Accelerating Commercialization Cost Saving Health Technologies Report

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    Acclratng Cmmrcalzatn f

    Cst-Savng Halth TchnlgsMAy 2012

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    ii

    About the contributors

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    1

    contents

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    2

    1introDuction

    i Jaay 2012, The Scientist, a maga vg

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    3

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    Photo 1. LUCAS Holographic Microscope

    Credit: Holomic, LLC

    Common Commercialization Terms FoundIn This Report

    Technology Acceleratora pgam a

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    $100,000$500,000.

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    Stages of Development

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    5

    Th Rl f Unvrst RsarchDp gfa pp f dvlpm

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    -Cost Saving

    Health

    Technologies

    Healthc

    are

    IT

    LifeSc

    iences

    Te

    lecom

    Low-PowerSensors

    Mic

    roel ectronic

    s

    CloudComputing

    Wire

    lessNe

    twork

    s

    Figure 1. New Breed of Health Technology

    Source: Booz Allen Hamilton

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    Alag cmmala f c-savg hal tlg 6

    3the chALLenGe oF coMMerciALizinGeArLY-stAGe heALth technoLoGies

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    Health technology innovations predicated on

    achieving dramatic cost reductions may not be able to

    provide the level of return that is typically expected in

    exchange for high-risk, early-stage investments.

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    7

    Potential Limitations of Traditional Technology Transfer.

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    1999 2005 2011

    Seed/Start-Up

    Early

    5.5%2.7% 2.0%

    23.1%

    16.8%

    34.5%

    Figure 2. Change in Investment Stage as Share of TotalVenture Capital

    Source: Booz Allen Hamilton analysis of data from PricewaterhouseCoopers

    and the National Venture Capital Association

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    Open Innovation Partnerships. t m p

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    Without financial support for low-cost health

    care innovation, the research we do at the Institute

    and the work other agencies, institutions, and

    entrepreneurs are undertaking will have a tougher

    path toward becoming a reality and actually

    lowering health care costs for the public. Gary West, chairman and founder of

    West Wireless Health Institute

    RESEAR H DE EL PMENT

    Boundary

    of the Firm

    Research

    Projects

    Current

    Market

    Open Innovation Model

    New

    Market

    Funding Generating Commercializing

    Op n Innovation Mod l

    Figure 3. Open Innovation Model

    Henry Chesbrough, Open Innovation: The New Imperative for Creating and

    Profiting from Technology, 2003

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    9

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    f a ym a pp a ad

    p y lpg m add pfgal ad qm a a ag

    mmala p.

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    Alag cmmala f c-savg hal tlg 10

    Government

    Funded

    University

    Research

    Advanced

    Research

    Projects

    Agency

    SBIR, STTR andInnovation Funds

    Venture and Angel CapitalIncubators and

    Crowdfunding

    University Gap Funding

    R&D Grant Funds $10Ks $100Ks $Millions

    Private

    Public

    Universities

    Basic

    Research

    Translational

    Research

    Proof of

    Concept

    Business

    Formation

    Expand and

    ScaleIPO/M&A

    SBIR = Small Business Innovation Research; STTR = Small Business Technology Transfer

    Figure 4. Gap Funding Within the Landscape of Early-Stage Funding

    Source: Adapted from Jacob Johnson, Mind the Gap: The University Gap Funding Report," innovosource, LLC, 2012

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    11

    4htAP AnDthe ProoF-oF-concePt strAteGY

    htAP a xampl f a gap fdg pgam a

    lvag mpa vm fm fd f

    av. i wa ad y Wllam J. v

    Lg c f epm ad tlgy

    Advam a uc sa Dg, pap

    w calfa halca Fda, r

    Wd J Fda, ad b All haml.

    htAP a mpv pgam ala

    mmala f vy a al

    lg w pal f dg ala

    ad xpadg a f dvd.

    i f Poc ag f dvlpm, wl

    g a gal lgy ala mdl

    dfy vl, -avg al lg.

    Th Wllam J. vn Lbg Cntrt v Lg c ff pgam ad v faly, a, ad d d

    mmala f v lg fm

    a. A f agy

    mmala ml kw a Poc.

    t Poc p dgd dm

    mak faly f a v y dfg al

    pfma aga mak d, dlvg

    g-qaly adda w dd f mmal

    . A Poc ag, a ma f d

    fdg f pyp dvlpm ad a d

    mmala pla gfaly a

    val f lgy, makg m aav

    v ad p.

    i 2010, u.s. Amy tlmd ad Advad

    tlgy ra c (tAtrc) ad Qalmm

    i. pvdd v Lg c w ga fdg

    adap Poc p a pa f a gal wl

    al lgy ala pgam. t av

    g dfy ad ala mmala

    f vy ad a lg wl al a ld add mdal d f

    mlay pl ad faml.

    Wllam J. v Lg c f epm ad tlgyAdvam a uvy f calfa sa Dg

    t v Lg c wa fdd 2001 ala mmala f uc sa Dgva makpla, f ad fala xag f da w uvy ad

    dy, ad ppa d f pal wkpla. s p, a

    vlvd w m a 300 pj, advd m a 200 faly mm ad gada d,

    awadd $4.6 mll p-d ga 82 pj, ad ppd a ad gw f 32 a-p

    mpa. cllvly, mpa av ad m a 200 j ad av vd m a

    $100 mll fllw-p pva apal da.

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    12

    A Unqu Prgramug wl al lgy ala

    av a a mdl, v Lg ad htAP p

    a a q pgam a wld

    maa a gal f, y ad ladap

    f pal appla y mvg xpl

    qm a al lg wl. i

    add, htAP amd dffa lf fm

    lgy ala y qalfyg appla

    ad aly d , a alyg ly v pf pal.

    i htAP p, appla w f qd

    m a am f (soi), ldg a

    vvw f lgy ad ppd appla.

    soi gdd m f a al pal f

    dpd xp jdg ad falad al

    g f appla ad lgly, ag f

    dvlpm, ad pgam f. Fllwg a day

    g ad lv va m a fll

    ppal, a fal d f 12 papa wa vd mp f f f awad f p $100,000,

    alg w a ya f mg fm a v

    Lg adv.

    Application Results. A f pgam, v

    Lg dad a w v

    ad a s calfa

    g pal appla. htAP vd

    64 soi p fm 11 a

    g. soi fm uc sa Dg, uvy

    f calfa a iv (uc iv), ucLA, ad

    uvy f s calfa (usc) pd

    alm 90 p f pd. t

    mag 10 p gad fm pal,

    a , ad a fda. A majy

    f m w ld y m faly

    mm fm l f gg

    md, w appxmaly f appla

    mg fm mldplay am pg

    dpl.

    Appla ppd pj a fv ag

    f al lgy pag a ag f lgyk. t ldd ca Dlvy effy ad

    om, baval iv, Dag

    ad Mg Dv, sgal ad tap

    Dv, ad tap Ag. t lag a

    f appla (36 p) ppd pj f

    Dag ad Mg Dv, wl tap

    Ag w ppd ly 4 p f soi.

    Appxmaly -d f all appla lvd

    Goals of HTAP

    Identify early-stage, university-based

    technologies with the potential to:

    Directlyorindirectlyreducethecostof

    ala dlvy;

    Drivethedeliveryofaservicetoalower-costg;

    Useskilledprofessionalstimemoreefficiently

    ( al l-ad dvdal)

    Apply cost-saving health technologies for:

    Chronicdiseasemanagementathome;

    Telehealthservices;and

    Diagnostictestsandprocedures

    Diagnostic andMonitoring Devices

    Surgical andTherapeutic Devices

    Care Deliveryfciency and Outcomes

    BehavioralInterventions

    TherapeuticAgents

    23

    18

    15

    6

    2

    Figure 5. Number of SOIs by Technology Category

    Source: von Liebig Center Analysis

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    Alag cmmala f c-savg hal tlg 13

    lgy wld dly lw f dlvg

    ala, wl w-d ggd

    pd wld mpv pa a, mpv

    qaly f a f a pala g, .30

    M a 20 soi ppd dag ad

    mg lg, w may aly

    da d w am m ffvad l xpv. Dv f m mg

    a al d y falag daa

    ll ad pg pvd pal wag

    f m pd f ll. bf a

    ld a da fqy f pala ad

    dd a f adm.

    oly x soi ppd lg f aval

    v. t m f m wa aly

    lw gv gwg lvl f a pv

    ad wll amg al pla, mply,

    ad pvd w d a ala

    . oy ad lfyl-lad k fa

    gfaly a dd f dvlpg ly

    d a da, yp,

    ad a da. tf, agg m

    av al pvg f

    d mpvg gg maagm f

    da d .

    i la wy fw appla agd

    aval v. o a may a

    f wll w al dyad mgg f av ag a

    lavly dvlpm. ra may

    al am a p w a fd

    av ag wll lvag xg lg,

    a a lk f pp mmal

    w dv. Wav a, pj

    a Ml Madm ( p)a ml

    l f a-m wg mala ppd y

    D. Mal L a uvy f calfa a iv

    dma pal pw f -avg al

    lg a f agg av.

    Screening Process. All soi w ally d

    adg a lgly qm,

    pv pgam gal, ad w

    pj wa yd Poc ag. (s Fg 6

    fllwg pag.) t 28 soi a pad al

    g w valad y a xpadd pal f

    vw ad a mpa f lav mdal

    mpa ad lgal vly.

    t 12 fal w a pad w a v Lg

    adv ppa f -p pa a

    pal f dpd xp jdg a v Lgfal sa Dg. Jdg d a wgd

    g ym ad f akg l f

    av w, ldg D. oa, v p

    $100,000 adva lg wad

    mmala. t awad w jd

    a pd f d dlg add ay p

    q fm jdg ad vfy pa flg

    a. t w wkd w v Lg

    adv a a lgy dvlpm pla,

    dg, ad ga paym ml. t ad

    ya-lg mg pgam.

    Photo 2: Mobile Mandometer

    Credit: Jenny Nolstam, The Mando Group

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    14

    Initial Screen

    of All SOIs

    Secondary

    Review of SOIs

    In-Person

    Presentations

    Winners

    Selected

    12-Month

    Program Begins

    64 28 12 4

    SOIs screened for:

    Eligibility

    Fit with

    impact/interest

    areas

    Stage of

    development

    Expanded panel

    reviews SOIs for:

    Relative medical

    importance

    Technological

    novelty

    Finalists present to

    a panel of expert

    judges

    Due diligence on

    tentative winners:

    Open questions

    Patent ling

    status

    Awardees work with

    a von Liebig Center

    advisor to develop their

    plan, budget, and

    payment milestones

    Screening &

    Selection

    Researchers begin

    by submitting a

    statement of interest(SOI), including an

    overview of their

    technology and

    proposed application

    vLC64 28 12 vLC

    Screenin &

    R s r hers begin

    by submit ing a

    st t m nt interest(SOI), in uding n

    verview of their

    t hnology n

    pr p s applic ti n

    Figure 6. HTAP Screening and Selection Process

    Source: Booz Allen Hamilton and von Liebig Center

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    htAP Winners

    Awad w mad f am f fm uc iv, uc sa Dg, ad ucLA, pg w

    aly-ag mpa ad w am w p-pa ag a. t wg pj d

    f w p-f-a dag l, a ld-ad pa am plag ym, ad a map-

    ad wg-l maagm l. b dag l w plafm-ad va w applaf mlpl da, wl am plag ad aval v lg agd a

    ad y, pvly. All w pad a la w f ky al f -avg al

    lgml, lw-pw , wl wk, ad ld mpg.

    Microscopy on a Cell-phone as a Diagnostic Tool (LUCAS)Aydogan Ozcan, PhD, University of California, Los Angeles

    STAGe

    CATeGoRy

    CoNDiTioN

    Company Formed

    Diagnostic and Monitoring Devices

    Multiple

    iMPACT

    eNABLeRS

    Cost, Quality, Access

    Microelectronics, Sensors, Wireless

    t ucLA gp pd a l-f, -p magg mdaly md LucAs, w al val

    ll-p vd mp ad dag l, pvdg a mpa l va

    al md d. t f appla f LucAs cmpl bld c (cbc).

    Mdy ad maly a dppally g ld fm -p g ad dfad

    ppla, palaly lvg al y aa f ud sa. Pvy, p a

    ala, p , ad lw lvl f paal da a pdpg fa. o maj plm

    affg yg ld dfad ppla vlaly f fllwd y ama ad

    p . A al laay f ad dag ad maagm f d a cbc,

    f m wdly dd laay md.

    W a avalaly f cbc l, pya, pya aa, pa wll

    a p mak a dag ad p g dg dg a al pa a a

    a ak pla paally ayw, w l la a v (a mpla

    p mm). t plafm a al d, g lmd, gd fal mdal

    v. F, y dg - a a dg ld pm d laa,

    pvd a ap gfa addal val f mlv . t f pala

    mpa f may gaa a a ally dfdd ad dpd gvm

    plap ag.

    Alag cmmala f c-savg hal tlg 15

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    Low-Cost Semiconductor Test Strips for Accurate In Vitro DiagnosticsChi On Chui, PhD, University of California, Los Angeles

    STAGe

    CATeGoRy

    CoNDiTioN

    Pre-incorporation

    Diagnostic and Monitoring Devices

    Multiple

    iMPACT

    eNABLeRS

    Cost, Access

    Microelectronics, Sensors

    t pj k xpl a lw-, a-gd lgy f apd, p-f a dag

    (.g., emgy Dpam, iv ca u, amla, pya ff, .). Poc daa a

    ad ad dma 10 m ga vy, w l avalal m. t f

    dag ag f lgy a ada jy mak a appa aly ld ampl,

    a vy lw a mmdaly fllwg a aak. t plafm lgy wll pakagd

    a mpl adld ad fad w a dpal p ad wll lmaly appld

    da dag p-f-a a w a f , fa l, ad lw a al f

    adp, pally aa w ala a adqa.

    GPU and Cloud-Based Next-Generation Cancer RadiotherapyTreatment PlanningSteve Jiang, PhD, and Yuanyuan Zhou, PhD, University of California, San Diego

    STAGe

    CATeGoRy

    CoNDiTioN

    Pre-incorporation

    Efficiency and Outcomes

    Cancer

    iMPACT

    eNABLeRS

    Cost, Quality

    Cloud Computing, Wireless

    i ud sa, a w-d f a pa a ad w adapy dlv a lal d

    f ada m kll a ll wl pag dg aly ga ad mal .

    t am mplx ad gly pa pf. tam plag dd y pla g a

    ddad mp ad fwa ym alld a tam Plag sym. A fd am pla

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    i f ak 1 2 wk f a lally apal am pla avd ad appvd y

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    maa daa ad dffl a daa amg .

    i pj, vga wll dvlp a x-ga, w-ad am plag ym

    mplyg gap pg (GPu) fwa ad ld mpg. tam plag wll

    pfmd ld, ad pal wll mply pay a f f pg a pla. Mv, w ym, GPu-ad mpa g d pd p mpaally v ak

    plag p, a a pmal am pla a ampld vy apdly ad g

    gfaly l pya m. cmg f f ld mpg ad GPu g-pd pg,

    w ym wll d f am plag, pfal m, ag

    am daa ag, ad mpv la f adapy dv.

    16

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    Mobile Mandometer for At-Home Weight NormalizationMichael Leon, PhD, University of California, Irvine

    STAGe

    CATeGoRy

    CoNDiTioN

    Company Formed

    Behavior Modification

    Obesity

    iMPACT

    eNABLeRS

    Cost, Access

    Sensors, Wireless

    t Mad Gp a dvlpd wa appa a ffv am f y, fa a ly

    dmad apy a lavly xpv l-ad pgam w pa a ad

    mal fd ak pa g fdak a ag av dg ad w

    mal. Pa a mal w a Madm(mad ma i a La), w f a

    al a d a d pla a d fma a ag av a mall m.

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    t mak pgam avalal may m ppl, gp pp d f am

    y mvg f l. ty wll pw f P ad Add pag ym dvlp: 1) a ml malm fdak dv a wll lp pa la g ay dg

    a mal, 2) a ml dv a ppl a ly w y a gy, ad 3) a ml val

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    malm fdak dv a wll m l xpv pd, a galy mpvd paly,

    ad a mma wlly w map.

    Alag cmmala f c-savg hal tlg 17

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    18

    Nxt Stps fr HTAP Wnnrst awad a w wkg wad mplg

    dvlpm ml a a am ald

    w gda fm v Lg adv. t mg

    ad yp f a w ga wad v Lg adv vay adg

    pf ma ad pj ag f

    dvlpm. MbA d fllw fm uc sa

    Dg' rady sl f Maagm av

    agd f pj w pp

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    ad pla dvlpm. hwv, d

    gal am: dma Poc ad df a

    mmala paway.

    ov f ya, awad wll d

    a df m d ad mak

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    plly mmd a mmala pawll

    al wk w v Lg adv vw

    mdl a appa lva f lgy ad

    g wgg p f ag a mpay

    kg a l. cg a mmala

    paway a a mplx ad dffl d.

    cqly, v Lg wll wk w D. c ad

    Jag d ad q a:

    Lkld f g pa p

    W v a plafm lgy

    a mal mpvm

    capal qm

    Mak dyam

    iv awa pal

    Pal ag a ap ad

    lgy

    5LooKinG AheAD

    Photo 3: Disposable Semiconductor Test Strip Prototype

    Photo 4: GPU and Cloud-Based Cancer RadiotherapyTreatment Planning System

    Credit: Chi on Chui, UCLA Engineering

    Credit: Steve Jiang, UC San Diego Moores Cancer Center

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    19

    if a mm f c Jag am wa l

    lgy fm pv vy

    ad k apal a a mpay, v Lg wll

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    pp. Fdg p mg ld applyg

    f a small b iva ra (sbir)

    a appag aly-ag v g

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    gda w ppa f fmal pa

    v.

    D. L ad oa, w av alady fmd

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    d apal, wll p a dff pa fwad

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    advam da.

    D. L ad am wll wkg w gda

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    ad a al pyp f Ml Madm,

    w jv f g ady f pd a

    d f htAP pgam pd. if am

    mak ff pg, v Lg wll al

    pvd gda makg agy ad mak

    d addal v.

    D. oa v, LucAs, wll fllw a dff

    pa. Fd fm htAP awad wll d y oa ra Gp a ucLA dvlp

    pf appla f LucAs f p-f-a cbc

    g ld gp htAP ppal. A

    am m, D. oa w mpay, hlm, LLc,

    wll pva vm apal f dvlp

    LucAs plafm f addal appla f

    lgy. v Lg wll wk w D. oa

    ad ceo f hlm d mak ad

    pa a qd f-

    ad makg pla f appla f LucAs f

    cbc g.

    iv ad aly pg f awad,

    a D. oa ad L, gly agg.

    t a aly aa pva apal

    dma ll a pl f v wllg

    ak g-k vm -avg al

    lg, v a aly-ag f dvlpm.

    W add f gda fm v Lg ad

    ga fdg fm htAP p, LucAs ad

    Ml Madmav a gd a f vvg

    mmala p ad dlvg f

    pa a a lw .

    earl insghts and CnsdratnsA htAP awad fg aad, wll

    lp llma fll mpa f htAP v m.

    Alg htAP wg av a ll a

    aly ag, a plmay g a a ff

    gda f gvm, vy, ad mmal

    akld w a gal f alag

    mmala f -avg al lg.

    Changing Industry Dynamics. Stakeholders should

    increase awareness among researchers about the

    implications of industry convergence and changing

    payment models.

    A a vga lg w

    pal d ala , mpa

    a awa a w vg a

    ala, lf , ad lmma

    d a aff dvlpm qm

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    wl lg v. A a l,

    y wll d apa ml y ad daa

    am adad add us Fd

    ad Dg Adma appval p f a

    ypal mdal dv.

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    Alag cmmala f c-savg hal tlg 20

    i qally mpa f dvlp f aly-ag

    al lg dad agg paym

    ad mdl. A dy f

    wad m gad ad aal mdl

    f a dlvy, w al lg wll d

    ga w a ag f al fma

    lg, ldg l al d.

    ra wll al d apa

    mpa f aval daa gad d f

    adal a g a lp al a m

    l vw f pa.

    Program Specialization.Funders and universities

    should consider the value of programs that target

    specific areas of need and opportunity.

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    f pala. by alg m agd

    pgam jv, fd ad pgam fala

    a mpv dd f dfyg akg

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    Regional Program Models.Universities and funders

    of acceleration programs should consider the value

    of regional models and how unique requirements will

    affect program development.

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    f a ad p a xd

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    F htAP, v Lg ald pal agm

    w papag v add

    qm f a ml-vy pgam, ldg

    g ga paym a ad

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    National Referral Network.Stakeholders should

    consider creating an actively managed national referral

    network that connects new technologies to funding,

    investment, and commercial opportunity.

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    mpllg a da. bad pgam,

    a htAP, ff f f aag a dv f da a a lag ppla f a.

    i m a, wv, al avalal fdg fall

    f wa ay pp all wy

    m. sm v may al m

    mak a pala pgam, y ld pm f

    valad aga dff a.

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    fal wk f aly-ag al lg.

    A avly maagd aal wk a gag

    v, v, ad mmal lad a

    pa wld a addal ppy f

    pmg a fd fdg ad mmal

    paway yd d f a gl pgam.

    Commercial Insight. Industry should work more closely

    with universities and funders to establish stronger

    connectivity between academic research and defined

    commercial needs.

    o f m mpa akaway fm htAP

    fa pg d f g

    w mmal lad ad vy a.

    W dv laay, m

    a a pdg a pf mak

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    mmal . t l a g paly

    f malgm ad ffy a aly-ag

    lg amp fd way mak ad

    dy k va. cmmal paway

    may v l la a f -avg

    al lg. W ga d ad

    dfd mmal pp, p wll

    m ld lp a dvlp

    lg, ad v wll av dd

    f .

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    21

    enDnotes

    1. The Scientist, tp t iva 2011,

    Jaay 2012. Avalal a: p://-.

    m/2012/01/01/p--va-2011/

    2. Ka Famly Fda, hal ca c:

    A Pm, May 2012. Avalal a:p://www.kff.g/a/7670.fm

    3. c f Mda & Mdad sv, off

    f Aay, "naal hal expd

    Pj 2010-2020." Avalal a:

    p://www.m.gv/ra-sa-Daa-

    ad-sym/sa-td-ad-rp/

    naalhalexpdDaa/Dwlad/pj2010.pdf

    4. t cmmwal Fd, Wy n

    b? rl fm naal sad

    u.s. hal sym Pfma, 2011,o 2011. Avalal a:

    p://www.mmwalfd.g/Pla/

    Fd-rp/2011/o/Wy-n--b-2011.apx

    5. t bkg i, eglg c f

    hal ca rfm, bdg v:

    ffv p add lg-m al a

    pdg gw, spm 2009. Avalal

    a: p://www.kg.d/a/

    p/2009/09/01-

    6. u.s. cgal bdg off, tlgal

    cag ad Gw f hal ca spdg,

    Jaay 2008. Avalal a:

    p://www..gv/pla/41665

    7. b M.b., Ja s.h., ad blmal D., hal

    ifma tlgy: Layg t ifa

    f naal hal rfm, hal Affa, J

    2010, 29(6): 12141219.

    8. c c., Gma, J., ad hwag, J.,The Innovators Prescription, MGaw-hll, 2008

    9. Al, W.K., Dvg iva i Lag

    cpa i: callg Fad y Lag

    cpa, The MIT Entrepreneurship Review,

    Apl 2010. Avalal a: p://m.m.d/

    al/dvg-va-lag-pa--

    allg-fad-lag-pa

    10. cg h., Vaavk W., ad Jl W,

    Open Innovation: Researching a New Paradigm,

    oxfd uvy P, 2006

    11. Pbs. og, Who Made America, Innovators, Herbert

    Boyer. Avalal a: p://www.p.g/wg/

    ymadama/wmad/y_.ml

    12. G, Corporate Chronology. Avalal a:

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