This document summarizes key points from Dr. Glenn Crocker's keynote address on the 2013 UK Life Sciences start-up environment. It notes that while start-up activity and investment in the UK have been declining in recent years, there are signs that large pharmaceutical companies are increasingly focusing on and funding early-stage startups. However, structural challenges around a shortage of experienced investors and difficulties companies face in execution still remain barriers to growth. The talk calls for longer-term, strategic funding from corporations, universities and philanthropic sources to help startups in their early stages and break the cycle of cautious investing.
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Exclusive overview of 2013 UK Life Sciences Start-up Environment: The Fourth Annual Review of Life Sciences Start-up Companies
1. 14.50 â 15.10 â Keynote Address
Exclusive overview of 2013 UK Life Sciences
Start-up Environment: The Fourth Annual
Review of Life Sciences Start-up Companies
Dr. Glenn Crocker
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7. Pharma Incubates
Bayer- Colaborator- San Franscisco
GSK- Stevenage Biocatalyst
J&J- London, Boston, California, Shanghai
â˘âŻ Merck Serono- Israel
But others quietly
stopped:
â˘âŻ Pfizer
â˘âŻ Biogen-Idec
8. No more âIâ in IP?
Lead discovery- âŹ80M 5 years
Autism- ÂŁ25M 5 years
9. Funding innovation
GSK- $50M into $250M Sanderling west coast USA early stage fund
GSK- ÂŁ265M- Avalon start-up fund- San Diego
Lilly-Roche- Indiana Research Institute - $50M start-up funding
Merck KGaA- âŹ60M addition to CV fund
10. What does this mean for early
stage companies?
Focus on start-ups- the next generation and a sign of things to come
BioCity UK Life Science Start-up review
11. Start-up activity declining in UK
UK
 Life
 Science
 Start-Ââups
Â
320
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315
Â
310
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305
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300
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295
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290
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285
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280
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275
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2005-Ââ2009
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2006-Ââ2010
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2007-Ââ2011
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2008-Ââ2012
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Number of life science companies formed in 5 year period
12. University Spin-outs
University
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12
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10
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8
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6
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4
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2
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LS Research
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â˘âŻ 5 of top 10 universities
for life science spinouts are Scottish
â˘âŻ Correlation between
research base and
spin-out activity
remains
13. University spin out activity
University spin-out activity correlates to quality and volume of research;
Spreading funding more thinly and driving academics towards
commercial collaborations reduces quality and volume of
fundamental research;
Therefore, current policies will continue to act against spin-out activity;
14. Investment in Life science startups
UK
 Life
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 Start-Ââup
 Investment
Â
410
Â
400
Â
390
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Amount invested in
the period in startups created during
that period
380
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10 companies raised ÂŁ207M ($330
370
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360
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350
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340
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330
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320
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310
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2005-Ââ2009
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2006-Ââ2010
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2008-Ââ2012
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Atlas raised $265 million for its 9th fund, committing to focus on supporting early-stage
startups in life sciences and tech. The fund is expected to fuel more than 15 new biotech
startups
15. Investment Pool Growing
Welsh Life Science Fund- ÂŁ50-100M
Rock Spring Scottish Fund- ÂŁ50M
IP Group- ÂŁ30M
Fusion IP - ÂŁ20M
Imperial Innovations â ÂŁ30M
Cambridge University- ÂŁ50M
Nottingham Tech Fund - ÂŁ40M
16. Structural Investment challenges
remain
Ăď⯠Shortage of confident
Ăď⯠investors in UK
ĂďâŻLack
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ĂďâŻCompanies
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recruit
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 and
 execute
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plan
 eďŹecDvely
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ĂďâŻCompanies
 fail
 to
 deliver
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ĂďâŻInvestor
 becomes
Â
Â
 more
Â
 cauDous
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IPO window
opening;
ĂďâŻMore naĂŻve investors
drawn in;
ĂďâŻPoor investment
decisions or
investment at wrong
stage
ĂďâŻPull away
17. How do we break the cycle?
-Early stage funding = corporate, university/public, philanthrop
-longer horizons, strategic investing
-continue to build this base
-VC steps in later
18. The world turned upside down
Large pharma downsizing and moving out
â⯠Small
 pharma/bio
 moving
 in
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â⯠Leveraging
 past
 spend-Ââ
 increasing
 capital
 eďŹďŹciency
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Opening research doors
Pharma getting ever closer to early stage
â⯠Academic
 collaboraDons
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â⯠Venturing
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Impact yet to be felt for start-ups- but opportunities abound