How to start your own biotech company – Part 1. Therapeutics SBIR Innovation Lab

NCI-funded biotech innovators Eric Broyles, CEO and Founder of Nanocan Therapeutics, and Margaret Jackson, CEO and Foudner of BYOMass, share advice on the priority steps aspiring entrepreneurs should take when starting a small business.j
TRANSCRIPT
[music]
 
BILLY: Hello and welcome to Innovation lab, your go to resource for all things biotech startups, brought to you by the National Cancer Institute Small Business Innovation Research, or SBIR Development Center.
 
BILLY: Our podcast host interviews with successful entrepreneurs and provides resources for small businesses looking to take their cutting-edge cancer solutions from lab to market. I'm Billy Bozza, a program director at NCI SBIR and today's host.
 
[music]
 
In this episode, you will hear from two therapeutic companies funded by the NCI SBIR program about starting a business and how they kick started their journey going from lab to market. The first company, Nanocan will share their vision, licensing journey, and the various considerations that went into forming their cancer therapeutic startup.
 
 
Then we will hear from Biomass and how this company went about building a business team, established a corporate structure, and found resources for managing their business. Now, without any further ado, here's Eric Broyles, founder and CEO of Nanocan.
 
ERIC: Hello, my name is Eric Broyles, and I am the founder and CEO of Nanocan Therapeutics Corporation, which is a company that Harvard's Dana Farber Cancer Institute has spun out a patented technology that we believe will be revolutionary in cancer care.
 
Our company is at the preclinical stage, which means we have not done in human clinical trials yet, that is our next phase that we're going to move into over the next 6 to 9 months. We will use a proprietary nanoparticle drone delivery mechanism that actually can intratumorally deliver immunotherapy for certain solid cancers, cancer tumors. And then we have a formulation that works on brain and lung, that is a liquid formulation of this technology.
 
So I want to talk about why I started a company to undertake this endeavor. And one of the most important things to me is vision. What is the vision that you have? And I met a professor at Harvard Medical School who had invented this technology and just hearing his thoughts about how he developed the technology, what his hopes were for the technologies placed in the marketplace, really inspired me, and I was inspired by again his creativity, his genius, really with making this invention.
 
And so I really formulated my own vision for how I wanted to take -- where I wanted to take this product. And I was encouraged and inspired that that I would have an opportunity to lead and develop a commercialization of a technology that can save lives.
 
 
As an entrepreneur, you have the ability to be creative. You have the ability to make a positive impact on society, and you also have the ability to achieve financial rewards. I want to talk about the steps we took to secure the IP rights to the invention.
 
Initially I had to meet with Harvard University to share my vision and market approach for their intellectual property. And I'm trained as an attorney and so I understand intellectual property, but it's also very important in that step, after you share your vision and get buy in from them, you should engage good IP counsel, intellectual property counsel.
 
Following that, you will eventually get a term sheet for your technology, again, this assumes you have not invented the technology yourself. You'll get a term sheet. We got a term sheet and then you will get a draft license agreement. It's important for your license agreement, certain key terms, what's the scope of the license? What's the term? How long will you have the right? Is it exclusive or not? What's the geographical limitations? How much do you have to pay in royalties and are there other payments that you need? And then wha