1. Johns Hopkins Technology Transfer 1 Achieve Success By Taking a Business Approach to Technology Transfer Wesley D. Blakeslee Executive Director Johns Hopkins Technology Transfer 410-516-8300 wdb@jhu.edu

2. What Does It Mean – A Business Minded Approach Understanding that operating the tech transfer office is running a business Understanding that operating the tech transfer office is running a business Adopting the attitudes, systems, analyses and practices of successful businesses Adopting the attitudes, systems, analyses and practices of successful businesses KNOW THE NUMBERS KNOW THE NUMBERS 2

3. JHTT $5.1 Million Operating Budget $5.1 Million Operating Budget $6.6 Million Patent Spend $6.6 Million Patent Spend $12.2 Million Earnings 1 $12.2 Million Earnings 1 $3.6 Million Patent Reimbursement $3.6 Million Patent Reimbursement $4.1 Million Net Profit $4.1 Million Net Profit 1. Not including equity sales 3

4. Writing About It Is Not Doing It SWOT analysis SWOT analysis Business Plan Business Plan Operations Manual Operations Manual 4

5. Doing It Last 3 years created the best and most useful data and financial management system anywhere Last 3 years created the best and most useful data and financial management system anywhere Result: Financial and metric budgeting and predictions have been data-based and dead on last 2 years Result: Financial and metric budgeting and predictions have been data-based and dead on last 2 years 5

6. Understand Your Business and Business Focus Is it: Faculty Service Faculty Service Revenue Production Revenue Production Public Service – Advance Technologies For Public Benefit Public Service – Advance Technologies For Public Benefit Service /Accessibility to Industry Service /Accessibility to Industry Economic Development Economic Development 6

7. Its All Of Those And Maybe Others The Driving Force: Extraordinary Results with Ordinary People The Driving Force: Extraordinary Results with Ordinary People Peter Schutz Peter Schutz 7

8. So, What Do Businesses Do, How Do They Operate? 8

9. Common Business Focus Human Resources Human Resources Financials Financials Business Metrics Business Metrics Data Mining And Analysis Data Mining And Analysis Supply Chain Supply Chain Branding Branding Marketing Marketing Sales Sales 9

10. Human Resources People – Your Most Important Asset Old GE Slogan: "People are our most important product" Old GE Slogan: "People are our most important product" "Good to Great"; Jim Collins: "The Right People" "Good to Great"; Jim Collins: "The Right People" Get the right people on the busGet the right people on the bus Get the wrong people off the busGet the wrong people off the bus 10

11. Know Your People Strengths and weaknesses Strengths and weaknesses Desires, likes and dislikes Desires, likes and dislikes Source of information Source of information 11

12. Motivate Your People People don't care what you know, they want to know how much you care People don't care what you know, they want to know how much you care Can't win with a team "busting rocks" need your team "building a temple" Can't win with a team "busting rocks" need your team "building a temple" 12

13. Incentive Compensation Very necessary at JHTT Very necessary at JHTT Keep the best people Keep the best people Attract new people Attract new people 13

14. Financials Financials Income Income Expenses Expenses Office operating expensesOffice operating expenses Patent costsPatent costs Accounts Receivable Accounts Receivable Licensee Obligations Licensee Obligations 14

15. Financials – JHTT specific Patent backlog – 500 cases burning $$, w/o active marketing or sales Patent backlog – 500 cases burning $$, w/o active marketing or sales One effect of continuous understaffingOne effect of continuous understaffing Patent costs – reduced firms, negotiated substantial fee reductions and $$ caps per tasks Patent costs – reduced firms, negotiated substantial fee reductions and $$ caps per tasks Created first class financial system for accounts receivable, licensee obligations due Created first class financial system for accounts receivable, licensee obligations due 15

16. Business Metrics If you don't track it you can't measure or predict it If you don't track it you can't measure or predict it If you can't measure or predict it you can't improve it If you can't measure or predict it you can't improve it If you don't track, measure or predict it, you can't understand it If you don't track, measure or predict it, you can't understand it If you don't understand it you can't sell it If you don't understand it you can't sell it 16

17. 17 Business Metrics Upfront $$$ Upfront $$$ Total Contract Value Total Contract Value Age to License Age to License Conversion % Conversion % # Licenses/Licensing Associate # Licenses/Licensing Associate

18. Data Mining and Analysis 18 Upfront $$$ - Predict revenues Upfront $$$ - Predict revenues Total Contract Value – demonstrate long term value of JHTT; return/$$ Total Contract Value – demonstrate long term value of JHTT; return/$$ Age to License – Patent decisions Age to License – Patent decisions Conversion % - Potential licenses Conversion % - Potential licenses # Licenses/Licensing Associate – staffing needed # Licenses/Licensing Associate – staffing needed

19. Supply Chain Need to increase # of disclosures Need to increase # of disclosures Metrics predict JHU should be about 1 disclosure per $3.25 – 3.5 Million in research dollarsMetrics predict JHU should be about 1 disclosure per $3.25 – 3.5 Million in research dollars 19

20. Supply Chain Faculty Service Faculty Service Immediate response to DisclosureImmediate response to Disclosure Face to face w/in 4 weeksFace to face w/in 4 weeks Online Disclosure submissionOnline Disclosure submission Faculty portal access to invention-specific info on lineFaculty portal access to invention-specific info on line Programs, programs, programsPrograms, programs, programs Invention to Venture Invention to Venture Entrepreneur's Boot Camp Entrepreneur's Boot Camp Company meetings and events Company meetings and events Vine and Venture series Vine and Venture series 20

21. Branding Before – Internal: Before – Internal: Hard to deal withHard to deal with Non-communicative/secretiveNon-communicative/secretive Couldn't get technology outCouldn't get technology out Questionable value addedQuestionable value added Process more trouble than it was worthProcess more trouble than it was worth 21

22. Branding Before – External: Before – External: Arrogant/Hard to deal withArrogant/Hard to deal with Non-responsiveNon-responsive InflexibleInflexible OverpricedOverpriced Time to close deal too longTime to close deal too long No understanding of business issuesNo understanding of business issues Not "in the game"Not "in the game" 22

23. Improving Branding Understanding Understanding Honest assessmentHonest assessment Info from outsidersInfo from outsiders Understand the metricsUnderstand the metrics 23

24. Improving Branding Education Education Internal and externalInternal and external Metrics criticalMetrics critical Highlight the goodHighlight the good Recognize the badRecognize the bad Project the fix Project the fix 24

25. Improving Branding Services Services All constituent groupsAll constituent groups Delivery Delivery Walk the walk, not just talk the talkWalk the walk, not just talk the talk Face to faceFace to face Tackle the specificsTackle the specifics PracticePractice 25

26. Improving Branding – JHTT Specifics First 6 months – continuous personal presentations to faculty/management First 6 months – continuous personal presentations to faculty/management "JHTT – not as bad as you thought""JHTT – not as bad as you thought" Increased staffing, re-organized Increased staffing, re-organized Fixed delay problem Fixed delay problem Open books and activities Open books and activities Sold the sizzle Sold the sizzle 26

27. Improving Branding – JHTT Specifics Conference Exhibits Conference Exhibits BioNCETTBioNCETT AUTMLESAUTMLES AACRASCOAACRASCO Events Events Angel/VenturesAngel/Ventures Bioinvestors conferenceBioinvestors conference Public relations Public relations ArticlesArticles PublicationsPublications 27

28. Johns Hopkins Technology Transfer 28

29. Marketing Don't confuse marketing with sales – though related they are different activities for different purposes Don't confuse marketing with sales – though related they are different activities for different purposes Marketing means presenting your organization or a particular technology in a favorable light to generate interest, increase value Marketing means presenting your organization or a particular technology in a favorable light to generate interest, increase value Branding is the general part of marketing Branding is the general part of marketing 29

30. Marketing – JHTT specifics Branding correction Branding correction Website upgrade Website upgrade Marketing summaries Marketing summaries Searchable and analyzable "technology available for licensing" spreadsheet – created on demand through database Searchable and analyzable "technology available for licensing" spreadsheet – created on demand through database Automated "push" marketing Automated "push" marketing Technologies visible on numerous services Technologies visible on numerous services Ibridge; Spark IP; Tech Transfer Online; othersIbridge; Spark IP; Tech Transfer Online; others 30

31. Sales Great Hairy Myth: Great Hairy Myth: You can't sell university technology - companies buy itYou can't sell university technology - companies buy it Like all myths a grain of truth Like all myths a grain of truth If you do virtually nothing but be open, you will do some businessIf you do virtually nothing but be open, you will do some business Some folks will find and buy some things without initial contact from youSome folks will find and buy some things without initial contact from you 31

32. Sales Truth: "Technology transfer is a contact sport" Jane Muir, U. FL. Truth: "Technology transfer is a contact sport" Jane Muir, U. FL. 32

33. Sales – JHTT Specifics Work in progress – seeking a sales director Work in progress – seeking a sales director Sales Pipeline – Report of matters in progress generated by data system Sales Pipeline – Report of matters in progress generated by data system Understand customers and customer product pipeline Understand customers and customer product pipeline Company focused meetings and programs Company focused meetings and programs "Feet on the street" "Feet on the street" 33

34. Industry Connections Engineering Advisory Board NanoBioTechnology Advisory Board Brain Sciences Institute Advisory Board Carey Business School Partnership Program Global Health Advisory Boards Medicine Scientific Advisory Board Hopkins BioTech Network Institute for Policy Studies Advisory Board Brain Science Industry Advisory Board Institute for Cell Engineering

35. The Art of the Deal: Myth of Getting Your Way Tech Transfer is more than selling - its deal making Tech Transfer is more than selling - its deal making One approach – getting what you want One approach – getting what you want "Getting your way is the gateway to getting what you want""Getting your way is the gateway to getting what you want" - Jeffrey Gitomer, Little Green Book of Getting Your Way 35

36. The Art of the Deal: Getting What You Need You can't always get what you want - But if you try sometime, yeah, You just might find you get what you need! -Rolling Stones 36

37. The Art of the Deal: Give The Other Side What They Need JHTT view – The Art of the Deal is learning how to give the other side what they need JHTT view – The Art of the Deal is learning how to give the other side what they need "The more you give value, the more you will get your way" "The more you give value, the more you will get your way" Jeffrey Gitomer, Little Green Book 37

38. The Art of the Deal: Giving Value Understand their business Understand their business Read their materialsRead their materials Ask business questionsAsk business questions Don't give up on finding a solutionDon't give up on finding a solution Biggest problem we have in our industry is looking in, not out Biggest problem we have in our industry is looking in, not out We understand our business, not theirsWe understand our business, not theirs 38

39. Value Proposition Secret to sales: Creating the value proposition Secret to sales: Creating the value proposition We seldom do itWe seldom do it Mostly we don't know howMostly we don't know how How its done: How its done: Understand company's businessUnderstand company's business Know their product pipelineKnow their product pipeline Know their focusKnow their focus Show them why they need our productShow them why they need our product Demonstrate the value to themDemonstrate the value to them 39

40. Value Proposition So What, Who Cares, Why You So What, Who Cares, Why You - Wendy Kennedy 40

41. Sales - Creating Opportunities With Start-ups 41

42. Changing Market For University Biotechnology Big pharma have been reducing in-house research programs, closing labs Big pharma have been reducing in-house research programs, closing labs Big pharma looks to acquire later stage technologies Big pharma looks to acquire later stage technologies More and more early development being done by start-up and very small biotech companies More and more early development being done by start-up and very small biotech companies

43. Emphasis On Start-up Companies Some universities traditionally more inclined to start up companies Some universities traditionally more inclined to start up companies Faculty tend to be interested in creating a company and leaving the universityFaculty tend to be interested in creating a company and leaving the university Commercialism viewed positively, or at least not negativelyCommercialism viewed positively, or at least not negatively E.g. Stanford, MITE.g. Stanford, MIT

44. Necessary In Face Of Changing Biotech So, we started a specific program to increase start-ups from JHU technology So, we started a specific program to increase start-ups from JHU technology Always did some – 3 – 4 per year but not initiated or by our efforts Always did some – 3 – 4 per year but not initiated or by our efforts FY 08 did 12, last year, FY09 did 10 FY 08 did 12, last year, FY09 did 10

45. Start-ups – JHTT specific Changed attitudes – programs and publicity regarding benefits and necessity Changed attitudes – programs and publicity regarding benefits and necessity Created specific programs to engage the angel and venture community Created specific programs to engage the angel and venture community Engaged the entrepreneur community Engaged the entrepreneur community 45

46. Start-ups – JHTT specific Angel pitching events Angel pitching events Investor opportunity programs Investor opportunity programs Creating top 100 Maryland entrepreneur list Creating top 100 Maryland entrepreneur list "Speed dating" event "Speed dating" event Close cooperation with our regional players – universities and state agencies Close cooperation with our regional players – universities and state agencies 46

47. Key Points Tech Transfer is a business Tech Transfer is a business Think like a businessThink like a business Know the numbersKnow the numbers Understand your business – Understand theirs Understand your business – Understand theirs Brand, Market and Sell Brand, Market and Sell Value Proposition Value Proposition 47

48. Johns Hopkins Technology Transfer 48 Johns Hopkins Technology Transfer: Building a World Class Office Building a World Class Office QUESTIONS? QUESTIONS? Wesley D. Blakeslee Executive Director Johns Hopkins Technology Transfer 410-516-8300 wdb@jhu.edu