Why would anyone want to leave academia and go into the commercial sector?

1. IBT Laboratories – A Journey From A Basic Science Research Career To A Business Career in Clinical Immunology 11274NETPRESENTATIONS/KUMC05/29/08

2. Why would anyone want to leave academia and go into the commercial sector?

3. An Academic Career Has Many Advantages? • Close to the frontier of knowledge in a variety of disciplines • Surrounded by many bright and stimulating scientists • Freedom to pursue any area of interest • Opportunity to pursue in depth a field of interest and become “the recognized expert” • Teaching and working with students can be very gratifying

4. There Can Be Disadvantages in an Academic Career • Always competing for grant support • Funding is getting tighter • Life without a grant in an academic institution can be difficult • Although academic salaries are good, there is not much upside potential

5. What are some of the options for a scientist in the commercial sector? • Type of Industry? • Pharmaceutical Company • In Vitro Diagnostic Company • Contract research & testing laboratory • Contract research organizations • Clinical laboratories • Size of Company? • Start up or established company • Big company (40,000) • Small company (< 1,000)

6. Commercial Career May Have Advantages? • Salary and upside earnings are usually better (e.g. bonuses, options and profit sharing) • Work on projects that the public cares about • Opportunity to do something that more directly impacts patient care • Project funding can be much quicker • Funds readily available for travel to meetings

7. There are Some Disadvantages with a Career in the Commercial Sector • Research projects can be changed or terminated by corporate management • The company’s strategic goals can be altered by factors outside of the company’s control • Companies get merged and acquired • Good science is not enough to keep a project going. It has to generate revenue sometime • It is a one way street – usually not possible to go back to academia • Too much travel

8. Graduate School (JHU) & Post Doctoral Research (UVa & MUSC) Faculty Positions (OU & KU Medical) KUMC research in mucosal immunology, synthetic vaccines & IgA metabolism Consulting Vancouver meeting changed my career view Start up - a clinical laboratory focused on allergen-specific IgE testing Beg/borrow start up money from family and friends Sign a lease and start and forget about a salary IBT from 1984 to 2008 A lot of work with a number of diversions along the way e,g, IVD manufacturing, Environmental testing, Consumer laboratory Personal Career Path Taken

10. Nature of Business:Research-Based Clinical Lab and Pharmaceutical Services Business and a Custom Reagent Business Primary Expertise:Development and commercialization of unique assays for cellular and molecular immunology and immunogenomics History:Founded in November 1983. 100% founder-owned until Ampersand Ventures’ investment in November 2004 2007 Revenues: $10.7MM 2008 Revenues: $15MM(Projected) Company Size: 72 FTEs (80 Employees) Customers:Major Clinical Labs, Pharmaceutical Companies, CROs, Hospitals, University Medical Centers (clients in 50 states, Europe, Asia, South America) Facility: Modern 26,500 ft2 lab and office space (occupied in August 2004) IBT Laboratories - Today

12. Immunology Biomarkers Specific Immunoglobulins, Inflammatory Mediators, Cytokines, Allergy Innate Immunity Cellular and Molecular (e.g. MBL and TLRs) Cellular Immunology Lymphocytes, Basophils, Eosinophils, Phagocytes, Cell signaling pathways Laboratory Focus

13. John F. Halsey, PhD, CEO and Founder Licensed Clinical Immunology Lab Director Previous, (Interim President of IncStar Corp & Faculty at Univ. Kansas School of Medicine) Johns Hopkins University and University of Virginia Rene Pfaltzgraff, BS, MT, Vice President for Laboratory Operations Clinical Reference Laboratory (CRL) Osborn Laboratories Joanne Parker, PhD, Director of Pharmaceutical Research Services Cellular/Cancer Immunology (Biomira, Inc. Globeimmune, Inc.) Mark Colwell, M.S., VP of Quality Systems Product development & regulatory affairs (Meloy Laboratories, ProGene Corporation) Michelle Altrich, PhD, Director of New Test Development Cellular/Cancer Immunology University of Nebraska & University of Virginia Marilyn Smith, PhD, Senior Scientist Virology and Cellular Immunology Post Doctoral at UNC, Clinical Researcher Montreal, Faculty, KUMC Dominic Warrino, PhD, Senior Scientist Clinical Immunology, Flow Cytometry Streck, Inc and University of Pittsburgh School of Medicine Rebecca Horvat, PhD, KUMC Associate Director of Clinical Microbiology and Immunology University of Kansas School of Medicine Technical Operations Team

14. Flow Cytometry - Beckman Coulter, Guava Microbead Array - Luminex PCR - ABI and Roche Gene Sequencing - ABI Elispot - CTL ELISA – Bio-Tek Luminometry – PhL Light and Fluorescence Microscopy – Olympus Radioimmunoassay – Perkin Elmer Electrochemiluminescence Microarray - Meso Scale Discovery Rate Nephelometry – Beckman Immage Allergy – Phadia ImmunoCAP Fluorescence Immunoassay – Molecular Devices Cell Culture Automated Immunoanalyzer – Siemens DPC Current Technology Platforms

15. Clinical Reference Lab Business

16. Confidential Top Five Clinical Lab Clients (2007) Client Quest Diagnostics Laboratory Corporation of America ARUP – Salt Lake City Mayo Medical Labs - Rochester PAML - Spokane

17. Unique test menu (sole provider of some tests) Long term, contractual relationships with major national labs (e.g. Quest, LabCorp, ARUP, Mayo) History of commercializing new tests via internal R&D and academic collaborations Successful marketing to clinician “end user” Ability to provide the high level technical support needed for the specialized menu What Drives the Clinical Lab Growth?

18. Latex Allergy Test Pneumococcal Serology Innate Immunity – MBL and TLR Genotypes BasoFunction™ test for drug allergy CU Index™or Autoantibody Test for Chronic Urticaria Examples of New Tests Launched by IBT

19. Close relationships with the physician specialists who order the tests Active participation at meetings and conferences Research partnerships with specialists at medical centers throughout the world Significant investment in the new test development IBT team of immunology scientists In-licensing of technology from IVD companies with new tests and technologies Where Does IBT Find New Tests?

20. Pharma Services Business

21. FDA driving an immunotoxicology focus Pipeline of drugs targeting the immune system Use of immunological biomarkers increasing Pharma doing more outsourcing FDA and industry focus on companion diagnostics A revival of thevaccinedevelopment business Key Trends Driving IBT’s Pharma Business

22. Immunogenicity Immunosuppression Autoimmunity Hypersensitivity/Allergy Adverse Immunostimulation From the US FDA Guideline, “Guidance for Industry: Immunotoxicology Evaluation of Investigational New Drugs”. Immunotoxicology

24. A clinical laboratory career can be an exciting learning experience It is likely to be a fast-changing, dynamic career Being a consultant to physicians who are taking care of patients can be rewarding There is an opportunity to train and help develop young scientists interested in applied immunology The financial rewards can be good Summary Comments

25. Adaptability – willing to change directions Major time commitment and family support Not be intimidated by what you do not know Willingness to take risk Get over the arrogance of the ivory tower Singles, doubles & home runs Interest in gaining business knowledge: Accounting & Finance Law Operations Regulatory affairs Management Marketing & Sales What Personal Characteristics Can Be Helpful In A Commercial Career?