Transcript Slide 1

Much Ado About Nano:
The Inve$tment Climate for NanoMedTech Ventures
Omar Amirana, MD
Oxford Bioscience Partners
MassMEDIC
April 10, 2007
[email protected]
What is nanotechnology?
Nanotechnology is the understanding and control of matter
at dimensions of roughly 1 to 100 nanometers
• Unique phenomena enable novel applications
• Nanotechnology involves imaging, measuring,
modeling, and manipulating matter at this scale
A nanometer is one-billionth of a meter.
• Typical C-C bond lengths are in the range .12-.15 nm
• DNA double-helix has a diameter around 2 nm
• The smallest cellular life forms, the bacteria of the
genus Mycoplasma, are around 200 nm in length.
Unique behavior: physical, chemical, and biological properties of
nanoscale materials can be exploited for a large variety of applications
Source: www.nano.gov
Source: www.nano.gov
Longer term, nanomedical opportunities
are mystifying and intoxicating…
Respirocytes
Implantable Nano Power Sources
Nanowires convert
mechanical energy into
current. They could be
implanted in the body, and,
driven by muscle
contractions, blood flow, or
external vibrations
transmitted through tissue.
They could power
implantable sensors.
Vascular System and Hematology Police
USPTO & Nano: A lot of cool
stuff looking to solve problems
Results of Search in US Patent Collection db for: nano: 12473 patents.
Hits 1 through 15 out of 12473
PAT. NO.
Title
7,200,493
Method for screening crystallization or amorphous stage conditions for molecules
7,200,318
Near infra-red composite polymer-nanocrystal materials and electro-optical devices produced therefrom
7,200,308
Frequency conversion with nonlinear optical polymers and high index contrast waveguides
7,200,152
Local area network for distributing data communication, sensing and control signals
7,200,006
Compliant thermal interface for electronic equipment
7,199,983
Magnetoresistive device utilizing a magnetoresistance effect for reading magnetic information
7,199,981
High reliability-parallel data transfer hard disk drive
7,199,924
Apparatus and method for spectral-beam combining of high-power fiber lasers
7,199,809
Graphic design of combinatorial material libraries
7,199,498
Electrical assemblies using molecular-scale electrically conductive and mechanically flexible beams and methods for
application of same
7,199,443
Integration of filters using on-chip transformers for RF and wireless applications
7,199,439
Microelectronic imagers and methods of packaging microelectronic imagers
7,199,305
Protosubstrates
7,199,278
Conversion of oxygenates to olefins
7,199,277
Pretreating a catalyst containing molecular sieve and active metal oxide
Nano = King of Cool
Recommended photo gallery:
M. Meyyappan
Director, Center for Nanotechnology
NASA Ames Research Center
Moffett Field, CA 94035
[email protected]
web: http://www.ipt.arc.nasa.gov
National Nanotechnology Initiative (NNI; founded 2001) =
main source of R&D dollars but VC $ is significant
Sources of Nanotech Funding
1600
1,351
1400
Private Equity Funding
1200
Government (NNI) Funding
1,081
863
800
697
656
600
399
400
74
84
464
633
649
530
420
417
104
20
07
E
20
08
E
20
06
20
05
20
04
20
03
20
02
20
01
20
00
19
99
19
98
0
19
97
$
1,445
989
1000
200
1,392
Nanotech is still in its infancy – But the investment sector is real
Source(s): www.nano.gov, Thomson VentureSource
Venture capitalists have funded <150
“nano” companies in the last 10 years
1997-2007 Nanotech Financings and Post-$ Valuation
100
90
80
70
89.5
Average Raise
Average Post- $
Median Raise
Median Post-$
78.1
$
60
53.5
50
41.0
40.0
40
30
24.0
17.6
20
10
5.8
8.2
11.4
14.2
8.3
10.0
13.0
7.0
3.0
0
Seed/A Round
B Round
C Round
All Other Rounds
Source: Thomson VentureSource
Exits in nanotech have been scarce
Status of 1997-2007 VentureBacked Nanotech Companies
Companies Raising Venture
Money between 1997 and 2007
120
160
106
140
100
120
100
82
80
54
60
33
40
# of Companies
# of Companies
140
80
60
40
20
20
14
14
6
0
0
Seed/A
Round
B Round
C Round
All Other
Rounds
Public
Acquired
Private
Out of
Business
Source: Thomson VentureSource
Life science provided majority of exits
(13 of 20); 6 known exits > $100M
2
Nanotech Exits
Accent Optical Technologies – Acquired for $45M
Acusphere – IPO at $226M
Angstron Systems – Acquired at undisclosed price
2
2
4
1
9
Drug delivery
Medical Device
Life Science Tools
Electronic Manufacturing
Semiconductor
Specialty Materials
Applied Optronics – Acquired at undisclosed price
Aprio Technologies – Acquired at undisclosed price
Arryx – Acquired at $32M
BioForce Nanosciences – Acquired at undisclosed price
Clinical Micro Sensors – Acquired at $280M
Iomai – IPO at $132M
MicroE Systems – Acquired for $55M
Molecular Insight Pharmaceuticals – IPO at $381M
Nanogen – IPO at $217M
Nanogram Devices – Acquired for $45M
Nanophase Technologies – IPO at $59M
Nanotronics – Acquired at undisclosed price
NimbleGen Systems – Filed for IPO 3/07
Protometrix – Acquired at undisclosed price
Quantum Dot – Acquired at undisclosed price
Tailored Materials – Acquired at undisclosed price
Third Wave Technologies – IPO at $457M
Boxed companies have valuations > $100M
Source: Thomson VentureSource
Post-IPO performance has been disappointing
Biotech/Pharma companies are partnering
instead of acquiring nanotech companies
• Oxonica licensed nanoparticle tagging technology to
Becton Dickinson to create clinical diagnostics (2007)
• Nanosyn signed agreements with Amphora, Arqule,
and Euroscreen to provide medicial chemistry
services using its nanoscale technology (2005-2006)
• Psivida, which develops drug delivery products,
signed an exclusive research and license agreement
for its technology with Pfizer Inc primarily for
ophthalmology and oncology. It will receive up to
$155 million in development and sales-related
milestone payments.
MedTech companies are not acquiring nano
companies either; and can provide barriers
Larger MedTech companies:
• do not want to acknowledge
flaws in their products.
• have no real need to
improve unless threatened.
• view nanotech as an
expensive incremental
improvement / alternative
• do not want to negatively
impact ASP or margin
Biophan developed coatings for pacemaker
and ICD leads to improve MRI compatibility.
The ultimate example: Drug Delivery
Needle Injection is:
Traumatic
Painful
Ineffective / Imprecise
Dangerous at times
Decades old
Accepted
But…
EASY
INEXPENSIVE
Other $B franchises that might benefit from
nanotech where adoption has lagged
Success stories include
Advanced Magnetics (AMAG)…
Ferumoxytol, the primary value driver for Advanced
Magnetics, is currently in four Phase III multi-center clinical
trials for use as an iron replacement therapeutic in chronic
kidney disease (CKD) patients.
Combidex is an investigational functional molecular
imaging agent consisting of iron oxide nanoparticles for use
in conjunction with magnetic resonance imaging, also
known as MRI, to aid in the differentiation of cancerous
from normal lymph nodes.
…but they are rare, recent,
and often ‘repurposed’
Even AGAM needed time to reach success
Awareness, investments and spending
should continue to increase…
Nanotechnology related goods and
services – by 2010-2015
USD trillions
• Conservative
case
• NSF
Estimate
•Other
•Aerospace
0.5
•Chemical
Manufacturing
1.1
•Pharmaceuticals
• Aggressive
case
2.0
•Materials
9%
6%
31%
9%
17%
28%
•Electronics
…as the “nano” brand gets diluted and
continues to be used for marketing
The Next Big Thing is
Really Small:
How Nanotechnology
Will Change the Future of
Your Business
by Jack Uldrich
Recent nano applications/ innovations
are not “typical” for typical VCs...
•
•
•
•
Step assists on vans
Bumpers on cars
Paints, Ink and coatings
Automobile catalytic
converters
• Metal-cutting tools
• Stain-free clothing and
mattresses
• Dental-bonding agent
• Sunscreens and
cosmetics
• Longer-lasting tennis
balls
• Longer and straighter
flying golf balls
• Light-weight, stronger
tennis racquets
• Burn and wound
dressings
Source: www.nano.gov
…but the future of nanotechnology in
medicine could be a VC sweet spot
• Advanced drug delivery systems, including implantable devices
that automatically administer drugs and sensor drug levels
• Medical diagnostic tools, such as cancer tagging mechanisms,
lab-on-a-chip, real time diagnostics, or Sensors for airborne
chemicals or other toxins
• Cooling chips or wafers to replace compressors in cars,
refrigerators, air conditioners and multiple other devices, utilizing
no chemicals or moving parts
• Photovoltaic (solar) cells, fuel cells and portable power to
provide inexpensive, clean energy
• New high-performance materials
• THM: Find a specific problem that NEEDS to be solved.
Predictions and Probabilities
• Nanotech will grow through corporate partnerships
• Large companies will drive nanotech adoption in
various areas, avoid adoption in others
• VC Investments will be selective (later stage/proven?)
• VCs will need to set aside plenty of reserves
• More IPOs; VCs will likely invest in more PIPEs
• There will be some big winners and many losers
Certainty: Things will not stay the same.
Thanks to Pei Ho, Oxford Bioscience Partners