OTHER STARTUP OPTIONS

OPERATING VIRTUALLY

Rather than leasing laboratory space of your own from the start, you may be able to outsource research to an academic laboratory or contract research organization (CRO). The company will only need to lease office space for management, thereby spending less money on rent. The downside of operating virtually is that the company pays a premium for research services (since the university or CRO wants to make a profit), may have to share intellectual property rights, and allows other people to dictate how quickly and how well the work is done. Therefore, the virtual model is usually a temporary solution; a company that relies on drug discovery will eventually need to have its own R&D facilities.

INCUBATOR SPACE

In an incubator facility, a tenant can lease finished space that is already built-out to suit the needs of the average biotechnology companies, including biology, chemistry, and instrumentation support. The tenant could also lease access to operating infrastructure, including support space and staff. Services would include facilities management, laboratory operations, administrative functions, property management, regulatory compliance, and purchasing & procurement. This incubator space then allows a group of scientists with precious venture capital to avoid the large up-front capital investment that comes with leasing and building a facility. Instead, the startup would pay the landlord with equity and monthly rent. Such an arrangement might work for several years before the company outgrows the model and needs to bring equipment and personnel in-house. See the chapter on Raising Money for further discussion of Incubators.

ABOUT THE AUTHOR

ALFRED VAZ, JR., VP OF FACILITIES & OPERATIONS,

VERTEX PHARMACEUTICALS

Alfred Vaz, Jr. is a member of the management planning team for Vertex Operations, which includes corporate real estate, facilities, space planning, engineering, materials management, health & safety, and general operations. He also manages Vertex's facilities in California and the UK. Mr. Vaz has 21 years of experience in the biotech industry. Prior to joining Vertex in 1989, Mr. Vaz worked at Millipore and for 5 years in Biogen's Safety & Laboratory/Facilities Services Group. Mr. Vaz holds a BS in Biology from Providence College and an MS in Public Health from University of Massachusetts Amherst. He has served on various boards and membership committees representing the biotech and pharmaceutical sectors.