Collaborative Innovation@Bayer · Page 14 Collaborative Innovation@Bayer • October 2016 Bayer...

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Monika Lessl, Bayer AG, Head Corporate Innovation and R&D – Innovation partnerships between Science and Industry- looking jointly into the crystal ball - Leverkusen, Nov 7, 2016

On the benefits of ambition and the power of the difference

Collaborative Innovation@Bayer

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Longterm success is driven by both - Stability and Agility

to run the daily business

and maximize value to adapt to a changing environment

and develop new business options

„Science For a Better Life“

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Bayer has a strong commitment to R&D

Almost 14.000 people working in R&D

Crop Science

~€1.1bn

Animal Health

~€0.13bn

Pharmaceuticals

~€2.45bn

Consumer Health

~€0.25bn

27%

6%

61%

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Innovation has been and will be a key driver for our success

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The environment is changing at a rapid pace

DIGITALIZATION drives business Innovation

SOCIETAL CHANGES

Increasing influence of NGOs

AGING and INCREASING population

Self determination of consumers

“CONSUMERISM”

VALUE REQUIREMENTS lead to new

business models (pay for performance)

DISRUPTIVE TECHNOLOGIES and BIG DATA transform R&D

NEW ENTRANTS in established markets

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We innovate in everything we do

Product

Innovation

driven by

strong R&D

PROCESS INNOVATION

Driving innovation

in how we operate

BUSINESS MODEL

INNOVATION

Evaluating new business models

Providing innovative services

to our customers

SERVICE INNOVATION

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We promote Innovation along the value chain: Innovation@Bayer is driven by 4 key success factors

Research Development Product Supply Marketing Sales

Strong R&D capabilities

Collaborative

Ecosystem

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The collaborative ecosystem has just started

New collaboration patterns are changing

the global balance of science. Established

superpowers need to keep up or be left behind,

says Jonathan Adams.

Nature Vol 490, 2012

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Requirements of a Collaborative ECOSYSTEM

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Bayer HealthCare’s approach of flexible partnering models to meet the individual needs of the partners

• Joint labs

• Strategic innovation partnership

• Consortia

• Joint research

• Crowdsourcing

• Licensing

• Build to Buy model

• Incubator

• Venture Investments

• Joint Ventures

• DKFZ

• Broad Institute, Evotec, Targenomix

• Innovative Medicine Initiative

• Singapore Network

• Grants4platform

• LDC Dortmund

• Inception4 Ophthalmology

• CoLaborator SF/Berlin

• Versant Ventures, HTGF, Finistere

• Bayer Life Science Center

CLOSE INTERACTION, SHARED LABS

MULTIPLE PROJECTS,

CLOSE INTERACTION

INDIVIDUAL PROJECT

TRANSITION OF ASSETS

ARM‘S LENGTH

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Strategic partnerships with worldwide leading institutes: DKFZ -German Cancer Research Center - Bayer

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BHC – DKFZ: High strategic fit due to complementary expertise

Source: Wellenreuther, Keppler, Mumberg, Ziegelbauer & Lessl, Drug Discovery Today 2012, Vol 17, 1242-1248

• Drug discovery & development

• Target validation strategies

• Established technology platforms

for target validation

• Assay development for HTS

• Compound library and expertise

in medicinal Chemistry

• Preclinical drug development and

approval process; marketing and sales

• Deep Knowledge on molecular

mechanismus of cancer

• Innovative target ideas

• Expertise in novel, emerging

research areas (e.g. oncogenomics,

cancer stem cells)

• Novel mechanistic assays

• Clinical expertise (NCT) and capability

to perform clinical studies

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Strategic partnerships with worldwide leading institutes: Targenomix - Bayer

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We want to leverage emerging technology platforms to address 10 breakthrough ideas

1

6

3

2

5

10

4 8 7 9

Cure rare blood disorders

Cure monogenic blindness

Cure congenital heart disease

High speed crop breeding

Scar-less cardiac healing

1

2

3

5

4

Retina regeneration

Soil and root health

Non-toxic insecticides

Fast animal Vaccines

Plaque-eating macrophages

6

10

7

9

8

via the new Bayer Life Science Center

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December 21.2015 By John Carroll

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Bayer Open Innovation Family

Grants4Targets™ Grants4Apps® Grants4Traits Grants4Tech™

grants4traits.bayer.com grants4targets.com grants4apps.com grants4tech.bayer.com

Grants4indications

www.grants4indications.bayer.com

Grants for targets

and biomarkers.

Grants for novel

solutions to increase

crop productivity.

Innovative technologies

to support production in

the life-science industry

via e.g. robotic solutions.

Grants to explore

novel indications for

Bayer compounds.

Grants for innovative

IT projects which may

lead to new business

models.

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Causes of alliances failures

J. Weiss & L.J. Visioni, Vantage Partners

52%

37%

11%

Poor Stretagy, Business Planning

Poor legal, financial terms and conditions

Poor relationships

• Low trust

• Poor communication

• Poor conflict resolution

• Culutral differences

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We apply the RESOLVE¹ model for professional management of partnerships

Value of Relationship

and Culture Enthusiasm/Commitment

Strategic Fit Value Communication

MUTUAL

BENEFIT

ADDED

VALUE

AND

Professional Operational

Management Learning Capabilities

¹ Lessl & Douglas: Wissenschaftsmanagement. (2) 2010, p 34-41

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It‘s all about people Let‘s join forces to make the world a better place