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CoLaborator @ Bayer
R&D Scouting and the Berlin CoLaborator: how this fits
into the Open Innovation Strategy of Bayer AG.

Dr. Jörg Knäblein, Technology Scouting

Global External Innovation & Alliances, Drug Discovery

25 Apr 2017, Alabama Delegation @CoLaborator

Page 1 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 „The focus of our R&D is on delivering innovative drug
candidates to meet the needs of the patients. In that
context, complementing our own capabilities with
innovative partners from academia and biotech
companies plays an important role ...“

Professor Andreas Busch, member of the Executive

Committee of Bayer AG's Pharmaceuticals Division
and Head of Drug Discovery

Source: quote on flyer for BIO-Europe 2014

Page 2 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

Agenda

• Bayer’s Business Areas & Products

• Bayer’s Pharmaceuticals Division
• Bayer – Why partnerships are needed to complement our
strong internal research
• Partnering models along the value chain
• The CoLaborator in San Francisco and Berlin
• Conclusions

Page 3 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 Bayer’s Business Areas

Pharmaceuticals Consumer Health Crop Science

Prescription drugs Over-the-counter medicines, Innovative crop protection
dietary supplements, and seeds
dermatology products,
foot care and sunscreen

Page 4 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 Products
Bayer: Science For A Better Life

Page 5 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 A success story of innovative products

1900 1970 1980 1990 2000 2010

Page 6 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 Pharmaceuticals Division
Innovative and established prescription products

Product [ sales in € million ] 2015

Xarelto™ 2,252
Eylea™ 1,228
Kogenate™ 1,155
Mirena™ product family 968
Nexavar™ 892
Betaferon™ / Betaseron™ 824
YAZ™ / Yasmin™ / Yasminelle™ 706
Adalat™ 633
Aspirin™ Cardio 524
Glucobay™ 523
Ultravist™ 318
Gadovist™ / Gadavist™ 290

Page 7 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 Pharmaceuticals Division
Drug discovery sites around the globe

Berlin Oslo
• Oncology • Oncology: Thorium Tokyo
Conjugates Platform
• Gynecology • Clinical Sciences
• Clinical Sciences
• Cross-Indication
Platform
• Clinical Sciences

Berkeley Turku
Wuppertal
San Beijing Osaka
• Polymer-based Drug
Francisco Whippany Cologne Delivery Systems • Clinical Sciences • Clinical Sciences
• Cardiovascular
• R&D of Biologics • Clinical Sciences Diseases
• R&D of Biologics
• Cross-Indication
Platform
• Clinical Sciences

7,934 employees in R&D in 2016

€ 2.78 billion investment in R&D in 2016
16.7%* investment in R&D of total net sales in 2016

Page 8 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator * Fx adjusted
 Pharmaceuticals Division
Drug discovery activities focus on therapeutic areas
with high medical need

Cardiovascular Oncology Gynecology

 Heart Diseases  Oncogenic Signaling  Uterine Fibroids

 Vascular Diseases  Antibody- Drug  Endometriosis
 Lung Diseases Conjugates  Polycystic Ovary
 Kidney Diseases  Thorium Conjugates Syndrome
 Hemostatic Disorders  Immuno-Oncology
 Acute Organ Disorders

Cardiovascular Diseases and Oncology with

Leading R&D position
a great potential for breakthrough impact
in Gynecological Therapies
on the lives of patients

Page 9 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 Pharmaceuticals Division
Additional focused research activities together with
external partners

Ophthalmology

• R&D of new delivery technologies for eye diseases

• Investigate the potential of Bayer’s compounds together with the
Johns Hopkins Wilmer Eye Institute
• Evaluate the CRISPR/Cas9 gene editing technology as new
therapeutic approach together with Casebia, a Bayer/CRISPR
Therapeutics JV

Hemophilia
• Investigate and develop new therapeutic approaches for
hemophilia
• Evaluate the potential of gene therapy for hemophilia patients
together with Dimension Therapeutics
• Evaluate the CRISPR/Cas9 gene editing technology as new
therapeutic approach together with Casebia, a Bayer/CRISPR
Therapeutics JV

Page 10 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 It takes a long way to discover a new drug
Target
Target Lead Lead
Lead Marketing
Preclinical Phase
Phase II Phase
Phase IIII Phase
Phase III
III Launch
Discovery
Discovery Discovery Optimization
Optimization & Launch

Target Protein Hit Molecule Lead Molecule Development

Candidate

Identify a lock Find a first tool Turn the tool Make it a smoothly
whose function is which somehow into a key working, safe and
related to the fits the lock shiny key
disease
Lead Discovery

Target Discovery Hit Finding Hit to Lead Lead Optimization

e.g.
High Throughput
Screening

Page 11 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 Discovery of Rivaroxaban:
The first oral FXa Inhibitor
HTS HTS hit identified 1998 First approval of Rivaroxaban 2008
Factor Xa F O O

O O
S N N O N N

HN O HN Cl
S S
O O

HTS hit Rivaroxaban

 IC50 = 20.000 nM  IC50 = 0.7 nM

Rivaroxaban is approved for broadest range of applications*:

 Prevention of venous thromboembolism (VTE)
 Treatment and prevention of deep vein thrombosis (DVT)
 Prevention of atherothrombotic events** after acute coronary syndrome (ACS)
 Prevention of stroke and systemic embolism in patients with non-valvular
atrial fibrillation (NVAF)
 Treatment and prevention of pulmonary embolism (PE)
* actual approval of specific indication depending on country
**cardiovascular death, myocardial infarction or stroke after an Acute Coronary Syndrome

Page 12 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 Probability of success from research to
market approval: <1%
Evaluation/ Phase IV
Drug research Preclinical Clinical trials
Approval studies

Lab and animal Phase I: 20-100 healthy volunteers Data review (more than
experiments by regulatory 2 years)
Phase II: 100-500 patients 
authorities
safety, dosing
(up to 2 years)
Phase III: 1,000-10,000 patients 
efficacy, adverse events

1 drug
10,000 <250 approved
Test compounds Test compounds
<5 Test compounds
by health
authorities

€ >1 billion
0 2 4 6 8 10 12 Years

Source: based on PhRMA Profile Pharmaceutical Industry 2010

Page 13 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator
 Partners in the pharma ecosystem –
interaction is key for success
Disease Target ID/ Lead ID Clinical testing Reg
Value chain Preclin I II II Pricing launch
Hypothesis Validation and opt Approval

Basic research, early development

Academia

1)
Start-Up, SMEs (“biotech”) 4)
Players Late research, through early development and clinical development
2) 3)

Pharmaceutical Industry 4)
All phases, particularly strong in late phase, registration and market access

Interactions/ Transactions
1) Collaboration, startup of company, licensing
2) Licensing / partnering to take financial risk of late phase
3) Asset transfer of successful project from Pharma following strategic portfolio decisions
4) Asset transfers due to strategic reasons, mergers, insolvencies etc.

Page 14 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 Partnering is a key element of
Bayer’s R&D strategy

Pre-clinical Clinical
Research development development
Target Lead Lead
discovery discovery optimization Phase I Phase II Phase III

Biomarker Research

Page 15 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 Pharmaceuticals Division
Innovation Centers help to manage Bayer’s global
network of partnerships across indications

San Francisco Berlin

• West Coast Innovation • CoLaborator Beijing
Center • Innovation Center
• CoLaborator China

Boston
• East Coast
Innovation Center Osaka
• Innovation Center
Japan
Singapore
• Innovation Center
Singapore Region

Page 16 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 Pharmaceuticals Division
Our open innovation initiatives complement our
innovation strategy

Grants4Targets Bayer allocates grants for the exploration of attractive, novel drug targets and
biomarkers.

Bayer funds projects for novel software, hardware or technologies contributing to

Grants4Apps improve health outcomes or pharmaceutical processes. In addition, the
“Grants4Apps Accelerator” in Berlin supports 5 digital health startups each year.

Bayer promotes the exploration of new indications and offers grants and further
Grants4Indications
financial support for promising proposals.

Bayer offers financial support to evaluate antibodies or derivates and to promote

PartnerYourAntibodies
its exploration for a potential new drug development.

Bayer offers attractive laboratory and office spaces for young life-sciences
CoLaborator
companies at its premises in Berlin and San Francisco.

Page 17 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 Pharmaceuticals Division
Partnering along the whole value chain is a key
element of our innovation strategy
Academic Institutions
From traditional licensing
agreements or strategic German
Cancer Research
Joint labs
research alliances to Co-location Center (DKFZ)

public-private
partnerships or open License and research Amgen, Compugen,
agreements
innovation models – Close
OncoMed, Broad
Institute, Lead Discovery
Bayer welcomes many interaction
Consortia
on individual Center, Innovative
different forms of or multiple Asset acquisition / Medicines Initiative,
cooperation along the projects divestment
Inception 4,
value chain. Contract research
Syndax,
Grants Grants4-Initiativen

Arm‘s length Accelerator

Incubator CoLaborator

Pharma / Biotech Companies

Page 18 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 Partnering Models – Strategic Alliances
Strategic Alliances
• Long-term-oriented risk-and-reward-sharing agreements; complementary
expertise, but common overall goals
• Significant contributions from both partners in terms of content, resources
and financials
• Allows to pursue highly complex and innovative projects that the single
partners could not have handled on their own

Bayer Examples
• DKFZ (German Cancer Research Center): Cancer therapy
• OncoMed: Cancer stem cell therapeutics
• Broad Institute: Cancer therapy, cardiology
• Singapore: Bayer-Singapore Integrated Translational
Oncology Network
• Peking University: Various research technologies and models

Page 19 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 Partnering Models – Consortia
Pre-competitive Consortia
• Paradigm shift over the last decade with respect to what is regarded as the
competitive field of pharmaceutical research
• Formed by parties sharing a common interest in developing general tools
and standards in drug discovery and development

Example: Innovative Medicines Initiative (IMI)

• A joint initiative of EU and EFPIA
(European Federation of Pharmaceutical
Industries and Associations)
• Largest public-private partnership in
healthcare R&D, EUR >5 billion budget
• Addressing major pharma industry and
healthcare-related societal needs

Page 20 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 Partnering Models – Open Innovation
Crowd Sourcing
• Using the expertise of a larger scientific community, often using the internet
as a platform, instead of a single partner to address an issue
• Success factors include precise definition of the problems, expectations, offerings and IP
policy, and low bureaucratic hurdles and short response times

Example: Grants4Initiatives
• Grants4Targets: Bayer grants for targets. Offers
expertise, tools and technologies to help develop new ideas.
(http://www.grants4targets.bayer.com); started in May 2009; 16 rounds with > 1900 applications; more
than half were novel to Bayer

• Grants4Indications: Bayer promotes the exploration of new indications

with the aim to discover novel potential therapeutic areas for Bayer compounds
(http://www.grants4indications.bayer.com)

• Grants4Apps: Bayer grants for innovative IT projects which

may lead to new business models.
(http://www.grants4apps.bayer.com)

Page 21 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 Partnering Models – Incubators
Innovation Incubators
• Promotion of interaction between innovative start-up companies and
industry by providing assistance with access to funding, lab space and drug
discovery technologies

Example: CoLaborator™
• An attractive incubator space for innovative start-up companies in life
sciences, with ideas related to the Bayer R&D strategy
• Provision of ready-to-use lab and office
space according to the needs of start-ups
• Companies remain independent, but have
options for interactions/collaborations with
Bayer and access to infrastructure
• Co-located with Bayer sites,
currently in the US (San Francisco, CA, USA)
and Europe (Berlin, Germany)
More information @ www.colaborator.bayer.com
Page 22 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator
 Components of the CoLaborator™
Components
Support young entrepreneurs in the Life Science area to build
up their own research laboratories.

Companies with a fit of interest with Bayer can rent ready-to-use

laboratories with the potential to combine startup
entrepreneurship with pharma expertise.

Companies remain independent but have an option to use the

Bayer infrastructure and scientific network.

Page 23 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 CoLaborator in San Francisco
The first CoLaborator was inaugurated in
September 2012 in San Francisco/
Mission Bay in the same building as our
research laboratories.

Page 24 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 CoLaborator in Berlin

• On the Bayer Campus in Berlin

• Close vicinity to well renowned
institutions
• Berlin offers attractive
ecosystem for startups

Page 25 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 CoLaborator in Berlin
Technical environment:
• 800 qm building with 9 fully equipped
units consisting of a laboratory (40 qm)
plus office (20 qm)
• Shared facilities (Cafeteria, meeting
room, cooling room, etc.)
• Bayer offers a range of services on
demand

Scientific environment:
• Exchange amongst CoLaborator
tenants plus with Bayer scientists and
experts
• Protection of intellectual property
warranted by agreements if necessary.

Page 26 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 Berlin CoLaborator (as of 2 nd March 2017)

CoLaborator Companies
Company Profiles
Calico GmbH (04/2014; biomarker and biotherapeutics): offers innovative methods to develop
recombinant monoclonal antibodies to engineer both biotherapeutics as well as biomarker
products.

DexLeChem GmbH (04/2014; chemical synthesis): founded out of the Cluster of Excellence
UniCat (Unifying Concepts in Catalysis), is developing catalytic hydrogenolysis in water.

Eternygen GmbH (09/2014; dietary-related metabolic diseases): is focusing on research and

development targeting the transporter protein SLC13A5.

NMI TT Pharmaservices (01/2015; multiplexed protein expression and analysis of cellular signal
transduction pathways): is a CRO dedicated to provide integrated experts services to the
pharmaceutical industry, as well as to biotechnical and medical technology companies.

Provitro AG (04/2014; biomarker and molecular-pathology): is an innovative molecular-

pathological service provider for preclinical and clinical research in pharmacology and
biotechnology.

Liquid Genomics (11/2015; blood-based molecular testing): focus on molecular diagnostics that
can be performed in the blood more practically, accurately, and economically than in tissue.

INVICOL GmbH (2/2016; biomarkers from peripheral blood and other body fluids): testing for
circulating tumor cells, circulating endothelial cells and markers of infectious diseases. Another
aspect is the detection of free nucleic acids or subcellular compartments, e.g. exosomes.

Page 27 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 Berlin CoLaborator is also a home for
Grants4Apps startup companies
CoLaborator Companies
Company Profiles • Vitameter (James MacLean and colleagues from Harvard Medical School) developed
a handheld device for home use that can analyze users’ vitamin levels from a single
drop of blood, helping the user to optimize their health. First use case: Vitamin D,
Ferritin. Since they work with human blood, a Biosafety Level 2 workspace and hood is
required; CoLaborator laboratories were initially set up according to S2 requirements.
Documentation for regulatory authority (LaGetSi) has been prepared accordingly.

• Sendinaden (David Hartmann and colleagues from Shanghai) come from the
„Grants4Apps Accelerator“ innovation sourcing initiative. They work on device
development for 3D printing (e.g. the ultimaker) and individualized masks for
measuring breathing patterns and metabolites.

Page 28 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 Conclusions

 Partnering is a key element of Bayer’s R&D strategy and culture.

 Bayer develops and maintains innovative partnership models adapting to

partner’s needs.

 Professional and effective alliance management constantly developed to

maximize value in partnerships.

 The CoLaborator model is an important member of the Bayer Open

Innovation Family.

 Partnering is an element to support our vision:

Science for a Better Life

Page 29 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 It‘s all about people

Page 30 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 Thank you!

Page 31 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator

 Forward-Looking Statements
This website/release/presentation may contain forward-looking statements based
on current assumptions and forecasts made by Bayer management.
Various known and unknown risks, uncertainties and other factors could lead to
material differences between the actual future results, financial situation,
development or performance of the company and the estimates given here. These
factors include those discussed in Bayer’s public reports which are available on the
Bayer website at http://www.bayer.com/.
The company assumes no liability whatsoever to update these forward-looking
statements or to conform them to future events or developments.

Page 32 Dr. Joerg Knaeblein, 25 Apr 2017, Alabama Delegation @CoLaborator