Despite the challenging times for bioscience funding, two ATDC companies successfully raised funds to complete clinical trials and expand footprint respectively.
CardioMEMS Inc., which is developing an implantable device to measure and transmit pulmonary artery pressure, has raised $37.9 million in additional capital. The funds give the Atlanta-based vendor capital to complete a clinical trial of its heart failure pressure management system, called CHAMPION, with 550 patients through 65 heart centers in the U.S. The trial started in 2007 with results expected this summer. The device is a wireless high-frequency sensor implanted in the artery using a catheter-based procedure based on proprietary technology from Georgia Tech. The pressure is measured and displayed on a monitoring system. Following the procedure, patients perform wireless measurements of the pulmonary artery pressure from home. The data is transmitted to a secure database for physician review on a proprietary Web site.
SoloHealth, Inc has raised $660,000 in additional capital. Founded in 2007, the company offers self-directed health-care services. Its first product, EyeSite, is an interactive, self-service, vision-testing kiosk that provides consumers with a free assessment of their vision, information about common eye health conditions and referrals to local eye care practitioners. As of March this year, SoloHealth had nearly 100 EyeSite kiosks in seven U.S. markets — including Atlanta ; Houston ; Richmond , Va. ; and Charlotte , N.C. — and will add three cities this year while enhancing the kiosks’ technology.
With ATDC’s expanded bioscience catalyst team we are available to work with all bioscience companies, from concept to market.
Together with Georgia Bio, ATDC will be hosting a workshop, tomorrow 5/11, to discuss the “nuts-and-bolts” of the Therapeutic Discovery Project Credit. Lined up to join our panel session are Russ Medford of Salutria Pharmaceuticals, Russ Plum of Inhibitex, Katherine Breaks of KPMG, Bill Kitchens of Arnall, Golden and Gregory, Robert Craig an Executive Consultant, and Jeff Trent of Paradigm Partners.
These panel members will bring a wealth of experience on the topic. Several panelists have had direct working experience with the similar 48 sec C Advanced Energy Credit and will be able to provide specifics on how the program may unfold. Russ Medford, CEO of Salutria Pharmaceuticals, was integral in working with BIO to lobby directly for the legislation, and Russ Plum, CEO of Inhibitex, has been interviewing consultants to assist Inhibitex is applying for the Project Credit.
This two hour working session will consist mostly of Question and Answer. So join us tomorrow on the 3rd floor of 75 5th Street, NW, and be ready to ask our panelists your specific questions.
To register:
http://www.gabio.org/event_details.aspx?id=204
When the Health Care Reform Bill (H.R. 3590) was passed on March 23, 2010 it included a Tax Credit or Cash Grant for qualifying small businesses developing therapeutics, molecular diagnostics or delivery vehicles. This tax credit will reimburse eligible companies for 50% of all expenditures spent on a Qualifying Therapeutic Discovery Project during calendar year 2009 and 2010 or fiscal year 2010 or 2011.
The most compelling part of this legislation is the ability to exchange the tax credit for a cash grant. Many small biotech and pharma companies do not have a tax liability and would not benefit from a tax credit. The cash grant option will allow more companies to receive an immediate return.
For example, a $1 million qualified investment will lead to either a $500,00 tax credit or $500,000 check.
The program solicitation will be released by the Department of Treasury, IRS on or before May 21st, 2010. Applications will be be due within 30 days and funds disseminated beginning mid-June.
While the mechanics of the program will be described by the IRS, qualified projects will selected by the Department of Health and Human Services. All eligible companies should receive some assistance, but it is currently not clear how the proposals will be judged and selected, and whether there will be a maximum allocation per project and/or per company.
What we do know:
A Qualifying Therapeutic Discovery Project (Sec 9023 or H.R.3590) includes:
- Therapeutics designed to treat or prevent diseases or conditions (investments made in R&D to further a 505(b) or 351(a) application to the FDA).
- Molecular diagnostic products to be used in direct diagnosis, or in determining molecular factors related to the disease.
- Therapeutic delivery or administration vehicles.
Specifically excluded from this legislation are projects for the development of medical devices. However, we will not know until May 21st whether a medical device used in the delivery or administration of a therapeutic would be considered a qualifying project.
In addition to the above qualifying criteria, selected projects will also result in new therapies, reduce long-term healthcare costs or advance the cure for cancer AND have the greatest potential to result in high-paying job creation and retention, and advance the competitiveness of the U.S. in the fields of life, biological, and medical sciences.
The legislation was modeled after a similar program distributed by the Advanced Energy Manufacturing Credit distributed by the Department of Energy. We anticipate that a similar process will be followed which could include:
- A 1 page preliminary application due within 30 days of the solicitation release.
- A final application due within 60 days of solicitation including an executive summary, scientific eligibility criteria, selection criteria including job creation/retention and U.S. competitiveness, as well as a spreadsheet detailing costs incurred.
If you are attending the 2010 BIO International Convention, a session held on May 5th from 2:00 to 3:30 will provide additional information.
The Department of Defense pre-released its 2010.1 SBIR Topics this morning. The solicitation will be open to proposal submission from December 10, 2009 at 6AM ET through January 13, 2010 6AM ET.
You may directly contact the Topic Manger (listed with the topic) to ask technical questions/clarification prior to December 10th. After this date, your questions and the responding answers will be made public on the website. The DOD is looking for specific solutions to their specific problems A clear understanding of the full problem, mission of the unit needing the solution, and the role of any prime contractors already involved in the solution can be critical information necessary for an effective proposal. Be sure to take advantage of this time to ask questions while you have a competitive advantage.
The DOD components with topics in this solicitation are:
- Army
- Navy
- Air Force
- CBD
- DARPA
- DARTA
- SOCOM
Each component has its own set of instructions, so be sure to read the DOD’s the full solicitation and the component’s specific instructions.
The DOD has its own DOD SBIR search engine to search for topics specifically in this solicitation. All proposals will be submitted through the DODSBIR.net system.
The Department of Homeland Security Science and Technology Directorate, pre-issued its 2010.1 SBIR Solicitation. The full solicitation will be released on November 18th and the agency will accept proposals until 4:30 PM on January 4th. Phase I Awards are up to $100,000.
Topic titles for this solicitation are:
- H-SB010.1-001 Rechargeable, High Efficient, High Capacity Energy Storage
- H-SB010.1-002 Rare Variant Detection Using Next Generation Sequencing Technology
- H-SB010.1-003 Precision Information Environments
- H-SB010.1-004 Molecular Recognition for Explosives Detection
- H-SB010.1-005 Synthetic Biometrics
- H-SB010.1-006 GPS Resolution in Denied Location (GRIDLOC)
For full topic descriptions and the contact information of the Technical Points of Contact (TPOC) for each topic, please read the full solicitation. Proposers are encouraged to contact the TPOC before November 17th to ask technical questions not clearly stated in the topic description (proposers may not ask for advice or guidance on its solution approach, nor submit additional material). No direct contact may be made with the TPOC after this date.
Proposals will be submitted through the DHS’ secure portal; be sure to register early.
Department of Commerce National Institute of Standards and Technology (NIST) has pre-released its list of 2010 SBIR Topics. There are 42 research topics that include subjects like Cryocoolers, RFID-Integrated Sensors, Vertically Aligned Carbon Nanotubes, 3-D Imaging Ssensors, and Barrier Fabrics for Fire Safety.
Full Solicitation will be released on November 2nd, but a list of 42 intended topics is available now. Proposals will be due on January 22nd and Phase I Awards will have a maximum value of $90,000.
Today, the Department of Transportation released its FY10 SBIR Program Solicitation. Proposals will be due by November 16th with a budget not exceeding $100,000. Details and proposal instructions can be found in the solicitation. Topics fall within the following areas:
- FEDERAL AVIATION ADMINISTRATION
- FEDERAL HIGHWAY ADMINISTRATION
- FEDERAL RAILROAD ADMINISTRATION
- FEDERAL TRANSIT ADMINISTRATION
- NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION
- PIPELINE AND HAZARDOUS MATERIALS SAFETY ADMINISTRATION
SBIR and STTR awards are sometimes described as “free government money”. People hear this and immediately start lining up with their hands out. Not so fast. Just because the money doesn’t have to be repaid (like a loan), it doesn’t mean that it is automatically given to every person who wants it. Before you too jump in line with your hand out, make sure you qualify—no need to spend a lot of time, only to find out down the road that you are ineligible.
First, SBIR and STTR awards are for businesses—not individuals. Even then, they are not appropriate for every business. The awards are intended for serious, risky research with a high potential for commercial success—meaning, customers will actually pay you money for your innovative, end-product. Obtaining an award is a competitive process—make sure you CAN submit before you spend time preparing a proposal. So what are these qualifications? Well, here is a list of the minimum qualifications—specific agencies might have additional qualifications or expectations:
- Business is set up For-Profit
- No more than 500 employees in the business (including all affiliated entities)
- Satisfy ownership issues of the business:
- Business must at least 51% owned and controlled by one or more individuals who are U.S. Citizens or U.S. Permanent Resident Aliens
OR
- Business must be at least 51% owned and controlled by another small business that satisfies the above “a” requirement
- Business and proposed research location must be in the U.S.
- The Principal Investigator (PI) must be credentialed (education and experience) in the area of research that the business is proposing—must demonstrate on paper that he/she can lead a formal research study
- The PI must be employed fulltime (usually at least 51%) by the company (NOTE: sometimes for STTR, the PI can be employed by the company OR the partnering Research Institute)
- The proposed research must address a specified agency topic or area of research interest outlined by the soliciting agency—unsolicited proposals are NOT accepted.
Those are the minimum qualifications. If you DO qualify and you DO have an innovative idea that can realistically advance the mission of an agency, then submitting a proposal might be appropriate for your company. Talk to one of the ATDC Startup Catalysts specializing in SBIR (Connie Ruffner, Julie Collins, or John Mills) for more details.
ATDC spends innumerable hours every week coaching entrepreneurs on their investment pitches. We see many entrepreneurs with good intentions make common mistakes and help them avoid common pitfalls as they prepare to present their companies in the best possible light. A great opportunity to observe fellow entrepreneurs in action is next Tuesday May 19th at MIT Forum of Atlanta’s Run it By the Pros workshop.
At Run it By the Pros four new companies will present their business plans to a panel of experts. The Venue : Law Offices of Carlton Fields, One Atlantic Center, 1201 West Peachtree Street, 49th Floor, Atlanta, GA, 30309; Time: 3:30 p.m. – 7:00 p.m. You can register here (members only but TAG members are eligible and can attend at the MIT Forum Member $25 rate). Clarification: You must be a member of the MIT Enterprise Forum to attend.
ATDC graduate entrepreneur Patrick Taylor of Oversight Systems will serve as the experienced entrepreneur on the panel along with VC’s Mark Johnson of Total Technology Ventures, Linnea Geiss of Arcapita, and Lawrence Gold from Carlton Field.
In addition to attending Run it By the Pros many an entrepreneur will find our articles on Telling a Compelling Story and Top VC Questions valuable resources when prepping to pitch their own deal.
The level of excitement at the ATDC was high this week with news of member company SoloHealth's recent funding and expansion plans. SoloHealth makes EyeSite™ vision testing and new patient generating kiosks that you can find in stores like Walgreens and Kroger. In the press release, SoloHealth announced that it will be teaming up with Transitions Optical, Inc. and other leading eye care companies to deploy a large number of the EyeSite kiosks in a major US market this summer. This recent investment, which includes funding from various private investors, gives SoloHealth and its partners the opportunity to grow and expand the innovative EyeSite concept.
A quote from the recent press release:
“SoloHealth, combined with these optical industry leaders, is helping to create new ways to drive additional traffic to eye doctors,” said Bart Foster, CEO and founder of SoloHealth. “Results have shown that of the people who have used the EyeSite kiosk, over 25 percent have never visited an eye care professional and 49 percent reported family history of eye disease. Many of those have gone on to book appointments with a local eye doctor. EyeSite self-service vision testing kiosks educate people about the health benefits of seeing an eye doctor on a regular basis.”
SoloHealth has had great experience with the kiosks in Atlanta and has screened over 100,000 people since late 2007. The nearest location to ATDC is in the "Fresh Fare" Kroger in Buckhead. Check it out!