A case study on commercializing
science from academic lab
CENG 109 Class 25
Class Agenda
• Case study on Langer Lab at MIT
• Role-playing on Cool Lab at UST
Case study: Langer Lab @ MIT
Langer Lab performance in 2003
Funding
US$6.5M
($4.3M from
govt.)
Patents
Disclosure (12);
Applications (23);
Granted (16)
Academic
Papers
32
Research
Staff
68
Facilities
10,000 sq. ft.
Lab space
Examples of Langer Lab Spinout
Harvard Business School Case Study
Questions
• How does Langer Lab successfully
commercialize science?
• What should the university do to grow the
scientific capital?
• What should the government do to facilitate
the transfer science to industry?
• How should the businesses based on the
scientific capital be managed?
Harvard Business School Case Study
From lab research to science-based
businesses
“What excites me, personally, is that you can use science as a tool to create
things that can change the world. Everything we’ve tried to do is to
make discoveries that will affect human life.”
- Professor Robert Langer
Four elements on an ideal research project:
1. A huge idea : recognizing critical need of a society; met by inventing a
platform product
2. A seminal paper: establish the underlying science of product conecpt
3. A blocking patent: preventing future entry by competitors
4. In vivo studies: results to demonstrate efficacy of research
Harvard Business School Case Study
Timeline for creating AIR®
Harvard Business School Case Study
AIR® Concept
• Recognize that the particle deposition depends on
its aerodynamic diameter
Aerodynamic diameter
____________
= actual particle diameter x √ particle density
• Large porous particle
Has the same aerodynamic
Property as small dense
particle
Picture: Science 276(1868), 1997
Working with Technology Licensing
Office
Seminal Paper: Proof of Concept
Animal results
Demonstrate
technology works
in animals
Science 276(1868), 1997
Patents and Technology Transfer
• MIT: grant 80—100 technology licenses per year
 about 10 new biotechnology companies per year
Sampling of biotech companies formed out of MIT since 1998
•Akceli: drug discovery arrays
•Alnylam: siRNA therapeutics
•Advanced inhalation research: aerosol
2004 MIT statistics:
delivery of drugs
• 510 technology disclosure
•Matritech: bladder cancer detection
•MnemoSciences: shape memory polymers
• 159 US patents issued
For medical devices
•Microbia: antifungal drug discovery
• 94 licenses and options
•Momenta: polysaccharide drugs
granted
•Ribocept: anti-RNA drugs
•Cardium: chloresterol transport therapeutics
• 20 companies founded around
•Sirena: anti-Alzheimer’s drugs
MIT IP
•Microchips: chip-based drug delivery
•Galenea: anti-schizophrenic drugs
Nelsen, L.L. Journal of Commercial Biotechnology. 11(4):330-336, 2005
The entrepreneurial community
• MIT is surrounded by an entrepreneurial
community in Cambridge/Boston
• Seasoned executives, lawyers, accountants,
consultants, real estate managers, investors
• “Knowledgeable money” helps fund and
guide a start-up
• Venture capital funds specialize in
biotechnology start-ups
Nelsen, L.L. Journal of Commercial Biotechnology. 11(4):330-336, 2005
Network of People
Harvard Business School Case Study
Questions
• How does Langer Lab successfully
commercialize science?
• What should the university do to grow the
scientific capital?
• What should the government do to facilitate
the transfer science to industry?
• How should the businesses based on the
scientific capital be managed?
Harvard Business School Case Study
Scenario for Role Playing
PhD
Students and
Postodocs
HKU medical
School
Collaborators
UST
Senior
Management
Dr. Cool
at UST
HK Govt.
Chinese
Govt.
UST
Tech
Transfer Ctr.
Venture
Capitalist
Established
Drug Co.
Scenario for Role Playing
Dr. Cool, an aspiring professor in UST has many
ideas on using biotechnologies to solve unmet
health care problems. He figures that given the
right environment, these ideas can become the
next star companies and will save improve the life
of millions of people. What should Dr. Cool do to
achieve his goals? What are the major
challenges? Will the government and university
help or hurt his endeavor? (Last HW assignment; due Dec 7;
½ page maximum)
Questions for your role
1.
Dr. Cool:
How should you move your ideas forward?
Who should you contact?
What do you want to gain from the commercialization of
science? How should you be involved in the science business?
2.
UST senior management:
What is the mission of the university?
Does supporting the commercialization of science contradict
with this mission?
What policies will you set up to encourage / discourage the
commercialization of science?
3.
UST technology transfer:
What is the purpose of your department in the university?
Filing and maintaining patents costs money, how do you
determine whether it is worth the effort for a particular
technology?
How would you protect the interest of the university when a
company expresses interests to license a technology from UST?
Questions for your role
4.
Venture capitalist:
•
•
•
5.
What do you consider when you evaluate a technology?
What other factors determine whether you would invest in a proposal
based on a science business?
Once you invest in a company, what would you do to ensure that you
can gain the most using the best exit strategy?
Established drug company
•
•
•
When would you decide to license a technology from university?
Will you contract a university lab to perform research for developing
the key product candidates for your company?
When would you decide to acquire a start-up company? How much
would you pay?
Questions for your role
6.
PhD students and postdoctoral researchers
•
•
•
•
7.
What do you care most when you are in graduate school?
What can you gain or lose from working on a technology to be
commercialized?
What experiments do you need to perform?
Your research aims to solve a health problem. Whom should you
get advice to make sure your research is on the right track?
HKU medical school collaborators
•
•
As a medical doctor, are you interested in working with an
engineer / scientist?
What can you gain or lose from such collaboration?
Questions for your role
8.
Hong Kong Govt/ e.g. Funding agency (UGC)
•
•
•
•
9.
Do you support the commercialization of science?
If yes, how would you demonstrate your commitment? If not,
why?
How would your stance change the research funding scheme?
Taxation scheme? Other policies?
How can you persuade the public to support your position?
Chinese Government / e.g. Regulatory Agency (SFDA)
•
•
•
Is a knowledge-based economy important for China?
What is lacking right now to provide an environment for
knowledge-based industries?
Should the regulations on drug approval be more stringent or
less stringent to encourage the development of modern
biotechnologies in China?