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創 意 人 生

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Gold Rush

discovered gold in Coloma in 1848.

James Marshall

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But…..

where is today’s GOLD?

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TechnologyMarket

ProductBusiness

Model

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Strategic Differentiation of Marketing and Manufacturing Rights:

The Case of Bayer Licensing from NCHU

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Background• The US Bayh-Dole Act in 1980 stimulated the prom

ulgation of Basic of S&T Act in Taiwan in 1999.• The establishment of Technology Licensing Office

(TLO), National Chung Hsing University (NCHU)• Goals of TLO

– Manage and promote the academic R&D output– Protect the benefit of inventors/creators (or innovators for

both  instances)– Provide the needed technology for industrial transformati

on– Enhance the cooperation between industry and academi

a to create a win-win situation

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Prelude• An e-news forwarded by a friend from the Biotechnology a

nd Pharmaceutical Industries Program Office, Ministry of Economic Affairs in early 2003.– Kao-Sheng Pharmaceutical Corp. (KPC) – Over-estimated sales volume NT$1billion per year

• Tracking the cooperative line– Manufacturing– Marketing

• Threat of being downgraded as an OEM (KPC)• Creation of the optimization of commercial success (TLO’s

perspective)

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The Inventor & the Project• Professor Maw-Sheng Chien and his lab

– Graduate Institute of Veterinary Pathology, College of Veterinary Medicine

• A research project sponsored by Bureau of Animal and Plant Health Inspection and Quarantine, Council of Agriculture– Swine Atrophic Rhinitis Recombinant Subunit PMT Vacci

ne (AR,豬萎縮性鼻炎重組次單位毒素疫苗， Project #: 91農科 3.1.3—檢— B3)

– The R&D outcome is a result of accumulated R&D effort from professors in Graduate Institute of Veterinary Pathology, College of Veterinary Medicine for 18 years.

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NCHU-KPC-Bayer Cooperation• Identification of the Bayer key person: Joel Yu, GM o

f Animal Health, Health Care Group, Bayer Taiwan• Negotiation among 4 parties: COA+NCHU, Bayer, K

PC, and Professor Chien– Long process of hide-and-seek– Articulation of win-win situation– Trust and commitment

• Contracts signed by the 4 parties on Feb. 3, 2004– Technology licensing agreement– Supply agreement– QC agreement

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Key Successful Factors• Strong R&D capability• Strategic differentiation of patent rights

– Manufacturing– Selling– Using– Importing

• Enthusiastic and aggressive pushing force– Incentives– Insights– Integration

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Status Quo of AR

• Marketing permission has been granted in March 2004

• A press conference was held in July 2004

• Further market penetration to South Korean market is on the way. We are expecting subsequent entry to Mexican, Vietnamese, Philippians’ markets through the Bayer marketing platform.

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Gateway to the Future• On-going cooperation

– AR+PR (launched mid-2005)– Salmonella

• More research contracts released from Bayer HQ to Prof. Chien’s team provide– Enhanced international experience– Enriched R&D resources (budget and human reso

urces)– Upgraded quality demands

• CNLA certification for facilitating future commercialization

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Summary• What makes the case strategically significant?

– Sales volume increases at least 5 times in Taiwan, let alone the international market.

– Breakthrough of the vicious cycle of local vaccine manufacturers and R&D

– Subsequent technological cooperation with an internationally renowned corporation

• Creativity matters– There is no limit!

• Path dependent (technological accumulation)• Luck helps (timing, product lines)

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There is no limit!

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創 * 意 * 人 * 生

創 * 意 * 人 生

創 意 人 * 生

創 意 * 人 生

創 * 意 人 生