Entrepreneurship in Biotechnology Columbia University Graduate School of Arts and Sciences BIOT 4180 Columbia University GSAS BIOT 4180

Week 7 Management Columbia University GSAS BIOT 4180

Agenda Hiring histories Skills and talents Managing people – Behavioral theory: Maslow’ s Hierarchy – Responsibility / Authority Compensation: stock options Boards and oversight ?Marketing Columbia University GSAS BIOT 4180

Skill and Talents Technical Generalist Platform specific Stage specific – Preclinical – Clinical Trial design Statistics – Regulatory – (Pre)Commercial Outsourcing options Business Accounting Fund raising Internal budgeting External sources – Investors – Board of directors Business development M&A Columbia University GSAS BIOT 4180

Maslow’s Hierarchy Self actualization Esteem Love Safety Physiologic Columbia University GSAS BIOT 4180

Responsibility and Authority One assumes responsibility One delegates authority Conflict arises when one assumes responsibility without being granted authority Columbia University GSAS BIOT 4180

Communication Praise individually, publicly Correct or discipline privately Documentation – Dated, specific and quantified – Regular meeting Clarity of outcome – Criteria for advancement, pay increase – Criteria and process for firing Columbia University GSAS BIOT 4180

Compensation Salary principles – Per unit, per hour / day, per year – Economic rent Cash versus equity Options Columbia University GSAS BIOT 4180

Stock Options Call option: the right but not obligation to purchase a certain amount of stock at a preset (“strike”) price for a given amount of time Vesting: options can only be exercised after a certain period of time Non-transferable Columbia University GSAS BIOT 4180

Option Valuation Black-Scholes: valuation a function of time to expiration, current price, strike price, volatility of the underlying Employee options vest over time More accurate for frequently traded stocks with consistent volatility Columbia University GSAS BIOT 4180

Employees Directors Scientific advisory board Columbia University GSAS BIOT 4180

Boards of Directors Organizational oversight as defined by bylaws Elected by shareholders in public companies – Policies and objectives – Executive oversight – Resource oversight (adequate cash) – Approval of budgets – Reporting performance – Compensation Columbia University GSAS BIOT 4180