TOO MANY PROMISING drugs, too little time. It's a problem every company would love to have. But for discovery shops like Kyowa Pharmaceutical, which rely on optimizing the value of compounds in development, managing the pipeline and patent life is a major concern.
For Japanese companies just finding their feet in the United States, this decision is increasingly tricky. Kyowa's general counsel and vice president of business development, Joseph Brindisi, discusses how the globalization strategy is changing for Japanese pharmas as well as issues Kyowa faces as it prepares to file a New Drug Application with FDA for istradefylline, its Parkinson's disease drug.What are the biggest challenges in drug discovery and development?
A potential drug's value greatly increases—as does the interest from licensees—once there's evidence of safety and efficacy. At the same time, the value goes down as its patent life shortens. If companies can get compounds to proof of concept—which is Phase IIa—fast, it would enable them to choose which products to focus their own resources on and which products they should outlicense.
Proof of concept is where a company shows that its drug meets efficacy endpoints. These trials are smaller than a Phase III trial, and generally are not powered in a way to show a high rate of statistical significance. The drug may not even be tested at the optimum dosing because the company hasn't yet done the dose-finding trials, either. But it's enough to show that the product at this stage has some efficacy—and it's safe because it has completed Phase I trials.
How is Kyowa changing its R&D process?
Growing competition is forcing Big Pharma to license compounds earlier. But ultimately will companies be satisfied taking over preclinical and other early-stage programs?
If a company believes in its own development skills, it can enhance the quality and speed of a drug's development. It hopefully can avoid any mistakes that a more inexperienced or a less resourced licensor might make while trying to develop the drug.
What will be interesting to watch is the tension between the licensors and the discoverers that have the vision to get to market themselves. Can companies retain a right of copromotion with their partner that is going to develop these early-stage products? Generally, if the licensees are going to put in the lion's share of the development investment, they are not going to be too open to sharing in the marketing success later on.
The way Kyowa handles it is to bring about a balanced portfolio. We license some drugs at early stages, like the mitotic kinesin Eg5 inhibitor we licensed to Eli Lilly. But then we retain the ability to develop other drugs, whether it's through Phase IIa or all the way to NDA, like istradefylline.