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Importance of Patent Protection in the Life Sciences Industry Michael R. Samardzija, PhD Partner
Why is IP important to a company?
Drug Development Center for  Drug Evaluation & Research • PRODUCT SAFETY • PRODUCT EFFICACY • PRODUCT SAFETY • SURROGATE EFFICACY Investigational New Drug (IND) • MANUFACTURING  • VALIDATION New Drug Application (NDA) Marketing Approval Data Data Good Laboratory Practices Good Clinical Practices Quality System Regulations (QSR)
Medical Device Development Center for  Devices  Radiological Health • PRODUCT SAFETY • PRODUCT EFFICACY • PRODUCT SAFETY • PRODUCT EFFICACY Investigational New Device (IDE) • MANUFACTURING  • VALIDATION 510K Pre Market Approval (PMA) Clearance Approval Data Data Good Laboratory Practices Good Clinical Practices Quality System Regulations (QSR)
Drug Development Pathway Unmet Need Target Identification & Validation Product Concept Lead Optimization & Preclinical Testing Preclinical Design Concept Phase I Safety Prototype Phase II Efficacy Clinical Prototype Phase III Large Clinical Testing Field Input Registration Regulatory Clearance Final Product Product Launch Market Support Studies Marketed Product Time to Market: 10-12 YEARS  Investment Capital: US$800MM
R&D Expenditures Publicly Traded Companies
R&D Expenditures Comparison to other industries
Pharma Landscape Source: AXA Framlington * Value of products losing patent protection as a percentage of total company sales over next five years
The Valley of Death VC Investment IPO Window PRE 2000 PRE 2000 TODAY TODAY Research Preclinical Phase I Phase II Phase III NDA Approval Post Marketing TIME COST
Recent Significant M&A Transactions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Teva - CoGenesys $400M Albumin fusion platform for delivery of peptides/proteins, lead in PII for neutropenia Pfizer - Encysive $191M Thelin for PAH marketed in EU Fujifilm – Toyama $1.1B Phase II influenza treatment portfolio of 12 compounds
Why have IP? Competitors Enemies Public Customers Employees Vendors Know-How Ideas Inventions
Why have IP? Competitors Enemies Public Customers Employees Vendors Know-How Ideas Inventions
How to read claims Boss!  The claims, the claims!!!
Types of Claims Process   e.g., method of making a drug, methods of use Machine e.g., medical imaging instrument Composition of Matter   e.g., new drug Article of Manufacture   e.g., medical device, diagnostic kit, drug formulation
IP Strategies – Related Applications BioPharmaceuticals Making the molecule (process) Pharmaceutical Compound (formulation) Nucleotide, Protein, Antibody Method of Use Formulation, Efficacy Fragments, Derivatives, Analogues New Molecule Do not overlook the novel research technology that may be invented on the way to discovering a blockbuster drug Building a fortress around the basic invention/technology
IP Strategies – Related Applications Device Vacuum chamber in which  the diamond like coating (blade coating) is applied Single point cartridge loading system – avoiding upside down attachment Indicator strip signaling when the shaver is no longer experiencing "the optimal shave" Rubberized contour grip for better handling New forward pivot design positioning the blades in an optimal shaving position Use of 3 staggered blade getting progressively closer to the skin Mach 3 Core Technology Building a fortress around the basic invention/technology
Transitional Phrases ,[object Object],[object Object],[object Object]
Opinion of Counsel
Opinion of Counsel ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
TYPES OF IP OPINIONS Freedom to operate The scope, validity, and enforceability Confirming ownership Confirming transferability
Due Diligence
Due Diligence ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Due Diligence ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Patent Valuation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Valuation of Patents
Value of an issued patent vs. a patent application ,[object Object]
Patent Valuation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
IP Strategies – Related Applications BioPharmaceuticals Making the molecule (process) Pharmaceutical Compound (formulation) Nucleotide, Protein, Antibody Method of Use Formulation, Efficacy Fragments, Derivatives, Analogues New Molecule Do not overlook the novel research technology that may be invented on the way to discovering a blockbuster drug Building a fortress around the basic invention/technology
[object Object],[object Object],[object Object],[object Object],[object Object],Take Steps Toward Success
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],©2009 Bracewell & Giuliani LLP

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Importance Of Patents In The Life Sciences Industry

  • 1. Importance of Patent Protection in the Life Sciences Industry Michael R. Samardzija, PhD Partner
  • 2. Why is IP important to a company?
  • 3. Drug Development Center for Drug Evaluation & Research • PRODUCT SAFETY • PRODUCT EFFICACY • PRODUCT SAFETY • SURROGATE EFFICACY Investigational New Drug (IND) • MANUFACTURING • VALIDATION New Drug Application (NDA) Marketing Approval Data Data Good Laboratory Practices Good Clinical Practices Quality System Regulations (QSR)
  • 4. Medical Device Development Center for Devices Radiological Health • PRODUCT SAFETY • PRODUCT EFFICACY • PRODUCT SAFETY • PRODUCT EFFICACY Investigational New Device (IDE) • MANUFACTURING • VALIDATION 510K Pre Market Approval (PMA) Clearance Approval Data Data Good Laboratory Practices Good Clinical Practices Quality System Regulations (QSR)
  • 5. Drug Development Pathway Unmet Need Target Identification & Validation Product Concept Lead Optimization & Preclinical Testing Preclinical Design Concept Phase I Safety Prototype Phase II Efficacy Clinical Prototype Phase III Large Clinical Testing Field Input Registration Regulatory Clearance Final Product Product Launch Market Support Studies Marketed Product Time to Market: 10-12 YEARS Investment Capital: US$800MM
  • 6. R&D Expenditures Publicly Traded Companies
  • 7. R&D Expenditures Comparison to other industries
  • 8. Pharma Landscape Source: AXA Framlington * Value of products losing patent protection as a percentage of total company sales over next five years
  • 9. The Valley of Death VC Investment IPO Window PRE 2000 PRE 2000 TODAY TODAY Research Preclinical Phase I Phase II Phase III NDA Approval Post Marketing TIME COST
  • 10.
  • 11. Why have IP? Competitors Enemies Public Customers Employees Vendors Know-How Ideas Inventions
  • 12. Why have IP? Competitors Enemies Public Customers Employees Vendors Know-How Ideas Inventions
  • 13. How to read claims Boss! The claims, the claims!!!
  • 14. Types of Claims Process e.g., method of making a drug, methods of use Machine e.g., medical imaging instrument Composition of Matter e.g., new drug Article of Manufacture e.g., medical device, diagnostic kit, drug formulation
  • 15. IP Strategies – Related Applications BioPharmaceuticals Making the molecule (process) Pharmaceutical Compound (formulation) Nucleotide, Protein, Antibody Method of Use Formulation, Efficacy Fragments, Derivatives, Analogues New Molecule Do not overlook the novel research technology that may be invented on the way to discovering a blockbuster drug Building a fortress around the basic invention/technology
  • 16. IP Strategies – Related Applications Device Vacuum chamber in which the diamond like coating (blade coating) is applied Single point cartridge loading system – avoiding upside down attachment Indicator strip signaling when the shaver is no longer experiencing "the optimal shave" Rubberized contour grip for better handling New forward pivot design positioning the blades in an optimal shaving position Use of 3 staggered blade getting progressively closer to the skin Mach 3 Core Technology Building a fortress around the basic invention/technology
  • 17.
  • 19.
  • 20. TYPES OF IP OPINIONS Freedom to operate The scope, validity, and enforceability Confirming ownership Confirming transferability
  • 22.
  • 23.
  • 24.
  • 26.
  • 27.
  • 28. IP Strategies – Related Applications BioPharmaceuticals Making the molecule (process) Pharmaceutical Compound (formulation) Nucleotide, Protein, Antibody Method of Use Formulation, Efficacy Fragments, Derivatives, Analogues New Molecule Do not overlook the novel research technology that may be invented on the way to discovering a blockbuster drug Building a fortress around the basic invention/technology
  • 29.
  • 30.