Club Biomed &endash; Meeting Minutes &endash; 22 September 2004

• Social phase, accepting contributions, a member buy back. John & Steve.
• Students who are interested can now participate in Club Biomed as a graduate course NEURO444. You must come to 16 meetings over 2 years and have the option to join the club and contribute money; however, joining the club is not a requirement of the course. The final for this course is a formal presentation to the group
• Various people have to leave the club: Monica b/c she is going to a law firm where she isn't allowed to be a member, Rana and Tom Kash. Members unanimously voted in favor of immediate cash-out for all proposed members. Juliana is also to leave although we voted on it previously.
• Stock watchers ~ we need a replacement for Monica to cover Teva. Please consider this for the next meeting where one will be appointed.
• Virtual portfolios & benchmarks, Club Biomed portfolio, Financial report. Steve. We have roughly 15K invested in 6 stocks with 6K in free cash. The market has been underwhelming recently.
• ¸ Review of Real Portfolio as of 9/22/04:

Symbol Price Total Gain $ Total Gain % Market Val

BIIB 59.57 +1620.00 +51.50 4,765.60

CJHMF 2.415 -1675.50 -69.81 724.50

CTIC 6.90 -504.00 -19.58 2070.00

PFE 30.20 -256.00 -7.81 3020.00

TEVA 26.13 +846.00 +36.95 3135.60

IDEV 7.58 +13.00 +1.74 758.00

Portfolio +43.5 +8.61 14473.7

CASH: 6,237

¸ We sold:

CEPH 50.50 +238.00 +4.95

¸ Club Biomed share value: $_28.40_

Educational Session and Discussion. Starting a Biotech with Technology Licensed from Weill Cornell:

Why and How &endash; Part One. Steve Gross. Major points are listed below.

• At first Steve discussed whether we were responsibleto bring discoveries to the public good by NIH and ethical mandates.
• Bayh Dole Act of 1980: mandated that any institution with federal funding must bring discoveries to public good, must work with small businesses to do so (this will further the economy), government retain 'march-in' rights but never has exercised those rights yet. Prio to the BD Act few patents were given to universities, whereas, afterwards, there were plenty.
• Prosecuting patents can be costly. We have the CRF here at Cornell &endash; as of May 12, 2004 CRF has been integrated into a new organization called the Cornell Center for Technology, Enterprise & Commercialization. CTEC which better represents what other universities are doing. It licenses inventions made at Cornell. CTEC's first priority is usually reimbursement of patent costs. There are generally two schools of thought on licensees &endash; (1) inventor must identify licensee; or, (2) committee must get the licensee to the table. CTEc seems to be changing the responsibility mainly from the inventor to the committee.
• The IP license delineates financial and performance milestones that a licensee must achieve to maintain a license in force. The IP license will include scope, schedule for reimbursement payments, upfront fee, milestone payments, royalties, research support for inventor's laboratories, timeline. All licensing revenues are shared with inventor and university in accord with university policy (after payback of patent expenses).
• When does a biotech start-up make sense (rather than just a license etc as they always make sense as inventor is always involved and not isolated): (1) Main reason &endash; Breakthrough discovery with broad social and commercial potential with limited interest from licensees; (2) Assembled a research team limited by money but not ideas &endash; based upon possibilities; (3) Prior-track record for business success &endash; investors tend to like this idea although it is risky.
• Considerations for a Biotech Start-up &endash; Platform intellectual property, patent hygiene, blessings from CTEC, compelling 'dog and pony' show for investors (this is the tricky one &endash; size of market, time to market, competing technologies, strength of IP position, quality of the team, business plan, good terms in license for IP are all important.), Financial climate, time to commit, out of pocket expenses for legal/accounting.
• At this point we decided to make this presentation a two part deal with Steve returning in the next meeting for Part Two.

Steering Committee Report. Carlos. Officers met for lunch over the summer and decided to make some format changes to the meetings:

(1) We plan to establish a course and you can get credit for being in the club above

(2) You must fill out a recommendation form in advance of presenting a stock which will recommend purchase price (if there will be a buy recommendation) and an exit strategy.

(3) Large biotech study groups will be instituted &endash; there is a commitment of time here so take it seriously.

Three groups have been formed already:

Group: 1 2 3

Persons: John Joel Mayer Carlos

Don Joe Andrea

Laura Hajira Asif

Stock: PTN TBD Genentech (DNA)

(4) Every member will be assigned a stock to follow &endash; read periodicals, online or magazines and watch how the stock responds and of course report anything interesting.

Upcoming agenda items for meeting in October:

• Genentech "teaser" from Carlos, Andrea, Asif in October with bigger report to follow over time
• We need a TEVA stockwatcher.
• Steve will present part two of Biotech Start-Up presentation.
• We will vote on a new treasurer.
• Stockwatcher report from TEVA and sell strategy
• Other Stock watcher reports
• We need to form another study group or add individuals to existing groups.

Submitted by Andrea Hooper