Jean-Paul Clozel0:33
Thank you very much and hello. I simply wanted to begin by introducing myself: I am a doctor and cardiologist. After a period of academic research and also within a pharmaceutical company, Roche, with three friends we created a company called Actelion, which was founded twelve years ago and is now the largest biotechnology company in Europe, employing 2,500 people including 1,000 researchers. Today I wanted to thank you for this invitation. I wanted to talk about the fundamental relationships between a biotechnology company, the pharmaceutical industry, and academic research. What you must understand above all before we begin is the problem of the pharmaceutical industry. We are an industry that lives off patents, and every 15 years these patents expire. It is as if we asked an industry like Renault every 15 years to throw away all its models, all its car models, all its factories, and start over from scratch. They would have to create new models, build new factories to produce these models, and start over with new car concepts, new engines, new gearboxes, starting from zero. That is what happens in this industry: every 15 years patents expire and we must find new drugs. This explains the importance of research in this industry. When I was asked to think about its relationships with academia or university research, I thought of five main points which obviously do not cover all the problems but are very interesting to discuss and also highlight the problems and opportunities of this industry. The five points I would like to consider are: first, explaining the importance of fundamental research; the importance of intellectual property; the investments which are increasingly important; innovation and the importance of innovation in this industry; and finally, to conclude, I would like to talk about neglected diseases and the thinking that must be done on these diseases.
My first point, and it is absolutely essential for me, is the importance of fundamental research. You need to know that there has been no innovation, no new drug discovered in recent years that was not discovered as a result of a discovery in the fundamental domain. People always talk about the biotechnology industry as applied research, which is obviously the case since we discover and develop drugs for patients. But you must know that without fundamental research, no discovery can be made. This obviously highlights the importance of the role of fundamental research and the role of the university. If we look at the distribution of biotechnology industries in the world, we see that these industries are located near the best universities. The majority of biotechnology industries in the United States are close to Stanford, the University of California in Silicon Valley, and they are close to Harvard and near Boston. In Switzerland they are close to the Swiss Federal Institute of Technology in Zurich or Lausanne. So all these industries are close to discoveries because in fact they use these discoveries for their applications for the patients. I was also very interested this morning by the notion that obviously this is a very competitive industry and that only the elite of research can be useful for this industry. A patent is only given to the person who discovers, to the person who is first in a field. The second has no right to a patent. If a discovery is made two hours or a day after another laboratory, there will be no patent for the second. This therefore reinforces that the university, university research, we need for the biotechnology industry not just any university research but elite research that is concentrated in laboratories that can make the difference. Also very important, and I find fundamental in this university research, is the notion of large projects. Today a project, as you saw with this demonstration of the importance of computing for example in discovery or in research in biology, requires multidisciplinary university research. We need to bring together disciplines, whether bioinformatics, physics, electronics, all these subjects must be brought together in order to make these discoveries. And large projects, and I take the example of the Alzheimer plan, have for me an obvious advantage: they force different disciplines to join forces for a single goal, namely improving treatment but also the follow-up and quality of life of patients. When we see that this plan ranges from basic research understanding the disease, it also includes understanding the fundamental bases of this disease, and this plan goes all the way to treatment, meaning that every day the nurse treats the patient who unfortunately has this terrible disease. We see that through a plan, a project such as this one, we can improve not only research but also we can learn how to discover new drugs, how to test them, and afterwards we can see the impact these drugs have on these patients.
What I wanted to say is that competition is obviously growing. We have seen that countries like China and India are launching into pharmaceutical research. At the beginning they started by making copies: at first China and India focused on generics, but now much basic research is taking place in these countries. It is therefore important for countries like France or Western countries to remain very competitive if they want to have a chance of persisting in this industry. So as I said, without a patent there would be no biotechnology industry today. The cost of manufacturing a drug is a small percentage of the selling price. What a company sells is knowledge: the knowledge it has created by conducting clinical studies to determine the dose, efficacy, and side effects of any drug. It is somewhat comparable to when you buy a disc with a computer program. Obviously it is not the cost of the disc that you pay but the cost of programming and the cost of the programmers who made this program. It is the same thing when you buy a box of tablets: what you pay for is the information work that was required to be able to register and have the right to sell this drug. What is interesting and important to know is that patents are short-lived. A patent in the pharmaceutical industry lasts at most 18 years. And 18 years seems long, but when you know that a minimum of 10 years is needed to develop a pharmaceutical product, out of those 18 years, 10 years are already spent developing without having the right to sell the product. So today at most we have 7 to 8 years to use this new invention. You should know that these costs, the cost of patents, is increasing because today all countries in the world are capable of manufacturing or innovating in the pharmaceutical domain. So it is essential to patent every new invention not only in the country of discovery but everywhere in the world, which increases costs. And we therefore come to this problem: a patent is the reason for having invented the patent system, which is a very old system, obviously to stimulate research. Researchers or industrialists are stimulated to do research because they know that their discovery will be protected and their work will be protected and can therefore be used. But it is obvious that today, all universities, all academic institutes that do research also want to use their inventions and want them as a source of income to be able to do research. This is completely understandable. But at this point, the problem is simple: every new researcher in an institute has a goal, which is to publish, obviously to have his information about his discovery as widely disseminated in the world as possible. But a patent cannot be obtained if a publication was made before the registration of that patent. So today we are in an important dilemma, and in my opinion it is perhaps a brake on research: the dilemma of the researcher in industry and in the university in an academic setting cannot publish his discoveries because this institute or research center will try to obtain a patent. So that is an interesting problem to discuss.
Investments in this industry are increasingly large, and I would like to give a few examples. You need to know that today, when you want to develop a drug, it is not enough to discover it. You will first have to test it in animals, that is, by doing toxicology studies. We obviously try to predict whether we will have a potential for side effects or toxicity. This means testing the product for years in several species. But you will also have to test it in humans. A few years ago you could test this product on a small number of patients, but today the regulatory authorities, rightly, demand to test this product on thousands of patients from different ethnic backgrounds, patients who will take this drug alone but also take this drug with hundreds of other drugs that are commonly prescribed today. 20 to 30% of people over 60 take a drug called statins to lower cholesterol. So if you want to use a product in people over 60, you obviously have to test the product you are developing in combination with these statins. This means that today any development of new products costs roughly 500 to 600 million euros, and very often after spending 500 million euros or 400 million euros, you face a toxicity problem and you have to throw away all that effort. The product is not usable and everything that has been spent is lost. So this explains why more and more pharmaceutical companies are merging, consolidating, buying each other. This means that there are fewer projects, fewer research centers. Before, Glaxo bought SmithKline, and with GlaxoSmithKline the research centers of Glaxo, SmithKline, and Wellcome—there were four or five research centers. Now there is one research center, one head of research. That means there are four or five times fewer projects. It also means there will be fewer possibilities to cooperate with the university because there are fewer large-scale industries. Also what must be considered, and this is the cause of these increases in investments, is the precautionary principle. The precautionary principle, which is used by many countries, tends to favor the absence of risk over efficacy. That is, many countries and many of our politicians refuse any risk. But there is no drug without risk. So we are today faced with the problem that any society, if it wants to benefit from our drugs, will have to accept risk. Unfortunately, when a product works, when a product is effective—take the case of statins for cholesterol or antihypertensive products—these products have considerably changed patient survival. We forget that today in the Western world, life expectancy increases by one year every three years, and the main cause of this improvement in lifespan is the appearance of drugs that have an effect, for example, on atherosclerosis caused by cholesterol, or on arterial hypertension. When I started my medical studies, we saw young patients who had what were called strokes. At that time, these patients had uncontrolled hypertension, had cerebrovascular accidents, and were paralyzed at age 30 or 35. Today these diseases have almost disappeared. Every patient can and should have their blood pressure controlled thanks to all the drugs that have been developed for this type of disease. But you should know that today, drugs such as aspirin would never be authorized to be put on the market because aspirin has side effects. When you give aspirin in high doses, there is a risk of bleeding. When you give aspirin to certain patients, you can have allergic effects, you can even cause vascular accidents in a small but significant number of patients. So it is very important to understand that this precautionary principle must certainly be reevaluated, and countries should try to consider not only the risk but also the potential benefit of new drugs.
As I explained, every 14 or 15 years the biotechnology industry must discover a new drug. Therefore innovation is the key to success. Without an innovative product, there will be no biotechnology industry, and without innovation there is no chance for any pharmaceutical company to survive. Unfortunately, what is very important and what I have written here is that innovation is a means to obtain a new drug to improve patient health, but it should not be the goal. Let me explain. If, for example, today certain antihypertensive products work by blocking a receptor for a hormone called angiotensin. Angiotensin increases blood pressure; it is in too great a quantity in certain hypertensive patients. So what was developed are drugs that block the effects of this hormone. The discovery of these angiotensin antagonists was a true innovation that brought a lot to patients. And after the discovery of these drugs, we saw the development of vaccines that try to immunize patients against angiotensin. For me, these vaccines do not represent a true innovation. Obviously the vaccine against angiotensin is innovative; it is a new way of blocking this hormone. But in fact I do not think this vaccine can bring anything to patients, since we already have drugs that can block this hormone. We already have effective drugs. And for me, this shows the difference between innovation as a goal in itself and innovation which must be a means. I think vaccines should be made to treat or prevent diseases that cannot be treated and that are not already treated by other means. So innovation as a means, not as a goal. It is clear, and I say that all innovation in the pharmaceutical field comes from fundamental research, and I would like to give a few examples. One of the most important advances in the field of cancer has been the recent discovery of so-called anti-angiogenic products, like Avastin, which was discovered by Genentech and later bought by Roche. This new drug is the result of fundamental research that lasted at least 20 years. This research, done in Boston in particular, tried to understand the role of new blood vessels in tumors. Each tumor is composed of many cells that grow very quickly and multiply. And since they multiply very quickly, faster than normal tissues, it has always been observed that these tumors are vascularized, receiving a greater blood supply than normal tissues. This blood supply came from new blood vessels that grew into the tumor, thus they grew faster than normal vessels. These are called neovessels. And researchers got the idea: if we suppressed these neovessels, if we suppressed the growth of these vessels, tumors would no longer receive blood and could no longer grow. And if we combine this obviously with drugs that reduce the size of the tumor, we would have a much more marked effect in combination than when chemotherapy is given alone. It was necessary to discover what factors allowed the growth of these neovessels. That was the purest fundamental research. It was necessary to know how we could block this hormone, and the discovery was made: VEGF is a growth factor for these vessels. And Genentech subsequently, after the discovery of VEGF, developed antibodies that blocked the growth of these vessels and therefore had anti-cancer effects. So you can see that this discovery of a drug was made thanks to fundamental research. And when we see some governments asking their teams doing fundamental research to do applied research, I think that is certainly the most dangerous path and the surest way to dry up the source of innovation. I repeat: fundamental research is essential for the biotechnology industry.
Obviously, all innovation is a source of risk, and I have talked about this. If we want innovative products, we will have to accept a certain level of risk. And all innovation and all the consequences of innovation are difficult to determine beforehand. I believe there is a quote that is essential for me, a quote from Bill Gates who said: we always underestimate the difficulty of putting into operation, of making functional, and we always underestimate the impact that an innovation will have on everyday life. I will give a few examples. When I first saw those small, smooth devices and those small players called MP3 that allow condensed information in a small device, I had the impression that it was a gadget that would be of little use. But when we see today everything that has been done, down to telephones including these possibilities, when we see the iPod, the iPad, the dissemination of information that can be done thanks to these new means, we see today how no one could have predicted the consequences of that discovery. And that is what I mean: the interest of fundamental research and the necessity to understand that we cannot direct this research; we cannot predict what the consequences will be. What we must do is do this research and especially not try to tell researchers: you are going to find something innovative and you are going to find something that will have such and such use. There must be fundamental research, there must be applied research, and what is important is this relationship and interaction between the two types of research. This leads to the problem of funding this innovation. And here too, I think the problem of patents, the problem of how this innovation should be paid for, only by published university research, or should industry participate in financing this innovation? That is also an interesting problem to discuss. And finally, I would end this presentation by saying that economic factors, cultural factors, and political factors mean that unfortunately many diseases today are neglected. I would like to discuss these problems of these diseases because they are serious problems that can have important public repercussions. Infectious diseases. I know well Professor Menard, who at one time was the director of public health in France. When I spoke with him while he was director of public health, he always told me that his main problem was infectious diseases. And we saw with the appearance of swine flu, avian flu, the possibility of having new diseases that from one day to the next could appear and contaminate millions of patients. Fortunately, the severity was less than feared, but one day it is possible that a virus like the Spanish flu virus of 1918, a new virus, appears and has very serious global repercussions. We have recently seen that bacteria from India have become resistant to all antibiotics. This means we risk returning to an era without antibiotics, where a simple wound could kill anyone because there was no way to cure it. So these infectious diseases must have their research. Today, most large biotechnology companies have stopped research on new antibiotics, simply because economically, and this is understandable, new antibiotics have low prices because penicillin has existed for over 50 or 60 years. Reference prices are those of old drugs, so it is economically impossible to make a profit on research that will cost hundreds of millions of euros for antibiotics that will be paid at prices incompatible with economic logic. So for infectious diseases, research must be done. For diseases of certain populations, I take the case of thalassemia and sickle cell disease. These are diseases that affect a significant number of patients, but often these patients are in economically disadvantaged areas and cannot pay for innovative drugs. This explains why in some areas there is no research. Childhood diseases: today, it is not so much the pharmaceutical industry as any government or any regulatory authority authorizing a drug in children that poses a major political problem. If a side effect appears in a child, the public cannot accept it. If a journalist publishes that a child died due to a side effect of a new antibiotic or new product, that will immediately create a major problem, not only for the pharmaceutical industry but also for the politicians and the people in the audit and registration bodies who authorized the product. This explains why many products are not tested in children or are not approved for pediatric use. Psychiatric diseases: it is clear that today psychiatric diseases, neuropsychiatry, is one of the fields with the greatest needs. There are figures saying that 1% of the population suffers from schizophrenia in a more or less severe form. However, research in the field of psychiatry is disappearing from the pharmaceutical industry. The reason is simple: a drug that affects psychiatric diseases will by definition have significant side effects. Take the example of depression. A depressed patient tends to stay home, not be active, avoid contact with those around them. If you give an antidepressant that improves their mood, the patient will be transformed; they will start to act and interact with the world. But what can happen is if the drug is a little too strong, the patient may go buy a new car, a new house, start wanting a different life. And if they buy a car and cannot pay for it, they may sue the pharmaceutical company because they bought the car because of the drug. The pharmaceutical company would be responsible for the patient buying that car. And that is what happened in the United States, where companies like Glaxo were sued by thousands of patients because those patients changed their lifestyle and the way they consumed. This explains why industries are terrified: how can we develop a drug that will change how a patient acts, thinks, and interacts with society, when needs are obviously increasing considerably? Finally, and this is why I think there is a very important consideration—and I believe the College de France is doing this by asking Professor Zerhouni, who was the head of the NIH, to give a course—it is the notion of public health that is essential. It is important that states, industry, and research try to think about what will be the best use of funds for the notion of public health to improve health. That's it. I hope I have given you a small overview; obviously this is a somewhat superficial look at the importance of fundamental and university research for biotechnology. And I believe my conclusion is simple: in the years to come, and perhaps this course will stimulate some initiatives, we will have to reinvent the way the industry or biotechnology collaborates with university research. I unfortunately do not have a solution, but I have simply been able to highlight a few problems.