Hopes and Cures

The feature story in the July 2008 Oncology Business Review is “On-Conversation with Michael Weingarten, Director, Small Business Innovation Research program (SBIR), Office of the Director, National Cancer Institute.”

NOTE: We have highlighted a few of Weingarten’s answers below. Please follow the links for the full interview.

OBR: HOW HAS THIS PROGRAM BEEN ADMINISTERED TO THIS POINT?

Typically, at the NIH, the average size of an award for a Phase 1 is about $150,000. After a company has demonstrated the feasibility of the technology they apply for a Phase 2 follow-on award. That’s a much larger dollar size award at the NCI – on average, about a million dollars. It cuts across everything that the NCI does in terms of technology that supports cancer patients. At the NCI it’s a $100 million program.

OBR: WHY ISN’T THIS MONEY COMING FROM THE STREET?

Phase 1 and 2 dollars is really only enough to take a company maybe halfway through preclinical development. Unfortunately, after the SBIR money runs out, you might have promising data but haven’t advanced the technology far enough to where the private sector will step in and fund the ongoing development process. Typically, venture capital (VC) and other investors come in some time during Phase 1 or Phase 2 clinicial trials, so we have this big funding gap we call “the valley of death” – that’s where the project hasn’t advanced far enough for the company to raise capital, yet, results look promising. They just need a bit more cash to cross that valley. They need a bridge.

OBR: OKAY, SO WHAT EXACTLY IS THIS BRIDGE MADE OF?

We’re going to provide a company up to $3 million dollars in additional funds over a three year period, but in order to receive those funds a company is expected to go out and raise funds to match the NCI investment. That’s what the National Science Foundation (NSF) found with their award, that the most successful aspect of it was this requirement for matching funds.

OBR: IS THE PROGRAM EMPHAZISING CERTAIN TECHNOLOGIES?

Two areas that we’re focusing on right now are cancer therapies, and cancer imaging technology. New, effective therapies and imaging technologies will ultimately help prevent, detect, and treat cancer.

Ultimately, patients benefit from the therapies and technologies developed by successful SBIR awardees, with the help of small businesses and the NCI.

The SBIR Program was established under the Small Business Innovation Development Act of 1982 and, by way of several reauthorizations, has since provided seed money for small companies involved in the development of innovative technologies. SBIR funding promotes a broad range of scientific activities and is available through such agencies as the Departments of Defense, Energy, and Health and Human Services (HHS). The National Cancer Institute (NCI), part of HHS National Institutes of Health, confers SBIR grants and contracts (these are not loans) specific to the development and commercialization of oncology research. As of May 2008, the NCI SBIR Program now includes a new pilot initiative referred to as the SBIR Bridge Award. This enhancement of the SBIR Program was highlighted at the Biotechnology Industry Organization (BIO) Convention in San Diego.