Niche technology CROs are becoming the second generaton pharma R&D service providers for better service quality and stronger partnership.

1. Better Choice, Better Solution:
Introducing to Niche Technology
CRO – AdobeChem Co., Ltd.
July 12, 2011
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2. List of Major Topics
• Pharma R&D outsourcing now and then
• What can a CRO do well for your project?
• Why can a specialized niche CRO do better?
• Do you really want a CRO for doing all for you?
• What would you really expect from a CRO?
• What can AdobeChem offer you?
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3. Pharma R&D Outsourcing Overview
• Global drug industry downsizing R&D functions due
to financial dilemma and dried pipeline
• Pharma R&D outsourcing began in early 1990’s,
market valued at over $15 billion in 2010 and yet
increasing by >20% annually
• Complementary to internal R&D
• Saving ⅔ ~ ¾ of relevant spending by outsourcing
• Quick access to necessary technologies
• Focus on internal key competences
• Budgetary freedom and timely resource allocation
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4. Typical CRO Business Models
• Drug discovery service only (CRO)
– Integrated service (IS-CRO)
– Functional service
• Drug development and API production (CMO)
• Clinical contract research organization (cCRO)
• CRO+CMO
• Do-it-all (CRO+CMO+cCRO)
• Specialized niche service only (nCRO)
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5. What Can a CRO Do Well for You?
• Significant cost reduction on HR & operations
• Complementation to internal functions
• Reduction of internal instrumental and logistic cost
• Timely access to needed technologies and expertise
• Dynamic project resource allocation
• Technical problem solving
• Budgetary freedom
• Intellectual property ownership
• Low liability and responsibility in labor and finance
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6. What If A CRO Wants to Do All for You
• Very complicated infrastructure and deal making
• Diluted service quality due to lost attention
• A project manager may wear multiple hats
• Your technology may be shared by your competitors
• Your IP is at risk when a CRO knows everything
• You may have to compromise some key functions
• Do not be surprised by mediocre service quality as a
CRO just can not afford a big pharma R&D platform
• Expect loose ends here and there as not all functions
meet your standard and project needs
• Driving such a CRO can be your nightmare
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7. Why Can a Niche CRO Do Better?
• Focused administration, staffing, technology, IT,
instrumentation, and logistics
• Easier communication; You can drive for results
• Straightforward project management
• Better technical troubleshooting and scientific innovation
built on expertise and focus
• Higher standard on individual performance
• No internal competition for resources and budget
• More competitive/relevant pricing rooted in cost savings
• Synergies on alliance among niche technology CROs that
share a similar business model
• Freedom to select the best functional service providers
rather than compromising all with a single partner
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8. Allied Niche CROs vs. IS-CRO
Criteria Niche CRO alliance Integrated service CRO
Budget savings yes yes
IP protection easy risky
Service quality yes compromised, mixed
Timeline control easy tricky
Technology transfer easy difficult
Troubleshooting yes mediocre
Staff quality high compromised, mixed
Implementing your technology easy sorry, you have to teach
Communication easy ups and downs
Can you drive for results yes difficult
Can collaboration benefit CRO yes May be not
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9. Does An IS-CRO equal to A Biotech Partner?
Criteria Biotech Partner Integrated Service CRO
Budget savings no yes
IP protection yes risky
Service quality yes compromised, mixed
Timeline control easy tricky
Technology transfer easy difficult
Troubleshooting yes mediocre
Staff quality high low
Implementing your technology easy Sorry, you have to teach
Communication easy ups and downs
Can you drive for results yes difficult
Technical leadership yes no
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10. AdobeChem’s Business Model
 AdobeChem is a specialized niche CRO for chemistry
 We handle integrated service through nCRO alliance
 We are highly experienced in FTE and FFS services
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11. What Can AdobeChem Do & Coordinate
Target Hit Lead Clinical
Manufacturing
Validation Generation Optimization Research
Drug Discovery Drug Development Market
Stage AdobeChem services Services via nCRO Alliance
Target validation - Yes
Hit generation Yes Yes
Lead optimization Yes Yes
PK &TOX - Yes
Clinical R&D - Yes
CMC - Yes
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12. Summary
• Specialized niche CRO – the 2nd generation pharma
outsourcing solution provider
• Technology-focused CROs serve your project better
• nCRO alliance – your better solution for integrated
drug R&D project outsourcing
• AdobeChem – your long-term medicinal chemistry
and synthetic chemistry partner for quality,
performance, and cost reduction
• Contact us for your needs - chemistry and beyond
For more information and discussions,
please contact us: larry.zhang@adobechem.com
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13. Thank you very much!
2011/7/12 Confidential 13