John McCulloch PhDVenture Group Advisor

MaRS Discovery District

Post-doc at UCL Medical School, London, UK Licensed monoclonal antibodies to US

company Negotiation, license and transfer process Impressions◦Ease of funding vs. grant system◦Calculation of value and royalty rates◦Seeing our work make a difference in the outside

world UK academic culture re. commercialization

Drug Royalty Corporation in 1994 (DRI Capital)

$1.0 billion under management Life sciences investor – acquires royalties on

drugs, diagnostics, etc. Security = due diligence Reviewed hundreds of opportunities, many

arising from academic labs in the US and UK Joined MaRS in 2007

MaRS is an international convergence centre based in Toronto

Our mission is to create successful global businesses built from Canada’s science and technology

We provide advisory services, entrepreneurship programs, conference space and office/lab facilities

Wide range of tenants at MaRS: startups to Merck Recently launched MaRS Innovation◦ Will commercialize innovations from 16 Toronto institutions◦ Will select most promising inventions and provide funding for

patent prosecution and pre-investment development (POP and “de-risking”)

Government◦ Medical Research Council◦ $1.0 billion R&D 2007-8◦ 130 patent families◦ $152 million license revenue in 2007-8

Private◦ Wellcome Trust ($23 billion endowment)

Charities◦ Cancer Research UK◦ Arthritis Rheumatism Campaign◦ National Heart Research Fund◦ Diabetes UK

National Research Development Corporation (1948)◦Mission: to commercialize publicly funded research

Fused with National Enterprise Board in 1981 to create the British Technology Group (BTG)◦BTG became custodian of many NRDC assets◦1992 – management buyout◦1995 – LSE flotation = BTG plc

Major BTG assets = MRI, BeneFIX, Campath Initially “de-risked” technologies and licensed

out Evolved to product development focus

Founded in 1913 Numerous landmark discoveries:◦ Influenza virus◦ Penicillin◦DNA◦ Link between smoking & lung cancer◦Monoclonal antibodies◦C. elegans genome

35 MRC institutes across UK

Founded in 1947 (Cambridge, UK) 13 Nobel laureates Basic molecular biology research led to a

wealth of antibody technologies:◦Monoclonal antibodies (Milstein & Kohler, 1975)

NRDC did not file patents!◦Chimeric antibodies (Neuberger & Rabbits 1984)◦Humanized antibodies (Winter 1986)◦Human antibodies (Winter 1990s)◦Human antibody genome mice (Neuberger 1990s)◦Single domain antibodies (Winter & Tomlinson

2000)

Humira (Abbott) RA, Crohn’s, psoriasis US$1.54 billion sales

Tysabri (Biogen Idec) MS

Actemra (Roche/Chugai) RA

Campath (Genzyme/Bayer) lymphoma, RA

Vectibix (Amgen) Colorectal cancer

Celltech acquired by UCB ($2.25 billion)

Cambridge Antibody Technology acquired by AstraZeneca ($1.25 billion)

Domantis acquired by GlaxoSmithKline ($411 million)

Licenses to 37 other companies MRC-LMB has played a critical role in the

development of powerful, selective drugs for autoimmune disease and cancer

2000-2006◦Humanized antibodies = $150 million◦Human antibodies = $227 million

MRC-sourced antibody products are still growing◦Humira is a blockbuster drug◦>$1.5 billion sales/year

MRC uses the revenues from antibody technology to support basic research and expand research infrastructure

The UK has been extremely successful in life sciences commercialization based on top tier research

If you can’t patent an initial technology, keep innovating!◦ LMB created five next generation technologies after

mABs Get the technology out in the field as widely as

possible via non-exclusive licenses Reinvest the proceeds in basic research◦ Main driver of innovation in MRC-LMB case

Importance of angels

John McCulloch PhD

416-673-8127jmcculloch@marsdd.com