Transcript Presentation by Anil Goyal
T
ALES FROM
U
NIVERSITY
S
PIN
S
OFF TO ERENEX
P
FIZER
: A
CQUISITION
Anil K. Goyal, Ph.D., CLP Carolina Innovations Seminar Thursday, January 6, 2011
Story Outline
1 2 3 • Preface: Beginning and Conclusion • Chapters: Years 2001 - 2008 • Epilogue: Essential Ps of Serenex 2 © 2010 by A.Goyal All rights reserved.
D
ISCLAIMERS
1) “A
LL PERSONS
,
INCIDENTS AND SITUATIONS PORTRAYED IN THIS PRESENTATION ARE FICTIONAL
. A
NY RESEMBLANCE TO ACTUAL PERSONS
,
INCIDENTS
,
AND SITUATIONS IS COINCIDENTAL AND ACCIDENTAL
.” 2) “I
NDIVIDUAL
R
ESULTS
M
AY
V
ARY
”
© 2010 by A.Goyal All rights reserved.
3
The Beginning and the Culmination
• • • •
June 2001
Spin-Off from Univ. of Virginia (Prof. Tim Haystead) Proteomics Company (Tools/technology) 2 Employees (Prof. Haystead and George Young) Personal loan from George Young • • • • •
April 2008
Company with 2 clinical programs and a drug discovery pipeline ~32 Employees ~$80M invested Acquired by Pfizer Multi-hundred Million $$ exit for investors 4 © 2010 by A.Goyal All rights reserved.
Durham
incubator in RTP 2003 – 2008 Downtown Durham “Clark and Sorrell” (Garage & Auto Repair Shop) Durham Historic Landmark
© 2010 by A.Goyal All rights reserved.
5
Clark & Sorrell 1910 & 2001
1910 2001 © 2010 by A.Goyal All rights reserved.
6
Year 2000-2001: The Beginning
•
Founding Management Team:
– Professor Tim Haystead, at Univ. of Virginia (UVa) – George Young, SVP of Ops, ex-VP Sales, Dyax (living in MA/NC) – Robert Dishman, CEO, ex-Director, Dyax (living in MA) – Susan Dana Jones, SVP of Corp. Development (living in MA) – Lanny Bynum, SVP Finance & Administration • •
Patents:
Technology patents on ATP-Sepharose resin Market Areas: Proteomics (Protein separation and identification), target discovery and toxicity profiling •
Prof. Haystead moves to Duke University
• Serenex (“Out of Serendipity”) established in Durham •
Series A: Metaphase Venture Partners, $2 million
• Pfizer and Pharmacia Evaluate Proteome Mining Technology 7 © 2010 by A.Goyal All rights reserved.
Serenex’s Proteome Mining Technology
Proteome Extract (e.g. Pig tissues) Compound Compound Conc.
Eluted Proteins Proprietary Resin Specific proteome fraction is captured Resin with bound Purine Binding proteins Competitive displacement of proteins off resin © 2010 by A.Goyal All rights reserved.
Protein separation, MS analysis of peptides to identify proteins 8
2002: Series B Funding & New Leadership
•
Apr
Steve Hall joins as VP of R&D Ex- Lilly/Sphinx, Squibb; 20+ yrs. @ pharma
Business Model Shift: Tools
Drug Discovery Platform/ Services & Internal Discovery
•
Aug Series B Financing: $15 Million
Intersouth Partners Lilly Ventures Seaflower Ventures & Metaphase Venture Partners • • •
Sept Oct Nov
Chiron Proteome Mining Deal JnJ Proteome Mining Deal Richard Kent, joins as President and CEO Ex-GSK Chief Medical Officer, 20+yrs @pharma 9 © 2010 by A.Goyal All rights reserved.
2003:
Deals, Internal Discovery & Grow Mgmt Team • • •
May July
GSK discovery services deal New Mgmt Team Members: – Ian Howes as CFO – Anil Goyal as VP of BD
Initiated Internal Drug Discovery Effort:
– Developed strategy – Designed & assembled a focused custom compd library – Screened compound library with Proteome Mining Technology (“Chemoproteomics” screen) • •
Nov Nov
Roche discovery services deal Internal screening resulted in >9 target programs 10 © 2010 by A.Goyal All rights reserved.
2004: Progress on all fronts…but
•
Signed Several Discovery Services deals
– Lilly, Novartis, Aventis, BMS.... (generated minuscule $s) •
Internal Discovery Effort
– Generates hits for >6 target programs •
Raised $8 million in Series B extension
(August) – Intersouth Partners – Takeda Research Investment (TRI) & – Western Technology + other Series B funders •
Market Forces:
– VCs funding only clinical stage companies (or NRDOs..”No Research Development Only” company) – Pharma/Biotech not doing platform deals that give significant upfront $s 11 © 2010 by A.Goyal All rights reserved.
2005: Major Shift in Business Plan
• • • • • Focused internal effort on one target Heat Shock Protein 90 (Hsp90) Inhibitor Small downsizing In-Licensed Clinical Stage Compound: OC-1012 for Oral mucositis (chemotherapy side effect) treatment – Outcome of extensive search (initiated back in mid-2004) for a Phase 1/2 oncology &/or inflammation drug
Raised $30 million in Series C
– Richie Capital (a Hedge Fund) + all Series B funders Business Development: Initiated marketing for Hsp90 program 12 © 2010 by A.Goyal All rights reserved.
2006:
Execute the Plan & Partnering Decision Making • • • •
Management Team Expanded
– Sol Lucas, VP clinical development (ex-GSK), – Lex Smith, VP technical development (Fulcrum, ex-GSK) SNX-1012: Initiated Phase 2 Clinical Trial SNX-2112/5422 (Hsp90 Program): – – – – Continued Aggressive Business Development Effort Biogen Idec acquires Conforma (May 2006) $150M upfront + $100M Milestone
Infinity
&
MedImmune
alliance (Aug 2006) $70M upfront + $430M Milestones + Royalties Deals benchmark value of Hsp90 area –
Received two term sheets to partner the program Raising Series D funding….
13 © 2010 by A.Goyal All rights reserved.
Nov/Dec 2006 Issue
CONFIDENTIAL 14
April 2007: SNX-5422 IND Filing with FDA July 2007: Start First Clinical Trial
© 2010 by A.Goyal All rights reserved.
15
2007: Grow Hsp90 Program, Partnering & Series D
• Industrial Espionage Case. Filed Law Suit against Yunsheng Huang (ex-contract chemist) who stole and funneled IP to a Chinese company • • • Raised $31M ($26M Series D & $5M debt facility) + Cornell Capital Partners, Pearl Street Ventures + + MC Life Science Ventures, Pac-Link Bio Venture Capital, All previous investors
Phase 2 trial of SNX-1012 Moving but Slowly Management Team Addition
– Judy Bryson, VP clinical development (ex-GSK) • Hsp90 Program: Data beyond oncology, in inflammation and CNS diseases builds “Product Pipeline in a Program” • BizDev: Negotiating >5 strategic alliance term sheets & an acquisition offer 16 © 2010 by A.Goyal All rights reserved.
2008: Close an M&A Deal
• Due Diligences Visits: Intensive preparation and filling of the “e-Room” with all corporate/financial documents • • –
Dual Track Negotiations Strategic Partnership for oncology with several large pharmas
–
Acquisition offer(s) (with spin-off of SNX-1012) Mar: Acquisition deal by Pfizer signed
$Multi-hundred Million cash deal (Upfront $ & milestones) • • Apr: Spun-off SNX-1012 into Coserics, LLC
Sept: Programs transitioned to Pfizer sites All employees moved on with severance package + stock sale
© 2010 by A.Goyal All rights reserved.
Deal of Year Award GROWTH Company Of YEAR Award 17
Business Model Evolution
Management Team Evolution
Discovery Services Internal Drug Discovery In-Licensed Clinical Product Product Pipeline (2 Products in Clinic) Tools/ Technology Platform
2001 2002 2003 2004 2005 2006 2007 2008
18 © 2010 by A.Goyal All rights reserved.
Essential Ps
© 2010 by A.Goyal All rights reserved.
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Q
UESTIONS
?
© 2010 by A.Goyal All rights reserved.
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