity of experimental data , and the advantage over similar molecules .
scientific training prepares one to analyze the data and to discern when good research is conducted . by carefully examining these opportunities ,
get : after identifying suitable assets , the next step is gaining access through a license or acquisition .
once an interest to collaborate is established , confidential data are exchanged under a nondisclosure agreement to gain a better understanding of the innovation . if the asset remains attractive after the initial confidential review , full due diligence of the asset commences .
diligence is a lengthy and involved process and can take several months . depending on the stage of the asset , a diligence team can be composed of 30 experts or more , ranging from discovery scientists to manufacturing and commercial representatives . the group is led by partnering and reviews all the relevant information provided by the potential partner . once the analysis is complete , the findings are presented to senior management with the recommendation to proceed with a license / acquisition or decline the opportunity .
the majority of diligences do not lead to an agreement for various reasons , including intellectual property issues , concerns about efficacy or safety , or positioning against competing products .
if the decision is made to obtain a license or to acquire the company , a negotiation team is assembled that usually involves partnering , legal representatives , and trained negotiators .
a significant amount of time is spent on determining the right structure of the deal , as well as the roles and responsibilities of each party as it pertains to the future development of the asset .
then the parties agree on a term sheet for a license or nonbinding offer for an acquisition .
these documents lay out the rights , obligations , and financial considerations of each party in broad terms .
the successful completion of this initial step leads to the negotiation of a full license or acquisition .
the final step is the approval of the agreement by each company s management or board .
manage : once a molecule or technology is acquired or licensed , the working relationship has to be developed and managed .
this allows for a smooth integration into the company s pipeline and a successful collaboration between the parties .
alliance managers have diverse backgrounds and can come from many disciplines , including research , project management , and clinical development .
there are many roads that can lead to partnering , from both the science and business sides .
i took a fairly circuitous route , and this should merely serve as one possible example . during the last few years of my phd , i realized that i was more interested in applying scientific discoveries than creating them .
there are few things more satisfying than a successful scientific experiment leading to a new discovery . for me , there were too many steps from that discovery to affecting patients .
my decision was cemented when my daily reading switched from molecular biology of the cell to the wall street journal .
when i decided to venture outside of research , i did not have a good understanding of the health care universe or where i could find a home within it .
therefore i sought to obtain broad exposure to the healthcare sector by working in management consulting .
this enabled me to experience first - hand how health insurers , healthcare providers , pharmaceutical companies , and medical device and diagnostics manufacturers operate . with a broad understanding of the healthcare landscape and the advent of the  genomic revolution , 
i went into diagnostics in a strategy role to understand how genomics will shape the industry .
this role morphed into a partnering function as the strategy was implemented through collaboration with various companies .
after diagnostics , i moved to partnering at a biotech company , followed by participating in the founding and running of a biotech start - up .
subsequently i joined genentech in a strategy role and then moved to my present position in roche partnering .
if implementation of scientific discovery is your passion and you are considering options outside of research , then partnering should be on your list .
you interact with great scientific , clinical , and commercial experts , as well as with top - level management .
you even get to work on confidential and code - named projects , adding an extra layer of mystique .
an advanced degree such as phd , pharmd , md , mba , or jd is the entry ticket for most upper management positions in pharma and biotech .
a master s degree in a biological science has very limited benefit when it comes to hiring decisions .
similarly , a postdoc will not significantly increase your odds of obtaining a position in a business function .
it is a surmountable transition to leverage your scientific acumen while learning the business side .
for example , as a phd , you may start as a  scout  in a search and evaluation role .
as you gain experience , you may become a deal - team leader who is in charge of diligence teams , developing recommendations , presenting to management , and negotiating with the partner .
i offer four tips on how to get there : 
 adjust your mindset : to transition successfully , adjusting your mindset from research to business is essential . as a scientist
, you may be studying one tree for years or only the unique fungus that grows on the roots of this tree . in business , it is all about the forest . in business , you need to understand the essential details , but the goal is to draw high - level conclusions and to make recommendations . in that process , you decide what is important and critical and what that means for your work or project .
. then you make recommendations without having all the answers and deal with ambiguity using reasonable assumptions.when interviewing potential partnering candidates , we can usually tell within the first 5 minutes whether someone will be able to alter their mindset .
i have seen people who are academically brilliant but can not concisely describe their research in 30 seconds.be different : for most partnering positions , there will be many applicants , so you have to stand out from the other phd candidates .
i took business school classes while in graduate school and received a certificate in management of technology .
alternatively , you can participate in business plan and entrepreneurship competitions , which have become popular at universities .
will these activities make you stand out in an applicant pool , but they will also help you evaluate whether you even like the business aspects of science .
this allows you to put your toe in the water before you jump in.be flexible : you are hired for your skills , not your knowledge .
no one will expect you to calculate a net present value on the fly , but you have to convince a future employer that you are trainable.consider roles outside of your area of study and maybe even outside of partnering .
i studied yeast genetics during my phd , and since leaving graduate school , the only time i have come in contact with yeast is when i eat or drink it .
it may give you an edge if you are applying for a position where you have expertise , but your skill of analyzing and digesting scientific information is more valuable.in addition , consider positions that may be adjacent to your target position .
it is much easier to move into partnering from within a company than from being external . starting in a position that interacts with partnering  for example , a competitive intelligence group  is a great way to get a foot in the door.go big : i am a strong advocate of joining a larger company when leaving academia rather than a start - up .
most large companies , be they pharmaceutical , consulting , or banking , have the time , programs , and mission to train you and help you build the skills to be successful . nowadays , many large companies have training programs that facilitate a scientist s transition to the business world .
for example , roche has a very successful 2-year associate program in partnering in basel specifically for phd graduates .
. this may not be the official stated purpose , but often phd candidates can apply . ask around your school s alumni network to explore avenues that are open to you .
adjust your mindset : to transition successfully , adjusting your mindset from research to business is essential . as a scientist , you may be studying one tree for years or only the unique fungus that grows on the roots of this tree .
, you need to understand the essential details , but the goal is to draw high - level conclusions and to make recommendations . in that process , you decide what is important and critical and what that means for your work or project .
. then you make recommendations without having all the answers and deal with ambiguity using reasonable assumptions .
when interviewing potential partnering candidates , we can usually tell within the first 5 minutes whether someone will be able to alter their mindset .
i have seen people who are academically brilliant but can not concisely describe their research in 30 seconds . be different : for most partnering positions , there will be many applicants , so you have to stand out from the other phd candidates .
i took business school classes while in graduate school and received a certificate in management of technology .
alternatively , you can participate in business plan and entrepreneurship competitions , which have become popular at universities .
not only will these activities make you stand out in an applicant pool , but they will also help you evaluate whether you even like the business aspects of science .
no one will expect you to calculate a net present value on the fly , but you have to convince a future employer that you are trainable .
i studied yeast genetics during my phd , and since leaving graduate school , the only time i have come in contact with yeast is when i eat or drink it .
it may give you an edge if you are applying for a position where you have expertise , but your skill of analyzing and digesting scientific information is more valuable .
it is much easier to move into partnering from within a company than from being external . starting in a position that interacts with partnering  for example , a competitive intelligence group 
go big : i am a strong advocate of joining a larger company when leaving academia rather than a start - up .
most large companies , be they pharmaceutical , consulting , or banking , have the time , programs , and mission to train you and help you build the skills to be successful .
nowadays , many large companies have training programs that facilitate a scientist s transition to the business world .
for example , roche has a very successful 2-year associate program in partnering in basel specifically for phd graduates .
. this may not be the official stated purpose , but often phd candidates can apply .
ask around your school s alumni network to explore avenues that are open to you .
overall , partnering is a great way for scientists to switch from academia to a more business - oriented function .
you can leverage your academic training and keep yourself immersed in exciting science while reviewing and analyzing many innovations .
as you identify great inventions and find great new molecules , you will be part of improving patients lives .
 partnering is an ideal field if someone is seeking to move from a scientific to a more business - oriented discipline . 
 partnering s goal is to identify and acquire external innovation . 
 these discoveries are then included in a company s pipeline and help bring novel treatments to patients . 
 advanced scientific training is essential in the identification and evaluation of these external assets . here 
 i describe how partnering works in a pharmaceutical company and offer advice on how to make a successful transition from a phd program to a business career . 
THE PREMISE OF PARTNERING
THE PROCESS OF PARTNERING
MY PATH TO PARTNERING
YOUR PATH TO PARTNERING