Challenges Facing Early Stage Medical Technology Companies IVEY Medical Technology Innovation Symposium June 10, 2011 Pres...
Who is MaRS Innovation? <ul><li>Leveraging the MaRSDD business platform, the mission of MaRS Innovation is to aggregate th...
MaRS Innovation Members
MaRS Innovation Mission and Vision <ul><li>Integrate our members’ discoveries and resources </li></ul><ul><li>Leverage gov...
  MaRS Innovation is a Network Centre of Excellence - Centre of Excellence in Commercialization and Research We have an in...
Logistics Sourcing & Screening Opportunity Assessment Commercial Launch Start-ups Licensing Research  Partnerships Marketp...
What Do (Early Stage) Medical Technology Companies Need to Succeed? <ul><li>A cost-effective, compelling technology (produ...
Academic Environment: Scientific Publications & Citations Source: Science & Engineering Indicators 2006, US NSF;  OCS Publ...
Innovation: Canada is 8th in Med. Dev., 7 th  in Biopharma Source: USPTO analysis by ILSI
Research Excellence in Canada RESEARCH EXCELLENCE Over  $1 billion has been invested in new research facilities  in Ontari...
Risk Management Perspective Companies need to understand, plan for, and manage the risks that they face Technology Risk Ma...
Market Risk <ul><li>Competition, competitive positioning, competitor response (including “FUD”) </li></ul><ul><li>Pricing ...
Technology Risk <ul><li>“ Right” product specs </li></ul><ul><li>Forgot about the laws of physics  </li></ul><ul><li>Mr. M...
Execution Risk <ul><li>Team (acquisition, motivation, retention, skillset) </li></ul><ul><li>Product development  pitfalls...
The Financing Gap in Canada Time Low Investment & Risk Sales Low High High Risk Sales Investment MaRS Innovation  Grants A...
Role of Government in Early stage VC Fund <ul><li>At this stage need leverage from industry and government to support priv...
 
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Joel Liederman

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  • Inadequate support at the earliest stages of commercialization means that many Canadian discoveries are not transitioning to the culture of commerce. Infrastructure funding has been primarily dedicated to basic research and not on product development.
  • Joel Liederman

    1. 1. Challenges Facing Early Stage Medical Technology Companies IVEY Medical Technology Innovation Symposium June 10, 2011 Presentation by Joel Liederman, Vice President
    2. 2. Who is MaRS Innovation? <ul><li>Leveraging the MaRSDD business platform, the mission of MaRS Innovation is to aggregate the research output of 16 leading institutions across Toronto in order to harness the economic potential of the best opportunities. We are strategically positioned at the market-facing end of conventional technology transfer. </li></ul>
    3. 3. MaRS Innovation Members
    4. 4. MaRS Innovation Mission and Vision <ul><li>Integrate our members’ discoveries and resources </li></ul><ul><li>Leverage government and private sector support </li></ul><ul><li>Transform the most promising technologies into profitable products and services for the global market </li></ul>
    5. 5. MaRS Innovation is a Network Centre of Excellence - Centre of Excellence in Commercialization and Research We have an initial 5 year mandate - $15M Federal Government & $10M from Members Building Next Generation Start-Ups in Ontario Improving Commercialization Output from Members (Universities & Hospitals) MaRS Innovation is Different from MaRSDD
    6. 6. Logistics Sourcing & Screening Opportunity Assessment Commercial Launch Start-ups Licensing Research Partnerships Marketplace Industry Partners Angels VCs SMEs Research Collaborations MaRS Innovation Member Institution’s TTO’s disclose ALL Invention disclosures – Dec 1, 2008
    7. 7. What Do (Early Stage) Medical Technology Companies Need to Succeed? <ul><li>A cost-effective, compelling technology (product or device) that meets a real, growing, global need of customers that have the capacity and willingness to pay </li></ul><ul><li>A sustainable competitive advantage </li></ul><ul><li>A team able to design, develop, build , secure regulatory approval and sell the product </li></ul><ul><li>The necessary funding to carry the program through to cash flow breakeven </li></ul>
    8. 8. Academic Environment: Scientific Publications & Citations Source: Science & Engineering Indicators 2006, US NSF; OCS Publications in leading LS Journals* per capita * Nature, Science, The Cell
    9. 9. Innovation: Canada is 8th in Med. Dev., 7 th in Biopharma Source: USPTO analysis by ILSI
    10. 10. Research Excellence in Canada RESEARCH EXCELLENCE Over $1 billion has been invested in new research facilities in Ontario since 2005 1 . More than $2 million/day is spent on health research in Ontario 2 . Key discoveries include: insulin, stem cells, the T-cell receptor, and genes for cystic fibrosis, epilepsy, breast cancer and Alzheimer's Disease 2 . 1.) Collaborate and discover: Ontario’s Biopharma Cluster; 2.) “Life Sciences in Ontario: Rx for Growth” <ul><ul><li>Canada has achieved research excellence through a concentrated investment in basic science and related infrastructure. </li></ul></ul>Discovery Proof - of - concept Product Development Market - ready Product Marketed Innovation Global Marketplace Viable Opportunities Supply of Research Ideas & Innovation
    11. 11. Risk Management Perspective Companies need to understand, plan for, and manage the risks that they face Technology Risk Market Risk Execution Risk
    12. 12. Market Risk <ul><li>Competition, competitive positioning, competitor response (including “FUD”) </li></ul><ul><li>Pricing model </li></ul><ul><li>Channels to market </li></ul><ul><li>Feature set (minimum set for product launch) </li></ul><ul><li>Macro economic trends & factors </li></ul><ul><li>Government regulations (or lack thereof) </li></ul><ul><li>Selling to the government </li></ul>
    13. 13. Technology Risk <ul><li>“ Right” product specs </li></ul><ul><li>Forgot about the laws of physics </li></ul><ul><li>Mr. Murphy </li></ul><ul><li>Intellectual property (freedom to operate) </li></ul>
    14. 14. Execution Risk <ul><li>Team (acquisition, motivation, retention, skillset) </li></ul><ul><li>Product development pitfalls </li></ul><ul><li>Reliance on critical suppliers </li></ul><ul><li>Regulatory </li></ul><ul><li>Clinical trial challenges </li></ul><ul><li>Intellectual property (sword & shield) </li></ul><ul><li>Focus (too much, too soon vs. too little too late) </li></ul><ul><li>Product launch </li></ul><ul><li>Funding </li></ul>
    15. 15. The Financing Gap in Canada Time Low Investment & Risk Sales Low High High Risk Sales Investment MaRS Innovation Grants Angels Technology Start-up Growth Expansion Public Markets Gap Venture Capital
    16. 16. Role of Government in Early stage VC Fund <ul><li>At this stage need leverage from industry and government to support private equity </li></ul><ul><ul><li>Israel (Orbimed/Government fund) </li></ul></ul><ul><ul><li>Quebec (TVM/Lilly/Teralis) </li></ul></ul><ul><li>Multiple ideas on how to engage with government and for government to provide support </li></ul><ul><li>An early stage Life Sciences VC Fund in Ontario composed of government, industry and private equity will: </li></ul><ul><li>Provide mechanism to keep companies and jobs in Ontario </li></ul><ul><li>Support engagement and attraction of US/Europe VC funds </li></ul><ul><li>Support more effective engagement with large multinational corporations like pharma </li></ul><ul><li>Foster a more effective later stage VC community in Ontario </li></ul><ul><li>Complete the early stage funding value chain to ensure we don’t have orphaned companies </li></ul>
    17. 18. thank you

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