Title: The Art of Partnering: Early Stage Deals
1The Art of PartneringEarly Stage Deals
- Robert Blum, Ken Clark, Tom Kassberg
- Linda Pullan,
- Wednesday, Sept 3, 2003
2Mission
- BioE2E brings together an active community of
life-science entrepreneurs by creating a lively
and useful forum for the exchange of practical
real-world entrepreneurial experiences. - Our programs foster education, collaboration,
idea exchange, networking, and professional
development among community members. - BioE2E is affiliated with the MIT Club of
Northern California Entrepreneurship Program
(http//www.mitcnc.org/www/Entrepreneurship.htm)
3BioE2E Panel Events
- First Wednesday of each month
- 7pm wine food, 730pm workshop845pm
networking - Wilson Sonsini Goodrich Rosati (here)
- Cost, 20 cash or check, at the door (dont
forget) - Check e-mail, get on the list _at_ bioe2e.org
4Events
- October 1 - Valuations
- November 5 Corporate Venture Groups
- Mid-November Pitching to Investors (special
session with new venue)
5Todays speakers
- Robert Blum
- SVP of Corporate Development Finance, CFO,
Cytokinetics - Director of Marketing and Director of Business
Development, COR Therapeutics - MBA at Harvard Business School
- Cytokinetics/GSK Deal (2001)
- Ken Clark
- Managing Partner, Technology Transactions Group,
Wilson Sonsini Goodrich Rosati - Negotiated over 50 strategic transactions
- JD at University of Texas
6Todays speakers (2)
- Tom Kassberg
- VP, Corporate and Business Development, Plexxikon
- Senior Director of Corporate Licensing, Pharmacia
- 5 years at Sugen 8 years at Bristol-Myers Squibb
- MBA at Northwestern University
- Plexxikon/Genentech Deal (2003)
- Linda Pullan, PhD
- Director of Licensing, Amgen
- Leads oncology product and technology licensing
group at Amgen - 20 years of experience including positions at
Monsanto/Searle, Zeneca Pharmaceuticals, and
Amgen - PhD University of California
7Case StudyTheraKool Pharmaceuticals
Proprietary program uses Kool technology to
generate validated novel targets and small
molecule leads TheraKool has three programs in
(1) Cancer most advanced program with a
promising lead compound inhibiting well-validated
target supported by full animal efficacy, safety
and pK data (lt6 months to IND) (2) Inflammation
series of small molecule hits for novel,
internally validated, targets with preliminary in
vitro and animal model efficacy data further
chemistry lead optimization as well as more pK
and safety data required (lt18 months to IND)
(3) Neural Degeneration novel targets for
Alzheimers with no lead compounds yet. However,
chemistry and biological assays are in place for
high-throughput screens (unknown time to IND)
8Discussion Agenda
BD Strategy
The Pitch
Negotiation
Alliance Mgmt
- How to come up with a compelling package for
partnering?
- How to get to a term sheet?
- How to make this deal work?
9Strategy How does TheraKool come up with a
compelling package?
- In the context of the companys overall business
strategy - Which programs/assets are most attractive for
partnering? - How to prioritize?
- How best to package assets/technologies?
- How to identify the best partners to approach?
- How to identify the right scientific/clinical
champions within potential partner organizations? - Should one draft a preliminary master term sheet?
10The Pitch How can TheraKool get to a term
sheet?
- Understanding the minds of big pharma/big biotech
- Navigating the decision-making process
- Dealing with the timelines
- What to do when you dont hear anything for a
while? - Pros and Cons of short-circuiting your point of
contact - Common mistakes committed during
- First contact
- First meeting
- Follow-up
- Potential recourse after a rejection
- When your asset/technology is declared too
early OR - Not a fit with company strategy
- When partner is under reorganization
11Negotiation What to ask for and how to ask for
it?
- Who should be first to draft a term sheet?
- When to send a term sheet?
- To aim high, low, or in between?
- Prioritizing terms of deal
- Deal types which ones work best for early stage
assets - Co-development
- Out-license
- Tech transfer
- Term sheet structuring
- Financial
- Non-financial
- IP
- Termination clauses
- Other
12Alliance Management How to make the deal work?
- How to best execute and maximize benefit?
- Managing expectations
- Handling conflicts
- Common pitfalls
13Questions?
14Closing Remarks
15Thank you Good luck!Next Event Oct 1 -
Valuations