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

Tuesday, November 4

 

BUSINESS AND OPERATIONAL MODELS

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

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

William KorinekWilliam Korinek, Ph.D., Vice President, Worldwide R&D Business Operations, 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.


William KorinekPanelists: William Korinek, Ph.D., Vice President, Worldwide R&D Business Operations, 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


Carmel EganCarmel Egan, Ph.D., Vice President, Project Management, Eli Lilly & Co.


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.

  • Understanding the impact of partnerships and co-development deals on resource and portfolio management
  • Supporting agile development and agile adaptation of data into planning: How to manage uncertainty, react to outcomes efficiently, and create an agile and efficient organization
  • Tying forecasting function successfully into the portfolio management
  • Aligning portfolio & productivity with corporate strategy to drive strategic resource allocation
  • Balancing internal R&D investments and resources with external collaborations
  • Right sizing: How can capacity management contribute to right sizing and outsourcing?
  • Creating a governance body and corporate structure to enable agile decision making
  • How can pharma translate lessons learned from other industries?
 


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

 

 

Wednesday, November 5


OPPORTUNITY EVALUATION

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 Integrating Portfolio and Business Management

Carmel EganCarmel Egan, Ph.D., Vice President, Project Management, Eli Lilly & Co.

Executing pharmaceutical research and development with a deliberate focus on business requirements is a priority in context of internal and external customer and environmental requirements. The presentation will explore and define general requirements, key capabilities, tools and processes to successfully integrate pharmaceutical, portfolio, and business management to deliver project and business results.

11:10 Eliminating Arbitrary Project Prioritization and Portfolio Selection for Life Cycle Management Projects 

Jiang_DiDi Jiang, Senior Project Management Consultant, Integrated Project Management Company, Inc.

Lifecycle (maintenance of business or sustainability) projects are an important aspect of preserving on-market product quality and manufacturing efficiency. And yet many organizations manage these as one-offs, not factoring them into their overall project portfolio management process. This results in competition for the same resources needed on high priority development efforts, strained schedules, and downstream quality issues. This presentation illustrates one company’s new project portfolio management processes for its maintenance of business project portfolio.

11:40 Evaluating R&D Projects under Two Different Business Models: Discrete and Continuous Revenue Realization

Elayne KoElayne Ko, Manager, Strategy Group, Siemens Health Services


Tom StoneTom Stone, Director, Strategy, Siemens Health Services


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.


12:10 pm PANEL: The Effects of M&A and Licensing on Driving Portfolio Value Creation 

John PhillipsModerator: John Phillips, Director, Life Science Lead for Capital Efficiency Practice, Business Valuation, Deloitte Transactions and Business Analytics LLP Deloitte and Industry Panelists to be Announced

More than $200 billion is at play in the current round of M&A activity in the pharmaceutical industry according to Dealogic – a frenzy that includes 14 deals announced so far this year. This compares with 10 deals last year, according to a Wall Street Journal report based on data from S&P Capital IQ, a unit of McGraw Hill Financial and more than three times the level of 2012. While there are a variety of different approaches and motives involved in the many deals, the common themes are centered on drugmakers’ desire to expand their product portfolios and drive R&D productivity.

  • How can tying your portfolio strategy to your business development strategy ensure access to new drugs, cost savings and synergies?
  • How can M&A and licensing reinvigorate R&D portfolio productivity?
  • How can Portfolio Management play a role in conducting trade-off analyses between organic and external assets?
  • How can drug companies ensure that organic portfolio growth is not sacrificed for external opportunities and vice versa?
  • How can pharmaceutical companies ensure that M&A and licensing activities contribute tangible and intangible benefits to the near term and long term value of their portfolios?
 

12:40 Luncheon Presentation (Sponsorship Opportunity Available) or Lunch on Your Own


PREDICTIVE MODELING, SIMULATION AND PORTFOLIO OPTIMIZATION

1:25 Chairperson’s Remarks

Speaker to be Announced


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 Sponsored Presentations (Opportunities Available)

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)