K.A. Athanasiou

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K.A. Athanasiou Professor
Technology Innovation Entrepreneurship From
bench to bedside Cyprus Entrepreneurship
Competition, Nicosia, Cyprus December 17, 2003
Bioengineering, Rice University (Orthopaedics,
Oral Maxillofacial Surgery, Univ. of Texas
Houston)
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OUTLINE

• The technology transfer approach
• From academic research
• to new technology
• to commercialization
• 4 examples (OsteoBiologics, Xilas, VidaCare,
  CyTex)
• What I have learned

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Technology transfer approach
New technology
Academic research
New company
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1st example From musculoskeletal research to an
orthopaedic company OsteoBiologics, Inc.
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KNEE
Articular cartilage cannot repair itself
adequately in response to trauma or pathology
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(No Transcript)
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An ISO 9001 Company
12500 Network Blvd., San Antonio, Texas
78249Phone [phone]
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2nd example From lower extremity bioengineering
research to a diabetes company Xilas Medical, Inc.
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• Diabetes affects 10 of population of developed
  nations
• The lower extremity is an area of frequent
  devastating afflictions

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12665 Silicon Drive San Antonio, Texas
78249Phone [phone]
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3rd example From bone bioengineering research to
an emergency room medical company VidaCare, Corp.
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• Intravenous access is not available for many
  patients
• Intraosseous infusion may be an alternate access
  method in emergencies

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VidaCare Corporation 722-A Isom Road San Antonio,
Texas 78216Phone [phone]
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4th example From personal issues with high
cholesterol to a company with natural
anti-cholesterol product CyTex, Corp.
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Incidence of elevated cholesterol

• 100 million American adults have total blood
  cholesterol values of 200 mg/dL and higher
• Thus, approximately 20-40 of the population of
  the USA exhibit hyperlipidemia
• Using extrapolation, it is estimated that in
  Cyprus there are at least 150,000 people who
  could benefit from Miracle in Greece, over 2
  million people

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Why Miracle?

• Daily Miracle dosage is 1 capsule 7.5 mg of
  Monacolins
• Lovastatin dosage 20-40 mg daily
• Other ingredients (e.g., sterols) may also add to
  shown benefits

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Manufacturers-Distributors of Miracle
CyTex LTD. Ave. Digeni Akrita 79C, Nicosia,
Cyprus (Also, 2119 MacArthur, Houston, Texas,
USA) Telephone [phone] Fax
22757260 Webpage Cy-Tex.com/Miracle email
miracle_at_cy-tex.com
New Med Tec LTD. Nikodimou Mylona 9, Nicosia,
Cyprus Telephone [phone] Fax [phone] Webpage
Cy-Tex.com/Miracle email info_at_nicholsoncyprus.com
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Newsweek cover story on statins (issue 9 July
2003)

• EXCERPTS
• 12-15 mil US adults on statins another 21 mil
  should be taking them
• Statins the ultimate miracle med
• Roy Collins of Oxford University Statins are
  the new aspirin
• Possible treatment for Alzheimers disease,
  multiple sclerosis, osteoporosis and even cancer

Miracle A natural cocktail of statins against
cholesterol
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What have I learned?

• People are the most important asset but also
  biggest problems egos can destroy a company
• A protectable, proprietary position is important
  to success
• Valuation is an art the earlier the investment
  stage, the less precise
• Dont take in more capital than you need (1-2
  yrs)
• Raise less C early, meet milestones, get more
  capital later at a higher valuation

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More hard lessons

• The control issue
• Surprise! Profitability does matter
• Near zero liquidity of common stock also no
  possible dividends, board seats, etc.
• Do not go for preferred stock investors wont
  let you
• Common stock is for founders, friends family,
  angels, employees

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Consequences of the Internet crash

• Public markets no longer fund unproven business
  models
• Exit opportunities have diminished
• VC firms are spending more time managing their
  existing portfolio less investing in new
  companies
• VC firms are exiting the early-stage market for
  later-stage opportunities

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Post Internet-crash awakening

• Existing VC portfolio companies are having
  difficulty raising money
• Valuations are back to pre-1995 levels
• Methods for determining valuations are more
  normal
• The laws of finance are fairly stable investor
  psychology is not

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ELEMENTS FOR EFFECTIVE TECHNOLOGY TRANSFER

• Need to solve a significant problem
• Novel but practical ideas
• Have general idea of bench to bedside process
• Prepare convincing proof-of-concept
• No man is an island excellent team
• A man (woman, company) has to know his (her, its)
  limitations

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THE VISION

• Technology transfer does not have to be
  university-based
• Effort must rely on applied research
• Research and commercialization should go together
• In the final analysis, everything is based on the
  human factor