Interdisciplinary Approaches to Medical Nanotechnology: Defining the Issues Kyle J. Salyers Managing

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Interdisciplinary Approaches to Medical
Nanotechnology Defining the Issues Kyle J.
SalyersManaging DirectorClarian Health Ventures

• Thoughts on the Commercialization Process

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• Integrative Perspective
• Public Policy/ Economic Development
• University Purdue, Rose-Hulman, IU
• Government Mayors Office, City of Indianapolis
• Not-for-profit IEDC, Indiana Technology
  Partnership/Techpoint
• Early Stage Product Development Investor
• Rose-Hulman Ventures/ Suros Surgical Systems
• Medical Technology Investor
• Clarian Health Ventures
• Medical Company Development Oversight
• Board of Directors NeoChord Celleration

Disclaimer Know nothing about Nanotechnology!
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• Corporate Review
• CHV launched August 20, 2007
• Wholly-owned subsidiary of Clarian Health
• For-profit corporation
• Created Clarian Health Ventures Fund I, LLC
• First investment made in January, 2008
• 4 Investment Professionals
• 5 Portfolio Companies

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Investment Thesis Generate a Market Rate of
Return while directly contributing to the
accomplishment of the Clarian Mission. Identify
investment opportunities that, by the very
presence of Clarian as an investor, become more
valuable.
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• Commercialization Definition
• Innovation
• Reducing an innovation to practice
• Protecting, repeating testing the practice
• Funding the application development of the
  practice
• Disseminating (selling) the practice and its
  benefits to stakeholders
• Monetizing those benefits for an investor

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• Industry Week Nanotechnology Commercialization
  Efforts Continue. As potential nanotech sales
  grow, so too does scrutiny.
• By Jill Jusko
• May 1, 2007
• The nascent nanotechnology industry is facing
  many of the same challenges experienced by any
  young technology lots of hope, lots of hype and
  lots of scrutiny. Even the appropriate definition
  for nanotechnology remains a matter of some
  debate.
• A March report on nanotechnology, published by
  Rep. Jim Saxton (R-NJ), ranking member of the
  Joint Economic Committee, U.S. Congress, speaks
  to the rapid advances in the field. "Advances in
  just the last five years have proceeded much
  faster than even the best experts had predicted.
  Looking forward, science is likely to continue
  outrunning expectations," the report states.
• The swift progress has raised calls for greater
  examination of the potential health and safety
  risks associated with nanotechnology. Indeed, a
  separate report issued in March calls lifecycle
  assessment, a cradle-to-grave look at health and
  environmental impacts, vital to safe and
  responsible nanotechnology commercialization. The
  report's authors include the Project on Emerging
  Technologies, an initiative of the Woodrow Wilson
  International Center for Scholars and The Pew
  Charitable Trusts.
• Meanwhile, research and commercialization efforts
  of this young technology continue unabated. For
  example, statistics from nanotechnology
  consulting firm Lux Research show that
• More than 50 billion in nanotechnology-enabled
  products were sold worldwide in 2006, and 12.4
  billion were invested in nanotech RD.
• Worldwide corporate spending on nanotech RD
  reached 5.3 billion in 2006, up 19 over the
  previous year. U.S. business spent the most at
  1.9 billion.
• Worldwide government spending on nanotechnology
  grew to 6.4 billion in 2006, up 10 over 2005.
  U.S. federal and state governments contributed
  the most to this figure at 1.78 billion.
• Venture capital investments flowing toward
  nanotechnology was expected to reach 650 million
  in 2006.
• As of early March the United States held
  approximately 6,800 nanotechnology-related
  patents.
• Additionally, one-quarter of nanotechnology
  executives in a recent nationwide survey say they
  expect sales of 10 million or more next year.
  Some 56 say they expect to achieve that sales
  figure in three years.

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• Metrics for Assessing the Market for
  Nanotechnology Commercialization?
• Government Funding Flows
• Corporate Investment in RD
• Intellectual Property Output
• Private Risk Capital Flows
• Market for End Products
• Constraints Public Policy Regulatory
  Environment

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• Commercialization Top 10
• It takes a continuum of funding match the
  appropriate type of funding with the
  developmental stage of the project.
• Distinguish research from development
• Pursuit of knowledge to the probability of
  application
• It take partners from all sectors and multiple
  disciplines.
• Dont forget the freedom to operate
• Investors demand a return commensurate with risk
  it is often about fit vs. good or bad.

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• Commercialization Top 10
• 6. Talk to end users early in the developmental
  process understand the implication of
  success.
• 7. Clearly distinguish a technology license vs. a
  company build strategy
• The importance of the initial innovation relative
  to commercialization success diminishes over
  time. (critical path includes other
  multi-disciplinary inputs development of the
  applied technological features become
  increasingly important)
• Be aware of the progression into new risk factors
  
• Technology Regulatory Reimbursement Market
  Management Execution Liquidity
• 10. The ultimate multi-disciplinary skill set

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• Evaluation Tools Example 1
• Technology/IP
• Product
• Market
• Management
• Deal Structure Terms
• Exit Scenarios Probabilities

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• Evaluation Tools Example 2
• Medical Technology Provider Setting

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• Evaluation Tools Example 3
• Risk Management