Our integrated team of scientific, business and operational leaders has an outstanding track record of identifying and nurturing companies that are developing disruptive technologies. The team has chosen to target companies in the stem cell, regenerative medicine, and nanomedicine arena. These companies offer enormous potential in the fight to treat and cure cancer, cardiovascular disease, Alzheimer’s disease, diabetes, and develop applications that enable regenerative medicine to succeed.
Of 5000 drugs that enter preclinical testing, only 5 make it to full human trials, and of that 5, just 1 makes it to market. Ellington believes that it is imperative that early preclinical and Phase 1 and Phase 2 programs be evaluated for the right attributes that are necessary to obtain final FDA approval. Most often the companies do not correctly assess the required parameters that constitute the FDA’s approval for efficacy and safety. If this essential step were to be carefully analyzed, the drug candidate’s development path could be dramatically modified to prevent failure and avoid massive wasted expenditures or being dropped from consideration if a modification was not possible.
Ellington has a proprietary approach that analyzes each of the critical parameters for successful FDA approval and product launch, thus avoiding this enormous failure rate. The results of this approach translate into Ellington’s team selecting candidates that will have a high probability of success beyond the current 1 out of five thousand. Ellington will only invest in those opportunities that have achieved approval to enter FDA Phase 1 trials, and that also meet our criteria for success.
Before considering any opportunity, the candidates for investment must adequatelyanswer the following three questions:
After satisfying these questions, and before any traditional analysis of investment candidates, seven critical criteria are analyzed by Ellington.
At Ellington, we have found that consideration of these seven criteria can identify those companies that will fail. Unless a company can satisfy all seven of Ellington’s criteria, the opportunity cannot be deemed commercially viable.
Those opportunities that meet Ellington’s strict requirements will be the subject of further due diligence which will include:
Once we have completed the full due diligence, and before investing any funds, Ellington and the candidate company will jointly determine go and no-go objectives that must be met to continue. Ellington will fully commit the funding, but it will only be released upon achieving each successful go point. This disciplined approach goes far beyond the simple benchmark/milestone methodologies in place today.
Ellington’s focused approach minimizes the risk. The following are examples of the team’s abilities to evaluate early stage technologies.
Examples of companies that passed and exceeded Ellington’s investment rubric:
Examples of companies that did not pass our proprietary evaluation criteria:
In all the above cases, Ellington decisions were made through a structured, proven, strategic process that included members of the Scientific, Business and Operational team. This proprietary process has successfully been used by DARPA to evaluate the viability of funding ideas that resulted in a significant impact on US National Security including healthcare.