Non-Dilutive Financing

  • Non-Dilutive Financing: An Essential Channel in Maintaining R&D

    Thursday, June 27th: 1:30PM- 2:10PM

    Non-dilutive funding has emerged as a favorable mechanism for early-stage incubation, bridge financing for EGC’s, and later, for engaging in clinical development. At the later stages of company financing, grants and strategic partnerships may placate institutional investors, as well as retain and grow valuation.

    However, this space is now facing a crossroads: the most substantive giver — the federal government — has stymied this channel through budget cuts and discord between the legislative and executive branches. We are seeing more and more federally-funded studies frozen while budget mandates are handed down. Further, companies that can continue to reap federal grant dollars may be presented with punitive milestone directives.

    Still, while federal grant dollars shrink, activity among non-profit and for-profit strategic partners has only gotten stronger. Sector-wide growth in R&D spending can be directly tied to increased interest — in the earliest stages through the most established biotechs — from this financing arm. As investor strategy changes to favor companies at revenue, funding these studies through non-dilutive channels is increasingly important.

    This group of experts representing the federal government, the non-profit arm, and for-profits will explore:

    For Companies:

    • How do entities estimate the long-term interest of non-dilutive partners and funding?
    • Which international markets provide the most federal funding?
    • What do these clinical milestone directives look like?
    • How should non-dilutive financing fit into overall R&D budget?
    • How cannibalistic are for-profit partnerships?
    • What trends exist within the non-profit community? What are companies doing to attract this group?
    • Which research areas attract the most grant money? What success stories exist?

    For Investors:

    • How attractive is a company with significant non-dilutive financing behind it?
    • How does the presence of non-dilutive financing affect your equity investment in a company?
    • How does a new round of non-dilutive financing affect your exit strategy?
    • What are the expectations of a for-profit company partnership?
    • How does the acquisition of non-profit money/partnership affect holdings?
    • How difficult is it to work with federal milestone directives? What are the benefits?
    • How do international suitors of this kind affect domestic growth activity? What are the regulatory issues?

     

    Faculty:

    TraceyMumfordTracey Mumford, Senior Associate Director, Research Partnerships, The Michael J. Fox Foundation, joined The Michael J. Fox Foundation in 2011. In her current role, Tracey is responsible for MJFF’s industry strategy and is hence focused on increasing engagement and developing partnerships with various industry groups, including pharma, biotechs and venture capital firms. Prior to joining MJFF, Tracey was an associate in the Capital Services Group within the Equities Division at Credit Suisse AG. In this capacity, Tracey was responsible for relationship management of hedge fund clients in regards to capital raising activities. Prior to joining Credit Suisse, Tracey was an investment banking analyst at Deutsche Bank, in their Global Consumer Group. Tracey graduated from Bucknell University with a BA in Economics.

    Kurilla_6_09Dr. Michael Kurilla, Director of the Office of Biodefense, Research Resources, and Translational Research, Associate Director for Biodefense Product Development for the National Institute of Allergy and Infectious Diseases, his primary role is to provide overall institute coordination for product development of medical countermeasures against bioterror threats. He received his undergraduate degree in chemistry from the California Institute of Technology. He earned his MD-PhD from Duke University. He took his postgraduate medical training in Pathology at the Brigham & Women’s Hospital in Boston, MA and a postdoctoral fellowship with Dr. Elliott Kieff at Harvard Medical School as a Life Sciences Research Foundation Fellow followed by a Markey Scholar Award. At the University of Virginia, he was an Assistant Professor of Pathology as well as Co-Director of the Laboratory of Molecular Diagnostics and Associate Director for Clinical Microbiology. He moved to the private sector working in anti-infective drug development at Dupont Pharmaceuticals, Bristol-Myers Squibb, and Wyeth. He subsequently joined the National Institute of Allergy and Infectious Diseases (NIAID) as a Medical Officer. In 2005, he was named to his current positions within NIAID.

    changStephen Chang, Vice President for Research and Development, New York Stem Cell Foundation, as the Vice President for Research and Development at The New York Stem Cell Foundation, Dr. Stephen Chang has overall responsibility for planning, coordinating, and managing the activities of the research department. In this role, he provides senior leadership in the areas of research and development, oversight of short and long term projects with regulations and policies related to administration and  business units, partnerships with industry and other research institutions, and monitoration and evaluation of projects. Prior to joining NYSCF, Dr. Chang served as Chief Scientific Officer of Stemgent upon the company’s founding in 2008. He was previously the CEO of Multicell Technologies and continues as a director of this company. Dr. Chang is president of CURES, a coalition of patient advocates, biotechnology companies, pharmaceutical companies, and venture capitalists dedicated to ensuring the safety, research, and development of innovative lifesaving medications. He is also a board member of Histogen, Inc., a privately held company in regenerative medicine. Dr. Chang received his PhD in biological chemistry, molecular biology, and biochemistry from the University of California, Irvine. Areas of research interest include translational applications of basic science to pharmaceutical products.

    Additional participants to be named in the coming weeks.

     

     

  • Conference Info:

     

    Date: June 26-27, 2013
    Location: The Metropolitan Club, New York City


    Audience: Institutional investors, high net worth individual investors, family offices, business development executives throughout the US and Europe building and financing high growth medical technology, health care and life science companies.

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