CCAT Government Spin Out

1
CCAT Government Spin Out

• August 2004

2
Briefing Objectives

• Describe CCAT Model for Spin Out
  Commercialization/transfer of Government
  Developed Technologies
• Identify Areas of Mutual CCAT/HTDV Interest and
  Potential Collaboration

3
Government Spin Out is a Critical Function of CCAT

• CCAT seeks to support commercialization of
  government developed technologies so that
  products derived from these technologies can be
  made available to the DoD and commercial markets
• Maximizes return on RD investment to DoD
• Stimulates economic development in private sector
• Traditionally, commercialization of government
  developed (especially DoD) technologies has not
  been fully effective
• Usually a motivated technology developer or
  laboratory ORTA (Office of Research and
  Technology Applications) has been responsible for
  moving technologies to market
• In general, resources extremely limited to
  support commercialization activities
• CCAT has developed several process to facilitate
  commercialization

4
CCAT Government Technology Spin Out Process
Phase I Transition of Technology to Commercial
Company

• Market Validation Study
• Key Markets ID
• Key Licenses ID for Each Market

Identification of Potential License Partner(s)
Government Technology Search and Support
Market Analysis Performed with Potential Licensee
CRADA License Agreement
Phase II Transition of Technology to Commercial
Market Place
Standard CCAT Processes
DoD Market
Assessment of next stepsperhaps more Market
Studies or ???
Product Development
Mentoring Support
Launch Support
Business Plans
Commercial Market
CCAT support throughout Phase I and II
5
Government Technologies Search and Support

• Approaches for identifying government
  technologies
• Solicitations
• Government solicitation open continuously
• Evaluations conducted frequently (approx. every
  90 days)
• Partnership with TechLink
• TechLink in collaboration with CCAT identify
  opportunities to facilitate licensing and/or
  promote successful commercialization
• (e.g., NIDBR and Indian Head)
• Identify industry needs match with government
  sources of technology
• (e.g., Halliburton)
• Direct interaction with government technologists
  and ORTAs
• Activities to stimulate interest in technology
  transfer
• Outreach to government laboratories
• Conduct targeted site visits to government
  laboratories
• Networking with government tech transfer
  personnel
• Utilize Federal Laboratory Consortium (FLC)
• (e.g., CCAT will participate in FLC Mid-Continent
  and Far West Regional meeting next month)

6
Market Validation Study Identify Potential
Licensees

• Identify viable commercial partner
• Identify key markets
• Identify potential licensees
• Resources used to identify partner
• Technologists
• San Diego State University Entrepreneurial
  Management Center (EMC)
• TechLink
• Business network
• Have expanded program to work with government
  technologist and companies across the country

7
Market Analysis with Licensee

• EMC performs analysis for specific markets
  discovered
• Outside expert consultants used where possible
• SSC SD funds scientist labor and travel to work
  with licensee
• Market analysis provides independent information
  to help company with decision to proceed with
  licensing of technology

8
CRADA and License Agreement

• CCAT provides support for negotiation of CRDA
  and/or license agreement
• Set up meetings with all parties to facilitate
  answering potential company concerns, questions
  and issues
• Provide labor for technologists to work with key
  players
• When possible use standard ONR CRADA
• When standard CRDA not sufficient assist with
  negotiation of non-standard CRDA
• Tailor license is to individual licensees
• Conduct valuation and royalty-returns analysis
• Provide data to licensing organization to assist
  with royalty negotiations

9
Collaboration with TechLink

• SSC provides technical evaluations of IP in areas
  where TechLink lacks expertise (e.g. antennas)
• TechLink identifies potential licensee for Govt
  spin out clients (e.g., MEMS)
• TechLink identifies opportunities for CCAT
  commercialization support (e.g., Naval Institute
  for Dental and Biomedical Research)
• Develop streamlined application process for
  TechLink/CCAT collaborations
• Prospective client applies under open govt
  solicitation and is evaluated by spin out
  committee with recommendations to CCAT Board

10
CCAT/HTDV SPIN Out Partnership Could Include

• HTDV identify commercial focus areas /
  requirements / needs key to economic development
  in Hawaii
• HTDV provide CCAT list of priorities
• CCAT Identify government technologies that match
  HTDV requirements/needs
• CCAT targets HTDV needs as part of CCAT
  government outreach effort
• CCAT works with TechLink to identify relevant
  technologies
• CCAT collaborate with HTDV to facilitate
  licensing of government technology to Hawaiian
  companies
• CCAT collaborates with HTDV to support technology
  evaluation, test and validation

11
CCAT Success StorySSC San Diego
-Micro-Electro-Mechanical Systems (MEMS)
Ultra-Sensitive Accelerometer

• How it Works
• The accelerometer is based upon the integration
  of a Fabry-Perot interferometer and a photodiode
  on a semiconducting substrate.
• Perturbing force (change in acceleration) results
  in a change in photo-generated current at the
  photodiode related to displacement of mirrors

• CCAT Support
• CCAT awards Market Study and Government
  Commercialization Support
• CCAT (with TechLink) identifies commercial
  interest for applications in the oil services
  industry
• TechLink (with CCAT) identifies 6 other companies
  with interest in licensing technology ( licensing
  negotiations in progress) Companies include
  Systron-BEI Donner, Honeywell Aerospace, GE
  Measurement Sensing Technologies, Goodrich
  Corp., Aerotech, Inc. and Endevco
• CCAT facilitated CRDA with Halliburton Energy
  Services in final approval process. CRDA
  includes phased development of Optical MEMS-based
  Sensor Interface with total potential funds in
  to SSC San Diego of up to 740K

TechLink is a federally support program that
links companies with Federal Labs for technology
transfer
12
CCAT Success StoryNaval Medical Center San
Diego - Hearing Pill

• How it Works
• Noise causes release of toxins known as
  free-radicals (Fig. A)
• The inner ears antioxidant defenses are
  overwhelmed (Fig. B)
• Hearing Pill (N-acetylcysteine (NAC)) removes
  toxic free-radicals and prevents the events
  leading to cell death and permanent hearing loss
  (Fig C)

• CCAT(San Bernardino) Support
• American BioHealth Group (ABHG) licenses
  technology from Naval Medical Center San Diego
  (TechLink facilitated)
• CSUSB OTTC funds ABHG to conduct two double-blind
  Phase I clinical studies, in cooperation with
  Marine Corps Recruiting Depot. (Preliminary
  results very promising)
• OTTC approves funding of Phase II clinical
  studies to support ongoing Rapid Employment of
  Acetylcysteine Treatment for Otologic Recovery
  (REACTOR)
• OTTC initiates partnering discussions with Inland
  Empire pharmaceutical firm for manufacturing
• ABHG shipped product to chief Army
  otolaryngologist in Iraq (Dr. Eric McDonald) for
  treating hearing loss in troops

13
CCAT Work in ProgressSSC San Diego - A Method
for Evaluating Water and Contaminant Migration of
the Groundwater-Surface Water Interface

• How it Works
• Trident probe (A), combined conductivity sensor,
  porewater sampler temperature sensor probe is
  used to screen sites for areas where groundwater
  (freshwater) discharges to a saline bay or
  estuary.
• UltraSeep meter (B), makes direct measurements of
  flux and contaminant concentration at a
  particular location.
• Data produced are time series, over tidal cycles,
  of groundwater flow, contaminant concentration,
  and associated sensor data.
• Allows accurate determination of the extent of
  groundwater contaminant flux into a bay or
  estuary.

A
B

• CCAT Support (Joint San Diego/San Bernardino)
• Market Study completed
• CCAT supports submission of additional government
  patent disclosures to strengthen IP position
• Ocean Sciences Group (Carlsbad, CA) identified as
  potential licensee
• Licensing negotiations currently underway with
  OSG

14
CCAT Work in ProgressSSC San Diego - Detection
of Subsurface Tunnels and Potable Groundwater
Using a Direct Push Soil Video Imaging System

• How it Works
• The direct push video imaging system consists of
  a miniature CCD color camera and illumination
  system incorporated into a probe equipped with a
  sapphire window that can be pushed directly into
  the soil to depths of 150 feet.
• System provides a real-time method for direct
  visual characterization of subsurface soil
  properties.

• CCAT Support (Joint San Diego/San Bernardino)
• Market Study completed
• Market Study identified licensing candidate (AMS
  American Falls, ID)
• Negotiations with AMS in progress
• Effort launched to strengthen IP position
• Strategy developed to increase probe push rate in
  order to enhance system operational capability
• Effort will lead to additional IP, and a means to
  discriminate product from unlicensed version
  already on market (effort supported by Govt.
  funded CCAT support)

15
CCAT Work in ProgressNaval Institute of Dental
and Biomedical Research (NIDBR)- Non-invasive
Oral Fluid Test to Assess the Immune Response of
Anthrax-VaccinatedIndividuals

• How it Works
• Anthrax immunization requires 6 injections over
  18-month time period
• Evaluation of effectiveness critical current
  methods are slow and labor intensive
• Navy developed technique measures protective
  antibodies in oral or serum fluids

Sample is added to well and flow is top to
bottom Positive Reaction Stripes in both Test
and Control Position Negative Reaction Stripe
only in Control position

• CCAT Support
• TechLink helped license technology to commercial
  company commercialization stalled because
  methodology needed to be optimized for commercial
  oral sampling system
• CCAT in collaboration with TechLink, NIDBR and
  the licensee (Bamburgh Marrsh LLC (BAMA))
  developed strategy to resolve barriers to
  successful commercialization.
• NIDBR has requested CCAT support to provide BAMA
  with serum and oral fluid samples and to provide
  laboratory validation of test results to
  facilitate BAMA in their efforts to optimize the
  commercial salivary immunodiagnostics system

16
CCAT Work in ProgressNaval Surface Warfare
Center - Latching MEMS Shock Sensor

• How it Works
• The Micro-Electromechanical Systems shock sensor
  is a non-powered mechanical device that closes an
  electrical switch when subjected to excessive
  shock.
• A mass moves and latches if the applied
  acceleration is above the designed threshold.
• If the acceleration is below the desired
  threshold, then the mass simply returns to its
  original position.

• CCAT Support
• The MEMS shock sensor (patent 6,737,979) was
  originally developed in 1996 as a fuse component
  in a torpedo application under funding by DARPA
  and ONR. Operated in range of 360 and 720 g.
• A commercial entity has been identified that is
  interested in licensing the MEMS shock sensor for
  use in Radio Frequency (RF) inventory devices or
  tags pending the fabrication and packaging of
  suitable prototypes.
• Govt. lab is requesting support to design and
  fabricate prototype devices that operate in the
  range appropriate for commercial applications
  (50, 100 and 150 g).