Biotechnology:
From the Benchtop to the Boardroom
The Key Steps for Early Stage Commercialization
for Pre-Phase II Opportunities
Led By: Stan Yakatan, Chairman, Katan Associates & Seth Yakatan, Partner, Katan Associates
John N. Vournakis, Ph.D, Vice President for Research and Development, Marine Polymer Technologies, Inc. and Professor of Graduate Studies at the Medical University of South Carolina
Workshop Benefits:
This workshop provides a comprehensive framework
for understanding & putting into practice the key elements to commercialization,
covering in-depth the following areas:
LEARNING SESSSION (Lecture Format)
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Are you ready to start to partner; what do you need? This part of the program will examine the key elements of what is needed to successfully partner a technology/compound in the pre-Phase II setting. Four differing real-life examples of successful partnering strategies will be examined and discussed for key themes.
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The difference between invention and innovation, and why this is so important. One of the most crucial points in determining value and market acceptance of a partnering transaction is whether or not the technology is truly an innovation, or simply a novel invention. Many companies have a false perception of value of technologies or compounds that are only incremental improvements. The determination of this difference can make or break the deal and provide an insight as to how the future road to success might look. Several real life examples of companies that exhibit this difference will be examined.
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Understanding what Pharma is looking for, and more importantly why they need what they need. It is a requirement for the Top 15 global pharmaceutical companies that they must continue to in-license new technology to fill the drug development pipeline. Understanding the constraints and needs of this process, as it relates to organizational behavior and therapeutic areas is critical in a successful partnering transaction. For those that have never interfaced with such groups, the first such experience can be an interesting one. Several key transaction elements of this process will be identified with examples of several companies that have successfully partnered things which on the surface would be deemed “un-partner-able”.
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Structuring the deal. For those who have never put together a partnering transaction, this section will detail what needs to be done. Typical milestones, key points in deal structure, and negotiating tactics will be detailed. Required materials for this process and methods for preparation will be detailed. Recent successful deals will be outlined.
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How much is this worth? Fundamentally for most people the matter of value is a key consideration in taking a product forward to market. This session will examine the cost of capital from the perspective of the company, provide a simple framework for how to value such a transaction, and provide several comparable transactions in order to establish some parameters for valuation.
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Ready to take the leap. Now that key issues have been identified and addressed, this module will examine what else needs to be done. Establishment of a business strategy, finding groups and individuals that can guide the process along, the identification of key potential partners, and a discussion on management will be included.
INTERACTIVE SESSION (Case Study Format)
- The Choice. Divided into teams, the attendees will be presented with four separate technologies to evaluate for potential commercialization. Each will have its own strengths and weaknesses that will make each option both interesting and challenging from a partnering standpoint. Key in this process will be to determine if the technology presented is an invention or an innovation. Fundamental reasoning behind the decision to partner each respective technology must to be provided to the group as a whole at the end of the session. Team formation and discrete evaluation of each opportunity for selection will occur in this process.
- The Value. Now that a technology has been selected, teams will then be required to plot a course for the future. First teams will need to select what to do with the technology, establishment of key milestones, the definition of a business strategy, and other key partnering events will need to be considered. Each group will need to prioritize what path to take and will be challenged to balance the needs of each stakeholder in the process. Once this is complete, teams will be asked to place a value on the project for a potential partnering transaction. Teams will be required to present findings/conclusions to the group as a whole at the end of this session.
- The Deal. With a candidate selected and a value placed on the future, the teams will then be required to cut a deal with a large global pharmaceutical company. Teams will be asked to decide on several options via which to potentially finance and enhance the further commercial and regulatory development of the project. Each of the four technologies will be assigned three separate options for partnering. Teams will need to weigh strengths and weaknesses of each alternative and select one. Again, teams will need to present choices, and the thought process behind them, to the group as a whole.
Stan Yakatan: After 30 years as a successful CEO, entrepreneur, and operational manager, Stan has dedicated the last 9 years of his career to sharing his experiences with management teams interested in building technology based companies. His experience as an executive and in several instances serving as CEO with New England Nuclear, EI Dupont, ICN Pharma, New Brunswick Scientific and Biosearch, provided him with management and corporate finance acumen that he enjoys sharing with others. He has founded or co-founded in excess of 15 companies in the United States, Canada, Israel, France and Germany and in many cases served as the initial CEO, and Chairman of these companies. He currently sits on the board of directors of several public and private companies and has advised several of the world's leading venture capital firms including TVM (Germany), Ventana (USA), MSP (USA) and Biocapital (Canada). He has completed and advised on numerous acquisitions and corporate finance transactions raising in excess of $1.0 billion dollars in the public and private capital financing markets. He is a frequent speaker at international financial and biotechnology conferences and is quoted as “a venture capital raising Guru and it is part of his genetic make up." (Rick Biondi, Editor of Lab Business Magazine). He currently serves as the strategic advisor to the state government of Victoria, Australia, and as the Chairman of Lifepoint, Inc. (AMEX:LFP).
Seth Yakatan: Seth has over 8 years experience as a corporate finance professional in the United States and over 3 years’ experience in venture capital investing as an analyst with both the Ventana Growth Funds and Sureste Venture Management. Most recently, Seth has worked with Union Bank of California, N.A., in the media and telecommunications group. While there, he completed debt financing in excess of several billion dollars while placing subordinated debt and private equity into several portfolio companies on behalf of the bank. Seth holds a MBA in Finance from the University of California, Irvine.
John N. Vournakis, Ph.D: Dr. Vournakis has had an esteemed teaching career as in addition to his current duties at MUSC, he has previously served on the faculty of Dartmouth College as Professor of Biology between 1984-95 and as Professor of Biology at Syracuse University between 1973-84. Dr. Vournakis received a PhD degree from the Cornell University Department of Chemistry in Physical Biochemistry in 1968. He trained as a post-doctoral and research associate at MIT and Harvard Universities in the fields of molecular biology and genetics between 1969-73.
Dr. Vournakis is known for his early work on the physical chemistry of RNA structure, and on the mechanism of drug-DNA interactions. He joined Dartmouth College as Professor of Biology in 1984, where he founded the Molecular Genetics Center at Dartmouth, after 12 years on the Faculty of Syracuse University. During the period 1985-1992 he assisted the Industrial Division of Bristol-Myers Company to establish its genetic engineering group, served as Vice President of Science and Corporate Officer at Verax Corporation, a pharmaceutical protein bio-processing company, and later served as Senior Vice President, interim CEO and Corporate Officer at Genmap, Inc., an early genomics company. He is a co-founder of Marine Polymer Technologies, Inc., which has been in existence since 1992.
Dr. Vournakis has published more than 150 scholarly works, is a regular reviewer of grant applications for federal agencies, and has served on the editorial boards of several scientific journals. He is an inventor on 19 issued US and foreign patents. Dr. Vournakis has expertise in polymer science, and in the development and large-scale production of biopolymers for use in biomedical devices, particularly for applications in hemostasis and drug delivery. His current research, focused on the development of medical products from marine polysaccharides, has resulted in several FDA and CE cleared products for the treatment of bleeding, and is the basis for the development of a drug delivery system for the treatment of cancer.
Dr. Vournakis has been a Science Advisor to and Director of several biotechnology companies. He has lectured on the biotechnology industry in numerous venues including the Amos Tuck School of Business at Dartmouth College and the Medical University of South Carolina's Bio-Entrepreneur Program.