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Getz Keynote on Drug Development Alliances Kicks Off ASAP BioPharma Conference

Posted By Administration, Friday, June 20, 2014
Originally posted on 11/21/2013

After ASAP chairman of the board Russ Buchanan introduced new ASAP CEO Mike Leonetti and following opening remarks by Program Committee chair Jan Twombly, the 2013 ASAP BioPharma Conference jumped out of the starting gate with a keynote address by Kenneth A. Getz, founder and chairman of CISCRP and professor and director of sponsored research programs at Tufts University School of Medicine, entitled “Changing Dynamics in Drug Development Collaborations.”

Noting that “this is the 50th anniversary of modern drug development,” with the creation of the randomized controlled clinical trial, supported by the FDA, which led to the development of the period of “blockbuster R&D,” Getz argued that it’s now time to take stock of where we are in terms of drug development alliances. The movement from more transactional relationships to integrated, open innovation alliances, outsourcing of research, and a greater global footprint for drug development was accompanied by high hopes: for lower costs, faster cycle times, and greater efficiency. As Getz said, “We are at the dawn of new alliances and open innovation.”

But the reality has been something different. While the rate of drug and biologics approvals is at a peak, and pipeline activity has grown as well, “where we struggle,” according to Getz, is with legacy business models that largely have remained unchanged for half a century. The costs of supporting drug development rise by about 9 percent per year, and costs have risen 30 percent overall from five years ago. There are smaller market opportunities now as a drug enters the market, which leads to a “terribly high probability of failure in our industry,” Getz said. Only one out of five compounds tested gets to market, and of those that do make it, only one in six will recoup the costs of development.

So why has performance been so elusive? Getz put the blame on entrenched legacy processes, risk aversion, fragmented and poorly coordinated functions, insular culture and operating policies, poor communication and coordination, implementation of changes too rapid to integrate and absorb (such as after M&A activity), and rising scientific, operating, and regulatory complexity.

With a high risk profile, high costs, and long durations before drugs can recoup investment, the upshot is, according to Getz, that “the vast majority of our investment is in failed compounds.” He also acknowledged this as “the low point in my presentation!”

With the rise of alliances between pharma companies and CROs, Getz cited what he called “aspirational metrics”: many in the industry hoped for greater cost efficiencies and shorter cycle times that largely haven’t materialized. What is needed, he said, is to stop seeing alliance partners merely as commodity providers and servers, to break down cross-functional challenges to support the alliance better, and to move beyond “insular opportunities.” Under open innovation, all parties need to be aware of the challenges—and a public that surveys show is largely unaware of scientific research and distrustful of pharma companies needs to be engaged as well.

Getz acknowledged that this won’t be easy, but that it’s very necessary to bring all parties together to work on the problem and to think differently given the complexity of today’s biopharma alliances and the exigencies and risks inherent in the market. “This is a very difficult thing to do. It requires looking over the landscape collaboratively.”

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Ruben Garcia Santos, Scott Kruglewicz Earn CSAP Designation

Posted By Administration, Friday, June 20, 2014
Originally posted on 10/31/2013

In the past few weeks, a key figure in the emerging public-private partnerships (PPPs) arena and a veteran of the IT and technology consulting industry became the latest inductees into the “CSAP Club.” ASAP sends a hearty congratulations to Ruben Garcia Santos, corporate alliance and key account manager with the United Nations Children’s Fund (UNICEF), and Scott Kruglewicz, alliances specialist leader for the analytics initiative at Deloitte Consulting, for taking the steps to brand themselves as senior leaders in our community.

In addition, employees from AstraZeneca, Cisco, Dell, IBM, Lonza, Merck Serono, Mylan, National Grid, Savvis, and USAA recently obtained CA-AM certification. Please congratulate:
  • Jennifer Ames, Cisco
  • Krista Burke, Mylan
  • Geoffrey Collett, AstraZeneca
  • Sally Elshout, Lonza
  • Andrea Gossage, National Grid
  • Ike Irus, Dell
  • Arlene Johnson-Williams, USAA
  • Shane Madigan, Cisco
  • Laura Mealy, Cisco
  • Joe Midtlyng, Cisco
  • Andrea Pare, IBM
  • Maria Pere-Perez, Savvis
  • Maia Popova, Merck Serono
  • Kenneth Price, AstraZeneca
  • Steven Ritchie, AstraZeneca
  • Sara Weber, Cisco

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ASAP Appoints Michael Leonetti to CEO Position

Posted By Administration, Friday, June 20, 2014
Originally posted on 10/22/2013

The Association of Strategic Alliance Professionals (ASAP), the world’s leading professional association dedicated to the practice of alliance management, today announced that it has hired Michael Leonetti, CSAP, as the association’s new CEO. Leonetti brings many years of senior alliance management experience and a track record of raising the profile of ASAP and the profession itself, a blend that made him uniquely qualified for the position.

Leonetti takes over an organization that has seen a sharp upward spike in its membership, increased diversification of its offerings and rapid growth in attendance of its events over the past few years. He will be charged with continuing the association’s momentum and expanding ASAP into new industries and geographies. Leonetti previously served as ASAP’s chairman of the board from 2006 to 2009. During that time, he drove ASAP to reach similar goals: he helped grow its member base, expand its services and build awareness of the profession. Read more...

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New ASAP CEO Michael Leonetti Looks to Take Alliance Management to New Heights

Posted By Administration, Friday, June 20, 2014
Originally posted on 10/22/2013

ASAP's board of directors is proud to announce that it has appointed Michael Leonetti to be the association's new CEO. Leonetti is an alliance management pioneer and a pillar of the community. He founded and built Boehringer Ingelheim’s Alliance Management practice and served as ASAP’s chairman of the board from 2006 to 2009. He will be charged with continuing the association’s momentum by expanding ASAP into new industries and geographies, and increasing the profile of the profession as a whole. Read more about Leonetti's significant contributions to ASAP and the alliance management discipline in the press release that crossed the wire this morning.

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Systems Integrators Dish on How to Find a Working Revenue Model in Today’s Technology Solutions

Posted By Administration, Friday, June 20, 2014
Originally posted on 7/25/2013

Our Q3 2013 edition of Strategic Alliance Magazine has been sent to the printer and should be arriving in mailboxes around mid-August. As is customary in our Q3 issue, we have devoted a block of space to our annual IT Special Focus. This year, we took a topic that we have covered in some form in each of our previous IT sections—disruptive technologies such as cloud, mobile, social media, and big data—and decided to get what is a new perspective for us at Strategic Alliance Magazine on how these technologies are affecting alliance management.

We lined up executives from three major systems integrators to answer a variety of questions about how the alliance management function is evolving (past, present, and future) in the context of the new paradigm created by these disruptive forces for a virtual roundtable that appeared in the issue. As we do each issue, we try to provide ASAP members bonus material in the form of outtakes that didn’t make our print edition.

Below, David Erlenborn, CSAP, director of alliance portfolio management at KPMG, and Chuck McNamara, Microsoft alliance manager at Infosys, spoke about the challenges of finding a revenue model that satisfies the interests of traditional multinational IT vendors, emerging cloud players, and clients themselves.

ASAP Media: How do you find a common revenue model that satisfies all parties in a partner solution?

Erlenborn: Remember, we’re a business integrator more than a systems integrator. If we have a client looking for a single-owner solution, we would be willing to incorporate our partner’s technology into the overall solution. Generally, though, we don’t see ourselves as a reseller. We partner with technology providers because our clients are going to implement a solution that involves their technology, not because we want to make money as a reseller.

It’s very important to us that despite the alliances we have, we are an objective partner to our clients in helping them sort all of this out, and keeping the transaction separate helps reinforce that. When it comes to the revenue side, we’re not looking to make money selling other people’s stuff. We charge what we believe is fair value to our clients. We think we deliver more value than what they pay for, and that’s the way it should be. We partner with people that have the same concept and charge appropriately. It makes it much simpler than putting together a whole solution, then carving up a pie.

McNamara: Let’s say [we have] an end-to-end cloud solution where ultimately we would like to be charging the client a per-month fee. We work with the partner to procure licenses. Everything is hosted and structured by us. In that ideal model, we are involving the partners in the process of the build-out—the solution development and the like. That’s the easier [scenario]. The harder part—and the need for alliances—is, in many cases, in our large clients our partners have large revenue models built in as well, and they’ve already sold that product that is part of the Infosys cloud hosting model. Then the alliance person actually gets involved in that deal around that solution, and gets field engagement going on the ground with the two account teams to work out the understanding of what the partner already sold the client, and what we need to do to modify our deal to reflect that change. It’s harder, but the alliance influence in that deal becomes more important. If they didn’t involve the alliance team—one, they may lose the deal because they were unaware the client had purchased that [technology] in another part of the organization so the pricing was out of line, or two, they create a channel conflict.

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