Looking to distrupt the biotech scene of NYC? Experts and industry leaders gathered to discuss how to best navigate the life science startup landscape in New York at "Pathways to Commercial Success in Life Sciences and Medical Devices" breakfast panel, hosted by Wiggin Dana LLP on November 21, 2017. Panelists included:

Bert van Been, Head of Formulation R&D at Orion Corporation
Sapna Palla, Partner, Wiggin and Dana
Nicole McKnight, Managing Director, BioLabs New York
Peter Alff, Executive in Residence, Kairos Ventures
Antti Uusiheimala, Co-founder, Cocoon Skin
Michael Kasdan, Moderator, Partner, Wiggin and Dana

Here are some of the hotly discussed questions from the panel session.

1. What is the biggest challenge for startups in NYC?

It's important to find funding first. In NYC, there is not much appetite for early stage, high-risk startups compared to Silicon Valley. There is plenty of cash to go around, thanks to the robust banking business, but it is simply not the same type of investment environment. For life science startups, look out for big pharmaceutical companies that are outsourcing their R&D to smaller companies in the U.S. and abroad. One of the more commonly outsourced items is clinical trial - now many of them smart phone-assisted.

Also do not forget that it's not all just about getting the capital. Finding the right team of people is always harder than getting the capital. Getting a workspace for your team, at a reasonable price point, is a real challenge too in New York.

2. As a founder, how do you protect yourself when getting funding?

Find a balance between scientific traction and being capital efficient. It is increasingly challenging to get early funding because everything moved up a chain; there is a big gap between the initial friends & family funding and angel funding. This is why an early education is important for founders to prime/de-risk themselves to prevent any unfair investment deals.

For university researchers/tech transfer office, working together with big pharma is a great option. Be extremely careful with the ownership language of the contract. The traditional model of early licensing-out-everything may not be ideal - seek a research partnership instead. More and more CROs are taking equity.

3. What technology is hot or not, and how do we tell them apart?

First, look at the latest medical needs. Then follow the industry news. Right now the new products coming out are approximately 40% small molecule and 60% biologics. Biologics are at great advantage because they are targeted to the patients, but the manufacturing cost is higher and the process is more complicated. You will need to partner with the manufacturer, which means having to get more funding. Other "hot" items include therapeutics, which has more predictable performance.

Also remember that a full-blown human trial is usually not necessary for early stage startups. Although, if the product is a tool, verify that it works properly first!

4. How can you come up with a smart Intellectual Property strategy for biotech startups?

Start thinking about your IP protection early on. The sooner you learn the patent landscape of your art the better, because you can start making the necessary modifications to your invention and application to better your chance of patent grant and marketability. This will create a cost upfront, but it's worth it.

Network with the local startup community and find experts who can help you. There is a very active, supportive group in the city, which is one of many advantages NYC can offer.