Networked Pharma – Finance (NWkRx F8)
Networked Pharma’s Workshop
Funds and Fundability, 28th June
2012
Executive Summary
Networked Pharma’s “Funds and Fundability” workshop examined the
evolving funding ecosystem (equity, collaboration & grant) and the
future role of open innovation (OI) for early stage drug discovery.
Key opinion leaders were joined by 60 participants from diverse
stakeholder backgrounds, for presentations and facilitated discussions (report
available on request). Workshop website.
Key Findings
A. Investor consensus surprisingly positive for
biotech/pharma sector.
o There are
hidden / ‘below the radar’ fundraisings occurring,
o Although
the old investment model is dead in UK, and the public markets closed, there is
now a new model of a single large investment sufficient to go all the way to
achieve an exit by trade sale.
o Funds are emerging
with “Patient” Capital (i.e. they are prepared to wait long enough for value
creation to occur). However, more are
needed.
B. UK is good at producing lean companies with 1 or
2 products that are sold-off too soon for early exit and financial return:
“You
Brits are very good a creating ‘Veal’ ready for slaughter”
Participant quoting a USA colleague
Rather than being
prepared to wait and build a self-sufficient multi-product company and so
realise the full potential value.
“We need the fodder
to build ‘Beef’” Serial biotech entrepreneur
More Patient
capital is needed for this and probably the public markets.
“Are we prepared to
be patient?” VC
Sector needs
1. A
new / “better” way to capture information on fundraisings. Many current investments are “under the
radar” as different types of investor are now involved, and there is no need
for publicity. This will enable us all to know what is actually happening and
to recognise successes.
2. A
better way to recognise our UK pharma/biotech company successes, and new
measures to assist with this (not just financial).
3. Support
for entrepreneurs to decide which of the funding sources to approach: i.e. Fill
the information gap between funders (of all types including government/research
bodies) and those looking for funding
- Which of the three “silos” of equity investor’s to approach, and who to contact therein? The three silos rarely interact: 1. VC/CVC, 2. Angels/regional funds, & 3. Public-listed funds.
- Which grant funding and other non-equity sources are applicable to given types/stages of projects/companies, and who to contact?
4. More
equity funds that straddle the three silos.
5. The
creation of some biotech/pharma Sector Champions (“Beef”) in UK, and more
investors prepared to be “patient” (prepared to wait 10+ years to develop full
value and achieve such champions).
6. Engagement
of the public markets with biotech.
7. More
specific information and better information sources on OI & Crowdsourcing
within Drug discovery, and where entrepreneurs can go for advice.
8. Support
for entrepreneurs to establish effective collaborative relationships, utilising
open innovation /crowdsourcing, collaborative projects and (open) networks.
Action
NetworkedPharma is now establishing collaborative networks to address the
above, and welcomes approaches from those interested in the possibility of
working together for the good of the sector. As a not-for-profit organisation we are also
interested in discussions with potential patrons / sponsors / supporters.
Our next workshop on Open Innovation& Crowd Sourcing will be in April 2013.
BioSpring Ltd is a member of Networked Pharma Partnership, a not for profit organisation dedicated to assisting development of a new paradigm for drug discover & development
Networked Pharma Partnership; Building Innovative Networks in Drug Discovery & Development
A series of workshops are being run during 2012, leading to an international congress in mid 2013, which will bring together all stake-holders (Corporate Pharmas, SMEs, CROs, Universities, VCs, CVCs, Research Councils, Charities, Regulators & Government bodies etc.) to formulate the new business model(s) for the future success of the industry.
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