Creating Value from IP in the HealthTech

Gillian Woodhouse

Today

How to protect intellectual property

And how to commercialize it

Australia is a creative and innovative community – strong science and technology, good IP protection

Healthcare:Bionic earMiniture ECGGene shearsCervical cancer screening Aids testMulti focal contact lensPlastic spectacle lensVaccines – cancer..Flu treatmentPacemakerUltrasoundPolymersBiomarkers

Convergence in the Life Sciences

drugs - diagnostics – devices – IT

Market drivers: safer, more effective treatments, rise in consumer health

Economic drivers: aging population, rising cost of healthcare, cost benefits of remote monitoring and treatment, driving efficiencies throughout health

Technological drivers: genomics, proteomics, stem cell research, nanotechnology, discovery, improved target identification, genetic risk profiling, pharmacogenomics, miniturisation, informatics,

Apple - led innovation through convergence

Sony – camera sensors

Qualcom

Toshiba

Bosch – MEMS sensors

Corning – glass

ARM - cpu

Samsung Amperex - batteryTexas

Instruments

SkyworksSK Hynix -DRAM, flash memory

Micron

Broadcom

What’s in an Apple?World Class Technologies

ARM – Business Model

Global leader in the development of Semiconductor IP R&D outsourcing for semiconductor companies

Innovative business model yields high marginsUpfront license fee – flexible licensingOngoing royalties –% chip price

95% mobile phone market, most of the wearable market.

Technology incorporated into 12 billion chips in 2014.

ARM

Performance overview

2014 2013 Change

Revenue ($) 1.3b 1.1b +16%

Licensing revenue ($) 500 380 +30%

Royalty revenue ($) 540 500 +8%

Operating margin 50% 49%

Earnings per share (p) 24 21 +17%

Dividend (p) 7.0 5.7 +23%

Apple – software platforms

Apple Healthkit – Researchkit for developers

Google Fit

Integrates sensors into wearables so that remote real-time data can be collected allowing better diagnosis and more immediate personalized treatment.

13 new healthcare apps for APPLE WATCH have been announced in the last week, including Dexcom app for blood glucose monitoring

Due Diligence

Ownership

Corporate Structure

Laboratory Record Keeping

Electronic Documentation

Confidentiality Agreements

Patent filings

Assignment documents

Competitors

Infringement Audit

Licenses and Agreements

Trademarks

Copyright

Technology Know How

Commercialising IP – Understand customers, the market and the

your technology

SWOT - what makes your IP different.

Understand market opportunities, opportunities for technological development, market and technology competition,

Develop the IP to a commercially viable demonstrator(s),

IP provides a barrier to entry, how strong is it and what are the other barriers?

Understand the resources and capabilities required to access gain market entry – partner to fill holes.

Develop a business strategy

Work closely with customers all the way

Identify resources and capabilities required for commercialisation

Interdisciplinary management skills:

Technological

Operational

Clinical

Marketing

Finance

Regulatory

Importance of Customers

Put the same amount of effort in developing a business strategy as you have done into protecting your Intellectual Property.

Plan to get to market early - with a plan to develop your IP. Innovation is the best protection for Intellectual Property.

Customers help you improve your product and build your reputation - talk to your potential customers before as well as after product is on market.

Make partnering, negotiations and licensing a core competencies.

Partner to gain resources and capabilities required for commercialisation – including accessing customers

Ensure IP is secure and well understood through proper due diligence before partnering

Firms that seek convergence at R and D level may ultimately create higher market value

Have clear strategic goals prior to partnering based on market and technology