Centagnetix Study Guide PDF

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Study guide: Commercialization dynamics Reading: “Centagenetix (A): Building a Business Model for Genetic Longevity” Centagnetix is a putative genomics start-up being spun-out of the Harvard Medical School. The firm promises to use genomics technology, in this case linked to gene hunting from a population of centenarians, to identify and develop therapies for diseases linked to aging. This case study allows a careful analysis of the process by which academic science is commercialized into a biotechnology venture, as well as some of the conflicts of interests often created by the process. Session objectives 1. Correctly identify key opportunities and risks facing early stage biotechnology firms emerging from academic commercialization processes. 2. Correctly identify forward looking strategies for Centagenetix, and evaluate the strength of these strategies. 3. Demonstrate critical thinking techniques within the context of academic commercialization processes through both oral and written communication. Study questions: 1. The ‘founding idea’ for Centagenetix a. What is the New England Centenarian Study (NECS)? b. What evidence lead Perls and Kunkel to believe that there might be a genetic cause of human longevity? c. When forming Centagenetix, the company negotiates a license to use the NECS for commercial purposes. How valuable do you think the NECS is? What factors would increase, or decrease the value of this license? 2. Business opportunities. Carefully read the long quote by Kunkel on page 9 (see also pg. 12 and exhibit 4 on pg. 20 and handout on clinical trials). For both the “positive” and “negative” opportunities, answer the following: a. What market(s) does the opportunity address? How lucrative do you believe these markets to be? Why? b. What technical steps need to be completed to successfully pursue this opportunity? c. What other steps will be necessary to complete to bring each opportunity to market? d. Describe a potential ‘business model’ for each opportunity: What ‘recipe’ should Centagenetix use to bring potential products to market?

3. Why did the founders decide to form a company rather than license the technology to an established company, such as a large pharmaceutical company? 4. Describe the deal made between the founders and MPM capital. a. The value placed on the company before it received funding (the ‘pre-money valuation’) was $6 million. What is it that the company ‘owns’ that is worth $6 million? b. Do you think this is a fair estimate of the company’s value? 5. Conflict of interest a. What is a conflict of interest? b. Describe Harvard’s policy surrounding conflict of interests surrounding its scientists. c. What options does Perls have in terms of resolving this conflict? d. What would you suggest Perls do? 6. Describe the prior agreement between Harvard and the MIT Whitehead Institute surrounding NECS samples. a. How important is it to the founders of Centagenetix that this issue be resolved? b. What price do you believe Centagenetix should pay the Whitehead Institute to ‘buy back’ the rights to the samples? 7. Please fill out a risk assessment analysis of Centagenetix (see attached sheet). 8. If you were Foley, would you invest in Centagenetix? Please make and defend a recommendation....