Anita Harris of the Harris Communications Group recently reported on a panel of industry experts who explored ways in which pharma companies and VC firms are partnering with biotech companies to develop drugs and generate investment returns. (Of course they’re interested in good science…and in using other peoples’ money).

Jeffrey Quillen, Foley Hoag

The panelists spoke on  September 5, 2018 at BioPharm America™ in Boston, moderated by Jeffrey Quillen, a partner at the Foley Hoag law firm. The group included:  Anthony Barry, Senior Director, Technologies, External Science and Innovation at Pfizer, Inc.; Marta New, a partner at Agent Capital; and Lance Ostrom, of Roche Partnering, who also heads Accenture’s Boston Innovation Hub.

They discussed three models—or what moderator Quillan termed “flavors”—of collaboration. In the first two models, pharma companies and venture capitalists participate in equity investments. In the third model, pharma companies or VCs fund feasibility studies.

Indirect Equity Investment

All three speakers said their companies participate in—or are considering—indirect equity models, in which a big pharmaceutical company invests in a venture capital fund as a limited partner.

Barry, of Pfizer, said his company is involved a variety of such portfolios. “It is one of the many ways that we diversify our interest in activities” and get to “the hotbed of biotech community.“ It helps us expand our reach in terms of seeing a broader range of portfolios that we may not hold on our own and get a firsthand look at those companies from a different perspective than their just being shopped around from outside. And there’s a further diversification of our investment into the space. Oftentimes we might look to join a partner that has a specific niche or an opportunity in terms of their focus that is a complement to what we’re doing.”

Here’s a link to the entire article.

Anita M. Harris is the founder and managing director of the Harris Communications Group, a PR, content and digital marketing agency based in Cambridge, MA.