L2 Biotech as a Business Flashcards
Karl Ereky and 1919 Hungary
He first used the term biotechnology in his book published in 1919. His book deals with animal production using sugar beets as a food source.
“Biotechnology of meat, fat and milk production”
1919 Hungary
- end of world war 1
- wide spread famine, war shortages
- Lots of working aged men killed, can’t farm/produce food => biotechnology
Using science to try and serve commercial purposes
Fattening Centres
- 100,000 pigs/yr converted sugar beets into lard and sausages
- Ereky referred to pigs as biotechnology machines
Biotechnology - it’s not just about technology
Science => Utilisation => Society
Are we in a biotechnology revolution?
Genetic engineering ~40 ya
“Classical” biotech ~150 ya (pasteurising )
“Ancient” biotech ~10,000 ya (fermentation)
Biotech revolutions are an ongoing part of human history
How the government saw scientific research
see onenote diagram
- missing link between science “capital” and science-based enterprises
The Bayh-Dole Act
- passed in 1980
- its purpose was to encourage utilisation of inventions produced under US govt funding (e.g. university research) by giving clear IP rights to universities
result = patenting of uni research
Who owns new knowledge?
- Government steps out => university owns in entirely
- In Aus, no equivalent of the Bayh-Dole act
- At unimelb, if a staff produces an idea, the university owns it
- At unimelb, as a student, we own our ideas
Patent vs Licensing
A patent allows the patent holder to stop others from building his invention. A license is an agreement between two parties. The licensor allows the licensee to do something (use the software, build an invention). For example, a patent holder may license his patents to others so they can practice his invention.
Venture capitalist
A venture capitalist is an investor who either provides capital to startup ventures or supports small companies that wish to expand but do not have access to equities markets.
Shares
Shares representownershipof a company. When an individual buys shares in your company, they become one of its owners. Shareholders choose who runs a company and are involved in makingkey decisions, such as whether a business should be sold.
In commercial terms, they Genentech weren’t a very successful company BUT their patent was valued highly - why?
sandwich shop analogy
income - expenditure
- less income than expenditure BUT people had invested in the potential/future of the company/their investment
- they think that in the long-term they’ll get big returns even through the company is in a deficit rn
The basic biotech strategy 1
- biotech is driven by investment
investment
time and money spent now in the hope of a future benefit (return on investment = ROI)
The basic biotech strategy 2
see onenote diagram
IP generation is central to a biotech business and the value of a company is determined by the value of its IP
The basic biotech strategy 3
see diagram
Why those negative cash flow ~320 companies in the US exist
- Investment now for future returns
- Hoping for high risk high reward
- patient investors
How government funds university research
see onenote diagram
Block grant
A Block Grant is money that is awarded, or granted, by a national government to state and local officials. Block grants are earmarked for a specific project or projects, and typically there are guidelines as to how the money can be spent
