Session 5: January 22, 2008

From Idea to Opportunity: Our First Case Study

  Guest: Dana Mead (KPCB)

Quote of the Day

"God is in the details." ~ Mies van der Rohe

Summary

This is the first of two sessions where we discuss the differences between an idea and an opportunity. In this session, we look at the particular challenges of new ventures in the life sciences.

Required Readings (Policy on Required Readings.)

• Readings from the Textbooks:
• Technology Ventures (Dorf and Byers): Ch 6 Risk and Return; Ch 7 Venture Creation and the Business Plan (Highlights: 6.3, 6.5, 7.1, 7.2)
• Additional articles to read:
• Case Analysis Guidelines
• Case:
• Advanced Inhalation Research [in the course reader]
• Watch the following short video clips:
  • Paul Yock (Stanford) - FDA and Medicare
• Gordon Ringold (Surromed) - Types of Companies in Biotech
• Gajus Worthington (Fluidigm) - Breaking Convention: Technology First, Market Opportunity Second

Study Questions (Policy on Study Questions.)

• What makes AIR an attractive opportunity (and not just a good idea)?
• How will AIR make money?
• Identify the major risks in each of these categories: technology, market, team, and financial. Rank order them.
• What are the advantages and disadvantages of each of the business models and funding options they could pursue?
• How are "life sciences" start-ups different than those in "information technology" industries?

Team Case Analysis (Policy on Case Analyses.)

If I were Edwards and McGuire at the end of the case, I [would/would not -- choose one] sell the company to Alkermes. Why?

 

Cases must be submitted by 9AM on the due date.

 

Note: This is the first submission for the Tuesday teams which should be sent to the appropriate homework list. If you are a Thursday team, do not submit a case by email. All teams will still be responsible for the material in class.

 

Submission Format

1.      PUT IN EMAIL HEADER: E145: Case Number, Case Name, Team Name
          i.e. E145: Case 1, AIR, The Randys

          You must submit all cases with this format for the subject line. Your assignment may not be graded if you fail to do so.

2.            PUT IN CASE STUDY:

• Names of the students in the team
• First sentence should be whether or not you agree with the prompt