Achieving Leadership Positions In The Booming (Bumpy?) BioTech Sector . EPPIC Meeting: March 22, 2000. Dinesh V. Patel, Ph.D. Vice President, Drug Discovery Versicor Inc. 34790 ArdenTech Court Fremont, CA 94555 Ph: 510-739-3008 Fax: 510-739-3050 E-mail: [email protected]
The Current BioTech Boom:
How Long can this Last?
• Year 2000: $ 13 Billion & Running
• Today’s valuations do not reflect
any change in current fundamentals
of the sector. It’s a Bubble.
• Markets are catching up to the
true value of this cash-starved sector. It’s a long awaited, well deserved Correction.
• The only sin in Biotech is running out of Money. S. Panem
• The robust strength of current market provides a unique opportunity to create massive fundamental value that is sustainable.
• Valuation is less important than Value.
• Value is created by Products, not Perception.
• Gene Therapy
• Small Molecules
• ICE’s, etc.
• Combinatorial Chemistry
• High Throughput Screening
• BioInformatics, etc.
• Biologists & MDs
• Engineers, etc.
Fortunately, it’s not a rigid Paradigm.
to a Start-Up Company
• 1985-1993: Bristol-Myers Squibb, Group Leader
• 1993: Following the Mentor. Affymax, Asst. Director
• Affy:Brilliant but naive Scientists-Typical ‘93 BioTech
• Strategic Inflection Point: Transitioning Combinatorial Chemistry from ‘Peptides’ to ‘Small Molecules’
• 1994-95: Pioneering the Drug Discovery Revolution.
• March 1995: Fame follows Fortune. GW Merger
• Inflection Point: Technology becomes a commodity.
• 1996: What’s next for me? Big Pharma vs. Start-Up
There is nothing wrong with change, if it is in the right Direction.
Research & Management Leadership
1 Technical: Know-how. Awareness & Respect for other disciplines, e.g. Chemistry vs. Biology
If the power to do hard work is not talent, it is the best possible substitute for it - James A. Garfield
3 Result Orientation: Bring things to a closure (quickly)
4 Paper-WorK: Publications & Patents are useful. Reports are a waste of time.
5 Sponsorship: both from Superiors & Subordinates.
Talent does you no good unless it’s recognized by someone else - R Half
6 Salesmanship, not just presentation skills.
No matter what a man’s vocation may be, the nature of his progress through life is largely dependent on his ability to sell - F Nichol
7 Professional Relationships & Networking:
It’s not what you know, but who you know, that matters most.
• April 1996: Abbott vs. Versicor (Senior Director)
• Easy Money: Versicor, a spin-off of Sepracor
• Combi-Chem: From Technology to Application.
• The ‘Anti-bacterial’ Drug Discovery Focus
• Unmet Need: Emerging resistance to current drugs
• Success: 50% of Phase I products become drugs.
• Cost-efficient: Well defined clinical end points
• December 1996: Where are the Deals?
• The Year of 1997: Proof of Concept vs. Preclinical Candidates. The Du-Pont Merck Experience.
• December 1997: Meet the VC’s; $ 22M financing.
• Questions: Expertise, resources, focus, management.
• June 1998: Executive Director
• August 1998: Parting of Mentor; VP, Drug-Discovery
• The New regime & The New Company Mission
• Less Projects, more focus
• Need vs.Expertise. Customer 1st; your Talent 2nd
• Less Spending; Minimal Expansion
There is danger in reckless change, but greater danger
in blind conservatism.Henry George
Versicor: A Fully-Integrated Infectious Disease Drug Development & Discovery Company
3) 2nd Genern OD
4) Def Inhibitors
Nat Prod Leads
6) Ligase HTS (Novartis)
7) Small mol leads
The 5 year, 10X Growth Formula - George Rathmann
$ 100 M Venture stage BioTech
$ 1 Billion Mid-Cap BioTech
$ 10 Billion Large-Cap BioTech
$ 100 Billion Big-Pharma Blue Chip
Leadership at a Start-Up: Your Priorities are indistinguishable from the Company’s Priorities.
1 Employees: Hire the best people.
2 Teams vs. Individuals:
• Matrix Orgnzn
• Team-work vs. individual recognition
3 Paranoia: Andy Groove Philospohy; avoid comfort zones
4 Reinvention: More powerful than Invention
5 Product: Applied vs. Basic Research
6 Differentiate: Niche Markets, niche Products
7 Customer: is King. Find them & keep them
1 Technical Competence
2 Communicate Clearly
3 Delegate Effectively
4 Reward Results
5 Stay Approachable
6 Take Care of Your People
7 Find a Successor
• It’s a Blessing, not a Curse.
• Your Self-Confidence & Performance should overshadow any Racial Disadvantages.
• Don’t forget your Roots.
• Always Communicate in English at Work.
• Avoid being too Emotional at Work.
• Don’t Pretend what you’re not.
• Keep the Big Picture in Mind. Don’t get too hung up on a Promotion or Salary Raise.
• Take Management Courses. Experiment with New Hobbies. Read books on Diverse Subjects.
• How to become a CEO - Jeffrey J. Fox
• Power of Positive Thinking - Norman Vincent Peale
• 7 Spiritual Laws of Success - Deepak Chopra
• 7 habits of highly effective people - Stephen Covey
• Buffet, making of an American Capitalist - Roger Lowenstein
• Direct from Dell - Michael Dell
• A Bend in the River - V Naipul
• Iacocca, An Autobiography - Lee Iacocca
• Forbes Book for Business Quotations - Ted Goodman
• Scientific Journals: J Med Chem, J Org Chem, Tet Lett, BMCL, etc.
How to become a CEO (Leader) : J. Fox
• Get & Keep Customers
• Arrive 45 minutes early and leave 15 minutes late.
• Never Panic….or Lose your Temper.
• Don’t have a drink with the Gang; avoid Office Parties.
• Don’t get Buddy-Buddy with your Superiors.
• Stay out of Office Politics.
• Never surprise your Boss. Make your Boss look Good.
• Overinvest in People. Overpay your People.
• Learn to Speak and Write in Plain English.
• Put the importance on the bright idea, not the source of idea.
• Concept doesn’t have to be Perfect; but it’s Execution does.
• Be a Credit Maker, not a Credit Taker.
• Don’t hide an Elephant.
• Be a Flag-Waving Company Patriot.
• Add one big new thing to your life each year.
• Keep Physically Fit. Do something hard and lonely.
• Treat your Family as your #1 Client.
1 Wealth: A mere score-card
5 Family & Friends