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19 Iron Chelators & HIF-1α: ANew Frontier forSkin Rejuvenation
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inducible

Part IV
https://t.me/medicina_free
Translational Aspects

How toOvercome theValley
https://t.me/medicina_free
ofDeath fromBasic Science
toClinical Trials
KellyBridgham, AkashChandawarkar,
HalleyDarrach, andJustinM.Sacks
20
20.1 Introduction
Biomedical research has led to an explosion of
knowledge about the mechanisms underlying
many diseases and physiological processes, yet
fewer than 5% of all life science discoveries lead
to change in clinical practice [1], and those that
do may take up to 10–25years before they are
implemented in the clinical environment [2].
Similarly, scientic breakthroughs in the eld of
regenerative medicine are abundant, yet their
clinical applications are scarce [3] . The inability
of novel scientic discoveries and technologies
to reach clinical application led to the birth of
translational medicine, a discipline which bridges
the gap between the basic scientist and clinician,
facilitating innovation from the bedside-to benchand back [3, 4]. This bridge is not easy to navigate, as it requires the expertise of the scientist,
clinician, university technology transfer ofce,
and an interested entrepreneur.
In the United States, the National Institutes of
Health (NIH) has led the translational science
effort with the development of the National
Center for Advancing Translational Sciences
K. Bridgham · A. Chandawarkar · H. Darrach
J. M. Sacks (*)
Department of Plastic and Reconstructive Surgery,
Johns Hopkins School of Medicine,
Baltimore, MD, USA
e-mail: kbridgh1@jhmi.edu; akash@jhmi.edu;
halley@jhmi.edu; jmsacks@jhmi.edu
(NCATs) [1]. NCATs provides support for translational research programs at academic medical
institutions throughout the United States, and
similar efforts have been made throughout
Canada, the United Kingdom, and Europe [1, 3,
4]. Such programs are poised to streamline the
translational process and bring an abundance of
novel scientic discoveries to the forefront of
clinical practice. However, each critical step of
the translational process faces a unique set of barriers that hinders the transfer of academic knowledge to the clinic. This gap lies at the interface of
academia and industry. This divide can guratively and literally be separated by time and
space. It requires at some point for these two
unique entities, academia and industry, to interface into a mutually benecial arrangement both
regarding technology transfer, consisting of intellectual property and capital (money) infusions.
The rst translational gap, coined the ‘valley of
death,’ spans the period between preclinical studies and clinical trials. Innovations that fail in this
phase of the process may be promising in invitro
and invivo animal models but cannot obtain the
resources to progress through Phase I and Phase II
Food and Drug Administration (FDA) clinical trials. With adequate resources, technologies that
successfully prove their safety and efcacy in
early clinical trials may overcome the ‘valley of
death’ and transfer to entrepreneurial opportunities with family and friend cash infusions during
Seed rounds and Series A, B, C capital raises.
© Springer Nature Switzerland AG 2019
D. Duscher, M. A. Shiffman (eds.), Regenerative Medicine and Plastic Surgery,
https://doi.org/10.1007/978-3-030-19958-6_20
213

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K. Bridgham et al.
However, inventions in this phase are plagued by
yet another set of hurdles before commercialization into routine clinical practice [3].
Research universities worldwide have developed technology transfer ofces to facilitate product commercialization [5]. These ofces are
created to protect the intellectual property created
by employees of the university. Through common
disclosure pathways and provisional patent applications, the university tech transfer ofce looks to
place a fence around the idea, product, application,
etc. that the individual or individuals comes or
come up with. Without the protection of this intellectual property, maximal value creation cannot be
realized if anyone else can duplicate a similar idea.
Despite such efforts, however, many university
inventions fail to commercialize and achieve their
desired clinical impact. Additionally, academic
researchers are encouraged to publish and present
new ndings without knowing that is a form of
public disclosure, thereby precluding patentability.
Increasing evidence shows that startup companies
based on university inventions can act as the bridge
between academia and industry, allowing the
translation of scientic ideas into clinical applications [6]. While seemingly a daunting task, with
appropriate planning, collaboration, resources,
and institutional support, the translational scientist
can successfully bring their ideas from their minds
to the bench, and nally, to the bedside.
Every successful innovation begins with an
idea. However, translating breakthroughs in scientic research into new clinical treatments and
therapies is no easy task. There are known risks
associated with every aspect of this process.
Before embarking on this journey, it is important
to assess such risks and decide whether the product is appropriate for the development of a biotechnology startup.
There are multiple key issues to address,
beginning with the idea itself. Is the innovation
truly novel, and would it signicantly advance
its respective eld? The product must not only
meet an unmet clinical need, but it must do so in
a manner that is better than any existing products and competitors. If the product does in fact
meet an unmet need, one must assess the market
that the product would be entering. Industry is
the barrier that stands between the bench and
the bedside, and each market has its own inherent risks. Will the potential benets of your
product outweigh the risks of entering the market? A key factor to consider is the size of the
market. The market must be large enough to
provide a substantial nancial return for potential investors, yet it must not be overowing
with alternative products or competitors.
Furthermore, one must evaluate what it will take
in terms of nancial investment and development time to succeed in the target market. Can
the product enter the market in a reasonable
amount of time? How much will it cost to get
there? Finally, it is necessary to consider the
regulatory hurdles that your product will face
before commercialization. What FDA pathway
will the product take? For instance, the FDA
will accept premarket submissions (510 K) to
demonstrate that a device to be marketed is at
least as safe and effective or equivalent to a
legally marketed device. This would make the
device not subject to premarket approval (PMA)
by the FDA.If a device requires a PMA by the
FDA, then clinical trials of Phase 1, 2, and 3
need to be organized and planned for. The PMA
will require signicantly different types of capital requirements and business and organizational structures than a 510K device. What are
the clinical trial requirements based on the FDA
pathway? It is essential to assess each of these
issues individually before entering the translational pathway to avoid wasted time and money.
Once the decision is made to proceed forward
with the translational process, the path from the
bench to the bedside can begin [7].
20.2 The Unmet Clinical Need
A well-characterized need is the DNA of a good
invention [8]. Identifying a clinical need that is
a “pain point” for patients, providers, or the
healthcare system facilitates the development
of technologies to maximize success. These
high-value needs spawn ideas that investors

20 How toOvercome theValley ofDeath fromBasic Science toClinical Trials
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215
will care to fund and health care systems will
adopt. Even the best innovations that only
address a weak clinical need will often lead to
eventual failure. Objective assessment of needs
that are worth pursuing solutions should be performed before generation of ideas. One must
rst understand disease mechanisms and fundamentals that underlie the need in question. An
evaluation of the competitive landscape and
current solutions that exist enable identication
of gaps and trends and whether there is sufcient space for new treatments. Treatment pathways and workows can show the innovator
where additional opportunities exist, as well as
value-based problems such as phases of care
(home, outpatient, inpatient, operating room).
A stakeholder analysis around the need can
help identify champions and roadblocks to
future solutions. Most importantly, an exhaustive market analysis, including size and growth
of those affected by the need further helps validate the decision to invest effort in the area of
interest. The market can be segmented into total
available markets, serviceable available market,
and target markets. Large growing markets are
attractive to investors and solutions organically
are able to gain traction.
20.3 Ideation
Once an unmet need has been selected, ideation
can begin. This step often results in only incremental changes to existing solutions when constrained and inuenced by traditional thought or
clinician-driven ideas of what will or will not
work. Truly disruptive ideas enjoy unconstrained
brainstorming using design-thinking principles.
Out-of-the-box ideas should be encouraged, and
inspiration should be sought from other elds or
even outside of medicine. After exhaustive ideation, idea selection should assess feasibility and
the height of the hurdles of intellectual property,
regulation, and reimbursement that may derail
that particular concept. Early low-delity prototyping can be immensely useful during both concept generation and selection.
20.4 Intellectual Property
A crucial rst step in the path to commercialization is to protect innovations via obtainment of
intellectual property (IP). In an academic setting, this process begins with invention disclosure to the university technology transfer ofce
(TTOs). Since the passing of the Bayh-Dole Act
of 1980, the United States requires that all federally funded academic researchers disclose
their inventions to their university. The university will then own and be responsible for protecting the product’s intellectual property.
Following disclosure, TTOs will subsequently
work to protect IP through patents and university licensing to allow for future commercialization [5, 9].
Although often overlooked by academic scientists, it is crucial to work with the university’s
TTO to le a patent and protect your invention
from competitors. Potential investors are hesitant to nance non-patented products.
Consequently, many non-patented inventions
fail to ever make it out of the laboratory. For an
invention to be patentable, it must be useful,
novel, and non- obvious. Early preclinical data
must help show that the invention can function
as described. Furthermore, the invention must
not overlap prior art; that is, competitors must
not previously describe it. Lastly, the invention
cannot be an obvious variation or extension of a
previously existing patented invention. If an
invention is deemed patentable, the university
TTO may le a provisional patent that is valid
for one year; within one year, a standard patent
application must be led. While academics may
face pressure to publish their data quickly, it is
imperative not to publicly disclose any aspect of
your invention in abstracts, presentations, or
publications until a provisional patent has been
led [9]. Finally, it is essential that you have
freedom to operate; that is, the commercialization of the company’s product must not infringe
on other existing patents. For example, if one
was to have a patent on television and another
on color-televisions, it would be to the inventor
and the patent ofce on each individual’s patent

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to have freedom to operate within the connes
of each other’s IP.Working with the university
to develop a clear, cohesive patent strategy will
ensure protection of intellectual property and
allow for successful technology transfer from
academia to industry.
20.5 Regulatory
Regulatory approval is a major milestone for a
novel drug, device, or combination device
towards commercialization and clinical impact.
In the United States, the regulatory process is
overseen by the Food and Drug Administration
(FDA). Medical devices are classied as class I,
II, or III, in order of increasing risk and therefore requirements. Most Class I (low/minimal
risk) devices obtain exempt status and only
have registration and labeling requirements.
Most Class II devices require 510(k) clearance,
which requires identication of a predicate
device and proof that the proposed device is
safe, effective, and has substantial equivalence
to the predicate device. Class III devices usually require a Premarket Approval (PMA) pathway to FDA approval. PMA devices generally
pose the greatest risk or do not have a predicate
device, and therefore require the most data to
prove safety and efcacy. A newer pathway, de
novo 510(k), provides potentially less stringent
requirements for novel devices with no predicate that are not deemed to be of signicant risk
to the patient [10]. Consultation with an experienced regulatory consultant in the specialty the
device is intended is recommended to develop
appropriate regulatory strategy. For example,
although pursuing the PMA pathway requires
more time and money for the required submission, approval via this route provides strong
defensive strategy against competitor devices.
Engaging the FDA through pre- submission
meetings generally is useful to help a new company nd out what type of studies would be
required to prove safety and efcacy for the
likely regulatory pathway for that device, and
helps plan out time and funding requirements to
meet this milestone.
20.6 Reimbursement
An understanding of how the device will be reimbursed is important to assess early in technology
development. The Centers for Medicare &
Medicaid Services (CMS) generally sets reimbursement for treatment of patients and procedures via codes. Most insurance companies
follow CMS reimbursement structures to provide
reimbursements to providers and hospitals. An
understanding of how the new technology will be
reimbursed has signicant impact on stakeholders and eventual adoption of the technology by
individual providers or hospital value committees. The technology may t into a current reimbursement code; payment in different settings of
care (e.g., outpatient home, inpatient) may differ
signicantly and inuence product design. If
existing codes are not favorable, company strategy may dictate attempting to apply for a new
code to be created by CMS. This is another milestone that takes time and money to reach over an
existing code, but may be worth the effort if it
provides strategic improvement in reimbursement for adopters of the technology. For certain
markets (such as private pay or direct-toconsumer), this hurdle may not be applicable.
20.7 De-Risking Technology:
FromBasic Research
toClinical Trials
Innovations themselves have intrinsic risks.
Fortunately, there are a number of steps that academic researchers can take to “de-risk” their
technologies early in the translational process to
help ensure an efcient and successful pathway
from early-stage research to clinical application.
In an academic environment, research resources
are limited. Thus, it is important to perform vigorous yet efcient research to substantiate the
concept of your invention, and gain the attention
of potential investors. A common failure of basic
science research is the use of test systems that
cannot accurately predict the outcomes of preclinical studies, and later, human applications. It
is essential to carefully select validated invitro

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and invivo models to avoid inefcient resource
expenditure early in the translational process.
High-quality, repeatable invitro and invivo studies must be performed before progressing to early
clinical trials. In the health care industry, data is
critical and must prove to both scientic experts
and potential investors that the product will succeed beyond the laboratory. Innovations with
inadequate basic science evidence are prone to
failure later in the translational process after a
signicant amount of investment from researchers and investors alike [11].
After leaving the laboratory, technologies
must be further ‘de-risked’ during clinical trials.
Careful planning must be performed for each
phase of a clinical trial to ensure there are enough
resources to progress to each subsequent phase.
Clinical trials are typically divided into three
phases. Phase I clinical trials often involve a
small cohort of healthy volunteers to prove a
product’s clinical potential. Phase II studies are
used to determine a product’s safety and efcacy
in patients to establish ‘proof of concept.’ That
is– does the product do what it is intended to do?
Strong data collection in early clinical studies is
paramount to support further product development and attract the attention of investors. Phase
III clinical trials are typically large, randomized
controlled trials. De-risking technology all the
way through late stage clinical trials is required
for regulatory approval and for future purchase
by a large biotech/pharmaceutical/medical device
company [9].
20.8 Management Team
One of the most important variables of a new
company is the team. In fact, team has been
shown to be the most important factor for startup
investment selection across all stages, all industries, fund sizes, and locations [12]. Investors
want to know that the money they invest will successfully take the company through the expected
milestones. To successfully create a startup on
their own, one must identify a clinical need, form
an idea, develop a product that addresses the idea,
test the product, and commercialize. This requires
great individual and collective effort. The most
promising technology may fail to receive funding
because of an inadequate management team. A
successful team should be composed of experienced individuals with complementary knowledge and skill sets [6, 7]. While building a team
with a strong scientic foundation is important, it
is equally important to consider including individuals with previous industry experience with a
good track record in execution. Finally, each individual on the team should be enthusiastic in
working towards a common goal or vision of
driving the innovation from the bench to the bedside where it can impact patient care.
20.9 Business Model/
Commercialization
An appropriate business model should be created early on to understand how and when the
technology could generate revenues to self-sustain, rather than remaining reliant on external
funding. Different business models exist for
different industries and device types (e.g., capital equipment, subscription, disposable, razor
and blades, etc), and each should be explored to
nd the appropriate t. Designing device features around an understanding of the cost of
goods (COGS) allows the company to forecast
how to build product at various powers of scale
to maximize prots. Lastly, milestones should
be set towards strategic exits (acquisition,
merger, initial public offering, etc.) where
investors will be able to recoup initial investments and multiples over that. These dynamics
are dictated by capitalization tables that provide an analysis of company percentages of
ownership (shares) by shareholders. Sales and
distribution should also be planned to facilitate
sales once the device is ready to sell to consumers. Acquiring key opinion leaders (KOLs)
within the target markets may help boost adoption of the new technology into common practice. In the end, usage and adoption by target
consumers and hospital value committees will
result in the technology reaching patients and
the company generating revenue.

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20.10 Funding
Money is an integral component of every successful biotech startup. Capital raise can be the
most difcult part of forming a successful biotech company. Companies that fail to commercialize their products often do not have enough
resources to progress from early clinical trials
through the end of phase III clinical trials. A clear
nancial plan must be in place to obtain and
maintain adequate nancial resources throughout
the translational process.
Non-dilutive funding is often a signicant
source of funding in the early stages of a biotech
startup company. Non-dilutive funding refers to
any sources of funds that are provided by an
agency without sacricing ownership to the company or intellectual property. Common sources of
non-dilutive funds include university grants, governmental grants, or donations from charitable
organizations. In the United States, for example,
organizations such as the Small Business
Innovation Research (SBIR) and Small Business
Technology Transfer (STTR) Programs of the
NIH have an allotted annual budget to support
early innovative efforts. Obtaining grants is competitive and requires substantial time and effort.
However, non-dilutive sources provide a critical
source of early resources for research and development purposes. Early funding is essential to
help ‘riskier’ technologies progress from preclinical studies to early clinical trials [7, 9].
Once a technology has been substantially derisked, it may become attractive to potential investors, including angel investors and venture
capitalists. Angel investors are high-net-worth individuals (or a group of individuals) that are accredited to invest in private companies. Investments
typically fall in the range of $10,000-$100,000
from individual angels (angel group pooling may
result in larger investment sums). Venture capitalists, on the other hand, are individuals who invest a
large amount of another individual’s or institution’s
money in private companies. Venture capitalists
tend to be knowledgeable and strategic investors
that will ultimately plan to purchase (all or part of)
the company, help take it public, and commercialize it into routine clinical practice.
Biotech investors are well aware of the risks
associated with translational medicine and the
‘valley of death.’ As such, they are highly selective when choosing which companies they will
invest in. Investors favor technologies with minimal risk and maximal nancial reward. Key components that investors look for include large
market size with minimal competition, technological proof of concept, intellectual property and
freedom to operative, and a strong management
team with a clear business model [9].
Individuals must also be highly selective when
choosing a potential investor. It is essential to
select reputable investors that are knowledgeable
in the product’s respective market. If chosen
wisely, angel investors and/or venture capitalists
can be valuable mentors that will help drive the
company’s product towards commercialization.
In a university setting, the technology transfer
ofce can help introduce individuals to the potential investors that are most likely to help their
company succeed [9].
Funding cycles are the nancing that keep
pre-revenue companies running until exit, generally proceeding in the following order:
friends and family, pre-seed, seed, Series A,
Series B, Series C, etc. Each round of funding
makes the “pie” bigger (increased valuation)
but reduces the founder’s ownership, known as
dilution. Each subsequent round is less “risky”
for the investor and generally require more
funding. The amount of raise requested by the
early stage company is a combination of burn
rate (e.g., employee salaries, equipment, ofce
rentals, etc.) and money needed to achieve the
next particular milestone (e.g., cost of clinical
trials for FDA approval). The shares offered
for each round is a function of the amount of
the raise and current valuation of the company.
There are a variety of nancial models to estimate a company’s valuation, most commonly
cash-on-cash multiples, internal rate of return,
and net present value (Gompers). How many
rounds a company raises depend on their particular exit strategy. Some early stage companies are acquired after seed funding. Others go
through multiple Series rounds with increasingly higher investments (for example, SpaceX
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