November 4 - 5, 2014 
Blue Chess Large9th Annual
Aligning Portfolio and Productivity with Corporate Strategy to Drive Innovation 

Tuesday, November 4



Shared Session between Strategic Resource Management & Portfolio Management 

12:15 pm Welcome Portfolio Management Conference Registrants & Joint Session Luncheon Announcements

Micah LiebermanMicah Lieberman, Executive Director, Conferences, BioPharmaceutical Strategy Series, Cambridge Healthtech Institute (CHI)

12:30 Luncheon Presentation: Discover the Strategy Hidden in Your Portfolio and Decide if it is the Strategy You Want

Richard SonnenblickRichard Sonnenblick, Ph.D., CEO, Enrich Consulting








Bush_BeauBeau Bush, President, OZMOSI


This presentation will focus on three key points: How to identify the strategic dimensions of your portfolio; How to assess depth and strength in each strategic dimension; and How to build a portfolio assessment the entire company will believe, support, and act upon.

1:25 Chairperson’s Opening Remarks for Shared Keynote Session

Sultan AzizSultan Aziz, Senior Director, Capacity Management, Janssen Pharmaceuticals

1:30 Going Big! Establishing End-to-End Integrated Project & Resource Planning across Pfizer

Joseph BillittiJoseph Billitti, Ph.D., MBA, Executive Director, Strategy and Operations, Global Research & Development, Pfizer

In 2011, Pfizer committed to transforming its R&D engine and to a multi-year effort that would modernize and integrate our R&D project planning and resource management capabilities across the enterprise. In its third year, the program has now established foundational and industry leading capabilities across the entirety of R&D, including integrated end-to-end planning, resource forecasting and tracking, and holistic portfolio reporting. This session will discuss Pfizer’s implementation approach across many large and diverse functions, including the approaches to our discovery and generics portfolios. Examples will be covered of how the capabilities are being utilized across the business, and highlight the overall benefits being realized from having an integrated platform.

2:00 Implementation of R&D Operations within Merck Serono

Hartmut HeinHartmut Hein, Ph.D., Director, Global Planning Office, Merck KGaA

How to best align the book of work which needs to be delivered considering the constraints of internal resources and overall R&D budget is still a key topic within Pharma R&D. At EMD Serono we are currently running a change project to establish an integrated R&D operations environment to align project, resource, finance and portfolio management. First delivery will be achieved by end of August. Experience with first achievements and challenges focusing on resource demand to deliver the book of work will be presented.

2:30 NASA’s Human Health and Performance Business Model to Accelerate Innovation

Jeffrey DavisJeffrey Davis, M.D., Director, Human Health and Performance (HH&P), CMO, NASA Johnson Space Center

Dr. Davis will describe the new business model for the NASA Human Health and Performance (HH&P) Directorate. The 2007 and 2012 strategic plan charted a course accelerating innovation through strategic partnerships and the NASA Human Health and Performance Center (NHHPC) was established in 2010 (now with 6 active projects and over 140 members). NASA’s HH&P ran pilot programs in open innovation in 2009-2012 with outstanding results and now conducts prizes for NASA and other federal agencies through the Center of Excellence for Collaborative Innovation (CoECI). Through a rigorous risk management process, the HH&P research and development portfolio is completely expressed through deliverables – partnerships and open innovation tools are deployed where inadequate knowledge, technology or resources may be hindering progress in risk mitigation.

3:00 PANEL: Driving Innovation in R&D Organizations

Daniel ZweidlerModerator: Daniel Zweidler, Ph.D., Senior Fellow, Mack Institute for Innovation Management, The Wharton School, UPenn; President, DZA, Inc.

Joseph BillittiPanelists: Joseph Billitti, Ph.D., MBA, Executive Director, Strategy and Operations, Global Research & Development, Pfizer

John LaMattinaJohn LaMattina, Senior Partner, PureTech Ventures; former President of R&D, Pfizer

Jeffrey DavisJeffrey Davis, M.D., Director, Human Health and Performance (HH&P), CMO, NASA Johnson Space Center

Jonathan FreemanJonathan Freeman, Ph.D., Senior Vice President, Head of Portfolio Management, Merck Serono

Over the last decade we have witnessed an exponential increase in marginal costs of innovation in the biopharma sector, as well as a foreseen paradigm shift from blockbusters to precision medicine. These two powerful forces call for a new sustainable business model for the healthcare ecosystem in general and R&D in particular.

  • What is the role of collaborative innovation in today’s R&D environment?
  • When is it the right time to invest in a disruptive technology and how?
  • How do payers (private or public) influence R&D choices?
  • What will today’s “Big Pharma” look like in 20 years?

3:45 Refreshment Break in the Exhibit Hall

4:15 Interactive Breakout Discussions

Concurrent breakout discussion groups are interactive, guided discussions hosted by a facilitator or set of co-facilitators to discuss some of the key issues presented earlier in the day’s sessions. Delegates will join a table of interest and become an active part of the discussion at hand. To get the most out of this interactive session and format please come prepared to share examples from your work, vet some ideas with your peers, be a part of group interrogation and problem solving, and, most importantly, participate in active idea sharing.

Monday Afternoon, November 3 & Tuesday Afternoon, November 4 

TABLE: The Use of Open Innovation in a Research and Development OrganizationModerator: Jeffrey Davis, M.D., Director, Human Health and Performance (HH&P), CMO, NASA Johnson Space Center &
Elizabeth Richard, Senior Strategist, Wyle Science, Technology and Integration
• Identifying appropriate challenges to conduct open innovation competitions
• Addressing cultural barriers to acceptance
• Strategies for co-development (virtual centers) – the NASA Human Health and Performance Center (NHHPc)
• Organizational strategies for success

TABLE: Drug Discovery and The Unknown UnknownsModerator: Daniel Zweidler, Ph.D., Senior Fellow, Mack Institute for Innovation Management, The Wharton School, UPenn; President, DZA, Inc.• Implication for portfolio management … what is a “portfolio” to start with?
• Implications for decision making and funding levels required for "success"
• What are the critical success factors for a thriving business environment?

TABLE: Decision Quality: Initial Investment Approval Vs. The Reality of ExecutionModerators: Elayne Ko, Director, Portfolio and Decision Analysis, Pfizer &
Tom Stone, Lecturer in Business, Penn State University, Abington College
• What importance do organizations place in the investment decisions vs. subsequent project-related decisions?
• Is decision quality valued through all stages of the project; if not, then does inconsistency create downstream issues in the future?
• How does management track the progress of the investment decisions? 

TABLE: Strategic Resource Management in the New Era of Rising New Product ProductivityModerator: John Ansell, Senior Partner, TranScrip Partners• How might we re-think deployment of resources internally in light of the rising numbers of projects across the industry at every development phase ?
• How should this affect activities externally ?
• Changing mindsets after decades of downturn.

TABLE: A Closer Look at Big Data and Analytics: Where are the opportunities vs the hype?Moderator: Krish Ghosh, Ph.D., MBA, Vice President, Informatics, Covance• Define the breadth and depth (along with the characteristics and elements) of Big Data from the Healthcare sector that directly applies across the entire Pharmaceutical R&D continuum.
• Can Big Data analytics enable faster and superior decision making in R&D from new insights, leading to improved R&D productivity? Where are the opportunities and where is the hype?
• What should be the role of the Pharmaceutical R&D Leaders in making Big Data Analytics a reality, and helping towards development of faster, cheaper and high quality drugs?

If you have a Breakout Discussion topic suggestion, please submit your idea using the online form: http://www.executivedecisionmaking.com/sra-pfo_content.aspx?ekfrm=135879&libID=135828 

5:15 Close of Strategic Resource Management Executive Forum (Portfolio Management continues on through Wednesday, November 5)



Wednesday, November 5


7:45 Breakfast Presentation (Sponsorship Opportunity Available) or Morning Coffee

8:25 Chairperson’s Remarks

Carlos NunesCarlos Nunes, Director, Portfolio & Decision Analysis, Pfizer

8:30 Analyzing Investments in Biomedical Research at NIH

George SantangeloGeorge Santangelo, Ph.D., Director, Office of Portfolio Analysis (OPA), Division of Program Coordination, Planning, and Strategic Initiatives (DPCPSI), The National Institutes of Health (NIH)

One of the activities of DPCPSI is to identify and analyze emerging scientific opportunities, rising public health challenges, or scientific knowledge gaps that merit further research. Though most drug targets are members of a few well-known protein families—G-protein coupled receptors (GPCRs), nuclear receptors (NRs), ion channels, protein kinases, and proteases—roughly 6,000 members of these families are at best poorly annotated. Analytics can be used to prioritize efforts to address this major gap in knowledge.

9:00 How Likely Is a New Product to Become Profitable? The Encouraging Evidence from Products Launched this Century

John AnsellJohn Ansell, Senior Partner, Commercial, TranScrip Partners

One of the most difficult aspects of defining commercial potential for a future product is to assess whether it is likely to become profitable. This is more difficult for external than for internal projects because less data is at hand. The latest Tufts Institute data suggest that only 20% of new products launched will become profitable. The presentation explains new research showing that 40-50% of products actually become profitable.

9:30 Innovation: Ideation to Fruition in Healthcare

Keith Friend, Ph.D., Senior Director Medical Affairs, Otsuka (OAPI)

Innovation is a challenging process, particularly in a highly regulated industry like Pharma. In the age of social media and digital apps, Pharma has to cleverly navigate regulatory constraints to bring interesting projects to reach key stakeholders through hitherto unexplored channels. Best practices should include collaborative work by a cross-functional matrix team of Medical, Commercial and Compliance team members with clear definition of common goals and a flexible and responsive project management approach.

10:00 Coffee Break in the Exhibit Hall


10:40 Balancing Portfolio Prioritization: A Case Study in Optimizing Life Cycle Project Selection
Babler_ScottScott Babler, Strategic Realization Manager, Integrated Project Management Company, Inc.
Product lifecycle projects are an important aspect in preserving product portfolio value. Competition for resources from new product development often limits the focus on current products, which provide today’s revenues. This competition often results in the same resources being stretched between high-priority development efforts and current product quality and efficiency improvements. This case study addresses one large organization’s struggle and solution for creating a better process to balance project resources within the portfolio.

11:10 Evaluating R&D Projects under Two Different Business Models: Discrete and Continuous Revenue Realization

Elayne KoElayne Ko, Director, Portfolio and Decision Analysis, Pfizer

Tom StoneTom Stone, Lecturer in Business, Penn State University, Abington College

While pharmaceutical companies operate under the discrete revenue realization business model with the R&D projects, there are technology-based companies with a licensing-fee-based business model that would require a different approach. Understanding and evaluating the specific investment dollars and the eventual revenue generation for the continuous revenue / licensing-fee based business model is challenging, and the presentation discusses potential ways to address the issues.

11:40 The Effects of M&A and Licensing on Driving Portfolio Value

John PhillipsJohn Phillips, Director, Life Science Lead for Capital Efficiency Practice, Business Valuation, Deloitte Transactions and Business Analytics LLP
Hector Calzada, MBA, Managing Director, Corporate Finance, Deloitte Transactions & Business Analytics, LLP



12:10 pm Luncheon Presentation (Sponsorship Opportunity Available) or Lunch on Your Own 


1:25 Chairperson’s Remarks

Hartmut HeinHartmut Hein, Ph.D., Director, Global Planning Office, Merck KGaA



1:30 FEATURED PRESENTATION: Breaking Pharma Portfolio into Asset Classes: The Role of Differentiation in Risk/Reward Management

Jonathan FreemanJonathan Freeman, Ph.D., Senior Vice President & Head, Portfolio Management, Merck Serono

Merck Serono has implemented a new portfolio management model that assesses project opportunities in the context of both their individual and asset class risk. This is a very innovative and pragmatic way to look at portfolios and maximize value while decreasing risk.

2:15 Simulation & Optimization Capability in the Pharmaceutical Project Management Environment

Sultan AzizSultan Aziz, Senior Director, Capacity Management, Janssen Pharmaceuticals

Capacity and demand forecasting methodology and process is well established within the pharmaceutical industry. While the tools used to generate this data may differ, the overall objectives are somewhat clear. The bigger opportunity, however, lies in predictive modeling and simulation & optimization capabilities. Effective utilization of simulation and optimization capabilities should lead to increased throughput and value of the pipeline.

2:45 Portfolio Analytics to Support Strategy

Sydney EdwardsSydney Edwards, Ph.D., Head, Portfolio Management, Allergan, Inc.

One of the goals of most firms is to maximize the value of the portfolio of projects against one or more business objectives. This presentation will examine some of the analytic methods used in Allergan portfolio management. It will include NPV analysis, value for money analysis and explicit strategic objectives.

3:15 Portfolio Investment Scenario Planning: Computing Outcome Distributions to Compare/Contrast Investment Risk

Carlos NunesCarlos Nunes, Director, Portfolio & Decision Analysis, Pfizer

The composition of a drug development portfolio is most often initiated by selecting the projects with the highest risk-adjusted Net Present Value (NPV) and/or Internal Rate of Return (IRR). Although point estimates of a project’s risk adjusted NPV and IRR offer a good base reference for portfolio investment decisions, to make more informed investment decisions, the variability inherent in each of these metrics given the variability in the underlying project valuation components (development milestone dates, probability of technical and regulatory success by phase, development and commercial costs and projected revenues) presents a need to look deeper into the range of metrics outcomes that a selected portfolio might yield. This talk will step through the thought processes and techniques for looking at several portfolio investment alternatives and to consider how different investment decisions might be made given greater knowledge of the range of portfolio outcomes.

3:45 Communicating Uncertainty in Your Portfolio

Philip FahringerPhilip Fahringer, Analyst, Center for Innovation, Lockheed Martin

Short description: Portfolios are comprised of, by definition, a mix of assets. Each of these assets, whether it’s a stock portfolio or a pharmaceutical portfolio, or any portfolio, has a set of uncertainties common to those elements in the portfolio. Too often, when a portfolio is optimized, the uncertainties of the elements are not clearly represented; and therefore, the portfolio effects are not always well understood. This presentation will demonstrate how to represent the uncertainties as vectors that are clearly visible, how correlations between the elements can be shown graphically, and how different uncertainty assumptions for the elements impact the overall portfolio outcomes.

4:15 Chairperson’s Closing Remarks

4:25 Close of Portfolio Management Executive Forum (Project Portfolio Management Certification Master Class continues on through Thursday-Friday)