Business Viability of a Lifescience Early-Stage Project

INSTITUTO DE SALUD CARLOS III SPANISH CELL THERAPY NETWORK December 14th, 2012

Business viability of a scientific project Solving the specific challenges of biotech & medtech products in order to attract investors.

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Credentials

3

€30 mn

>30

$300 mn

NEW THERAPIES LAUNCHED GLOBALLY.

VENTURE CAPITAL RAISED.

INTERNATIONAL LICENSING AGREEMENTS.

INNOVATIVE TECHNOLOGIES ANALYZED

USA, GERMANY, UK.

VENTURE CAPITAL “EARLY STAGE”.

PHARMA, BIOTECH & MEDTECH. 10 years

2 years

5 years

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Index

1. Intro

2. The WRAPUP© methodology of analysis

3. Summary

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Early considerations

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BENEFIT

RISK

TIME

Intro

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TEAM

PRODUCT / TECHNOLOGY

EXIT

FINANCING

Intro

1. The WRAPUP© methodology of analysis

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The WRAPUP© methodology of analysis

Relevant

Unique

Protectable Achievable

Profitable

Is there a real unmet need for your tech today?

Will it stay competitive in the future?

Can it be protected from copyists? What risks & barriers may prevent success?

What How profitable and cashable is it?

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1. What

What will you sale?

Hospital

Physician

How will you sale it?

Patient

Payor

Clear product / service definition

Clear revenue model

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2. Relevant

Market

Customers

Current competition

Patient type/s

Big enough?

•Patient •Doc •Hospital •Payor

Needs

Severe enough?

Better enough?

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3. Unique

Needs Better enough?

Capable enough?

Early enough? Future competition

Same technology

Other technologies

Product S&W

Organization S&W

Time to market

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4. Protectable

Is it Patentable?

Enough Patent life?

Protect

License / sell Patent/s

Know-how

Protected Diclosed Clock starts ticking

Able to be copied Undisclosed Clock stopped

“As late as possible, but as soon as necessary…”

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5. Achievable

What must you prove?

What have you proved?

Target Product Profile

Route Map Validation

Risks and barriers

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5. Achievable

What must you prove?

What have you proved?

INTE

RN

AL

Market adoption

Price, reimbursement, access

Freedom To Operate

Clinical development

Supply Chain

CMC

Pre-clinical development

Scientific assessment

EXTE

RN

AL Potential buyers

Deal value

Deal timing (when)

Regulatory

Risks and barriers

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5. Achievable

What must you prove?

What have you proved?

”Licensable”?

How solid is what you proved?

Probability of success?

Reasonable timing?

Reasonable investment?

Risk mitigation?

TEAM

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6. Profitable

Decision tree

Cash flows

•Target Product Profile •Environment •Probabilized

•Probabilized nodes through the Route map.

Commercial scenarios

•For each scenario

Profitable enough?

Early enough?

5-10x

3-6 yrs

Likely enough? Higher than average.

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6. Profitable

Example: Decision Tree

Valuation was poor:

3x 9 yrs to exit

Summary

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Summary

TEAM

FINANCING

EXIT

PRODUCT / TECHNOLOGY

Resumen

With science, don’t gamble.

Thanks!

www.dynomicsbmt.com

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