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Exclusive Life Science Feature It would be easier if this were the first time AZ attempted go into asthma, with a single compound to capture a larger share an R&D; turnaround. Like most of Big Pharma, however, the of the total population and market — which we now believe is the company had already gone through various reconstructions wrong thing to do. Now we stratify the asthma into, for example, before its new CEO, Pascal Soriot, arrived in March 2012 — the neutrophilic- or eosinophilic- driven disease. We are focusing our previous one in 2010 under then R&D; chief programs on the right patient population based Martin Mackay and other management since on sound science and the population that will departed. Many of Mackay's moves headed in best respond to our medicine, for maximum the same direction as the current push toward efficacy and the best possible risk/benefit." clearer therapeutic focus and science-driven The same assessment led the group to identify portfolios; the strategic mantra, "winning with the areas where it was strongest scientifically, science" originated with Mackay's reforms. where its approach was innovative, and where But the new structure under Soriot further it was ahead of the competition, according to simplifies the therapeutic focus and managePangalos. Subsequent decisions to narrow AZ's ment structure, reinforces an emphasis on therapeutic-area focus, retaining current areas tapping scientific expertise, and places major and dropping others, stemmed from those bets-to-win on science-driven models for its findings. research units. "Picking the right molecules, with the right Today, three R&D; executives report directly properties for the right patient population" to the CEO, with hands-on responsibility equals an "increased probability of success" for small-molecule and biologics discovery in the disease areas where the company is and clinical development. The commost competitive — in AZ's equation. pany's "core" therapy areas, where "I am encouraging my scientists to work with Pangalos says strong support from it focuses the weight of its internal new and different partners across sectors, to the new top management has helped research and business development, speed the translation of good science into his group put those terms into action. include respiratory, inflammation, innovative medicines." "Pascal has been pushing the new and autoimmunity; cardiovascular agenda forward, and it's a continuand metabolic disease; and oncol- Menelas Pangalos, executive VP of innovative medicines, AZ ation of the journey we've been on. ogy. The company is also engaged One of the core goals of the journey in neuroscience and infectious disis building our scientific reputation. ease research. Menelas Pangalos, executive VP of innovative We have been pushing our organization to focus on deeper scienmedicines, is one of the three direct-to-CEO reports, responsible tific understanding of molecular mechanisms, disease pathophysifor small-molecule discovery and early-stage (through Phase 2) ology, and disease heterogeneity, and our corporate strategy is development. To feed the late-stage pipeline, Pangalos works now perfectly aligned with our scientific focus." shoulder-to-shoulder with Bahija Jallal, EVP of AZ's biologics BRIDGE OVER THE LARGE-SMALL MOLECULE DIVIDE division, MedImmune. Physical relocation for the sake of co-location will occupy much CAN SCIENCE LEAD TO SUCCESS? of AZ's resources for some time to come. Construction of a £330 The Innovative Medicines organization was already responsible million ($500 million) R&D; center in Cambridge, England, along for generating the Phase 2 pipeline in small molecules, but its with other site expansions and closings, has generated most of the range has now expanded to include the organization running headlines around the company's "turnaround." AZ is consolidatclinical development through that stage. When Pangalos arrived ing its R&D; at Cambridge and two other centers in Gaithersburg, at the company in 2010, his group conducted an early pipeline MD, and Mölndal near Gothenburg, Sweden. assessment, reviewing five years of data on the selection of candiPlans alone have not satisfied the company's critics who doubt dates from preclinical to Phase 2 with the goal of improving the the R&D; restructuring, accompanied by thousands of layoffs and decision making. "One of the key findings was that we had to do expansion in emerging markets, will rescue its pipeline and coma much better job of understanding the basic biology of the target mercial portfolio. But AZ has momentum in early discovery and and the mechanism and its role in the disease that we're trying to development and seems determined to lay the intellectual fountreat," Pangalos says. dation for a new kind of pharma R&D; built on working relationHe offers an example. "Historically, a company might decide to ships among its constituents. 32 LifeScienceLeader.com September 2013