IP perspective and understanding of the biology, as the world leader in
these novel GDF- directed Biotherapeutics: Osteoblasts that promote new
bone formation. Skeletal muscle fibers that increase skeletal muscle
mass and strength. Endothelial cells that inhibit blood vessel
formation. Erythropoietic progenitors that increase red blood cells by
a non-EPO based mechanism. Adipose cells that directly target and
reduce fat. What we actually do;
Dr. Knopf offered up many observations that might be helpful for others looking to successfully start up Life Science companies in Buffalo and Western New York. Some of Dr. Knopf’s thoughts:
1. We learned a lot because we would try a lot of things for the first time. With a new company the timing of new products has to be just right.
2. I took courses in patent law for two years, twice a year, for a one week period each time, in order to get to understand intellectual property. Back in 2003 patent information was not yet available online, so you had to study patent history the old fashioned way, and in doing so one could uncover areas where opportunities lie.
3. We collected intellectual property in Stockholm as well as in La Jolla, California. That understanding of intellectual property was a big key to our success.
4. When something didn’t work we dropped it. When something worked we went with it. In the academic lab the world revolves around one particular thing working and ignoring everything else. Whereas in the real world we always tried to look at the complete picture.
5. Preclinical data only gets you so far in attracting capital. So you really need to capture clinical data. To get clinical data you need to raise a lot of money to have someone sit down and produce the data for you. We decided to do it on our own instead.
6. It is important if you are considering this type of opportunity and you think you have a real good opportunity to hang in there and say no to inadequate funding. Hold out for the funding that you need. Be prepared to walk if you have to. You do have to be ready to walk because they can smell it, these guys, they know what they’re doing, they’ve been around the block.
7. We ended up getting enough funding to last three years with just three molecules and the assumption that one of them would work. That was the early part of our strategy. It was in this process that we attracted top tier Venture Capital groups.
8. It is important to know your colleagues. To know their strengths and weaknesses. That chemistry of the team is so much more important than how smart your team is.
9. We originally raised $50 million, with only $5 million of it in equity, so the investment would not get diluted, which is quite important. (In that case you would still have 90% ownership. If you gave up $40 million in equity instead, out of the $50 million, you would have only 20% ownership.)
10. What I hear now is venture capital unwilling to put new money in projects. If you have a great idea that makes sense you will need money, and maybe you will not get a lot of money, but enough so you can get started. Go talk to folks that have some sort of connection to what you are trying to do.
- Upcoming Life Sciences events like this one can be found at the New York State Center of Excellence in Bioinformatics & Life Sciences website.
- Information about career pathways and opportunities in Buffalo Life Sciences can be found at the Buffalo and Western New York Life Sciences website.