When Science Means

Business:
How You Participate in Bridging the Divide
Between Discoveries and Marketable
Technologies

Eric Vieira, PhD

Assistant Director,
Office of Technology & Business Development
Mount Sinai School of Medicine, NY, NY

October 2009
 The Private Market
Amount Invested by VCs ($B)
$120

$100

$80

$60

$40

$20

$0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Year
 The Public Market
Nasdaq Performance
6000

5000

4000

3000

2000

1000

0
 The Current Job Market
| Layoffs
• 2,690 mass layoff actions (AUG ‘09)
• 259,307 lost jobs (AUG ‘09)
| Salary reductions
• Salary Caps & Reductions From the Bureau of Labor Statistics’
Mass Layoffs Report – August 2009

• Bonus reductions
| Look for defensive industries
• Healthcare (Drugs, Devices and IT)
• Technology - Alternative Energy
• Business Consulting
• Academia / Higher Education
 NIH Funding

Amount Invested ($M)

$35,000

$30,000

$25,000

$20,000

$15,000

$10,000

$5,000

$0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Year
Creativity Grows
 Self Assessment
is the process of gathering information about yourself
in order to make an informed career decision.

| What do I want to do
• Personal values ($$$, mentoring, fighting poverty)
• Interest (science, business, entertainment)
• Personality (extrovert, introvert, self-starter, team-player)

• Skills (hard and soft)

| Where do you want to live/work

• Are you geographically constrained?

| When are you looking to start

The Whole-Person Paradigm*

Mind

Spirit

* Adapted from The 8th Habit from Effectiveness to Greatness by Stephen Covey
The Whole-Job Paradigm*

Mind

Spirit

* Adapted from The 8th Habit from Effectiveness to Greatness by Stephen Covey
From Idea to Market
Drug Development Stats
from theTufts Center for the Study of Drug Development

| 1991: The average cost to develop a new

prescription drug is $231 million ($489 million in
today’s dollars).
| 2001: The average cost to develop a new
prescription drug is $802 million ($977 million in
today’s dollars).
| 2006: The average cost of developing a new
biotechnology product is $1.2 billion ($1.3 billion
in today’s dollars).
| New drug development takes EIGHT years, on
average
 Drug Development History

$25,000,000
Sales Revenues ($)

$20,000,000

$15,000,000

$10,000,000

$5,000,000

$-
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Year
 From Idea to Market
Industry Scientist
Licensing Professional
Business Development Professional Medical Communications
Strategist Medical Science Liaison

Industry Executive
IP Lawyer

Academic Investment Banker

Clinical Research
Scientist Manager
Sales & Marketing
Specialist
Technology Development Manager
Licensing Professional
Business Development Professional
Management Consultant
Equity Analyst
Entrepreneur

Venture Capitalist
Your Piece of the Pie
Shared licensing revenues

Technology Development Office

School

$25,689,216 $27,300,441 Inventors

$25,689,206

Department
What is Technology
Transfer?

www.ncat.edu

…active technology management

with commercialization goals
The Job: Technology
Manager
| Work Day: Average 8 hours/day
z Typical 9-5 work day
| Some travel required
z Partnering conferences, professional meetings (AUTM,
LES), VC forums, some science conferences
| Offices in most academic institutions and
Licensing groups within industry
| Starting position: Associate
| Salary: $60K-$90K,
z No bonuses, good time off (20 plus days/yr)
Where to go from there
| Senior Associate/Assistant Director
(Salary Range: $70K-$130k)
| Associate Director
| Licensing Manager/Director within Industry
| Partner/Manager at a Venture Capital Firm
| Management Consultant
| Industry Strategist
| Executive at a biotech company
| Business Development Manager
What is Equity Research?

…an investment advisory service

 Three Types of Analysis
| Fundamental Analysis
z A method of evaluating a security by attempting to
measure its intrinsic value by examining related economic,
financial and other qualitative and quantitative factors.
z Attempt to study everything that can affect the security's
value, including macroeconomic factors (like the overall
economy and industry conditions) and individually specific
factors (like the financial condition and management of
companies).
z Most sell-side analysts are perform fundamental analysis.
They try to determine a specific asset value.
(Overbought/Oversold)

| Technical Analysis (“Chartists”)

z A method of evaluating securities by analyzing statistics
generated by market activity, such as past prices and
volume.
Monte Carlo z Do not attempt to measure a security's intrinsic value, but
Simulations instead use charts and other tools to identify patterns that
can suggest future activity.

| Quantitative Analysis (“Quants”)

z A method that seeks to understand behavior by using
complex mathematical and statistical modeling,
measurement and research. By assigning a numerical
value to variables, quantitative analysts try to replicate
reality mathematically.
Three Pillars of Equity
Research (Biotechnology)
| Biomedical Science & Clinical Knowledge
z Not only drug mechanisms of action (MOA), but also disease pathogenesis
z Intellectual property, marketing exclusivity
z Human clinical trials (Phase I, II, III & IV)
z FDA approval process
z Current treatment gold-standards or recommended therapies
z Pharmoeconomics, drug costs & reimbursement
z Marketing & sales including an understanding of the distribution process
z US, but don’t forget EU, Japan and China (emerging markets)

| Financial Acumen
z Know your way around financial statement (Income Statement, Balance Sheet and
Statement of Cash Flows)
z Asset valuation methodology (discounted cash flows, P/E ratios, Sum of the Parts)
z Mergers & Acquisitions, collaborations and royalty streams
z Understand trading

| Exceptional Soft Skills

z Curiosity
z Enjoy writing
z Analytical mind
z Detailed oriented and diligent
z Strong verbal communication skills, both in person and on the phone
z Confidence
z Works well under pressure
The Job: Equity Analyst
| Work Day: Average 10-12 hours/day
z Early AM start, typically 7AM
| Some travel required
z Medical conferences, investor conferences, client
meetings, and company visits
| Firms located in/around major cities primarily,
though international as well
| Starting position: Associate
| Salary: $70K-$100K,
z plus annual bonus (40%-100% of base*)
* On a good year…2008 (not a good year) 10%-50% of base
Where to go from there
| Senior Analyst (Salary Range: $125K-
$300k+ base, plus annual bonus of
50%-100%+ of base, *on a good year)
| Portfolio Manager
| Investment Banker
| Management Consultant
| Industry Strategist
| Executive at a biotech company
| Business Development Manager
| Partner/Manager at a Venture Capital Firm
Job Search Strategy
| Get your resume updated
| Take a course – Schools of Continuing &
Professional Education
| l
| Company websites – career sections
| Recruiters/Career search Websites
z GloCap.com
z dropoutclub.org (D.O.C)
z Idealist.org
| Networking, networking, networking
| BE PREPARED and JUST DO IT
From Idea to Market
Thank You!

Personalized
Medicine

Eric Vieira, PhD

staeva.vieira@gmail.com

October 2009