1 / 20

20 February 2008

Venture Capital and the Biotechnology Industry. Paul Rodgers. 20 February 2008. Amgen: a capital venture. World’s largest biotech company Founded 1980 $19 million venture capital investment 2007 Financial Year $14.8 billion revenues $4.8 billion profit (before tax)

zander
Download Presentation

20 February 2008

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Venture Capital and the Biotechnology Industry Paul Rodgers 20 February 2008

  2. Amgen: a capital venture • World’s largest biotech company • Founded 1980 • $19 million venture capital investment • 2007 Financial Year • $14.8 billion revenues • $4.8 billion profit (before tax) • Market capitalisation: $51 billion

  3. Venture Capital • Invest in: • Private companies with high growth potential • Launch, early development, or expansion • Management buy-outs and buy-ins • Raise funds for investment from: • Private and public pension funds • Endowment funds • Foundations, corporations, wealthy individuals • Looking for >5-fold return on investment within 5 years

  4. Venture Capital • Profit and risk sharing(high risk – high return) • 10 to 15% of portfolio will give very high returns • Detailed due diligence • High level of hand holding • Ownership and control of business shared • Patient, flexible financing (5-7 years to exit) • Highly selective financing – importance of deal flow

  5. Exit Strategy • Exit through the stock exchanges (“IPO”) • Sell to another VC company/strategic investor • Strategic mergers and acquisitions • Issues in Exit :- • Minimum return expected by VC fund. • Minimum equity size for public issue

  6. Venture Capital: Relevant Numbers

  7. Funding of Biotech Start-ups Initial finance Seed finance 1st VC round Formation Founders, family & friends Business angels; University Challenge Funds; specialist VC’s; grants

  8. Features of Biotech Start Ups • Innovative technology/products • High R&D component • High intangible component - intellectual property • Failure rates can be high • Long product development time • Long gestation period, initial cash flow low • Patient financing • Evaluation of management team critical

  9. What Merlin Looks For • World-class management, proven track record • Products that address major needs • Access to range of technologies: product stream • Proprietary position on technology or product • Corporate alliances with market leaders • Realistic valuations • Clear and credible business strategy with exit plan • Strong near-term milestones

  10. PSYNOVA NEUROTECH LTD A CNS DIAGNOSTICS COMPANY CONFIDENTIAL

  11. Psynova’s Unique Selling Points • Bahn lab (Psynova’s “basic research division”) • World leading expertise in a wide range of “state of the art” profiling technologies • Focus on large scale, label free LC/MS proteomic approaches to identify protein and peptide biomarkers detectable in blood • Clinical insight/Valuable world wide clinical network to enable sample access • SMRI and other academic funds >$8-10m over next 5 years • Unique Biobank - 1000s of relevant samples e.g. Drug naive first onset schizophrenic CSF & serum, discordant monozygotic twins, drug treated, first onset patients, etc • Lowe lab • Proteome fractionation – unique affinity reagents • Diagnostics expertise • PsyDataTM • unique asset • database of all biomarker data mined from Biobank • “Framework” IP agreement with U. Cambridge to all output from Bahn lab CONFIDENTIAL

  12. The Opportunity • 7% of world population affected by schizophrenia, bipolar disorder or major depressive disorder • >15% of burden of disease in established economies • Schizophrenia alone costs US$40-60B pa (USA) and $10-52B (Europe • “Schizophrenia affects 1% of the population, accounts for 1/4 of all mental health costs and takes up 1/3 psychiatric hospital beds” - Dr Richard Wyatt, NIMH (US) • Early intervention greatly improves clinical outcomes • Early diagnosis is a clear unmet clinical need • Schizophrenia first priority but potential to develop a range of specific diagnostic tests for bipolar, depression, etc CONFIDENTIAL

  13. Early Intervention Current DSM-IV diagnostic methods Psynova’s Diagnostic • Psynova Dx • Objective diagnosis • Duration of untreated psychosis (DUP) greatly reduced • Early therapeutic intervention possible • Less severe symptoms • Faster recovery ‘plateau’ First positive symptoms Severity of symptoms DUP 1-3yrs Prodrome Critical period Time Time from prodrome to diagnosis > 3-8 years CONFIDENTIAL

  14. DISORDERS SCHIZOPHRENIABIPOLAR DISORDER MAJOR DEPRESSION AUTISM OCD ADHD ALZHEIMER’S DOWN’S SYNDROME HUNTINGTON’S DISEASE PARKINSON’S DISEASE SLEEP DEPRIVATION BIOMARKER DISCOVERY: Our Strategy CNS Post-mortem brain tissues Cerebrospinal fluid CSF CSF PLASMA SERUM WHOLE BLOOD URINE T-CELLS FIBROBLASTS ERYTHROCYTES LIVERSPLEENDURA MATER PERIPHERAL TISSUES In order to address questions of disease specificity of a given biomarker it is important to investigate several CNS disorders simultaneously

  15. EXAMPLE BIOMARKERS from SERUM 2 proteins identified in CSF are also biomarkers in serum serum • ELISA confirmation of • Schizophrenia expression changes for 2 serum biomarkers discovered on MS platform • 2 markers predict membership of first-onset, drug naïve Schiz group • sensitivity = 89% • specificity = 73%

  16. PCA 3 2 1 t[2] 0 - 1 - 2 - 4 - 3 - 2 - 1 0 1 2 3 4 5 6 t[1] EXAMPLE BIOMARKERS from SERUM 1700 proteins identified in serum following depletion of 20 most abundant proteins (comparable with labelled approaches; but one dimensional chromatography) • PCA Plot • Schizophrenia expression changes for 2 serum biomarkers discovered on LC-MS platform • 2 markers predict membership of first-onset, drug naïve Schiz group • sensitivity = 80% • specificity = 72%

  17. Commercial Strategy I $M

  18. Commercial Strategy II:Likely Products • “Home Brew” screening product to aid in diagnosis of schizophrenia • Market directly to psychiatrists • Use to obtain clinical data for regulatory approval • Co-development, revenue sharing agreement with a US based, CLIA-certified biomarker company • In Vitro Diagnostic to aid in the diagnosis of schizophrenia • Licensing deal with large Dx company • Won’t come to market until after clinical trials, regulatory approval • Potential “home brew” patient monitoring screening product in schizophrenia • To monitor disease progression and/or drug response • Repeat cycle for bipolar, depression etc • Biomarker panels for R&D collaborations with pharma companies

  19. MILESTONES & TIMELINES

  20. SUMMARY • Illnesses such as schizophrenia are a major burden to healthcare systems and society • Diagnostic tests for severe mental illness are major unmet needs • Psynova has a competitive advantage in developing biomarker diagnostics for neuropsychiatry • Schizophrenia projects furthest advanced but activities in BD, MDD, ADHD, autism ongoing/planned • Potential collaboration opportunities in drug discovery and/or development applications of biomarker approaches • Psynova open to new collaborations in CNS biomarker discovery

More Related