ucsf life sciences: week 7 therapeutics: resources, activities, costs

Value PropositionsLean Launchpad: Digital Health

UCSF Entrepreneurship CenterOctober 1, 2013

Abhas Gupta, MDMohr Davidow Ventures

@abhasguptamd

Karl%Handelsman%Codon%Capital%%

Weekly%Office%Hours:%4:30<5:30%before%class%

[email protected]%

Resources,%AcEviEes,%and%Costs%Lean%Launchpad:%TherapeuEcs%

%UCSF%Entrepreneurship%Center%

November%12,%2013%%




@abhasguptamd

Resources,%AcEviEes,%and%Costs%

This%Week%

How$does$your$approach$build$value$be3er$than$everyone$else?!

This%Week%

Are%you%really%cheaper,%%beQer,%faster?%




@abhasguptamd

RESOURCES,(ACTIVITIES,(COSTS(Biotech%Features%




@abhasguptamd

Biotech%Value=%technology,%talent,%transacEons%

•  Finance%– Equity%Raise,%Non<diluEve,%Industry%CollaboraEon%

•  Physical%– Core%team%coordinates%best%worldwide%resources%

•  Intellectual%Property%– Key%value%is%IP,%but%only%key%IP%creates%value%

•  Talent%– Match%experEse%to%problem,%relevant%experience%




@abhasguptamd

Resources:%TherapeuEc%Points%•  Physical%

–  Facility%creates%no%value,%acEviEes%via%true%partners%creates%data%to%drive%value%

Major%players%cu^ng,%they%do%not%want%your%overhead%–  Capital%intensity%is%related%to%how%much%risk%needs%to%be%assumed%

prior%to%creaEng%value%•  pre<clinical%data%vs.%a%phase%III%trial%

It%is%more%interesEng%for%an%entrepreneur%if%the%risk%reward%is%high%early%where%an%innovaEve%insights%can%dominate%

•  Financial%Resources%–  Understand%total%costs%and%potenEal%collaborators%–  “TransformaEonal%TransacEon”%




@abhasguptamd

TransacEons%not%IPOs%built%this%city!%




@abhasguptamd

Corporate%Partnerships%

•  OperaEng%capital%•  Technology%or%resources%from%the%partner%– FormulaEon%– High%throughput%screening%

•  More%shots%on%goals%– There%have%been%collaboraEons%where%the%future%upside%is%shared%even%if%the%winning%asset%originates%in%the%larger%company%




@abhasguptamd

Culture%vs.%Talent%

•  Good%culture%aQracts%talent%•  Good%culture%aligns%talent%to%operaEonal%plan%•  Good%culture%allows%talent%the%freedom%to%improve,%adapt,%overcome,%re<invent%

•  Good%culture%embodies%focus,%drive,%talent%•  Good%culture%values%performance%•  Good%culture%improves%talent%




@abhasguptamd

Intellectual%Property%

•  Valuable%IP%protects%approaches%to%improve%a%paEent%outcome%

•  There%are%more%novel%chemical%structures/proteins%possible%than%atoms%in%the%universe%

•  There%are%very%few%early%stage%assets%with%compelling%quality%data%demonstraEng%disease%modifying%potenEal%




@abhasguptamd

Cost%Structure:%Business%Case%

•  Need%Emeline%– Cost%to%produce%data%as%program%progresses%– Metrics%match%your%MVP%– Your%advantage%is%the%ability%to%bring%together%resources%and%insight%into%an%operaEonal%plan%•  Ability%to%drive%toward%value%•  Prototype%generaEon%and%tesEng%avoids%obstacles%•  Product%centric%culture%driving%toward%IND%candidate%




@abhasguptamd

Can%you%show?%•  Pre<clinical%models%–  Disease%modifying%mechanism%of%acEon%–  Benchmark%against%compeEng%programs%

•  You%are%compeEng%against%everything%including%generics%and%pre<clinical%programs%

–  Generate%and%evaluate%proto<types%•  The%goal%is%to%produce%the%highest%quality%asset,%extreme%insight%is%needed%to%know%when%to%invest%more%to%“keep%going”%

•  Metrics%need%to%be%understood%from%day%one%and%constantly%reviewed.%%Your%experEse%must%be%the%best%in%the%world.%

•  There%is%not%“reality%distorEon%field”%without%data%to%back%it%up%%%

What%does%it%cost?%Who%cares%the%most?%What%will%they%pay?%




@abhasguptamd

Partner%Cost%Analysis%

•  Upfront%%•  Ongoing%support%•  Outgoing%funds%to%each%stage%•  Risk/reward%at%each%stage%




@abhasguptamd

[email protected](My%Contact:%Put%LLP%in%Subject%Line%for%extra%points%%

ucsf life sciences: week 7 therapeutics: resources, activities, costs

Education

abhas gupta

mdmohr davidow ventures

va propositionslean

hou propositionslean

ma ability

transace finance

t capital