Innovation, Commercialization, and Start-Ups in Life Sciences: 1st Edition (Hardback) book cover

Innovation, Commercialization, and Start-Ups in Life Sciences

1st Edition

By James F. Jordan

CRC Press

254 pages | 29 B/W Illus.

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pub: 2014-11-05
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Description

Innovation is the translation of a new method, idea, or product into reality and profit. It is a process of connected steps that accumulates into your brand or reputation. However, there can be many pitfalls and wrong turns on the road to realizing this goal. Innovation, Commercialization, and Start-Ups in Life Sciences details the methodologies necessary to create a successful life sciences start-up from initiation to exit. You will gain an appreciation for the necessary data, partnership, and skills to be acquired and the constituencies that must be satisfied along the way.

The book examines how life sciences start-ups can create an exit for their investors by recognizing that a liquidity event is not consummated without due diligence. Due diligence is bigger than validating accounting transactions. It ensures the company is solving an important customer problem, demonstrating sales access, and making sure that intellectual property is impervious to competitive advancement. The due diligence process supports the telling of a compelling story to customers, investors, regulators, and acquirers.

Written by an expert who has worked with more than 200 life sciences start-ups during the past decade, the book discusses specific processes and investor milestones that must be navigated to align customer, funder, and acquirer needs. It examines these processes from the perspective of marketing value through a focus on the needs of individual constituents—investors, regulators, customers, and exit candidates. The book presents data and analytical processes articulating the fundable milestones for angel and venture capital. It gives you the tools needed to create branding for public investors and more.

Reviews

"So how do you get more new innovative technology to market? Well, you take risks for sure, but you have to have a process for churning the evolution of technology and turning concepts in the minds of researchers and entrepreneurs into commercialized products in the market. The contents of this book will not only do that for the reader, but the book will also show the pitfalls to avoid along the way. Not every good idea is able to get to market. … And what causes innovators to fail? The answers to these and other important questions are addressed in the book."

—From the Foreword by John W. Manzetti, President and CEO, Pittsburgh Life Sciences Greenhouse, Founder, Managing Director, PLSG Accelerator Fund

"This book, and the approach the author describes in it, is based in extensive real-life experience. The author gives the reader the theory behind innovation and commercialization, but then adds the application details only an experienced professional can deliver. … I like the fact that the book is driven from the perspective of the investor versus the technologist or policy analyst. … I think the author has written a very useful guide that is clear and compelling."

—William Donaldson, Christopher Newport University, Newport News, Virginia, USA

Table of Contents

Innovation Is a Process of Connected Steps

Investment Uses a Translation Process to Deliver Innovation

Investment Is Critical to a Nation’s Prosperity

The Journey of Innovation Begins with Investment

The United States Helps Small Companies Conduct R&D

Commercialization Is Primarily Executed through Two Organization Types

Investment Must Be Connected to Exit

Angels and Venture Capitalists Invest in Commercialization

The Stages of Start-Up Financing

The Players in Start-Up Financing

Create Liquidity for Your Investors

A Liquidity Event Is Not Consummated without Due Diligence

A Start-Up Is Designed to Be Temporary

The Reasons for Due Diligence

Risks Associated with Due Diligence

Due Diligence Reputation Is a Critical Business Process

Due Diligence Reputation Is a Critical Brand Component

Do What You Say, Then They Will Trust What You Forecast

Ambiguous Processes Are a Quality Assurance Problem

The Components of a Due Diligence Business Process

Align with the Industry Norms

Find the Industry Norms

Solve an Important Customer Problem

The Disease State Model Identifies the Triggers to Risk and Creating Market Value

The Health Care Flow Chart Visualizes the Market’s Value Chain

Demonstrate the Ability to Access the Sales Channel

Gather Domain-Experienced Personnel to Reduce Risk

Government

Channel Partners

Customers

Domain-Experienced Personnel

Acquirers

Capital Providers

Suppliers and Contractors

The Management Team

A Thoughtful Gathering of Experience Reduces Risk

Determine the Acquirer’s Strategic Future and Purchase Triggers

Find Your Targets (Potential Acquirers)|

Develop Industry Micro and Macro Maps

Analyze the Industry’s Product Life Cycle

Analyze Your Acquirer’s Product Life Cycle

Finalize Your Target List and Uncover the Acquirer’s Purchase Triggers

Map Your Start-Up’s Exit Points

Determine What They Want to Buy: It Could Be More Than IP

The Acquirer Purchase Trigger Database

Align an Investor’s Fundable Milestones and an Acquirer’s Exit Points

Know Your Targets: Arrive Early and Cheaply

Add the Acquirer’s Exit Points to Your Funding Map

Create a Funding Relationship Management System

Plot Your Funding Syndicate by Working Backward

Create Your Tactical Approach by Investment Class

Install a Management and Measurement System

Plan-Do-Check-Act (PDCA)

Create an IP Pyramid for Impervious Positioning

Can the Technology Create a Franchise Category?

Can the Technology Create a Product Category?

Is There a Specific Class of Patient or Clinical Situation Where the Patent Would Be the Obvious Answer?

Is There Outcomes Evidence?

How Can the Patent Be Built upon over Time to Evolve for Distance as Other Players Attempt to Enter the Market?

A Start-Up Must Tell a Compelling Story

A ddress Your Story to the Needs of All Constituencies

The Customer’s Story

The Acquirer’s Story

The Funder’s Story

Deliver to Your Plan

Mission Statement

Executive Summary

Overview

The Opportunity

The Market

The Competition

The Unfair Advantage

Proprietary Relationships

Proprietary Knowledge

Intellectual Property

Regulatory and Reimbursement

The Company and Management

The Commercialization Plan

Capitalization and Exit Strategy

Financial Projections and Risks

Tell a Compelling Story with the Investor Pitch

The Preview

The Venture Concept

The Market Need

The Product Offering

The Market Opportunity

The Competition

The Business Model

The Commercialization Plan

Future Milestones

The Management Team

Funding Needs

The Acquirer’s Needs

Opportunity Summary

Continuously Improve Your Message with the Plan-Do-Check-Act Cycle

Notes

Index

About the Author

Jim Jordan, a Distinguished Service Professor of Healthcare & Biotechnology Management and Senior Director of Healthcare and Biotechnology Programs at Carnegie Mellon University’s Heinz College, serves as the Chief Investment Officer of the Pittsburgh Life Sciences Greenhouse, a public-private economic and venture fund owned by Carnegie Mellon University and the University of Pittsburgh.

As an accomplished Fortune 20-level executive with companies such as Boston Scientific, Johnson & Johnson and McKesson, Jim has leveraged his experience in several startup ventures and is active on multiple Boards of Directors. Through the Pittsburgh Life Sciences Greenhouse, he has applied his 25 years of experience in industry, consulting and academia to work with over 400 life science startup companies, with direct investment in 75 of them.

Subject Categories

BISAC Subject Codes/Headings:
BUS042000
BUSINESS & ECONOMICS / Management Science
MED009000
MEDICAL / Biotechnology
TEC059000
TECHNOLOGY & ENGINEERING / Biomedical