From Invention to Innovation In Biotechnology:Strategic and Tactical Approaches to Taking Risks In A High-Stakes Sector

Download From Invention to Innovation In Biotechnology:Strategic and Tactical Approaches to Taking Risks In A High-Stakes Sector

Post on 29-Jan-2015

115 views

Category:

Business

0 download

Embed Size (px)

DESCRIPTION

Scale Business Group sponsored Executive Leadership session presented by Dr Elise Brownell of ZephrBiotech at GameChangers confernce. www.grow-california.com

TRANSCRIPT

  • 1. From Invention to Innovation In Biotechnology:Strategic and Tactical Approaches to Taking Risks In A High-Stakes SectorElise Brownell, PhDFounding Partner, ZephyrBiotech, LLCwww.zephyrbiotech.comelise.brownell@zephyrbiotech.com925-639-044416 Nov 2010 ZephyrBiotech LLC 1 Elise Brownell, PhD.

2. Why Is the Life Science Sector Different?FactoidsLife Cycle from Discovery to Market?16 Nov 2010 ZephyrBiotech LLC2 Elise Brownell, PhD. 3. Why Is the Life Science Sector Different?FactoidsLife Cycle from Discovery to Market? 10-12 Years16 Nov 2010 ZephyrBiotech LLC3 Elise Brownell, PhD. 4. Why Is the Life Science Sector Different?FactoidsLife Cycle from Discovery to Market? 10-12 YearsCost?16 Nov 2010 ZephyrBiotech LLC4 Elise Brownell, PhD. 5. Why Is the Life Science Sector Different?FactoidsLife Cycle from Discovery to Market? 10-12 YearsCost? $1 billion (Adams and Branter, 2010)16 Nov 2010 ZephyrBiotech LLC5 Elise Brownell, PhD. 6. Why Is the Life Science Sector Different?FactoidsLife Cycle from Discovery to Market? 10-12 YearsCost? $1 billion (Adams and Branter, 2010)Best Odds of Seeing a Clinical Project go to Market?16 Nov 2010 ZephyrBiotech LLC6 Elise Brownell, PhD. 7. Why Is the Life Science Sector Different?FactoidsLife Cycle from Discovery to Market? 10-12 YearsCost? $1 billion (Adams and Branter, 2010)Best Odds of Seeing a Clinical Project go to Market? 1 in 1016 Nov 2010 ZephyrBiotech LLC7 Elise Brownell, PhD. 8. Why Is the Life Science Sector Different?FactoidsLife Cycle from Discovery to Market? 10-12 YearsCost? $1 billion (Adams and Branter, 2010)Best Odds of Seeing a Clinical Project go to Market? 1 in 10Sunk (Operational) Cost to get to the Clinic?16 Nov 2010 ZephyrBiotech LLC8 Elise Brownell, PhD. 9. Why Is the Life Science Sector Different?FactoidsLife Cycle from Discovery to Market? 10-12 YearsCost? $1 billion (Adams and Branter, 2010)Best Odds of Seeing a Clinical Project go to Market? 1 in 10Sunk (Operational) Cost to get to the Clinic? $3-5 M16 Nov 2010 ZephyrBiotech LLC9 Elise Brownell, PhD. 10. Entrepreneurship = Invention + InnovationInvent: To think up; deviseInnovate: To make changes in the way things are done; to introduce new methods, processes, devices.16 Nov 2010 ZephyrBiotech LLC 10 Elise Brownell, PhD. 11. Entrepreneurship = Invention + InnovationInvent: To think up; deviseInnovate: To make changes in the way things are done; to introduce new methods, processes, devices.BRINGING IDEAS TO LIFE16 Nov 2010 ZephyrBiotech LLC 11 Elise Brownell, PhD. 12. Allocation of VCVenture InvestmentBy Sector Percent Investment $ Dollars, 20092009OtherSoftware 17% 18% HealthcareServices1%Clean Tech 11% Biotech 21%Internet17% Med Dev16 Nov 2010 15%ZephyrBiotech LLC12Elise Brownell, PhD. 13. Regional Allocation of VC Life Science Investment $, 2009 All Others Bay Area38% 29% Boston16% NY 7% San Diego10%16 Nov 2010ZephyrBiotech LLC 13Elise Brownell, PhD. 14. Regional Distribution of Deal Volume 2010, YTDNEOther21%20% NW 4%Mid Atl 21% CAL 34%16 Nov 2010ZephyrBiotech LLC14Elise Brownell, PhD. 15. Life Science Subsector Distribution of Angel/VC Investment YTD through 11/5/201016 Nov 2010ZephyrBiotech LLC15Elise Brownell, PhD. 16. Regional Distribution of Deal Volume2010, YTD100%90%80%70%60% OtherMid Atl50%CAL40% NWNE30%20%10% 0%16 Nov 2010 TxZephyrBiotech LLCDev/Del Dx/PM Tech Plat 16 Elise Brownell, PhD. 17. Regional Allocation of 2009-10 Qualifying Therapeutic Discovery Grant Funds Regional Allocation of 2010 Qualifying Therapeutic Discovery GrantFunding All OthersCalifornia31%29% NW 4%NE15%Mid Atlantic 21%16 Nov 2010 ZephyrBiotech LLC 17 Elise Brownell, PhD. 18. Current Trends in Investment Climate Re-emergence of R and D Limited Partnerships Shift to major pharma for financing and developmentsupport16 Nov 2010 ZephyrBiotech LLC 18 Elise Brownell, PhD. 19. % Financing $ from Specific Sources(redrawn from Burrill 2Q 2010 Report)100%Percentage of Biotech Financing $ from Specific90%80%70%Partnerng60%OtherSource50% VC40% DebtPIPES30% Follow On20% IPO10% 0% 20081Q 09 1Q 102Q 09 2Q 1016 Nov 2010ZephyrBiotech LLC19Elise Brownell, QuarterPhD. 20. Current Trends in Investment Climate Re-emergence of R and D Limited Partnerships Shift to major pharma for financing and developmentsupport Corporate and strategic partnering at earlier stages Re-defining product to include IP and Clinical Proofof Concept Validation Re-sets the value inflection point16 Nov 2010ZephyrBiotech LLC20Elise Brownell, PhD. 21. Average Investment (M USD) By Stage(Through 10/8/10) 25.00 20.00Average Investment, MUSD 15.00 10.005.000.00 Disc/ResPCTox Clin Sub/LaunchStage of Development16 Nov 2010ZephyrBiotech LLC 21Elise Brownell, PhD. 22. Average Investment (M USD) By Stage(Through 10/8/10) 25.00 Invention Innovation 20.00Average Investment, MUSD 15.00 10.005.000.00 Disc/ResPCTox Clin Sub/LaunchStage of Development16 Nov 2010ZephyrBiotech LLC 22Elise Brownell, PhD. 23. Current Trends in Investment Climate Re-emergence of R and D Limited Partnerships Shift to major pharma for financing and developmentsupport Corporate and strategic partnering at earlier stages Re-defining product to include IP and Clinical Proofof Concept Validation Need for taking risks, building value, and creatingorganizational coherence at ever earlier stages16 Nov 2010ZephyrBiotech LLC23Elise Brownell, PhD. 24. Attributes of Agile, Entrepreneurial Life Science CompaniesTraditional, Entrepreneurial Legacy-basedDecision MakingReductive Holistic and MatrixedOperationalWork breakdownFlow, value-creationFocusstructureRegulation Focus Metrics-regulated Self-regulatedPlanning Style Anticipatory, prescriptive, Hypothesis creation directiveProcess StyleOptimizing; efficiencyAdaptive; series of orientedfitness tests16 Nov 2010ZephyrBiotech LLC 24Elise Brownell, PhD. 25. Creating Value: The Differentiated PTP Living statement of unique value proposition Invites cross-functional conversation Oriented to Doing the Right Thing Holistic Contextual: Competitive environment and effective knowledge management practices Sets minimum requirements The null hypothesis Alignment re: stop criteria (early elimination) Builds resilience and coherence Stable reference point for problem solving , recovering from organizational arrhythmia Promotes smoother stage transitions16 Nov 2010ZephyrBiotech LLC 25Elise Brownell, PhD. 26. Creating Value: Building a Decision-BasedOrganization Decisions as value-building products: risk reduction Engages entire organization Embeds CONTEXT and MEANING to actions Shifts organization to self-regulating rather than onlymetrics-regulating Creates transparency and accountability Ensures resource-relevant triggers are pulled at righttime, to fit stage of project ZephyrBiotech LLC16 Nov 201026Elise Brownell, PhD. 27. Decision-Based Timeline:Asking the Right Question at the Right TimeWhich CROs Whichdo we CROs doHow much interview? we hire?material will we need? PRODUCTIONTOXICOLOGY CLINICWho are partner(s)forproduction?16 Nov 2010ZephyrBiotech LLC 27Elise Brownell, PhD. 28. Allocation of Costs Across Functional Areas Through Phase 2 Clinical Development24% CMC/Mfg Preclinical 53% Clinical 23%16 Nov 2010ZephyrBiotech LLC28Elise Brownell, PhD. 29. IgnoranceXCreating Value: Knowledge Management Imperative to introduce time and venue fordistilling information into knowledge andwisdom Reduces unnecessary duplication Allows trends, new insights to emerge Essential in driving decision making Supports organizational memory in a climate of turnover16 Nov 2010ZephyrBiotech LLC29Elise Brownell, PhD. 30. Creating Value: Eliminate Fear-Based Behaviors and Practices Assume success Reduces redundancy and distraction Requires anticipatory spending prior to results Requires best-practices problem solving Requires a change of language from We wontbe able to do that to Whats keeping us fromdoing that? Make communications transparent Both internally and externally Builds credibility16 Nov 2010ZephyrBiotech LLC30Elise Brownell, PhD. 31. Summary Meeting timelinesGrowing value Early integration of invention and innovationas a business model imperative Key tools: Differentiated PTP Creation of a Decision-based culture Incorporating Effective Knowledge Management Practices Eliminate Fear-based Cultures Tapping alternative sources of funding16 Nov 2010ZephyrBiotech LLC 31Elise Brownell, PhD.