From Research to Commercialization

mutebabiesBiotechnology

Dec 6, 2012 (4 years and 7 months ago)

237 views

From Research to
Commercialization


Benjamin Soffer, Manager

Technology Transfer Office

Technion Research & Development Foundation Ltd.


June
2008

Technology transfer is the movement of knowledge
and discoveries to the general public.




Technology Transfer

Knowledge spillover and knowledge diffusion

is a major engine for growth in knowledge based economies

It can occur through:

publications,

educated students entering the workforce,

exchanges at conferences,

relationships with industry.




Intellectual Property Management



Establishing Joint Ventures & Start
-
up Companies



Licensing of Technologies



Collaborations


Industries, Vc’s, Government, Incubators, Other


universities

The role of Technology Transfer Offices


Bayh
-
Dole Act

P.L.
96
-
517

Patent and Trademark Act Amendments of
1980



National Policy Environment


It is the policy and objective of the Congress to use the patent system to:


Promote the utilization of inventions arising from federally supported
research or development.


Promote the commercialization and public availability of inventions.


Disclose to appropriate federal agency any invention created with the
use of federal funds.


Retain ownership, the university generally must notify the agency of its
election to retain title within
2
years of the date of disclosure.

Bayh
-
Dole Act

P.L.
96
-
517

Patent and Trademark Act Amendments of
1980

National Policy Environment




Bayh
-
Dole Act

P.L.
96
-
517

Patent and Trademark Act Amendments of
1980

continuation


Provide the U.S. government a nontransferable, irrevocable, paid
-
up,
nonexclusive license ("confirmatory license") to use the invention.


In granting licenses to use the invention, the university generally must
give priority to small businesses.


When granting an exclusive license, the university must ensure that the
invention will be "manufactured substantially" in the United States.


Revenue distribution (net revenue from commercialization/licencing):the
university must share a portion of the royalties with the inventor(s),
originating unit.














AUTM U.S Licensing Survey (
2004
)



Highlights



Technology Transfer Office Staffing Levels at

U.S Universities

Distribution of Size of Research Programs at

U.S Universities

Total License Income Received by U.S Universities

Invention Disclosures Received by U.S Universities










The Process of Technology Transfer

Research Enterprise


Research
Innovation
Discovery

Evaluation


Development
Patenting
marketing

Business
Development
Licensing

or Start Up

Contract
Management &
Enforcement

RESEARCH

REVENUES

Technology Transfer Process


Research projects

and Centers


Technology

Transfer
Office



Third

Parties


TIME

Research


Program


Ideas for


IP



Patents or Tacit
Know how



Pending no value



Technology sell




license/lump sum



Spin off
-
equity/license



Research grants


From the laboratory to the market
-
place….

Basic Principals observed and reported

Level
1

Technology concept and / or application formulated

Level
2

Analytical and experimental critical function and / or
characteristic proof of concept

Level
3

Component validation in laboratory environment

Level
4

Component validation in relevant environment

Level
5

System / Subsystem model or prototype demonstration
in a relevant environment

Level
6

System prototype demonstration in an operational
environment

Level
7

Technology Readiness Levels

Form the Licensee

Operational Role

Hands
-
in
-
Pockets

Hands
-
Off

Hands
-
On

Up
-
to
-
Elbows

Source: MIT, AUTM, MRUN, U Michigan et al


Licensing Practices

Technion chose “up
-
to
-
elbows”


Models of Academic Approaches to Start
-
ups


Past patent costs reimbursements


Up front payments


Maintenance fees (part of anti shelving mechanisms)


Milestones payments / Sublicensing


Equity versus Royalties


Exit bonus

Structuring the Licensing Deal

Principal university and pharmaceutical company partners
associated with the

top ten biotechnology products in
2002

Nature Biotechnology


21
,
618

-

624

(
2003
)


Average economic terms of university

biotechnology company deals


Nature Biotechnology


21
,
618

-

624

(
2003
)


Myths


Royalties are a significant source of
revenue for the University


Expect a quick return of technology
transfer investment


Companies are eager to accept new
technology from universities


You should broadcast availability of
technology for licensing


The technology transfer office finds
the licensee

Myths vs. Reality

Myths


Royalties are a significant source of
revenue for the University


Expect a quick return of technology
transfer investment


Companies are eager to accept new
technology from universities


You should broadcast availability of
technology for licensing


The technology transfer office finds
the licensee

Reality


In most cases, licensing revenue is
relatively small.


Don't expect product royalties for
8
-
10
years


Most companies want quick time
-
to
-
market


Publishing lists of available
technology is limited in it's effect


The inventor is an important source
for leads

Myths vs. Reality










T
³
-

Technion Technology Transfer

t
3
.technion. ac.il


Foster commercial investment in development of inventions and
discoveries


Generate goodwill: faculty, sponsors, licensees


Financial benefit to the general public, the Technion and the inventors


Increase further the level of openness of the Technion and of Technion's
researchers to commercialization


Build a community of entrepreneurs, business people, industrialists and
investors


T
³
’s main missions

Dimotech

Ltd.

Technion
Seed

Subsidiary
Companies

Subsidiary
Companies

Subsidiary
Companies

Licensing

Spin off


Companies


IP

Patent Disclosure

Patent Registration

Patent Maintenance

T
³
-

Technion Technology Transfer





Increased number of investigators and departments
disclosing

per year.


Increased number of
established companies

per year.


Increased number of
cooperation and licensing

to global
companies.


Increased recognition and
citation

of the Technion`s
effectiveness in moving inventions to products.


Increased
revenues from Licenses / Exits
.


Increased
rate of return on funds invested

in technology
transfer.

Technology Transfer
-

Parameters for Success

New Inventions (
2007
)

N



14

Mechanical Engineering

10

Chemical Engineering

10

Electrical Engineering

10

Computer Science

9

Chemistry

9

Medicine

7

Biomedical Engineering

5

Biology

4

Civil and Environmental Eng

4

Biotechnology And Food Eng

4

Physics


3

Aerospace Engineering

2

Materials Engineering

1

Industrial Engineering

92

TOTAL

92
new invention disclosures:



85
filed



4
in examination



2
released



1
abandoned

0
2
4
6
8
10
12
14
16
18
Medicine
Mechanical
Engineering
Computer
Science
Electrical
Engineering
Chemistry
Biomedical
Engineering
Physics
Biology
Biotechnology
and Food
Engineering
Chemical
Engineering
Materials
Engineering
Civil and
Environmental
Engineering
Aerospace
Engineering
Other
%
289
Patents files to be commercialized

Technion Patent Portfolio (
31.12.2007
)



EIR Program

Community


Building

IP

Generation

Licensing and

New Company

Formation

Founders Instead

of Finders

Dynamic

but Uniform

Process

Market Looking

for Technology

Global & Local

Market

Technion Entrepreneur in Residence Program

Multi

Disciplinary


An Alternative approach to commercialization


* Including: TRDF/DIMOTECH/ TEIC Companies based on Technion IP


but excluding equity holdings in companies not established by TRDF

Company Establishment


No. of Companies*

(
2003
-
2007
)

A leading provider of highly accurate, minimally invasive, easy
-
to
-
use,
miniature surgical assistance systems for a wide range of procedures.


Established in
2001


Developer of the SpineAssist for spinal procedures


FDA approved and clinically tested, the SpineAssist is a highly accurate
solution that enables spinal procedures to be performed with maximum
precision and minimum intervention
.

MAZOR Surgical Technologies, LTD


Case Study

MAZOR Surgical Technologies, LTD




Mazor Surgical held an IPO on TASE


The company recently raised ~$
10
Million at a valuation of ~ $
30
Million.


Since its establishment at the Technion Incubator in
2000
, the company
raised $
30
Million from private & public investors.


TRDF*
-

Holdings on establishment:
77.8
%


* Researchers holdings included

Case Study

continuation

Sanborn Research LLC

Collateral Therapeutics

Success Stories
-

Examples

Developed by Teva Pharmaceuticals in cooperation with


Prof. Moussa
Youdim and Prof. John Feinberg


Parkinson disease is a progressive condition that involves a gradual loss of
nerve cell function in the brain. The nerve cells that are specifically
affected are those that control body movement.


~
4
million people worldwide suffer from Parkinson's disease

Affecting approximately
1
% of the population over the age of
65


Agilect®/Azilect®
-

Azilect® was launched in Israel in March
2005


4
% royalties of net sales


Azilect/ Agilect (Rasagiline) An anti
-
Parkinson's disease drug

Case Study

1.3
Million dollars

(“revolving fund”)


Technion
affiliated
companies


Technologies

3
-
4 projects per year,

~ $ 40,000 each

Mitchell
Entrepreneurial
Program

at the Technion

3
Million dollars

(
3
years)

Technologies

~ 7 projects per year

~ $ 140,000 each

Horowitz Fund

Technologies

1
-
2 projects per year,


~ $ 35,000 each

STAR Fund

2
Million dollars

(
5
years)


Technologies

The Phyllis and
Joseph Gurwin
Fund for

Scientific
Advancement at
the Technion

* not including the TTT fund

Technion Funds*










February,
2006

PROFESSOR ASSAF SCHUSTER


Faculty of Computer Sciences



December, 2005



PROFESSOR KARL SKORECKI


Bruce Rappaport Faculty Of Medicine


April, 2006

PROFESSOR DOV DORI


William Davidson Faculty of Industrial

Engineering and Management .


July , 2006

MR. YEHIEL TAL


Co
-
Founder & CEO


Regentis Biomaterials Ltd.

DR. DROR SELIKTAR


Co
-
Founder Department of Biomedical Engineering


November,
2006

PROFESSOR RON KIMMEL

Faculty of Computer Sciences


April,
2007


MR. ARIK ARAD

CEO, EORD


MR. AVNER ESHED


General Manager, EORD


(E.E
-
B.Sc, MBA)

Technion Webinar Innovation Series







Expand Synergies by:



Developing with MBA Students Technology Transfer
Strategies for Inventions based on Faculty members
disclosures


Team Building



The Technion Entrepreneurial Centre and the

Technology Transfer Office










www.technionseed.co.il


A private seed/pre
-
seed investor



Investing in technology
-
based start
-
ups (diverse fields)



Owned by:


The Technion


Israel’s leading technology academic institute


Battery Ventures


Vertex


SCPVitalife


ProSeed



Licensed as an incubator by the government of Israel






Active since
2003



Located in Haifa


at MATAM hi
-
tech park



7
employees



1
3

investments (Apr.
2003
-

Feb.
2008
)




We seek

ideas for “
high
-
risk/high
-
reward
” high
-
tech ventures, that
are:


Based on innovative, breakthrough technologies


Appeal to very large international markets



We invest

in such ventures:


Up to ~$
1
,
000
,
000


Investment sources:


Direct by the VC funds that own the incubator


Money loaned by the government to the incubator



We grow

such ventures:


For
12
-
24
months


Until they prove their viability (technology, business, management)


And are ready for a large follow
-
on financing round (by the VC funds)

Description

Year

Name

Cell therapy for Parkinson’s

2003

GeneGrafts

Regeneration of cartilage

2004

Regentis

Software protection solutions


2004

Approtect

Transaction prioritization in IT systems

2005

CorrelSense

Enabling paralyzed persons to walk

2005

Argo

Brain CT analysis

2006

Medic Vision

Internet semantic technologies

2007

DataEssence

Visual Search Engine

2007

Vayar Vision

Homeland security

2007

Xurity

investments
2007
-
2003


Portfolio

Field

Investment

Founders

Name

HLS

$800k

Zeev Harel

Ohad Ben
-
Dror

Xurity

(7/2007)

Internet

$800k

Amnon Mishor

Yaron Karasik

Data Essence

(9/2007)

Computerized
Vision

$700k

($100k
-

others)

Ohad Gilboa

Effi Eprath

Vayar

(12/2007)

Print

$900k

($100k
-

others)

Uri Adler

Moshe Frenkel

DigiFlex

(1/2008)

investments
2008
-
2007


Portfolio

THANK

YOU