A case study on commercializing science from academic lab CENG 109 Class 25

A case study on commercializing A case study on commercializing science from academic labscience from academic lab

CENG 109 Class 25 CENG 109 Class 25

Class AgendaClass Agenda

• Case study on Langer Lab at MITCase study on Langer Lab at MIT• Role-playing on Cool Lab at USTRole-playing on Cool Lab at UST

Case study: Langer Lab @ MIT Case study: Langer Lab @ MIT

FundingFunding US$6.5MUS$6.5M

($4.3M from ($4.3M from govt.)govt.)

PatentsPatents Disclosure (12); Disclosure (12); Applications (23); Applications (23);

Granted (16)Granted (16)

Academic Academic PapersPapers

3232

Research Research StaffStaff

6868

FacilitiesFacilities 10,000 sq. ft. 10,000 sq. ft.

Lab space Lab space

Langer Lab performance in 2003

Examples of Langer Lab SpinoutExamples of Langer Lab Spinout

Harvard Business School Case Study

QuestionsQuestions

• How does Langer Lab successfully How does Langer Lab successfully commercialize science? commercialize science?

• What should the university do to grow the What should the university do to grow the scientific capital?scientific capital?

• What should the government do to facilitate What should the government do to facilitate the transfer science to industry?the transfer science to industry?

• How should the businesses based on the How should the businesses based on the scientific capital be managed? scientific capital be managed?


From lab research to science-based From lab research to science-based businessesbusinesses

““What excites me, personally, is that you can use science as a tool to create What excites me, personally, is that you can use science as a tool to create things that can change the world. Everything we’ve tried to do is to things that can change the world. Everything we’ve tried to do is to make discoveries that will affect human life.” make discoveries that will affect human life.”

- Professor Robert Langer- Professor Robert Langer

Four elements on an ideal research project: Four elements on an ideal research project:

1.1. A huge ideaA huge idea : recognizing critical need of a society; met by inventing : recognizing critical need of a society; met by inventing a platform producta platform product

2.2. A seminal paperA seminal paper: establish the underlying science of product conecpt: establish the underlying science of product conecpt

3.3. A blocking patentA blocking patent: preventing future entry by competitors: preventing future entry by competitors

4.4. In vivo studiesIn vivo studies: results to demonstrate efficacy of research: results to demonstrate efficacy of research


Timeline for creating AIR®Timeline for creating AIR®


• Recognize that the particle deposition depends on Recognize that the particle deposition depends on its aerodynamic diameterits aerodynamic diameter

Aerodynamic diameter ____________Aerodynamic diameter ____________= actual particle diameter x = actual particle diameter x √ particle density√ particle density

• Large porous particleLarge porous particleHas the same aerodynamicHas the same aerodynamicProperty as small dense Property as small dense particleparticle

AIR® Concept AIR® Concept

Picture: Science 276(1868), 1997

Working with Technology Licensing Working with Technology Licensing OfficeOffice

Seminal Paper: Proof of ConceptSeminal Paper: Proof of Concept

Animal results Animal results

Demonstratetechnology worksin animals

Science 276(1868), 1997

Patents and Technology TransferPatents and Technology Transfer

• MIT: grant 80—100 technology licenses per year MIT: grant 80—100 technology licenses per year

about 10 new biotechnology companies per year about 10 new biotechnology companies per year

• 510 technology disclosure

• 159 US patents issued

• 94 licenses and options granted

• 20 companies founded around MIT IP

2004 MIT statistics:

•Akceli: drug discovery arrays•Alnylam: siRNA therapeutics•Advanced inhalation research: aerosol delivery of drugs•Matritech: bladder cancer detection•MnemoSciences: shape memory polymersFor medical devices•Microbia: antifungal drug discovery•Momenta: polysaccharide drugs•Ribocept: anti-RNA drugs•Cardium: chloresterol transport therapeutics•Sirena: anti-Alzheimer’s drugs•Microchips: chip-based drug delivery •Galenea: anti-schizophrenic drugs

Sampling of biotech companies formed out of MIT since 1998

Nelsen, L.L. Journal of Commercial Biotechnology. 11(4):330-336, 2005

The entrepreneurial communityThe entrepreneurial community

• MIT is surrounded by an entrepreneurial MIT is surrounded by an entrepreneurial community in Cambridge/Bostoncommunity in Cambridge/Boston• Seasoned executives, lawyers, accountants, Seasoned executives, lawyers, accountants,

consultants, real estate managers, investorsconsultants, real estate managers, investors• ““Knowledgeable money” helps fund and Knowledgeable money” helps fund and

guide a start-upguide a start-up• Venture capital funds Venture capital funds specialize in specialize in

biotechnology start-upsbiotechnology start-ups

Nelsen, L.L. Journal of Commercial Biotechnology. 11(4):330-336, 2005

Network of PeopleNetwork of People


QuestionsQuestions

• How does Langer Lab successfully How does Langer Lab successfully commercialize science? commercialize science?

• What should the university do to grow the What should the university do to grow the scientific capital?scientific capital?

• What should the government do to facilitate What should the government do to facilitate the transfer science to industry?the transfer science to industry?

• How should the businesses based on the How should the businesses based on the scientific capital be managed? scientific capital be managed?


Scenario for Role PlayingScenario for Role Playing

PhD Students and Postodocs

PhD Students and Postodocs

HKU medical School

Collaborators

HKU medical School

Collaborators

HK Govt.HK Govt.

Chinese Govt.

Chinese Govt.

Established Drug Co.

Established Drug Co.

VentureCapitalist

VentureCapitalist

UST TechTransfer Ctr.

UST TechTransfer Ctr.

USTSenior Management

USTSenior Management

Dr. Coolat UST

Dr. Coolat UST

Scenario for Role PlayingScenario for Role Playing

Dr. Cool, an aspiring professor in UST has manyDr. Cool, an aspiring professor in UST has manyideas on using biotechnologies to solve unmetideas on using biotechnologies to solve unmethealth care problems. He figures that given thehealth care problems. He figures that given the right environment, these ideas can become theright environment, these ideas can become thenext star companies and will save improve the lifenext star companies and will save improve the lifeof millions of people. of millions of people. What should Dr. Cool do toWhat should Dr. Cool do toachieve his goals? What are the majorachieve his goals? What are the majorchallenges? Will the government and universitychallenges? Will the government and universityhelp or hurt his endeavor? (Last HW assignment; due Dec 7; help or hurt his endeavor? (Last HW assignment; due Dec 7; ½ page maximum)½ page maximum)

Questions for your roleQuestions for your role1.1. Dr. Cool: Dr. Cool:

How should you move your ideas forward? How should you move your ideas forward? Who should you contact? Who should you contact? What do you want to gain from the commercialization of science? How should What do you want to gain from the commercialization of science? How should you be involved in the science business? you be involved in the science business?

2.2. UST senior management: UST senior management: What is the mission of the university? What is the mission of the university? Does supporting the commercialization of science contradict with this Does supporting the commercialization of science contradict with this mission? mission? What policies will you set up to encourage / discourage the commercialization What policies will you set up to encourage / discourage the commercialization of science? of science?

3.3. UST technology transfer:UST technology transfer:What is the purpose of your department in the university?What is the purpose of your department in the university?Filing and maintaining patents costs money, how do you determine whether it Filing and maintaining patents costs money, how do you determine whether it is worth the effort for a particular technology?is worth the effort for a particular technology?How would you protect the interest of the university when a company How would you protect the interest of the university when a company expresses interests to license a technology from UST? expresses interests to license a technology from UST?

Questions for your roleQuestions for your role

4.4. Venture capitalist: Venture capitalist: • What do you consider when you evaluate a technology? What do you consider when you evaluate a technology? • What other factors determine whether you would invest in a What other factors determine whether you would invest in a

proposal based on a science business?proposal based on a science business?• Once you invest in a company, what would you do to ensure that Once you invest in a company, what would you do to ensure that

you can gain the most using the best exit strategy? you can gain the most using the best exit strategy?

5.5. Established drug companyEstablished drug company• When would you decide to license a technology from university? When would you decide to license a technology from university? • Will you contract a university lab to perform research for developing Will you contract a university lab to perform research for developing

the key product candidates for your company? the key product candidates for your company? • When would you decide to acquire a start-up company? How much When would you decide to acquire a start-up company? How much

would you pay? would you pay?


6.6. PhD students and postdoctoral researchersPhD students and postdoctoral researchers• What do you care most when you are in graduate school? What do you care most when you are in graduate school? • What can you gain or lose from working on a technology to be What can you gain or lose from working on a technology to be

commercialized? commercialized? • What experiments do you need to perform? What experiments do you need to perform? • Your research aims to solve a health problem. Whom should Your research aims to solve a health problem. Whom should

you get advice to make sure your research is on the right track?you get advice to make sure your research is on the right track?

7.7. HKU medical school collaboratorsHKU medical school collaborators• As a medical doctor, are you interested in working with an As a medical doctor, are you interested in working with an

engineer / scientist? engineer / scientist? • What can you gain or lose from such collaboration? What can you gain or lose from such collaboration?


8.8. Hong Kong Govt/ e.g. Funding agency (UGC)Hong Kong Govt/ e.g. Funding agency (UGC)• Do you support the commercialization of science? Do you support the commercialization of science? • If yes, how would you demonstrate your commitment? If not, If yes, how would you demonstrate your commitment? If not,

why?why?• How would your stance change the research funding scheme? How would your stance change the research funding scheme?

Taxation scheme? Other policies? Taxation scheme? Other policies? • How can you persuade the public to support your position?How can you persuade the public to support your position?

9.9. Chinese Government / e.g. Regulatory Agency (SFDA)Chinese Government / e.g. Regulatory Agency (SFDA)• Is a knowledge-based economy important for China? Is a knowledge-based economy important for China? • What is lacking right now to provide an environment for What is lacking right now to provide an environment for

knowledge-based industries?knowledge-based industries?• Should the regulations on drug approval be more stringent or Should the regulations on drug approval be more stringent or

less stringent to encourage the development of modern less stringent to encourage the development of modern biotechnologies in China? biotechnologies in China?

Documents

A case study on commercializing science from academic lab CENG 109 Class 25