New Business and Financial Models for Advancing Translational Medicine
MIT and NCATS have forged a collaboration to develop a public/private partnership (PPP) megafund structure, and various stakeholders of the biopharma ecosystem have been engaged by MIT to provide input on the design and implementation of such a structure. This working group will examine and calibrate the assumptions behind the megafund’s financial and business models, design its capital structure to suit the R&D dynamics of the NCATS portfolio of projects, and propose risk management protocols for the PPP.
By developing, implementing, and popularizing new business and financing approaches, the MIT/NCATS collaboration seeks to catalyze translational sciences throughout the entire medical research ecosystem while addressing the medical needs of patients with few alternatives.
To view the agenda for the MIT/NCATS meeting held on January 28, 2014, please click here.
|Working Group Members (as of 2014)|
Douglas A. Criscitello, Grant Thornton
Douglas A. Dachille, First Principles Capital Management
Daniel L. Goroff, Alfred P. Sloan Foundation
James R. Hodge, Permal Asset Management LLC
Edward Jung, Intellectual Ventures
Pablo Legorreta, Royalty Pharma
Andrew W. Lo, MIT
Rosemarie Loffredo, Leukemia & Lymphoma Society
John C. McKew, NCATS
Joël André Ornstein, Monument Capital Group
Lili Portilla, NCATS
Tom Rutledge, Magnetar Capital LLC
Jake Xia, Harvard Management Company
Nora Yang, NCATS
Douglas Criscitello is a Managing Director at Grant Thornton LLP where he assists the U.S. government in its active role in the financial marketplace both as regulator and participant in the capital marketplace. His experience spans 27 years in government, banking and management consulting. Before joining Grant Thornton, Doug was the Senate-confirmed CFO at the Department of Housing & Urban Development (HUD), appointed by President Obama, where he directed the execution of HUD’s financial management program, including analytically focused work involving the Department’s credit and insurance programs. Before HUD, his prior position in the public sector was as the founding Director of the New York City Independent Budget Office, a municipal government agency designed to provide nonpartisan, objective research and analysis of NYC’s budget. Prior to IBO, Doug spent a decade in the federal government focused on credit programs and budgeting as CFO of the Small Business Administration and as a credit program analyst at the Office of Management and Budget. In the private sector, Doug worked for more than five years at JPMorgan’s Financial Institutions Group, where he provided operational, investment banking, and financial advisory services to U.S. government agencies and related entities.
Douglas A. Dachille is one of the founders of First Principles Capital Management, LLC and currently serves as Chief Executive Officer and Chief Investment Officer. His background and knowledge encompass all aspects of asset management, structured finance, and risk management. Immediately prior to co-founding FPCM, Mr. Dachille was President and Chief Operating Officer of Zurich Capital Markets Inc. (“ZCM”), an integrated alternative investment asset management and structured product subsidiary of Zurich Financial Services.
Preceding his tenure at ZCM, Mr. Dachille was a Managing Director for J.P. Morgan where he was the Global Head of Proprietary Trading and a member of the Management Committee of the Investment Bank. He was responsible for building the Global Relative Value Proprietary Trading business, and in fiscal year 2000 this business was one of the most important contributors to both the pre-tax net income and economic value for J. P. Morgan. In addition, Mr. Dachille was responsible for managing the bank’s investment portfolios, for developing and executing economic and regulatory capital management strategies, and for designing and managing non-qualified employee deferred compensation plans. Mr. Dachille was Chairman of the firm’s Capital Committee and served as a trustee of the J. P. Morgan qualified benefit plans. Prior to his role in the Proprietary Positioning business, Mr. Dachille was responsible for building the Hybrid Derivatives business for J. P. Morgan beginning in 1991. The Hybrid Derivatives business was developed to provide clients with customized derivatives solutions to complex problems and continues to be a significant revenue contributor for J. P. Morgan.
Mr. Dachille earned his Bachelor of Science in a special joint program through Union University and Albany Medical College, and later was a Pew Scholar in Medicine, Arts and Social Sciences at the University of Chicago.
Daniel L. Goroff is a Program Director at the Alfred P. Sloan Foundation who is especially interested in economics, finance, mathematics, the scientific and technical work force, and education. He is also Professor Emeritus of Mathematics and Economics at Harvey Mudd College in Claremont, California, where he previously served as Vice President for Academic Affairs and Dean of the Faculty.
Dr. Goroff earned his B.A.-M.A. degree in mathematics summa cum laude at Harvard as a Borden Scholar, an M.Phil. in economics at Cambridge University as a Churchill Scholar, a Masters in mathematical finance at Boston University, and a Ph.D. in mathematics at Princeton University as a Danforth Fellow. His first faculty appointment was at Harvard University in 1983. During over two decades there, he rose to the rank of Professor of the Practice of Mathematics while also serving as Associate Director of the Derek Bok Center for Teaching and Learning and as a Resident Tutor at Leverett House.
A 1988 Phi Beta Kappa Teaching Prize winner, Dr. Goroff taught courses in the mathematics, economics, physics, history of science, and continuing education programs at Harvard. He was also the founding director of a Masters Degree Program in “Mathematics for Teaching” offered through the Harvard Extension School. Beginning with the international distance education courses he developed using audiographics conferencing over twenty years ago, and continuing through his most recent online course called “Decisions, Games, and Negotiations,” Dr. Goroff has been an educational innovator throughout his teaching career.
In pursuing his work on nonlinear systems, chaos, and decision theory, Dr. Goroff has held visiting positions at the Institut des Hautes Etudes Scientifiques in Paris, the Mathematical Sciences Research Institute in Berkeley, Bell Laboratories in New Jersey, and the Dibner Institute at MIT.
In 1994, Dr. Goroff was elected to a three-year term on the Board of Directors of the American Association for Higher Education. During 1996-97, he was a Division Director at the National Research Council in Washington, and during 1997-98, Dr. Goroff worked for the President’s Science Advisor at the White House Office of Science and Technology Policy.
As Director of the Joint Policy Board for Mathematics from 1998 to 2001, Dr. Goroff was called to testify about educational and research priorities both by the House and again by the Senate during the 106th Congress. He also testified before the 109th Congress. A former Chair of the U.S. National Commission on Mathematics Instruction at the National Research Council, he was co-director with Richard Freeman of the Scientific and Engineering Workforce Project based at the National Bureau of Economic Research. The book they edited together is called Scientific and Engineering Careers in the United States.
James R. Hodge is President of Permal Asset Management LLC and Chairman of the Investment Committee and is responsible for asset allocation as well as performance monitoring and research and analysis of fund managers. Prior to joining the Permal Group in 1987, he spent four years with the New York Stock Exchange, holding a number of positions including Director of Cost Accounting. Beforehand he was the Controller of Biolectron, Inc., a privately held medical products company, for four years. Mr. Hodge is a director or alternate director of a number of independent offshore investment funds. Mr. Hodge holds an M.B.A. from Harvard Business School (1979) and a B.S. with highest distinction from Indiana University (1974). Mr. Hodge was a licensed Certified Public Accountant in the State of New Jersey.
Edward Jung founded Intellectual Ventures in 1999 after leaving Microsoft Corporation where he was chief architect and advisor to executive staff. At Intellectual Ventures, he also serves as the chief technology officer, setting strategic technology and new business models for the company.
At Microsoft, Mr. Jung managed projects relating to web platforms, semantic web technology, intelligent operating systems, adaptive user interfaces and artificial intelligence. He co-founded many Microsoft teams including Windows NT, Microsoft Research, mobile and consumer products, and web services. Before joining Microsoft in February 1990, Mr. Jung founded the Deep Thought Group, working on neural network chips for learning and parallel computation. His biomedical research work in the 1980s in protein structure and function was published in several journals including the Proceedings of the National Academy of Sciences and the Journal of Biochemistry.
An avid inventor, Mr. Jung holds more than 500 patents worldwide and has over 1,200 patents pending. His inventions are in the areas of biomedicine, computing, networking, energy, and material sciences.
Mr. Jung has served as an advisor to Harvard Medical School, the Fred Hutchinson Cancer Research Center and the Institute for Systems Biology and consulted to the Asia Pacific Federation, the Aspen Institute, the China Academy of Sciences, the National Academy of Sciences, and the World Health Organization.
Pablo Legorreta founded Royalty Pharma in 1996, after creating and managing two “proof of principle” investment vehicles in 1993 and 1994 that invested in royalty interests in two leading biotechnology products and currently serves as chief executive officer. Prior to founding these investment vehicles, Mr. Legorreta spent ten years at Lazard Frères where he provided cross-border merger and acquisition and corporate finance advisory services to US and European corporations. Mr. Legorreta joined Lazard Frères et Cie in Paris in 1988, then moved to Lazard Frères & Co in New York in 1990. Mr. Legorreta currently serves as a Director of Giuliani, Médica Sur, as well as a member of the Board of Trustees of The Allen-Stevenson School, the Park Avenue Armory and of the American-Austrian Foundation/Open Medical Institute. Mr. Legorreta founded and is currently Chairman the Board of Trustees of the Alianza Médica para la Salud, a privately-funded, not-for-profit foundation whose goal is to educate Mexican physicians and healthcare providers in order to improve the quality of Mexican and Latin American healthcare. Mr. Legorreta received a degree in industrial engineering from Universidad Iberoamericana.
Andrew W. Lo is the Charles E. and Susan T. Harris Professor of Finance at the MIT Sloan School of Management, the Director of MIT’s Laboratory for Financial Engineering, and a principal investigator of MIT’s Computer Science and Artificial Intelligence Laboratory. His research is focused on the fundamental aspects of investments and financial markets, including measuring illiquidity risk in hedge-fund returns, the growth of systemic risk in the hedge-fund industry, evolutionary and neurobiological models of individual risk preferences and financial-market dynamics, and most recently, new approaches to financing biomedical innovation.
He has published numerous articles, and is a co-author of The Econometrics of Financial Markets, A Non-Random Walk Down Wall Street, and The Evolution of Technical Analysis, and author of Hedge Funds: An Analytic Perspective. He is currently a co-editor of the Annual Review of Financial Economics and an associate editor of the Financial Analysts Journal, the Journal of Portfolio Management, and the Journal of Computational Finance. He is also a research associate of the National Bureau of Economic Research, a member of FINRA’s Economic Advisory Board, the OFR Financial Research Advisory Committee, the New York Fed’s Financial Advisory Roundtable, the CME Group Competitive Markets Advisory Council, the Consortium for Systemic Risk Analytics Academic Advisory Board, and founder and chief investment strategist of AlphaSimplex Group, LLC, an investment advisory firm based in Cambridge, Massachusetts.
Rosemarie Loffredo is the Chief Administrative Officer and Chief Financial Officer of Leukemia & Lymphoma Society (LLS). In her role, she ensures that LLS achieves the ambitious goals of its long-range strategic plan. Ms. Loffredo leads all administrative and staff functions, including finance, information technology and human resources, and she is responsible for enhancing LLS’s organizational efficiency and effectiveness in partnership with the organization’s executive team.
Earlier in her career, Ms. Loffredo served as interim chief financial officer for Pro Mujer International, a nonprofit organization dedicated to empowering disenfranchised women in Latin America through microfinance, healthcare and educational services. She previously served as vice president, financial operations and treasurer of New York University, the largest private research university in the U.S. She also served as senior vice president of finance for CA Technologies, Inc. (formerly Computer Associates), one of the world’s largest enterprise management software providers and prior to that position was vice president of treasury for International Paper Company. She previously held leadership positions with global banks in international treasury as well industry segment management including securities and commodities, capital-intensive industry and public finance. Ms. Loffredo currently serves on the board of directors of CenterLight Healthcare System.
Ms. Loffredo holds a bachelor’s degree in international economics, commerce and finance from Georgetown University, a master’s degree in economics from Boston College, and an M.B.A in finance and international business from Columbia University.
John C. McKew is the Acting Scientific Director of the Division of Preclinical Innovation at the National Center for Advancing Translational Sciences (NCATS) within the NIH. His responsibilities include developing the Therapeutics for Rare and Neglected Disease (TRND) program and the Bridging Interventional Development Gaps program (BrIDGs; former NIH-RAID program). Both of these programs focus on novel public/private partnerships to advance collaborative drug discovery projects through pre-clinical development into early clinical development. These collaborative projects are advanced using a combination of internal scientific resources as well as government contracts. Prior to joining the NIH, Dr. McKew held a Director level position at Wyeth Research in Cambridge, Massachusetts where he spent a total of 17 years. One role at Wyeth he held comprised leading a hit-to lead chemistry group supporting cardiovascular, musculoskeletal and metabolic disease therapeutic areas. Prior to that Dr. McKew spent 10 years working in the inflammation therapeutic area resulting in multiple compounds entering clinical evaluation.
His research interests include rare and neglected disease research, medicinal chemistry, synthetic methodology, and tool compounds to probe biology. These interests have resulted in >25 publications, 10 Granted US Patents and multiple podium presentations. John also enjoys sharing his passion for science with others. This has prompted him to become course director and lecturer in GMS PM 881 “Drug Discovery and Development” a graduate level course in the Department of Pharmacology and Experimental Therapeutics which resulted in his appointment as an Adjunct Associate Professor Boston University School of Medicine. He has also taken an active role in the Northeastern Section of the American Chemical Society and has served as the Chair-Elect, Chair and the Immediate Past Chair.
Dr. McKew graduated from State University of New York at Stony Brook with B.S. degrees in Chemistry and Biochemistry. He completed his Ph.D. in Organic Chemistry at University of California, Davis and held post-doctoral research positions at the University of Geneva and Firmenich, SA.
Joël André Ornstein currently serves as Chairman at Monument Capital Group, a private investment firm. He is also Chairman of the Strategic Board of Romulus Capital, a seed-stage technology investment firm. Previously, he served as Senior Advisor to The Carlyle Group (1989-1993), at which time he set up Carlyle’s initial presence in Europe. He has also served as the Chairman and CEO of Euristates, where he led the alternative private equity, hedge fund, and real estate investment business, as board member of Euris-Rallye, and as an investment banker at First Boston (now Credit Suisse) and Dean Witter Reynolds (now Morgan Stanley).
Mr. Ornstein received an MS in finance from the MIT Sloan School of Management and an MBA from ESCP Europe.
Lili Portilla has worked in the area of strategic alliances and technology transfer at the National Institutes of Health, since 1989. She has extensive experience in negotiating and developing commercialization strategies for complex, and multi-party collaborations and public private partnerships. Ms. Portilla has broad knowledge of Federal and NIH technology transfer policy and laws pertaining to biotechnology and commercialization issues.
Ms. Portilla currently serves as the Director of Strategic Alliances for NCATS and oversees the Center’s partnership, strategic alliance, and technology transfer functions. She also manages the NCATS Small Business Innovation Research (SBIR) and Small Technology Transfer Research (STTR) program and the implementation of collaborative arrangements under the NCATS Cures Acceleration Network. From September 2012 until January 2013, Ms. Portilla served as the Acting Director of the Office of Policy, Communications and Strategic Alliances for the Center.
From January 2008 – 2011, Ms. Portilla served as Senior Advisor to the Director of the National Center for Research Resources (NCRR) at the NIH and provided advice to NCRR staff on all facets of technology transfer, intellectual property and public private partnerships issues. She served as partnership and technology transfer advisor for the NCRR funded Mutant Mouse Regional Resource Consortium and the National Swine Research Resource Center programs. Ms. Portilla also served as the Chair of the Clinical Translational Science Awards (CTSA) Public Private Partnership Committee.
Prior to her position at the NCRR, Ms. Portilla served for 7 years as the Director of the National, Heart, Lung, and Blood Institute (NHLBI), Office of Technology Transfer and Development (OTTAD). Ms. Portilla has also published several papers on pubic private partnerships.
Ms. Portilla is an Ex-Officio Board Member of the University Industry Demonstration Project of the National Academies. She also serves as an Ex-Officio Board Member of the University of Kansas, Institute for Advancing Medical Innovation.
Ms. Portilla received a Masters in Public Administration in 1992 from American University, Washington, DC and a Bachelor in Business Administration, double major in both Finance and Spanish Literature in 1986 from Stephen F. Austin State University, Texas.
Tom Rutledge is Head of Origination and Sourcing at Magnetar Capital. Prior to joining Magnetar in 2008, Mr. Rutledge was an Executive Director in JPMorgan’s US Structured Credit group. Before that, he served in investment and risk management roles at several investment management firms, including positions as CIO for Fixed Income at OTA Asset Management, Head of Risk Management and Quantitative Analysis at Boldwater Capital, and Analyst at New Bond Trading. He was also Head of Flow Research and eResearch at Deutsche Bank. Mr. Rutledge began his career as a fixed income derivatives trader and marketer at Merrill Lynch in New York and London.
He has also served as an adjunct professor at Boston College’s Carroll School of Management, teaching a course in derivatives and risk management in the graduate finance program.
Mr. Rutledge received a BA in English from Amherst College and an MBA from the MIT Sloan School of Management.
Jake Xia joined HMC as Chief Risk Officer in June 2013. In this role, Mr. Xia manages the group within HMC overseeing and quantifying risk exposures arising from both internal and external investment portfolios.
Mr. Xia joined HMC from Morgan Stanley, where he worked for 17 years, serving during the last two as Head of Global Structured Rates Trading in New York and managing trading groups across the globe, including groups in New York, London, Tokyo, Hong Kong and Sydney. Prior to this role, Mr. Xia was Head of Global Fixed Income Trading Risk in New York where he was responsible for trading risks in all fixed income products, including interest rates, foreign exchange, emerging markets, credit, and real estate securities. Earlier, Mr. Xia served as Morgan Stanley’s co-head of Fixed Income in Japan where he was also a member of Morgan Stanley’s 10-person Global Fixed Income Operating Committee, Asia Executive Committee, and Tokyo Management Committee. Prior to joining Morgan Stanley, Mr. Xia served as Vice President of Fixed Income Research at Salomon Brothers and was a research scientist at Schlumberger-Doll Research.
Mr. Xia holds a Ph.D. in electrical engineering and computer science from Massachusetts Institute of Technology, a M.S. in electrical engineering from Northeastern University, and a B.S. in electronic physics from Beijing University.
Nora Yang is the director of Portfolio Management and Strategic Operations in the Division of Preclinical Innovations at the National Center for Advancing Translational Sciences (NCATS), NIH. In her current role, she is responsible for planning, identifying and managing alliance opportunities and partnerships, developing new business models to improve efficiency and effectiveness of translational sciences, building portfolio and project management capabilities, and implementing best practices of managing public and private partnerships for the NIH National Center for Advancing Translational Sciences (NCATS) and the Therapeutics for Rare and Neglected Diseases (TRND) program. She took a leadership role in building and managing the rare and neglected disease drug development portfolio for the TRND program, which has taken 4 investigational drugs into rare disease patients in 7 clinical trials within 3 years. Dr. Yang brought extensive drug development experience from the biotechnology/ pharmaceutical industry to NIH. As a program team leader and project manager, she led teams to manage and develop novel therapeutics for metabolic diseases and oncology indications at Eli Lilly & Co. and Amgen, Inc. She also worked with startup companies and VC firms to build and evaluate business proposals and raise investment funds.
She holds a Ph.D. in molecular biology from the Salk Institute of biological Research and the University of California, San Diego, and a Master’s degree in business management from Stanford University, Graduate School of Business.