What is MaRS Innovation?
Our Start-Up Company Model
Dr. Raphael Hofstein
President & CEO
Presentation to the Networks of Centres of Excellence’s Annual General Meeting
March 2015
OECD’s data on R&D expenditure as Percent of GDP
CS&T challenges and the development
of competitive advantages
2
15 MEMBERS = ONE VISION
We exist to harness Canada’s
largest research cluster
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And turn the $1.1 billion annually invested into basic research
within our members into market-facing products and services
WHY WERE WE CREATED?
Valley of Death:
Early commercialization stage where promising ideas fail
In partnership with our members, MaRS Innovation
exists to bridge academic excellence and market-driven success.
ACADEMIC MEMBERS
SERVICES TO MEMBERS
Support
Screen
Build
Launch
Standard Services
Light Touch:
One-to-Many
High-Touch:
Dedicated License
Team
Highest Touch:
Up to 50 Per Cent
Dedicated Time to
Start-Up Company
Access to Resources
• Market intelligence
and research
databases
• MI’s network
• Discipline-specific
expertise
Validation Funding
• Medical Sciences
Proof-of-Principle
(MSc PoP) funding
• Industry
Framework Funds
and scouting
services
Services:
• Proof-of-Principle
funding
• Patent filing and
maintenance
• Outside expertise
• Commercial
development and
negotiations
Services:
• Company creation
• Business strategy
and development
• Intellectual property
management*
• Preparation for
external investment
and negotiations
* MaRS Innovation start-up
companies assume intellectual
property costs six months into
operations
ASSET LIFE CYCLE
Acquisition or Exit
BRINGING
THE MARKET
PERSPECTIVE
Commercial
Partnerships
Multi-Gen
Product Strategy
Scalable
Markets
Technology
Bundling
Technology
Pivots
Adjacent Markets
GOVERNMENT PARTNERS
Federal
Provincial
INDUSTRY PARTNERS
PORTFOLIO DIVERSITY
MaRS Innovation accepts
member technologies in:
•
•
•
•
•
Therapeutics
Physical sciences
Clean technology
Medical devices and medical diagnostics
Information and communications technology (ICT)
Protected—Commercial Confidential
LIFE
SCIENCES
PORTFOLIO COMPANIES
Company Creation
* UTEST company
** Equity acquired
through license
transaction
Drug
Development
Diagnostics/
Medical Devices
E-Health
Avid Biologics
ApneaDx
BlueDot
DLVR
Bedside Clinical
Systems
eQOL *
Encycle
ChipCare
E-Twenty *
ScarX
Kapplex
Root2Crown *
Triphase
Legworks
Syncadian *
Trillium (TSX) * *
OtoSIm
Treata *
Vasomune
Xagenic
TrendMD *
Zucara
XLV Diagnostics
VitalHub
PHYSICAL
SCIENCES
PORTFOLIO COMPANIES
Information
Technology
Physical Sciences
Crowdmark *
FlatFab *
CoursePeer *
ICE3 *
Flybits
QD Solar
Granata DS * * *
Company Creation
* UTEST company
** Equity acquired
through license
transaction
* * * Acquired
Kaypok
Wearables
Nvest *
Onyx Motion *
Shotl:st *
Whirlscape *
Thotra *
Slyce **
Portfolio Examples
START-UP COMPANIES
• Xagenic has developed a
revolutionary direct detection platform
for molecular analysis enabling rapid,
on-demand diagnostic testing.
Rapid, point-of-care testing for
infectious diseases
University of Toronto
• Their aim is to enable on-demand,
near-patient molecular testing,
empowering clinicians to make
treatment decisions for their
patients at the time of first
consultation.
• Dr. Shana Kelley at the University
of Toronto developed Xagenic’s
revolutionary AuRA technology using
electrochemical methods.
• Closed Series B of $25.5M in 2013;
company has raised close to $50M.
START-UP COMPANIES
• Flybits addresses both information
overload and the need for personalized,
relevant mobile content.
• Employing patent-protected context-aware
technology, the Flybits platform and
Intelligent mobile solutions for
applications deliver relevant, timely and
location-based information to targeted
personalized, relevant information
mobile users (employees and customers).
Ryerson University
• Flybits allows any company or user to
deliver intelligent mobile solutions on an
international scale. Using Flybits everyone
can build, deploy and benefit from contextaware services and mobile analytics.
• With Flybits LITE, mobile users can create
zones instantaneously in order to provision
mobile applications and services using an
intuitive and visual web-based interface.
• $5 million Series A complete with Robert
Bosch Venture Capital, Trellis Capital and
Vodofone (2014)
COMPANY FINANCING
(Pre) Pre-Seed
Xagenic
ApneaDx
Flybits
< $100,000
MI: $100K
MI: $100,000
OCE: $70,000
Pre-Seed
MI & OCE
MI & Foundation
< $1M
$500K
$1.0 million
Seed
MI & consortium
Angels
$3-5M
~ $2M
>$2M
Series A of $4.5M:
Bosch, Vodafone,
Trellis, IAF
Series A
Qiagen, CTI, OETF
$5-10M
$10 million
Series A
Series B?
Series B
Domain, CTI &
BDC
< $20M
Series B
$25M
EXIT
MI: $300,000 +
$200,000
debenture
START-UP COMPANIES
Crafting better therapeutics
University of Toronto
• Encycle Therapeutics, a biopharmaceutical
start-up company, exploiting a proprietary
platform technology that enables the
efficient macrocycles. It stabilizes linear
peptides and peptide-like compounds for
drug development by cyclizing them.
• Cyclization has demonstrably increased the
drug-like properties of these molecules,
increasing their stability in the body and
drug-like properties while providing a higher
degree of cell permeability, which means
they’re more likely to reach their site of
action and achieve a desired effect.
• Based on Professor Andrei Yudin‘s chemistry
research, Encycle’s technology adapts to any
linear peptide input and is being used to
generate libraries of compounds to facilitate
drug discovery and development.
START-UP COMPANIES
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Targeting vascular inflammation
and destabilization
Sunnybrook Research Institute
• Vasomune’s discovery: Tie2
Receptor Pathway is validated
and commercially desirable;
multiple clinical indications;
datasets commercially wellvalidated by third parties.
• 2,000 cardiac surgeries
performed daily worldwide; 30 per
cent of cardiac surgery patients
develop acute kidney injury; no
approved, effective therapies.
• Three patent families for firstin-class Tie2 agonist (VT).
• Baxter is secured as a strategic
partner.
• Raising a $10 million Series A in
Q1 2015; seed funding of $1.5
million in place.
START-UP COMPANIES
• Dr. Ben Alman discovered that
the nefopam molecule targets
fibroblast cells, which produce
scar tissue
Minimizing post-surgical scars
The Hospital for Sick Children
• MI provided pre-seed funding to
develop a topical formulation as
an anti-scarring medication
• Passed gold-standard
benchmarks for pre-clinical
models
• Enabled company to raise a total
of $1.7M in seed capital
• Required safety and toxicity
studies now completed
• Clinical trials scheduled to begin in
late 2015
Surgical Scars
Initial US Target Market ~ $2.5B
7.4 Million C&R Surgeries
Cosmetic &
Reconstructive
Plastic Surgery
US Surgeries/yr.
by Segment
No clinically proven Rx therapeutic available
The Product–NefopTopicalCream (SCX-001)
•
•
•
•
•
Optimized to delivery drug across the skin
Patient-administered, twice daily x 3 weeks
Cosmetically acceptable formulation
Excellent pharmaceutical stability
Safe: 30 years of human safety data from Europe
• Centrally acting, non-opioid oral/IV analgesic developed in the 1960’s
• Systemic exposure 25x less than known safe
dosage
• Low manufacturing COGS
SCX-001
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Efficacy in Porcine Model – Topical 1% Nefopam
Full-thickness cutaneous incisional wounds
Placebo
β-catenin Expression in Skin
Placebo
1% Nefopam
1% Nefopam
Days following 2 cm incisional wound
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Timeline and Budget
$300-825M
comparables

Valuation

$3.5M
Research
Grants + $1.7M
Seed Financing


Single center
24 subjects
Within patient
placebo controlled
Safety + Signs of
efficacy




Multi-center
75 patients
2 dosages
Efficacy and Safety
Phase III
Phase IIB
Phase
I/IIA
Non-clin. Tox
Cream
Manufacturing
Preclinical Efficacy
Series C
Financing
$30M
Series B
Financing
~$10M
Series A
Financing
$2.0M
Formulation
Dev.
Market
Filing
3 years $12M
Potential Acquisition
Discovery
2015
2016
Time
2017
2020
AccelRX – Seed Funding
AccelRX
(CECR)
$500K
Private
(VC, industry
etc.)
$500K
NewCo
BDC
$500K
DOING THE IMPOSSIBLE
Accel-Rx Program
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THANK YOU
Web: marsinnovation.com
Twitter: @marsinnovation
LinkedIn: http://linkd.in/Lk7JoJ