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Boston Mountain Biotech NSF Final Presentation

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  • DNA NOT GENES!!
  • BioMarin is currently NOT a profitable company because of their COGS
  • Neulasta 4th quarter sales of $918M $3,672M yearly sales 3-5% is $110-180M based on sales not on revenue
  • While we have looked at one company in the market, lets take a broader look at the entire market.The US protein expression kit market was estimated at 200 M in 2008 and had experienced 20% growthThe global market for cells and cells lines was over 1.4B in 2011 and experiencing 10% growth

Transcript

  • 1. National Science FoundationI-Corps ProgramMay 23, 2012www.bostonmountainbiotech.com
  • 2. Team Members Ellen Brune, Entrepreneurial Lead • PhD Candidate in Chemical Engineering • Doctoral Academy Fellow • Graduate Certificate in Entrepreneurship Robert Beitle P.E., Principle Investigator • Faculty in the Department of Chemical Engineering • Bioprocess Design and Development Beverly Graham, Industrial Mentor • Pel-Freez Biologicals • 20+ years experience in Sales and Marketing in the biotech industry
  • 3. The Biopharmaceutical Industry• Typically spends $8B every year on protein-based drug purification per drug• Interested in a solution to minimize their COGS and improve their margin
  • 4. $50 Billion DollarProtein Therapeutic Market $24 Billion Dollar Cell Line Sales $1.4 Billion Dollar E. coli Target
  • 5. Our Technology – Cells Make Less Trash Lotus DatabaseDNAProvisional Patent FiledMarch13, 2012Application #: 61/610298 Lotus
  • 6. Our First Business Canvas Key Partners Key Activities Value Product Customer Customer Relationship Segments UA incubator Complete Provide E. coli Tech Support Segmented MVPs based cell line(s) forUAMS (GMP) on customer simplified and Consultative niche market feedback downstream Bioproximity processing (purification) Innovate AR Key Resources Customer Channels Parkside Laboratory GMP (?) Web Sales Financial Scientists Startup ($) Trade Shows IP (exclusive) Direct Sales Cost Segments Revenue Segments R&D for the MVPs Direct Sales Royalties People Commercial Licensing
  • 7. Customer Contact Customer Contacts 101 total• Refine possible customer segments • Food • Industrial Enzymes • Biopharmaceuticals • Diagnostics • Reagents• Test hypothesis statements • Composition of Minimum Viable Product • Value Proposition • Revenue model structure• Establish relationships with potential partners and customers
  • 8. Application of Technology Total COGS Comparison $30 Millions $25 Lotus $8.2M/year $20 $24M savings per $15 drug $10 $16M $5 $0
  • 9. • Discussion focused on three drug pipelines • Our IMAC prototype is moderately useful • Ion exchange friendly cell line would be disruptive technology• Confirmed certain aspects of revenue model • Viability of custom cell line construction as a RS • Royalty payment of 5% is reasonable assumption
  • 10. Competitor Comparison Industry Standard Boston Mountain Biotech Invitrogen (LifeTech) OneShot ™ Lotus Estimated Required 6+ 3 Purification Steps Purification Cost Savings NONE 20 - 70% * Average Commercial Cost $0 $8.2M Savings per Year per Drug Customized Versions -- Yes Annual License Cost $75,000 + Negotiable Pricing per Drug 3-5% of revenue (average $240,000)
  • 11. Revenue and distribution channels Academics / Not-for Profits License Agreement Contract Manufacturer ContractPayments Biopharma Start-upMaterial Transfer SaleActions Large Pharma
  • 12. Customer Segments• Commercial Institutions: • Primary Market • $1.4B (Globally) • License and Revenue sharing agreements• Academic Labs: • Secondary Market • Increase Visibility of Tech • $140 M (North America) • Product Sales
  • 13. Our Final Business Canvas Key Partners Key Activities Value Product Customer Customer • Production of Relationship Segments• UA • Simplify • Business Cell Lines Protein • Technical • Large Pharma Incubator • R&D for Cell Support • Protein CMOs Purification • GMP Facility Lines and • Increase Yield • Consultation • Academic at UAMS Database Labs and • Walton Throughput • Drug College • Decrease Discovery• State Key Resources COGS and Customer Groups • Innovate AR Process Channels • Enzyme • Fund for AR • UA Facilities Manufacturers Waste • Direct Sales Future • Scientists and • Diagnostics• Parkside Engineers • Website Manufacturers Financial • Exclusive IP Sales • Startup Cash Cost Segments Revenue Segments • Cost to complete two MVPs • Cell Lines • Salaries for Scientists and Engineers • Direct Sales • Exclusive IP License Fee • Royalties and Licensing Fees • Database Access Fee
  • 14. +$50,000
  • 15. Corporate Growth Roadmap• Signed an exclusive license with the Univ. of Arkansas• Finalize commercial prototype• Sign CDAs with Merck and CSL Behring • Begin commercial prototype pilot testing• Start writing SBIR grants• Finalize acquiring state-supported funding
  • 16. National Science FoundationI-Corps ProgramMay 23, 2012www.bostonmountainbiotech.com
  • 17. Canvas evolution slides start here
  • 18. Our first canvas (original idea, with mistakes) Complete UA incubator MVPs based Tech Support Segmented and on customer niche market UAMS (GMP) feedback Provide E. coli cell Consultative line(s) for Bioproximity simplified downstream processing Innovate AR Laboratory (purification) Web Sales Parkside GMP (?) Financial Scientists Trade Shows Startup ($) IP (exclusive) Direct Sales Direct Sales R&D for the MVPs Royalties People Commercial Licensing4 - University of Arkansas - Separatome based E. coli purification platform
  • 19. University of Arkansas: Separatome based E. coli purification platform Complete UA incubator MVPs based Segmented UAMS (GMP) on customer Tech Support and Bioproximity Provide E. feedback Consultative niche market coli cell line(s) for simplified Biopharma downstream Biotechnolog Laboratory Web Sales processing y (GMP ?) Trade Shows (purification) Food Scientists Sales Force Startup ($) Licensing Value driven (implicit – academic) R&D for the MVPs (written – industry) People
  • 20. University of Arkansas: Separatome based E. coli purification platform Provide E. coli cell Segmented and UA incubator Complete MVPs line(s) for niche market based on simplified Biopharma UAMS (GMP) customer downstream Biotechnology Tech Support Food ASTA feedback processing (purification) Consultative Protein CMOs Bioproximity Simplify Protein Drug Discovery Purification Research Groups Innovate AR Web Sales Laboratory Increase Yield Parkside GMP (?) Trade Shows Industrial Enzyme Financial Scientists Manufacturers Increase Startup ($) Throughput Direct Sales IP (exclusive Academic Protein license) Research Labs Decrease Cost Direct Sales Royalties R&D for the MVPs Commercial Licensing Database License People
  • 21. University of Arkansas: Separatome based E. coli purification platformUA incubator Provide MVP to Protein CMOsUAMS (GMP) Simplify Protein Customer PurificationASTA Drug Discovery Tech Support Research Groups R&D Increase YieldFund for Arkansas ProductionFuture Consultative Diagnostic Support Increase Research GroupsBioproximity Throughput Web Sales Industrial EnzymeInnovate AR Decrease COGS Manufacturers Laboratory Direct SalesParkside Financial Decrease Waste GMP Academic ProteinU of A Scientists Research Labs Startup $Business Plan IP (exclusive license)Competitions ($$$) Direct Sales Royalties R&D for the MVPs Commercial Licensing Database License People IP License
  • 22. University of Arkansas: Separatome based E. coli purification platformUA incubator R&D Protein CMOsUAMS (GMP) Simplify Protein Production PurificationASTA Support Drug Discovery Tech Support Research Groups Increase YieldFund for ArkansasFuture Consultative Diagnostic Increase Research GroupsBioproximity Throughput Web Sales Industrial EnzymeInnovate AR Decrease COGS Manufacturers Laboratory Direct SalesParkside Financial Decrease Waste GMP Academic ProteinU of A Scientists Research Labs Startup $Business Plan IP (exclusive license) Large PharmaCompetitions ($$$) Direct Sales Royalties R&D for the MVPs Commercial Licensing Database License People IP License
  • 23. Present canvas (after five iterations) • UA • Production of • Business Cell Lines • Technical • Large Pharma Incubator • R&D for Cell • Simplify Protein Support • Protein CMOs • GMP Facility Lines and Purification • Consultation • Academic Labs at UAMS Database • Increase Yield • Drug Discovery • Walton and Throughput Groups College • Decrease • Enzyme • State COGS and Manufacturers • Innovate AR Process Waste • Diagnostics • Fund for AR • UA Facilities Manufacturers Future • Scientists and • Parkside Engineers • Exclusive IP • Direct Sales Financial • Website Sales • Startup Cash • Cell Lines • Direct Sales • Cost to complete two MVPs • Royalties and • Salaries for Scientists and Licensing Fees Engineers • Database Access Fee • Exclusive IP License Fee4 - University of Arkansas - Separatome based E. coli purification platform
  • 24. Backup material
  • 25. Market
  • 26. What kind of business are we building?• IP based • Data on E. coli sepratome • E. coli cell lines that improve chromatography• License of an E. coli expression platform• Technical Services/Support
  • 27. Disruptive Innovation• Generate a new markets • Reduction in entry cost barrier • Simplified purification process• Access existing markets • Large Manufacturers • Existing FDA approved drugs • Pre-FDA drugs in the pipeline• Sticky Technology • Cell line tied to FDA approval
  • 28. Hypothesis Statements • On-going • A cell line “tool kit” would be beneficial • Protein manufacturers have control over cell line selection • Added by teaching team • Local council with biotech IP experience is available • BMB revenue model is valid (royalties, fees) • Speaking with biotech entrepreneurs will provide valued advice4 - University of Arkansas - Separatome based E. coli purification platform
  • 29. Our first canvas (original idea, with mistakes) Definition, not who Unclear value proposition Unrealistic channel Random list of hopefuls + current4 - University of Arkansas - Separatome based E. coli purification platform
  • 30. Contact Method • Almost all of our contacts were done via conference • Video • Audio • Multimedia • Cold call strategy adapted slightly IM sent email to contact (or PI) • Set stage for conversation • Two or three of us on each call Appointment set, short summary sent electronically • Also used survey tools Conversation • LinkedIn / Surveymonkey • Respondents not included in contact count Follow-up4 - University of Arkansas - Separatome based E. coli purification platform
  • 31. LotusIMAC 0-10mM 10-50mM 50-100mM 100-200mM 200-500mM• Five cell lines, each line has different set of background proteins “removed”• Cell line used to express target protein (e.g. insulin)• Less background proteins are present by choosing appropriate strain