CBSA’s BioWest 2009 brought together a variety of perspectives on bioscience in Colorado and around the world, as well as focusing on innovation and leadership in general. Ginger Graham, the former president and CEO of Amylin Pharmaceuticals, began the day by offering a high level perspective on the future of the bioscience industry. Graham noted that while she believes the “fundamentals [of bioscience investement] are still in place” given that solutions are still needed in the healthcare market, many firms have shifted their focus temporarily to “survival rather than value creation.”
Graham went on to comment on four key considerations she has heard across the investment community that influence investment:
- Huge clinical unmet need – While investors have always sought the $1B market, Graham noted an increasing interest in chronic conditions and a renewed interest in infection. Also of note, Graham commented that devices are now seen as potential treatments in categories that used to be the sole stomping grounds of drugs.
- Impact of the consumer – Patients are playing an increasing role in selecting and dictating their care, and bioscience companies are generally behind the curve in “understanding how to interact” with patients relative to consumer-centric industries
- Reimbursement – At a base level reimbursement hurdles often lead to delay in the adoption of new technologies even after regulatory approval. Larger changes may loom on the horizon as attempts are made to “marry science to the delivery of care and cost.”
- Regulatory changes – Graham specifically noted the uncertainty about the future of diagnostic regulation and the potential to move from effectiveness to comparative effectiveness for drugs and diagnostics.
Following Graham’s presentation, Joe Turner, the former CEO of Myogen, and Derek Cole, Vice President of Investor Relations and Corporate Communications at ARCA, took the stage to provide perspectives on investor relations. Turner framed the discussion in noting that building company credibility among investors is similar to building a personal brand and requires two equally important pieces. First, a company must be recognized for competence – be engaged in substantial science and deliver on milestones. Second, the company must “represent that substance” to the outside community and explain its story in a meaningful yet understandable way. Cole reiterated these points noting that “credibility and long-term planning” represent two of the most important factors in building reputation in the investor community. To a long-term focus, Cole noted that while spinning negative news may seem the better course of action for short-term gain, this type of behavior is not sustainable for the life of a bioscience company.
Lunchtime brought Peter Sims, a contributor to the book True North and author of the forthcoming Little Bets, to discuss leadership and innovation. Sims’ anecdote filled discussion brought to life many of the leaders interviewed during the writing of True North. One of Sims’ core examples drew from the healthcare world in the form of Dr. P. Roy Vagelos, the former CEO of Merck. Sims noted that Vagelos never thought of himself as a leader instead simply possessing a strong desire to solve problems. Throughout his career a Merck, Vagelos was able to build a tremendous amount of credibility through rolling up his sleeves, talking to employees, and giving thought to problems in the company, both small and large.
Beyond leadership, Sims moved to the topic of Little Bets, which centers around the need for an iterative innovation process. Among his examples of this principle in practice were stand up comedians who test material at small clubs tens to hundreds of times before taking it to the main stage. Sims did not address how this trial and error process might need to be adapted in industries such as bioscience whose very nature necessitates relatively larger gambles.
After lunch, three of the top presenters from the Rocky Mountain Life Science Investor Conference (RMLIC) offered their investor pitches to the audience. The companies chosen fell across the bioscience spectrum from a marketed diagnostic (BioDesix) to a device preparing for launch (LeapFrogg) to an early stage drug (BioAmps).
LeapFrogg, presented by CEO Matt Mayer, developed the Leap Frogg Compression System designed to prevent deep vein thrombosis (DVT), the formation of a blood clot within a deep vein, a condition that affects 2M people annually in the US. Current DVT prevention options include pneumatic compression machines, which are cumbersome and can only be used in a hospitals, and anti-coagulants (e.g. heparin, warfarin), which can not be used close to the time of surgery. LeapFrogg’s system consists of a special shoe, a Frogg device to go inside that shoe that presses the arch to move blood within the veins of the leg, and a wrist reader that allows for compliance monitoring. This system can be used in or out of the hospital and does not involve any cumbersome wires. The company plans to target both hospital sales and rental for use at home in those at risk.
RockyRadar covered the presentations of BioAmps and BioDesix at the RMLIC and summaries are available here.
The day’s program concluded with a discussion of the economic climate and economic development efforts in Colorado.
