Archive | February, 2015

Next Phase Issue 100: A Look Back at Our Top Five Articles

26 Feb

By Michael Quigley, Director of Research, LSN

mike-2In honor of the 100th edition of the Next Phase newsletter, LSN would like to share five of the most popular articles to date. These articles provide a great snapshot of what this newsletter is all about: educating entrepreneurs and investors on the early stage life-science-investment landscape and providing tactical advice to entrepreneurs on how best to present their opportunity to the life science investment community. These articles all stem from our daily dialogues with both investors and entrepreneurs from around the world; this experience allows us to act as an information portal between these two groups.

Without further ado, here are the top five articles.

  1. 11 Tips for Creating a Successful Pitch Deck

By Shaoyu Chang, Senior Research Analyst

“Coming from a scientific background, I thought I knew well enough about using slides and making presentations, whether in laboratory journal clubs or at hundred-attendee conferences. However, as I start to help fellow scientists on their fundraising campaigns, it has become apparent to me that academia and business speak very different languages.”

  1. LSN Published in Nature Bioentrepreneur: “Beyond Venture Capital”

By Dennis Ford, CEO, LSN, and Barbara Nelsen, Founder, Nelsen Biomedical

“LSN is officially announcing the release of  ‘Beyond Venture Capital’ in the January 8, 2014, edition of Nature Bioentrepreneur! This piece, appearing in the current issue of Nature, is an in-depth analysis of the new life sciences fundraising environment, detailing what caused the paradigm shift in the investor landscape, who is active, and how fundraising executives should adapt. This is a must-read piece for anyone involved in the early stage life sciences arena, and an excellent primer for newcomers to the Redefining Early Stage Investments Conference.”

  1. Formulating the Introductory Email to Potential Investors

By Michael Quigley, Director of Research

“Having personally scheduled and held several hundred interviews with life science investors over the past year, I have developed and refined a formula for getting ‘in the door’ with an introductory email. As anyone who has embarked on a fundraising campaign knows, initiating the dialogue is often the hardest part of the process. Few introductory emails ever get opened, and even fewer earn a reply at all. However, there are a few concepts and tactics that can increase your efficacy substantially when it comes to initiating a dialogue and locking in that first meeting. This article will share some insights from my personal experience that may be helpful in your email outreach.”

  1. Pharma-Licensing Deal Trends in 2014

By Lucy Parkinson, Senior Research Manager

“LSN gathers data on early stage life science companies and investors worldwide, but we also track global licensing activity and trends through the LSN Deal Platform. We analyzed 20 pharma deals that were publicly announced from January through April and spotted three trends that offer a glimpse of what the industry may expect from pharma-licensing activity in 2014.”

  1. 10 Steps to a Life Science Fundraising Campaign

By Dennis Ford, CEO

“Executing a successful fundraising campaign in the life sciences space requires organization, professionalism, determination, a great technology, and an outstanding team. LSN has worked with hundreds of companies in this capacity—companies that are at all stages of development, in regions around the world, and pursuing various types of technology. We’ve been watching as the latest process for fundraising has surfaced, and I wanted to share what we see as the ten steps.”

We hope you have enjoyed Next Phase so far and found useful information in this newsletter. We look forward to continuing to provide you with tactical advice and forward-looking information on the early stage life-science-investment landscape in the months to come.

The Southwest: New Frontier of Life Science Innovation

26 Feb

By Lucy Parkinson, Senior Research Manager, LSN

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LSN will be heading to Houston in June for our next RESI event, so we decided to take a closer look at a sample of life science companies based in seven Southwest states—the types of innovation taking place in these companies and the number of products emerging from the biotech pipelines.

We looked at companies based in Arizona, Colorado, Nevada, New Mexico, Oklahoma, Texas, and Utah. The sample was drawn from the LSN Company Platform, which partners with bioclusters around the world to gather information on early-stage life science companies.

Our sample consists of biotech companies with assets that are at least in the preclinical stage and not beyond Phase III, and medtech companies with products currently in development; neither life science service providers nor biotech companies at the discovery or lead-optimization stages were included. While most of these companies were located in Texas, the sample included companies from every one of the seven aforementioned states.

The collective pipeline of the biotech companies consists of 323 products, and we were able to track 301 by key indication area. (See Figure 1.) Cancer is by far the most common, accounting for more than one-third of the assets. Other leading areas of innovation include infectious diseases and neurology.

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Figure 1 | Source: LSN Company Platform, Data as of February 25, 2015

The medtech companies have 59 products that span a wide variety of fields. (See Figure 2.)

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Figure 2 | Source: LSN Company Platform, Data as of February 25, 2015

The LSN Company Platform also tracks the progress of the biotech products through the pipeline. (See Figure 3.)

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Figure 3 | Source: LSN Company Platform, Data as of February 25, 2015

As one would expect, the number of assets falls sharply following the preclinical stage, as both companies and their investors look for “go/no-go” signs in their animal data; a second steep drop happens following Phase II efficacy studies. What’s unusual about life science innovation in these states is the steepness of that second drop, as we can see by comparing these results to an analysis of companies across the U.S. (See Figure 4.)

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Figure 4 | Source: LSN Company Platform, Data as of February 25, 2015

The skew toward early stage assets is greater in these seven states than it is for the nation. There are 7 preclinical assets for every 1 asset that reaches Phase III, whereas for the U.S. as a whole, there are 3.3 preclinical assets for every 1 asset that reaches Phase III. The skew could be because strong companies leave for the East Coast or the West Coast or are acquired by entities based in other regions before the lead asset reaches Phase III. It could also be due to a more restricted funding environment, which may make companies more likely to close their doors after mixed results in Phase II.

In addition to biotech and medtech companies, these states are also home to a number of early stage life science investors who are open to investing in precommercial life science products. (See Figure 5.)

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Figure 5 | Source: LSN Investor Platform, Data as of February 25, 2015

While examining investor exposure in these states, we found that a substantial number of investors are interested in opportunities not only in their own backyard but also globally. A core pillar of the RESI conference is providing entrepreneurs with a broad audience of investors—local, regional, national, and international—and we look forward to providing an opportunity for this audience to meet with life science entrepreneurs in these states and beyond.

[Video] Diagnostic Investors Panel at RESI 4

26 Feb

By Nono Hu, Senior Manager, Branding & Messaging, LSN

Nono 2This week, LSN would like to share the RESI 4 Diagnostic Investor Panel recap video with you. The panel features five investors from a highly diverse group of both for-profit and nonprofit investment organizations in the diagnostics field.
Watch the video if you are interested to learn more about the types of investors currently investing in early stage diagnostics companies. The investors answer relevant questions about the diagnostics field, including: What do investors want to know about a company’s reimbursement plan? How do regulatory challenges impact funding decisions? What information should companies provide to investors initially? How do you create an elevator pitch that will make an investor want to hear more about your company?

Hot Life Science Investor Mandate 1: Corporate Venture Arm of Healthcare Consortium Seeking Device, Diagnostic and Healthcare IT Opportunities

26 Feb

The corporate venture capital arm of an integrated health care consortium based in the United States manages ~ $410 million in assets and is making the investments out of a ~$150 million dollar fund. The firm can invest as little as $5 million but tends to allocate $7-$10 million initially, and $10-$15 million over the lifetime of an investment. The firm only invests in preferred equity rounds, is comfortable leading life sciences deals, particularly in healthcare IT. The firm only invests in US-based and incorporated companies. The firm is involved in approximately 4-5 new investments each year.

The firm is currently looking for companies in healthcare IT, healthcare services, diagnostics, medical devices, and drug delivery. Companies that are able to benefit the firm’s existing healthcare members are of particular interest. The firm is indication agnostic, however, and is not interested in investing into companies working with novel compounds or therapeutics. The firm is looking for mid to later stage companies for investment.

The firm looks to invest in companies that have already received institutional funding from highly qualified investors where the investor syndicate has majority stake in the company. The firm will consider companies that are both pre and post revenue, but is primarily interested in companies with early (single digit millions) commercial traction. The firm started making investments out of its fourth fund earlier this year.

If you are interested in more information about this investor and other investors tracked by LSN, please email mandates@lifesciencenation.com

Hot Life Science Investor Mandate 2: Taiwanese PE Firm Seeking Global Biopharmaceutical, Medtech, and Diagnostic Opportunities

26 Feb

A life science dedicated PE fund of a Taiwanese company engaged in leasing, finance, and investment businesses is currently seeking new opportunities. The fund prefers to invest in early stage companies but is also interested in growth-expansion stage companies. The fund can invest up to USD 30 million or more per company.  The fund will focus on companies founded and operated in the Greater China region (60% of fund allocation). The fund is also interested in opportunities from Europe (especially in Switzerland, Germany, and the UK) as well as from the US.

The fund seeks to invest in biopharmaceuticals and medical technologies. In biopharma, the fund focuses on novel drugs, drugs with new indication/dosage form, biosimilar, and API for cancer drug. The fund looks for proprietary drug discovery or development technologies that are able to build a multi-product pipeline and products that address large unmet medical needs. For medical technologies, the firm focuses on molecular IVD test/next-generation sequencing, monitor & diagnostics system, invasive devices, cosmetics/plastic surgery, ICT medical device, and combination products with Greater China market potential. The firm looks for new and innovative technologies that can increase performance, lower cost or open up new business models.

The fund prefers to invest in early stage companies and generally acquires a minority stake in the company. However, the fund does not rule out the possibilities of acquiring a controlling stake if the strategic value exists.

If you are interested in more information about this investor and other investors tracked by LSN, please email mandates@lifesciencenation.com

Hot Life Science Investor Mandate 3: Southwest Based VC Seeking Pre-clinical Stage Life Science Opportunities throughout US

26 Feb

A venture capital firm based in the southwestern United States manages 2 funds for a combined total of $270 million in assets under management. The firm generally invests between $2-$6 million of equity capital per round and up to $10-$15 million over the life of the investment. The firm plans to invest in 2-5 companies over the next 6-9 months and will consider firms located throughout the United States.

The firm is currently looking for companies developing Medical Devices, Therapeutics, Diagnostics and Healthcare IT products. For medical devices and therapeutics the firm is open to the full spectrum of subsector and indication and will consider companies developing orphan indications. The firm is interested in seed and venture stage companies, generally looking to invest in companies with a lead asset in pre-clinical trials. Only in certain cases of reformulation and repurposing would the firm consider investment into a company with a product in clinical trials. The firm is also willing to consider companies targeting orphan indications. In the Healthcare IT space the firm has stated interest in areas of clinical sequencing and diagnostic platforms but will also consider other companies that fall into the Healthcare IT space as well with the exception of traditional EMR companies. The firm is also considering investment into mobile health companies developing consumer facing apps.

As such an early stage investor, the firm invests almost exclusively in pre-revenue companies. The firm also looks for experienced management teams and generally takes a seat on the company’s board.

If you are interested in more information about this investor and other investors tracked by LSN, please email mandates@lifesciencenation.com

Texas Medical Center to Host Redefining Early Stage Investments Conference

19 Feb

By Dennis Ford, Founder & CEO, LSN

BOSTON – February 19, 2015 – Life Science Nation (LSN) and Texas Medical Center (TMC) have partnered to bring the Redefining Early Stage Investments (RESI) Conference to Houston on June 8, 2015. The conference will take place at TMCx, the TMC’s 100,000+-square-foot, state-of-the-art accelerator space.

RESI @ TMCx will bring together fundraising CEOs and early stage investors from around the globe, providing the opportunity for dialogue and relationship building, with the goal of eventual capital allocations.

“TMC has long been known for world-class life science research and technology,” said Dr. Robert Robbins, President and CEO of TMC. “RESI @ TMCx will bring early stage global-investment capital to our accelerator space, which will hopefully streamline the commercialization of our technology assets.”

The RESI conference focuses on 10 categories of early stage investors. Through an expansive series of panels and workshops, investors explain their current investment mandates and process for identifying and qualifying candidates. The RESI Partnering Forum employs a Match.com-like sourcing platform that fundraising CEOs use to identify life science investors who fit their technology sector and stage of development.

RESI @ TMCx will feature angel syndicates, family offices and private wealth firms, corporate venture capitalists, venture philanthropy groups, foundations and endowments, big pharma and virtual pharma companies, mid-level private equity firms, government organizations, and venture capital investors.

“RESI is a very efficient venue for investors and innovators to find each other,” said Dennis Ford, CEO of Life Science Nation, the creator of the RESI conference series. “Our vision for the series is to provide, a venue for early stage investors and innovators to connect.”

RESI Boston takes place in September, followed by RESI San Francisco, which is held in concert with the JPMorgan Healthcare Conference in January. RESI @ TMCx will become the third conference in the series.

 

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About Texas Medical Center

The largest medical complex in the world, the Texas Medical Center is internationally recognized and home to many of the nation’s best hospitals, physicians, educational institutions, researchers, and the largest concentration of life-sciences experts. For the first time in its history, the Texas Medical Center has aligned the multi-institutional expertise to formulate five institutions dedicated to: Health Policy, Clinical Trials, Regenerative Medicine, Genomics, and Life Science Innovation. Together, these institutions will advance the Texas Medical Center as the global leader in human health and life sciences.

About Life Science Nation

Life Science Nation (LSN) accelerates the funding of early stage life science firms through its Match.com-like sourcing platform for private investment and enables CEOs to be more efficient in their capital-raising efforts. LSN owns and operates the Redefining Early Stage Investments (RESI) conference series.

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PR Contact:

Nono Hu
Marketing/PR Manager, Life Science Nation
(617) 580-5011
m.hu@lifesciencenation.com