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					   The University of Pittsburgh
   Office of Enterprise Development, Health Sciences


Building Relationships: Business
Development at the University of
           Pittsburgh

                                   Andrew Remes, Assistant Director
                                    Office of Enterprise Development
                                              University of Pittsburgh
Conflicting Values - Common Interest
                      UNIVERSITY            INDUSTRY
  Knowledge for                                           Management of
 Knowledge’s Sake                                       Knowledge for Profit


                    Teaching
                                                     Profits
            Research           Commercialization
                               of New and Useful
            Service               Technologies
                                                   Product R&D
              Economic
              Development

  Academic Freedom                                       Confidentiality
   Open Discourse                                   Limited Public Disclosure
                 NIH Perspective
• CTSI
  •   National consortium
  •   Transforms conduct of clinical and translational research
  •   60 institutions in USA by 2012
  •   U. Pitt: $83.5M; 5 year award
  •   Rapidly translate research into clinical treatments


• Important goal of consortium is to forge new
  partnerships with pharmaceutical companies
             Discussion Areas
• Introduction to role of OED in commercializing
  University technologies
• BD in technology transfer
• Helping faculty protect their inventions
• Developing and marketing the value proposition
• Introducing faculty inventors to companies
• Company start up process
• Entrepreneurial educational programs for faculty
  and staff
                             Office of Enterprise
                                Development
Mission includes:

•                                                                 commercialization
       Support the University of Pittsburgh faculty in pursuit of commercialization
        •    Strategic, business planning
        •    Identify licensee and develop company start ups

•      Liaison for companies looking to engage with the University
        •    Develop collaboration

•                                                                    (Greenhouses, SBDCs)
       Trusted source of deal flow for economic development agencies (Greenhouses, SBDCs) and
       venture capital/angel community

•      Provide entrepreneurial education and access to resources


    Staff:
    Marc Malandro, PhD, Director
    Andrew Remes, PhD, Assistant Director
    Paul Petrovich, CPA, Assistant Director, technology Commercialization
    Amy Brunetto, MBA, Business Development Associate
    Michele Honko, MBA, Marketing Associate
    Karen Battle-Zellars, Administrative Coordinator
www.oed.pitt.edu
     Helping Faculty to Protect Their
               Technology
• Information must not be made public before a provisional patent is
  filed
    • Invention Disclosures do not protect the inventor from a public
      disclosure.
    • Publication in a Journal; thesis given by a PhD candidate
    • Non-confidential discussion with someone outside of the University

• Problem if University does not own the intellectual property
    • MTA assigns rights to another party
    • Inventor is not affiliated with the University

• Keep good records
• All Inventors are not listed on the patent application
    • not like a publication; inventors listed if they conceive of the idea
Overview of the Technology
Commercialization Pathway

   Research




  Invention                     IP
  Disclosure                Protection              Licensing



                  TTC                     Bus.
               Evaluation                Develop.
             Focusing University BD
                   Resources
• All BD occurs once we have a copyrighted technology or patent
  protection – what companies need!

• Not all patent protected technologies are at the same stage of
  development; some technologies are at an earlier stage than others
  and need more work to be of interest to licensees

• OED/OTM will stay in touch with inventors while they develop their
  technology to proof of concept; OED/OTM provides funds when
  appropriate for POC experiments

• OTM/OED focus commercialization resources on technologies with
  a strong value proposition and work with inventors to find a licensee
  or sponsored research partner
                     Technology Licensing Partnership
•    Movement from single licensing manager for a technology to a team approach
         •                                                              agreement
               LM seek potential company partners and negotiate license agreeme nt
         •     Commercialization Team
                    • Optimizes the process
                    • Assign licensing, business development, marketing, inventor – kick off meeting
                    • Formal BD process with reports occurs in 12 month following filing of PP
                                                                                  filing




                                                            OTM/OED Commercialization Process
                          LM assembles
                       Commercialization Team                                                                  Nat’l
                                                                   Progress Mtg.   Progress Mtg.               Phase
                                                                                    (Go/No-Go)
    ID                    TTC                            PP                                        Util. P.   (Go/No-Go)




         LM reviews                Commercial.        1.5 Mos.       5 Mos.           10 Mos.      12 mos.       30 mos.
            ID w ith              Team Meeting
          innovator

     ID = Inv ention Disclosure
     TTC= Technology Transf er Committee
     PP=Prov isional Patent Application Filed (4-6 wks post TTC)
           Introducing Technologies to
         Companies/Investors: The Value
                   Proposition
• OED/OTM work with inventors to build a value
  proposition (the marketing tool)

• A statement that addresses:
  •   What is the problem that needs to be solved?
  •   Who are the customers?
  •   How does the University technology provide a solution?
  •   How is the technology different/better than other available
      solutions ?
  •   What is the market size? What is the target market?
  •   Good science (publication in top journal); good IP
  •   Is it a platform technology that may be the basis of a start up
      company
       Value Proposition: Example
• Cohera Medical Inc. (University start up company)

• Inventors: Eric Beckman (polymer chemist) & Michael Buckley (Oral
  Surgeon)

• Invention: novel biopolymer, TissuGlue (improve the wound closure
  process by positioning tissues for optimal healing while minimizing fluid
  accumulation).

• Attributes: biocompatible, absorbable, self-curing, easy to apply,
  composed of synthetic materials instead of animal products, viscosity
  easily controlled, broad patent coverage obtainable, strong bond
          Value of New Technology
• Products currently on the market
  • “Superglue”-type products that are strong, but cannot be used inside the bod y
    because they break down into toxic by-products, and
  • “fibrin glue” products that are biocompatible but create a weak bond

• Value of TissueGlue (Differentiate new product
  from products already in the market):
  • first adhesive that meets the surgeon’s need for a strong, easy-to-use surgical
    glue that is safe for use inside the body. It is synthetic, biodegradable and
    requires no preparation.
  • the bond created with TissuGlue™ is as strong after one hour as a normal wound
    is after a week of healing.
  • because the adhesive is created from sugars and amino acids, the components it
    breaks down into are designed to be benign and to lead to virtually no immune
    system response.
                                     Market Size
• Several million surgical procedures per year, 3.7 million, could
  potentially utilize tissue adhesives (Frost & Sullivan)
   •   translates to a market of $1.5B


• Flexibility of proprietary chemistry allows Cohera to generate a family
  of products with differences in strength, set time, and resorption rate
  that will meet the varying demands of the market.

• Deciding on target market
   •   plastic surgery market. If focus on facelifts, eyelid surgeries and tummy tucks, preliminary market would
       include over 450,000 procedures (25% of the total annual plastic surgery procedures). With a 10%
                                                                          potentially
       product penetration of only this subset, annual revenues could potentially exceed $18M
   •                                                                      sutures
       expand into the $1.1B traditional wound closure market, where sutures and clips are being used due to
       the lack of good alternatives
   •   Hemofoam – Military market, biocompatible one -part foam that can be “ sprayed” into a wound, where it
                                                       one-                         sprayed”
       would foam and cure rapidly to control bleeding
         Marketing the Value
Inventor
             Proposition
  •   conference presentations
  •   publications
  •   elevator pitch
  •   OED is developing coaching materials to help inventors present
      their innovations to companies (coaching cards)


OTM/OED in Collaboration with Inventor
  •   building technology slicks (non-confidential)
  •   University press release
  •   technology newsletter
  •   markets technologies on its website
  •   attend biopartnering meetings; present inventor technologies
  •   coach inventors in delivery of elevator pitch
  •   develop relationships with VCs, entrepreneurs, local business
      community
Technology
Marketing
Document
(front)
Technology
Marketing
Document
(back)
                          Elevator Pitch
•   Definition: concise, simple, carefully planned, and well -practiced description
    about inventor’s technology
•   Goal: capture the attention of a potential licensee
•   Addresses:
     •   Introduce yourself
     •   What’s the idea? What is the technology?
         What’
     •   What’s the development status of the technology?
         What’
     •   What market does the technology address? Market size?
     •   Who are the competitors?
     •                                                                What
         Why technology is better than what is already on the market? What is unique
         about it? Scope of impact of technology on customers?
     •   What IP protection?
     •   What you want? A licensee to help develop the technology
     •   Provide contact Info.


•   While not as hard as a 15-or 20-minute presentation, a one-minute pitch
    reaches a much larger audience and deserves care and attention
  Proactively Identify Company & Contact
   -OED and Inventor Working Together-
• Identify a company
   •   who offers similar but complementary products?
   •   Who are the “ industry experts” in the field?
                              experts”
   •   Who might be looking for a way to disrupt a larger competitor?
   •                                                                company
       What stage does a technology need to be in development for a company to be interested?
   •                                                                  interests
       OED develops relationships with key companies; aligns research interests



• Where to look for a company?
   •                                              Medtrack,
       meetings, patents, papers, databases (i.e. Medtrack, Hoovers, Knowledge Express)


• Find an internal champion
   •   check the scientific advisory board
   •   check who is the PI on their clinical trials
   •   someone the faculty member knows
   •   presenters/attendees at conferences
   •   company scientist may identify faculty member
What Are Companies Thinking?
  …Could I sell this product to my current customer base?
  …Would this product complement my other product
   offerings?
  …How much time/effort/money will it take to get this to the
    market?
  …What are the risks and pitfalls of this technology?
  …Who will I be competing against in this market?
  …How will I convince my superiors that this is a good
    opportunity?
  …Can I get around this IP?
  …Do I have freedom to operate?
            OED Develops Programs to Help Catalyze
                       Collaborations
Speed Dating
   •                                                                  inventors
       fast, efficient method for introducing companies to University inventors and their technologies

   •                                                                 with
       company profiles sent out to faculty; faculty sign up to meet with companies

   •   academics have 15 min. “ dates” with a series of companies; have achieved over 150 meetings
                                dates”
       with 25 companies in a two hour time frame

   •                                                                  29th
       7th Annual Stem Cell Research Conference (Pittsburgh, October 29th & 30th); U. Pitt faculty
                                                                     participating
       have opportunity to meet with companies attending conference; participating faculty may attend
       conference free of charge

   •                                                                  cell/ regen.
       McGowan Institute annual retreat (25 companies working in stem cell/ regen. med. field attend)


Science 2007 Technology Showcase (October 11th, 5pm,
Lower Lounge of William Pitt Union)
   •   annual event; academic faculty apply to participate

   •   inventors and business mentors invited to participate

   •   University inventors paired with business mentors to develop bus iness proposition for inventor’s
                                                                    business                  inventor’
       technology (protected by provisional patent application)

   •                                                                investment
       inventor and mentor present technology to local business and investment community attending
       the event; poster presentation (not a science poster)
                Corporate Scholars Program
• New model for collaboration between business and academia led
  by the Provost’s office
• Companies invited to participate

• How does it work?
   • consultation between University and corporate partner to determine a
     research partner
   • six month segment where visiting scientist are invited to work with senior
     faculty member
   • special lecture series focused on innovation with nationally recognized
     experts

• Companies benefit by gaining access to Pitt resources:
   •   specialized labs and equipment
   •   talented students
   •   educational opportunities
   •   unique opportunity to be directly involved in University research
        OED Facilitate Development of Agreements
                      With Companies
OED – Relationship Management Group
• guide companies to University depts. and admin. offices they should be
working with (identify companies: meet companies at conferences OED attend,
companies contact University inventors)
• point of contact for any issues that may arise during development of a
company collaboration – can work with colleagues in sister University offices to
help move things along
• align company needs with University expertise and resources


Agreements Types and University Offices
•   Confidentiality Agreement (CDA, NDA) – OTM, OOR
•   Material Transfer Agreement (MTA) - OOR
•   Consulting Agreement – (between faculty member and company)
•   Sponsored Research Agreement (SRA) - OOR
•   License/option - OTM
Overview of the Technology
Commercialization Pathway

   Research




  Invention                     IP
  Disclosure                Protection              Licensing



                  TTC                    Start-up
               Evaluation                company
         Licensing Opportunity or
            Company Start-Up
       Licensing                               Start-Up
• technology likely lead to a        • platform or disruptive technology
  single product                     • seminal patent; broad patent
• small number of large firms that   coverage
  dominate the field                 • inventor willing to participate in
• capital requirements to enter      commercialization process
  the industry prevent start-ups     • strong science; publication in
  from being effective               noted Journal
• existing companies may be able     • product
  to get the technology to market    • freedom to operate
  faster
                                     • large market
                                     • unmet market need identified
                                     • mature stage of development
                                     (POC studies; animal data)
   How Do Companies Develop?

• Entrepreneur/company/investment group
  approaches University
• OED/OTM identifies technologies that
  could be the nucleus of a start-up
     Start-Up Development Process
Preliminary
                         Business Development                       Technology
technology
assessment                                                          progression

Market size; market    Introduce to regional resources   Build prototype
analysis               i.e. PLSG, IW
                                                         Undertake POC studies
Financial              Introduce to OED advisory
                                                         Consider SBIR/STTR funding
                       committee (VCs, angels etc.)
IP assessment
                                                         Consider management,
Competition                                              development funds
Stage of development



Resource:                Resource:                          Resource:
MBA students, OED        OED staff                          University gap funds
staff
                         OED advisory                       PLSG, IW funds
                         Committee
                                                            Angels, VCs
       Start-Up Development Process
  Evaluate                                               Company development
                                 Create start-up
  business                                               and technology
  opportunity                    company                 commercialization
 Identify mgt. team; board
                                 Company formation      Business plan
 Preliminary business plan and
 marketing plan                  IP/license agreement   Marketing plan (including target
                                                        market )
 Gain interest of investors      Company valuation
                                                        Next stage financing
 In depth IP evaluation
                                                        Investor presentation
 Large market
                                                        Board development
 Viable business model
 Small companies can compete
 Attractive gross margins                                  Resource:
                                                           Company resources

Resource:
VCs, angels, OTM, economic
development agencies (EIRs);
SBIR/STTR, OED
Selection of University of Pittsburgh
        Start-Up Companies


  70
  60
                                       66
  50
  40                                         Start Ups
  30                                         Cumulative Total

  20
  10
   0
       FY FY FY FY FY FY FY FY FY FY FY FY
       96 97 98 99 00 01 02 03 04 05 06 07
       Faculty Roles in New or Early
             Stage Companies
• Faculty Involvement in a Company
   • Holding of equity – limited to 20%
   • Sponsored Research from a Company – but may not serve as
     PI on a clinical or animal study if you own equity
   • Consulting relationship – over 10,000 annually requires COI filing
     and may restrict other roles
   • Scientific Advisory Board – but may not hold a management or a
     board of director position
   • Entrepreneurial Leave – at discretion of department chair
                               Courses & Lectures
• OED
  •   “From Benchtop to Bedside: What every Scientist Needs to Know”
                                                               Know”
        •                                                                  necessary
            designed to teach research scientists how to navigate the path necessary to bring a basic science
            discovery out of the University and into the clinic
        •   importance of IP as a barrier to competition
        •        proof-of-                                                          increase
            how proof-of-concept and validation experiments define the application, increase value, and reduce
            risk
        •   Identify funding sources
        •   Understand university policies

  •   Limbach Lecture Series – speakers with an academic background who have been
      successful in starting companies
        •   Fall series:
                • Mel Pirchesky, CEO Eagle Ventures “Approaching Angel Investors: How to get the money”
                         Pirchesky,                                                              money”

               •   George Pipia, BD Director MedImmune "Evaluation of new opportunities and partnerships with
                                                                                 company“
                   academic institutions from the perspective of a biotechnology co mpany“

               •                                                             Capital       Start-
                   Carolyn Green, COO, Logical Therapeutics "Raising Venture Capital for a Start- Up: How
                   Logical Therapeutics Raised $30M ”

  •   Bi-weekly newsletter – links to articles on entrepreneurship
      Bi-

• OTM
  •   “ Academic Entrepreneurship: The Business of Commercial Innovation”
                                                              Innovation”

  •   Pitt Innovator Primer Seminar Series – addresses commercialization process at Pitt, IP
      protection, marketing faculty innovations to industry, licensing process
                          Conclusions
• OED and OTM are working closely together to
  Commercialize University technologies
• Successful technology transfer requires a team approach
  between OED/OTM and the researcher/inventor
       • often it is the PI's knowledge, contacts, and ongoing interactions with
         their technical counterparts in the licensing company that help close
         agreements and turn the invention into a product

• OED is point of contact for
   i) any issues that may arise during development of a company
      partnership
   ii) faculty member who want to explore forming a start-up company
   iii) faculty who would like to learn more about entrepreneurship and how
       to approach companies to commercialize their inventions
   iv) companies who want to work with U. Pitt
Contact Information

Andrew Remes, Assistant Director
Office of Enterprise Development, Health Sciences


University of Pittsburgh
412-623-3208

remesad@upmc.edu

www.oed.pitt.edu

				
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Description: The University of Pittsburgh Facelifts