2. Market Assessments Michael Pratt Executive Director Business Development November 1, 2011

3. Boston University Slideshow Title Goes Here Setting  Raw Invention  Detailed Science  Light on technology  Hints of a product  Vacant of a value proposition

4. Boston University Slideshow Title Goes Here Objectives of Assessment  Triage  Should a patent be filed?  Value  What are we offering to prospective licensees?  What is the value of this asset?  Strategy  What is the best way to commercialize?  What should be protected?  How do we reduce risk and make this more appealing to investors?  Who will license this? Why?

5. Boston University Slideshow Title Goes Here Market Forces Licensee or Competito r Accelerator Marketabl e Products End Users Existing Threats Companies Enabler Tech Synergy BarriersMarket Prior Art/ Participant Science Acquirers Validator Market Shift Product Life Cycle Impact Threshold New Science Incumbent or Emerging Faster, Better, Cheaper Patents Emerging Threats General Familiarity Contacts State of Art Figures of Merit

6. Boston University Slideshow Title Goes Here Market Forces Licensee or Competito r Accelerator Marketabl e Products End Users Existing Threats Companies Enabler Tech Synergy BarriersMarket Prior Art/ Participant Science Acquirers Validator Market Shift Product Life Cycle Impact Threshold New Science Incumbent or Emerging Faster, Better, Cheaper Patents Emerging Threats General Familiarity Contacts State of Art Figures of Merit

7. Boston University Slideshow Title Goes Here Step # 1  What is the product?  What will be delivered to a customer?  Form factor?  Service or product?  Therapy or diagnostic?  Stand alone or adjuvant?  Delivery?

8. Boston University Slideshow Title Goes Here Step # 2  Identify & Characterize the addressable market(s)  Large & growing?  New market?  Highly competitive?  Litigious?  Receptive to new technologies?  Active investments?

9. Boston University Slideshow Title Goes Here Resources  Google  Pardee Management Library  Subscription Services  www.frost.com www.frost.com  Venture Source  T2+2  Knowledge Express  Contact OTD for a list of helpful resources

10. Boston University Slideshow Title Goes Here Healthcare  Much easier than physical sciences/IT/Software  Need is more obvious  Addressable market size is easier to estimate  Range of possible products is usually constrained

11. Boston University Slideshow Title Goes Here Healthcare But… horizons vary  Drugs  Stage of development is earlier  Leads to far reaching assumptions about performance  Devices  Returns are usually much lower than drugs  Therefore risk must be much lower  Translation: 510K, replace an existing therapy, has an established reimbursement code  Diagnostics  Market is highly competitive (many solutions, many entry points…)  Incumbents require compelling data  Expectations on performance are much higher (clinical samples)

12. Boston University Slideshow Title Goes Here Physical Sciences & IT  Many possible products  Many possible markets  Varying levels of competition  Value chains not clearly defined  Market data harder to identify

13. Boston University Slideshow Title Goes Here Physical Sciences & IT  But…horizons are usually within reach  Must act quickly  Time to market is critical  Promise or Performance?

14. Boston University Slideshow Title Goes Here Step # 3  Establish your logic  Map technology elements to product features to market needs  “Feature-benefit analysis”  Technology  Faster, better, cheaper…  Market  Growing, competitive, but lacks…  Development Milestones  Technology development  Regulatory pathway  Reimbursement  Impact  Patient, payer, clinician, hospital

15. Boston University Slideshow Title Goes Here example  Technology blank will enable a new product category for the blank industry which will allow the entire industry to address blah blah unmet need in the blah blah market  The are four major competitors in this mature market all competing on price. The blank technology will provide a competitive advantage to one of these major incumbents because booboo(feature/benefit).

16. Boston University Slideshow Title Goes Here example  Blank is an emerging scientific field that promises to have a major impact on blank emerging markets.  Sales in blah blah markets are small but growing rapidly. Competition centers around performance and product cycles are quick.  Blank technology with have XX increase in performance over current technologies and YY over all other emerging techniques. Development time is in line with rapid turnover.

17. Boston University Slideshow Title Goes Here Consideration  Choosing the “right” application is difficult  Try to build some consensus from multiple data sources

18. Boston University Slideshow Title Goes Here Features – Benefits - Needs FeatureBenefitNeed Xx wicking systemDry feetStay dry Reduce foot fungus Recycled materialEnvironmentally consciousReduced carbon foot print Xx MaterialWarmth, lightweight, thinComfort

19. Boston University Slideshow Title Goes Here Step # 4  Quantify your adjectives  How big is the addressable market?  How many competitors?  How much money will be saved?  How much will customers benefit from the new product?  How much will the product effort patients, clinicians, hospitals, & payers?

20. Boston University Slideshow Title Goes Here Considerations  Do the costs of development outweigh the potential benefits?  Is the required development time beyond the window of opportunity (market timing)?  Is this the “right” solution? Why?  Is there are “burning need” for this solution?  Understand degree of interest

21. Boston University Slideshow Title Goes Here Step # 5  Create value proposition  State  Unmet, burning need  Who needs this?  Want vs. need vs. interest  What is the product?  Why is this the best solution?

22. Boston University Slideshow Title Goes Here Example  A soft good knee brace that is lightweight, low profile, and easy to use yet maintains the performance characteristics of a rigid brace. This enables an effective therapeutic alternative that is much less expensive, easier to manufacture and offers attractive profit margins.  “A Soft Good with the Performance of a Rigid Knee Brace”

23. Boston University Slideshow Title Goes Here Step # 6  Validate your assumptions  Pick up the phone…  Open ended questions…  What is driving the move towards molecular diagnostics?  What are the top three challenges your are facing?  What reimbursement codes do you use for xx procedure?  What are the biggest time constraints in xx protocol?  Followed by direct questions…  Would a product that is taken orally and relieves these symptoms improve the lives of your patients?  Would a diagnostic that provides instant readout from a clinical sample change your clinical practice?

24. Boston University Slideshow Title Goes Here Recap 1.What is the product? 2.Identify & characterize the addressable market 3.Establish your logic 4.Quantify your adjectives (e.g., how big) 5.Create a value proposition 6.Validate your assumptions (pick up the phone)

25. Boston University Slideshow Title Goes Here QUESTIONS mpratt@bu.edu 617-353-4569