HITerview with Sato Masanori, Head of Takeda's External Innovation Center for Japan and Asia-Pacific.
Longevity Prescription: Why Takeda isn’t Afraid of Failure Part 1
"Open innovation or perish." Like a fundamental skillset everyone in the industry should possess, the term "open innovation" resonates across the field. However, despite recognizing its necessity, discussions on "how to do it" are far from abundant. Similarly, there are no discussions on the attitude and standards governing these exchanges.
In August, HitNews met with Sato Masanori, Head of External Innovation Center (CEI), and Fujimura Ken, Lead, at Takeda Pharmaceuticals' Research and Development (R&D) department in Shonan Health Innovation Park, Kanagawa Prefecture, Japan.
What insights has Takeda Pharmaceuticals gained through external collaboration, pipeline establishment, and ecosystem building? In a two-part interview, we explore the criteria that guide Takeda Pharmaceuticals in pursuing open innovation partnerships, the global big pharma standards for open innovation they aspire to, and the attitude they adopt when facing these challenges.
①Fostering Innovation over Tomorrow's 'Returns' - Assisting Partner Commercialization
②Balancing Business and Research - Crossing Narrow Doors to Wider Opportunities
In Korea, early-stage drug research is often driven by national financial support and other forms of government assistance. In this context, Takeda's recent "COCKPI-T" program, which was conducted in South Korea, also received significant attention within the industry. I would like to hear more about the background and reasons for expanding the COCKPI-T program to Korea.
Fujimura Let's begin by explaining the COCKPI-T program. Normally, there's a difference between research conducted by pharmaceutical companies and external research done by academia and early-stage bio-companies. Pharmaceutical companies often concentrate on target mechanisms set by their organizations, while academic research is inherently fascinating and offers potential for breakthroughs. It's like an "exploration" phase, and Takeda launched the COCKPI-T program to bridge this gap and find ways to fill it.
Discussions about the COCKPI-T program have shaped Takeda's evolving open innovation strategy, especially in Asia, where there's a growing demand for innovation. This expansion isn't limited to Korea but has also extended to Japan, Australia, Singapore, and other Asian countries. These regions are witnessing remarkable foundational research, and there's a sense that progress has been particularly impressive lately. The goal is to replicate what's been happening in Japan in Korea and, eventually, across the wider Asian landscape.
Sato Lately, we've experienced Korea's vitality firsthand. Honestly, this feeling is not limited to Takeda but is a shared sentiment among other global pharmaceutical company representatives exploring opportunities in Asia. We've also considered extending the programs implemented in Japan to Korea.
Does investment occurring in locations where Takeda has offices serve as a means to connect drug development companies with Takeda?
Sato Ah, that perspective is understandable. However, we don't want to limit external innovation or collaboration to specific places. We are open to innovation happening anywhere, whether it's within a country, involving researchers from startups or universities, or within pharmaceutical companies themselves. We don't fixate on the elements of open innovation. If you look at the COCKPI-T program, it primarily involves academia or some startup collaborations, for the most part.
Takeda's open innovation begins with the possibility of collaborating with anyone, regardless of whether it's a small or large entity. It's all about the potential to work with anyone.
Sato That's correct. I'd like to explain the scope of collaboration within Takeda's established open innovation platform and the background behind it. For example, about 60% of Takeda's clinical pipeline has been developed through collaboration. Currently, there are over 200 ongoing collaboration projects. The aspect of external linkage and partnering seems to be quite substantial, even when compared to other global pharmaceutical companies. Of course, I believe there are various factors contributing to this, but it's also rooted in the company's characteristics. Takeda is dedicated to being a "patient-centered company."
Amidst this, there is a concept of selecting an appropriate modality or treatment approach when a target that can affect patients is discovered. Therefore, there's a belief that Takeda needs modalities or technologies that may not currently exist within the company. From this perspective, opportunities with external partners become even more crucial for Takeda. In selecting partners, the organization's size or geographic location should not be obstacles to achieving these objectives, in my opinion.
Takeda is actively preparing processes and programs to partner with innovators in Korea, regardless of their size. Takeda already has an in-house venture capital (CVC) and is engaged in exchanges with nearly 100 companies. Through these collaborations, Takeda aims to foster these companies, and one of the tools facilitating this is the COCKPI-T program, as mentioned earlier.
Shall we revisit the topic of COCKPI-T? There has been a sense of urgency in Korea that "innovate or perish." Could we describe Takeda's COCKPI-T as broad support in the early drug development process? In fact, based on comments from participants in last year's COCKPI-T program, they appreciate several aspects, such as the absence of unnecessary administrative procedures, the ability to execute budgets to facilitate the proper functioning of research companies, and the access to diverse networks. What does Takeda consider essential in open innovation?
Fujimura We aim to connect external innovators and academic researchers with Takeda's internal experts through the COCKPI-T program. Networking is a vital component, allowing insights into drug development to flow both ways. Maintaining this connection within a large company is crucial.
In addition, even for large pharmaceutical companies, diving into high-risk projects isn't easy. It requires challenging research hypotheses and the acquisition of necessary data. However, the COCKPI-T program allows us to test innovative ideas with the help of external researchers. Takeda provides specialized knowledge to partners to assist them in efficiently commercializing projects. We believe this adds significant value to both Takeda and our external partners.
From Takeda's perspective, companies like Bionsight that participated last year see the potential for Takeda and themselves to derive benefits needed for platform development in drug discovery through patient data and more. There is also the possibility of additional utility. The company recognizes this across various sectors and believes it will be helpful in directions such as fundraising.
Actually, other Japanese pharmaceutical companies are also pursuing similar projects for open innovation. However, there aren't many that extend their efforts to various countries, including Korea. Apart from COCKPI-T, what is Takeda looking for in terms of open innovation in the Asian region, including Korea?
Sato Innovation knows no borders, and the entire world is competing in this arena. Takeda believes that its influence is expanding outward from Shonan Health Innovation Park. In the Asian region, there are not many places where research activities at a global level, akin to Takeda's, are taking place. Takeda holds a unique position, collaborating with external innovators across Asia to jointly develop innovative pharmaceuticals.
In companies with a culture that aggressively demands immediate returns, it can be challenging to pursue various investment projects. Takeda, with over 240 years of history, views this from the perspective of blending scientific curiosity and business acumen within the corporate culture, even if immediate returns might not be achievable tomorrow.
Are there any additional initiatives or projects that Takeda is considering beyond the various ongoing projects it is currently engaged in?
Sato Certainly, we have other programs in development as well. For example, we are working on a new program that goes beyond the COCKPI-T program, targeting more advanced and innovative research in Korea's biotech sector. Considering the efficient commercialization of academic research and the continuous emergence of new biotech companies in Korea's innovation ecosystem, we believe this new program will align well with these developments, featuring new technologies and drug development initiatives.
Last year, Takeda conducted a trial program in Korea with a concept similar to the one mentioned earlier. Unfortunately, due to insufficient promotion, no Korean companies were able to participate. To create a highly visible program within Korea's innovation ecosystem with clear objectives, we are currently engaging in ongoing discussions with key stakeholders in the Korean pharmaceutical industry. We hope to soon reveal the results of these discussions.