SRTTDJuly 30, 2010

Brooks AdamsExecutive Director & President

Accelerating Commercialization in Nanobiotechnology

Outline

1. COIN

2. The opportunity

3. COIN’s role

4. Working together

We promote innovation & commercialization in nanobiotechnology & nanomedicine to enable future economic growth & improve human life.

COIN

Key facts

Nonprofit 501c3 launched June 2009 $2.6 million funds committed 4 full-time staff Outsource finance, marketing, & IT University intern program (4 - 5) 8 Board members & 6 on SAB Annual operating budget ~ $800K to 1MM Based in Triangle; frequently in Triad &

Charlotte and beyond

“Human health has always been determined on the nanometer scale…where the structure & properties of the machines of life work in every one of the cells in every living thing. The practical impact of nanosciences on human health will be huge.”

Dr. Richard Smalley, Nobel Laureate

The opportunity

Nanobiotechnology

Application of nanotechnology materials, tools, & processes in the life sciences & medicine:

Commercial applications: Therapeutics & diagnostics Medical technology & devices Medical/life science research Non human health-care related

Versatile structure of carbon nanotubes enables use for variety of tasks in the body

The promise & challenge

Nanotech is a tool box not an industry Many potential high value applications Nanotech centers are forming globally &

industry clusters grow around them Requisite capabilities/resources:

Research, infrastructure, talent, money, & a conducive business environment are needed

A few major centers will develop

“A Roadmap for Nanotechnology in NC’s 21st Century Economy,” March 2006

Nanobiotech global market

2009 nanomedicine healthcare market largest in N America at $4.75 billion followed by Europe at $3.65 billion

Nano-enabled drug delivery largest segment with expected CAGR of 21.7% to ~ $16 billion by 2014 Biocompatible implants & coatings and diagnostics

estimated growth of 42% & 21.8%, respectively through 2014

Global clusters: US, Singapore, Canada, Australia, Germany, China, UK, & Israel

US hubs: Boston, San Francisco, Houston, & RTP US academic centers of excellence: NC, Mass.,

California, Ohio, & Texas

Sources: Business Insights (Jan 2010), Pew Charitable Trusts, COIN database

Nanomedicine patents

3% 3%8%

14%

15%

57%

Active Implants

Drugs and Therapies

Biomaterials

Imaging

In vitro Diagnostics

Drug Delivery

Provided by Wake Forest Univ. Center for Translational Nanomedicine

.

Site-specific, targeted delivery

Kam Leong, Duke University

Tissue engineering

Kam Leong, Duke University

Vision for NC

Assets to succeed lie in Charlotte, Triad, & Triangle Mix of nanotech research activity, medical centers, related

large/emerging companies, and investors To be nationally competitive, must promote projects in

this corridor leveraging resident assets

NC nanobiotech ecosystem overview

Building from thriving, mature biotech industry & infrastructure, emerging nanobiotech sector is gaining rapid traction

NC strong in 3 of highest-growth nanotech sectors: Medicine & healthcare Tools/instruments Materials

NC repeatedly recognized as leader in nanotech 2009 survey (PEN) ranked NC 8th in US & Raleigh metro area 4th

2009 US University Report & Rankings by Small Times placed NCSU 3rd in for nanotech commercialization and UNC-CH 5th & NCSU 10th for nanotech research

Positive political-business climate in support of biotech, low-cost of doing business, & high quality of life NC Innovation Council

NC nanobiotech ecosystem overview

Industry > 70 nanotech companies & 35 nanobiotech companies

> 280 US nanobiotech companies & additional 150 int’l nanobiotech companies University & college resources

30 university research centers Two nanotech PhD programs (only 36 in world) Among 1st in nation to offer nanotech associates degree

Supportive infrastructure 7 major research parks across NC 3 major nonprofit research institutes 108 medical products CRO’s Active, engaged VC & angel investment NC Department of Commerce NC Biotechnology Center Centers of Innovation: COIN, ibiliti (med tech), Drug Discovery COI NC Regional Partnerships

Community resources CED SBTDC

NC among nano-enabled drug delivery research university leaders

1. University Texas2. Harvard University3. MIT4. University of Michigan5. Johns Hopkins University6. University of Illinois7. Northwestern University8. University of Washington9. Purdue University10. University of Utah11. Georgia Institute of

Technology12. Washington University13. University of Florida14. University Pennsylvania15. Cornell University16. University of California at

Berkeley17. University of Massachusetts18. University of California at

San Francisco19. University of Minnesota20. NCI

21. Rice University22. Ohio State University23. University of California at

Los Angeles24. University of California at

Santa Barbara25. University Nebraska26. University of North

Carolina27. University of Wisconsin28. Penn State University29. Massachusetts General

Hospital30. University of Kentucky31. Stanford University32. University of Maryland33. University of Southern

California34. University of Pittsburgh35. University of California at Davis36. Emory University37. SUNY Buffalo38. University of California at San

Diego

39. Northeastern University40. Carnegie Mellon University41. North Carolina State

University42. Vanderbilt University43. Case Western Reserve

University44. Duke University45. Brown University46. CALTECH47. Arizona State University48. Columbia University49. Rutgers State University50. University of Delaware

Source: COIN study (based on publications)

Leading NC nanobio companies

Liquidia: Series B VC funding, entering clinical trials

XinRay: Major partnership with Siemens Pioneer Surgical Orthobiologics:

Product on market Biodelivery Sciences: Publicly traded;

$56.69 MM market cap

COIN will help transform ideas into commercial value.

COIN’s role

Innovation Management involves two major, increasingly resource intensive, business processes

Product DevelopmentTechnology Development

Termed stage-gate processes, each stage is intended to provide decisionmakers with enough additional information about a particular technology / product development project before committing additional resources to its next stage.

$$$$

Develop

Demo Quality

Concept

Plan

Design

Test Launch

Idea

Burgeoning field with challenges

Shortage of qualified personnel Education of workforce for future Limited funding for early-stage innovation Lack of pre-clinical/clinical testing guidance &

facilities Development of GMP capabilities / manufacturing

scale up Need for more:

Low-cost, flexible research space Multidisciplinary research partnerships Business development connections

COIN offers

Innovators & entrepreneurs Resources to build relationships crucial for

technology translation & business development

Industry partners Single point of entry to nanobiotech sectors in

NC and access to innovators & entrepreneurs

Service providers Resources to develop nanobiotech project

pipeline

COIN goals

BUILD a community of practice of NC nanobiotechinnovators & industry players focused on commercialization

CONNECT innovators with promising nanobiotechnology with industry partners, resources, & collaborators

GROW nanobiotech infrastructure in NC

DRIVE new product development by reducing barriers to commercialization

INCREASE the profile of NC nanobiotech activity globally

COIN programs

Events & seminars to build, connect, & inform the community: Nanobiotech Executive Roundtable Annual NC Nanotech Commercialization Conference: Nanobio track

Membership services including knowledge-rich web portal: Business intelligence RFP scouting service

Innovation services that address specific obstacles to commercialization: Grant writing Incubation partners Connections for pre-clinical testing

NC resources for pre-clinical testing

synthesis

•WFU Nanotech Center

•Nanotech Labs (Yadkinville, NC)

Characterization

•WFU Nanotech Center, JSNN, Forsyth Tech, Murdoch

In Vitro

•Murdoch, Biomedical Innovation Network, JSNN, ECU, RTI

In Vivo

•Murdoch, Biomedical Innovation Network, JSNN, UNC . RTI

Clinical Trials

•Duke, UNC, WFU , ECU med schools

•RTI, CROs

COIN clients & collaborators

University researchers & tech transfer offices

Pharma/biotech, specialty pharma, drug delivery companies

Startups VC, angel, & public

funding sources

Equipment & software companies

National nanobiotech research institutes

Trade groups Law & accounting

firms Economic

development & policy makers

“…to increase its share of nanotechnology activity nationally and internationally, the (Southeast) region needs to take specific steps in achieving a leadership role…with a focus on improved collaborations and increasing the number and growth of nanotechnology companies.”

Working together

Source: “Connecting the Dots,” 2006, Southern Growth Policies Board, Georgia Tech, Oak Ridge Nat’l Lab

Creating a Southern nanotechnology strategy

Establish Southern Nanotech Network, a membership network to increase awareness of industry among South’s citizens, governments, & businesses and: Offer opportunities for collaborative interaction between the public and private sectors Identify policy advocates Have each Southern Growth state put advancement of nanotech as a primary economic

development goals Develop/execute branding strategy for Southern nanotech to promote South’s assets within

region, nationally & internationally Coordinate collaborative trips to CA, NY, and MA to promote linkages between region &

other major centers Establish Southern Nanotechnology Institute, based on resources of Oak Ridge &

others to: Develop nanotech business incubation capacity for all Southern states Increase funding opportunities for Southern institutions including state matching funds for

SBIR and other federal grants with specific focus and development of equity funds for nanotech companies

Enhance availability & affordability of research tools Develop survey of nano-equipment in region’s universities & research labs, so other users

may gain access & subsidize their expenses through user agreements Other considerations

More in-depth look at commercialization including development process, South’s market niches, & role of various funding sources

Explore opportunity/need for equipment cooperatives with vendors

Source: “Connecting the Dots,” 2006, Southern Growth Policies Board, Georgia Tech, Oak Ridge Nat’l Lab

Summary

Technology knows no borders Together we can accelerate

commercialization in nanobiotechnology: Foster nano-size solutions for life science

research & medicine for the benefit of mankind Bridge research community with business &

funding sources to create R&D collaborations, new companies, and products

BROOKS ADAMSExecutive Director & President

brooks.adams@nc-coin.orgCell: 804-363-9574Assistant: Clare Valcore / 919-782-1991, Ext. 302

1

Addendum

Major categories of nanomaterials

Type Definition ExampleSolid nanoparticles Ultrafine solid particles on

nanoscale, including crystals & nanopowders

Synthetic bone made from calcium & phosphate particles manipulated at molecular level

Hollow nanoparticle Hollow nanoscale particles, including nanotubes & other kinds such as nanohorns & nanocapsules

Drug delivery systems or bundle & detonate for cancer detection

Nanoscale thin film coatings

Coatings with thickness &/or internal structures measured in units of 100 nm or less

Antimicrobial coatings applied to surgical dressing or medical devices

Nano structured monolithic

Bulk solids that have macroscale external dimensions but nanoscale internal structure (could be metal or alloys)

High strength medical implants using nanostructured pure titanium

Nanocomposites Mixture of 2 or more dissimilar components, at least one of which has nanoscale dimensions

Devices with increased responsiveness to pressure for MIS techniques

Source: BCC research

Major categories of nanomaterials

Nanotools: Device enabling viewing/manipulation of nanoscale

objects E.g., scanning probe microscope on market today

Nanodevices Nanomachines to do useful work in medicine E.g., nanorobots injected into blood to destroy cancer

cells;medical nanosensors incorporating nanoengineered structures, e.g., spintronic sensors that incorporate nanoscale thin films or next generation nanomedical sensors, e.g., respiratory gas sensors (going soon to market)

Source: BCC research