What are the various internal organization structures for pharmaceutical / biotechnology companies in regards to companion diagnostics / precision medicine?
Based on McKinsey's report, majority of biomarker organizations within top pharmaceutical companies are structured ad hoc, resulting in patch work organizations. These are heavily dependent on the pharmaceutical company's overall R&D structure. I have also provided information regarding the organizational structure of 4 prominent pharmaceutical companies in precision medicine, together with key executives who are likely to weigh in on purchase or deal decisions.
Below you will find a deep dive of my findings.
In its report Personalized Medicine published in 2013, the latest and only version, McKinsey&Company included a table (Fig.2, p.15) regarding the various organizational structures commonly used among biomarker discovery organizations working on personalized medicine.
■ Disease area (DA) focus
• Cross-DA : 10% of top 20 pharmaceutical companies
• Hybrid: 20% of top 20 pharma companies
• Within DA: 70% of top 20 pharma companies
■ Biomarker Leader reporting to Research vs Development
• In Research Organization: 40% of top 20 pharmaceutical companies
• Hybrid: 40% of top 20 pharma companies
• In Development Organization: 20% of top 20 pharma companies
■ Level within Organization
• High in Organization (one level below head if R&D): 20% of top 20 pharmaceutical companies
• Mid-level (2 levels below head of R&D): 20% of top 20 pharma companies
• Low in Organization (3 or more levels below head of R&D): 60% of top 20 pharma companies
McKinsey&Co reported that "With the exception of 3 to 4 companies, the biomarker organizations within most pharmacos have been built in an ad-hoc manner, typically resulting in patch-work organizations with several organizational challenges." The firm also noted that the structure of the biomarker organization is highly dependent on the overall R&D structure of the pharmaceutical company.
The following leaders in personalized medicine from certain pharmaceutical companies were interviewed in the report:
• Mara Aspinall, President and CEO of Ventana Medical Systems and Global Head of Roche Tissue Diagnostics
• Stephen Little, Vice President of Personalized Healthcare for Qiagen
• Peter Maag, CEO of XDx and former President of Novartis Dx division
I depended on the Powerpoint provided to research pharmaceutical companies, excluding diagnostic companies or lab/contract research organizations (CROs), prominent in personalized medicine. I chose the following four pharmaceutical companies: Johnson & Johnson, Roche, Novartis, and Regeneron.
While it is unclear from our gathered sources who are involved directly in sales/deals, I chose several executives per company who are most likely to influence purchasing and deal decisions.
■ Johnson & Johnson
While J&J had a dedicated LinkedIn page for its Medical business segment, it did not give an executive organizational structure (and listed more than 26,000 employees in no particular order). Therefore, I used another source to research its organizational structure. The most informative I found is The Official Board, which listed updated boards of company organizations.
Here is Johnson & Johnson's organizational structure, updated as of December 2017. The resource reports that it has 83 subsidiaries and 595 executives at last count.
While the link to J&J's Pharma Research and Development segment is dead, I found its subsidiary's Janssen R&D leadership team. Janssen is specifically working on personalized medicine across several therapeutic areas including cardiovascular, oncology, and neuroscience among others. Key executives include:
• Dr. William Hait, Global Head of Research & Development
• Stef Heylen, Chief Operating Officer of Janssen R&D
• Jay Siegel, Chief Biotechnology Officer and Head of Scientific Strategy and Policy, Johnson & Johnson
Here is Roche's organizational structure, updated as of December 2017. The resource reports that it has 37 subsidiaries and 238 executives at last count.
Roche currently lists 3 pharma R&D units: Pharma Research and Early Development (pRED), Genentech Research and Early Development (gRED), and Chugai in Japan. It also has 4 Diagnostics R&D units: Professional Diagnostics, Molecular Diagnostics, Tissue Diagnostics, and Diabetes Care. I did not find any listed executives for these units, however I found a key contact for precision medicine:
• Dr. William Pao, Head of Oncology Discovery & Translational Area research unit
Here is Novartis' organizational structure, updated as of October 2017. The resource reports that it has 60 subsidiaries and 493 executives at last count.
I found this 2017 interview of Annie Martin, Novartis' Global Head of Precision Medicine in Oncology. However, I did not find her in Novartis' Oncology leadership team itself, suggesting her department might be mid- or low level within the organization.
• Annie Martin, Novartis' Global Head of Precision Medicine in Oncology
Here is Regeneron's organizational structure, updated as of September 2017. The resource reports that it has 1 subsidiary and 63 executives at last count.
I found this 2016 press release highlighting the collaboration of Regeneron Genetics Center and Geisinger Health System centered on precision medicine approach.
Regeneron Genetics Center's leadership team is publicly listed, with the following possible key executives for sales/deal:
• Dr. Andrew Murphy, SVP of Research
• Dr. Nicholas Papadopoulos, SVP of R&D Operations
• Robert Terifay, EVP, Commercial
To wrap it up, McKinsey reported that majority of biomarker organizations are structured ad hoc within top pharmaceutical companies. Current organizational data from prominent pharmaceutical companies researched above seem to bear out this observation, listing several R&D units with no dedicated key executive positions working on precision medicine. This may be due to these departments working 3 or more levels below R&D heads, such as reported by McKinsey in 2013.
Also, I have provided information regarding the organizational structure of 4 prominent pharmaceutical companies in precision medicine, namely Johnson & Johnson, Roche, Novartis and Regeneron. These are prepared for you above together with key executives likely to be involved in purchase or deal decisions.