Presentation at mHealth Israel Investors Summit by Tom Sudow, Head of Business Development: "Successful Commercialization – The Cleveland Clinic Story". The mission is to promote Innovation via Commercialization by bringing new innovations into widespread clinical practice, protecting the intellectual property underlying the innovations, optimizing the value returned for those innovations, and growing the regional economy.

1. “Bringing world class innovations to
market by bridging discoveries into
commercial products.”
Successful Commercialization –
The Cleveland Clinic Story
Thomas Sudow
Director of Business Development

2. How Many Patients
Were Touched Today By Innovations from
the Cleveland Clinic ?
• Blood Transfusion
• Kidney Dialysis
• Angiography
• Bi-Pass Surgery
From just these 4 –
MILLIONS !!!
Add up the rest
Well over 5 Million
TODAY

3. Since 1921
A Unique Model of Care
• Four doctors share a vision
- Non-profit, physician-led
group practice
- Collaboration across
disciplines
- All physicians are salaried
- Patient-centered mission
FRANK E. BUNTS, MD
JOHN PHILLIPS, MD
GEORGE CRILE SR., MD
WILLIAM E. LOWER, MD

4. • 5.5M Patient Visits
• 43,430 Employee Caregivers
• 27 Institutes providing care in 120
subspecialties
• Locations
• Main Campus
• 8 Community Hospitals
• 16 Family Health Centers in NE Ohio
• Facilities in Florida, Nevada, Toronto & Abu
Dhabi
• EMR Leader – My Chart
• Top 4 Hospital by U.S. News & World
Report
Cleveland Clinic

5. Main Campus

6. Cleveland Clinic Lou Ruvo
Center for Brain Health

7. 7
Cleveland Clinic Abu Dhabi

8. Cleveland
Clinic
H
Fairview Hospital
Lakewood Hospital
H
Lutheran Hospital
H
Ashtabula County
Medical Center
H
Euclid Hospital
H
Hillcrest Hospital
H
South Pointe
Hospital
H
Marymount Hospital
H
Cleveland
Clinic
Florida
H
Medina
Hospital
H
Lorain Family Health
And Surgery Center
FHC
Elyria Family
Health Center
Westlake Family
Health Center
FHC
FHC Lakewood
Family Health
Center
FHC
Strongsville Family Health
and Surgery Center
FHC
Brunswick Family
Health Center
FHC
Wooster Family
Health Center
FHC
Independence Family
Health Center
FHC
Solon Family
Health Center
FHC
Chagrin Falls Family
Health Center
FHC
Beachwood Family
Health and Surgery Center
FHC
Willoughby Hills
Family Health Center
FHC
FHC
R.E. Jacobs
Health Center
Lou Ruvo Center
for Brain Health
Las Vegas, Nevada
FHC
Cleveland
Clinic
Toronto
FHC
S.T.J.
Health Center
HC
Twinsburg Family
Health Center
FHC
6.4M Patients

9. Cleveland Clinic Culture
"We are considering not only our duty to the patient of today,
but no less our duty to the patient of tomorrow."
Quality. INNOVATION. Teamwork.
Service. Integrity. Compassion.
We welcome change, encourage invention and continually
seek better, more efficient ways to achieve our goals.
George Crile, Sr., MD
Co-Founder
Cleveland Clinic

10. Cleveland Clinic Innovations
We promote innovation and expand treatment of the
sick through the deployment of technologies
developed by Cleveland Clinic and our Healthcare
Innovations Alliance Partners.
Through commercialization, we translate emerging
diagnostics, therapies, devices, health IT and
business solutions into beneficial medical products
through spin-off companies, licenses and equity
partnerships.

11. Promote Innovation via
Commercialization
• Bring new innovations into
widespread clinical practice
• Protect the intellectual property
underlying the innovations
• Optimize the value returned for those
innovations
• Grow the regional economy and
beyond

12. Areas of Focus
1. Commercialization / technology
transfer
2. Global Healthcare Innovation Alliance
3. Medical Innovation Summit
4. Centers (GCIC & NCAI)

13. Business Imperatives
• Commercializing/translating
innovations that provide better patient
care;
• Delivering exceptional inventor
satisfaction through teamwork;
• Optimizing financial outcomes.

14. Innovations Scorecard: 2014
• 2,600 Patent Applications
• 450 Royalty Licenses
• 71 Spin-Offs
• $799M in Equity Investments
• $69M to Inventors
• $167M in State & Federal
Grants
• 1,200 Jobs Created
• World-Wide Recognition

15. Innovations Key Metrics
*IDFs include Alliance Partners
IDFsPatents
0
50
100
150
200
250
300
350
400
450
500
0
5
10
15
20
25
30
35
40
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Agreements Companies Formed Patents Filed Patents Issued IDFs
AgreementsCompanies

16. Inventions by Type 2014
Medical Device
50%
Health IT
23%
Therapeutics &
Diagnostics
22%
Delivery
Solutions
5%

17. Portfolio Companies: 71
2000-
2003
2004-
2005
2006 2007
2008-
2009
2010 2011 2012 2013 2014
ART SARL CleveX Clear
Catheter
Solutions
ATI Congruent
Medical
NaviGate iComet iVHR Renovo
Biosciences
Adeo
AxioMed IntElect Tolera CardioNomic OptoQuest Image IQ Custom
Arthroplasty
Solutions
FlexLife
Health
Shield
Biotech
Centerline
Medical
CardioMEMS Merlot Revasc Cleveland
Heart
Perfusion
Solutions
SironRX Custom
Ortho
Solutions
Infuseon Jace
Medical
VBT
Cleveland
BioLabs
CSF
Therapeutics
Alios
Biopharma
Navis Renovo
Neural
YouDocs
Beauty
Enspire
DBS
Ion-VAC Cancer
Genetics
Emanate
Wireless
Peritec PrognostiX Juventas Clear
Catheter
Systems
Buckeye
Ocular
Enforcer PluronX i360Medical Cleveland
Diagnostics
ValveXchange OrthoMems AngioQuest Cleveland
HeartLab
Sivan Panacela* RelateCare
BioSil,
USA
VioQuest Explorys Incuron* Rindex Talis
Z-Kat Zin
Medical
Intellis I-Lyte IPPC
Ridgeway Simbionix Clear
Ventric
Esperion
Therapeutics Non-operatingDeviceDiagnosticsHIT Services
Monetized
Dissolved*CBLI Spin-off

18. A Comprehensive Approach
Mine for IDEAS with clinically aligned Institute Innovation Managers
Engage clinical and technical inventor peers to evaluate NEED
Assess the commercial VIABILITY and build a business case
Develop within a domain specific incubator for ENHANCEMENT, then market
Manage NEGOTIATIONS to create spin-offs, licenses and equity partnerships
Take idea through TRANSLATION to improve patient care

19. Cleveland Clinic Innovations
Incubators
Medical
Device
Therapeutic Health IT
Delivery
Solutions
Industry & Investor Advisory
Process Flow
Peer Review (PRC)
CCI Facilitated, Enterprise Aligned,
Institute Driven

20. • Inventor Satisfaction
• Greater Awareness of Innovation
• Expanded Involvement
• Improved Commercial Outcomes
• Increased Transparency for Stakeholders
• Access to Clinical, Technical, & Industry
Experts
• Enhanced Quality
• Increase Value
Value Proposition & Outcomes

21. The Global Healthcare Innovations Alliance is
a collaborative network of healthcare systems,
academic institutions and corporate partners
around the world. The Alliance creates
opportunities that benefits patients everywhere
through scalable technology development and
commercialization.

22. Partnering to Realize Opportunities
The Global Healthcare Innovations Alliance
connects members with the world class
commercialization services of Cleveland
Clinic. bEach partner brings unique
capabilities, contributing to a multilateral
network.

23. In addition to innovation management and
commercialization, The Alliance aims to identify
intersections that can combine efforts in
research, clinical investigation and technology
development. The value of partnering with the
Alliance lies in the unique 360-degree
perspective on patient care and innovation,
established connections to resources
throughout the healthcare and industry
community, and a deep and wide-ranging
commercialization capabilities and expertise.
Partnering to Realize Opportunities

24. A World Class Model
*
*
*international

25. 2015 Medical Innovation Summit

26. Innovation Centers at
Cleveland Clinic
Translating Research to Development
and Commercialization

27. Complementary Programs
• Heart, Lung, Blood, Sleep
• Institution-Based Projects
• Establish Proof of Concept
• 1 Year Scope of Work
• Project Guidance
• Milestone Reviews
• Grant Funding
• $50K - $150K + 1:1 Match
• Next Stage: SBIR, GCIC
• Cardiovascular
• Company-Based Projects
• Early-Stage Development
• 1 Year Scope of Work
• Project Guidance
• Milestone Reviews
• Convertible Debt Funding
• $300K - $500K + 2:1 Match
• Next Stage: VC Financing

28. Global Cardiovascular Innovation
Center
Mission and Scope
• Catalyze economic development by
developing, incubating and
commercializing cardiovascular
technology
• A consortium of university, hospital,
industry, and economic development
partners within Ohio
• $60M grant from Ohio Third Frontier Project, 2007
• Also managing
• Goals:
- Job Creation: 855 at average wage of $69,500
- New Venture-Backed and Recruited Companies: 43
- Seed and Venture Capital Invested: $207M

29. GCIC Programs
• Commercialization Funding
Provide seed funding and support to new product
development
• Product Development Acceleration
Provide product management and business planning
support by industry-experienced staff
• Business Attraction
Bring new businesses to Ohio
to grow the Cardiovascular cluster
• New Company Incubation
Operate and manage incubator facility
for start-up companies
• Preclinical Investigation Capabilities
Operate state-of-art preclinical facility
for sponsored research, product development, procedure
training

30. GCIC – a Successful Catalyst and
Magnet for New Business in Ohio
• 58 Commercialization Funding Awards Granted.
- $18.6M awarded for development of 48 technologies
- Supporting 38 companies and 8 institution-based projects
• 22 New Businesses Attracted to and Operating in Ohio.
• GCIC Incubator facility supporting 30 companies.
• 861 Added Ohio Jobs
in Companies Funded, Attracted or Incubated by GCIC.
Growing steadily as companies mature
• $763 Million in Follow-on Funding, M&A Returns Secured.
Growing significantly as companies secure
additional later round financing
As of end Q4 2014

31. Commercialization Success
• Advancing technology into physician’s hands
and into service to patients
• Progress of 48 Technologies Funded…
Development
Preclinical Validation
Clinical Trials
Acquisition Transaction or In Market
8
12
12
8
Research4

32. NIH Center for Accelerated Innovations
(NCAI) at Cleveland Clinic
• Mission to improve how basic science advances and
discoveries are translated into commercially viable products
that improve patient care and advance public health.
• One of three inaugural NCAI’s established.
• $10M grant from NHLBI to Cleveland Clinic
to establish a multi-institutional consortium of academic, clinical,
government, non-profit and private sector organizations within Ohio.
• Targeting technologies to improve diagnosis, treatment, management
and prevention of heart, lung, blood and sleep disorders and diseases.
• 7 year program to provide funding and project management for
feasibility studies, regulatory, legal, and business development expertise;
and entrepreneurial training and mentorship.

34. OHIO HEALTHCARE
INNOVATION ALLIANCE
Why Ohio…. Why Now?
• Compelling Opportunity
• Shared Challenges
• Natural Relationships
• Governor’s Priority
• Innovation: Collaboration & Success

35. OHIO HEALTHCARE
INNOVATION ALLIANCE
• Large Scale Assessment of Innovation Capacity
on the State level
• Disciplined Process and Propriety Evaluation
Instruments the OHIA diagnostics was
conducted to:
• Determine Level of Collaboration
• The Existence of an Innovation Infrastructure
• The Identification of a collective promising portfolio
• Determine the Potential for a State-Wide Innovation
Alliance that will Distinguish Ohio as an Innovation
Leader

36. Lessons from the Global Innovation Alliance
•Major Advantages of Collaboration
•Cross-Pollination
•Activate All Forms of Innovation: 5-Points of Star
•Access to Resources
•Leverage Scale

37. OHIO HEALTHCARE INNOVATION ALLIANCE
Governor-Nominated Participants

38. “The future belongs to those who seize the
opportunities created by innovation."
Delos M. Cosgrove, MD
CEO & President
Cleveland Clinic

39. Stay Connected!
innovations.clevelandclinic.org