With Finance Gig, Mott Comes Full Circle

Monday, September 29, 2008

David M. Mott, former chief executive of MedImmune, is pushing Washington to become one of the nation's top biotechnology hubs.

Mott began his career in finance, as a Wall Street investment banker. Now, after 16 years at MedImmune, the darling of the local biotech scene, he's come full circle. This month he started his new job as a general partner at New Enterprise Associates, a Chevy Chase venture capital firm, financing and growing biotech and specialty pharmaceutical start-ups.

"I want to help give birth to the next generation of MedImmunes," he said.

For years, the region has eyed the life cycle of the biotech powerhouses in California and Massachusetts: An entrepreneur launches a start-up. Its success catches the eye of big pharma, which buys out the biotech. Then, that executive -- with pockets full of cash -- is thrown back into the marketplace to craft a new company, igniting the cycle once again.

But that hasn't been the story in Maryland. Companies clustered around Interstate 270, known as DNA Alley, have introduced few commercial drugs into the market.

Then last year, Maryland biotech hit a growth spurt, following a string of big pharmaceutical deals that swept Montgomery County. British drug giant AstraZeneca's $15.6 billion acquisition of MedImmune, one of the biggest in recent history, secured Maryland a place on the biotech map and launched some executives into second careers.

Mott, who grew up on a farm outside Hagerstown and played football and lacrosse at St. James School, said he knows the region's complaints and obstacles all too well.

"I kept hearing various governors over time and county executives reason that Maryland wasn't succeeding in biotech because there weren't enough venture capital dollars," he said. But Mott says that's not true: "What we need to do is build great management teams to start companies. The money will find it."

Peter J. Barris, a managing general partner at New Enterprise, agreed.

"Instead of spending a lot of time on airplanes, we would much rather invest locally," he said.

After the MedImmune sale, Mott became a member of AstraZeneca's new executive team, spending a lot of time flying between London and Washington. He was spending more time on general management duties and less on strategizing and development.

"Being part of a large multinational corporation isn't as emotionally rewarding or engaging," he said. "I needed to get back to my roots -- being creative, entrepreneurial, helping people."

So earlier this summer, Mott announced he would be leaving MedImmune at the end of July.

In June, he called on longtime friend James Barrett, a general partner at New Enterprise who had served on MedImmune's board. Barrett's start-up, Genetic Therapy, which was backed by New Enterprise, was also one of Mott's clients while he was working at Smith Barney's health-care investment banking group in New York.

Over coffee, Mott and Barrett talked about taking an executive role at a big pharmaceutical company. They kicked around the idea of launching another biotech.

"Dave's range of alternatives was like drinking from a fire hose," Barrett said.

They also talked about New Enterprise.

"When I see a guy I've known for 20 years happier and more engaged than I've seen a long time, I tried to figure out what he did," Mott said.

Mott had already showed signs that he wanted to re-enter the financing world. In 2002, he established MedImmune Ventures, a $100 million corporate venture fund that invested in start-ups working in areas of interest to MedImmune, such as infectious diseases, cancer and inflammatory diseases.

"It whet my appetite," he said.

But moving into venture capital might take some adjustment, said Barrett, who ran three start-ups prior to joining New Enterprise.

"You lack day-to-day control," he said. "That frustrates us, but we have to behave ourselves and let the CEO run the company."

-- Kendra Marr