business & business models hic 2015 harvard medical school anupendra sharma siemens venture...

Business & Business Models

HIC 2015

Harvard Medical School

Anupendra SharmaSiemens Venture Capital

SLP | Startup Leadership Program

[Getting down to] Business

Business is about people selling things to

people.

“You either make sh*!, sell sh*!, or

you are sh*!.”

Larry Ellison, Founder and CEO Oracle

(Exercise)What’s important in business

People [first]

Exercise---

What do you need to do to make the most out of this

class ?

“Medicine is not a business...”

Yet its 17.6% of our economy

Money may or may not matter to you…

…but it makes the system work (somewhat)

Dr. Raymond F. Schinazi Frances Winship Walters Professor of Pediatrics & Director of the Laboratory of Biochemical Pharmacology Emory University

Founder Pharmasset (Sovaldi; Hepatitis C’ 90% cures after 12-weeks)acquired by Gilead for $11B

Business Models

A startup is…

“…an organization in search of a repeatable and scalable

BUSINESS MODEL”

Steve Blank

What is a business model

“A business model describes how your company makes money” (Steve Blank)

Exercise---

What do you need to do to make the most out of this

class ?

How do they make money?

Business models of these segments ?

[Why are they changing]

Labcorp DX

MRI Mfrs

Hospitals

DX Mfr Insurance Biotech

Exercise----

Can you think about business model

innovation in biotech ?

Life cycle extension strategies…

How do they generate revenues?

IGNT: Image-guided navigation & therapy•Used to go into the extremities of the lung to biopsy cancers that are unreachable

Superdimension, acquired by Covidien $300M

POC: Point-of-care blood-gas analyzers

Epocal, acquired by Alere $166M

Transcatheter Aortic Valve 14% versus 19%

CoreValveacquired by Medtronic$1.1B

SmartPill: The wireless pill

ProteusInvestment from NovartisFiled to go public

Aravind Eye: 4M surgeriesProfitable not-for-profit. Huh?

Can you think of an interesting business model in

healthcare

What is the product?What is the problem do you solve?What is the business model?

Speaking of people…

How to make the most out of this class ?

HIC Alumni [Many started companies]

Sarah (McKinsey)* Angela (Roche)**Shyla (Flagship)**Paulina (Polaris/MIT)Ketki (Puretech Ventures)Carlos (Third Rock/Sage Therapeutics)*Chi (Sage Therapeutics)*Adriana (McKinsey)*Hubo Li (McKinsey)*Dave R (Started a biotech company)* HIC Leadership team ** Harvard Biotech Club

How to make the best of this class

The speaker is your friend (you’re home; they’re away)Ask questionsKnow the peopleIt’s not schoolGet out of the hospital / labGet on Twitter!