SDBN Bootstrapping Biotech Final

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Presentation by Steve Scott, Lorna Neilson, Mary Canady, and David Welch at the San Diego Biotechnology Network's Bootstrapping Biotech event October 29th 2009.

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  • Who are we? We’ve both spent a lot of time at the bench. My background is in Crystallography, William’s XXX.
  • Let’s start on the same page and talk about what biotech is. We have many sectors represented in San Diego. Although their products and customers vary significantly, note that they do all have customers. For a biotech/pharma company such as Amylin, their end product, and their eventual customers, consumers, are a long way off, but they must market to investors and partners along the way. In these cases, we can think of the ‘product’ as the company.
  • (start of Mary’s part) A great example to think of, when thinking about being market-driven, is the movie business. We all know examples where a movie was supposed to be great, lots of money was spent on the marketing, but it flopped because the movie, or the product, was bad. There are also many examples in which good movies aren’t successful because not enough people know about them. So, both a good product, and communication to get the word out. The bottom line for biotech is that you need to start with a good product first, and get the word out.
  • A marketing plan can best be described as a journey.
  • Social media is all about stepping back and creating resources for your customers that go beyond your product offerings. For example, don’t just send a newsletter with a listing of your products, but provide them with tips and references that relate to your broader product area. It is a natural extension of what many life science companies are doing already. I worked for Calbiochem/EMD, and they have provided resources for signal transduction for decades.
  • SDBN Bootstrapping Biotech Final

    1. 1. Bootstrapping Biotech<br />
    2. 2. Bootstrapping Biotech<br />Wifi Password: tanguero<br />Presentation: http://sdbn.org/bootstrap<br />October 29th, 2009 SDBN Networking Event<br />
    3. 3. Bootstrapping Biotech<br />~60 min. presentation<br />Interrupt at any time<br />http://sdbn.org/bootstrap<br />Presentation & Resources<br />Videos of event<br />List yourself!<br />
    4. 4. What is Biotech?<br />*Data from Biocom’s Product Database<br />**Additional data provided by CleanTECH San Diego<br />
    5. 5. val⋅ue<br />  /ˈvælyu/ noun, verb<br />relative worth, merit, or importance: the value of a college education; the value of a queen in chess. <br />monetary or material worth, as in commerce or trade: This piece of land has greatly increased in value. <br />the worth of something in terms of the amount of other things for which it can be exchanged or in terms of some medium of exchange.<br />
    6. 6. Value<br />Create<br />Getting funding<br />What is your product?<br />Commercialize<br />Finding & protecting technologies<br />Turning products into profits<br />Communicate<br />Who cares?<br />
    7. 7. Steve Scott<br />CEO ofTechnology Acquisition Group<br />Over 25 years leading companies to the next level. Frequent Interim CEO<br />Six acquisitions, 3 turn arounds<br />14 boards<br />Launched over 220 products<br />300 million raised Twitter: Steve Scottstevescott@techacq.com<br />
    8. 8. Lorna Neilson<br />Founder and Principal, inGENEuity Life Science Group, LLC<br />Ph.D., Molecular Biology<br />Over 17 years in Biotech/Life Science Industries<br />Corporate & Business Development, Licensing, Marketing, R&D<br /><ul><li>Large and small public companies and start-up private companies
    9. 9. Applied Biosystems, Invitrogen (now Life Technologies), Sequenom, GeneFormatics, Reprogen, Isis Pharmaceuticals</li></ul>Certified Licensing Professional<br />Served on several M&A due diligence teams<br />Lead negotiator/ integration leader for company acquisition by Invitrogen<br />
    10. 10. Mary Canady<br />Founder & Principal, Comprendia LLC & SDBN<br />10 yrs at bench & computer<br />Highly technical structural biology research<br />9 yrs marketing & business development<br />Large (Invitrogen, Calbiochem/EMD) & small biotech/life science<br />Social media<br />Established biotech & science<br />Blogger/microblogger, thought leader<br />
    11. 11. David Welch<br />Written, directed, and produced more than two hundred films, videos, and commercials<br />Broadcast-quality presentations cover all three sectors of biotechnology and have focused on:<br />immunotherapies, Alzheimer’s, MS, various cancers, cellulosic ethanol and biofuels, malaria, transgenic seeding and genetically enhanced farming methods, gene silencing, and animal viruses<br />First Place honors for several biotech videos in major national film contests. <br />Jim Greenwood, CEO of the Biotechnology Industry Organization, calls David Welch “one of the best in the business when it comes to telling biotech’s story.”<br />
    12. 12. Give Me Money<br />Presentations which Attract <br />Investment<br />Tell Them What They Want to Know<br />Steve Scott, CEO, Technology Acquisition Group<br />
    13. 13. Bio-B<br />Monitoring with Style<br />San Diego, CA<br />
    14. 14. Problem – Crippling Costs<br />Researcher<br />Lack of Quick Subject Identification<br />High cost: estimated 25% of staff time<br />Loss of sensor and data stream<br />Resident<br />Desire for individual styles<br />
    15. 15. The Problem<br />What pain does your solution solve?<br />How big is the problem?<br />How much does it cost?<br />Ideal customer<br />
    16. 16. Bio-Bling<br />
    17. 17. Sensitivity Measurement<br />
    18. 18. Your Solution<br />Picture of product<br />Diagram of product or service<br />Main benefit<br />How much does it save<br />
    19. 19. Simple Distribution<br />Standard Lab Supply<br />Catalog<br />Web<br />3 distributors signed<br />Promotional<br />
    20. 20. How do you generate revenues?<br />Operate your business<br />Gain market share – Go to market strategy<br />Focus on realistic operation and distribution<br />Only the most important points<br />
    21. 21. Market Growth<br />Dollars (m)<br />
    22. 22. Marketing and Sales<br />Size of opportunity<br />Market segments<br />Served available market is key<br />Graphics best<br />
    23. 23. Competition<br />Easy<br />BLING<br />Isolation<br />Color Dot<br />Tatoo<br />Painful<br />Slow<br />Fast<br />
    24. 24. Competition<br />Competitive landscape<br />Direct and indirect<br />Map <br />Competitive Advantage<br />Matrix<br />
    25. 25. Technology<br />Color change based on chemical sensor and temperature change<br />Future activity/passivity sensing<br />
    26. 26. Underlying Magic/Technology<br />Concepts only<br />Differentiation from competitive methods<br />IP strategy mentioned in presentation<br />
    27. 27. Projections<br />
    28. 28. Projections and Milestones<br />Typical 5 year forecast<br />Review possible revenue sources<br />Total Revenue<br />COS, SG&A<br />Net Profit<br />Some add residual cash line<br />Don’t need details<br />
    29. 29. Management Team<br />CEO – E. X. Harve<br />Harvard Medical<br />Katrina Rodent Project<br />CTO – Keep M. Glowing<br />CTO 25 yrs - Dow Chemical DOD <br />CMO – M. Slinger<br />Former CMO – Roche, J&J, Fischer, Beckman, K-Jewelry, Mousekateers<br />
    30. 30. Your Team<br />Sell your accomplishments<br />High value associations<br />Schools, companies, awards, big titles<br />One of most important slide in preso<br />Offer a plan to fill gaps<br />
    31. 31. Use of Funds<br />Funds Raised 750K<br />
    32. 32. Your Funding Need<br />How much are seeking?<br />Use of money<br />How long will it last<br />Will you need more money later?<br />
    33. 33. Corporate Development<br />Scale up<br />Production (I)<br />Scale up <br />Production (II)<br />Market Launch<br />Project<br />Milestone<br />Pilot Test<br />Petri Ring<br />Development<br />Phase I<br />Development<br />Yr 1<br />Yr 2<br />Yr 3<br />Yr 4<br />Yr 5<br />Yr 0<br />Financial<br />Milestone<br />Fund <br />Raising (I)<br />US$ 750k<br />Fund <br />Raising (II)<br />US$ 1.5M<br />Exit<br />
    34. 34. Status and Timeline<br />Show what you’ve done<br />Where you are<br />When you will do the next steps<br />Technology, business and funding<br />Exit plan<br />Gantt chart or timeline<br />
    35. 35. Strong market demand<br />Scalable product <br />Large cost improvement<br />Time saving<br />Individual identity<br />Seeking $750,000 for market launch<br />Contact: exHarve@biobling.com<br />
    36. 36. Summary & Call to Action<br />How much capital are you seeking?<br />Key strengths<br />Contact info<br />
    37. 37. Commercializing<br />Technology & IP Strategy<br />Life Science Group, LLC<br />
    38. 38. Position for Success<br />Ideal position for new ventures<br />
    39. 39. Commercializing R&D<br />The Development Gap<br />
    40. 40. The Development Gap<br />Too New<br />lack of validation by other parties and/or commercial acceptance<br />Too early in development<br /> vicious cycle - need money to complete development<br />Weak IP position<br />e.g., early patent applications or need 3rd party IP<br />
    41. 41. Solution for Patent Problems<br />
    42. 42. Key Strategies for Success<br />Must have a business plan<br />Executive summary, team biographies<br />Product(s) description, including IP<br />Market and competitive research<br />Go to Market plan<br />Develop a budget/funding strategy<br />Have intellectual property (IP) strategy<br />Think about exit strategies<br />
    43. 43. Intellectual Property<br />Different factors to consider<br />One strategy per product or technology<br />Several strategies for the business<br />Funding consideration<br />Patents<br />Trade Secrets<br />Technical Information<br />Know-How<br />
    44. 44. IP Strategy<br />IP creates value by giving investors confidence to invest<br />Discourages others from trying to develop the same technology<br />The starting point in develop IP strategy that fits company business objectives<br />
    45. 45. Development Parnerships<br />Research Grants<br />Universities, Foundations and Research Institutions<br />Biotech to Biotech<br />Biotech to Big Pharma or Dx<br />
    46. 46. Getting Started<br />Bi-lateral Agreements<br />Joint research<br />Invest in the biotech company<br />Up front payment and/or milestone payments<br />Sponsored research<br />Opting in, Opting out – at different stages<br />Distribution <br />
    47. 47. What to Pay Attention To<br />License Fees<br />Joint funding of development, manufacturing, commercialization, or marketing<br />Loans<br />Equity Investments<br />Joint Investments<br />Steering Teams<br />Intellectual Property Issues (prosecuting, enforcing and maintaining patents)<br />Transferability<br />
    48. 48. Agreements Are Often Interrelated<br />consulting<br />IP License<br />training<br />Investment<br />Services<br />R&D<br />Distribution<br />manufacture<br />Technology licensing occurs in the context of a business relationship in which other agreements are often important<br />
    49. 49. An IP Strategy Has 3 Goals<br />Secure freedom to operate<br />Establish control over intellectual property assets<br />Develop and assert an IP portfolio that provides meaningful exclusionary power for the company’s products in the market<br />
    50. 50. Preparation For Negotiation<br />What is the business reason for this license?<br />What leverage do you have?<br />What is the time frame for signing the license agreement?<br />What data and documents do you or the other party need?<br />What are your positions on the key issues of the license?<br />What is your negotiating strategy?<br />Will you need preliminary agreements?<br />What are the strengths of the other side?<br />
    51. 51. Term Sheet<br />The Term Sheet provides a solid foundation for negotiation<br />Clarifies issues<br />Shows problem areas<br />Communicates to each team<br />Clears positions<br />Keeps track of goals<br />
    52. 52. Summary<br />A technology at any stage of development may be appealing to an industry strategic alliance partner<br />Licensing and commercialization occurs more often between people who know each other – network!<br />There are many approaches and ways to structure deals<br />Proper management of IP assets can create greater value for the company<br />
    53. 53. Resources<br />Licensing Executives Society (LES) www.lesusacanada.org<br />Association of University Technology Managers (AUTM) www.autm.net<br />inGENEuity Life Science Group, LLC www.ingeneuityllc.com<br />
    54. 54.
    55. 55.
    56. 56. Marketing Plan: Commercializing<br />Market Research<br />What do your customers want?<br />How much are they willing to pay for it?<br />What is your customers’ perception of you?<br />Format<br />Interviews<br />Focus groups<br />Online survey<br />
    57. 57. Marketing Plan: Commercializing<br />Customer Profiling<br />Who is your customer?<br />What are their daily ‘pains’?<br />Where are you likely to reach them?<br />
    58. 58. Marketing Plan: Commercializing<br />Competitive Analysis<br />Identify<br />Analyze<br />Is your offering unique?<br />How will you compete?<br />SWOT Analysis<br />Strengths, Weaknesses, Opportunities, Threats<br />
    59. 59. Marketing Plan: Communicating<br />Positioning & Messaging<br />What is your niche?<br />What is your value?<br />How will you compete in the long term?<br />How will you communicate your message?<br />
    60. 60. Communication Tactics<br />Materials<br />Content<br />Branding<br />Print & online media<br />Presentations<br />Planning<br />Campaigns<br />Conferences<br />PR<br />Media placements<br />
    61. 61. Communicating 2.0<br />Smaller companies can do more<br />Get by with help from friends<br />Engage, don’t broadcast<br />
    62. 62. Social Media: How?<br />Create a community that cares about you & your product<br />Spend more time than $$<br />Learn from others<br />http://sdbn.org/sdsms<br />http://sdbn.org/sms<br />We can help! http://comprendia.com/socialmedia<br />
    63. 63. Check out the Appendix & http://sdbn.org/bootstrap for more information<br />
    64. 64. Case Study: SDBN<br />San Diego Biotechnology Network<br />Founded Oct. 2008 by Mary & Partner<br />Mission: Promote communication in the San Diego Biotechnology community<br />Monthly events focus on hot science, networking, and workshops<br />Promotion via Social Media (SM)<br />LinkedIn (2100+)<br />Twitter (950+)<br />Meetup (175+)<br />Facebook (300+)<br />Amazing growth—85-100 at each event<br />Branch out to charity events, mini-conferences<br />Engage Scientists in SM to help grow<br />
    65. 65. Case Study: TigerTox<br />Inspired by Comprendia, SDBN<br />Build Toxicology ‘community’<br />Needs: Logo, Website/Blog, PowerPoint Template<br />BioStartup™ Marketing Kit<br />Creative Brief Process<br />
    66. 66. Case Study: TigerTox<br />Complete Package<br />Also Provided<br />Training<br />Materials<br />Blog/website up<br />Full story<br />
    67. 67. Bootstrapping Biotech<br />
    68. 68. Science Communication 101<br />What we will discuss:<br />The importance of video<br />How to leverage social media<br />Integration of video with traditional public relations<br />Creating a buzz<br />
    69. 69. What is it?<br />Why are we doing it?<br />How are we doing it?<br />Biotech Branding Campaign<br />
    70. 70. Biotech Branding Campaign<br />
    71. 71. WhatCanBiotechDoForYou.com<br />
    72. 72. IAmBiotech.org<br />
    73. 73. Telling the Story<br />Why it’s important to use stories to <br /> communicate science:<br />Stories help put a human face on the biotech industry<br />They show how science offers hope to the world<br />
    74. 74. Telling the Story<br />Using video<br />Why it’s important<br />If you can’t view this video watch it at http://sdbn.org/wcs1<br />
    75. 75. Telling the Story<br />How video can help explain complicated science<br />If you can’t view this video watch it at http://sdbn.org/wcs2<br />
    76. 76. Telling the Story<br />What are your options?<br />High-end video production<br />Flip cameras<br />If you can’t view this videos watch them at http://sdbn.org/wcs3<br />
    77. 77. Promoting videos through social media<br />Video 2.0<br />
    78. 78. Video 2.0<br />
    79. 79. Video 2.0<br />Cost and analytics<br />Total # of people who <br />the ad was shown to<br />Total # of clicks resulting <br />from promotion of 1 video <br />in 2 months<br />Average cost per click<br />was just 23 cents<br />% of people who clicked<br />through the promotion<br />
    80. 80. Traditional Communications Vs. Web 2.0<br />
    81. 81. “Buzz”: Why You Want it and How You Get it<br />Leveraging your social media presence<br />Build your network<br />Develop strategic partnerships<br />
    82. 82. “Buzz”: Why You Want it and How You Get it<br />Self-promote ONLY after promoting others<br />Know your audience and cater to their needs<br />Make it worth their while to listen<br />Provide interesting content<br />Respond to feedback<br />
    83. 83. “Buzz”: Why You Want it and How You Get it<br />How do you create a buzz? It’s simple:<br />Communicate; stay informed; and differentiate yourself, your company, and your products<br />
    84. 84. Next Steps<br />Find us after the presentation to be interviewed on camera for IAmBiotech.org<br />Sign up on IAmBiotech.org and get involved!<br />Ask us how we can help you: http://WHITECOATstrategies.com<br />
    85. 85. Appendix: Funding Resources<br />
    86. 86. Appendix: Bootstrapping Resources<br />

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