Accelerating Innovation: Commercialization of DOTLab System

Transcription

1 Accelerating Innovation: Commercialization of DOTLab System Rocky Ganske Axela Biosensors, Inc Jason Lye Kimberly-Clark Worldwide Yet2.com Executive Briefing VIII November 6 th, 2006

2 Outline Company Profiles The Match Potential Synergies Deal or No Deal Success of the Transaction Why it Worked Value of the Deal - Short Term - Long Terms

3 Axela Biosensors Company Profile: The Start-Up Privately held Canadian company Venture backed < 50 employees Size unknown Business to Business focus

4 Kimberly-Clark Corporation Company Profile: Publicly traded Global Enterprise > 130 years old 57,000 employees Over $15.9 BN in sales Recognized Consumer and B2B Brands The Fortune 200 Company

5 Axela Biosensors Technology Approach New diagnostic tool IP from University of Toronto Enabling technology: Diffraction Based Biosensor Technology Milestones set for Commercial Launch of DOTLab System -- a quicker, more accurate and cost effective device Axela DOTLab System

6 Kimberly-Clark Corporation Technology Approach New Corporate Vision for Health, Hygiene and Well Being Business Strategies and Technology Platforms realigned Change of strategy for use of Diffraction Based Biosensor Technology now made this technology available for license Diffraction Based Biosensors

7 The Match

8 The Synergy One Technology + Two Different Approaches = Stronger Outcomes and Products Physics of Diffracted } Light + K-C Strength in Signal Amplification, Manufacturing, using transmission detection + + Protein Binding Axela Strength in Instrument and consumable design using TIR detection

9 Axela & K-C Collaboration Analytical device useful for real time monitoring of protein binding-a powerful tool. K-C technology used to produce the consumable optical chip. DOTLab System launched at August 2006 Drug Discovery Conference. The synergistic combination of K-C s technology with Axela s technology allowed a commercial product launch within 8 months.

10 Value Captured from the Deal! Acceleration of development! Cost avoidance decreased time to market! More robust and scaleable manufacturing process! Corporate Support: Investment by a recognized Health and Hygiene Global Company! Strong relationship established potential for future collaborations

11 Value Captured from the Deal... For both Companies...! Acceleration of development! Cost avoidance decreased use of research dollars! Faster entrance into market with a new product! More robust manufacturing process available using inlicensed IP! Corporate Support: Investment by a recognized Health and Hygiene Global Company! Strong relationship established potential for future collaborations Underutilized Kimberly-Clark technology supported to commercialization K-C accepted equity position in a start-up company Demonstrates ability to generate value from K-C intellectual property Technology improvements licensed back to Kimberly- Clark Strong relationship established with an emerging diagnostics company

12 Why was the transaction successful? Thomas Friedman : In a Flat World, the small shall act big. Axela thought big and acted quickly to take advantage of the opportunity to use K-C technology to reach farther, faster. and the big shall act small. Kimberly-Clark acted nimbly, was decisive and ready to transfer their knowledge enabling Axela their customers -- to seize the opportunity. In the flat world, the best companies are the best collaborators

13 What Worked? 1. Open with each others objectives: " Defined value in licensing " Disclosed what development was needed " Established priorities and sensitivities on both sides -- early 2. Obtained early buy-in at Executive levels. 3. Compilation of pertinent know-how documents in data room " Key personnel together early and often for due diligence " Due diligence outcome goals pre-defined " Honest, candid, open, and professional 4. Detailed term sheet (30 pages) negotiated early in the process. 5. Timelines established for short, medium and longer term technology incorporation plans. 6. The timely and efficient match by yet2.com

14 Commercial Impact of Open Innovation With Open Innovation, K-C improved Axela s: 1. Speed to market With a product that is being used to generate new drugs, new diagnostics protocols, and enabling groundbreaking research. 2. Financial management Six months to one year research and development dollars saved. 3. Partnerships and Press Found a new potential partner for future collaboration.

15 Commercial Impact of Open Innovation The Open Innovation business model improved K-C s: 1. Returns on Investment in Technology The future growth of Axela Biosensors will help fund future research and development of KimberlyClark technology. 2. Research Community Motivation and Validation Technology that was once diligently pursued lives on outside of the corporation, and is being commercialized by a partner. 3. Partnerships and Press yet2.com identified a technology market need and made a connection that benefits all parties and accelerates diagnostics market expansion.

16 Commercial Impact of this Collaboration..... Looking Forward The commercialized technology bridges the gap between bio-marker discovery and the clinical use of bio-markers in translational medicine. Antibody Characterization & Assay Development Bio-Marker Detection Reagent characterization Clinical Use in Diagnostic Tests Biotherapeutic Manufacturers Immunoassay Developers Life Science Research Clinical Research Clinical Reference Labs Custom Assay Reagent Manufacturers POC 510k, PMA

17 Accelerating Innovation Through Collaboration

18 Accelerating Innovation: Commercialization of DOTLab System Thank You. Rocky Ganske Axela Biosensors, Inc Jason Lye Kimberly-Clark Worldwide Yet2.com Executive Briefing VIII November 6 th, 2006