ENTREPRENEURSHIP
Year founded
Measuring a serial entrepreneur’s success
Company name Technology focus Estimated venture and private equity funding Major milestones Current status (2015 figures)
By any yardstick, Robert Langer’s creation of 31 start-ups is a testament to his technical and business acumen
1988
ANN M. THAYER, C&EN HOUSTON
Neomorphics Biocompatible materials $6 million Acquired by Advanced Tissue Sciences for $21 million in 1992. Bankrupt in 2002. Technology acquired by Smith & Nephew and in use at regenerative medicine firm Organogenesis.
B
CREDIT: YANG H. KU/C&EN
ind Therapeutics, a 10-year-old nanomedicine firm, declared bankruptcy in May and last month agreed to sell its assets to Pfizer. Although collaborations with leading drug companies had helped Bind move candidates into the clinic, it achieved mixed results there. Toward the end, it was trying to restructure its finances, refocus its R&D, and partner its lead candidate. Although such downturns are common in the drug R&D world, this one was a rare setback for a firm based on technology from the lab of chemical engineer Robert Langer at Massachusetts Institute of Technology. By the time Bind was founded in 2006, Langer had already helped create at least 20 companies, generally in the areas of medical devices, drug delivery and development, and tissue and cell engineering. Although there are other notable scientist-entrepreneurs, such as the Institute for Systems Biology’s Leroy Hood and Harvard University’s Gregory Verdine, it is likely that Langer’s record as an inventor and company creator is unsurpassed in the chemistry, engineering, and materials science worlds. The proof is in the pudding. Over three decades, Langer has helped found about 30 companies that have raised an estimated $2 billion in venture capital and private equity funding to date. A large chunk of that—$650 million—went to the mRNA drug company Moderna Therapeutics. And although it’s still early in the life of many Langer companies, they are clearly amassing a remarkable record of accomplishment. In the start-up world, accomplishment can be measured many ways. Investors generally want to see companies get acquired or hold an initial public offering (IPO) of stock. Barring those two options, a company is expected to turn a profit or shut down. Among companies connected to Langer, nine have become publicly traded, raising more than $300 million combined through IPOs—and more through follow-on offerings. Recently, Selecta Biosciences managed to raise a respectable $70 million despite a challenging period for IPOs.
1987
1987
Enzytech Microsphere drug delivery $10 million to $20 million Acquired by Alkermes in 1993 stock deal. Technology in use.
Opta Food Ingredients Microspheres for food applications $10 million to $20 million IPO in 1992. Acquired in 2002 for $28 million; now part of SunOpta. Technology in use.
On par with other venture-backed startups, 10 of his companies were acquired and three merged with other firms. The deals were worth as much as $230 million. At least four Langer-connected companies have themselves created new start-ups. On average, according to the National Venture Capital Association, about 200 biotech and medical device firms receive initial venture capital funding in a given year. That Langer has been able to start up at least one company, if not two or three, in any year is a tribute both to the productivity of his lab and the value that investors assign to his work. The venture capital firm Polaris Partners has invested in at least 20 of Langer’s companies, spending more than $220 million. Noteworthy is that just a handful of Langer’s companies have gone bankrupt or shut down, a record that far exceeds expectations for venture-capital-backed firms. Among biopharma and medical device startups, “more companies fail than succeed,” often within a few years, according to NVCA. It’s also a major accomplishment that the
science originating at MIT continues to be employed, even if the company based on it has ceased to operate. For example, Juniper Pharmaceuticals is testing products that use technology acquired from the now-defunct Combinent BioMedical Systems. And companies that bought the early start-ups still find value in the acquired technology. Of the original Langer firms still operating, most have products in clinical testing. Some of the more recently founded ones are already developing lead product candidates. Many of the companies have partnered with major firms. And a few—including Living Proof, Momenta Pharmaceuticals, and T2 Biosystems—have brought products to the market and are generating revenues. As a result, it appears that Langer has notched another accomplishment, one that has nothing to do with making money. He started his first company, he wrote in a 2013 Nature Biotechnology article (DOI: 10.1038/ nbt.2609), “because I realized it was an effective path for transforming science into life-saving and life-improving inventions.” AUGUST 8, 2016 | CEN.ACS.ORG | C&EN
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1998 1997
Path of ingenuity Langer’s entrepreneurial journey has led to more than 30 start-ups over 30 years.
1992
1993
1993
Focal Biodegradable materials for surgery $59 million $25 million IPO in 1997. Acquired in 2001 by Genzyme for total of $25 million. Technology in use.
Acusphere Microsphere imaging agents $95 million $53 million IPO in 2003. Later delisted. Failed to get product approved. No longer operating.
EnzyMed Combinatorial biocatalysis for drug R&D na Acquired by Albany Molecular Research Inc. in 1999 for $21 million. Technology may be in use.
2006 Bind Therapeutics Nanoparticle-based therapeutics $73 million $71 million IPO in 2013. Bankrupt, assets to be sold for $40 million. Two candidates in clinical testing.
Reprogenesis Tissue growth scaffolds $17 million Merged in 2000 with Creative BioMolecules and Ontogeny to form Curis. Related programs largely suspended in 2002.
Advanced Inhalation Research Pulmonary drug delivery $2 million Acquired by Alkermes for $114 million in 1999. Technology part of 2011 spin-off Civitas Therapeutics. Civitas acquired by inhaled drug developer Acorda Therapeutics in 2014.
2006
2006
2005
Semprus BioSciences Medical device coatings $26 million Completed Series B funding. Acquired by Teleflex in 2012 for $30 million up front. Issues encountered developing technology, but Teleflex expects to file for approval in catheter application.
T2 Biosystems Nanoparticle diagnostics, instruments $93 million $60 million IPO in 2014. Two products launched. $2.8 million in revenues, net loss.
InVivo Therapeutics Scaffolds for spinal cord therapy $11 million One funding round. Became public in 2010. Product in clinical testing. No revenues, net loss.
2007
2011
Selecta Biosciences Targeted nanoparticles $152 million Completed Series E funding. $70 million IPO in June 2016. One clinical and two preclinical candidates.
XTuit Pharmaceuticals Microenvironment-activated drugs $26 million Private. Completed Series A funding. Developing lead candidates.
2008
2008
2009
2011
Seventh Sense Biosystems Microneedle blood collection $33 million Private. Completed Series B funding. Soon to file for marketing authorization in the U.S. and Europe.
Taris Biomedical Urological drug delivery $52 million Private. Sold lead clinical-stage asset to Allergan in 2014 for up to $588 million. Relaunched late 2015 with $32 million investment. Bladder cancer agent in clinical testing.
Kala Pharmaceuticals Mucosal drug delivery $114 million Private. Completed Series C funding. One ophthalmic candidate in clinical testing for three conditions.
480 Biomedical Bioresorbable materials for drug delivery $45 million Spin-out of Arsenal Medical. Completed Series C funding. Scaffold to treat vascular disease/injury in clinical testing.
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C&EN | CEN.ACS.ORG | AUGUST 8, 2016
1998
1999
1999
2000
Sontra Medical Transdermal drug delivery $18 million Merged with Echo Therapeutics in 2007. Technology licensed to Ferndale Pharma Group. Glucose monitoring system in development. Echo’s stock delisted in July 2016.
TransForm Pharmaceuticals Polymorph crystallization $45 million Acquired by Johnson & Johnson in 2005 for $230 million. Technology in use.
Microchips Biotech Silicon-based drug delivery $58 million Private. Four funding rounds. Equity investment by Teva Pharmaceutical Industries in 2015. In clinical development partnerships.
Combinent BioMedical Systems Transvaginal drug delivery $5 million Four funding rounds. No longer operating. Technology acquired by Juniper Pharmaceuticals and now in clinical testing.
2001
“Because I realized it was an effective path for transforming science into lifesaving and life-improving inventions.” —Robert Langer of MIT on why he started his first company (Nat. Biotechnol. 2013, DOI: 10.1038/nbt.2609)
Momenta Pharmaceuticals Complex-sugar-based drugs $40 million $35 million IPO in 2004. Two products approved. Three in clinical testing. $90 million in revenues, net loss.
2005
2004
2004
2003
Arsenal Medical Nanofiber drug delivery $47 million Private. Four funding rounds. Spun out 480 Biomedical in 2011. Developing polymer foams and fiber for tissue therapy and repair.
Living Proof Hair and skin care products $53 million Private. Completed Series C funding. Selling products since 2009. Profitable.
Pervasis Therapeutics Therapies for vascular healing $40 million Completed Series C funding. Acquired by Shire for up to $200 million in 2012. Development of Vascugel halted in 2014 afer Phase II.
Pulmatrix Inhaled therapeutics $48 million Three funding rounds. Merged with Ruthigen in 2015 and went public. Three products in clinical trials. $1.1 million in revenues, net loss.
2011
2012
Moderna Therapeutics Modified mRNA delivery $650 million Private. Four funding rounds. Created four therapy-focused companies. Partnerships with big pharma and nonprofit organizations for clinical development.
Blend Therapeutics Biologic drug conjugates $84 million Private. Completed Series C funding. Now Tarveda Therapeutics. Spun off platinum cancer drug firm Placon Therapeutics in January 2016.
na = not readily available. Sources: Company information, SEC filings, Crunchbase, Informa Strategic Transactions, CB Insights
Year founded Company name Technology focus Estimated venture and private equity funding Major milestones Current status (2015 figures)
2013
2015
SQZ Biotech Cell therapy engineering $6 million Private. Completed Series A funding. Signed Roche partnership worth up to $500 million.
Olivo Labs Dermatological biomaterials Seed funding Materials based on technology developed at Living Proof. Start-up phase with materials in in vivo testing.
