1. WSU Technology Commercialization and TechTown WSU PAD SEMINAR March 6, 2009

2. WSU Technology Commercialization Who, why, what, when and where

3. WSU Technology Commercialization  Technology Transfer Office  Anne Di Sante and team  Venture Development Office  Eric Stief and team  TechTown and Economic Development  Randal Charlton-Executive Director  Judy Johncox- Director of Business Services  TechTown team

4. Technology Commercialization goals and how you benefit  Advancing discoveries to benefit society, WSU and researchers.  The basic process of invention management  The “win-win-win” of technology transfer  Structure of Technology Commercialization  Technology Transfer Office  Venture Development Office

5. Technology Commercialization  Invention development grants  Michigan Initiative for Innovation & Entrepreneurship (MIIE)  New Economy Initiative (NEI)  Internal grants for further development of selected inventions

6. Recent WSU TC statistics  50 Invention disclosures/year  15 License or option agreements/year  $2 million/year in licensing revenue  $600K/year in patent expenses (40% reimbursed)  1-3 start-up companies/year  7 professional staff; 5 support staff

7. Royalty distribution  Inventors receive 35-75% of revenue  Inventor’s department receives 15%  WSU and Technology Commercialization receive the remainder of funds  Funds used to support research and Technology Commercialization operations  $3.0 million provided to support research in past five years

8. Technology Transfer Office  Invention examples: compounds, new materials, devices, software, processes  Most commercially viable technologies are medical, engineering, chemistry, pharmaceuticals  Inventions made by PIs, Post-docs, RAs, and graduate students  Forms of intellectual property protection

9. Patent Protection  What is a patent?  How does an invention qualify?  Who writes the patent application?  How long does it take to get a patent?  How much does it cost to get a patent?  How many patents does WSU own?

10. Invention Management  Marketing of inventions  Negotiating license agreements  Scientist to scientist relationship is key  Licensee relationship  Probability of success and vast riches  Role of the inventor

11. Technology Transfer Office  Other services  Material Transfer Agreements  Non-disclosure/Confidentiality agreements  Advice on working with companies  Sunshine Act requests to Board of Governors  Orphan agreements

12. Venture Development Office  Technology development and the start- up option  How we assist entrepreneurs in the early stages  Challenges with high technology spin-out companies coming from universities  Technology, management and $$$$$

13. Venture Development Office  Technology is always transferred by a license, even to a start-up  WSU may receive license and milestone fees, royalties, and equity  Managing conflicts of interest for the faculty entrepreneur and institution  Angel and venture capital investors  Gap and seed funding opportunities  E2 Challenge and student entrepreneurs

14. ”Platform Technologies”  Game changing for an industry  Not a one trick pony  Target market is high growth and/or high profit  Clear business model apparent  Sub point – the “lifestyle” company

15. Past WSU Start-ups  Ash Stevens – pharmaceuticals  Lumigen – chemiluminescent markers  TherOx* – super-oxygenated fluids  SciClone – Zadaxin for hepatitis  DNA Software* – DNA/RNA research tools  Neomatrix* – breast cancer diagnostics  Sensound* – “Sound as we see it”  EXT Life Sciences* – dermatology drugs  nSEC* – clay-based nano-composites * denotes WSU equity position

16. MICROBIOTIX A product-focused, small molecule, anti-infective company

17. EXT Life Sciences

18. DNA Software

19. Lumigen Lumigen APS-5 Lumi-Phos PlusLumigen PS-3

20. TherOx Blood Platelets

22. WSU supports economic development  Many state-wide programs  MI Initiative for Innovation and Entrepreneurship  MI Economic Development Corp  Great Lakes Entrepreneur Quest  MichBio  Smart Zones  WSU and TechTown

23. TechTown  E2 Detroit program  Entrepreneurial education at WSU  SmartStart program at TechTown  Industry interactions generated by TechTown  TechTown resources and operations  Incubation of high-to-low tech start-ups  Diverse tenant roster

24. TechTown  Advantages of a community of start-ups  WSU-TechTown efforts to create a seed fund for start-ups  Other TechTown-related funding sources such as the Pre-seed fund  Unique TechTown programs  Childrens’ BioTrust  Chinese Business Club

25. Questions?