PharmaTelevision - MPM Capital: The Perfect Storm in Healthcare

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Video title: MPM Capital: The Perfect Storm in Healthcare

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In this interview, filmed at BioPharm in San Francisco, Dr Fintan Walton speaks with Vaughn Kailian, Managing Director at MPM Capital, one of the world's largest life science-dedicated venture investors.

They discuss:

• why 2009 has been a landmark year for the biotech industry
• survival in the current financial crisis
• healthcare reform and the politcs involved
• how the best ideas will still find funding
• recovery
• combating risk in funding in the US Biotech sector

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Why 2009 has been a landmark year for the biotech industry

Fintan Walton:

Hello and welcome to PharmaTelevision news review here in San Francisco at BioPharm America. On this show I have Vaughn Kailian, who is Managing Director at MPM Capital based in Boston, welcome to the show.

Vaughn Kailian:

Thank you. Thank you very much.

Fintan Walton:

Vaughn Kailian, you've got a long history in the pharmaceutical and in as a venture capitalist, you've worked in the pharmaceutical industry you've at board level and at chair level in companies like Millennium, you are currently serve as a board member with a company called NicOx in Europe. So you have a very broad view of what's going on in the pharmaceutical and biotech industry. 2009 is a land mark year for our industry, it's undergoing huge changes independent of any economic crisis, but within economic crisis the biotech industry is facing new challenges. Vaughn what do you see with your experience to-date? What's actually happening in 2009 within our industry?

Vaughn Kailian:

Well I think it was a confluence of several factors as you pointed out that have hit the industry at a, at a very critical time. It was the, the obvious financial crisis which soft [ph] up liquidity very quickly in the life blood of our businesses having access to capital, that was number one, that was then exacerbated by the, the nervousness around healthcare reform in the United States which increased the perceived risk in our business which then has an effect on the returns that our investors, for instance in venture capital markets, the financial crisis then little back on the pharmaceutical companies and the pharmaceutical companies found themselves in a more constrained environment. So it was almost a perfect storm in healthcare that occurred in 2009. The difference between this perfect storm and the one on the movie that you are familiar with is, I think people are gonna survive this one, the boats won't be lost at sea.

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Vaughn Kailian

Managing Director

Vaughn Kailian joined MPM's Boston office in 2005 and brought to MPM unparalleled success in the stewardship of commercial biotech and pharmaceutical companies. From 2002 - 2004, he served as vice chair of the Board of Directors of Millennium Pharmaceuticals, Inc.; and was head of the Millennium commercial organization.. From 1990 - 2002, Mr. Vaughn Kailian served as CEO, president and director of COR Therapeutics, Inc. He became the CEO of COR shortly after the company was founded, took the company public in 1991, raised almost $1 billion in public market capital, and led the $2 billion merger with Millennium in 2002. Earlier in his career, Mr. Vaughn Kailian held various international and U.S. general management, marketing and sales positions at Marion Merrell Dow, Inc. and its predecessor companies including president and general manager, Merrell Dow USA; and corporate vice president of Global Commercial Development, Marion Merrell Dow, Inc. He earned his B.A. degree at Tufts University. Mr. Vaughn Kailian is also a member of the board of BIO Ventures for Global Health and the New England Healthcare Institute.

MPM Capital

MPM Capital is a private equity firm focused on venture capital investments in early stage companies across a range of sectors in the healthcare industry including biotechnology, specialty pharma and medical technology. The firm, which is based in Boston, Massachusetts, was founded in 1996. The company has raised approximately $2.8 billion since inception across four private equity funds and a public equities fund.