Biomedical Commercialization

1

• Biomedical Commercialization
• How To Determine if Your Idea Will Be
  Commercially Successful?

Nancy Patterson Venture Analyst Vice
President Alfred E. Mann Foundation for
Biomedical Engineering
Alfred E. Mann Foundation for Biomedical
Engineering
2
Who is Alfred E. Mann and Why Does He Have a
Foundation?

• Alfred E. Mann is an 83 year old serial
  entrepreneur living in Los Angeles with a masters
  in physics from UCLA, and numerous honorary
  doctorates.
• He has founded more than a dozen successful
  biomedical and aerospace companies.
• He has taken two companies public and has sold
  seven of the companies earning more than 10
  billion dollars.
• Mr. Manns seek ways to use the vast bulk of his
  acquired wealth for the benefit of mankind and
  has established the Alfred Mann Foundation for
  Biomedical Engineering to manage the distribution
  of these monies.
• He has committed this wealth to the establishment
  of biomedical product development institutes
  (Alfred Mann Institutes) at selected elite
  research universities around the globe.
• Alfred E. Mann Institutes are established to
  accelerate development and increase the
  commercialization value of compelling biomedical
  technology  

Alfred E. Mann Foundation for Biomedical
Engineering
3
Timeline of Alfred E. Mann Companies
4
Giving Money Away Is Harder Than You Think

• 10 - 12 Alfred Mann Institutes (AMIs) being
  established at elite research universities are
  each awarded a minimum of 100 million dollars
• Concept is driven by the fundamental belief that
  accelerated commercialism of university IP is the
  best means to expedite delivery of biomedical
  products to patients
• Seeking universities with strong biomedical
  engineering programs and commitment to
  interdisciplinary research based metrics to
  understand the braintrust resident within the
  universities
• Funded projects at the selected universities will
  include medical devices, pharmaceuticals and
  biotechnology
• The intellectual property and revenues remain
  with the University and the researcher who
  developed the concept

Alfred E. Mann Foundation for Biomedical
Engineering
5
Alfred E. Mann Foundation for Biomedical
Engineering (2000) Non-profit endowment entity
responsible for the establishment and oversight
of the Alfred E. Mann Institutes for Biomedical
Development.
Alfred E. Mann Foundation for Biomedical
Engineering
6
An Alfred Mann Institute Defined
A university product development Institute to
advance discoveries in medical
devices, pharmaceuticals and biologics for later
stage private industry transfers. Ultimate
goal to ensure the commercialization of ideas
that improve human health.

• Objective is to create significantly enhanced
  value for inventors and their respective
  universities
• After value enhancing development, AMI manages
  licensing, sale, spinout negotiating higher rates
• Designed to function in perpetuity under the
  university umbrella
• Revenue remains resident at the university

Alfred E. Mann Foundation for Biomedical
Engineering
7
Enhancement of Royalty as a Function of
Commercialization Stage
Alfred E. Mann Foundation for Biomedical
Engineering
8
Year 5 50M Revenue

• Review of 200 business plans per year
• Consistent projected revenue
• Year 5 50 Million
• Need objective rather than subject measurement
  tools
• Scientific researchers transition into Smoke and
  Mirror Artists when discussing the projected
  market for their technology

Alfred E. Mann Foundation for Biomedical
Engineering
9
Market Drivers for Commercial Success (1 4)
Alfred E. Mann Foundation for Biomedical
Engineering
10
Market Drivers for Commercial Success (5 8)
Alfred E. Mann Foundation for Biomedical
Engineering
11
Market Drivers for Commercial Success (9 12)
Alfred E. Mann Foundation for Biomedical
Engineering
12
Market Opportunity
Airway Management

• Incidence Number of new cases annually
• Prevalence Population currently affected
• Refractory patients Patients not effectively
  treated with current therapy

Alfred E. Mann Foundation for Biomedical
Engineering
13
Segment Your Market

• Segment the market and current competitors into
  segments
• Understand the size of each segment and
  indications for use in each segment
• Determine in which segment the technology that
  you are developing will be used
• Analyze your competitors so you know them better
  than they know themselves

Alternative Wound Healing Market

• Surgical Sealants can be categorized as follows
• Fibrin sealants
• Collagen-based sealants
• Synthetic polymer-based sealants
• Protein-based tissue sealants

• Topical Hemostats can be categorized as follows
• Collagen-based
• Oxidized regenerated cellulose-based
• Gelatin-based
• Thrombin-based
• Combination

• Currently available topical tissue adhesives are
  based of the following formulations
• Butyl cyanoacrylates
• Octyl cyanoacrylates

• Adhesion prevention products may be categorized
  as follows
• Film-like barriers
• Liquid barriers
• Gel barriers

Alfred E. Mann Foundation for Biomedical
Engineering
14
Define Current Clinical Limitations

• Identify the clinical limitations within each
  segment
• Biggest weakness of engineers is unwillingness to
  have an objective view of their baby
• Develop test methods to confirm the performance
  of your technology against the known limitations
  of the current competitors

Alfred E. Mann Foundation for Biomedical
Engineering
15
Competitive Landscape
Alfred E. Mann Foundation for Biomedical
Engineering
16
Thank You

• Nancy Patterson
• Vice President
• Alfred E. Mann Foundation for Biomedical
  Engineering
• 25134 Rye Canyon Loop
• Valencia, CA 91202
• Nancy.patterson_at_mannfbe.org

Alfred E. Mann Foundation for Biomedical
Engineering