University Licensing Dominique Kleyn 27 th June 2003

Overview of Innovations Technology transfer arm of Imperial Aim to maximise the value returned to Imperial from the commercialisation of intellectual assets and to support the attraction and retention of quality academic staff Transparent and equitable process to make money for the College and reward inventors

Experience & Diversity Working with 150 inventions per year Filing 1 new patent per week Extensive industrial experience Established licensing and spin-out processes Interdisciplinary working

Successes at Imperial Drug development eg Remicade, Temezolamide, Malavone Spin-out listing eg Turbogenset Portfolio sale eg Fleming Seed funding eg University Challenge Co-investment eg Nikko

Early years DTI headcount support (£750k) Create Company Maker, establish spin- out process, build support networks University Challenge Seed Fund (£4m) 2 tier investments, external advisory committee, rigorous assessment process Science Enterprise Challenge (£2m) Entrepreneurship Centre established, entrepreneurs programme introduced

Period of growth Rapid formation of spin-outs Rapid growth of Innovations team increases from 5 to 25 FTE New finance initiatives NIKKO – extending UCSF Fleming – realising equity Paul Capital - royalty sale

Innovations 1997 to 2002 Spin-outs formed53 Licence incomecirca £7.1m Development incomecirca £15m Equity realisationcirca £20m Finance raised£136m+ Spin-out jobs500+

Innovations approach Inform & educate Identify & assess Protect & publish Explore & exploit Develop & maintain

Well trodden path

Decision making Due diligence on technology Engagement of patent agent to proceed with filing Licence or spin-out Due diligence on commercial potential Type of marketing? Terms of agreement?

Typical concerns Cost of patenting process and funding for technology exemplification Seeking external endorsement Ability to discern optimal use and access right partners Diversion of effort away from research

Observations on licensing Universities are focussing more on interfacing with potential partners and have developed a better base of industrial experience in tech transfer New generation of SME’s can make good licensing partners Licensors are seeking certainty and are reluctant to commit to royalties Spin-outs are also licensing vehicles

International perspective Exploit Technologies Singapore and University of Columbia New York Leverage opportunities for international licensing and spin-out activity Access to international networks of investors and industrial partners Technology exchange and joint commercialisation Further understanding of commercial needs

Funding for Innovations Service fees from College and industry Balance of spin-outs and licences Limited ability to fund technology development before licensing Equity squeeze for those unable to follow on Diminished returns to universities Development fund management fees Commercialise industry’s unexploited IP

Conclusions Technology transfer has been transformed by spin-out activity Universities are developing a supportive environment for commercialisation Access to technology development funding and management expertise is key