First to market
- publish258
- Dec 12, 2023
- 3 min read
Updated: Apr 3
The gene editor Intellia was first to market with a therapeutic candidate. Christoph Behrens and Lukas Bischoff at Meissner trace how it took its IP from Nobel to Nasdaq, creating a clear path of licences to access science and know-how
Christoph Behrens and Lukas Bischoff
In 2021, Intellia Therapeutics announced a proof of concept for precisely editing the target of a genetic disease. It was the first time that any such clinical human data had been published. In this case, it covers a rare liver disease. Unthinkable ten years ago, it now opens the way for other therapeutic treatments, including cancer.
In becoming first to market, Intellia has put itself in a strong competitive position as gene editing starts to transform medicine. How has such a swift rise been possible for a venture that only started in 2014? While not every start-up company may have a Nobel prize winner amongst its founders, three lessons for high-growth ventures can be drawn from Intellia’s example:
Be proactive in generating freedom to operate and establish access to the underlying science: look for co-operation where possible, but oppose bothersome IP where necessary.
When broadening and diversifying your own initial IP, watch out for the activities of competitors. Then write your IP in a way that interests them as partners.
To secure the highest profits for an originator product, line up the know-how for coming to market in advance and start talking to potential partners.
Intellia was founded by Jennifer Doudna and other researchers in 2014 to develop the science of the gene scissor, CRISPR/Cas, into a product to treat patients. In the following years, it quickly developed from a scientific background start-up to a Nasdaq listed company with a market capitalisation of $3.2 billion.
To commercially exploit its development, it was necessary for Intellia to have access to two technologies with intense research and patenting activity: the gene scissor (CRISPR/Cas) and methods for the delivery of RNA into cells. Without freedom to operate, it would have no prospect of making a return or listing on Nasdaq.
Intellia’s main means of gaining freedom to operate was licensing. In this respect, it helps to have something to offer to a possible licensor. Thus, next to freedom to operate, it’s an advantage to develop and establish your own IP position, which is not too narrowly limited to your own interest.
Intellia has further broadened and diversified its initial IP in three ways by:
Optimising and increasing the efficiency of the delivery of their CRISPR/Cas system into the cells.
Broadening the field of application from an initial specific idea to similar applications (ie, diversifying the RNA-passenger).
Optimising the system by making it more accurate and reducing unwanted side effects.
It illustrates how any initial IP position can be diversified, as an initial invention is made better or applied to other problems, where further invention can be expected. Also, during IP diversification, companies should keep an open eye on their competitors’ activities and incorporate solutions into their applications, which may help to build up bargaining chips for possible cross-licensing negotiations. In pharmaceuticals, more than in many other technologies, being the first on the market brings the best returns. So it’s a priority to know what technologies you might require later and then be on the look-out for partners who you are ready to approach, so you can maintain a smooth development until you reach the market.
• The full version of ‘First to market’ by Christoph Behrens and Lukas Bischoff at Meissner Bolte appears in ‘Winning with IP: Managing intellectual property today’, fourth edition, Novaro Publishing, November 2023. More details here.
