Dr. Pellini is Managing Partner of Section 32, a venture fund that invests in companies and inventors that are changing the way humans use technology and the way technology betters humanity. Previously, he served as CEO of Foundation Medicine (NASDAQ:FMI) from May 2011 until he transitioned to Chairman in February 2017. He currently serves as a member of the Board of Directors for Tango Therapeutics, Singular Genomics, Adaptive Biotechnologies, the Personalized Medicine Coalition, and the Mission Hospital Foundation, in addition to his Board Chair position with Foundation Medicine. Read his full bio.

Q&A with Michael Pellini of Section 32

Q: How do you select startup companies you invest in? What are values you are looking for both in the companies and the leadership teams?

A: This answer is more of a philosophical one rather than a simple listing of ingredients, even though the latter might be easier or more reassuring for an entrepreneur to digest. Let me use an analogy to respond to this question. Namely, how does one “identify” a potential spouse, significant other, or close friend? Certainly, there are qualities one looks for and cares about – perhaps, being smart, funny, nice to be around, ambitious but caring, etc. Then there are intangibles as well, which are not well suited to simply being placed on a list. One might look for someone focused on the ‘right’ things in life, one who shares common values, and more. However, these attributes aren’t what necessarily determines the outcome. Ultimately, bonds happen because of real criteria and much softer and often ill defined intangibles which come together at a particular point in time. Finding the right teams and companies in which to invest is often not very different.

Let me turn to an example of a recent investment: Vineti. I see Vineti as the UPS logistics for gene and cell based therapy, and I believe they will ultimately be a key piece to the puzzle which allows these important classes of technologies and therapies to go mainstream. What caught my interest? Many things. The idea is an essential one that came across at the right time; the management team and founders are stellar; the investor group is highly synergistic,…. All the pieces were there, but it’s really how they came together at that specific point in time that resonated with me. There’s an intangible in every relationship, whether a personal or professional one. That’s the piece which is hard to capture in this response.

I would say the same is true of my decision to join Foundation Medicine. It’s easy to see in hindsight 8 years later, but it was really the intangibles which helped me make up my mind 30 seconds after hearing the idea. The same is true for joining Section 32; it’s a no brainer in hindsight, but a unique set of circumstances put Bill and me in the position to work together.

Q: How do you interact with entrepreneurs and their teams you invest in? How do you guide them to create successful, long-lasting companies? Can you share with the audience a successful example?

A: We do look for leaders who don’t need a ton of handholding. We are a small but very active firm who will bend over backwards to assist our companies when we can be helpful, but we rely on the founders and management teams to build and lead their organizations. The great ones reach out to us when they recognize we might be able to assist them. Bill and I are very well connected in the tech and healthcare worlds, and we can provide value in many forms; however, we want to leverage the knowledge and relationships for the right purpose. Smart teams understand when to make that call.

An example stems from a therapeutics company in which we invested. The CEO was looking for additional insights and connections in the AI and data worlds beyond his already well established network. In this case, we opened a few doors at Microsoft and Google, and he took it from there.

Q: What makes your investment firm unique?

A: We are a small firm: 6 of us total. However, the size shouldn’t fool anyone, and that’s part of what makes us unique. Collectively, we have decades of experience running very successful companies in tech and healthcare, building venture firms, identifying great people, and we’ve been through many investment cycles. In short, we have seen a lot over the years, and that experience can be helpful to others. Section 32 has a distinct point of view, and we have the ability to move quickly due to our size and decision-making ability. We have the nimbleness of a small shop, the experience and network of a large one, and we’ve also been around the block more than a few times.

Q: What advice do you have to entrepreneurs that are entering the healthcare, life science sector?

A: Don’t be what you think WE want you to be. Be genuine and passionate, and let those traits carry you forward. You might not synch up with every fund, but you don’t need every fund on your side. Find the two or three funds that appreciate your unique position in this universe, and run with them. Of course, there are books written on this topic, so my answer probably seems trite; however, being a chameleon can be a real downfall for an entrepreneur, at least for a Section 32 backed entrepreneur.

Q: What are the biggest challenges entrepreneurs are facing today?

A: Starting a new venture can be scary and daunting. The challenges run the gamut from funding, to hiring, to having “the idea,” and beyond. Over the years, I’ve noticed what might be very challenging to one entrepreneur may come easily to another. But with the world changing so quickly and so many more startups than ever before, finding your power alley and overcoming all of the obstacles is as challenging as ever. It’s not easy…there is no one big challenge…it is all difficult, but it can also be fun and rewarding. If I had to say – the biggest challenge is two fold: 1) keeping your sense of perspective and humor when things go wrong – and they will – and 2) balancing being an entrepreneur with the rest of life – friends, family and more. Finding that work-life balance is something that is a struggle for a lot of us, especially when your business and livelihood is on the line.

Q: Is there anything else you would like to share with the PMWC audience?

A: Hopefully, we can tackle these other items at the conference in September!

Interview with Gabriel Bien-Willner of Palmetto GBA

Q: What does your role entail as the director of the MolDX program at Palmetto GBA?

A: The job directing MolDX is multifaceted; first and foremost the MolDX program is responsible for assessing molecular diagnostic tests on the market and makes coverage and pricing determinations for such tests and technology. This is usually done through local coverage determination policies or technical assessments.

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Interview with Peter Marks of FDA

Q: The CBER’s Regenerative Medicine Advanced Therapy Designation program has been very successful, with about 100 requests for designation in the two years of its existence. Can you please tell us about the program and how it was put together?

A: The Regenerative Medicine Advanced Therapy (RMAT) Designation program came into being as part of the 21st Century Cures Act that was signed into law on December 13, 2016.

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Interview with Calum MacRae of Harvard Medical School

Q: What patient data do we need to better understand the underlying cause of disease and how to prevent it?

A: Medicine at present is highly underdetermined and data poor. To be precise, one must be comprehensive, so medicine (with our consent) will use not only what we currently conceive of as biomedical information, but also data from across our lives.

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Headlines from PMWC 2019 Silicon Valley

A big ‘Thank You’ to all of our presenters and attendees for celebrating 10 years of precision medicine progress with us! PMWC 2019 Silicon Valley was attended by 2000 participants from 35 countries, which included over 400 speakers in 5 parallel tracks!

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Interview with Ken Bloom of Ambry Genetics

Q: Tell us more about your organization/company. What patient population are you serving and which services are you specializing in?

A: Ambry Genetics is a recognized leader in high quality complex genetic testing. We seek to find the genomic cause or contributors to rare diseases, abnormal phenotypes and hereditary disorders.

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Interview with Lee Pierce of Sirius Computer Solutions

Q: What is the state of big data and analytics in healthcare, and how to best use the reams of data available?

A: More than ever, Healthcare organizations are achieving measurable value through use of their data and analytics assets. There is more raw material available than ever to create value. This raw material is the data flowing from internal systems and applications and also from devices and systems external to healthcare organizations.

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Interview with Anita Nelsen of PAREXEL

Q: There are various new, emerging technologies that bring us closer towards a cure for life-threatening disorders such as cancer, HIV, or Huntington’s disease. Prominent examples include the popular gene editing tool CRISPR or new and improved cell and gene therapies. By when can we expect these new technologies being part of routine clinical care?

A: Today’s emerging technologies are making the promise of individualized treatment a reality.

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Interview with Ilan Kirsch of Adaptive Biotechnologies

Q: The Nobel Prize in Medicine was awarded recently to James Allison and Tasuku Honjo for their work on unleashing the body’s immune system to attack cancer, a breakthrough that has led to an entirely new class of drugs and brought lasting remissions to many patients who had run out of options. The Nobel committee hailed their accomplishments as establishing “an entirely new principle for cancer therapy.” What is your first-hand experience the impact that those new drugs had on patients?

A: For decades cancer was viewed as solely a cell-autonomous condition.

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BMS buys Celgene | Lilly buys Loxo Oncology – Does this Signal a Return to Strong Deal-Making Activities in 2019?

Bristol-Myers Squibb’s blockbuster $74B deal to buy Celgene creates an oncology powerhouse amid industrywide excitement about the rapidly evolving science and explosive growth of the sector. The agreement could signal a return to deal-making for the pharmaceutical industry in the $133B global oncology therapeutics market.

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Interview with Gini Deshpande of NuMedii

Q: What need is NuMedii addressing?

A: NuMedii, has been pioneering the use of Big Data, artificial intelligence (AI) and systems biology since 2010 to accelerate the discovery of precision therapies to address high unmet medical needs. Artificial Intelligence approaches are a natural fit to harness Big Data as they provide a framework to ‘train’ computers to recognize patterns and sift through vast amounts of new and existing genomic

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Interview with Minnie Sarwal of UCSF

Q: Genomic medicine is entering more hospitals and bringing with it non-invasive technology that can be used to better target and treat diseases. What are some key milestones that contributed to this trend?

A: Completion of complete sequence data from the human genome project, and the advances in proteomic, microRNA and epigenetic assays added a layer of pathway biology to the understanding of human diseases.

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Interview with Shidong Jia of Predicine

Q: Once sequencing has been validated as a clinical solution via trusted workflows, and coinciding with the technological developments driving costs lower, we can expect accelerated human genome profiling for clinical Dx. How soon, do you think, will we see accelerated growth and what can we expect?

A: We will see accelerated human genome profiling for clinical Dx in 2019 and the coming years as more biomarker-based cancer drugs are gaining approval.

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Interview with Iya Khalil of GNS Healthcare

Q: Artificial intelligence (AI) techniques have sent vast waves across healthcare, even fueling an active discussion of whether AI doctors will eventually replace human physicians in the future. Do you believe that human physicians will be replaced by machines in the foreseeable future? What are your thoughts?

A: I think that there’s a lot of speculation and uncertainty around AI, but I don’t foresee a time when we won’t need physicians.

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Interview with Ilya Michael Rachman of Immix Biopharma Inc.

Q: The Nobel Price in Medicine was awarded recently to James Allison and Tasuku for their work on unleashing the body’s immune system to attack cancer, a breakthrough that has led to an entirely new class of drugs and brought lasting remissions to many patients who had run out of options. The Nobel committee hailed their accomplishments as establishing “an entirely new principle for cancer therapy.” Besides CAR T-cell therapy what do you think next generation immunotherapies will look like to successfully combat cancer?

A: The next generation of immunotherapies will build on the insights discovered by immunologists like James Allison and Tasuku Honjo and extend them to modify the body’s response to tumors.

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Join me to Kick off PMWC Silicon Valley in the Santa Clara Convention Center, Focusing on Every Element of Precision Medicine

My team worked in collaboration with Bill Dalton, Kim Blackwell, Atul Butte / India Hook Barnard, Nancy Davidson and Sharon Terry to create a program that touches every component of precision medicine while bringing together all of its key stakeholders. Leading participating institutions including Stanford Health Care, UCSF, Duke Health, Duke University, John Hopkins University, University of Michigan and more will share their learnings and experiences and their successes and challenges, as they make precision medicine the new standard of care for all.

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Johns Hopkins
University Of Michigan

The Precision Medicine World Conference (PMWC), in its 17th installment, will take place in the Santa Clara Convention Center (Silicon Valley) on January 21-24, 2020. The program will traverse innovative technologies, thriving initiatives, and clinical case studies that enable the translation of precision medicine into direct improvements in health care. Conference attendees will have an opportunity to learn first-hand about the latest developments and advancements in precision medicine and cutting-edge new strategies and solutions that are changing how patients are treated.

See 2019 Agenda highlights:

  • Five tracks will showcase sessions on the latest advancements in precision medicine which include, but are not limited to:
    • AI & Data Science Showcase
    • Clinical & Research Tools Showcase
    • Clinical Dx Showcase
    • Creating Clinical Value with Liquid Biopsy ctDNA, etc.
    • Digital Health/Health and Wellness
    • Digital Phenotyping
    • Diversity in Precision Medicine
    • Drug Development (PPPs)
    • Early Days of Life Sequencing
    • Emerging Technologies in PM
    • Emerging Therapeutic Showcase
    • FDA Efforts to Accelerate PM
    • Gene Editing
    • Genomic Profiling Showcase
    • Immunotherapy Sessions & Showcase
    • Implementation into Health Care Delivery
    • Large Scale Bio-data Resources to Support Drug Development (PPPs)
    • Microbial Profiling Showcase
    • Microbiome
    • Neoantigens
    • Next-Gen. Workforce of PM
    • Non-Clinical Services Showcase
    • Pharmacogenomics
    • Point-of Care Dx Platform
    • Precision Public Health
    • Rare Disease Diagnosis
    • Resilience
    • Robust Clinical Decision Support Tools
    • Wellness and Aging Showcase

See 2019 Agenda highlights:

    • Five tracks will showcase sessions on the latest advancements in precision medicine which include, but are not limited to:
      • AI & Data Science Showcase
      • Clinical & Research Tools Showcase
      • Clinical Dx Showcase
      • Creating Clinical Value with Liquid Biopsy ctDNA, etc.
      • Digital Health/Health and Wellness
      • Digital Phenotyping
      • Diversity in Precision Medicine
      • Drug Development (PPPs)
      • Early Days of Life Sequencing
      • Emerging Technologies in PM
      • Emerging Therapeutic Showcase
      • FDA Efforts to Accelerate PM
      • Gene Editing / CRISPR
      • Genomic Profiling Showcase
      • Immunotherapy Sessions & Showcase
      • Implementation into Health Care Delivery
      • Large Scale Bio-data Resources to Support Drug Development (PPPs)
      • Microbial Profiling Showcase
      • Microbiome
      • Neoantigens
      • Next-Gen. Workforce of PM
      • Non-Clinical Services Showcase
      • Pharmacogenomics
      • Point-of Care Dx Platform
      • Precision Public Health
      • Rare Disease Diagnosis
      • Resilience
      • Robust Clinical Decision Support Tools
      • Wellness and Aging Showcase
  • Luminary and Pioneer Awards, honoring individuals who contributed, and continue to contribute, to the field of Precision Medicine
  • 2000+ multidisciplinary attendees, from across the entire spectrum of healthcare, representing different types of companies, technologies, and medical centers with leadership roles in precision medicine
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