Transcript Where Science Means Business The case of Yissum – The Hebrew University of Jerusalem Renee Ben-Israel, Vice-President – Intellectual Property WIPO: Information Meeting on.

Where Science Means Business
The case of Yissum –
The Hebrew University of Jerusalem
Renee Ben-Israel, Vice-President – Intellectual Property
WIPO: Information Meeting on Intellectual
Property Financing
Geneva – 10 March 2009
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Summary
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Introduction
Patent strategy
Patents and Universities
Israel’s technology and Innovation
Israeli universities
Yissum
Food for thought
Patents use
 Patent strategy may be:
 Defensive - no intention of developing the invention,
main interest: preventing others from doing so.
 Dominating - plan to use the technology, the processes
described in their patents and sue infringing parties.
 Licensing purposes (in/out/cross)individuals/institutions that do not intend to manufacture the
invention themselves, transfer the rights for development
and production to a third party
 Other purposes (profit centres, aggregators, “trolls”)
Universities patents strategy?
 Not really
 Depends on the invention!
 Platform (enabling) inventions
 Niche/complementary inventions
 Use inventions
 Conceptual inventions
 University patents are meant for
technology transfer
University patents
 University classical mission:
 Teaching, researching and divulging the knowledge
 Universities’ patents:
 Embryonic – feasibility/market unknown
 Development requires high risk investment by industry
 Intellectual property protection can be used as an
incentive to make high risk investment
 motivating the “first mover” by protecting against
later competitors (strategy!)
Purposes of University Technology
Transfer
 Participate in innovation process
 Facilitate the commercialization of research
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results for the public good
Retain and recruit researchers
Create closer ties to industry
Generate income for further research and
education
Promote economic growth
Social responsibility
Purposes of University Technology
Transfer
Research => Invention (and IP)=> Development
=> Innovation
 New products and medicines
 Bring new technology into industry for economic
competitiveness
 Encourage entrepreneurship for local and national
economic development
(source: Lita Nelsen – MIT)
The Tech Transfer Bargain
 University research leads to patent—but technology is
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unproven and high risk
University is willing to grant exclusive patent license to
Company who will commit to the risk of developing the
technology
If development succeeds, the patent protects the
Company from competitors
University benefits from product being developed and
from royalties (shared with inventor)
University also has the opportunity in the license to
assure that patents are used “in the public interest”—
requiring certain price or geographical concessions for
developing countries, if appropriate
(source: Lita Nelsen – MIT)
Patent protection is particularly critical for development of
pharmaceuticals
 Development of a new therapeutic or vaccine product is
a particularly high risk activity
 Time frames are long
 Financial investment is very high
 Clinical trials are very difficult
 Probability of failure is high
 Patent protection of the final product is necessary
before companies (or biotech investors) will take the risk
and make the investment
(source: Lita Nelsen – MIT)
Pharmaceuticals
Israel: data
Area - Total 120,770 / 22,072 km2 (151st)
8,019 / 8,522 sq mi - Water (%)~2%
Population - 2008 estimate 7,282,0002[3] (96th) 1995 census 5,548,523 - Density324/km2 (34th)
839/sq mi
GDP (PPP)2007 estimate - Total$188.936
billion[4] (52nd) Per capita$27,146[4] (32nd)
GDP (nominal)2007 estimate - Total$164.103
billion[4] Per capita$23,578[4]
Israel, facts & figures
 Technology transfer pioneer
 Brain power + need =>
use of science to survive,
overcome situations
 Highest % of R&D allocation from GDP
(4.7% - 2007)
R&D expenditure
National expenditure on civilian R&D in 2007 was 4.7% of the GDP.
Major increase in R&D companies.
NIS Billion
1. National Expenditure on Civilian R&D, at 2005 Prices
1995-2007
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8
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1995
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*Provisional Data
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2000
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2005
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Israel, facts & figures
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1901- TEVA’s foundation
1924- The Technion (Polytechnic Institute)
1925- The Hebrew University of Jerusalem
Population with high scientific level, strong
inclination to engineering and
biological/medical sciences
 Research units in hospitals – many
experimental units
 Access to…
Israel, facts & figures – patents
OECD: Israel has the highest percentage of patents in the region:
Israel is ranked 6 globally for patents per GDP and 8th for patents per capita
Israel: Supporting Infrastructure
The Technological Incubators programme, the Tnufa programme, the Noffar fund,
the R&D fund. State initiatives matched with private interest meant to foster early stage projects.
Israel: Supporting Infrastructure
The Magnet, the Mini-Magnet, the generic R&D meant to support
joint industry & academic institutions cooperations
Israeli Universities
 Tech Transfer since 1959 (much before the BayhDole act in the US!)
 At all 7 universities & many research
institutions, hospitals
 Yeda: one of the wealthiest in the world
 Yissum: 15th in the world
Success stories – a sample
 Yeda:
 Bio-Hep B®, recombinant hepatitis B vaccine
 Copaxone®, 1st. Innovative drug in Israel, MS
immunomodulator
 Dunaliella®, β carotene health food form alga
 NDS Ltd., Encryption Algorithm, TV set-top box smart cards
 Erbitux ®, Antibody therapy with synergism with
chemotherapy
 Technion:
 Azilect®, Parkinsons Disease
 And many others
The Hebrew University of Jerusalem
4 Campuses
320 Researchers
in Applied Sciences
5 Affiliated Hospitals
1,600 Post-Graduate
Students in Biotechnology
4,420 Research Projects
1,000 Researchers
(Staff Members)
>100 Research Centres
24,000 Students
Over 1/3 of all academic scientific
research In Israel
43% of Israel’s biotechnology research
>1/3 of PhD students in Israel
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A Nobel Heritage
 2002 Nobel Prize in Economics
 Daniel Kahneman, Princeton
 2004 Nobel Prize in Physics
 David J. Gross, UC Santa Barbara
 2004 Nobel Prize in Chemistry
 Avram Hershko, Technion
 Aaron Ciechanover, Technion
 2005 Nobel Prize in Economics
 Robert J. Aumann, Hebrew University
 2006 Nobel Prize in Chemistry
 Roger Kornberg, Stanford
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Top 20 Most Frequently Cited Papers
Stem Cells 1998-2004
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http://www.milkeninstitute.org/pdf/m2m2006_uni_bio.pdf
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Where Science Means Business
The Hebrew
University
Non-profit
organization
Board of
Directors
Business leaders
Yissum
Business-oriented
organization
Founded 1964
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University Strategy
 Created a positive atmosphere at the
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University
Established good and clear policies as an
incentive to researchers
Budget incentives
New opportunities
Awards/prizes for achievements
Yissum’s Mission
To promote the transfer of
Hebrew University technology for the
benefit of society, while maximizing
returns to support research, education
and scientific excellence
Yissum = Hebrew for ‘application’
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It’s not that simple!
 Academic world
 Business world (Industry, VCs, Start-ups)
(to say nothing about market instabilities…)
 Intellectual Property legal world
 Contracts – legal/commercial world
The rules of the games are different.
Yissum’s strategy
 Identifies the right situations - matching needs &
opportunities
 Identifies the key elements – to move the project
forward
 Flexibility
 Professionalism
 With no interference in the academic freedom!
Current Snapshot
 Over $1 Billion annual sales of Hebrew
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University- based products
5,500 patents
1,600 inventions
480 licenses
65 spin-offs
 Raised over $165 mil in 2007 from leading
VCs and private investors
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A Record of Achievement
 2007 revenues $51mil
 $36 mil royalties and licensing
 $4.3mil portfolio companies
 $10mil sponsored research & services
 HU research budget $107mil
 Ranked in top 15 worldwide (AUTM)
 Leading US TTO revenues FY2007
 MIT $61mil
 Research budget: $1.2 Billion
 Stanford $50mil
 Research budget: $1 Billion
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Intellectual Property
2007 Snapshot
 121 new inventions
 93 new patent applications
 64 new patents granted
2007 New Inventions
Materials
5%
Agriculture
11%
Applied Physics
2%
Cleantech
6%
Intellectual Property at HU
 Yissum owns all IP
developed at HU
 Researchers receive
40-60% of revenues
Computer Science &
Engeneering
9%
Life Science and
Biotechnology
67%
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2008 statistics:
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Disclosures: 128
New applications filed: 112
PCTs: 44
National Phases: 41/159 (~4 countries)
Examination: ~250
Renewals: 500-550
Budget: ~$3M
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Patents are an expensive game
First
Filing
PCT
IPER
NP
Patent
Grant
Prosecution
NP
K$
Maintenance
120
100
80
60
40
20
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0
12
20
Months
30
40
50
60
7yrs
12
Time
(Total: 20 years)
Global Reach
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Yissum’s Spin-offs
Rav-Galai
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Success Stories - Tomatoes
Long Shelf Life & Cherry
Tomatoes
The world’s most popular
cocktail hybrids for
greenhouse production
Prof. Nachum Kedar
Prof. Haim Rabinowich
Department of Field Crops,
Vegetables and Genetics:
Faculty of Agriculture, Food
And Environmental Sciences
The Hebrew University
Rehovot Campus
2007 sales $73 million
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Success Stories - Doxil
DOXIL®
Doxorubicin HCI liposome injection
Alza’s Lead Product for
Oncology
Prof. Yechezkel Barenholz
Department of Biochemistry
Faculty of Medicine
The Hebrew University
Of Jerusalem
2007 sales $417 million
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Success Stories - Exelon
For Treatment of Alzheimer’s
Disease and Dementia
Prof. Marta
Weinstock-Rosin
Department of Pharmacology
Faculty of Medicine
The Hebrew University
Of Jerusalem
2007 sales $632 million
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Food for thought
 Will emphasis on tech transfer change
nature of research from “discovery” to
“applied”?
 Will need to collaborate with industry
be allowed to inhibit publication and
dissemination of results?
Food for thought
 Will “privatization” of research results
retard the progress of science?
 Will the universities remember their
public mission—taking care that IP is
used primarily for the public good?
Food for thought
 Will the decrease in government investments
in research create a dependency from
commercial sources?
 Will this deviate universities from their
missions?
It will certainly require a coordinated effort and
thought of all involved parts!
Conclusion:
 Is it worth the effort?
 So far, our experience has been
positive!
Thank you for your attention!
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