Matthew Engel

Wednesday, April 21th at 8PM - The Staller Center, Main Stage

Bruce Engel, Maestro

On Thursday, February 11th I was privileged to meet NYS Comptroller Tom DiNapoli and his birthday party and 2010 fundraiser. I was invited to the event my Jim McAsey, of CWA 1104 to speak on behalf of graduate students at Stony Brook University. The event was very crowded and filled with local politicians, their staff, regional business leaders, and organized labor union executives. Specifically, we were there to speak to the Comptroller about our experience negotiating a contract with the Research Foundation of the SUNY. He was very supportive, and I look forward to staying in touch with him and the other representatives I met that evening.

Westri Stalder, Tom DiNapoli and Matthew Engel

By Mathew A. Engel

Day 1 Summary: Venture Capital Financing, Intellectual Property Management, and Emerging Business Models

The 2009 Life Science Summit took place from September 23 to 24, 2009 at the Hyatt Regency Hotel in Happauge, NY. There were hundreds of attendees representing the biotech industry and academia from all over the state. The industry attendees showed a diverse segmentation with strong representation from university technology transfer offices, law firms, venture capital firms, medicine, privately held biotech companies, mid and large-cap pharmaceutical companies. As a graduate student and alumni of the Fundamentals of the Bioscience Industry Program, I spent most of my time talking with accomplished professionals from successful companies who had experience commercializing technology, raising capital, or evaluating new ventures. Below I will summarize my findings from the most interesting sessions throughout the first day of the summit. Hopefully, in the near future I will publish a follow-up covering day 2.

What Does it Take to Build a Biotechnology Company in Today’s Environment

The opening plenary session was a great way to spark the crowd’s interest and attention. In the back of my mind, I am always thinking about starting a biotechnology company and therefore always eager to hear advice from seasoned industry veterans. These individuals, especially those who volunteer as panelists or speakers are often willing to share their knowledge and offer some deep insight to beginners. In this session the speakers focused on how to raise capital. Those who are evaluating your proposal will be thinking “where is the technology” and “where is the project”. It is suggested that you network and these connections will lead you to investors who can also guide you into small collaborations. Their role is to keep these smaller companies on track. Currently, most of the demand is for products in late stage clinical trials, in this space demand remains high. Pharma is limiting their investment to certain therapeutic areas. The days of massive deal for a new platform technology are behind us. The huge investment in genomics with no products to show for it was cited. Most deals come about because someone knew someone. It’s not just writing a business plan and patents (though that is still required!). Venture capital (VC) will only stay in for a very short time. Pharma will only jump in Phase II. VC largely invests in people they know. Mailing the best business plan in the world to VCs will get you nothing. You have to meet people some way that might invest. For example, some of the people on the panels today are Angel investors. Remember to “pick your partners”. The entrepreneur better be prepared to invest. Are there other options besides start-up? Many of the panelists, knowing what they do now, would not have chosen to start their own company. “Got to be ignorant to go do it”. Today, businesses are focusing on staying extremely lean - infrastructure is reduced. Reducing the amount of money necessary to operate. However, a company can only “be so lean” and achieve their business goals. VC is not going to be the “sugar baby” that’s going to take the company all the way through. There are drug discovery and medical chemistry labs on campus. The university should have a funding pool designated for small companies coming out of academia. One of the panelists spent time describing the experience of his friend who was trying to raise capital. His friend took no as just another opportunity to go back to him. However, it’s good to get someone with more experience and put together a team of people. “Build a culture and your company”. Medical devices is a great area to get into now. Diagnostics tools is a “neat area to be going into”. Get management in - VC looks at management team. Get help and advice from VC. Donald L. Drakeman, Venture Partner at Advent Ventures had previously ran a company and was now a VC. His motto is “management, management, management”. What makes great management? Management that will step aside.

Is the VC funding Model Broken?

Mary C. Tanner, Managing Director at Peter J. Solomon & Co. and Maggie Flanagan LeFlore, Managing Director at MedImmune Venture Inc. were two of the most outspoken panelists during this business workshop. The panel delivered an overview of the VC industry covering current trends in their investment strategies. VC’s are adaptable and clever. They are in the business of building private companies to be sold. Their goal is to reach a deal with your company, in which payments are made as milestones are met. LeFlore covered 18 deals in the last year. Private companies are easier to sell. Fewer and fewer big pharma are in the market for these investments. Their has been a fundamentals shift in exit strategy. Survival has followed those most adaptable to change. There are many exit strategies. How to get the VCs interest? Early stage risk is notorious, your goal should be to find little pockets of money to move things forward. Your faculty members better be well known (i.e. published in Nature, Science, Cell..). One of the panelists, E. Jonathan Soderstrom, Managing Director of the Office of Cooperative Research at Yale University had brought a compound to the attention of Lily. They asked for a proof of concept in humans! He did not even have that in animals. The message is that you cannot expect Lily or Genetech to fund your development costs when the product is highly experimental.

Minimally Invasive Delivery of Mesenchymal Stems to the Nucleus Pulposus Using an In Situ Thermoresponsive Hydrogel

In July 2009, I passed a major milestone in my graduate research in the Department of Biomedical Engineering at Stony Brook University - I passed my qualifying exam! This literally required hundreds and hundreds of hours of work, during which I read over 50 scientific publications and synthesized them to come up with an original grant proposal. In this case, my challenge was to use a tissue engineering approach to treat degenerative disc disorder. Below, I will place my statement of interest plus a copy of the grant proposal and presentation I made. I most definitely learned a tremendous amount from this process, most of which I will be keeping private and storing away for later use. But it really teaches you how to make an effective presentation and to prepare thoroughly for a talk.

In a nutshell, the project focuses on stem cell implantation technology to treat spinal chord injuries associated with aging, and could also be applied to acute injuries.

Click on individual slides to see the full image

PROJECT SUMMARY: This proposal aims to design an in situ curable hydrogel composed of PNIPAAm-PEG capable of delivering therapeutic cells and drugs to the degenerated nucleus pulposus (NP) of an intervertebral disc (IVD). The therapeutic cells will be human mesenchymal stem cells (hMSCs) differentiated into NP-like cells by exposure to hypoxic low oxygen conditions in the presence of transforming growth factor β1 (TGF- β1). The hydrogel is composed of a solution containing 10% PNIPAAm-PEG(8000) at a 1:1600 ratio of PNIPAAm:PEG which undergoes a sol-gel transition at physiological temperatures (32°C). Modifications to the PEG molecular weight or concentration can be used to alter the hydrogel stiffness or sol-gel transition temperature. These properties will allow users to prepare cell and drug loaded solutions at ambient temperatures and then inject them into the degenerated disc, at which point they solidify in situ. The hydrogel is capable of being blended with small molecule inhibitors of nitric oxide synthase (NOS). The inhibition of NOS has been shown to increase proteoglycan content which can restore disc height to the degenerated IVD.

Download copy of grant proposal here (.pdf)

It has been some time since I wrote a post on here, and it is for a good reason. A lot of great and interesting things have been happening, and I still plan on sharing them. I have to say the one thing about writing a blo, and that is the longer you wait to post something, the tougher it becomes. I have alot of great ideas floating around my head, and several of them already have legs. I often see or hear something in the news and think “Gee. That would be really great to write about on my website”. Alas, it hasn’t been happening as frequently as I would like. However, the topics I have in the pipeline are going to grab your attention and capture the current trends in energy, technology, and financial investments in these fields. They include a report on biofuel start up companies, the mass production and marketing of electric vehicles, a new 37 Megawatt solar panel plant being built at Brookhaven National Laboratory, the launch of a new website I have created and a note on my passing of the Ph.D. qualifying exam in biomedical engineering at Stony Brook University. This is alot of stuff to write about! For now, I just wanted to mention that I’ve linked this blog with my LinkedIn profile using their Wordpress application. To see this, you have to be signed into LinkedIn and able to view my full profile. Check it out, it’s really neat! I’m wondering if it’s possible to link multiple blogs there, since I actually manage almost half a dozen websites by this point. Hope to keep you posted and have a great week!

Today was a very unique and special day - I was privledged to meet State Senator Kenneth LaValle in his home office in the First District of NY State. Senator LaValle (wiki) has been in office since 1977 and is responsible for representing the residents of Eastern Suffolk County, NY. He has contributed greatly to the development of Stony Brook University which I attend, and the new modern stadium bears his name. Today I was speaking to him about some of the important issues graduate students are facing at the university which affect daily life. Specifically the issues effecting Research Assistants who perform the work in the labs under the tutelage of a professor. The Senator was very passionate about higher education and concerned about the economic situation families are facing today with the mounting costs associated with attending college.

Jim, Senator LaValle, Kasia, and Myself