Access and Benefi t Sharing - Key Points for Policy-Makers Sarah A. Laird - ABS Initiative

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Access and Benefi t Sharing - Key Points for Policy-Makers Sarah A. Laird - ABS Initiative
Access and Benefit Sharing
Key Points for Policy-Makers
THE PHARMACEUTICAL INDUSTRY

                               Sarah A. Laird
                               November 2015
Access and Benefi t Sharing - Key Points for Policy-Makers Sarah A. Laird - ABS Initiative
SUMMARY OF KEY POINTS

      MARKETS, COMPANIES AND PRODUCTS                                         NATURAL PRODUCTS RESEARCH
           Revenues have increased steadily over the last 30 years, but in         Although support for natural products research in large
           recent years growth has slowed in developed country markets             companies has declined, the contribution of natural products to
           while in ‘pharmerging’ markets it has increased.                        the development of new drugs continues, and between 1981-
           The world’s largest pharmaceutical companies are located in             2013 an average of 31% of all new drugs annually were natural
           developed countries. Their earnings make them some of the               products.
           wealthiest companies in the world.                                      Natural products research has undergone dramatic changes
           The pharmaceutical industry has undergone significant                   in the last 50 years, with significant implications for the speed,
           consolidation over the last 30 years in order to increase growth        scale and focus of R&D, and the design of effective ABS
           and acquire new technologies, expertise and novel drug                  measures.
           candidates.                                                             Traditional knowledge, once the primary lead for the discovery of
           Many of the industry’s top-selling drugs have gone off-patent,          new medicines, is no longer a significant part of industry R&D.
           resulting in reduced revenues in recent years. Patent expiries
           on small molecule products will reduce brand spending in           INDUSTRY AND ABS
           developed markets by $113 billion through 2017.                         The pharmaceutical industry is more aware of the Convention
           A top-selling pharmaceutical product can now generate more              on Biological Diversity than many other sectors, although this is
           than $5 billion in sales a year.                                        more the case with large companies than with small. However,
           Specific disease areas and products differ significantly between        many concerns persist within industry about legal certainty and
           developed and pharmerging markets.                                      the need for new measures drafted to implement the Nagoya
                                                                                   Protocol to reflect the scientific, business and legal realities of
                                                                                   natural products research today.
      TRENDS IN RESEARCH AND DEVELOPMENT
           Spending on R&D has increased over the last few decades but
           productivity has gone down. The number of new drugs coming
           on the market each year has held roughly steady or declined
           since 1981.
           Government contributions to pharmaceutical R&D remain high
           across the globe. In the US, for example, government funding
           contributed to 48% of all drugs approved by the FDA and 65%
           of drugs that received priority review between 1988-2005.
           Drug discovery, including that on natural products, is
           increasingly done in smaller start-up companies, academia and
           government laboratories, with large companies undertaking
           development and marketing.

2
Access and Benefi t Sharing - Key Points for Policy-Makers Sarah A. Laird - ABS Initiative
MARKETS, COMPANIES AND PRODUCTS
                                                                                                                                               Global growth rates
                                                                                                                                                             1 200
                                                           7%
                                                                                                                    37% NORTH AMERICA                        1 000                                                      13%
            Revenues have                 LATIN AMERICA                                                                                                       800
                                                                                                                                                                                                                         7%
            increased steadily

                                                                                                                                               USD billion
                                                                                                                                                              600                                                        2%
            over the last 30 years,                                                                                                                           400
            but in recent years                                                                                      $989 billion of                          200
                                                                                                                                                                                                                         2%
            growth has slowed                   29%                                                                  global spending                            0
            in developed country
                                           ASIA /                                                                    on medicines                                        2008           2012          2017 (F)          CAGR*
            markets while in               AUSTRALIA
                                                                                                                                                                                                                      2012-2017
            ‘pharmerging’ markets                                                                                                                                    Pharmerging markets            Between 2012 and
            it has increased.                                                                                                                                        Other emerging markets
                                                                                                                                                                                                    2017, Pharmerging
                                                                                                                                                                                                    markets have growth
                                                                                                                                                                                                    rates far higher than
                                                                                                               4%   AFRICA / MIDDLE EAST                             Other developed markets
                                                                                                                                                                                                    in mature markets.
                                                                 24%                                                                                                 Top 8 mature markets
                                                                       EUROPE                                                                                                                     *CAGR (Compound Annual Growth Rate)

                                                                                                                          EUROPE
           The world’s largest pharmaceutical companies are located in developed                                                                                                   2013 R&D
           countries. Their earnings make them some of the wealthiest companies                                            RANK   COMPANY   COUNTRY
                                                                                                                                                                 2013 SALES
                                                                                                                                                                (USD million)
                                                                                                                                                                                  SPENDING
                                                                                                                                                                                                    2013 TOP-SELLING DRUGS
                                                                                                                                                                                                          (USD million)
                                                                                                                                                                                 (USD million)
           in the world.
                                                                                                                                                                                                 Gleevec ($4,693) Diovan
                                                                                                                            1                                    $46,017           $9,360
                                                                                                                                                                                                 ($3,524) Lucentis ($2,383)
                    NORTH AMERICA
                                                                    2013 R&D
                                                                                                                                                                                                 Rituxan ($7,503) Avastin
                                                  2013 SALES                         2013 TOP-SELLING DRUGS                 3                                    $39,143           $8,294
                     RANK   COMPANY   COUNTRY                      SPENDING                                                                                                                      ($6,751) Herceptin ($6,562)
                                                 (USD million)                             (USD million)
                                                                  (USD million)
                                                                                                                                                                                                 Lantus ($7,592) Plavix
                                                                                                                            4                                    $37,701           $6,117
                                                                                  Lyrica (4,595) Prevnar                                                                                         ($2,460) Lovenox ($2,262)
                       2                          $45,011           $6,254
                                                                                  ($3,974) Enbrel ($3,774)
Top Companies

                                                                                                                                                                                                 Seretide / Advair ($8,251)
                                                                                  Januvia ($4,004) Zetia                    6                                    $33,055           $5,041        Pediarix ($1,349)
                       5                          $37,519           $7,123
                                                                                  ($2,658) Remicade ($2,271)                                                                                     Avodart ($1,341)
                                                                                  Remicade ($5,334) Zytiga                                                                                       Crestor ($5,622) Nexium
                       7                          $26,475           $5,810                                                  8                                    $24,523           $4,269
                                                                                  ($1,698) Prezista ($1,673)                                                                                     ($3,872) Symbicort ($3,483)
                                                                                  Cymbalta ($5,084) Alimta
                       9                          $20,119           $5,316                                                  13                                   $15,594           $2,710        Kogenate ($1,597)
                                                                                  ($2,703) Humalog ($2,611)
                                                                                  Humira ($10,659) AndroGel
                      10                          $18,790           $2,831                                                  14                                   $14,886           $2,090        NovoRapid ($3,001)
                                                                                  ($1,035) Kaletra ($962)

                      11                          $18,192           $3,941        Enbrel ($4,551)                           15                                   $14,468           $3,247        Spiriva ($4,719)

                      17                          $12,306           $3,715        Reyataz ($1,551)                        ASIA / AUSTRALIA
                                                                                                                                                                                   2013 R&D
                                                                                                                                                                 2013 SALES                         2013 TOP-SELLING DRUGS
                                                                                                                           RANK   COMPANY   COUNTRY                               SPENDING
                      18                          $10,804           $2,056        Atripla ($3,648)                                                              (USD million)                             (USD million)
                                                                                                                                                                                 (USD million)

                    AFRICA / MIDDLE EAST                                                                                    16                                       $13,591       $3,352        Biopress ($1,256)
                                                                    2013 R&D
                                                  2013 SALES                         2013 TOP-SELLING DRUGS
                     RANK   COMPANY   COUNTRY                      SPENDING
                                                 (USD million)
                                                                  (USD million)
                                                                                           (USD million)                    19                                       $10,431       $2,132        Prograf ($1,755)

                      12                          $17,563           $1,422        Copaxone ($4,328)                         20                                       $10,268       $1,926        Benicar ($2,116)

                                                                                                                                                                                                                                        3
Access and Benefi t Sharing - Key Points for Policy-Makers Sarah A. Laird - ABS Initiative
The pharmaceutical industry has undergone significant consolidation over                                                                                                                                   Many of the industry’s top-selling drugs have gone
                                                         the last 30 years in order to increase growth and acquire new technologies,                                                                                                                                off-patent, resulting in reduced revenues in recent
                                                         expertise and novel drug candidates.                                                                                                                                                                       years. Patent expiries on small molecule products
                                                                                                                                                                                                                                                                    will reduce brand spending in developed markets by
                                                                                                                                                                                                                                                                    $113 billion through 2017.
    1980

                                                                                                                                                                        No. Companies: (including Amgen and Johnson and Johnson) 33
                                                         Merck          Hoffman    Hoescht Roussel       Squibb        Sandoz           Glaxo             Pfizer

                                                                                    Marion Merril                                                                                                                                        Developed markets patent expiry 2008-2017
                                                     Schering-Plough   Genentech        Dow           Bristol Myers   Ciba-Geigy      Wellcome          Parke-Davis
                                                                                                                                                                                                                                                            60
                                                        Organon                    Rhone Poulenc     DuPont Pharma                    Burroughs       Warner Lambert
                                                                                                                                                                                                                                                                                  $149 billion                                      $123 billion
                                                                                                                                    Smith Kline &                                                                                                           40                   Pre-expiry spending
                                                                                       Sanofi        Merck DuPont                     French             Monsanto

                                                                                                                                                                                                                                      SPENDING US BILLION
                                                                                     Synthelabo                                       Beecham             Searle                                                                                            20
                                                                                                                                                                                                                                                                   21.0     22.3        26.9        28.4   50.3         19.1    31.7        28.8     20.3       22.6
                                                                                                                                                          Upjohn                                                                                             0
                                                                                                                                                                                                                                                                   -18.5    -15.3       -21.5    -22.6     -43.6        -32.1   -17.2       -26.2    -22.5      -15.9
                                                                                                                                                        Pharmacia                                                                                           -20
       Consolidation has been a continuing process

                                                                                                                                                        A H Robbins                                                                                         -40                   -$121 billion                                    -$113 billion
                                                                                                                                                                                                                                                                            Lower brand spending
                                                                                                                                                       Lederle (AHP)
                                                                                                                                                                                                                                                            -60
                                                                                                                                                                                                                                                                   2008     2009        2010       2011    2012         2013    2014        2015     2016       2017
                                                                                                                                                          Wyeth
                                                                                                                                                                                                                                                 Protection            US                  Japan            UK                  France              Germany
                                                                                                                                                                                                                                                 expiry year
                                                                       H-LaRoche      Hoescht            Squibb        Sandoz        SmithKline           Pfizer                                                                                                       Plavix              Nu Lotan         Lipitor             Tahor               Seroquel
                                                                         Syntex                                                       Beecham                                                                                                               2012       Seroquel            Myslee           Amias               Singulair           Atacand
                                                                                       Sanofi/                                                                                                                                                                         Singulair           Preminent        Seroquel            Pariet              Atacand Plus
                                                                       Genentech     Synthelabo      Bristol Meyers   Ciba-Geigy                      Warner Lambert                                                                                                   Actos                Haigou          Aricept®            Ixprim              Sortis
                                                                                                                                                                                                                                                                       Lexapro             Seroquel         Singulair           Aprovel             Aricept
                                                                                   RhonePoulenc &                                                     Monsanto Searle                                                                                                  Diovan
                                                                                       Fisons                                                                                                                                                                          Diovan HCT®
                                                                                    Marion Merril                                                       Pharmacia                                                                                                      Geodon
                                                                                        Dow                                                              Upjohn                                                                                                        Viagra
                                                                                                                                                                                                                                                                       Boniva
                                                                                                                                                       Lederle (AHP)                                                                                                   Oxycontin®          Diovan           Viagra              Seretide            Viani
                                                                                                                                                                                                                                                            2013       Aciphex             Plavix           Xeloda              Coaprovel           Zometa
                                                                                                                                                          Wyeth                                                                                                        Zameta              Livalo                               Xeloda              Atmadisk
                                                                                                                                                                                                                                                                       Xeloda              Elplat                               Micardis            Coaprovel
                                                                                                                                                                                                                                                                       Opana ER                                                 Viagra              Viagra
                                                                                                                                                                                                                                                                       Asacol
                                                                                   Hoescht Roussel   Bristol-Meyers                  SmithKline           Pfizer                                                                                                       Nexium®                                                                      Axura
                                                                                                         Squibb                       Beecham                                                                                                                                              Prograf          Abilify             Seroplex
                                                                                                                                                                                                                                                            2014       Cymbalta            Glivec           Cipralex            Abilify             Risperdal Consta
                                                                                       Sanofi/                                       Burroughs-         Pharmacia                                                                                                      Cerebrex            Abilify          Risperdal Consta    Ebixa               Biopress Plus
                                                                                     Synthelabo                                       Wellcome                                                                                                                         Symbicort                                                Risperdal
                                                                                                                                                                                                                                                                       Lunesta                                                   Consta LP
                                                                                   RhonePoulenc &                                       Glaxo          Lederle(AHP)
                                                                                       Fisons                                                                                                                                                                          Restasis
                                                                                                                                                                                                                                                                       Evista
                                                                                                                                                                                                                                                                       Sandostatin LAR
                                                                                                                                                          Wyeth
                                                                                                                                                                                                                                                                       Actonel
                                                                                                                                                                                                                                                                       Abilify             Zyprexa          Spiriva             Alimta              Spiriva
                                                                                                                                                                                                                                                            2015       Copaxone            Adoair           Cymbalta            Spiriva             Copaxone
                                                         Merck         Hoffman         Aventis                                     GlaxoSmith Kline       Wyeth                                                                                                        Gleevec             Alimta           Alimta              Copaxone            Alimta
                                                                       LaRoche                                                                                                                                                                                         Namenda             Spiriva                              Protelos            Cymbalta
                                                                                       Sanofi/                                                                                                                                                                         Provigil            Symbicort                            Cymbalta
                                                     Schering-Plough                 Synthelabo                                                           Pfizer                                                                                                       Combivent
                                                                                                                                                                                                                                                                       Zyvox
                                                                                                                                                                                                                                                                       Prezista
                                                                                                                                                                                                                                                                       Avodart
                                                         Merck          Roche      Sanofi-Aventis    Bristol-Meyers    Novartis        Glaxo              Pfizer
                                                                                                         Squibb                      SmithKline                                                                                                                        Crestor             Blopress         Glivec              Glivec              Glivec
                                                                                                                                                                                                                                                            2016
                                                                                                                                                                        9

                                                                                                                                                                                                                                                                       Benicar             Baraclude        Vfend               Cancidas            Zyvoxid
    2010                                                                                                                                                                                                                                                               Benicar HCT
                                                                                                                                                                                                                                                                                                                                Vfend               Vfend
                                                                                                                                                                                                                                                                       Cubicin

4
Access and Benefi t Sharing - Key Points for Policy-Makers Sarah A. Laird - ABS Initiative
A top-selling pharmaceutical
      product can now generate                         Specific disease areas and products differ
      more than $5 billion in sales                    significantly between developed and
      a year.                                          pharmerging markets.

Top ten global products 2013                  Spending by therapy area (projected for 2017)

                  2013 sales (USD million)
                                              DEVELOPED MARKETS                         Projected sales in 2017   PHARMERGING MARKETS                       Projected sales in 2017
                                                                                             (USD billion)                                                       (USD billion)
            1                        $9,851
                                                             Oncology                       $74-84 billion                           Pain                      $22-25 billion

                                                             Diabetes                       $34-39 billion              Other CNS Drugs                        $20-23 billion

            2                     $9,213                    Anti-TNFs                       $32-37 billion                     Antibiotics                     $18-21 billion

                                                                  Pain                      $31-36 billion                      Oncology                       $17-20 billion

                                                        Asthma/COPD                         $31-36 billion                  Hypertension                       $14-17 billion
            3                $8,149
                                                     Other CNS Drugs                        $26-31 billion                      Diabetes                       $10-12 billion

                                                         Hypertension                       $23-26 billion                  Dermatology                        $10-12 billion
            4               $7,949
                                                   Immunostimulants                         $22-25 billion                  Antiulcerants                      $9-11 billion

                                                         HIV Antivirals                     $22-25 billion                    Cholesterol                      $6-8 billion
            5            $7,935                          Dermatology                        $22-25 billion                 Asthma/COPD                         $3-5 billion

                                                            Antibiotics                     $18-21 billion                 Anti-Epileptics                     $3-5 billion

            6           $7,863                             Cholesterol                      $16-19 billion        Antivirals excluding HIV                     $3-5 billion

                                                        Anti-Epileptics                     $15-18 billion         Immunosuppressents                          $3-5 billion

                                                Immunosuppressents                          $15-18 billion                        Allergy                      $3-5 billion
            7           $7,832
                                                        Antipsychotics                      $13-16 billion               Antidepressants                       $3-5 billion

                                                         Antiulcerants                      $12-14 billion                    Antiplatelet                     $3-5 billion
            8          $7,678
                                                      Antidepressants                       $10-12 billion                 Antipsychotics                      $2-3 billion

                                               Antivirals excluding HIV                     $8-10 billion                       Heparins                       $1-2 billion

            9      $6,464                                       ADHD                        $7-9 billion             Erectile Dysfunction                      $1-2 billion

                                                           Interferons                      $6-8 billion              Immunostimulants                         $1-2 billion

           10      $6,263

                                                 BRAND 67%                GENERIC 21%   OTHER 12%                   BRAND 26%                GENERIC 63%   OTHER 11%

                                                                                                                                                                                      5
Access and Benefi t Sharing - Key Points for Policy-Makers Sarah A. Laird - ABS Initiative
TRENDS IN RESEARCH AND DEVELOPMENT
                                                                                                                                         Revenues

             Spending on R&D has increased over the last few decades but
             productivity has gone down. The number of new drugs coming
             on the market each year has held roughly steady or declined
             since 1981.                                                                                             2013

    R&D expenditures, industry revenues                                                         2010
    and new chemical entities
                                                                                                                                         R&D
                                                                                                                                         Expenditures
                                                               2000

                               1990
     1980

                                                                                                                                         R&D
                                                                                                                                         Productivity
                     1985                     1995                                2005

       39            45          39           38                37                33             20                   31                 New Chemical
      NCEs          NCEs        NCEs         NCEs              NCEs              NCEs           NCEs                 NCEs                Entities
                                                                                                                                         (NCEs)
        10            21          11           11                13                13             10                    5
       Natural       Natural     Natural      Natural           Natural           Natural        Natural              Natural
      Products      Products    Products     Products          Products          Products       Products             Products
                                                                                                                                $119.3

                                                                                                            $81.7
                                                Public and industry biomedical
             Government contributions to
                                                R&D expenditures, 2012                             $37.1
             pharmaceutical R&D remain
             high across the globe. In the      (USD billion)
                                                                                        $8.3                                    $48.9
             US, for example, government
             funding contributed to 48%                 $5.3
                                                                          $6.1                               $28.1
             of all drugs approved by the                                                           $9.5
             FDA and 65% of drugs that                                                  $2.0                                    $70.4
             received priority review                                                                        $53.6
                                                                                                    $27.6
             between 1988-2005.                         $3.3              $4.7          $6.3
                                                        $2.0              $1.4                                                                Public

                                                                                                                                 USA
                                                                                                                                              Industry
                                                    CANADA         AUSTRALIA            CHINA      JAPAN    EUROPE

6
Access and Benefi t Sharing - Key Points for Policy-Makers Sarah A. Laird - ABS Initiative
Drug discovery, including that on natural products, is increasingly done in smaller start-up
                                      companies, academia and government laboratories, with large companies undertaking
                                      development and marketing.

                                                         The ecosystem of life sciences R&D

                                                                                                          Start-Ups
                                                                                                                              Venture
                                                                                                                              Capital

                        Genetic resources                                                                                                                    Nonprofits
                         sourced from:                                                                  Academic
                                                                                                        Research
                 • existing collections and libraries                                                   Institutions                                               Government
                     • electronic data/internet                                                                                                                    Regulators
                      • limited field collections                                                                                   Large
                          (mainly domestic)                                                                                         Biopharma                                Clinical Trial
                                                                                                        Government                  Research                                 Sites
                                                                                                        Research                    Companies
                                                                                                        Institutes

                                                                                                                                         Clinical Research           Drugs
                                                                                                                                         Organisations
                                                                                                                Pharmacists,
                                                                                                                Providers and
                                                                                                                Health Systems

“                                                                                               “
    We can work here, and collect microorganisms from marine water and soil in our                  Collaborations provide a biotechnology company with money and
    local environment. In any microenvironment the vast majority of bacteria are for                resources while providing the pharmaceutical company access to cutting-
    the most part unknown. This wouldn’t apply to extreme environments that tend to                 edge technologies. In addition, by collaborating with multiple partners,
    select for very specific types of bacteria. When I worked at Lederle, anyone who                pharmaceutical companies today decentralise parts of their R&D activities.
    went on a trip was given a plastic bag to collect soil samples. But now we know we              This decentralisation provides a mechanism by which companies can (1)
    can find spectacular microbial diversity here. This wouldn’t be true for plants, but it         evaluate multiple new platform or product opportunities without increasing
    is definitely true for microorganisms. It would take us lifetimes to sort through what          the size and cost of their own operations and (2) effectively increase the
    we can get our hands on from this region, so there is no need to collect overseas.              bandwidth of their operations.
                                                                  – Chief Scientific Officer,                          – Phil Kearney, Director of Licensing and External Research,
                                                         small biotech company in the US                                                                   Merck Sharp and Dohme

                                                                                                                                                                                              7
Access and Benefi t Sharing - Key Points for Policy-Makers Sarah A. Laird - ABS Initiative
NATURAL PRODUCTS RESEARCH

                                                  70
                                                                                                                                                  The contribution of natural products to total drugs
                                                  60

          Although support for natural                                                                                                                                                                     Drugs approved world-wide
                                                  50
          products research in large                                                                                                                                                                       Natural products
          companies has declined, the
                                                  40
          contribution of natural products
          to the development of new
          drugs continues, and between            30

          1981-2013 an average of 31%
          of all new drugs annually were          20
          natural products.
                                                  10

                                                   0
                                                       1981
                                                              1982
                                                                     1983
                                                                            1984
                                                                                   1985
                                                                                          1986
                                                                                                 1987
                                                                                                        1988
                                                                                                               1989
                                                                                                                      1990
                                                                                                                             1991
                                                                                                                                    1992
                                                                                                                                           1993
                                                                                                                                                  1994
                                                                                                                                                         1995
                                                                                                                                                                1996
                                                                                                                                                                       1997
                                                                                                                                                                              1998
                                                                                                                                                                                     1999
                                                                                                                                                                                             2000
                                                                                                                                                                                                    2001
                                                                                                                                                                                                           2002
                                                                                                                                                                                                                   2003
                                                                                                                                                                                                                          2004
                                                                                                                                                                                                                                 2005
                                                                                                                                                                                                                                        2006
                                                                                                                                                                                                                                               2007
                                                                                                                                                                                                                                                      2008
                                                                                                                                                                                                                                                             2009
                                                                                                                                                                                                                                                                    2010
                                                                                                                                                                                                                                                                           2011
                                                                                                                                                                                                                                                                                  2012
                                                                                                                                                                                                                                                                                         2013
                                                                                                                                                                 58

             Number of approved drugs
    44       world-wide (1981-2013)                                                                                                                                                         KEY
                                                                                                                                                                                             S                    Totally synthetic drug, often found by random
                                                                                                                                                                                                                  screening/modification of an existing agent

                                                                                                   30                                                                                        S/NM                 Totally synthetic drug/Natural Product mimic
                                                                 27                                                                                                                          S*                   Made by total synthesis, but the pharmacophore is/was
                                                                                                                                                                                                                  from a Natural Product

               19         21                                                                                                                                                                 S*/NM                Made by total synthesis, but the pharmacophore is/was
                                     17                                                                                                                                                                           from a Natural Product/Natural Product mimic
                                                                                                                                                                                             V                    Vaccine
                                                                                                                                                                                             B                    Biological; usually a large (>45 residues) peptide or
                                                                                                                                                                                                                  protein either isolated from an organism/cell line or
                                             5                                                                                                                                                                    produced by biotechnological means in a surrogate host
                                                                                                                                    1                                                        N                    Natural Product
                                                                                                                                                                                             NB                   Natural Product ‘Botanical’ (in general these have been
                                                                                                                                                                                                                  recently approved)
                                                                                                                                                                                             ND                   Derived from a Natural Product and is usually a
     S        S/NM        S*        S*/NM     V                  B                                 N                                NB                           ND
                                                                                                                                                                                                                  semisynthetic modification
    20%        9%         9%         8%      2%                 12%                               14%                               0%                          26%
                                                                                                                                                                                            Source: Newman and Cragg, 2012
                                                                                                          NATURAL PRODUCTS
8
Access and Benefi t Sharing - Key Points for Policy-Makers Sarah A. Laird - ABS Initiative
TRENDS IN NATURAL PRODUCT RESEARCH AND DRUG DISCOVERY
                                                                       Natural products research has
                                                                       undergone dramatic changes in
                                                                       the last 50 years, with significant
   1965                  1990                     2015                 implications for the speed, scale
                                                                       and focus of R&D, and the design of
                                                                       effective ABS measures.

                        TECHNOLOGIES

                          • Automated
 Natural products     biochemical screening     Genomics-driven
    chemistry          • Modern analytical       drug-discovery
                            chemistry

                      MATERIALS STUDIED

                                                                  “
                                                                      The approach we are using more and more, and
                                                                      now predominantly, is to leverage the biosynthetic
                                                                      pathways in microorganisms to address chemical
                                                                      problems in terms of drug discovery, and to
                                                                      find new compounds, or even old compounds,
                                                                      and then to use genetic engineering to change
                                                                      those compounds to make them better drug
   NUMBERS OF COMPOUNDS ISOLATED AND STUDIED FROM A SAMPLE
                                                                      candidates. This is really the trend in natural
                                                                      product science… The days of going out and
                                                                      collecting things – whether sponges, plants, or
       =1–2                 = 10 – 15              = 50 – 100         soil samples for microorganisms – and searching
                                                                      for new chemicals for drug leads on a mass
                                                                      scale by turning the crank a lot, those days are
                                                                      behind us. There is still value there, but we need
                                                                      to be smarter about how we do this. Over the
                       SIZE OF SAMPLES                                last 10-15 years the scientific community has
                                                                      come to realise that the real value in organisms
                                                    Milligrams        is the genes that enable organisms to make the
    Kilograms                 Grams                  or less
                                                                      compounds that they do. Bioprospecting in the
                                                                      1990s emphasised the organism, but it really
                                                                      isn’t the organism anymore, it is the genes, and
                                                                      we need to incorporate this into our models for
                                                                      benefit-sharing.
                    TIME TO TEST A SAMPLE
                                                                                       – Head of Natural Products Unit,
                                                                                         large pharmaceutical company
 Months/years                Days                   Hours

                                                                                                                           9
Access and Benefi t Sharing - Key Points for Policy-Makers Sarah A. Laird - ABS Initiative
Traditional knowledge, once the primary lead for the
      discovery of new medicines, is no longer a significant part of
      industry R&D.

                                       Use of traditional knowledge in drug development

                                                                                                       Ethnobotanical collections
             1900             Sources of
                              traditional                                                              Internet / databases
                              knowledge                                                                                                     HIGH TECH
                                                                                                       Literature

                                             1960

                                                                                                                                       ry
                                                                                                                                   cove
                                                                                                                               dis
     TK- DERIVED DRUGS                                                                                                   rug
     • Aspirin                                                                1990                               e  nd
     • Morphine                                                                                          s- driv
     • Quinine                                                                                    nomic
     • Digitoxin                                                                               Ge
     • Pilocarpine
                                     TK- DERIVED DRUGS
                                     • Vincristine                                                        2000
                                     • Vinblastine
                                     • Galantamine                 ng
                                                              reeni
                                                      a  l sc
                                                 hemic
                                             ioc                        TK- DERIVED DRUGS
                                        tedb
                                     ma                                 • Artemisin                                                          2015
                                  to
                                Au                                      • Crofelemer
                                                                          (approved in 2012)

         LOW TECH

10
INDUSTRY AND ABS

    The pharmaceutical industry is more aware of
                                                                         SOURCES
    the Convention on Biological Diversity than many
    other sectors, although this is more the case with                             IMS Health, 2013. Pharmerging Markets: Picking a Pathway to Success;
    larger companies than with smaller. However, many                              IMS, 2014. Global Outlook for Medicines through 2018; Pharmaceutical
                                                                                   Executive, 2014. Pharma 50 Insight: The Accelerating Growth of
    concerns persist within industry about legal certainty                         Specialty Markets; Van Arnum, P. 2014. IMS Offers a Subdued Outlook
    and the need for new measures drafted to implement                    Page 3   for Global Pharmaceutical Industry at DCAT Week ’14. DCAT Connect,
    the Nagoya Protocol to reflect the scientific, business                        March 25; Datamonitor, 2009. Big Pharma Mega-Mergers 1995-2014;
    and legal realities of natural products research today.                        Baum, R. 2011. Changing Pharmaceutical Paradigms. Chemical and
                                                                                   Engineering News, October 4; Kearney, P. 2011. What is the Future for
                                                                                   the Big Pharma Model? AFG Venture Group Dispatches.

                                                                                   Newman, D.J. 2015. pers. com.; IMS Health, 2013. Thought
                                                                                   Leadership, September; IMS Health, 2014. Top 20 Global Products
                                                                                   2013; IMS Health, 2014. Global Outlook for Medicines through 2018;

“
    The CBD has had a cooling effect on natural products                           Kearney, P. 2011. What is the Future for the Big Pharma Model? AFG
                                                                          Page 4   Venture Group Dispatches; Noor, W. 2014. The Long Tail. PharmExec.
    research, but it will not stop a company from going forward.
                                                                                   com; Pharma Voice, 2014. Specialty Drugs: An Evolving Commercial
    There are ways to work with the treaty, the best being
                                                                                   Model; Van Arnum, P. 2014. IMS Offers a Subdued Outlook for Global
    working directly with academic and other partners… Our                         Pharmaceutical Industry at DCAT Week ’14. DCAT Connect, March 25.
    collaborators do the work to get the agreements in place
    and so it isn’t too cumbersome and we came up with a good                      IMS Institute for Healthcare Informatics, 2013; www.drug.com, 2014;
    agreement. The real test of the agreement didn’t happen                        IMS Health, 2014; Staton, T. 2014. The Top 10 Patent Losses of 2015,
    because we didn’t get a drug out of it…But we could                            FiercePharma, www.fiercepharma.com, December 17; Krishnan, A.
    operate, the research could continue.                                 Page 5   2011, Drug Patents Expiration in 2011 and 2012 – A Bumpy Ride Ahead
                                                                                   for Big Pharma as Big Drugs Lose Patent Protection. IHS Healthcare,
                                        – Head of Natural Products,                pharma blog; Alazraki, M. 2011. The 10 Biggest-Selling Drugs that Are
                                     large pharmaceutical company                  About to Lose Their Patent, February, www.dailyfinance.com.

                                                                                   PhRMA, 2015, www.phrma.org; Chakma, J., Sun, G.H., Steinberg,

“
    I’ve always maintained that natural product drug discovery                     J.D., Sammut, S.M. and Jagsi, R. 2014. Asia’s Ascent – Global Trends
    and development is an international collaborative effort – no                  in Biomedical R&D Expenditures. The New England Journal of Medicine
    one country is dominant. That is why I think if source countries               370(1):3–6; EFPIA, 2014. www.efpia.eu; Shah, A. 2014. Pfizer and
                                                                          Page 6   AstraZeneca: Innovation Will Not Follow Acquisition. Seeking Alpha, May;
    can develop viable and not too restrictive policies this can be
                                                                                   Newman, D.J. and Cragg, G.M. 2012. Natural Products as Sources of
    a win-win situation for everyone. If policies are too restrictive,
                                                                                   New Drugs over the 30 Years from 1981 to 2010. Journal of Natural
    particularly with microbes as a source of new chemistry and                    Products. www.pubs.acs.org/jnp.
    potential new drugs, companies will just study the microbial
    resources they have in their libraries or their own backyards.
    The microbial area makes protecting countries’ rights very                     PhRMA, 2015. www.phrma.org; Kearney, P. 2011. What is the Future for
    tricky, since companies can find compounds discovered in              Page 7   the Big Pharma Model? AFG Venture Group Dispatches; Noor, W. 2014.
    microorganisms from one country in another – much more                         Pharm Exec’s Pharma 50 in 2014. PharmExec.com, June 9.
    so than for plants. This is why NCI’s policy has always been
    that the place where the original collection and discovery was
    made is the one that should benefit, and this is even more
                                                                                   Newman, D.J. and Cragg, G.M. 2012. Natural Products as Sources of New
    important today.                                                      Page 8   Drugs over the 30 Years from 1981 to 2010. Journal of Natural Products.
            – Gordon Cragg, retired from Natural Products Branch,                  www.pubs.acs.org/jnp; Newman, D.J. and Cragg, G.M. in press.
                                       US National Cancer Institute

                                                                                                                                                              11
www.abs-initiative.info      www.bio-economy.org.za        www.peopleandplants.org

The Access and Benefit-Sharing Key Points for Policy-Makers series has been produced            Acknowledgements: Sincere thanks are due to the many
to provide governments, companies, researchers, communities and others with background         individuals who contributed comments and insights to the
information to assist with the development of access and benefit-sharing measures to           pharmaceutical industry brief. In particular, we would like
implement the Nagoya Protocol. The briefs are organised around central, key points on trends   to thank Bruno David, Gordon Cragg, Frank Koehn, David
and practices in markets, research and development, and ABS. More detailed information on      Newman and Sheo Singh. Thanks are also due to Paula
these sectors can be found at: www.bio-economy.org.za; www.abs-initiative.info;                Wood for her design and Jaci van Niekerk for her support
www.peopleandplants.org; CBD Bioscience at a Crossroads policy briefs:                         and assistance in this process.
https://www.cbd.int/abs/policy-brief/default.shtml/; and in the upcoming book:                 For further information please contact:
http://www.routledge.com/books/details/9781138779099/                                          abs-initiative@giz.de
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