K.A. AthanasiouProfessor

Bioengineering, Rice University(Orthopaedics, Oral & Maxillofacial Surgery,

Univ. of Texas Houston)

Technology Innovation &

Entrepreneurship

From bench to bedside

Cyprus Entrepreneurship

Competition, Nicosia, Cyprus

December 17, 2003

• The technology transfer approach• From academic research…

• … to new technology…

• … to commercialization

• 4 examples (OsteoBiologics, Xilas, VidaCare, CyTex)

• What I have learned

OUTLINE

Technology transfer approach

Newtechnology

Newcompany

Academicresearch

1st example

From musculoskeletal research to an

orthopaedic company

OsteoBiologics, Inc.

Articular cartilage cannot repair itself

adequately in response to trauma

or pathology

KNEE

An ISO 9001 Company

12500 Network Blvd., San Antonio, Texas 78249Phone 210.690.2131

2nd example

From lower extremity bioengineering research to a diabetes company

Xilas Medical, Inc.

•Diabetes affects 10% of population of developed nations

•The lower extremity is an area of frequent & devastating afflictions

12665 Silicon DriveSan Antonio, Texas 78249

Phone 210.692.1114

3rd example

From bone bioengineering research to an emergency room

medical company

VidaCare, Corp.

•Intravenous access is not available for many patients

•Intraosseous infusion may be an alternate access method in emergencies

VidaCare Corporation722-A Isom Road

San Antonio, Texas 78216Phone 210.375.8500

4th example

From personal issues with high cholesterol to a company with natural anti-cholesterol product

CyTex, Corp.

Incidence of elevated cholesterol•100 million American adults have total blood cholesterol values of 200 mg/dL and higher

•Thus, approximately 20-40% of the population of the USA exhibit hyperlipidemia

•Using extrapolation, it is estimated that in Cyprus there are at least 150,000 people who could benefit from Miracle; in Greece, over 2 million people

Why Miracle?• Daily Miracle dosage

is 1 capsule – 7.5 mg of Monacolins

• Lovastatin dosage: 20-40 mg daily

• Other ingredients (e.g., sterols) may also add to shown benefits

Manufacturers-Distributorsof Miracle

CyTex LTD.Ave. Digeni Akrita 79C, Nicosia, Cyprus(Also, 2119 MacArthur, Houston, Texas, USA)

Telephone: 22458300, 22753445Fax: 22757260

Webpage: Cy-Tex.com/Miracleemail: miracle@cy-tex.com

New Med Tec LTD.Nikodimou Mylona 9, Nicosia, Cyprus

Telephone: 22757770Fax: 22751472

Webpage: Cy-Tex.com/Miracleemail: info@nicholsoncyprus.com

EXCERPTS•12-15 mil US adults on statins – another 21 mil should be taking them

•Statins: the ultimate miracle med

•Roy Collins of Oxford University: “Statins are the new aspirin”

•Possible treatment for Alzheimer’s disease, multiple sclerosis, osteoporosis and even cancer

Newsweek cover story on statins (issue 9 July 2003)

Miracle:

A natural cocktail of statins

against cholesterol

• People are the most important asset… but also biggest problems – egos can destroy a company

• A protectable, proprietary position is important to success

• Valuation is an art – the earlier the investment stage, the less precise

• Don’t take in more capital than you need (1-2 yrs)

• Raise less C£ early, meet milestones, get more capital later at a higher valuation

What have I learned?

• The control issue• Surprise! Profitability does matter• Near zero liquidity of common stock –

also no possible dividends, board seats, etc.

• Do not go for preferred stock – investors won’t let you

• Common stock is for founders, friends & family, angels, employees

More hard lessons

• Public markets no longer “fund” unproven business models

• Exit opportunities have diminished

• VC firms are spending more time managing their existing portfolio & less investing in new companies

• VC firms are exiting the early-stage market for later-stage opportunities

Consequences of the Internet crash

• Existing VC portfolio companies are having difficulty raising money

• Valuations are back to pre-1995 levels

• Methods for determining valuations are more normal

• The laws of finance are fairly stable – investor psychology is not

Post Internet-crash awakening

• Need to solve a significant problem • Novel but practical ideas• Have general idea of bench to bedside

process• Prepare convincing proof-of-concept• No man is an island… excellent team• A man (woman, company) has to know

his (her, its) limitations

ELEMENTS FOR EFFECTIVETECHNOLOGY TRANSFER

THE VISION•Technology transfer does not have to be university-based

•Effort must rely on applied research

•Research and commercialization should go together

•In the final analysis, everything is based on the human factor