Imperial Innovations Group plc 4 th and 5 th July 2010 Technology Transfer Officer Training Identifying Commercially Viable IP in a Research Institute Creating, building and investing in ground-breaking technology opportunities addressing large international markets Imperial Innovations Group plc
Target: one large exit per year, with two to three smaller exits
Successful realisations, e.g. Thiakis, Ceres Power and RespiVert
1.2 Introduction to Imperial Innovations Wednesday 14 July 2010
1.2 Introduction to Imperial Innovations Innovations Group plc Wednesday, July 14, 2010 2008 Innovations realises £4.0 million from partial Ceres Power sale Created FSA regulated subsidiary , Imperial Innovations Investment Management Ltd Circassia raises Series B £11.0 million Thiakis sold to Wyeth for £100.0 million RespiVert raises Series A £13.0 million The business The portfolio 2010 Veryan Medical raises £3.6m Polytherics raises £3m MET sold to Evonik AG for €4.5m RespiVert sold to Centocor (J&J) for $100m 2004 Ceres Power floats on Alternative Investment Market 2006 £26m Imperial Innovations Group plc floats on AIM raising £26 million Inforsense raises Series A £5.3 million 2005 Private Placement of shares in Imperial Innovations raises £10 million for the Company £10m Thiakis raises Series A £10.0 million 2007 £30m Raised £30 million through private placement of shares Circassia raises Series A £6.25 million Nexeon raises Series A £4.25 million Veryan raises Series A £5.3 million 2009 Nexeon raises Series B £10.0m Inforsense sold to IBDS Circassia raises Series C £15.25 million
Exclusive access to pioneering technologies from Imperial College London
Early-stage visibility enables rapid protection of promising IP
Direct and knowledgeable engagement with scientists
Optimise company formation around IP
Focus on technologies with global, multi-£billion market potential
Extensive due diligence
In-house, multi-sector expertise combines scientific knowledge with investment expertise
Healthcare and engineering advisory boards add deeper specialist insight
Constant dialogue with industry on future needs enhances knowledge base of start-up
Provide incubation and other facilities for new companies
19 companies currently in incubator
Provide operational and business support
Competitive advantage over VC model
Bridges cultural gap between scientists and investors
Investment and support Assessing market opportunity Wednesday, July 14, 2010
Investment and support Matching management with scientific talent
Strong emphasis on recruiting world-class management to work with founder scientists
Preference for serial entrepreneurs with domain knowledge
Incentives aligned with shareholders
Entrepreneurs in residence help Innovations identify promising start-ups
Benefits from Innovations’ extensive contacts networks
Recruitment partners extend reach
Wednesday, July 14, 2010
Investment and support Staged funding – major rounds completed Wednesday, July 14, 2010 2006 2007 2005 2008 2009 Total £0.5m IVO £0.25m Total £10m IVO £1.5m Total £11m IVO £1.75m Total £13m IVO £2m Total £3.1m IVO £2.2m Total £10m IVO £4m Sold £100m IVO £16.1m Total £3m IVO £1m Total £2.6m IVO £2.5m Total £15.3m IVO £3.75m 2010 Total £3.6m IVO £1.2m Sold IVO £9.5m Total £4.3m IVO £1.95m Total £6.3m IVO £2.0m Total £0.9m IVO £0.3m Total £2.6m IVO £0.5m
1.2 Introduction to Imperial Innovations Successful Realisations
Cash realisation proves the model works
Big exits - Thiakis
Invested £1.5m in 2006 as part of £10m round
Sold to Wyeth (Pfizer) for £99.4m in 2008
Net potential realisation of £16.1m from equity, plus royalties
Invested £2m as part of a £13m investment round
All cash realisation of £9.5m upon sale of 13.4% stake to Centocor (J&J)
Domestic fuel cell pioneer
Retains 2.7% stake, realised £7.7m to date
Begun to harvest smaller exits – not just dependent on the big ones
Heliswirl sold to Technip for downstream royalties
Inforsense sold to IDBS for £5m
Membrane Extraction Technology sold to Evonik AG for €4.5m
Some technologies are more appropriate for licensing to industry leaders
Economic environment still impacting on fees but deals done
1.2 Introduction to Imperial Innovations Licensing update Wednesday, July 14, 2010 Licensing highlights – deals concluded Novartis Vaccines and Diagnostics Novel Meningitis B Vaccine candidate Future Fuels Licence for 'Green coal' technology using recycled waste Cell Medica Exclusive licence for T-cell platform technology to generate specific t-lymphocytes for treatment of infection and cancer Medtronic Option agreement for treatment of sleep apnoea through pacemaker timing Medimmune Supply agreement for reagents for COPD and asthma markets
1.2 Introduction to Imperial Innovations Progress in Prospective Next Ten Wednesday, July 14, 2010
Next generation biopolymers
Raised £1.6m, investment £0.4m
TSB Award of £0.3m
Appointed Martin Riediker, Former CTO of Ciba Inc.
Raised £2.2m, investment £0.77m
Appointed Ian Brown as CEO and Stephen Rietiker as Chairman
3 rd Generation solar cells for CPV
Raised £4.5m, investment £2.0m
Produced the most efficient single junction solar cell independently tested by Fraunhofer ISE achieving 28.3% efficiency
Therapeutic for wasting diseases inc cachexia
Raised £5.6m, investment £2.3m
Commenced Phase II clinical trials
1.2 Introduction to Imperial Innovations Maturing Portfolio: Nexeon
Silicon anodes for lithium-ion batteries
Nexeon is developing anodes which will lead to batteries with significantly higher energy density and longer lifetime between charges.
Lithium ion (Li-ion) batteries are a commonly used type of rechargeable battery with a global market estimated at $8bn in 2008 for laptops and mobile phones. Independent market analyst Takeshita predicts that the market will grow to $30bn by 2017.
Wednesday, July 14, 2010 The Company The Progress £6.2m £11.3m 35.0% November 2009 – Evonik Degussa Deputy Chairman and CTO Joins Nexeon Board December 2009 – revealed plans to commercialise lithium-ion technology. January 2010 – UK consortium including Nexeon was awarded £1m by Technology Strategy Board to develop new high energy density battery chemistry for plug-in electric vehicles March 2010 – achieved important milestone as cells successfully completed 500 full charge / discharge cycles at capacity of 1200mAh/g (4x the capacity of conventional carbon-based anode technology) without significant fade being observed. Cost Value Equity share
1.2 Introduction to Imperial Innovations Maturing Portfolio: Circassia
T-Cell vaccines to treat allergies
Circassia is developing a range of ToleroMune® vaccines. Its patented approach involves administering sections of the molecules that cause allergic reactions to desensitise sufferers.
The company has four Phase II trials underway targeting cat, ragweed and house dust mite allergies and plans to initiate further studies in the coming months extending the portfolio into the field of grass allergy.
Wednesday, July 14, 2010 The Company The Progress Cost £7.5m Value £13.4m Equity share 14.2% November 2009 – announced successful results from its Phase II clinical study in which its ToleroMune® T-cell vaccine for cat allergy dramatically reduced allergy symptom levels. December 2009 – raised £15.25m in oversubscribed round Dec 09 led by Innovations. January 2010 – initiated phase II clinical trials targeting house dust mite and cat allergies. February 2010 – announced positive Phase II clinical results with its vaccine for Ragweed allergy.
1.2 Introduction to Imperial Innovations Exit: RespiVert
Inhaled treatments for serious lung disease
RespiVert has made strong progress in developing a new generation of inhaled treatments for serious lung diseases.
As well as reducing inflammation, these drugs are expected to prevent and control exacerbations and inhibit infection induced by human rhinovirus, influenza and other respiratory viruses.
Wednesday, July 14, 2010 The Company The Progress IVO Investment £2.0m Return to IVO £9.5m December 2009 – filed number of patents in 2009 which include chemical composition of matter and biological mode of action. January 2010 – confirmed that product profile is expected to be once daily inhaled administration used stand alone or in combination, targeting a first-line anti-inflammatory therapy for all patients with COPD. January 2010 – announced plans to commence Phase I single ascending and repeat dose studies using both inhaled and intranasal delivery. June 2010 – sold to Centocor Ortho Biotech, a Johnson and Johnson company
1.2 Introduction to Imperial Innovations Polytherics – replenishing “the 6”
PEGylation to optimise drug duration
PolyTherics is using biomedical polymers to optimise biopharmaceuticals for the treatment of the world’s most important diseases.
TheraPEG™ technology (site-specific PEGylation) can modify natural properties of protein drugs (including antibodies), for example increasing the duration of action in the body, without compromising biological activity.
Wednesday, July 14, 2010 The Company The Progress Cost £2.75m Value £3.0m Equity share 35.0% July 2009 - patent allowed covering the targeted PEGylation of proteins by the US and Europe. October 2009 - Sally Waterman appointed Chief Operating Officer and Jeff Edwards also joined as Director of Development February 2010 – raised £3.0m in a round led by Innovations March 2010 – collaborative research deals announced with Minapharm, Celtic Pharma and Zealand Pharma April 2010 – awarded TSB grant to develop a low cost way of producing fusion proteins using its linker technology
1.3 Introduction to Commercialisation Wednesday 14 July 2010 Project Pipeline Project Development Investment Build Relationships Invention Disclosure & Commercial assessment Validation of Market Need Spin-out Pre-Seed Seed and Incubation Post Seed and Exit
4.1 Core Skills for a TTO Working with Academics Wednesday 14 July 2010
4.1 Core Skills for a TTO Working with Academics Wednesday 14 July 2010 4 Product Scale 5 Project Attractiveness Component/Sub Assembly Single application product Platform or multiple application product Target Markets 1 2 3 Target Markets 1 2 3 Target Markets 1 2 3 <£1m £1-5m £5-10m £10-50m £50-100m £100-500m >£500m
4.1 Core Skills for a TTO Working with Academics Wednesday 14 July 2010 6 What is the Technology Readiness Level (TRL)? Stage Duration Cost Potential Source of Funding Identified? PoC Demonstrator to sell the technology to a commercial partner <1yr <£25k 1-3yrs £50-100k >3yrs >£100k To produce field trial demonstrators and conduct field trials <1yr <£100k 1-3yrs £100-250k >3yrs >£250 To produce launch a product (i.e. first sales) <1yr <£250k 1-3yrs £250-£500k >3yrs >£500k 1 2 3 4 5 6 7 8 9
4.1 Core Skills for a TTO Working with Academics Wednesday 14 July 2010 Technology Readiness Level 1. Basic principles observed and reported 2. Technology concept and/or application formulated 3. Analytical and experimental critical function and/or characteristic proof of concept 4. Component and/or breadboard validation in laboratory environment 5. Component and/or breadboard validation in relevant environment 6. System/subsystem model or prototype demonstration in a relevant environment 7. System prototype demonstration in an operational environment 8. Actual system completed and 'flight qualified' through test and demonstration 9. Actual system 'flight proven' through successful mission operations
4.1 Core Skills for a TTO Working with Academics Wednesday 14 July 2010 7 Competitive Intensity 8 IP Strength Low High Weak Strong Unmet technical need no other supplier has anything comparable A new emerging technology area with few established suppliers An established but dynamic market with several high market share suppliers Mature market where the new technology is an alternative readily available to existing products/technologies Many similar suppliers/products with similar features/benefits and strong incumbent positions in mature markets IP is largely published but some know how/copy right IP remains Nothing patentable, but high level of unpublished know how/copyright Patentable but with narrow claims, not much know can be developed Patentable, with fairly wide claims, know how needs to be developed and there is a high level of related prior art Broad patent with high degree of freedom to operate and know-how required
4.1 Core Skills for a TTO Working with Academics Wednesday 14 July 2010
6.1 Case Study from Imperial Innovations Veryan Medical
Stents with 3D helical shape
Veryan uses 3D geometry in the design of a novel range of stents which mimics the body’s natural tendency to create swirling blood flow. This reduces restenosis (clogging of blood vessels) but also improves fracture resistance.
Wednesday, July 14, 2010 The Company The Progress Cost £5.2m Value £6.2m Equity share 55.7% February 2010 - start of First-in-Man study for BioMimic 3D stent at Herz Zentrum, Bad Krozingen, Germany. March 2010 – raised £3.6m in round co-led by Innovations and new investor, Seroba Kernel Life Sciences. March 2010 – initial results of first in human man study were excellent and appear to confirm the attributes that Veryan had seen in pre-clinical studies.