mc2 dr curtis dobson – 11 th april 2006 research outside the university environment dr curtis...
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MC2Dr Curtis Dobson – 11thApril 2006
Research outside the University environment
Dr Curtis Dobson
Ai2 Ltd
just
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MC2Dr Curtis Dobson – 11thApril 2006
1. University issues license direct to industry
2. Start up a company, which pays University for IP (via a long term loan and equity position), and develops, markets and licenses the technology to third parties
Depends on:
a. Nature of technology + how well developed it isb. Market size, hurdles and competitorsc. Career goals of inventor
Options for taking technology to market
MC2Dr Curtis Dobson – 11thApril 2006
UNIVERSITY
INDUSTRY
Spin Out Company
CONSUMER
License
License
Spin Out Company
My focus this morning
MC2Dr Curtis Dobson – 11thApril 2006
Start Up Check List
• Intellectual Property which is:
Secret Novel Inventive
Offers a potential solution to a problem for which there currently is no solution
Problem is sufficiently widespread / serious that substantial income (> $50m pa) could be made by providing a solution
Many such problems can be tackled by same technology (technology platform)
i.e. patentable
Out-license
Start Up
MC2Dr Curtis Dobson – 11thApril 2006
Start Up Check List – Phase 1
• In phase 1 (approx 6-9 months) you should aim to raise sufficient funding to:
Incorporate company, devise financial procedures, open bank account, draw up Articles of Association, appoint directors
Generate proof of principle data
Where appropriate build a prototype
Investigate the markets and aim to develop links with major companies operating in that area
File provisional patent applications
MC2Dr Curtis Dobson – 11thApril 2006
Start Up Check List – Phase 2
In phase 2 (18 months) you should aim to raise sufficient funding to:
Find premises
Devise detailed business plan
Maintain and expand patent portfolio
Assemble world-class management team, and (if appropriate) scientific advisory board
Carry out research and development work
MC2Dr Curtis Dobson – 11thApril 2006
Timing Phase 1 Phase 2 Phase 3 Phase 4
(6-9 months) (+ 18 months) (+ 12 months)Founders and Early Investors Exit Goal (5/7 yrs from start) via eg. a trade sale, IPO
Research Institution and Associated Involvement
(Reducing Risk) Dedicated Professional Management
(Building Value)
Ai2 incorp. (Apr 05)
XX
Ai2 (Jul 05)
Proof of Principle
Prototyping
Patenting
Incorporation
Shareholders agreement
Business Planning
Forming Partnerships
Finance from Business Angels/ VCs / University Challenge
Consultancy
Incubation Premises
Early Trading
Financing from Business Angels, consortia and funds.
Board reconstruction
Service contracts
Volume sales and profits
Independent business premises.
More financing (VCs, investment banks, Private Equity Firms)
What to expect….
Ai2 (Apr 06)
X
MC2Dr Curtis Dobson – 11thApril 2006
Senior Management
Chairman
Chief Executive Officer (CEO)
Board of Directors
Chief Scientific / Technical Officer (CSO / CTO)
Panel of Scientific Advisors
Company Secretary
MC2Dr Curtis Dobson – 11thApril 2006
How does the company keep operating until it is profitable?
Government / Charity: Wellcome UTA, SBRI, FRAMEWORK 6 etc.
Investment, including Venture Capital Funds
• Will provide funding in return for shares in the company
• Investment provided in rounds – different VCs specialise in different levels of funding / risk
• Investment increases as company grows / nears market (e.g. £100-250k for “seed” funding, through to many tens of millions in some series C / Series D
• VC’s initially salesmen… …but ultimately buyers
MC2Dr Curtis Dobson – 11thApril 2006
Benefits for the technology / research:
1. Access to venture capital investment
2. Access to cutting-edge incubator laboratories (for a fee)
3. All aspects of business development handled by small specialist team, rather than large generalist University IP department
4. Longer term access to investment capital via stock market flotation
5. Possibility of trade sale of company
MC2Dr Curtis Dobson – 11thApril 2006
1. Research areas which are too commercially focused for academia, though too risky / early stage for large companies to explore are not “frozen”
2. Converts IP “raw materials” into a lower risk package which is attractive to larger companies
3. Financial / economic – creates jobs and clusters of small businesses in similar areas, along with jobs in support companies
4. Attracts larger companies to a region
Benefits to industry / society:
MC2Dr Curtis Dobson – 11thApril 2006
1. Academic research increasingly “iterative”. Start ups offer opportunity to carry out heavy lifting to put your idea into practice, and make a real difference
2. New career possibilities - small spin out companies / IP law / business
3. Maintain academic research programme, yet benefit from SME experience
4. Better paid / better resourced
5. Equity position, which can eventually prove highly valuable
6. Networking
7. Profile
Benefits for the researcher:
MC2Dr Curtis Dobson – 11thApril 2006
CAVEAT - don’t do it if these issues worry you:
• Less time for research, especially “blue sky” research
• Substantial time spent on administration, business plans, financial systems, legal documentation, fundraising etc etc.
• Bar on presentation / publication until patents filed
• Need to prioritise applications which are closest to market
• Less job security (relative to tenured academic role at least)
MC2Dr Curtis Dobson – 11thApril 2006
How does it compare with traditional industrial research:
• More time for academic research
• Administrative procedures may be less cumbersome
• Technologies may be riskier, and more cutting edge
• Closer ties to Universities
• Culture more akin to academia
• Organisations leaner and more fleet of foot – higher productivity
MC2Dr Curtis Dobson – 11thApril 2006
• Colleagues find that a human gene (APOE) determines the outcome of a broad range of viral infections • My discovery of a region of the protein (apoE) coded for by the gene with antiviral activity against herpesviruses and HIV
My Intellectual Property
MC2Dr Curtis Dobson – 11thApril 2006
HIV
Lipoproteins resemble virus particles, and occupy the same cell biological niche
Human Serum Lipoprotein
Lipoproteins and virusesevolutionary convergence?
MC2Dr Curtis Dobson – 11thApril 2006
• 1.6 million individuals infected with HIV in US, Western Europe and Japan
• 14,000 new cases per day globally
• Market for anti-HIV chemotherapy $5.1b in 2002, and growing
• HIV strains are becoming resistant to current therapies
Need for new anti-HIV medicines
MC2Dr Curtis Dobson – 11thApril 2006
HIV Replication Cycle
nucleusvirus
virus
virus virus
HUMANCELL
virus virus
virus
attachment
fusion
replicationreconstruction
HUMAN CELL DESTROYED
1 / 21 / 233virus
virus
virus
5 ?5 ?44
Existing Therapeutic Targets (1 to 4)
MC2Dr Curtis Dobson – 11thApril 2006
• Genetics Innovation Network (University of Manchester / Liverpool) - £40k
• New peptides
• Other human protein regions with similar activity ?
GIN – unique early stage funding – NW England.
MC2Dr Curtis Dobson – 11thApril 2006
• Discovery of second apolipoprotein region with activity
• Invention of two families of compounds relating to both original and new protein region, with distinct activity profiles
• Activity against all strains of HIV tested, via novel mechanism
Outcome of GIN programme (late 2003)
MC2Dr Curtis Dobson – 11thApril 2006
• Many peptides from non-mammalian sources / non-natural sequences have antibacterial activity
• Features similar to our human apoE peptides
• Commercially more likely to succeed quickly:
• No need for peptide to enter body
• Medical devices in particular probe to infection – often biocompatible, but without capacity to fight infection
Antibacterial activity?
MC2Dr Curtis Dobson – 11thApril 2006
Coating to Prevent Medical Device Related Infection
Materials treated with (fluorescent) peptide,
and thoroughly washed
Untreated Treated
MC2Dr Curtis Dobson – 11thApril 2006
UntreatedUntreated TreatedTreated
Peptide-treated medical device materials resistant to Pseudomonas infection
MC2Dr Curtis Dobson – 11thApril 2006
Discovery of specific regions of human proteins rich in anti-infective activity
Proven platform technology to provide novel and safe anti-infective coatings and therapeutics
Unique opportunity to target unmet needs in high-growth and high-value markets,
with several opportunities for early revenue generation
MC2Dr Curtis Dobson – 11thApril 2006
Ai2 aims to become a significant player in the large and growing anti-infectives market
Core Business is identification of unmet anti-infective needs in the healthcare market, and application of Ai2’s proven platform technology to address those needs
Current Focus on unmet biocompatibility and infection needs at the interface between biology and polymer surfaces (catheters, IV-equipment and related medical devices). Clear early revenue opportunities identified and currently being pursued
Management Team of international calibre, includes former senior executives from blue chip medical device and pharmaceutical companies in UK and US
Awards Most exciting biotechnology company in NW England
Overview
MC2Dr Curtis Dobson – 11thApril 2006
North West Biotechnology North West Biotechnology Project of the Year 2004 Project of the Year 2004
North West North West Biotechnology Start up Biotechnology Start up of the Year 2005of the Year 2005
MC2Dr Curtis Dobson – 11thApril 2006
Product Pipeline – Key Product Product Pipeline – Key Product AreasAreas
Novel Therapeutics
Long termLarge Market
Novel prophylactics
Building on antibacterial coating
technology
Medical Device coatings
Partners in place
Higher Risk Lower risk
MC2Dr Curtis Dobson – 11thApril 2006
• Continued need to secure investment until company reaches profitability– Expense of patent costs– Company increasingly must “pay its way”. Lab and office space, payroll, legal expenses– Variability in investment climate
• Risk of competitor technologies emerging
• Technical hurdles, particularly for long term therapeutic applications
Challenges
MC2Dr Curtis Dobson – 11thApril 2006
• University of Manchester – generous IP policy
• UMIP – unique resource– Packaged IP– Wide networks– Dedicated business development personnel
• MTF venture capital fund – Tough criteria– Solid investment experience, as we negotiate with VC’s completely outside the University
• Currently signs of improved investment climate
Opportunities