Alterna(ve

licensing models to s(mulate innova(on

Thomas Krohn, RPh, MBA

Director, Clinical Open Innova(on Eli Lilly and Company World Drug Reposi(oning Congress Washington, DC 5 December 2012

Please note that some of the views presented do not necessarily reect those of Eli Lilly and Company

3 Goals Today
Case for alterna(ve licensing/business model Lessons from other industries Example alterna(ve model

Drug Development Today

patent

Innova(on
Exploratory Collabora.ve

Process
Targeted Conrma.on Closed

Licensing Today

patent

PorNolio AOri(on
Business Development Deal

PorNolio Gaps

Patent clock (cking Asymmetric informa(on Inconsistent Representa(on Custom Deals Eort and (me Priori(za(on / Opp Cost

Backup Compounds: Licensing Concerns

Cannibaliza(on of lead compound Class-eect safety concerns Partner does bad science Loss of ownership and control Intellectual property issues

Red Herrings or Mi(gable Risks

Incremental Improvement

We need a bolder alterna(ve

Performance
to S1'

to S2 S1
Disruptive Change

Simpler Faster Cheaper

Time

Sustaining Innova?on Eciency Innova?on Empowering Innova/on

Clayton Chris(ansen NYT, 11/4/12

Learning from other industries

Access to op(ons - buy & sell Standard content representa(on Streamlined transac(ons Licensing to enable external innova(on

Access to op(ons - buy & sell

Music Industry

Physical Purchase

MP3 Download

Subscrip(on Any music, any(me, anywhere

Collec(bles

Standard content representa(on

Amazon Search

Clinical Collec(ons

Streamlined transac(ons

Enabling external innova(on

Open source so^ware
Licensing

Copyright
Permission required Exclusivity Absolute

Copyle^
Predened permission Crea(vity Flavors

Crea(ve Commons Licenses

Enabling external innova(on

Open source so^ware
Copyle^ Licensing Collabora(ve Development Full transparency
$1B

Linux Forks

Learning from other industries

Access to op(ons- buy & sell Standard Representa(on Streamlined transac(ons Enabling external innova(on
Removed Barriers to Market Innova(on

Licensing Today

patent

PorNolio AOri(on
Business Development Deal

PorNolio Gaps

Patent clock (cking Asymmetric informa(on Inconsistent Representa(on Custom Deals Eort and (me Priori(za(on / Opp Cost

What if?

patent

PorNolio AOri(on
Business Development Deal

PorNolio Gaps

Patent clock (cking Access/Clearing House Symmetric informa(on Standardized Representa(on Standardized Deals Innova(on Enabling Licensing

Example Model : Commons Drug Development Crea(ve Commons Model Patent License

Advantages

Op.onal Addendums

Standardized Streamlined 3 Layers: Legal Code Human Readable Machine Readable

CC Public Patent License

License Fees and Royal(es Field of Use Have Made Limita(ons Choice of Law Choice of Venue Territory Oer Limita(ons

hOp://wiki.crea(vecommons.org/Model_Patent_License

Commons Drug Development

1
selected crea(on of precompe((ve data spaces

standard rules of entry standard legal tools standard data formats must contribute data to access data voluntary commitment preferred strategic partners same rules and formats: interoperability crea(on of a data commons over (me decay of data into public domain founda(on funding and crowd talent encourage tool development by crowd

Pharma

Biotechs

Academics

Foundations

Individuals

Empowering Innova(on

More Informa(on
www.crea(vecommons.org www.lillycoi.com

 Thank You

Thomas Krohn, RPh, MBA Director, Clinical Open Innova(on Eli Lilly and Company