Transcript Document

KPCB Pandemic and Biodefense Fund
»Thomas P Monath MD
Copyright 2006, All rights reserved. Duplication or redistribution of the contents of this presentation are prohibited without prior written authorization.
PPB Fund Mission & Goals
Invest in innovations to address gaps in global
pandemic preparedness
» Rapid “point of care” diagnostics
» Vaccine science and production
» Therapeutic drug discovery and development
» Platform and broad spectrum technologies
Investment Criteria & Goals
» Back technology platforms applicable across multiple diseases
» Build sustainable companies in sizable markets
» Invest in companies with suites of products (no single customer)
» Catalyze innovation in treating & managing emerging infectious diseases
beyond influenza
» Double-bottom line thesis
Copyright 2006, All rights reserved. Duplication or redistribution of the contents of this presentation are prohibited without prior written authorization.
2
The Journey
2H05
2006
2007
2008
»SAG Summit
»Boil the ocean
»Identify
preparedness
gaps
»Build the
network
»Develop
strategic map
»Raise fund
»Build KPCB
team
»Screen >100
Companies
»Invest based on
strategic map
»Passed BARDA
»Screen 100 more
companies
»Build companies
& management
»Secured nondilutive funding
»Expand & refocus
strategy
»Build companies
& management
»More non-dilutive
funding
»Screen fewer
companies
»Invest to fill gaps
Anza
»Hire CEOs: HX,
BRCX, Xcellerex
»China Strategy
Copyright 2006, All rights reserved. Duplication or redistribution of the contents of this presentation are prohibited without prior written authorization.
»Hire CEOs: 3-V,
Juvaris
3
Portfolio Goals September 2006
Category
Innovations Needed
(Sept ’06)
Co’s
Evaluated
(Sept ’06)
Potential
Investment
or MTI
Forecast
Portfolio Mix
(Sept ’06)
Vaccines,
Adjuvants &
Enabling
Technology
-Cell production
-Adjuvant
-Broad spectrum
-Platforms
40
- Xcellerex
- Novavax
- Juvaris
5
Antivirals,
therapeutics
-Better drugs (efficacy &
broad spectrum)
-New Mechanisms
-Cytokine storm
30
- BioCryst
- Stealth
3
Diagnostics
-Rapid diagnostic
-Molecular Dx
30
- HX Dx
2
Antibodies
-Combination therapies
-Conserved antigens
-Polyclonal
10
- Spaltudaq
1
Surveillance,
Masks,
Ventilators
-Early detection
-Ventilators
-Masks
10
-Voxiva
1
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4
Learning & Strategic Expansion
» Platforms and broad-spectrum technologies favored
» Biodefense
» Not primary focus of investment
» Important secondary programs, stabilization, POC, no-dilutive funding
» Surveillance
» No investment case
» Antibody technologies– none found
» Monoclonal escape variants
» Flu genetic plasticity
» Uncertain monetization, ROI
» Cytokine storm– none found
» Learning ignited expansion of strategy to other technology gaps in
emerging infectious disease with large markets
» Hospital Acquired Infections
» Chronic infectious agents
Copyright 2006, All rights reserved. Duplication or redistribution of the contents of this presentation are prohibited without prior written authorization.
5
Major Gaps in Flu (and Biodefense) --What should
we invest in?
BROAD-SPECTRUM COUNTERMEASURES
» Vaccine platform technologies, plug-and-play
» Multivalent and “universal” vaccines
» Broad-spectrum and novel-class antibacterial drugs
» Broad-spectrum and novel-class antiviral drugs
» Human polyclonal antibody technologies (multivalent)
» Immune modulation for broad protection and treatment
» Immune agonists (innate immunity, adjuvants)
» Immune antagonists (cytokine storm, inflammation, oxidative stress )
»Improved delivery systems
» Oral, skin, self-administered
» Flexible, affordable and faster manufacturing systems
» Vaccines, antibodies
» POC diagnostics and surveillance tools
» Patient care (ventilators)
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6
Investment Progress & Expanded Portfolio
Co’s
Evaluated
to Date
Investment
or MTI
Expected
Portfolio
Sept ’06
Portfolio
Mix
Dec ’07
Category
Innovations Needed
Vaccines,
Adjuvants,
and Enabling
Technologies
• Recombinant production
• Adjuvants
• Broad spectrum
• High potency
• Hospital-acquired
infections
• Therapeutic vaccines
• Other high-value vaccines
75+
• Xcellerex
• Novavax
• Juvaris
• Anza
• Novadigm
5
5
Antivirals,
Antibiotics
• Better drugs (resistance,
efficacy & broad spectrum)
• New Mechanisms
40+
• BioCryst
• Stealth
3
2
Diagnostics
• Rapid diagnostic
• Molecular Dx
35+
• HX Dx
2
1
Other
Preparedness
Gaps
• Ventilator innovation
• Antimicrobial Masks
• Enterprise Preparedness
35+
• Breathe
• SafeLife
• Preparis
1-2
1-2
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7
Indications and platform breadth
Category
Investment
Vaccines, Adjuvants, and
Enabling Technologies
• Xcellerex
• Novavax
• Juvaris
• Anza
• Novadigm
Antivirals, Antibiotics
• BioCryst
• Stealth
•Trius
Diagnostics
• HX Dx
Other Preparedness Gaps
• Breathe
• SafeLife
• Preparis
Indications
Biomanufacturing
VLPs (Flu-RSV-Zoster)
Adjuvant, immunotherapy, biodefense
Bacterial vector, HCV, Biodefense
MRSA, Candida
Peramivir
Host targets antivirals
Novel broad antibiotic, MRSA
POC Diagnostics
Miniaturized, affordable respirator
Improved masks
Enterprise preparedness
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8
Company Building in 2007
» Non-dilutive Financing of $157M
» BioCryst $102M
» Xcellerex $27M
» HX Dx $12M
» Juvaris $11.5M
» Anza $1.6M
» Novavax $1.5M
» Stealth antiviral $1.3M
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What We Have Learned
»Vaccines – Proof in seasonal flu necessary; platform
technologies key; “holy grail” of universal flu vaccine--still too early
to tell
»Adjuvants – Important for supply & efficacy
»Diagnostics – Point of care is key; patent landscape messy
»Antiviral therapeutics – Few novel opportunities, so incubated
our own
»Antibiotics- Major need for improved antibiotics, antimicrobial
resistance increasing
»Manufacturing – Commitment to global/local supply
»Surveillance – Non-profit and government activity
»Biodefense – limited investment case, secondary programs
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10
Our Methods
»Theme days
» Antibody Day, Diagnostics Day, Adeno Day
» Side-by-side comparison with technical advisors
» Built network (Scott Layne SAB HX)
»Build a great team
» Weekly meetings & formal updates
»VC Partnering, leverage the investment
» $200M$500M
» BioCryst - Baker Investments, TPG
» Stealth (antiviral) – The Column Group
» Xcellerex – Vantage Point
» Anza – Versant & Sofinnova
» Novadigm - Domain
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11
Future Steps
»Build portfolio companies and launch products
» Bringing meaningful therapies to patients – top priority
» Leveraging product platforms across new indications
» Facilitate networking across the portfolio (i.e. China, Xcellerex-Novavax)
» Optimizing non-dilutive financing (HHS, BARDA, NGO)
» Continue to build management teams and drive clinical success
»Balancing the portfolio
» Invest later stage – near-term revenue opportunities (within 12 months)
» Opportunistic investment in technologies to address remaining gaps
» Expand disease focus to include other emerging infectious disease
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Funding NEIDL
» Direct funding from grants and contracts
» Partnering with industry
» Key to NIAID translational research and BARDA advanced development contracts
» NEIDL offers unique facilities and core competencies
» Difficult for industry to find USG collaborators, competition for rare resources
» Direct funding will depend on commercial applications
» Biotech industry dependent on private financing
» Costs of product development are very high
» Mitigate risk from non-dilutive funding sources very attractive to VCs
»Biodefense as an area for investment
» Problems: Bubble revenues, lower return on investment, single customer
» Platforms, broad spectrum and commercial indications are key
» Can be a stabilizing factor, contribute to overhead costs
» Can help to build core competencies
» Can obtain POC for commercial technologies
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Key factors attractive to investors
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Commercial opportunity, market size
Novel, disruptive, not fast follower
Clear differentiation from competition
Strong IP
Opportunity for non-dilutive funding to mitigate risk
Strong preclinical surrogates for efficacy
Great team
Clear product development plans and value creation
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NEIDL Opportunity
Product development
» Internal R&D, discovery, new proprietary technology
» Selective in licensing
» Collaborations, partnerships with industry
Services
»Serological testing, reagents
»Analytical development
»Animal models, unique pathophysiological measurements
»Preclinical development
»NEIDL offers unique facilities and core competencies
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