1. Revenue%Streams%
Lean%Launchpad:%TherapeuHcs%
Value Propositions
%
Lean Launchpad: Digital Health
UCSF%Entrepreneurship%Center%
October%29,%2013%
UCSF Entrepreneurship Center
%
October 1, 2013
Karl%Handelsman%
Abhas Gupta, MD
Codon%Capital%%
Mohr Davidow Ventures
@abhasguptamd
Karl@codoncapital.com%
Weekly%Office%Hours:%4:30<5:30%before%class%

2. Revenue%Streams%
Last%
Week%
Value Propositions
Lean Launchpad: Digital Health
UCSF Entrepreneurship Center
October 1, 2013
This%
Week%
Abhas Gupta, MD
Now$that$you$have$iden/fied$the$matched$your$innova/on$to$
Mohr Davidow Ventures
@abhasguptamd
the$customer$needs,$how$do$you$harvest$value$to$build$a$
business$case$to$a3ract$the$talented$people,$best$resources,$
and$capital$to$build$an$extraordinary$company?$

3. Value Propositions
Lean Launchpad: Digital Health
UCSF Entrepreneurship Center
October 1, 2013
Business%Development%Examples%
REVENUE&STREAMS&
Abhas Gupta, MD
Mohr Davidow Ventures
@abhasguptamd

4. Slicing%the%Salami/Peeling%the%Onion%
Partner$one$program$to$fund$development$of$retained$applica/ons$
Value Propositions
Lean Launchpad: Digital Health
UCSF Entrepreneurship Center
October 1, 2013
Develop%Core%Technology%Across%MulHple%TherapeuHc%ApplicaHons%
%example:%CRISPR%for%Crops,%Sickle%Cell,%CCR5%(AIDs)%
%
%
%Tularik%was%able%to%individually%partner%Asia,%Europe,%and%US%rights%
Abhas Gupta, MD
%
%
%Syrrx%PPD%collaboraHon%followed%by%Takeda%acquisiHon%
Mohr Davidow Ventures
%
%
%Codexis%spinout%of%Maxygen%
@abhasguptamd
%
%
% Field&Defini3on&Cri3cal,&Partners&Need&Certainty&Other&Uses&Will&Not&Tank&
%%
Their&Program&(problem&if&molecule&is&iden3cal)&
%

5. Grants,%FoundaHons,%DARPA%
Non;dilu/ve$money$progresses$the$goal$
Value Propositions
Lean Launchpad: Digital Health
UCSF Entrepreneurship Center
October 1, 2013
Develop%Core%Technology%or%Product%MeeHng%External%OrganizaHonal%Needs%
%examples:% %$40M%Gates%FoundaHon%Prior%To%Amyris%Series%A%
Abhas Gupta, MD
%
%
%
%$15M%Series%A%Inviragen%Matched%With%$30M%Vaccine%Grants/Contracts%
Mohr Davidow Ventures
%
%
%
%Tetraphase:%Large%Government%Grants%for%Anthrax%AnHbioHc%
@abhasguptamd
%
%
%
%%
Does&Mee3ng&Grant&Goals&Distract&or&Advance&Your&&Company&Goals?&
%

6. Strategic%Deals%at%MulHple%Stages%
Partnerships$Pull$Your$Company$Toward$U/lity$and$Credibility&
$
Value Propositions
Lean Launchpad: Digital Health
UCSF Entrepreneurship Center
October 1, 2013
Abhas Gupta, MD
Mohr Davidow Ventures
@abhasguptamd
Need&To&Iden3fy&Partners&Strategic&Need&To&Get&Value,&CraO&Partnership&&
Mee3ng&Your&Strategic&Need&to&Retain&Value&of&Some&Future&Field&

7. Strategic%Deals%at%MulHple%Stages%
Partnerships$Pull$Your$Company$Toward$U/lity$and$Credibility&
$
CEO%Fritz%French%thinks%the%publicaHon%of%the%Carmel%company’s%research%on%obesity<
fighHng%compounds%by%the%major%scienHfic%journal%*Nature%Chemical%Biology%will%grab%
afenHon%of%scienHsts%and%other%drug%companies%around%the%world.“It%gets%us%more%
exposure%to%large%pharma%companies%collaboraHng%down%the%road%—%on%other%things,”%
French%said.%The%*Nature%arHcle%involved%Marcadia’s%collaboraHve%work%with%New%
Jersey<based%drug%giant%Merck%&%Co.%Inc.%But%the%Carmel<based%biotech%firm%has%
several%other%obesity%and%diabetes<fighHng%drugs%in%its%pipeline.<%2009%
Value Propositions
Lean Launchpad: Digital Health
UCSF Entrepreneurship Center
Marcadia%Biotech%Inc.,%the%Carmel%biotech%firm%driven%by%the%science%of%a%former%
October 1, 2013
scienHst%at%Eli%Lilly%and%Co.,%has%signed%a%license%and%development%agreement%with%
Indianapolis<based%Lilly,%the%companies%announced%Monday.%–%June%2010%
Roche%revealed%the%$289.6%million%price%tag%it%paid%to%acquire%diabetes%company%
Marcadia%Biotech%Inc.%The%pharma%originally%wanted%to%license%Marcadia's%first<in<class%
dual%GLP<1/GIP%receptor%agonist,%but%ended%up%buying%the%company%to%gain%access%to%a%
Abhas Gupta, MD
research%collaboraHon%with%Indiana%University,%where%all%the%biotech's%syntheHc%pepHdes%
Mohr Davidow Ventures
were%discovered.%–Dec%2010%
@abhasguptamd
Culture/Talent&Must&Deliver&and&Outperform&Partners&Metrics&

8. Business%Models%
Structure$and$Stage$
Clinical%Data%
+&5&
Exclusive%
Non<Exclusive%
Value Propositions
Preclinical%Candidate%
Lean Launchpad: Digital Health
UCSF Entrepreneurship Center
October 1, 2013
Karl’s%corollary%to%“The%most%complicated%ideas%in%business%are%simpler%than%easy%science”:%
%%
Abhas Gupta, MD
You&know&you&have&found&a&way&to&create&value&for&a&partner&when&the&business&model&
%
Mohr Davidow Ventures
%
% creates&huge&incen3ves&(oOen&nonTsymetric)&for&all&the&players.&
%
%%
@abhasguptamd
%
Strategy&is&Driven&by&Opportunity&and&Value&Crea3on&Not&Structure&

9. Remember%
• Biotech%startups%are%bought%not%sold%
• Strategic%value%meets%their%future%goals%
– NPV%based%on%past%metrics%is%irrelevant%
Value Propositions
• AucHons/Bidding%Wars/Walking%Away%
Lean Launchpad: Digital Health
– Build%Data,%Build%RelaHonships,%Act%Ethically%
UCSF Entrepreneurship Center
October 1, 2013
– Any%“tacHcs”%must%match%the%situaHon%
• The%sHngy%person%pays%the%most%
Abhas Gupta, MD
• It’s%never%over%Hll%the%money%is%wired%
Mohr Davidow Ventures
@abhasguptamd
Our%team%has%broad%deal<making%capabiliHes%with%the%flexibility%to%adapt%
the%deal%structures%to%the%science.%%
%
%
%–%outbound%communicaHon%from%pharma%BD%team%

10. Value Propositions
Lean Launchpad: Digital Health
UCSF Entrepreneurship Center
October 1, 2013
My%Contact:%Put%LLP%in%Subject%Line%for%extra%points%%
KARL@CODONCAPITAL.COM&
Abhas Gupta, MD
Mohr Davidow Ventures
@abhasguptamd