Bertrand, having been with Debiopharm for nearly 30 years, you have witnessed most of its history since its inception in 1979. Could you tell us more about the founding vision of Dr. Mauvernay?
Debiopharm's foundation was significantly influenced by the prevailing pharmaceutical industry practices. At the time, our founder Dr. Mauvernay observed that most pharma companies focused solely on internal research and development, often abandoning promising therapeutic products prematurely. He envisioned Debiopharm as a solution to this issue, not by engaging in initial research but by concentrating on the development phase.
This approach led to the successful development of blockbusters like oxaliplatin for colorectal cancer. Dr. Mauvernay’s strategy involved reviving failed or underexplored products by integrating innovative technologies. For example, he transformed triptorelin, initially perceived as a niche product, into a more broadly applicable therapy through advanced delivery techniques. This vision of leveraging external discovery research and focusing on development was groundbreaking and set the foundation for Debiopharm's unique approach in the pharmaceutical industry.
Can you explain how Debiopharm bridges the gap between scientific discovery and patient reach, which is one of your stated objectives?
Our primary goal is to forge connections between groundbreaking research and clinical application, ultimately benefiting patients worldwide. This objective is achieved through a variety of collaborative efforts. We engage in licensing agreements, partner with third-party companies, and actively participate in global crowdsourcing of innovation.
Our IDEAL program is a testament to this, where we establish specific collaborations with academic groups. Over time, our focus has shifted from solely clinical development to embracing more comprehensive collaborations, necessitating a blend of internal expertise and external innovation. An essential aspect of our strategy is 'linker technology,' including Multilinkfor ADC and Nanolink for nanoparticle targeting. These technologies enable us to create global connections and bring innovative treatments from the lab to the clinic, a process integral to our mission of bridging scientific discovery and patient care.
In your global operations, how do you ensure diverse innovation sourcing? Could you share some statistics to illustrate this diversity?
Debiopharm's global outreach is extensive, and we actively seek opportunities for collaboration worldwide. Our strategy involves a broad review of potential programs, with an average of 500 reviewed annually.
For instance, in 2014, our innovation sourcing was quite diverse: 40% from the US, 40% from Europe, and 15% from Asia, primarily Japan. However, by 2023, this distribution shifted dramatically, reflecting changes in global innovation trends. We observed a significant decrease in European innovation, with only 15% contribution, while Asia, especially China, rose to 40%. These figures illustrate the evolving landscape of pharmaceutical innovation and our commitment to tapping into diverse sources worldwide.
Which developments in your current pipeline would you highlight as most interesting?
Our focus on oncology and infectious diseases stems from the need to address critical health challenges while maintaining focus as a relatively small company. Oncology, being our main focus, is driven by its immense potential for impactful treatments. Despite antibiotics not being immediately profitable, we prioritize them due to the rising concern of antibiotic resistance. Our work targets three of the nine most critical bugs identified by WHO, including Staphylococcus aureus, Acinetobacter, and Gonorrhea.
Our oncology pipeline is advancing from care to cure, with a focus on innovative precision oncology medicines along with sustained release formulations improving patient quality of life. The most exciting developments are in targeted delivery, such as radioligand therapy, DNA damage repair inhibitors and antibody-drug conjugates, alongside explorations in nano-targeting. We are also advancing in small molecule treatments, particularly in DNA damage response with promising programs like WE1, which shows best-in-class potential.
Could you elaborate on the potential of Xevinapant and its impact on cancer treatment?
Xevinapant, a highly advanced program in our pipeline, was recently outlicensed to Merck Germany. It is currently in phase 3 trials for head and neck cancer and is anticipated to reach the market by 2025. This program has the potential to be a blockbuster, with projections of substantial market impact, according Bank of America, peak sale could reach 2 bn $. Its success is a testament to our commitment to not just offering treatment for cancer patients but aiming for a cure. The promising data from phase 2 trials indicate its efficacy, with over 50% of treated patients considered cured compared to less than 25% in the control group. This aligns with our vision that a significant portion of cancers will be curable in the next 20 years, thanks to advancements like immuno-oncology and new oncology targets.
Turning to Debiopharm's investment in digital health and startups, could you explain the rationale and objectives behind these?
Our investment in digital health and startups is strategic, aimed at accelerating and improving drug development. We focus not just on innovation but on the acceleration of innovation. Investments in companies like IKTOS, utilizing generative AI in medicinal chemistry, and Novadiscovery, conducting in silico trials, exemplify our approach. These technologies enable us to anticipate and simulate clinical study outcomes, aiming to reduce the typical drug development timeline from over 10 years to around 8 years. We invest in technologies like AI and digital tools to revolutionize drug development, enhancing our efficiency and effectiveness. For example, our current phase 1B trials use a synthetic arm, a novel approach in our field. We also focus on biomarker development, collaborating with companies like Genialis, Altis Lab, and Nuclei. These investments reflect our commitment to advance and adopt new technologies to expedite bringing effective treatments to patients.
In light of the increasing intersection of data and life sciences, how do you see the future of drug development evolving with companies like Google entering the health sector?
The future of drug development is poised for a significant transformation with the convergence of data and pharmaceuticals. We observe a trend where digital companies like Google are increasingly moving towards health, indicating a potential shift where data companies could become key players in drug development. This evolution suggests that the future pharmaceutical landscape might be dominated by data-driven approaches.
Debiopharm is actively considering these trends to stay ahead in this evolving space. We recognize the opportunity for data companies to play a major role in the future of pharma, underlining the importance of integrating advanced data analytics and digital technologies in our strategies. This shift aligns with our ongoing efforts to leverage digital tools and AI to enhance drug development processes.
Considering the significant decrease in Europe's contribution to global innovation in the last decade, what are your thoughts on the reasons behind this decline? How do you envision Debiopharm’s initiatives contributing to a resurgence of innovation in Switzerland and Europe as a whole?
The decline in Europe's innovation, particularly in Switzerland, can be attributed to the cultural hesitance in creating strong links between academic research and public companies. Unlike the US and China, where there is significant interaction and public support for such collaborations, Europe and Switzerland have maintained a more rigid separation between academia and industry. However, there are signs of change in countries like France.
Unfortunately, in Switzerland, progress is slow, especially in supporting startups in sectors requiring substantial investment like biotech. This cautious approach is contrary to global trends where economies actively support startups as innovation drivers. The pharma industry in Europe, including key players like Bayer, is increasingly viewing the US as a primary market due to its unified market and supportive regulatory environment, in contrast to the complex, country-specific challenges in Europe.
Debiopharm is actively working to change this scenario. We are part of various networks that facilitate the connection between academia and industry, exemplified by our IDEAL initiative. This initiative focuses on financing early research activities in universities, prioritizing data generation over protracted contract negotiations. We believe in beginning work first and discussing contracts later, to foster productive collaborations. Additionally, we are expanding our efforts internationally. From my experiences visiting over 60 innovation hubs globally, I have learned that a successful hub requires a synergy of major companies, strong research, hospitals, venture capital, and a community that collectively creates value. It is crucial for Europe, and particularly Switzerland, where pharma constitutes over 50% of exports, to change mindsets and adapt to these evolving global trends.
