Program Terms

These terms govern the PharmStarsTM accelerator. Please read them carefully before applying to participate.

1. Program Overview

PharmStars is the pharma-focused accelerator for digital health startups. Applications are now being accepted and 10 startups will be selected for the Fall 2023 cohort. Each startup in the cohort participates in PharmaU^TM, a 10-week educational and mentoring program led by PharmStars staff and Mentor Advisors. After the initial in-person launch event in Boston, Massachusetts all PharmaU classes and mentoring occur virtually. Any startup, no matter where it is located, may apply.

PharmaU culminates with a private Showcase Event where startups pitch to PharmStars’ pharma members. Additionally, one-on-one meetings between startups and pharma members will be arranged at the Showcase Event. The Showcase Event will take place in person in Boston, MA. Further details will be shared with the cohort participants in advance of the event.

2. PharmaUTM

PharmaU is PharmStars’ proprietary educational program, developed and led by PharmStars’ professional staff. PharmaU has two components for startups:

a comprehensive, structured curriculum to teach startups what they need to know about pharma
individualized coaching and mentoring for startups on how to successfully engage pharma

Classes are interactive and focus on important pharma topics, including: the internal structure and functions of pharma, pharma business models, regulatory drivers, pharma-startup deal structures, and current industry trends. The curriculum is comprised of asynchronous videos and classes taught by the PharmStars expert staff and occasional external speakers. There are ample opportunities for peer-to-peer sharing and discussion. PharmStars’ pharma member representatives participate in “Fireside Chats” and “Members’ Panels” for the startups throughout PharmaU. Classes and mentoring meetings are held virtually.

3. The Selection Process

Applicants:

PharmStars is designed to support digital health startups that:

want to engage pharma as clients, customers, or partners;
would benefit from priority access to our pharma members; and
recognize the importance of an enhanced understanding of pharma.

The ideal startup candidate would:

be interested in receiving mentoring and coaching to create a clearer pharma-specific value proposition and better pitch to engage a pharma audience
have a prototype or product ready to be offered to, and used by pharma
have an innovation related to the cohort theme
would benefit from introductions to pharma decision makers

Fall 2023 Cohort Theme: “Digital Innovations in Therapeutic Delivery: Supply Chain to the Patient Interface”

A patient’s therapeutic experience is often a central part of their health journey and encompasses far more than just taking or being administered a prescription medicine. Multiple challenges exist in both the supply and delivery aspects of therapeutics that can profoundly impact both patients and pharmaceutical firms. PharmStars’ upcoming cohort is open to startups with digital health solutions that innovate, improve, or enhance therapeutic supply chain management, medication delivery, or the patient-drug experience for small molecules, biologics, or advanced therapies. Areas of interest include but are not limited to:

Novel drug delivery and administration platforms:

Novel companion devices
Dynamic dosing

Supply chain management and efficiency

Sourcing, logistics, tracking, product integrity, and compliance
Sustainability and recycling

Treatment management

Patient education, health literacy
Medication adherence and persistence
Remote patient monitoring

Novel collection and application of RWE
RWE endpoint design
Biomarkers

RWE generation and data sources
Data capture & remote monitoring
RWE data analysis

Selection Criteria:

Fit: Offers a promising innovation in the theme area.
Product Stage: Has a developed product or viable prototype that can be immediately adopted by pharma.
Need: Has not yet broadly and successfully engaged with pharma and would benefit from the education and coaching that PharmStars offers.

Eligibility:

All applicants must be 18 years or older.
Startups with and without pharma clients are welcome to apply. PharmStars is of value even to startups that have had some measure of success in previously engaging pharma as clients and customers.
Startups that have participated in other accelerators are welcome to apply.

4. Pharma Members

PharmStars is supported by its “pharma members” - forward-thinking pharma companies that have committed to assist our startups. Our pharma members have helped define our theme, reflecting the types of startups with whom they wish to partner. However, startups are selected entirely by PharmStars staff.

Each pharma member has designated a liaison (Champion), at the director-level or higher, with strong internal relationships and a passion for working with startups. The Champion serves as the connection between their company and PharmStars’ startups. Champions commit to attend the Showcase Event, meet one-on-one with startups, and assist in connecting startups that interest their firm with the appropriate contacts.

5. Startups Engagement with Pharma

PharmaU is designed to educate and empower digital health startups. The knowledge and mentoring offered through PharmaU will equip startups to refine, enhance, and sometimes pivot their business models. Graduating startups will be well-positioned to successfully engage with pharma. To enable startups to fully prepare for their initial meetings and to increase the probability of a successful “initial meeting” with pharma members, contact between startups and members will be restricted to PharmStars-moderated engagements while PharmaU is in session.

During and after the Showcase Event, pharma members may engage with any startups that interests them. Immediately following the Showcase Event there will be a 4-week “blackout period.” During that time PharmStars pharma members will have the opportunity to meet and negotiate with graduating startups. Public announcements of startups’ participation in PharmStars will be made after the blackout period.

Startups will gain tremendous insight into the functioning of pharma companies over the course of PharmaU, which may influence their plans for how to best engage pharma. As a result, startups may pivot their business model and/or description of their value proposition. It is, therefore, in the best interest of participating startups to limit initiation of new contacts with pharma until they have completed the accelerator. To take full advantage of our accelerator’s offerings, startups are strongly discouraged from starting new pharma business engagements from the time of acceptance into PharmStars until the conclusion of the blackout period.

6. The Application

Applications must be completed in one sitting, as they cannot be saved in draft form. However, a downloadable copy of the application is available.
Applications must be completed and submitted prior to 11:59 p.m. ET on July 10, 2023.
Applications will not be returned to the applicant after submission.

7. Selection Process

Semi-Finalists Selection and Participation Deposit:

Startups whose applications advance to the semi-finalist phase will be notified by email on a rolling basis throughout the application and startup selection period. Upon notification, startups advancing to the semi-finalist phase will have 3 business days to:

Sign and return the “Participation Terms and Conditions Acknowledgement Form” acknowledging familiarity with participation terms and conditions of the program; and
Provide a $500 refundable Participation Deposit.
○ If the startup is not selected to participate, the deposit will be fully refunded within 30 days of notification.
○ If the startup is accepted to participate, the deposit will be credited toward the tuition payment required for participation or forfeited if the accepted startup declines to participate.

Startups that do not return the signed Participation Terms and Conditions Acknowledgement Form or do not supply the required Participation Deposit within 3 business days will not be given further consideration for participation in this cohort.

PharmStars invests significant resources in selecting finalists to participate in each cohort. The purpose of the Participation Deposit is to ensure that those resources are focused on applicants who are committed to participating in the program should they be selected.

Finalist Notification and Confirmation of Participation:

Applicants selected to participate in the Fall 2023 cohort will be notified by email on or around August 25, 2023. They will have two business days to confirm their intent to participate and pay the balance of their tuition. Otherwise, the invitation will be extended to another applicant.

8. Cost: Tuition + Success Fee Payment

Tuition:

PharmStars does not require any equity from startups or make any claim to their IP. The cost to startups selected to participate is tuition of $6,500 payable before the program begins, covering participation by two representatives. A limited amount of financial aid is available for select, qualifying startups.

Success Fee:

Introduction to PharmStars’ pharma members is one of the many benefits of participation in the PharmStars program. These introductions can open doors to multiple projects and deals for participating startups. Participating startups will be required to pay PharmStars a Success Fee when a successful deal is closed between it and any PharmStars’ pharma member to whom the startup was introduced through the PharmStars program. Success Fees will only be paid on the first four such deals with each member.

The Success Fee will be paid based on (1) the face value of the deal and (2) the number of deals signed with each PharmStars’ pharma member. The Success Fee rates are as follows (example for company Pharma A):

Face Value of Deal

Project 1 with Pharma A

Project 2 with Pharma A

Project 3 with Pharma A

Project 4 with Pharma A

< $300K

10%

$300K- $1M

$1M +

Timing: The initial term of the Success Fee is 3 years. If no deal is closed with a particular pharma member within the first three years after graduation, the obligation to pay Success Fees for deals with that member expires. If a deal is done within the first three years, an additional 3 year Success Fee term will commence at that point.
Definition of “Introductions”: Success Fees are paid only on deals with PharmStars members that are a result of introductions made through the PharmStars program. Recognizing that the initial point of contact into a PharmStars pharma member company is likely not the ultimate business partner, any deals done that are traced back to introductions through PharmStars are covered. Should a deal close with one of our members that is the result of an introduction that happens through other channels the Success Fee will not apply to that deal.
Products Covered: The Success Fee applies to current and future versions of a startup’s product during the Success Fee term. Startups often innovate, enhance and/or expand their offering or create a new product as a result of collaboration with, or at the request of, a pharma organization with whom they are speaking or working. Success Fees apply to deals with PharmStars’ members through PharmStars’ introductions and cover current, future, and/or related products. The Success Fee obligation is based on introductions made to PharmStars members and is not defined by the specific product being used or sold.
Applicability: Revenues a startup earns through mechanisms other than PharmStars introductions are not subject to the Success Fee, even if they are generated during the Success Fee term. Recurring revenue earned by the startup after the Success Fee term ends will not be subject to the Success Fee.

9. Startup Participation Terms

Representatives:

Each startup is expected to send two representatives to PharmaU. Representatives must be full-time employees with decision-making authority when engaging with prospective pharma clients. Ideally, this is the startup’s CEO and one other member of the senior leadership team. All representatives must be at least 18 years old.

Attendance:

PharmaU: Because our curriculum is tightly integrated, startup representatives are required to attend all PharmaU classes and personalized mentoring meetings.
Launch Event: Startups are expected to attend the in-person cohort Launch Event on September 6-7, 2023 in Boston, MA. Exceptions will be made for special circumstances.
Showcase Event: Startups are expected to present at this members-only event in November.
Member Meetings: Startups are expected to participate in one-on-one meetings requested by pharma members at the Showcase Event.

Timing:

Classes will be held virtually Mondays and Thursdays from 12:00-1:30 p.m. ET, from September 11 – November 3, 2023. There will be asynchronous video classes that participants can watch at their convenience before their due dates. Members’ Panels and Fireside Chats will also take place during class time.
Startups will select mutually agreeable meeting times with PharmStars staff for mentoring meetings which will occur weekly.

Communications:

If selected as a semi-finalist, a startup must sign the Participation Terms and Conditions Acknowledgement Form and provide a $500 deposit within three business days.
If selected as a finalist, a startup must confirm their participation and complete tuition payment within two business days.

10. Timeline for the Fall 2023 Cohort

Applications due: July 10, 2023 (11:59 p.m. ET)
Semi-finalist notifications: Rolling basis
Semi-finalist forms and deposit due: three days after notification of status
Finalist acceptance notifications: on or around August 25, 2023
Cohort participation commitments due: two days after notification of acceptance
In-person launch event: September 6-7, 2023
PharmaU virtual classes: September 11 – November 3, 2023
Showcase Event: November 2023

11. Confidentiality

Startups must keep their selection, admission, and participation in PharmStars confidential until the conclusion of the blackout period (four weeks after the Showcase Event). Exceptions to the confidentiality requirement may be granted on a case-by-case basis for fundraising purposes.
Startups are required to keep PharmaU curriculum and materials confidential.
Startups are expected to share only non-confidential information with PharmStars.
Startups’ identities will be kept confidential from pharma members during the program to allow startups time to prepare their pitches and ready themselves for meetings at the Showcase Event.

12. Use of Name

PharmStars has the right to publicize names of all participating startups.
PharmStars has the right to use startups’ names and/or logos on the PharmStars website and in promotional materials.

13. Contacting PharmStars

For any questions or technical issues, please email info@pharmstars.com.

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