Biotech Opportunities for Start-Up Firms in Japan and Asia

Transcription

1 Biotech Opportunities for Start-Up Firms in Japan and Asia - Corporate VC s Perspective - Yoshitaka Yoneyama, Ph.D. President & CEO Astellas Venture Management LLC. April 25, 2006

2 About Astellas Pharma Inc. ( API ) Created by the merger of Yamanouchi Pharmaceutical and Fujisawa Pharmaceutical on April 1, X = Currently holds the 1st largest market share of ethical pharmaceuticals in Japan Headquarters in Tokyo About 15,500 employees on consolidated basis Global pharmaceutical company originated in Japan Forecast for FY 05 (Billion yen): Net Sales 885, Operating Income 205, Ordinary Income 211, Net Income

3 Meaning of Astellas Astellas expresses the idea of aspired stars and advanced stars based on the Latin stella, Greek aster, and English stellar, which all refer to stars. The Astellas brand mark is depicted by the Flying Star, a beautiful shining star moving toward the future. 3

4 About Astellas Venture Management ( AVM ) Date of Establishment: Sep., 2005 The Corporate VC of Astellas Pharma Inc., also acting as GP for venture investment business of old Fujisawa (Fujisawa Investment for Entrepreneurship, established in Sep. 1999) and Yamanouchi (Astellas Venture Capital, fka Yamanouchi Venture Capital., established in Nov. 2000) Funds under Management: Total $67.5M (AVF I, AVC, FITE, FITE-II) Business: Investment in emerging biotechnology companies Mission: Through equity investments 1) To support growth of the portfolio companies 2) To survey leading-edge technologies/products for co-development and co-promotion opportunities for API 4

5 Corporate VC Pharma s strategic option for alliance; Access to new technologies and products emerging from biotech arena Provides a new opportunity of collaboration Addition to traditional alliance engagement Active commitment from earlier stage Successful business model 5

6 Our Investments AVM invests in; Emerging biotechnology companies engaging in; R & D of new therapeutics and their seeds Development of enabling drug discovery technology Therapeutic areas; API s focus Franchise Area Urology Immunology and inflammation Priority Research Area Infectious Diseases Diabetes Gastrointestinal CNS 6

7 Our Investments (cont d) Stage of the company: Inception/seed round 1st round 2nd /3rd rounds Up to pre-mezzanine round Basically not mezzanine or IPO round Guideline for investment amount: Minimum $200,000, if inception/seed Average $2-3 MM, if 1st through 3rd round Maximum $ 5MM, if pre-mezzanine Average total $8-10MM per company 7

8 Portfolio Companies AUS APEL AVM API Evolva fidential 8

9 FITE portfolio Physiogenix Renovar AUS VM Adherex Linden FASgen APEL Prolysis API Fulcrum Alba Revivicor TaiGen Neuronautics 9 fidential

10 Pharma Industry Environment in Japan Competition Increased presence of mega pharma companies R&D pressure (cost & productivity) Market size of ethical pharmaceuticals Consolidation M&A in 2005 Astellas Pharma Inc. (Yamanouchi and Fujisawa) Apr. Daiichi Sankyo Co., Ltd. (Sankyo and Daiichi) Sep. Dainippon Sumitomo Pharma Co., Ltd. (Sumitomo and Dainippon) Oct. Aska Pharmaceutical Co., Ltd. (Teikoku Hormone and Grelan) Oct. Cross-Border Business Pharmaceutical market and healthcare cost 10

11 Venture Investment Business of Other Japanese Companies Takeda Pharmaceutical Co., Ltd. Takeda Research Investment Inc. (Palo Alto, CA) 2002 Daiichi Sankyo Co., Ltd. Investment on Thomas Weisel Healthcare Venture Partners, L.P. (Sankyo, 2003) Venture Investment fund with Medibic Alliance (Daiichi, 2005) 11

12 Venture Startups in Japan National Policy Promote commercialization of inventions originated from universities Independent Corporations of National Universities: Double position of university and commercial company Promotion of Technology Transfer: TLO Japanese version of Bayh-Dole Act: University owns IPs Grant and business support (METI, MEXT, MHLW) Number of Venture Startups Hiranuma Plan, 2001 Establish 1,000 new venture companies from universities in 3 years Total 429 venture companies in 2001, cumulative 1,099 companies in 2004 (METI Report, 2005) 12

13 Venture Financing in Japan Government Grants JST (Japan Science and Technology Agency, MEXT) NEDO (New Energy and Industrial Technology Development Organization, METI) NIBIO (National Institute of Biomedical Innovation, MHLW) Government Financial Institution National Life Finance Corp. Japan Finance Corp. for Small and Medium Enterprise Venture Capital Affiliated to Securities firms, Banks, Insurance companies, Independent Public Market MOTHERS (Market Of The High-growth EmeRging Stock) Number of IPO: 8 ( 02), 31 ( 03), 56 ( 04), 37 ( 05), 5 (as of Feb 06) (Source; Tokyo Stock Exchange, Inc.) Nippon New Market Hercules 13

14 Finance and Exit Options Venture capital financing Corporate financing M&A IPO Where and How? 14