Science in the Triangle

North Carolina’s Research Triangle is one of several research hubs in the U.S., Canada and the United Kingdom, where large drugmakers have hooked up with universities in the past year to boost drug discovery and shore up dwindling product lineups.

Pfizer signed a research collaboration with the University of California, San Francisco. Sanofi-Aventis has done the same with Harvard University, UCSF and Stanford University. GlaxoSmithKline and AstraZeneca called on the British University of Manchester. GSK, which is based in London and has its U.S. headquarters in Research Triangle Park, also struck up a strategic partnership with 16 academic institutions in Toronto.

Tom Denny

In the Research Triangle, Novartis went to Duke University.

“We had the right infrastructure,” said Tom Denny, chief operating officer of the Duke Human Vaccine Institute. Duke and Novartis will be working together on pandemic flu vaccines.

Big pharma companies have begun to troll for marketable innovation at universities - places where science and research are a taxpayer- and tuition-funded way of life - after spending increasing amounts of money on their own and other companies’ research and development with meager results.

Consolidation, R&D reorganizations, acquisitions of technologies and whole companies - large drugmakers have tried many strategies in the past decade to rejuvenate aging product lineups and plump up drug development pipelines. But the average number of innovative new medicines that came to market in the U.S. decreased to 22 in the second half of the decade from 28 in the first half, and that despite annually rising R&D expenses.

As blockbuster drugs lose patent protection, remaining sales drop off a cliff.

With R&D productivity stalled and valuable drug patents about to expire, big pharma three years ago began to cut R&D jobs and lay off thousands. The restructuring is still ongoing with a focus on reducing R&D expenses and boosting sales in emerging markets such as Asia and Latin America.

The driver behind the cost cutting is the U.S. “patent cliff.”

By 2015, cheaper generics are projected to replace prescription drugs worth more than $100 billion in U.S. sales. The losses are expected to send sales on a sharp decline that, drawn as a line, looks like a cliff.

After trying everything else with insufficient success, large pharma companies are now betting on universities for inspiration.

Pfizer agreed to pay UCSF $85 million over five years. Under the agreement, researchers from Pfizer and UCSF will work at UCSF labs to turn research into potential biological medicines.

The University of Manchester will receive about $16 million from GSK and AstraZeneca. The investment will establish a translational research center and recruit scientists who will look for novel treatments for inflammatory diseases, such as asthma and rheumatoid arthritis.

The pharma industry has long had relationships with individual university professors. It’s also not uncommon that university medical school faculty work with industry to test new treatments or that an academic research project attracts the interest of pharma companies. What’s new is that big pharma companies are outsourcing R&D to universities.

The seed for the pandemic flu vaccine collaboration grew out of an HIV/AIDS collaboration between Novartis and Duke, Denny said.

The Novartis vaccine manufacturing plant in Holly Springs.

One of the Novartis HIV/AIDS researchers was a Duke alumnus who knew his alma mater was just 30 miles from the state-of-the-art flu vaccine manufacturing plant Novartis opened in 2009 in Holly Springs. (More on the Novartis plant here.)

Flu viruses can change from year to year and vaccines have to be made to match the anticipated changes in the virus. But it’s only safe for researchers to work with highly contagious, maybe even deadly, flu virus strains in a specially equipped biocontainment lab. Duke has such a lab and the ability to test pandemic flu vaccines on animals.The vaccine manufacturing plant, which Novartis build in Holly Springs precisely because of the site’s proximity to RTP and its three anchor universities, has neither.

In case a new flu virus starts spreading around the world and the Centers for Disease Control and Prevention and the World Health Organization call a pandemic emergency, the agreement gains Novartis priority access to the Duke biocontainment lab within 24 hours for a daily fee.

The agreement also allows researchers from Duke and Novartis to collaborate on longer-term projects paid for by grants from the National Institutes of Health. The rights to any technology would be jointly owned by each partner, Denny said.

“This is, what we would hope, a long-term collaboration,” he said.