Corporate Investments in Life Science Companies
Our Monday, February 20 Life Science Entrepreneurs' Forum was on the theme of Corporate Investments in Life Science Companies
Because of the government and other regulatory standards for life science products and services, whether they are pharmaceutical, bio-devices, bio-nano, etc., because of the experience, education and other personal characteristics of the entrepreneurs and executives within the industry, and other factors, the pace, culture, mind-set and expectations for decision-makers in the life science industry are much different than those in the high-tech sector.
However, with the convergence of bio, nano and information technologies, many high-tech corporations are branching into more life science solutions and investing in R&D efforts in the life science space. In addition, many larger life science and high tech are adopting an 'R&D-outsourced model', which helps them partner with VCs and early stage companies in support of their corporate R&D efforts. This month's meeting will feature speakers from both the high-tech and life science industries to investigate corporate R&D strategies and their implications for today's life science entrepreneurs.
Our facilitator was Geetha Rao, and our panelists were Simon Greenwood, Ph.D., Investment Manager, GenenFUND; Senior Manager, Business Development, Genentech, Inc.; Linda Greub, Business Development, Applied Biosystems and Eran Raber, Director, New Business and Venture Investments, Agilent Technologies. Additional information about the investment strategies for Agilent, Applied Biosystems and Genentech are provided below.
Agilent Technologies
Genomics Proteomics Cell Biology Drug Discovery Drug Development Testing and Identification Information Management Ambion RNA Resources Experimental Workflows
Because of the government and other regulatory standards for life science products and services, whether they are pharmaceutical, bio-devices, bio-nano, etc., because of the experience, education and other personal characteristics of the entrepreneurs and executives within the industry, and other factors, the pace, culture, mind-set and expectations for decision-makers in the life science industry are much different than those in the high-tech sector.
However, with the convergence of bio, nano and information technologies, many high-tech corporations are branching into more life science solutions and investing in R&D efforts in the life science space. In addition, many larger life science and high tech are adopting an 'R&D-outsourced model', which helps them partner with VCs and early stage companies in support of their corporate R&D efforts. This month's meeting will feature speakers from both the high-tech and life science industries to investigate corporate R&D strategies and their implications for today's life science entrepreneurs.
Our facilitator was Geetha Rao, and our panelists were Simon Greenwood, Ph.D., Investment Manager, GenenFUND; Senior Manager, Business Development, Genentech, Inc.; Linda Greub, Business Development, Applied Biosystems and Eran Raber, Director, New Business and Venture Investments, Agilent Technologies. Additional information about the investment strategies for Agilent, Applied Biosystems and Genentech are provided below.
Agilent Technologies
- Proteomics
- Agriculture
- Nucleic Acid Analysis
- Genomics
- Pharmaceuticals - Disease Discovery - Drug Discovery - Drug Development - Drug Manufacturing/QA/QC
Applied Biosystems
Genentech
- List of current BioOncology, Immunology, and Tissue Growth and Repair Products
- List of current researcher profiles
Below are comments and advice from our panel on how entrepreneurs can partner with corporate investors:
Corporate Investors are a vital part of the funding structure for life science companies.
- They help cover the 'funding gap' between pre-clinical and later stage companies.
- They partner with both entrepreneurs and VCs.
- They invite innovative, entrepreneurial ideas which fit the strategic vision for their organization.
- They offer many opportunities for partnership.
Advice for securing partnership with corporate investor:
- From a corporation's perspective, research and development can be created organically (in house), through acquisitions, or through partnerships/collaborations. Decide whether to position your company for an acquisition or partnership/collaboration and plan accordingly.
- If you're working on a partnership, consider all types of partnership opportunities (from in-licensing to joint ventures to M&A and equity investments) and be clear what you want from the partnership and clearly communicate that.
- Understand how your company fits the overall corporate strategy and communicate that.
- Larger companies generally realize that it's easier to be innovative in smaller companies with fewer enforced processes and systems. Even if a M&A event occurs, larger companies try to preserve that entrepreneurial culture where possible as it is in their best interest.
- Corporations focus more on the best strategic investment rather than on price. (Strategy first, economics after.)
- It takes time to finalize partnership agreements so plan accordingly. (It may take an average of 9 months to close a licensing agreement for example, as there is much diligence involved.)
Focus on the latest/hottest emerging technology trends
- With the aging of the baby boomers, what opportunities will arise and how can entrepreneurs and corporations partner to address the needs of this huge market?
posted by Linda Holroyd at 3:41 PM
