Careers in Biotechnology Startups

1
Careers in Biotechnology Startups

• Benjamin Doranz, PhD, MBA
• Integral Molecular, Inc.
• 215.966.6018
• bdoranz_at_integralmolecular.com
• February 1, 2006

2
Academics vs. Industry for Scientists

• Academics
• Priorities
• Manuscripts
• Funding (Grants)
• Presentations
• Patents
• Products
• Basic research
• Mechanisms, How?
• Repeat 1-3x
• Learning environment
• Transitional environment
• Question science
• Compensation Benefits

• Industry
• Priorities
• Products (Revenue)
• Funding (Grants, VC, )
• Patents
• Presentations
• Manuscripts
• Applied research
• Drugs and Technology
• Must work gt99 (QC)
• Structured environment
• Market and competition
• Question profitability
• Compensation Benefits

3
Careers in Biotechology

• Science Technicians, associates, scientists
• Research administration Technical position,
  product management, need management experience
  and/or market insight
• Clinical affairs Medically oriented, junior
  positions
• Legal Junior positions if bring legal (
  science!) background
• Business development Experience hired,
  out-licensing vs. in-licensing, Tech transfer
• Marketing Finance Common entrance for MBAs
• Venture capital Broad technical understanding,
  management experience, investing experience
• Senior management Deep technical understanding,
  Pharma or Biotech experience, Healthcare banking,
  Healthcare consulting

What are your strengths? What do you bring?
4
Resume and Job Application

• 2-3 page resume for Ph.D. applicants
• Information about your expertise and projects
• Focus on the results of your research, not just
  what youve done
• Resume format
• A single Word file with John Smith resume.doc
  as file name
• Publications Bold your name, underline the
  journal
• Brief cover letter or email introduction
• If you are applying to a distant location
  indicate if you will be visiting or moving there
• Follow-up by email in 3-4 weeks and/or 2-3 months
• One follow-up lets people know you are serious
• Percentage of hire at small companies is low
• 50 applicants, 30 qualified, 15 seriously
  reviewed, 7 interviewed by phone, 3 interviewed
  in person, 1 hired
• 50-60 of our hires through personal contacts
  (the network)
• Usually looking for very specific qualifications

Hiring is based on timing, money, qualifications,
and luck
5
Operations in a Biotech Startup

• Most of a startup is day-to-day execution
• Scientific planning, office management,
  manufacturing
• Focus on getting product to market
• Support outsourced
• Accounting, legal, business development, sales,
  marketing, technical
• People
• Be part of a team with more and different
  experience than you
• 1-2 person management team common in startups
  (and changes)
• Idea execution do not always involve the same
  people
• Figure out what core competency you bring
• Entrepreneurs deal well with stress and
  depression
• Be prepared for rejection - maintain confidence
  but accept criticism
• Entrepreneurs are not stressed about possibility
  of failing, will not get too depressed if they
  do, and will do everything and anything not to

6
Funding of a Biotech Startup

• Sources
• Friends, family, and fools
• Angel investors
• Venture capital
• Corporate partnerships
• Grants government, non-profits, SBIRs
• Debt
• Revenue upfront contracts, committed buyer
• Issues
• vs. ownership
• Cost of funding , control, restrictions
• What critical milestones does the funding help
  achieve?
• Funding vs. Revenue

Funding is not the end-goal of the company (it
just seems that way sometimes)
7
Small Business Innovation Research

• Mission of the SBIR program is to stimulate
  innovation and U.S. economy
• Open to U.S.-owned and operated for-profit
  companies with lt500 employees
• Funds the RD that leads to a product (not
  manufacturing, marketing)
• Mandatory 2.5 set-aside in 10 federal agencies
• Funding
• Phase 1 (100,000, 6 months) -gt Phase 2
  (750,000, 2 years)
• 1.5B among 5,000 grants in 2002
• Over 20 years, 15.5B among 57,921 grants to
  14,329 different companies
• SBIRs have resulted in 41,000 issued patents
  (1982-)
• Advantages no equity, not paid back
• Qualifications
• Principal Investigator (PI) needs to be qualified
  to lead research (Ph.D., MD)
• Time and effort to write
• 9 months from submission to get cash
• 10 month delay between Phase 1 and Phase 2
• Limitations in spending (no marketing, no
  patents)
• Each agency runs its program independently and
  differently (NIH vs. DOD)