GUEST EDITORIAL
	Perspectives from the Street: Life after Enron in the World of Biotech Stelios Papadopoulos
	FEATURE ARTICLES
	Genomic and Enabling Platform Technology Companies In Transition Raymond S. Fersko and Ebun S. Garner
	Vendors and Suppliers as a Source of Capital For Biotechnology Companies: Opportunities and Pitfalls Gary N. Sutton and Eileen Smith Ewing
	Financing Biotechnology Companies: Is Your Investment Safe? Philip W. Fiscus
	Key Factors in the Valuation of Biotechnology Companies Adrian Ciocoi
	SPECIAL SEGMENT
	Massachusetts Biotechnology Council (MBC): Strong and Growing Janice Bourque
	An Address to the Massachusetts Biotechnology Sector Governor Jane Swift
	BIOCOLUMNS
	Finance The Perfect Series B Financing: Steps to Take Before Meeting with VCs Angela Rossetti
	Federal Circuit University Research and the Experimental Use Exception to Patent Infringement Edward R. Ergenzinger Jr. and W. Murray Spruill
	BioConversations A Thought Leader Interview with Robert Mashal, MD Robin JR Blatt
	Venture Capital Beware the Clawback Howard S. Rosenblum
	Strategy Running On Empty Stephen T. Mears
	BioDefense Training for Strategic Decision-Making Post 9–11 Hilda Blanco
	International Financing Mechanisms for Biotechnology Start-Up Companies in Hong Kong David Richardson

Click to buy Guest Editorial (3 pages)

Perspectives from the Street: Life after Enron in the World of Biotech Stelios Papadopoulos

Abstract: At another time, the Enron affair, complete with the parallel mini-dramas of its multiple protagonists, could have been another transient, headline-grabbing business failure and would have amounted to nothing more than the subject of cocktail party chatter. Not this time. Enron will be with us for quite some time and its implications will be far reaching, stretching all the way to the our cozy little world of biotechnology.

©2002 by The Journal of BioLaw & Business. All Rights Reserved.

Back to Top

Click to buy Feature Article (12 pages)

Genomic and Enabling Platform Technology Companies In Transition Raymond S. Fersko and Ebun S. Garner

Abstract: This article discusses the shifting focus of genomics and platform technology companies from concentrating solely on licensing tool technologies towards becoming true drug and product developers. The article examines this issue in the context of public policy, the licensing of research tools, and shifting paradigms in drug development as a result of genomics.

©2002 by The Journal of BioLaw & Business. All Rights Reserved.

Back to Top

Abstract: The biotechnology company in need of an infusion of new capital should look not only to traditional venture investors, but also to its natural allies in related industries - suppliers and vendors whose own economic success depends on the success of their customers. Nonetheless, the parties must bear in mind that raising capital while cementing a supplier relationship raises significant potential legal issues for both parties. Though conceptually similar in nature and structure to equity collaborations between biotechs and pharmas, this article describes the unique opportunities and pitfalls associated with this form of transaction.

©2002 by The Journal of BioLaw & Business. All Rights Reserved.

Back to Top

Abstract: Since the dotcom bubble burst, venture capital (VC) firms have been looking for new places to put their money, and biotechnology companies are one of the beneficiaries. The sector saw the largest gains in terms of percentage of investment, rising to 8.2 percent in 2001 from 3.5 percent in 2000. According to recent surveys, it was the second best year in biotech financing. Today's renewed trend toward investing in this sector is a welcome one, especially in a business where the cost of developing a drug averages $810 million. However, a key question is how can VC firms make sure their investment in a biotech company is a safe one? This article addresses risk management issues and solutions for investors in the biotechnology and life sciences sector.

©2002 by The Journal of BioLaw & Business. All Rights Reserved.

Back to Top

Abstract: Chief financial officers, venture capitalists, financial analysts, and other advisers who provide services in the biotech industry should be aware of the main factors affecting the value of companies operating in the biotechnology industry, and capable of assessing the presence or absence of key factors at a particular company; in addition, they should be able to quantify the impact that identified or absent factors may have on the value of a certain biotech company. The purpose of this article is to present an overview of the valuation methodologies employed for biotechnology companies found in the early-stages of development as well as for developed companies.

©2002 by The Journal of BioLaw & Business. All Rights Reserved.

Back to Top

Abstract: In April (2002) the Massachusetts Biotechnology Council (MBC) convened its annual meeting bringing together members of industry, academia, government and the media. This article provides an overview of the event as well as an update on activities and agenda of the MBC.

©2002 by The Journal of BioLaw & Business. All Rights Reserved.

Back to Top

Abstract: It was Socrates who taught us that Science seeks the meaning of prolonging, increasing, facilitating and amplifying life -- or making it tolerable, and acceptable. As pioneers in biotechnology, Massachusetts has made this its mission for more than 50 years…From the first genetically-engineered blood clotting factor, to biotech drugs for cancer, these achievements are indeed remarkable. (Based on Remarks Presented at the Massachusetts Biotechnology Council (MBC) Annual Meeting (April 23, 2002) in Boston, Massachusetts.)

©2002 by The Journal of BioLaw & Business. All Rights Reserved.

Back to Top

Abstract: Current market conditions unfortunately bear out the fact that the "Perfect Series B" is hard to find. In fact, the percentage of completed Series B financings for venture-backed companies trended sharply down last year, averaging about 9% of all companies seeking funding in 2001, down from 22% in the fourth quarter of 1999. This distinct downward trend provides example of not only the irrational exuberance that peaked in 1999, but also defines the current caution. Although there is no "perfect" Series B either in presentation, valuation or format, it is true that there are some characteristics of early stage companies raising Series B financing that can make for a strong offering. This article defines those characteristics and provide examples of successful Series B financings that readers may find useful in their quest for funding.

©2002 by The Journal of BioLaw & Business. All Rights Reserved.

Back to Top

Abstract: Many university officials, researchers, and some attorneys have interpreted the experimental use exception to patent infringement as providing protection for most research activities that are conducted within a university setting and that are not tied to commercialization efforts. Not so, according to the recent decision by the Federal Circuit Court of Appeals. In Madey v. Duke Univ., the Federal Circuit held that even where university research projects have arguably no commercial application, these projects further the institution's legitimate business objectives, including educating and enlightening students and faculty participating in these projects, and are therefore not eligible for the experimental use exception to patent infringement. This article provides a brief discussion of the historical development of the experimental use exception to patent infringement as well as the recent holding in Madey v. Duke Univ. as it relates to the experimental use exception. In addition, a discussion of the implications of this holding for biological university research is provided.

©2002 by The Journal of BioLaw & Business. All Rights Reserved.

Back to Top

Abstract: .A physician and venture capitalist at Boston Millennia Partners talks about investment trends in the biotechnology and life science sector and how the current economy requires entrepreneurs and VCs to revise and manage expectations. Robert Mashal, MD, is a Partner at Boston Millennia Partners. His work focuses on Life Sciences opportunities, primarily drug discovery and development and enabling technologies for the drug development process, including genomics, systems biology, and chemical genomics.

©2002 by The Journal of BioLaw & Business. All Rights Reserved.

Back to Top

Abstract: As private equity fund managers have taken pause over the past several months to assess their portfolios and the projected performance of their funds, recent valuation declines have given them reason for great concern. In particular, some fund managers have focused on the size of early carried interest distributions made by their funds and the prospects of triggering the so-called "clawback" provisions contained in the governing limited partnership agreement.

©2002 by The Journal of BioLaw & Business. All Rights Reserved.

Back to Top

Abstract: By nearly all measures, the second half of the 1990s was a tremendous period for the venture capital industry. Now, with the dramatic changes in the public and private investing environments, many funds formed in the late 1990s are facing shortages of cash that may hinder their ability to continue to finance their existing portfolio companies. These portfolio companies are expected to require significant amounts of follow-on financing from existing venture investors because of the weak mezzanine financing environment and the current unavailability of public equity financing. This article addresses the issues and possible alternatives that fund managers can consider to address liquidity problems.

©2002 by The Journal of BioLaw & Business. All Rights Reserved.

Back to Top

Abstract: This article focuses on the heightened need for training in strategic decision-making for leaders in the emergency response and planning community post 9-11. Although emergency management has a tradition of strategic planning, the Federal Emergency Management Agency's (FEMA's) conceptual framework for dealing with disasters has several assumptions that are violated by terrorist activities. Specifically this paper calls for three new strategic thrusts in emergency planning: a) ongoing monitoring of situations requiring new technology, and coordination and communication systems; b) a more dynamic, game-theoretic approach that utilizes simulation and modeling; and, c) greater emphasis on training for decision-making skills and judgment that employs recent research findings in naturalistic decision-making. Higher education training in decision-making skills can benefit from recent findings in naturalistic decision making that indicate we can quicken the pace of acquiring decision making skills by "learning how experts learn" and instruction in how to develop back-up models for decision-making.

©2002 by The Journal of BioLaw & Business. All Rights Reserved.

Back to Top

Abstract: In the last few years, the Hong Kong government has increased its efforts to develop the biotechnology industry in Hong Kong. Whether a local biotech company is relatively new in the industry or has been around for a few years, there are a number of ways it can raise funds to expand and develop its business. The Hong Kong government has set-up various funds to provide financial support to local biotech companies. Such companies can also enlist the support of private investors and venture capitalists if suitable investors can be found. However, if a biotech company requires substantial financial support, it can consider listing on the General Enterprise Market ("GEM"), the second board of the Hong Kong Stock Exchange. In comparison to the Main Board of the Hong Kong Stock Exchange, the less stringent listing requirements of GEM makes it more attractive for less established companies to raise funds.

©2002 by The Journal of BioLaw & Business. All Rights Reserved.

Back to Top