1. MIT to the NYSE: The Journal from a University Technology to an M&A David Lucchino and Chris Loose, PhD Co-Founders Semprus BioSciences, Corp. The Venture Development Center at the University of Massachusetts Boston November 12, 2014 2. 2 I believe that here in this room 3. 3 is someone who will change the world through an innovative solution. 4. 4 The Semprus journey started with a 131-word email. 5. 5 6. 6 Unknown From: Christopher R. Loose (crloose@MIT.EDU) Sent: Thursday, October 20, 2005 8:14pm To: lucchino@MIT.EDU Subject: 50K Opportunity with Bob Langer Mr. Lucchino, I am working with Bob Langer on the development of novel antimicrobials, with the idea of creating antimicrobials catheters and implants. We both believe our approach may have advantages over existing antimicrobials products. I presented him a summary of our recent data and he suggested I contact you as a potential partner for the MIT 1K competition this Fall and the 50K competition in the Spring. Would you have any interest in exploring this opportunity? If so, I would be happy to meet early next week to go over some of our thoughts and show you what we have accomplished. The deadline for the 1K is Nov 14th, so we would need to start moving quickly. Information is available at 50K.mit.edu. I look forward to hearing from you. Sincerely, Chris Loose 7. 7 Three Steps to Validating and Commercializing our Idea 8. Understood problem: 100k deaths, $30B cost Existing, short-term technologies validate business model Clear opportunity for long-term solution 510(k) catheter with large market and fast development path 2006 Sold for $80M to Teleflex (NYSE: TFX) $29M in VC financing $5M US Army and DoD Regulatory OK for first product Nylus PICC Built a team of 38 FTE 2012 Novel antimicrobial technology from Langer Lab Identified medical device surfaces as target market Generated proof-of- concept data Obtained initial IP 2003-2006 9. Five Steps to Company Formation: 1. Product Company 2. Platform Technology 3. Seminal paper in top journal (Science, Nature) 4. Seminal (ideally blocking) patent(s) 5. In vivo proof of principle Bob Langers Five Rules 10. Beachhead - PICC R. S. Smith et al., Sci Transl Med 2012;4:153ra132 $400M market device, ~40% failure rate during use 11. R. S. Smith et al., Sci Transl Med 2012;4:153ra132 Platform Performance Reduction in Platelet adhesion Reduction in Thrombus accumulation 98.9% 100% Reduced Thrombosis after 60 Days in Industry Standard Test Reduced Infection in Rabbit Model 12. Confirm the unmet need- Dr. Dennis Maki Worlds expert on antimicrobial catheters Who has been there/done that - Greg Haas Led R&D at antimicrobial catheter company How to make it - Dr. Art Coury Industrial Biomaterials Guru Selling in this space - Dave McClellan Former CEO Navilyst, Group President at Boston Scientific Corp. Assembling Critical Advisors 13. $2M Seed Round $1M from Harvard Business School professors and private investors and $1M from venture capital $8M Series A A syndicate of two (2) venture capital firms $18M Series B A syndicate of four (4) venture capital firms Non-Dilutive Funding Over $9M raised US Department of Defense, National Science Foundation, National Institutes of Health, Congressional Appropriation and Department of Energy Raising Money 14. Timing is everything Committed team to execute When ready to accelerate value creation Confidence in intellectual property Who to ask? Professional network those who can add value Be cautious with friends and family Initial funding; SBIR, other non-dilutive sources VCs can be your partners, at the right time When to Raise Money 15. Summing It up Entrepreneurial Competitions A good spring training Building a team Getting people to work with uncertainty The dynamic path to achieving goals Keep thinking BIG! 16. 16 Rules of the Road 17. 17 We live in a world with limited time and limited resources. 18. 18 Know what your technology can do and what it cant. 19. 19 20. 20 We stand apart by standing together. 21. 21 A big problem and a small problem typically take the same amount of effort to solve. 22. 22 You are required to fly the plane as you are building it. 23. 23 The only thing we can guarantee about entrepreneurship is change. Adapt or die! 24. 24 This journey can not only be about making money. 25. 25 And, our biggest Rule of the Road 26. 26 Nothing Comes Without Risk. 27. 27 Thank You david.lucchino@gmail.com crloose@gmail.com 28. I worry about CVC infections every day our medical center would be very interested in a Semprus clinical study. - John Mullen, MD, Beth Israel Deaconess Medical Center The ability to control hospital based infections would add tens of millions of dollars straight to a medical centers bottom line. - John Paul, former CFO, University of Pittsburgh Medical Center Input from All Parties Needed for Adoption Infections reporting enhances the reputation and credibility of all medical centers, two increasingly critical aspects of our character. - Paul Levy, CEO, Beth Israel Deaconess Medical Center