The document discusses resources, activities, and costs for biotech startups. It emphasizes that physical facilities create no value, while activities through true partners can generate data to drive value. Intellectual property is only valuable if it can improve patient outcomes, and there are few early-stage assets with compelling pre-clinical data demonstrating disease-modifying potential. The goal should be to produce the highest quality asset by bringing together resources and operational insights to avoid obstacles and drive the program toward an IND candidate. Metrics must be understood from the start and constantly reviewed to show whether the approach can modify disease and benchmark against competing programs.

1. Resources,%AcEviEes,%and%Costs%
Lean%Launchpad:%TherapeuEcs%
Value Propositions
%
Lean Launchpad: Digital Health
UCSF%Entrepreneurship%Center%
UCSF Entrepreneurship Center
November%12,%2013%
October 1, 2013
%
Karl%Handelsman%
Abhas Gupta, MD
Codon%Capital%%
Mohr Davidow Ventures
@abhasguptamd
Karl@CodonCapital.com%
Weekly%Office%Hours:%4:30<5:30%before%class%

2. Resources,%AcEviEes,%and%Costs%
This%
Week%
Value Propositions
Lean Launchpad: Digital Health
This%
Week%
UCSF Entrepreneurship Center
October 1, 2013
Are%you%really%cheaper,%
%beQer,%faster?%
Abhas Gupta, MD
How$does$your$approach$build$value$be3er$than$everyone$else?!
Mohr Davidow Ventures
@abhasguptamd

3. Value Propositions
Lean Launchpad: Digital Health
Biotech%Features%
UCSF Entrepreneurship Center
October 1, 2013
RESOURCES,(ACTIVITIES,(COSTS(
Abhas Gupta, MD
Mohr Davidow Ventures
@abhasguptamd

4. Biotech%Value=%technology,%talent,%transacEons%
• Finance%
– Equity%Raise,%Non<diluEve,%Industry%CollaboraEon%
Value Propositions
• Physical%
Lean Launchpad: Digital Health
– Core%team%coordinates%best%worldwide%resources%
UCSF Entrepreneurship Center
October 1, 2013
• Intellectual%Property%
– Key%value%is%IP,%but%only%key%IP%creates%value%
• Talent%
Abhas Gupta, MD
Mohr Davidow Ventures
– Match%experEse%to%problem,%relevant%experience%
@abhasguptamd

5. Resources:%TherapeuEc%Points%
• Physical%
– Facility%creates%no%value,%acEviEes%via%true%partners%creates%data%to%
drive%value%
Value Propositions
– Capital%intensity%is%related%to%how%much%risk%needs%to%be%assumed%
Major%players%cu^ng,%they%do%not%want%your%overhead%
prior%to%creaEng%value%
Lean Launchpad: Digital Health
• pre<clinical%data%vs.%a%phase%III%trial%
UCSF Entrepreneurship Center
It%is%more%interesEng%for%an%entrepreneur%if%the%risk%reward%is%
October 1, 2013
high%early%where%an%innovaEve%insights%can%dominate%
• Financial%Resources%
– Understand%total%costs%and%potenEal%collaborators%
Abhas Gupta, MD
– “TransformaEonal%TransacEon”%
Mohr Davidow Ventures
@abhasguptamd

6. TransacEons%not%IPOs%built%this%city!%
Value Propositions
Lean Launchpad: Digital Health
UCSF Entrepreneurship Center
October 1, 2013
Abhas Gupta, MD
Mohr Davidow Ventures
@abhasguptamd

7. Corporate%Partnerships%
• OperaEng%capital%
• Technology%or%resources%from%the%partner%
Value Propositions
– FormulaEon%
Lean Launchpad: Digital Health
– High%throughput%screening%
UCSF Entrepreneurship Center
October 1, 2013
• More%shots%on%goals%
– There%have%been%collaboraEons%where%the%future%
upside%is%shared%even%if%the%winning%asset%
Abhas Gupta, MD
originates%in%the%larger%company%
Mohr Davidow Ventures
@abhasguptamd

8. Culture%vs.%Talent%
• Good%culture%aQracts%talent%
• Good%culture%aligns%talent%to%operaEonal%plan%
Value Propositions
• Good%culture%allows%talent%the%freedom%to%
Lean Launchpad: Digital Health
improve,%adapt,%overcome,%re<invent%
UCSF Entrepreneurship Center
October 1, 2013
• Good%culture%embodies%focus,%drive,%talent%
• Good%culture%values%performance%
Abhas Gupta, MD
• Good%culture%improves%talent%
Mohr Davidow Ventures
@abhasguptamd

9. Intellectual%Property%
• Valuable%IP%protects%approaches%to%improve%a%
paEent%outcome%
Value Propositions
• There%are%more%novel%chemical%structures/
Lean Launchpad: Digital Health
proteins%possible%than%atoms%in%the%universe%
UCSF Entrepreneurship Center
October 1, 2013
• There%are%very%few%early%stage%assets%with%
compelling%quality%data%demonstraEng%disease%
modifying%potenEal%
Abhas Gupta, MD
Mohr Davidow Ventures
@abhasguptamd

10. Cost%Structure:%Business%Case%
• Need%Emeline%
– Cost%to%produce%data%as%program%progresses%
Value Propositions
– Metrics%match%your%MVP%
Lean Launchpad: Digital Health
– Your%advantage%is%the%ability%to%bring%together%
UCSF Entrepreneurship Center
resources%and%insight%into%an%operaEonal%plan%
October 1, 2013
• Ability%to%drive%toward%value%
• Prototype%generaEon%and%tesEng%avoids%obstacles%
• Product%centric%culture%driving%toward%IND%candidate%
Abhas Gupta, MD
Mohr Davidow Ventures
@abhasguptamd

11. Can%you%show?%
• Pre<clinical%models%
– Disease%modifying%mechanism%of%acEon%
– Benchmark%against%compeEng%programs%
Value Propositions
• You%are%compeEng%against%everything%including%generics%and%pre<
Lean Launchpad: Digital
clinical%programs%
Health
– Generate%and%evaluate%proto<types%
UCSF Entrepreneurship Center
%%
• The%goal%is%to%produce%the%highest%quality%asset,%extreme%insight%is%
October 1, 2013
needed%to%know%when%to%invest%more%to%“keep%going”%
• Metrics%need%to%be%understood%from%day%one%and%constantly%
reviewed.%%Your%experEse%must%be%the%best%in%the%world.%
• There%is%not%“reality%distorEon%field”%without%data%to%back%it%up%
Abhas Gupta, MD
Mohr Davidow Ventures
@abhasguptamd
What%does%it%cost?%Who%cares%the%most?%What%will%they%pay?%

12. Partner%Cost%Analysis%
•
•
•
•
Upfront%%
Ongoing%support%
Value Propositions
Outgoing%funds%to%each%stage% Health
Lean Launchpad: Digital
Risk/reward%at%each%stage% Center
UCSF Entrepreneurship
October 1, 2013
Abhas Gupta, MD
Mohr Davidow Ventures
@abhasguptamd

13. Value Propositions
Lean Launchpad: Digital Health
UCSF Entrepreneurship Center
October 1, 2013
My%Contact:%Put%LLP%in%Subject%Line%for%extra%points%%
KARL@CODONCAPITAL.COM(
Abhas Gupta, MD
Mohr Davidow Ventures
@abhasguptamd