The Open Innovation Center Susie Stephens, Principal Research Scientist, Eli Lilly

Agenda Open Innovation Open Innovation Center Discussion

Open Innovation Principals Not all the smart people work for us. We need to work with smart people inside and outside our company. External R&D can create significant value; internal R&D is needed to claim some portion of that value. We don’t have to originate the research to profit from it. Building a better business model is better than getting to market first. If we make the best use of internal and external ideas, we will win. We should profit from others’ use of our IP, and we should buy others’ IP whenever it advances our own business model. Source: H. Chesbrough, Open Innovation

and in life sciences too… Alliance for Cellular Signaling BioBricks Foundation Bioinformatics.org BiOS CAMBIA Initiative International HapMap Project Lilly MDR-TB Partnership Medicines for Malaria Multiple Sclerosis Foundation OpenWetWare Prostate Cancer Foundation Science Commons SNP Consortium Synaptic Leap Tropical Diseases Initiative

Motivation for Pharma Pharma needs to get drugs to market more quickly and at less cost in order to survive Need to better understand biology to more accurately predict how drugs will perform Need to change the game by fully utilizing cutting edge technologies, but while minimizing risk Gain access to individuals with diverse valuable skills Minimize duplicative efforts

Structure of the Open Innovation Center A non-profit that is focused on enabling pre-competitive collaborations across the biopharmaceutical industry A consortia model of openness and governance To achieve value while reducing risk and minimizing cost To bring together leading technologists to enable rapid sharing of knowledge and skills For the benefit of organizations around the world in biopharmaceuticals, healthcare, payers, information technology, and academia

Activities of the Center Create an integrated data environment to answer scientific questions Provide data gathering, representation, and mining expertise Create an ecosystem around the publicly available data, formats, schemas, and methodology Members determine the data that is to be added to the repository Encourage pharma to share some of their internal data Allow pharma to focus on using data to make decisions Public / private workspaces for members for analysis Potentially discover synergies across companies Reduce extent of work that is duplicated by every pharma company

Scientific Goal of the Center Toxicology? Health Outcomes? Hosting data for Foundations?

Open Innovation Center Technology OIC AcademiaInstitute OIC Data Public Data Shared Data Ontologies /Links Mined Data Company Private Data Content Provider

Organizational Structure

Finance Founding Members Member Fees (e.g. pharma companies) Philanthropy (e.g. Fidelity Foundation) Grants (e.g. NSF, NIH) Donations (e.g. individuals)

Profile of Advisory Board 2 pharma companies 1 biotech 1 university 1 healthcare provider 1 publisher 1 related industry 1 industry association 1 IT organization

Ecosystem of Members Pharmaceutical companies Biotechs Health care organizations Payers Academia Technology companies Private and public content providers

Member Benefits Influence the data that is added to the repository Aligned with data standards, formats, and terminologies in the ecosystem Increase skill sets of employees through rotations Access to a pharma focused cloud compute environment Reduce in-house discovery IT work Utilize cutting edge technology Access leading skill sets

Getting Started Create the Open Innovation Center in Cambridge by August 2009 Initially integrate four publicly available data sources into a technology proof of concept Initiate the core ontology through collaboration now Raise awareness of the benefits of open innovation, solidify the business plan, and raise funds

Summary There are many benefits to open innovation The pharmaceutical industry can profit from pre- competitive collaborations Plans to create an Open Innovation Center that focuses on gathering, representing, and mining data The goal for opening the center is August 2009 Sign up now!

Next Steps: Making Open Innovation a Reality in Pharma Susie Stephens, Principal Research Scientist, Eli Lilly

Discussion Topics What advantages are there to open innovation within the pharma industry, and where are the main roadblocks? Which pre-competitive application areas could we focus on and which should be avoided? What are the business advantages to open innovation and what areas should be avoided? What advantages are there to open innovation with academia, and what potential roadblocks may we encounter? Is your organization interested in open innovation?