Formal Incubator Formal Incubator PartnershipPartnership

Industry-Academic Medical CenterIndustry-Academic Medical Center

Pierre TheodorePierre TheodoreDivision of Cardiothoracic SurgeryDivision of Cardiothoracic Surgery

Van Auken Endowed Chair in Thoracic Oncology UCSF Van Auken Endowed Chair in Thoracic Oncology UCSF Medical CenterMedical Center

Device Development Life CycleDevice Development Life CycleInfluencing Factors

Project Management/NIH Budget/Faculty Hires

Culture of Innovation; Value to Faculty Advancement; Faculty Support Market Conditions; Consumer

Demand;

Organizational Counterparts

“The Lab”Consortia for early product development; OTM

Venture Capital Corporate Acquisition (The Value Add? Or Price Inflation?)

Elements For InnovationElements For Innovation (Norbert Weiner)(Norbert Weiner)

A creative process / environment A creative process / environment availability of proper materials and availability of proper materials and techniques for the validation and execution techniques for the validation and execution of the idea. of the idea. communication between the “philosopher” communication between the “philosopher” and the “artisan”. and the “artisan”. Creating economic value Creating economic value

“No Margin: No Mission”Source: UCSF Year End Financial Report: 2009

R.

O.

I.

Invention, Innovation, Entrepreneurship in Academic Medical CentersMehmet Toner, PhD and Ronald G. Tompkins, MD, ScDSurgery. 2008 February; 143(2): 168–171.

Internal Validation

Industry PartnershipsIndustry Partnerships

Bayh–Dole Act (1980) Bayh–Dole Act (1980) – ““A License to License” : To prosecute Patents And A License to License” : To prosecute Patents And

Generate Profit from the Technologies Generate Profit from the Technologies – Royalty SharingRoyalty Sharing

Bidirectional Relationships: Exchange Ideas, Bidirectional Relationships: Exchange Ideas, Materials, and ExpertiseMaterials, and Expertise

““Structured InnovationStructured Innovation” Boosts Performance: ” Boosts Performance: Facilitating the Facilitating the Entrepreneurially InclinedEntrepreneurially Inclined

Hamilton Moses, III, M.D., Eugene Braunwald, M.D., Joseph B. Martin, M.D., Ph.D., and Samuel O. N Engl J Med 2000; 342:1516-1518 Thier, M.D. N Engl J Med 2002; 347:1371-1375

Stakeholders and Incentive Stakeholders and Incentive AlignmentAlignment

Stakeholder motivation (Industry)Stakeholder motivation (Industry)– IP AcquisitionIP Acquisition– Access to potential new hiresAccess to potential new hires– Access to Novel Ideals and ExpertiseAccess to Novel Ideals and Expertise– Market Dominance – “Cover Bases”Market Dominance – “Cover Bases”

Stakeholder motivation (Academic)Stakeholder motivation (Academic)– MissionMission

FacultyFaculty– Professional, Personal, Financial AdvancementProfessional, Personal, Financial Advancement

GovernmentGovernment– Economic DevelopmentEconomic Development

Models of PartnershipModels of Partnership

““Master Agreement” Sponsored ResearchMaster Agreement” Sponsored Research– Scope/IP/Disclosure/Information ExchangeScope/IP/Disclosure/Information Exchange– IRS StatusIRS Status

Company Sponsored Research ConsortiumCompany Sponsored Research Consortium– Unclear Path to CommercializationUnclear Path to Commercialization

Consulting AgreementsConsulting Agreements

Licensing AgreementsLicensing Agreements

Joint Development and CommercializationJoint Development and Commercialization– University as Equity StakeholderUniversity as Equity Stakeholder

Candidate Corporate PartnerCandidate Corporate Partner

Scope of Product Design in alignment with Scope of Product Design in alignment with University Research ProgramsUniversity Research Programs

Market Capitalization sufficient to support Market Capitalization sufficient to support outsourced Research and Development outsourced Research and Development (Value addition to in-house R and D)(Value addition to in-house R and D)

California Based (or subsidiary in CA)California Based (or subsidiary in CA)

CandidatesCandidates

MedtronicMedtronic

Boston ScientificBoston Scientific

CovidienCovidien

St. Jude MedicalSt. Jude Medical

Edwards Life SciencesEdwards Life Sciences

Terms?Terms?

InvestmentInvestment

IP Provisions (Rights of Refusal / IP Provisions (Rights of Refusal / Ownership)Ownership)

Information Exchange / MeetingsInformation Exchange / Meetings

Publishing AgreementsPublishing Agreements

““Tranches” ; Escape ClausesTranches” ; Escape Clauses

Metrics for successMetrics for success

The ProcessThe Process

Gauge InterestGauge Interest– PDC; IR/Surgery/Anesthesia/Ortho/SpinePDC; IR/Surgery/Anesthesia/Ortho/Spine– Office of the ChancellorOffice of the Chancellor

Chancellor Desmond-HellmannChancellor Desmond-HellmannEVCP BluestoneEVCP Bluestone

Seek early Interest From Candidate FirmSeek early Interest From Candidate FirmThe Beauty ContestThe Beauty ContestArms Length Term Deal Construction by Arms Length Term Deal Construction by University AttorneysUniversity Attorneys