From Research to Commercialization

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From Research to Commercialization
Benjamin Soffer, Manager Technology Transfer
OfficeTechnion Research Development Foundation
Ltd.
June 2008
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Technology Transfer
Technology transfer is the movement of knowledge
and discoveries to the general public.
Knowledge spillover and knowledge diffusion is a
major engine for growth in knowledge based
economies
It can occur through publications, educated
students entering the workforce, exchanges at
conferences, relationships with industry.
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The role of Technology Transfer Offices

• Intellectual Property Management

• Licensing of Technologies

• Establishing Joint Ventures Start-up
  Companies

• Collaborations Industries, Vcs,
  Government, Incubators, Other universities

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Bayh-Dole Act P.L. 96-517 Patent and Trademark
Act Amendments of 1980
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National Policy Environment
Bayh-Dole Act P.L. 96-517 Patent and Trademark
Act Amendments of 1980

• It is the policy and objective of the Congress
  to use the patent system to
• Promote the utilization of inventions arising
  from federally supported research or development.
  
• Promote the commercialization and public
  availability of inventions.
• Disclose to appropriate federal agency any
  invention created with the use of federal funds.
• Retain ownership, the university generally must
  notify the agency of its election to retain title
  within 2 years of the date of disclosure.

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National Policy Environment
Bayh-Dole Act P.L. 96-517 Patent and Trademark
Act Amendments of 1980
continuation

• Provide the U.S. government a nontransferable,
  irrevocable, paid-up, nonexclusive license
  ("confirmatory license") to use the invention.
• In granting licenses to use the invention, the
  university generally must give priority to small
  businesses.
• When granting an exclusive license, the
  university must ensure that the invention will be
  "manufactured substantially" in the United
  States.
• Revenue distribution (net revenue from
  commercialization/licencing)the university must
  share a portion of the royalties with the
  inventor(s), originating unit.

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AUTM U.S Licensing Survey (2004) Highlights
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Technology Transfer Office Staffing Levels at
U.S Universities
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Distribution of Size of Research Programs at U.S
Universities
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Total License Income Received by U.S Universities
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Invention Disclosures Received by U.S Universities
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The Process of Technology Transfer
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Technology Transfer Process
Business Development Licensing or Start Up
Research Innovation Discovery
Development Patenting marketing
Contract Management Enforcement
Evaluation
RESEARCH
REVENUES
Research Enterprise
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From the laboratory to the market-place.
Technology Transfer Office
Research projects and Centers
ThirdParties

• Pending no value
• Technology sell license/lump sum
• Spin off-equity/license
• Research grants

Research Program
Ideas for IP
Patents or Tacit Know how
TIME
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Technology Readiness Levels
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Models of Academic Approaches to Start-ups
Progressive Policies
Aid in Securing Funding
Flexible Terms
Business Development Assistance
Help Recruit Talent
Direct Investment
Business Operations Participation
Hands-in-Pockets Hands-Off Hands-On Up-to-Elbows
Form the Licensee
Operational Role
Licensing Practices
Technion chose up-to-elbows
Source MIT, AUTM, MRUN, U Michigan et al
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Structuring the Licensing Deal

• Past patent costs reimbursements
• Up front payments
• Maintenance fees (part of anti shelving
  mechanisms)
• Milestones payments / Sublicensing
• Equity versus Royalties
• Exit bonus

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Principal university and pharmaceutical company
partners associated with the top ten
biotechnology products in 2002
Nature Biotechnology  21, 618 - 624 (2003)

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Nature Biotechnology  21, 618 - 624 (2003)

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Myths
Myths vs. Reality

• Royalties are a significant source of revenue for
  the University
• Expect a quick return of technology transfer
  investment
• Companies are eager to accept new technology from
  universities
• You should broadcast availability of technology
  for licensing
• The technology transfer office finds the licensee

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Myths
Myths vs. Reality
Reality

• Royalties are a significant source of revenue for
  the University
• Expect a quick return of technology transfer
  investment
• Companies are eager to accept new technology from
  universities
• You should broadcast availability of technology
  for licensing
• The technology transfer office finds the licensee

• In most cases, licensing revenue is relatively
  small.
• Don't expect product royalties for 8 -10 years
• Most companies want quick time-to-market
• Publishing lists of available technology is
  limited in it's effect
• The inventor is an important source for leads

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T³ - Technion Technology Transfer
t3.technion. ac.il
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T³s main missions

• Foster commercial investment in development of
  inventions and discoveries
• Generate goodwill faculty, sponsors, licensees
• Financial benefit to the general public, the
  Technion and the inventors
• Increase further the level of openness of the
  Technion and of Technion's researchers to
  commercialization
• Build a community of entrepreneurs, business
  people, industrialists and investors

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T³ - Technion Technology Transfer
Patent Disclosure Patent Registration Patent
Maintenance
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Technology Transfer - Parameters for Success

• Increased number of investigators and departments
  disclosing per year.
• Increased number of established companies per
  year.
• Increased number of cooperation and licensing to
  global companies.
• Increased recognition and citation of the
  Technions effectiveness in moving inventions to
  products.
• Increased revenues from Licenses / Exits.
• Increased rate of return on funds invested in
  technology transfer.

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New Inventions (2007)

• 92 new invention disclosures
• 85 filed
• 4 in examination
• 2 released
• 1 abandoned

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Technion Patent Portfolio (31.12.2007)
289 Patents files to be commercialized
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Technion Entrepreneur in Residence Program

An Alternative approach to commercialization
Dynamic but UniformProcess
Founders Instead of Finders
Market Looking for Technology
EIR Program
Community Building
Global Local Market
IP Generation
Licensing and New Company Formation
Multi Disciplinary
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Company Establishment No. of Companies
(2003-2007)
Including TRDF/DIMOTECH/ TEIC Companies based
on Technion IP but excluding equity holdings
in companies not established by TRDF
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Case Study
MAZOR Surgical Technologies, LTD
A leading provider of highly accurate, minimally
invasive, easy-to-use, miniature surgical
assistance systems for a wide range of
procedures. Established in 2001 Developer of
the SpineAssist for spinal procedures FDA
approved and clinically tested, the SpineAssist
is a highly accurate solution that enables spinal
procedures to be performed with maximum precision
and minimum intervention.
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Case Study
continuation
MAZOR Surgical Technologies, LTD
Mazor Surgical held an IPO on TASE The
company recently raised 10 Million at a
valuation of 30 Million. Since its
establishment at the Technion Incubator in 2000,
the company raised 30 Million from private
public investors. TRDF - Holdings on
establishment 77.8 Researchers holdings
included
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Success Stories - Examples
Collateral Therapeutics
Sanborn Research LLC
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Case Study
Azilect/ Agilect (Rasagiline) An
anti-Parkinson's disease drug

• Developed by Teva Pharmaceuticals in cooperation
  with  Prof. Moussa Youdim and Prof. John
  Feinberg
• Parkinson disease is a progressive condition
  that involves a gradual loss of nerve cell
  function in the brain. The nerve cells that are
  specifically affected are those that control body
  movement.
• 4 million people worldwide suffer from
  Parkinson's disease
• Affecting approximately 1 of the population over
  the age of 65
• Agilect/Azilect- Azilect was launched in
  Israel in March 2005
• 4 royalties of net sales

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Technion Funds
not including the TTT fund
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Technion Webinar Innovation Series
November, 2006 PROFESSOR RON KIMMELFaculty of
Computer Sciences
December, 2005 PROFESSOR KARL SKORECKI
Bruce Rappaport Faculty Of Medicine

April, 2007MR. ARIK ARADCEO, EORD MR. AVNER
ESHED General Manager, EORD (E.E-B.Sc, MBA)
February, 2006 PROFESSOR ASSAF SCHUSTER Faculty
of Computer Sciences
April, 2006 PROFESSOR DOV DORI William Davidson
Faculty of IndustrialEngineering and Management
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July , 2006 MR. YEHIEL TAL Co-Founder CEO
Regentis Biomaterials Ltd.DR. DROR SELIKTAR
Co-Founder Department of Biomedical Engineering
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The Technion Entrepreneurial Centre and the
Technology Transfer Office

• Expand Synergies by
• Developing with MBA Students Technology Transfer
  Strategies for Inventions based on Faculty
  members disclosures
• Team Building

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www.technionseed.co.il
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• A private seed/pre-seed investor
• Investing in technology-based start-ups (diverse
  fields)
• Owned by
• The Technion Israels leading technology
  academic institute
• Battery Ventures
• Vertex
• SCPVitalife
• ProSeed
• Licensed as an incubator by the government of
  Israel

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• Active since 2003
• Located in Haifa at MATAM hi-tech park
• 7 employees
• 13 investments (Apr. 2003 - Feb. 2008)

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• We seek ideas for high-risk/high-reward
  high-tech ventures, that are
• Based on innovative, breakthrough technologies
• Appeal to very large international markets
• We invest in such ventures
• Up to 1,000,000
• Investment sources
• Direct by the VC funds that own the incubator
• Money loaned by the government to the incubator
• We grow such ventures
• For 12-24 months
• Until they prove their viability (technology,
  business, management)
• And are ready for a large follow-on financing
  round (by the VC funds)

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Portfolio 2003-2007 investments
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Portfolio 2007-2008 investments
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THANK YOU