Running A Biotech Company
Kent E. Pryor, PhD, MBA
Lab to Launch – San Diego
Running A Biotech CompanyRunning A Biotech Company
• Every company is different, but certain basics remain the same– Legal–Money– People– Information Technology– Operations
• The question isn’t if you need the infrastructure—the question is how you develop it: internally, externally, or a hybrid
Running A Biotech Company
Lab to Launch – San Diego
• Intellectual Property
• Business Formation– Corporation or LLC
• Financing Documents
• Licences and Other Contracts
• Confidentiality Agreements
Legal
Lab to Launch – San Diego
• You will need multiple lawyers who specialize in different things
• One of the first things you are likely to do is license IP from somewhere—use someone knowledgeable to help you negotiate
• Confidentiality is enormously more important than you are used to in academia
Legal
Lab to Launch – San Diego
• Finance– Company
ownership– Debt / Obligations– Banking
• Accounting– Purchasing– Accounts Payable– Financial
Statements
• Payroll
Money
Lab to Launch – San Diego
• Learn the basics of accounting and how to look at financial statements yourself—accounting is the language of business
• Do not become an accountant—rent or hire that expertise
• Corporations need to do taxes at year end; LLCs need to issue Forms K-1
• Your investors will not expect profits, but they will expect good cash management
Money
Lab to Launch – San Diego
• Human Resources• Compensation
– Salary– Equity
• Benefits– 401(k)– Insurance
• Contractors and Consultants
• Managing Up and Down– Board of Directors– Employees
People
Lab to Launch – San Diego
• Human resources policies grow over time, usually a little slower than you need them
• Think early about how to structure compensation—this may depend on how the company is organized and how you finance it
• Managing employees and dealing with investors and the Board of Directors are skills you probably did not learn in science grad school
People
Lab to Launch – San Diego
• Email & Calendars
• Data Storage and Collaboration– Hard copy data– Digital storage
• Webpage• Computer
Hardware
Information Technology
Lab to Launch – San Diego
• Cloud computing is fairly easy to set up, is scalable, and does not require you to purchase (and maintain) a server farm
• Buy a domain and set up email and calendars with a reputable provider for confidentiality and a professional appearance
• Do not forget you need policies to deal with paper: lab notebooks, signed contracts, etc.
Information Technology
Lab to Launch – San Diego
• Facilities—Offices, Labs, Capital Equipment– Real or Virtual?
• Business License• Environmental
Health & Safety• In-house vs.
Outsourcing– Academic labs– Contract labs
Operations
Lab to Launch – San Diego
• What types of people do I need internally?
• What types of capital equipment and facilities do I need internally?
• Where can I get the resources to fill in the blanks in my company?
• How much money will I need, and when?
The Big Questions
Lab to Launch – San Diego
Kent E. Pryor, PhD, MBA
Thank you!
Lab to Launch – San Diego
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