|
MDA Venture Philanthropy (MVP) is a new subsidiary of MDA exclusively focused on the funding and commercialization of treatments and cures for neuromuscular diseases.
MVP will:
- Leverage MDA’s investment to date of over $1 billion in science, manpower and infrastructure.
- Make strategic investments in therapeutics with promising paths to market.
- Conduct professional due diligence in evaluating investment opportunities.
- Work with donors to target major gifts to specific disease areas and engage donors directly.
- Seek to grow its assets through a return on investment strategy.
- Measure its impact in objective and definable terms.
A strategy for lowering barriers to therapeutic development…
MVP will make targeted investments in companies for which the therapeutic of interest is unlikely to advance via traditional funding avenues due to the perceived risk of a small market, lack of a clear regulatory path, or new technology. Co-investors and follow-on funders with complementary skills will be cultivated actively in the form of venture capital groups, other nonprofits and larger biotechnology and pharmaceutical companies. Exit points for MVP funding may include the situations in which 1) a therapeutic progresses to phase III or is approved; or 2) significant funding from follow-on investor(s) is received. Return on investment strategies for MVP may include revenue sharing from licensing agreements or commercialization of the therapeutic, or less commonly, sales of preferred stock. All returns are reinvested into the MVP fund from which they were derived. MVP portfolios are sustained through ongoing donations and returns on its investments.
MVP uses elements of the venture capital model…
MVP launches with an initial stake of up to $10 million dollars from its parent organization, MDA, which will be augmented by donor commitments. Four separate rolling funds are maintained for DMD, ALS, SMA and other disease projects with great potential. MVP holds regular weekly teleconferences open to all MVP Board members and advisors, at which decisions to advance projects to the next stage of evaluation will be made. Funded projects are overseen by MVP staff and are reviewed biannually in person by members of MVP’s advisory boards. In addition to the diverse qualifications of MVP’s staff, advisory boards and ad hoc scientific experts, MVP utilizes well-established outside contractors for formal financial and legal diligence.
A more interactive role for donors…
Donors will be able to target funds to one of four separate disease portfolios: ALS, DMD, SMA, and a composite fund of significant opportunities in other diseases. Donors are able to pay out committed funds as project goals are met and are asked to participate in a rigorous self-evaluation process to determine if MVP is meeting its goals as an organization. Donors are encouraged to play an active role by serving on the MVP Business Advisory Board.
Partnerships with co-investors are win-win…
MVP’s return on investment strategy is typically non-dilutive. Its scientific diligence is extremely thorough as its experienced staff has a broad understanding of the field and access to many experts in the academic and clinical communities. MVP also provides benefit to co-investors via its deep understanding of and access to future market populations. Although MVP has the capability of conducting professional diligence in the areas of finance, management and intellectual property, it welcomes the opportunity to partner with other funders who have complementary skill sets.
Funding recipients are evaluated professionally…
MVP funding recipients should know that MVP looks upon its funds as “investments” rather than traditional grants —funding commitments are structured as milestone-driven contracts. Unlike a typical grant-making agency, MVP is committed to a rolling, 13 week, iterative evaluation process that reviews the science, management, financials, legal issues and intellectual property of the company. As a “partner” and not just a funder, MVP will help to cultivate follow-on investors while its access to patients, experts and research infrastructure can potentially offset some costs of drug development.
|
