Transcript Wildcat-MD Anderson Pharmaceutical Partnership Proposal

Wildcat Venture Management
Technology Transfer Tactics Audio Panel
September 30, 2008
Chicago, IL
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Copyright © 2008
Wildcat Venture Management, Inc.
About Wildcat Venture Management
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Established in 2006
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Regional Presence in New York, Houston, Chicago and Los Angeles
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Develops university bio-technologies into commercially viable life science startup ventures
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Holds relationships with 20+ major academic institutions and affiliates
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Dedicated team of business and technical experts with significant experience in the
commercialization of pharmaceuticals and medical devices
Contact:
Eric Nicolaides
Managing Partner
Phone: (630) 670-8135
Email: [email protected]
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Wildcat Venture Management, Inc.
Determining Value
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Required Elements for Intellectual Property
– Filing before disclosures
– International rights
– Some analysis of freedom to operate
Market Potential
Validation of Technology
Time to Market
Length of Patent Life
Rapport with/Reputation of Faculty
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Wildcat Venture Management, Inc.
De-risking Technology Investments
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Patent before publishing or giving talks
– Make sure your PI’s know this!!!
Encourage commercially oriented proof-of-concept studies
Engage industry/investors earlier and not later
Determine the best commercial application for the technology
– Figure out what will sell and what won’t
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Wildcat Venture Management, Inc.
Investment Turn-Ons and Turn-Offs
Turn Ons:
• First looks at technology
• Well thought out proposals with clear starting point for
commercialization
• Complete technology portfolio
Turn Offs:
• High upfronts (license initiation fees, other non-patent-related upfront
cash payments)
• Very short or very expensive option agreements
• Limited patent coverage, missing patent rights
• Patent portfolios divided amongst several licensees
• Demand for big equity position in addition to fees
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Wildcat Venture Management, Inc.
What You Should Expect to Give Up
(for early stage deals)
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Reasonable low-cost period of exclusivity to complete diligence
Low-cost license initiation fees
Low-cost EARLY milestone payments
Royalties that are stage appropriate
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Terms for late stage deals are completely different—and are more
easily defined, valued and determined by the market
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Wildcat Venture Management, Inc.
Why Attitude Matters—How Best to Work Together
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A good relationship with clear communication, honesty and upfront
understanding will result in a good deal for everyone
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The key is to find common ground between the parties
– Negotiation isn’t a zero sum game!
– Win-win’s are possible if both sides want to make a deal
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Wildcat Venture Management, Inc.
How Investors Can Help -- or Hurt
Investors Can Help By:
• Providing commercial vision to the technology
• Bringing in outside expertise to evaluate and guide technology
• Allowing inventors to focus on the science, while we focus on the
business
Investors Can Hurt By:
• Narrowly focusing on one application, when a portfolio may have
multiple platform opportunities
• Focusing on the wrong element of the portfolio to develop
• Failing to prosecute or protect IP vigorously enough
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Wildcat Venture Management, Inc.
Effective Preparation Guidelines
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Understand as well as possible the:
– Key data that is available
– Stage of the technology
– Patent portfolio-- its strengths limitations, what needs to be done
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Provide the key information in the appropriate format to make
information gathering as simple as possible
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Provide three sets of descriptions in increasing detail and
confidentiality:
– A one-page summary to outline the key features and stage
– A non-confidential package
– A confidential package
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Wildcat Venture Management, Inc.
Latest Trends in Start-ups and VC Joint Ventures
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Shifting focus away from early stage technologies
– Clinical trial data increasingly important
Investment modes:
– $250k or $25million – and nowhere in between
Limited interaction with TTOs
– Industry becoming very regionalized
– “Waiting for the technology to come to me”
How we are trying to buck the trend:
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National presence (7 partners in 4 cities)
Frequent visits to TTOs, projects nationwide
Building technology commercialization partnership with several high profile institutions to
support early through late stage work
– $100m dedicate fund to invest in partner institutions
– Infrastructure investment and dedicate staff to be positioned at institutions
– Still opportunities for other universities to join in
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Wildcat Venture Management, Inc.
Why “Less is more” when pitching to Investors
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Wildcat Venture Management, Inc.
Best Practices in Making the Case
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Describe the opportunity as simply as possible:
– The inventors/institutions involved
– Work done to date and technology stage
– Work that still needs to be done
• Estimate investment required and time to market, if known
– Existing patent portfolio
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Tell us why you think it is a good fit for us:
– Try to learn about our past deals
– Try to learn about our investment preferences ahead of time
– Give us an incentive to take a longer look
• Informal exclusivity (first look)
• Reasonable option period (if there is enough interest on both sides)
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Wildcat Venture Management, Inc.