Transcript Nanotechnology and Microsystems

Commercialising
Nanotechnology
© Paul Atherton 2006
Nanotechnology
• not a useful description of technology –
many different nanotechnologies
• not a useful description of markets or
applications
• principal use is for Funding agencies
– UK, US, EU and VC
– Beware re-labelling of existing activities
© Paul Atherton 2006
Types of Nanotechnology
• Top down - Engineering Nanotechnology
– miniaturisation of macroscopic devices
– Micro Systems Technology (MST) – ink jet printers,
disk drive heads, air bag sensors, Pentium chips
– Tools: wafer steppers, SPM, SEM, Nanomanipulators
• Bottom Up – Molecular Nanotechnology
– atom by atom, molecule by molecule
• Drexler’s Molecular machines
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Chemistry – nanoparticles, fullerenes
Physics – quantum dots
Biology – was always nanotechnology
Quantum effects become important at the nanoscale
• Top Down is probably nearer market than Bottom
Up
© Paul Atherton 2006
Engineering Nanotech
Commercialisation
• MST – Micro Systems Technology
– Pressure sensors - tyres, manifolds
• Sensonor(Infineon), Colibrys, Bosch
– Accelerometers – air bags, inertial guidance
• BAE Systems, Analog Devices
– Microfluidics/DNA Microarrays – Lab on a chip
• Genomics, drug discovery, diagnostics
• Affymetrix, Applied Gene Technology $500M
– Optical Switches
• Texas Instruments – Digital Light Projector >$900M
• Markets that really exist!
– Bosch make >100M devices per year
© Paul Atherton 2006
Nano Tools
• Microscopes
– SPM – Veeco, NanoInk, Infinitesima
– SEM – FEI, JEOL, Hitachi etc
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Steppers – ASML, Canon, Nikon
Coatings – EVG, Unaxis
DRIE – STS, Suss Microtech
Nano Manipulators – Zyvex, Klocke,
© Paul Atherton 2006
Nanotech Commercialisation
• >500 companies globally
• 1/3 in Nanoparticles
• >55 companies in Carbon Nanotubes
– Of which >20 in large scale production
© Paul Atherton 2006
Nanotech Commercialisation Activity
• Fullerenes
– Carbon buckyballs
– Carbon nanotubes
• Single wall
• Multi wall
• Nanoparticles
– 5nm TiO2, AlNi, metal shells, caged atoms
© Paul Atherton 2006
Fullerenes
Carbon Buckyballs and Nanotubes
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Physical Strength
Electrical conductivity
Thermal conductivity
Scaffolds - bio-pharma
Caged atoms – quantum effects
Nanowires
© Paul Atherton 2006
Fullerenes – Start ups 1
Volume production
• Nanoledge – (France)
– Large scale production (4 ounce per day) tennis
racquets, fibers.
• Mitsui CNRI (Akashima, Tokyo)
– (new nanotube plant– 120 tons per year at 10% present
cost)
• Frontier Carbon (Kitakyusyu City) – Mitsubishi
– large scale M/F 400kg per year
– 1500 tons by 2007
© Paul Atherton 2006
Fullerenes Start Ups 2
‘Functionalised’
• Carbon Nanotechnologies
– Richard Smalley ($15M - angels)
– Single walled and functionalised tubes
• Nantero (>$20M – DFJ and others)
– NRAM™, a high-density
nonvolatile random access memory chip
• Molecular Nanosystems
– Stanford ($2M – band of angels)
– Nanotube sensors
• C Sixty – ($4M – CNI-angels)
– Protease inhibitor – anti HIV
– Dec 2004 – merged with CNI
© Paul Atherton 2006
Fullerenes
Commercialisation
• Very broad applications
• Entry of large manufacturing companies
– Already second movers appearing
• Price dropping rapidly
• Clear specialisations developing
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market focus
Co-development deals
No IPOs yet……
NEC and Samsung
© Paul Atherton 2006
Nanoparticles
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Catalysts
Functional materials and coatings
Ceramics
Drug Delivery
© Paul Atherton 2006
Nanoparticles
• NanoPhase Technologies (Nasdaq)
• Ntera ($30M)
– was Li-ion batteries – now nanochromic displays
• Nanogram ($6.7M) – nanomaterials
• Aveka (buy out from 3M) – particle processing
• Oxonica ($4M) sunscreens, bio tags, catalysts.
– Floated on Aim 2005
• Quantum Dot Corp ($37M) – bio-assays
– Acquired by Invitrogen oct 2005
• Nanosphere ($10 million)
– Gold nanoparticle DNA probes for bio-threat detection ( anthrax)
• Qinetiq nanomaterials
• Nanomagnetics – was data storage – now water
purification - Apaclara
© Paul Atherton 2006
Nanoparticles
• Capacity and cost
• Scale up issues
• Production technology
– Plasma vs precipitation
• New start ups vs existing players :
• Degussa, Cabot Corp, Johnson Matthey
• BASF, Altana
© Paul Atherton 2006
Nanophase Nanosys and Oxonica
• Nanophase – first Nanotech IPO
– Over valued
• Nanosys – the hyped Nanotech IPO
– Over sold
• Oxonica – an unexpected IPO
– Over diluted
© Paul Atherton 2006
NanoPhase Technologies
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Patents licensed from Argonne – 1990
Zinc oxide nanoparticles – sunscreens
Catalysts
Floated on Nasdaq – 1998
Early Nanotech IPO
Rode technology wave
Look at recent history……
© Paul Atherton 2006
Nanophase
• 1998 Over hyped IPO
– paid compensation of $4.8M (Jan 2002)
• Nov 2001 Layoffs – insufficient demand
• Growth, but quite volatile
– Customer delays
– major customer - sunscreen
• 03Q1 revenues $1.66M 03Q2 $1.3M
• Losing about $1.3M per quarter
© Paul Atherton 2006
NanoPhase update
• 25/03/2004
• Altana Chemie AG – acquires 7% for $10M
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Speciality chemicals business
2 year lock up
8 year strategic agreement
c.f. BASF investment in Oxonica….
• $1.7M Revenues for quarter ended Sept 30 2005
• Net loss for quarter - $1.53M
• Q1 2006 – Revenue rises to $2M – net loss $1.5M
© Paul Atherton 2006
Market Cap $120M
© Paul Atherton 2006
Nanosys
• Charles Lieber, Hongkun Park
– Harvard Chemistry Nanowires
• Paul Alivisatos –
– UC Berkeley – nanocrystals, quantum dots
• Larry Bock – biotech serial entrepreneur
Fundraising :
• Oct 2001 - $M1.65
• Feb 2002 - $M15.5
• June 2003 - $M39
© Paul Atherton 2006
Nanosys
• Bio-sensors
– functionalised inorganic semiconductor nanowires
– 1D electron flow highly sensitive and selective
• Photovoltaics
– nanocrystals in host matrix
– Solar cells as roof tiles (Matsushita contract)
• Macroelectronics – flexible low cost substrate
• Nanostructured surfaces
– Hydrophobic and anti-microbial surfaces
© Paul Atherton 2006
Nanosys
• Land Grab
IP strategy
– > 120 patents owned or licensed
• Licensed portfolios from world class scientists and
institutions
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Lawrence Berkeley - Alivisatos, McEuen
UC Berkeley - Yang
Harvard – Lieber, Park
MIT - Bawendi
Columbia - Brus
UCLA - Heath
Yussum, Hebrew Univ of Jerusalem – Banin
Chicago – Guyot-Sionnest
• The Scientific Advisory Board
• Annual Revenues ~$3M
© Paul Atherton 2006
Nanosys – the IPO
• April 23, 2004 – Nanosys Inc. , a Palo Alto-based
developer of inorganic semiconductor
nanocrystals, filed for an initial public offering
Thursday, according to its SEC registration
statement. Merrill Lynch, Lehman Brothers, CIBC
World Markets and Needham & Co. are
underwriting the offering. The company is seeking
to raise up to $115 million on the Nasdaq market
and has applied for the symbol “NNSY.”
© Paul Atherton 2006
NANOSYS WITHDRAWS IPO
Aug. 4, 2004 – Nanosys Inc. has announced the
withdrawal of its IPO. The Palo Alto, Calif.-based
nanotech startup was expected to go public this
week or early next week.
• "Based on adverse market conditions," the
company said in a news release, "Nanosys has
determined that it is not advisable at this time to
proceed with the proposed offering."
• The company had proposed selling 6.25-million
shares of stock and estimated the price between
$15 and $17 per share.
© Paul Atherton 2006
• Press reports leading up to the expected week of
the IPO lambasted Nanosys for having only $3
million in revenues in 2003. It was also pointed
out that one of the few hard metrics available to
value the firm - a price-to-revenue ratio over 120 suggested it was a speculative investment, and that
if it performed poorly, it would undermine the
ability of other nanotechnology firms to access the
public markets.
© Paul Atherton 2006
Nanosys Raises $40 Million in a
Private Equity Financing
• Palo Alto , CA - (November 9, 2005) . Nanosys, Inc., a privately
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held company focused on developing nanotechnology-enabled products, today
announced that the company has raised approximately $40 Million in a private
equity financing. This financing was led by El Dorado Ventures and includes
new investors Masters Capital, Medtronic, Inc., Wasatch Advisors, and others.
In addition, there was strong participation from existing investors including
Alexandria Equities, ARCH Venture Partners, CDIB BioScience Ventures, CW
Group, Harris & Harris Group, Inc., In-Q-Tel, Intel Capital, H.B. Fuller
Company, Lux Capital, Polaris Venture Partners, Prospect Venture Partners,
UOB Hermes Asia Technology Fund, and Venrock Associates.
Nanosys will use this funding for the ongoing development and manufacturing
scale-up of products that incorporate its proprietary, inorganic nanostructures
with integrated functionality for multiple industries. Current product
development programs include chemical analysis chips for pharmaceutical
drug research, fuel cells for portable electronics, nanostructures for displays
and phased array antennas, non-volatile memory for electronic devices, and
solid state lighting products.
© Paul Atherton 2006
Oxonica
• Oxford University spin out
– Pete Dobson,
• Inorganic Nanoparticles
– Fuel additives (sunscreens (Soltan), bio-tags
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1999 – angel round
2002 - £4M investment (BASF and others)
2004 - £4.2M investment
2005 – AIM flotation
– raised £7.1M at market cap of £35M
– Float price of 95.8p per share
© Paul Atherton 2006
Oxonica
Market Capitalisation £60M
© Paul Atherton 2006
Oxonica
• Panmure Gordon 12 May 2006
– Initiates coverage
– Analyst issues BUY recommendation
– Price target £2.00
© Paul Atherton 2006
Observations
• Few ‘pure play’ publicly quoted nanotech
companies.
• ‘Profound’ nanotech companies have still to
reach the market
• Valuations can be very high!!!
• Revenues are very low!!
• Big companies working hard on nanotech
© Paul Atherton 2006
• L’Oreal - >200 patents on nanoparticles
© Paul Atherton 2006
© Paul Atherton 2006
How will nanotech be
commercialised ?
• Nanotechnology is mainly about processes
• Licensing of process technology to large
companies
• University spin outs – product based
• Transfer of trained people
• Long slow steady quiet process
• Technology commercialisation is a slow
process – nanotech is pretty slow
• Only start ups call themselves nanotech
companies
© Paul Atherton 2006
Investment Areas
• Materials and Manufacturing
– Lighter stronger smarter materials, catalysts
– Smart packaging, fuel cells and batteries
• Electronics and IT
– Solar cells, semiconductors and storage, displays,
RFIDS
– Printable electronics (ink jet techniques)
– Smart dust and ambient intelligence
• Healthcare
– Regenerative medicine
• Artificial bone and skin
– Drug Discovery
– Diagnostics – point of care
– Embedded devices (implants, monitors, pumps, pacemakers,
cochlear implants)
– Personalised medicine
© Paul Atherton 2006
Thank You
© Paul Atherton 2006