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Constance McKee Yale MBA 1986 President & CEO, Manzanita Pharmaceuticals, Inc. Business of Biotech 7. Yale Biotechnology & Pharmaceutical Society 30 March – 2 April 2009. Constance McKee Business of Biotech 7. The Business of Biotech 7.

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business of biotech 7
Constance McKee

Yale MBA 1986

President & CEO, Manzanita Pharmaceuticals, Inc.

Business of Biotech 7

Yale Biotechnology & Pharmaceutical Society

30 March – 2 April 2009

the business of biotech 7
Constance McKee

Business of Biotech 7

The Business of Biotech 7

A Non-Credit Seminar for Yale & the Biohaven Community

Week of 30 March – 2 April 2009

Yale School of Management

135 Prospect Street, New Haven

Constance McKee

Yale School of Management, MBA 1986

Manzanita Pharmaceuticals, Inc.

www.manzanitapharmaceuticals.com

2995 Woodside Road

Suite 400, PMB 309

Woodside, CA 94062

[email protected]

m 408.348.3191 v 408.872.1094

introduction
Introduction

Course approach – part quantitative concepts, part case studies

First hour - basic concepts in start-ups

Modular – hard copy fills in blanks if you miss a few evenings

Second hour – micro case studies from entrepreneurs, investors & industry

Speakers talk about making decisions – and how it *really* turned out

Key questions

What’s the opportunity?

What’s the opportunity worth?

How do we – founders & investors – make money?

In the current environment, where *is* the money?

Emphasis on biopharmaceuticals

Business concepts apply to devices, tools & diagnostics companies

But decision-making process similar for devices & tools

Constance McKee

Business of Biotech 7

course goals
Course Goals

Explain challenges of raising capital for life sciences start-ups

No previous experience required

From perspective of scientist

Quantitative approach

Skip the MBA…..

Introduce basic concepts that drive the business of biotechnology

Most good business decisions are driven by quantitative concepts

Rules of the game

How to play the game to increase the probability of success

Develop network of Yale-centric entrepreneurs & investors

Sources of information

Sources of funding

Career opportunities outside the lab

Constance McKee

Business of Biotech 7

course outline speakers case studies in decision making
Course Outline & SpeakersCase Studies in Decision Making

Monday, 30 March 2009

Sohini Chowdhury, Michael J. Fox Foundation (Parkinson’s disease) (New York)

Robi Blumenstein, HighQ Foundation (Huntington’s disease) (New York)

Tuesday, 31 March 2009

Jim Dolan, Executive VP, Purdue Pharma (Stamford)

Dr. Roger Hill, Head, Global Licensing – Cardiovascular, Boehringer-Ingelheim (Ridgefield)

Wednesday, 1 April 2009

Ron Burch, MD, CSO, Pacira (San Diego) (former CEO, AlgoRx)

Jonathan Lewis MD, founder & CEO, ZioPharm Oncology (New York)

Thursday, 2 April 2009

Scott Barry, Essex Woodlands Health Ventures (New York)

Myles Greenberg, MD, CHL Medical Partners (Stamford)

Constance McKee

Business of Biotech 7

acknowledgments sources 1
Acknowledgments & Sources - 1

Matt Plunkett & Rob Weir, Oppenheimer & Co (Menlo Park) - M&A statistics

Howard Palefsky, Montreux Equity Partners (Menlo Park) – MAKO case study

Mark Edwards, Recombinant Capital www.recap.com & online publication “Signals” www.signalsmag.com

Statistics on deals & deal trends

Article on venture philanthropies

Cynthia Robbins-Roth – books & columns

From Alchemy to IPO

Alternative Careers in Science

BioWorld Today www.bioworld.com

www.clinicaltrials.gov

NIH database for clinical trials, current and closed

Reference for trial design, numbers of patients

www.nasdaq.com

Pricing & valuations for many biotechnology, tools & diagnostics companies

Constance McKee

Business of Biotech 7

acknowledgments sources 2
Acknowledgments & Sources - 2

Online reading

Fierce Biotech

GEN (Genetic Engineering News)

BioBrief, RPM Report

In Vivo publications

Roger Longman is one of industry’s longest-serving & most insightful analysts

Patient advocacy organizations

Statistics on patient populations

Current news on experimental therapies, clinical trials

NIH - information on diseases & disorders; SBIR & other grants programs

Merck Online www.merck.com/mmpe/index.html

Current information on diseases & disorders

Standard-of-care drug therapy, mechanism of action of drugs

SEC filings www.sec.gov

Company websites for annual reports (10-Q), quarterly reports (10-K)

Information on failed trials is usually buried in quarterly or interim (8-K) reports

Constance McKee

Business of Biotech 7

monday basic concepts in start up business infrastructure
MondayBasic Concepts in Start-up Business Infrastructure

Patents

How ownership arises (why Yale owns your ideas)

How rights to patents get transferred to your start-up

What is “unmet clinical need”? What is a “market”?

What is a business model?

What is a business plan?

Constance McKee

Business of Biotech 7

growing the start up first you need a lawyer
Constance McKee

Business of Biotech 7

Growing the Start-Up“First, you need a lawyer…..”

1. Incorporate. Set up a legal entity that (1) shields individuals from liability & (2) allows individuals and corporate entities to share ownership – but not always equally. Legal documents set up officers & Board members.

2. Patents. License in discoveries from a university, another company, or reduce your own ideas to practice. Employees assign rights of ownership of new patents to new company.

3. People. Legal agreements for employees, advisors & consultants, Board members, service providers – accounting, legal, patents.

4. Collaborators. Sponsored research agreements, Contract Research Organizations.

5. Financing. Cap chart, comparables, valuation.

patents
Patents

What is a ‘patentable invention’?

Patents are issued by US Patent & Trademark Office, European Patent Office and patent offices of respective countries

Must show your idea is “novel and not obvious” & that it works (data)

When issued, confers the right to sue if an infringer sells a product in the marketplace based on your idea

What is intangible intellectual property that can be protected?

Copyright – software, drawings

Know-how – protocols for synthesis of a small molecule drugs

Also known as trade secrets (“secret sauce”)

Almost always key to real value in the product, never disclosed in a patent application

Constance McKee

Business of Biotech 7

how ownership arises why yale owns your ideas
How Ownership ArisesWhy Yale Owns Your Ideas

Under US law, the employer owns the ideas of employees

Terms of Yale employment includes faculty, graduate students

Yale Office of Cooperative Research http://www.yale.edu/ocr/

You can “consult” to your own start-up

Most universities permit this, but your consulting agreement either

continues to allow Yale to own your ideas while consulting, but licenses any discoveries to your start-up, or

grants ownership of ideas generated during consulting period to the start-up

Document who & where invention occurs

Complicated with multiple academic collaborators

Complicated by multiple granting sources

Expect multiple co-inventors on patent application

Constance McKee

Business of Biotech 7

why are patents important
Why Are Patents Important?

Worthless unless a product made from it, sold & making $$

Does not keep others from stealing your ideas

Just gives you the right to sue them if they do steal

Formidable barrier to entry if you succeed

In pharmaceuticals, can charge a premium price

Confers exclusivity

Means you’re the only one legally authorized to sell product

Can be US only, EU only, ROW only or combination

When patent expires for pharmaceuticals, generic drug makers take over & premium-priced drug revenues decline ~ 60% in one year post-expiry

Strong patents are enormously valuable to pharma

Constance McKee

Business of Biotech 7

yale licenses rights to start up how legal rights are transferred
Yale Licenses Rights To Start-UpHow Legal Rights Are Transferred

License is a legal agreement

Yale’s ownership gives it right to confer some or all of its rights, over time

In exchange for grant of rights, Yale may get rights to % of future product value

Future product value – milestones or % of sales (“royalties”)

Important concept – transfers rights, not ownership

If things go wrong, Yale still owns patents

Start-up licensee usually pays for patent prosecution

Start-up licensee usually obligated to use “best efforts” to develop

Years before Yale (and you, the discoverer) makes any money

Flexible concept

May have low or no upfront fee

May include milestones for key development steps

May include royalties (% sales) when product launched

Constance McKee

Business of Biotech 7

royalties percentage of cash from products sold
Constance McKee

Business of Biotech 7

RoyaltiesPercentage of Cash from Products Sold
  • Wait years until product developed & finally sold
  • Industry standard – 2% of net revenues of Rx
  • Royalties increase as drug price increases, number of patients increases
unmet clinical need number of patients x cost of undertreatment
Constance McKee

Business of Biotech 7

Unmet Clinical NeedNumber of Patients X Cost of Undertreatment
  • Example: 25 million Americans with chronic pain
  • No drug of choice – many classes of Rx prescribed, but only 30% effective
  • Direct cost - $1,000 per patient per year
  • Rx relatively inexpensive, but patients keep going back to the doctor
  • US Army - $340 BN total cost of treating pain in returning veterans from Operation Enduring Freedom, Operating Iraqi Freedom
what is a market can describe both place total value sold
Constance McKee

Business of Biotech 7

What is a Market?Can Describe Both Place & Total Value Sold
  • Place = pharmacy, stock exchange, flea market, souk, eBay
  • Total value = number of units sold X price per unit
  • Drug market = number of scrip written X price paid by patient
  • Example: Exubera (inhaled insulin developed by Nektar, marketed by Pfizer)
    • Exubera sold $14 million after it was launched
    • Merck sells Januvia for $4.86 per tablet (100 mg 1X 7 days) x (22,475+48,685) = $2 million per week, $125 million per year just weeks after launch
    • Pfizer pulled Exubera from the market in October 2007
  • Depends on who can afford Rx, who actually takes their meds
  • Doesn’t quantify potential Rx with better effectiveness that addresses unmet need

http://seekingalpha.com/article/50788-pfizer-four-lessons-from-the-exubera-failure

what is a business model lemonade stand revenue model price customers
Constance McKee

Business of Biotech 7

What is a Business Model?Lemonade Stand Revenue Model, Price & Customers
  • Are you selling the end product? Or intermediates?
  • What is the cost of the materials in your product?
  • What is the price per unit, less the cost of materials per unit?
  • How much $$ does it take to develop your product & launch it?
  • How much $$ does it take to keep your business going?
what is a business model life sciences sector overview
Constance McKee

Business of Biotech 7

What is a Business Model?Life Sciences Sector Overview
  • Key risk is time & money until you get to product revenue
  • Trade-offs between make-it-yourself and license-it-out models
  • Best scenario – shortest time & money, biggest payoff
  • Venture capital now only rarely funding drug development
what is a business plan
What is a Business Plan?

Proxy for future value

Estimates for market size & market opportunity

Estimates risk (amount of $ to product vs amount of potential revenue)

Patents

How much can you expect to sell vs competitors’ products?

Proxy for reality

Has team done *it* before? (developed this kind of product)

Have other companies tried to address this problem before? Did they fail?

Have other investors made money in this sector? With this business model?

What are the “comparables” (value of deals done in this sector)?

What are the “comparable exits” (value of deals in this sector that were acquired by other companies, or went public)

Constance McKee

Business of Biotech 7

biotech ipos canaries in capital markets the venture capital industry is not investing
Biotech IPOs – Canaries in Capital Markets?the venture capital industry is not investing….

Constance McKee

Business of Biotech 7

early stage funding gap
Constance McKee

Business of Biotech 7

Early-Stage Funding Gap

Source: Signals Mag; Alzheimer’s Drug Discovery Foundation www.alzdiscovery.org

opportunity for philanthropic capital hint go where the money is
Opportunity for Philanthropic CapitalHint: go where the money is…..

Constance McKee

Business of Biotech 7

tuesday managing risk in clinical development focus on pharma
TuesdayManaging Risk in Clinical Development: Focus on Pharma

What is the FDA-driven development path?

What is a decision tree?

What is the decision tree for clinical development?

What are key strategies to manage development risk?

Constance McKee

Business of Biotech 7

clinical development 7 5 years 750 million
Constance McKee

Business of Biotech 7

Clinical Development7.5 Years - $750 Million

Clinical Trials

$250M

Research

$500M

Gene

“HIT”

Library

Medicinal Chemistry

Rationale Drug Design

Compound identification

Preclinicals/IND

1: 10,000 (.01%)

Phase III/IV - 40%

FDA Approval

50% Marketed

Phase II - 50%

Phase I - 50%

Lead Candidate

Cell-based assays

In vitro - primary culture

In vivo - non-mammalian

In vivo - knockout

In vivo - clinically predictive

In vivo - not clinically predictive

Safety

Pilot - Effectiveness

Effectiveness

$$$

what risks over what period of time what kind of risks do your investors understand
Constance McKee

Business of Biotech 7

What risks, over what period of time?What kind of risks do your investors understand?

Financial risk

Regulatory risk

Market risk

Science risk

Clinical risk

Lead Candidate

Cell-based assays

In vitro - primary culture

In vivo - non-mammalian

In vivo - knockout

In vivo - clinically predictive?

IND application

FDA

Approval

Sales

Phase 1

Safety

Phase 2

Pilot - Effectiveness

Phase 3-4

Effectiveness

decision tree for clinical development
Constance McKee

Business of Biotech 7

Decision Tree for Clinical Development

50%

FDA approval (launch - $50M for ramp-up)

40%

Complete Phase III/IV (invest - $50M)

Don’t market (competition)

50%

Complete Phase II (invest - $25M)

Failure (50%)

50%

Complete Phase I (invest - $25M)

Failure (60%)

Complete preclinicals (invest - $20M)

.01%

Failure (50%)

Develop 20 compounds (invest -$500M)

Restructure R&D (invest - $200M)

Failure (50%)

Divest division (sell + $50M)

Do not develop

PhRMA; (Brealey & Myers)

spread portfolio risk venture investors pharma measure success as irr
Constance McKee

Business of Biotech 7

Spread Portfolio RiskVenture Investors & Pharma Measure Success as “IRR”
  • IRR = internal rate of return (complex calculation for both cash invested and time until investment pays off)
  • ROI = return on investment (used interchangeably to express increase in value of original investment, adjusted by time)
  • For pharma & VCs alike, “shots on goal” - home runs make up for strike-outs
  • For pharma – known mechanism of action; clinically relevant models shortens development time & lowers risk
potential market value drives decisions 120m market is minimum to justify beginning development
Constance McKee

Business of Biotech 7

Potential Market Value Drives Decisions$120M Market Is Minimum To Justify Beginning Development
  • If 10% of drug candidates reach the market, you need 10 drugs to complete preclinical studies to ‘guarantee’ a successful drug
  • But costs $500 million per drug candidate through to Phase 1
  • Big pharma needs $1.2 BN market opportunity to justify development ($120M x 10, assumes stop development at milestone failures)
what is a business model lemonade stand revenue model price customers29
Constance McKee

Business of Biotech 7

What is a Business Model?Lemonade Stand Revenue Model, Price & Customers
  • Are you selling the end product? Or intermediates?
  • What is the cost of the materials in your product?
  • What is the price per unit, less the cost of materials per unit?
  • How much $$ does it take to develop your product & launch it?
  • How much $$ does it take to keep your business going?
what is venture fundable venture investors seek least risk highest upside
Constance McKee

Business of Biotech 7

What is ‘Venture Fundable’?Venture Investors Seek Least Risk, Highest Upside
  • Start-ups usually begin after discovery completed in universities
  • So VCs focus on the $250M cost of development
  • Big pharma addresses large, chronic conditions
  • VCs focus on smaller markets, clear clinical endpoints
wednesday valuations
WednesdayValuations

What is a valuation?

Why is this important to founders?

How are valuations determined in the private (venture) market and in the public markets?

To what quantitative factors are valuation models sensitive?

Founders make money when….

Founders lose money when….

Constance McKee

Business of Biotech 7

valuation determined by 1 value of latest round of financing 2 market conditions
Constance McKee

Business of Biotech 7

Valuation Determined by (1) Value of Latest Round of Financing & (2) Market Conditions
  • If 25% is worth $1 million, then 100% is worth $4 million
  • ($1 divided by 25% = 4)

25% valued at $1 million

pricing rounds venture valuations affect founders ownership dilution
Constance McKee

Business of Biotech 7

Pricing RoundsVenture Valuations Affect Founders’ Ownership (“Dilution”)
  • Begins with pre-money valuation
  • Pre-money valuation driven by
    • (1) absolute amount of cash needed and
    • (2) target post-money valuation
  • New price-per-share calculated as (valuation/new $$ required = price/sh)
  • New price/sh calculate as (# new shs issued = % owned) = “dilution”
valuations market drives pre money valuations
Constance McKee

Business of Biotech 7

ValuationsMarket Drives Pre-Money Valuations
  • Model sensitive to time to exit (acquisition, IPO, product launch)
  • Model sensitive to cash required for each milestone
  • Pre-money valuation is whatever investors believe & insist on
  • Pre-money valuation + funds in = post-money valuation
  • Next round of investors want a “step up” (assumes you meet your milestones & your technology is now worth more)
how expected exits drive valuations solve for x exit value must be at least 50m
Constance McKee

Business of Biotech 7

How Expected Exits Drive Valuations Solve for “x” – exit value must be at least $50M
  • Constant – capital needed to bring Rx to market
  • Constant – time needed to bring Rx to market
  • Constant – return VCs seek at each capital raise
  • Variable – IPOs & comparables
  • “Solve for x” – what your company is worth now ~ current round VC pricing

(x+5) + (3x+5) + (2x+10) + (2x+30) = 100

Your idea - $70M for novel Rx

Milestone – IPO or trade sale

Milestone – in vivo POC $5M

Milestone – preclinicals/IND $5M

Milestone – “clinical proof” $10M

Milestone – FDA approval $40M

Time: 6 - 8 yrs for novel Rx

notion of expected future earnings public company valuations fluctuate with price
Constance McKee

Business of Biotech 7

Notion of ‘Expected Future Earnings’Public Company Valuations Fluctuate with Price
  • For public companies, investors buy on future expected value of earnings
  • Torcetrapib failed in Phase 3
    • Pfizer spent $850M to develop the drug to that point
    • Conducted trials in 20,000 patients
  • On 4 December 2006, stock price dropped from $27.88 per share to $23.00 per share (x 7.2 billion shares, from $201 BN to $166 BN total company value)
  • Means investors removed value of future earnings from stock price
what s a valuation comparable similar business model similar products
Constance McKee

Business of Biotech 7

What’s a Valuation ‘Comparable’?Similar business model, similar products
  • Valuations of venture-backed companies
  • Subscription-services
    • (1) Venture One
    • (2) The Venture Capital Analyst
    • (3) your lawyers (without naming companies….”we’re seeing deals like this right now at valuations of etc”)
    • (4) your friends
  • Small cap public companies
    • Valuations may be affected by major investors’ portfolio concerns, may be unrelated to company’s future – or inside information? (PTIE)
    • Valuations may be affected by global market conditions (MAKO)
  • Similar class of drugs progressing through clinical trials
    • Pfizer torcetrapib failure
what happened to 2007 ipo debuts public valuations vc valuations
Constance McKee

Business of Biotech 7

What Happened to 2007 IPO Debuts?Public valuations ~ VC valuations

Market cap as of 16 Mar 2009

MIPI = Molecular Insight ($64M)

SNTA = Synta ($62M)

OPTR = Optimer ($328M)

ROSG = Rosetta Genomics ($30M)

VRUS = Pharmasset ($241M)

slide44
Constance McKee

Business of Biotech 7

What happened on October 7?Venture investors Montreux & Skyline do $60M PIPE on October 29, 2008 at $6.25 per share*

Montreux bid $6 per share in 2006 in a venture round before MAKO went public, but were outbid by hedge funds. MAKO later went public at $10 per share, has received FDA approval and started marketing its products. Montreux invests later in the company’s development with minimum science, clinical and market risk in a PIPE (Private Investment in Public Entity)…but what is VC doing investing in public companies….?

what happened to ptie on march 2 largest investor eastbourne sells 1m of 11m shares
Constance McKee

Business of Biotech 7

What happened to PTIE on March 2?Largest investor Eastbourne sells 1M (of 11M) shares
change the math for early stage investment shorten time to market minimize vc equity
Change the Math for Early-Stage Investment Shorten Time to Market & Minimize VC Equity

Constance McKee

Business of Biotech 7

$60 Million

ROI = 9%

ROI = (6%)

Capital

ROI = 24%

$20 Million

Time in Years

ROI = 24%

change the math for early stage investment strategies to accelerate exit minimize dilution
Change the Math for Early-Stage Investment Strategies to Accelerate Exit & Minimize Dilution

Constance McKee

Business of Biotech 7

thursday sources of equity non equity capital
ThursdaySources of Equity & Non-Equity Capital

Founders make money when…

Angel investors & venture capital

Pharmaceutical industry alliances

Federal grants

NIH - SBIR, STTR

(TIP)

Department of Defense - US Army, DARPA

Venture philanthropies & foundations

Ex-US

Constance McKee

Business of Biotech 7

biotech ipos canaries in capital markets the venture capital industry is not investing51
Biotech IPOs – Canaries in Capital Markets?the venture capital industry is not investing….

Constance McKee

Business of Biotech 7

biotech industry on the ropes darwinism isn t selecting out the best ideas
Biotech Industry – on the Ropes“Darwinism” isn’t selecting out the best ideas….

Constance McKee

Business of Biotech 7

opportunities for exit ipo market slammed shut in 2008 but not m a
Opportunities for ExitIPO Market Slammed Shut in 2008 – But Not M&A

Constance McKee

Business of Biotech 7

angel investors aren t always angelic the good the bad the ugly
Constance McKee

Business of Biotech 7

Angel Investors Aren’t Always (Angelic)The Good, The Bad & The Ugly
  • Good angel investors
    • Typically invest $50K - $100K
    • Anticipate that VCs will follow on – meaning, their terms anticipate VC terms
    • Understand they will be diluted
    • Have “deep pockets” – meaning, they can keep putting cash in
  • Bad angel investors
    • Demand terms that VCs will choke on later
    • Don’t understand your technology, your financing targets & waste HOURS of time asking for explanations
    • Leave you hanging when you need more capital
  • Ugly angel investors
    • Sure you want to know……?

For more reading on angel investors: http://www.nature.com/bioent/2004/041201/full/bioent839.html

http://wistechnology.com/article.php?id=4340

http://wsbe2.unh.edu/center-venture-research

venture capital vs private equity capital market conditions are blurring boundaries
Constance McKee

Business of Biotech 7

Venture Capital vs Private EquityCapital market conditions are blurring boundaries
  • Venture capital buys stock – key bet is increased value of equity
  • Fundamental assumption – value of equity mirrors value of underlying asset
  • But value of equity can be affected by
    • (1) capital market conditions, including global economic crises
    • (2) exit to make private shares liquid is Initial Public Offering (IPO)
    • (3) performance of similar biotech companies at & after IPO
  • Venture train wreck scenario – increased value in asset, as milestones met & risks decline, not reflected in stock price
  • Private equity buys assets – key bet is good management increases value
    • (1) value of deals *relatively independent* of capital market conditions
    • (2) exit most often sale to another company (“trade sale”)
    • (3) exit can be IPO
why pharma does venture capital fills the funding gap strategic focus
Constance McKee

Business of Biotech 7

Why Pharma Does Venture CapitalFills the Funding Gap & Strategic Focus
  • Amgen, Genentech, Pfizer all have corporate investment funds located in, and active in investing in California.
  • EMD Serono invests an early-stage fund alongside a strategic fund allied with the MS Society, “Fast Forward” – blends corporate & philanthropic strategies
  • The Pfizer Incubator www.thepfizerincubator.com combines funding with access to laboratory facilities in San Diego, with another facility mentioned for the Bay Area and one for Philadelphia. The funding commitment is $50 million.
  • Since 2005, Takeda has operated a well-respected venture fund located in Palo Alto that invests from the Takeda R&D budget.
  • Merck does not have a fund per se, but has a licensing group that is active in the Bay Area.
  • Baxter (Chicago) is rumored to be considering a corporate venturing fund.
  • Lilly Ventures operates out of Indianapolis.
  • Roche Venture Fund (Basel) has invested in 25 companies in ten countries.
  • Biogen Idec launched its venture fund in Boston in 2004 with a commitment of $100 million.
  • With a commitment of $2 billion, Novartis Venture Fund (Cambridge, MA and Basel) http://www.venturefund.novartis.com/ is one of the largest corporate venture investors, with investments in over 50 companies as of 2008.
why biotech does alliances access to capital validation
Constance McKee

Business of Biotech 7

Why Biotech Does AlliancesAccess to Capital & Validation
  • Discovery companies lack core competency in
    • Biological validation
    • Clinical development
  • Biotech lacks core competency in
    • Clinical development
    • CMC, GMP & manufacturing scale-up
    • Navigating FDA approval
  • Venture investors place enormous value on industry deals
    • Validate technology
    • Proxy for product value ~ proxy for financing valuation
    • Capital that VCs don’t put at risk themselves
pharma as source of capital biotech pharma deals credibility cash expertise
Constance McKee

Business of Biotech 7

Pharma As Source of CapitalBiotech-Pharma Deals: Credibility, Cash & Expertise
pharma as source of capital biotech pharma deals credibility cash expertise60
Constance McKee

Business of Biotech 7

Pharma As Source of CapitalBiotech-Pharma Deals: Credibility, Cash & Expertise

Biotechs took in $12 BN in Alliance Revenues from the top 20 pharma companies in the fifteen-year period 1987-2002 (n=1,848). Source: Recombinant Capital 2003, with permission.

750 drugs in development for cancer 2007 data includes overlapping trials
Constance McKee

Business of Biotech 7

750 Drugs in Development for Cancer(2007 Data – Includes Overlapping Trials)

www.PhRMA_NM_Cancer0828Pg1.pdf

constance mckee
Constance McKee

Business of Biotech 7

Constance McKee
  • Constance McKee is currently founder, President & CEO of Manzanita Pharmaceuticals, Inc (2007-present). Manzanita is the re-start of Asilomar Pharmaceuticals, Inc., an early-stage biotechnology company which filed for bankruptcy in June 2006. Manzanita is operating as a virtual company while seeking non-venture funding.
  • Constance is currently involved in the following other consulting and bioentrepreneurial activities:

Co-founder with Dr Jay Levy (UCSF) of California Antiviral Foundation, a start-up venture philanthropy to develop new therapies based on the CAF innate immune response in HIV/AIDS patients.

    • Board member, co-founder and past President, BioE2E, Inc., www.bioe2e.org, a 501(c)3 organization that has presented over 60 programs on topics of interest to bioentrepreneurs in the San Francisco Bay Area.
  • From 1990-1994, Constance was Chief Executive of Cambridge Quantum Fund I, a seed venture fund investing in technologies from Cambridge University (Cambridge, UK). From 1994-1995 she was co-founder and Chief Executive of SynGenix Limited, a portfolio investment of Cambridge Quantum Fund. From 1996-2001 she worked in the corporate venture capital group and in General Counsel’s office at Philips Semiconductors. From 2007-2008 she served as Co-Executive Director of Americans for Cures Foundation, a 501(c)3 organization dedicated to supporting advocates for stem cell research. www.americansforcures.org
  • In 1986-1987 she was a recipient of a Bosch Fellowship (Bosch III) which supported internships in corporate finance in Germany. She holds an MBA from Yale University School of Management, an MM from San Francisco Conservatory of Music (voice) and BA with distinction from Stanford University.
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