Careers in Biotechnology Startups

1. Careers in Biotechnology Startups Benjamin Doranz, PhD, MBA Integral Molecular, Inc. 215.966.6018 bdoranz@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

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

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 you�ve 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 let�s 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

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

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 <500 employees Funds the R&D that leads to a product (not manufacturing, marketing) Mandatory 2.5% set-aside in 10 federal agencies Funding: Phase 1 ($100,000, 6 months) -> 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)