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 Dollar
Protein Therapeutic
Market
$24 Billion Dollar
Cell Line Sales
$1.4 Billion
Dollar E. coli
Target
5. Our Technology – Cells Make Less Trash
DNA
DNA
Lotus
Lotus Database
Provisional Patent Filed
March13, 2012
Application #: 61/610298
6. Key Partners Key Activities
Key Resources
Value Product Customer
Relationship
Customer
Channels
Customer
Segments
Cost Segments Revenue Segments
Our First Business Canvas
UA incubator
UAMS (GMP)
Bioproximity
Innovate AR
Parkside
Financial
Complete
MVPs based
on customer
feedback
Laboratory
GMP (?)
Scientists
Startup ($)
IP (exclusive)
R&D for the MVPs
People
Provide E. coli
cell line(s) for
simplified
downstream
processing
(purification)
Web Sales
Trade Shows
Direct Sales
Tech Support
Consultative
Segmented
and
niche market
Direct Sales
Royalties
Commercial Licensing
7. Customer Contacts
• 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
Customer Contact
101 total
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
Invitrogen (LifeTech)
OneShot ™
Boston Mountain
Biotech
Estimated Required
Purification Steps
6+ 3
Purification Cost Savings
NONE 20 - 70% *
Average Commercial Cost
Savings per Year per Drug
$0 $8.2M
Customized Versions
-- Yes
Annual License Cost
per Drug
$75,000 +
3-5% of revenue
Negotiable Pricing
(average $240,000)
Lotus
11. Revenue and distribution channels
Academics / Not-for Profits
Contract Manufacturer
Biopharma Start-up
Large Pharma
Payments
Material Transfer
Actions
Contract
Sale
License
Agreement
12. Customer Segments
• Commercial Institutions:
• Primary Market
• $1.4B (Globally)
• License and Revenue sharing
agreements
• Academic Labs:
• Secondary Market
• Increase Visibility of Tech
• $140 M (North America)
• Product Sales
13. Key Partners Key Activities
Key Resources
Value Product Customer
Relationship
Customer
Channels
Customer
Segments
Cost Segments Revenue Segments
Our Final Business Canvas
• Large Pharma
• Protein CMOs
• Academic
Labs
• Drug
Discovery
Groups
• Enzyme
Manufacturers
• Diagnostics
Manufacturers
• Technical
Support
• Consultation
• Direct Sales
• Website
Sales
• Cell Lines
• Direct Sales
• Royalties and Licensing Fees
• Database Access Fee
• Simplify
Protein
Purification
• Increase Yield
and
Throughput
• Decrease
COGS and
Process
Waste
• UA Facilities
• Scientists and
Engineers
• Exclusive IP
• Startup Cash
• Cost to complete two MVPs
• Salaries for Scientists and Engineers
• Exclusive IP License Fee
• UA
• Business
Incubator
• GMP Facility
at UAMS
• Walton
College
• State
• Innovate AR
• Fund for AR
Future
• Parkside
Financial
• Production of
Cell Lines
• R&D for Cell
Lines and
Database
15. Corporate Growth Roadmap
• Signed an exclusive license with the Univ. of Arkansas
• Finalize commercial prototype
• Sign CDAs with Merck and CSL Behring
• Begin commercial prototype pilot testing
• Start writing SBIR grants
• Finalize acquiring state-supported funding
18. Our first canvas (original idea, with mistakes)
4 - University of Arkansas - Separatome based E. coli purification platform
UA incubator
UAMS (GMP)
Bioproximity
Innovate AR
Parkside
Financial
Complete
MVPs based
on customer
feedback
Laboratory
GMP (?)
Scientists
Startup ($)
IP (exclusive)
R&D for the MVPs
People
Provide E. coli cell
line(s) for
simplified
downstream
processing
(purification)
Web Sales
Trade Shows
Direct Sales
Tech Support
Consultative
Segmented and
niche market
Direct Sales
Royalties
Commercial Licensing
19. University of Arkansas: Separatome based E. coli purification platform
Provide E.
coli cell
line(s) for
simplified
downstream
processing
(purification)
Segmented
and
niche market
Biopharma
Biotechnolog
y
Food
Tech Support
Consultative
Web Sales
Trade Shows
Sales Force
Complete
MVPs based
on customer
feedback
Laboratory
(GMP ?)
Scientists
Startup ($)
UA incubator
UAMS (GMP)
Bioproximity
Value driven
R&D for the MVPs
People
Licensing
(implicit – academic)
(written – industry)
20. University of Arkansas: Separatome based E. coli purification platform
Provide E. coli cell
line(s) for
simplified
downstream
processing
(purification)
Simplify Protein
Purification
Increase Yield
Increase
Throughput
Decrease Cost
Segmented and
niche market
Biopharma
Biotechnology
Food
Tech Support
Consultative
Web Sales
Trade Shows
Direct Sales
Complete MVPs
based on
customer
feedback
Laboratory
GMP (?)
Scientists
Startup ($)
IP (exclusive
license)
UA incubator
UAMS (GMP)
ASTA
Bioproximity
Innovate AR
Parkside
Financial
R&D for the MVPs
People
Direct Sales
Royalties
Commercial Licensing
Database License
Protein CMOs
Drug Discovery
Research Groups
Industrial Enzyme
Manufacturers
Academic Protein
Research Labs
21. University of Arkansas: Separatome based E. coli purification platform
Simplify Protein
Purification
Increase Yield
Increase
Throughput
Decrease COGS
Decrease Waste
Tech Support
Consultative
Web Sales
Direct Sales
Provide MVP to
Customer
R&D
Production
Support
Laboratory
GMP
Scientists
Startup $
IP (exclusive license)
UA incubator
UAMS (GMP)
ASTA
Fund for Arkansas
Future
Bioproximity
Innovate AR
Parkside Financial
U of A
Business Plan
Competitions ($$$)
R&D for the MVPs
People
IP License
Direct Sales
Royalties
Commercial Licensing
Database License
Protein CMOs
Drug Discovery
Research Groups
Diagnostic
Research Groups
Industrial Enzyme
Manufacturers
Academic Protein
Research Labs
22. University of Arkansas: Separatome based E. coli purification platform
Simplify Protein
Purification
Increase Yield
Increase
Throughput
Decrease COGS
Decrease Waste
Tech Support
Consultative
Web Sales
Direct Sales
R&D
Production
Support
Laboratory
GMP
Scientists
Startup $
IP (exclusive license)
UA incubator
UAMS (GMP)
ASTA
Fund for Arkansas
Future
Bioproximity
Innovate AR
Parkside Financial
U of A
Business Plan
Competitions ($$$)
R&D for the MVPs
People
IP License
Direct Sales
Royalties
Commercial Licensing
Database License
Protein CMOs
Drug Discovery
Research Groups
Diagnostic
Research Groups
Industrial Enzyme
Manufacturers
Academic Protein
Research Labs
Large Pharma
23. Present canvas (after five iterations)
• Large Pharma
• Protein CMOs
• Academic Labs
• Drug Discovery
Groups
• Enzyme
Manufacturers
• Diagnostics
Manufacturers
• Technical
Support
• Consultation
• Direct Sales
• Website Sales
• Cell Lines
• Direct Sales
• Royalties and
Licensing Fees
• Database Access Fee
• Simplify Protein
Purification
• Increase Yield
and Throughput
• Decrease
COGS and
Process Waste
• UA Facilities
• Scientists and
Engineers
• Exclusive IP
• Startup Cash
• Cost to complete two MVPs
• Salaries for Scientists and
Engineers
• Exclusive IP License Fee
• UA
• Business
Incubator
• GMP Facility
at UAMS
• Walton
College
• State
• Innovate AR
• Fund for AR
Future
• Parkside
Financial
• Production of
Cell Lines
• R&D for Cell
Lines and
Database
4 - University of Arkansas - Separatome based E. coli purification platform
27. 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
28. 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
29. 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 advice
4 - University of Arkansas - Separatome based E. coli purification platform
30. Our first canvas (original idea, with mistakes)
Unclear value proposition
Definition, not who
Unrealistic channel
Random list of hopefuls + current
4 - University of Arkansas - Separatome based E. coli purification platform
31. Contact Method
• Almost all of our contacts were done via conference
• Video
• Audio
• Multimedia
• Cold call strategy adapted slightly
• Set stage for conversation
• Two or three of us on each call
• Also used survey tools
• LinkedIn / Surveymonkey
• Respondents not included in contact count
IM sent email to contact (or PI)
Appointment set, short summary sent electronically
Conversation
Follow-up
4 - University of Arkansas - Separatome based E. coli purification platform
32. Lotus
IMAC
0-10mM 10-50mM 50-100mM 100-200mM 200-500mM
• Less background proteins are present by choosing appropriate strain
• Five cell lines, each line has different set of background proteins “removed”
• Cell line used to express target protein (e.g. insulin)
Editor's Notes
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% growth
The global market for cells and cells lines was over 1.4B in 2011 and experiencing 10% growth