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The ‘Leverage’ Start-Up Model

The 'Leverage' Start-Up Model

Entrepreneurial professors, recent graduates, or students in the life sciences who would like to translate their research into a biotech start-up have the potential to de-risk nascent technology and provide the foundation for a company by using a capital-efficient, non-dilutive operating model we term the “leverage” start-up. This model was developed in response to an economic climate in which early-stage investment capital for biotech is scarce and prohibitively expensive. By leverage of existing infrastructure and resources in universities and other organizations, and by judicious use of non-dilutive financing, an entrepreneur with a laptop and access to some lab space can  … Read more

RIPCO, FIPCO, NRDO, FIPNET, VIPCO

RIPCO, FIPCO, NRDO, FIPNET, VIPCO

The above image summarizes some of the common business models in the biotech sector – showing which parts of the value chain the firms participate in and discussing very briefly the usual types of transaction mechanisms they use. Using the lingo of my previous posts (here, here and here), we are looking at the “when” and “how” of interacting with the value chain in these typical business models. With limited financial resources, the vast majority of biotech firms start out life as RIPCOs – research intensive (or royalty income) pharmaceutical companies. They focus on the earlier stages in the value  … Read more

Chinese Bureaucracy

Chinese Bureaucracy

Nine months into my enterprise I remain optimistic about China’s future in the global pharmaceutical community, which has lead some of my friends to think I am naïve or just plain mad. The country says they have the resources, the will and the vision to build this nation into a world-class leader in manufacturing, innovation and citizenship. As a reminder, I am part of a founding team that is in a cooperative joint venture with the China Medical City (CMC) government to build and manage a globally compliant biologics manufacturing facility in Taizhou, Jiangsu, China. (Read more about that here)  … Read more

A portrait of a Brasilian bioentrepreneur

A portrait of a Brasilian bioentrepreneur

Brazil is the fifth largest country in the world, after Russia, Canada, China and US. With more than 190 million people, the country is divided into 26 federal states and one federal district in which the capital, Brasilia, is located. Today it is the biggest economy in Latin America and the eighth-largest economy in the world. In accordance with a Goldman Sachs study, Brasil will become the world’s fourth-biggest economy by 2050. It has also the most natural diversity in the planet, is self-sustainable in oil and one of the largest exporters of commodities in the world. As every strong  … Read more

Demystifying China: Start up

Demystifying China: Start up

People read a lot about China these days. There is the booming economy, maintaining over 8% GDP growth in the midst of a slow global recovery. The Chinese pharmaceutical market is projected to climb into the world’s top three in 2011. The healthcare reform plan is supposed to inject US$128 billion into the healthcare system between 2009 and 2011, and has already helped double pharmaceutical sales one and a half years into the plan. We also hear trendy phrases such as the globalization of drug development, the new paradigm of drug development, FIPnet (Fully Integrated Pharmaceutical Network), superpharma, virtual biotech…and  … Read more

Who Cares About the IPO Market?

Who Cares About the IPO Market?

No doubt you’ve heard that the IPO market for biotech companies has been especially weak the last two years. Few companies went public in 2008 and 2009, and those that did raised less money than expected, at lower prices, and with significant insider participation or other sweeteners. But the IPO environment seems to be thawing, with more companies expected to go public in the coming months, which leads to the question: Is this really such a good thing? Holding aside the numerous macroeconomic reasons in support of a favorable IPO environment, IPOs in the biotech industry have particularly important place  … Read more