By Shera Dalin
BioMedical start-up companies emerging out of Washington University research are experiencing a significant uptick. A biomedical research powerhouse, Washington University is poised to enhance its reputation as an institution that also
generates new life science companies.
In the last two years, 9 biomedical
firms have launched out of Washington University, says Brad Castanho, assistant vice chancellor of research and co-director of the Office of Technology Management at Washington University.
By comparison, the Cleveland Clinic, renowned for its ability to commercialize its research, has produced 24 companies in the past 8 years, or about 4 a year, says Ken Janoski, president and chief executive of BioGenerator, a nonprofit focused on creating new life science companies in the St. Louis region. BioGenerator was created as one of the recommendations of the original Battelle Plant and Life Science Strategy sponsored by the RCGA and the Danforth Foundation.
“And we are aware of at least 4 other Washington University company opportunities that could be launched within the next six months. The interest and activity in creating new biomedical companies at Washington University is very exciting,” Janoski says.
Washington University in St. Louis consistently ranks as one of the top research institutions in the nation. In FY 2008, the University received more than $500 million in sponsored research funding. The discoveries and technologies that result are opportunities for new life saving therapies, medical devices, or alternative sources of energy.
Commercialization is the process that puts those discoveries into the hands of physicians for treatment of patients, or directly into the hands of consumers to improve our quality of life.
Led by Co-directors Brad Castanho and Mike Marrah, Washington University’s Office of Technology Management is responsible for commercializing the discoveries made at the University by its researchers, either through new company formation or licensing technology to existing companies.
Washington University is actively engaged with BioGenerator and other community resources such as the Center for Emerging Technologies and the Nidus Center for Scientific Enterprise to assist University researchers who have an interest in starting new biomedical companies. Starting a new biomedical company directly from university research is
challenging, requiring sizeable commitments of capital, talent, and patience. By engaging the community, Washington University is
able to leverage its cutting-edge research with the community’s resources of talent
and capital to create exciting new companies that have a greater chance of success.
“More things have coalesced in recent years than in the past,” Castanho says. “We are working closely with BioGenerator to make the technologies available to them and other companies in St. Louis. We have focused a lot of effort in trying to educate, and doing the best we can for faculty who want to start a company and encourage them to do so.”
So far, the areas that are generating the most commercialization are medical devices, pharmaceuticals, software, and imaging and radiological products, he says.
Andy Hoyne is a corporate technology attorney at Armstrong Teasdale, who represents four of the new start-ups from Wash U. He says he has been impressed with the pace of business starts in recent months and he believes that will have a ripple effect.
“To really get a solid cluster of emerging technology-based companies, you need a sufficient number of those companies to create critical mass. Many of us have been concerned that there haven’t been enough to attract funding, talent, support services and other aspects that they need,” Hoyne says. “But when you look at the amount
of federal research dollars for
the various universities Washington University has
dramatically more than Saint Louis University, UMSL or SIUE. A lot of the potential for companies comes out of those research dollars.”
An important component for future growth in the number of Washington University start-up companies is the Innovation Acceleration Partnership (IAP) between Washington University, the University of Missouri-Columbia and the National Science Foundation. The National Science Foundation provided $600,000 to the universities to fund four post-doctoral fellows, three of whom are studying entrepreneurism at the Skandalaris Center for Entrepreneurial Studies at Washington University.
The three IAP Fellows are now in place and just beginning their training, Castanho says, so it’s early yet to feel their impact.
“They may form their own companies, go to work in the industry, go into technology transfer at a university, or perhaps even go back into research, but now with a better understanding of commercialization,” Janoski explains.
The increase in commercialization has also been spurred by the University’s researchers themselves, Janoski says.
“There is a much greater sense by the researcher to see their discovery actually touch patients. This obviously is personally very rewarding to them,” he says.
Beyond the challenge of finding researchers who have promising technology in development, Castanho says the University is focused on “deal flow and squeezing a deal until it’s perfect.
“We are getting better and faster to put the deals together. A lot of our technology is pretty nascent and it takes somebody to look at it and see what it will be in the future,” he says.
Licensing alone versus forming a company is also part of the mix, he says. Licensing deals are slow to come to fruition and they are a small stream of revenue for the
University at present. But everyone involved is keeping an eye on the future job creation that will result from licensing and start-up activity.
“As St. Louisans, we can be extremely excited about the number of companies that are being formed from Washington University-related discoveries and very optimistic as to prospects for the future and what it will mean to St. Louis,” Janoski says.
BIOMEDICAL START-UPS
PixelEXX Systems Inc.
Product/Process: Imaging.
The company has pioneering nanoscale imaging and sensing technology. Potential applications include use in monitoring structural and biochemical activity at the cellular level. Technology will be used to improve diagnosis or treatment of diseases, such as cancer. Basic medical research applications are also possible.
Commercialization: Targeted for 2011
Founded: 2008
Scientific Co-Founders: Stuart A. Solin, PhD, Professor of Physics; Samuel Wickline, MD, Professor of Medicine, Physics, Biomedical Engineering, Cell Biology and Physiology; Kirk Wallace, PhD; Mike Hughes, PhD
Key Management: Ken Janoski, Chairman
Location: CORTEX, St. Louis
Website:www.PixelEXX.com
C2N Diagnostics
Product/Process: Diagnostics.
The company is developing and commercializing diagnostic tests for tracking the production and elimination of various biomolecules in the central nervous system. These biomolecules are believed to play key roles in the development of neurodegenerative disorders like Alzheimer’s, Parkinson’s, and Huntington’s disease. The company’s first test, the SILK-Ab™ Assay, tracks amyloid-beta levels to help drug developers more quickly determine which medications might be effective in treating Alzheimer’s Disease. Additional tests to accelerate drug discovery for other disorders are in development.
Commercialization: First diagnostic product already on the market and producing revenue
Founded: 2007
Scientific Co-Founders: David Holtzman, MD, Professor of Neurology; Randall Bateman, MD, Assistant Professor of Neurology.
Key Management: Joel Braunstein, MD, CEO; Tim West, PhD, Director, Laboratory Operations
Located: Center for Emerging Technologies, St. Louis
Website: www.c2ndiagnostics.com
Cephalogics LLC
Product/Process: Imaging.
The company is developing a neuroimaging device as a wearable cap that could replace room-size scanners that map brain function.
Founded: 2007
Scientific Founder: Joseph P. Culver, PhD, Assistant Professor of Radiology
Location: Boston & St. Louis
Website: www.alliedminds.com
University Genomics Inc.
Product/Process: Diagnostics.
The company is developing the Breast Bioclassifier, genetic tests to analyze individual breast cancer tumors that could help doctors target the best treatment for each patient.
Commercialization: Summer 2009
Scientific Co-Founders: Matthew Ellis, MB, PhD, Associate Professor of Medicine; Charles Perou, PhD, Associate Professor of Genetics, University of North Carolina; Phillip Bernard, MD, Assistant Professor of Pathology, University of Utah School of Medicine
Founded: 2006
Location: Center for Emerging Technologies, St. Louis
Website:www.bioclassifier.com
Vasculox Inc.
Product/Process: Biotechnology.
The company is developing technology to help with cardiovascular disease drug development.
Commercialization: Licensing agreements are underway
Scientific Founder: William A. Frazier, PhD, Professor of Cell Biology, Physiology and Biomedical Engineering
Founded: 2007
Key Management: Randy Weiss, PhD, CEO
Website:www.vasculox.com
Medros Inc.
Product/Process: Drug Discovery.
The company uses a whole animal approach to screen for new drug candidates that will be used in the treatment of cancer and diabetes. Medros’ proprietary approach will accelerate the drug discovery process and lead to better drugs, faster.
Commercialization: Corporate partnership with a large pharmaceutical company could come within 1 to 2 years.
Scientific Co-Founders: Thomas Baranski, MD/PhD, Assistant Professor of Internal Medicine, Molecular Biology and Pharmacology; Ross Cagan, PhD, Professor of Developmental Biology, Mount Sinai School of Medicine.
Founded: 2006
Key Management: Robert Karr, MD, CEO
Location: Center for Emerging Technologies, St. Louis
Website: www.medrospharma.com
Cardialen Inc.
Product/Process: Medical Device.
The company is developing an implantable device similar to a pacemaker or cardioverter defibrillator that would deliver a low-energy shock to the heart in cases of atrial arrhythmia.
Commercialization: About four years away internationally; about six years away in the U.S.
Scientific Founder & Chief Scientific Advisor: Igor Efimov, PhD, Professor of Biomedical Engineering
Founded: 2008
Located: Nidus Center, St. Louis
Key Management: Graeme Thomas, President & CEO; Randall Nelson, Vice President-elect, Research and Development
Neurolutions, Inc.
Product/Process: Medical Device.
An implantable brain mesh that allows severely disabled patients to activate prosthetics or mobility devices such as wheelchairs through thought alone.
Scientific Co-Founders: Eric Leuthhardt, MD, Assistant Professor of Neurosurgery and Biomedical Engineering; Dan Moran, Assistant Professor of Biomedical Engineering; Gerwin Schalk, PhD, Associate Professor of Biomedical Sciences, Wadsworth Center of the State of New York
Founded: 2008
Key Management: Shawn Lunney, CEO
Located: Ascension Health Ventures,
St. Louis
LipoSpectrum LLC
Product/Process: Research Service.
LipoSpectrum can identify and quantify over 1,300 lipid species from 30 different lipid classes using multidimensional mass spectrometry without having to first use conventional separation techniques. This improved technology provides access to hundreds, even thousands, of lipid molecular species, overcoming the limitations of existing methods. The process can help with care of diabetes, stroke, heart attack and more. It also has application in the agricultural and nutrition industries.
Commercialization: Once funding is in place, within a few months
Scientific Co-Founders: Richard Gross, MD, PhD, Professor of Internal Medicine; Xianlin Han, PhD, Associate Professor of Internal Medicine
Founded: 2008
Key Management: Milind Sant, PhD, CEO & Co-Founder; Joseph Malik, President
Website: under development at
www.lipospectrum.com
Contact: msant@lipospectrum.com or
(314) 422-8485
VECTIS HEALTHCARE & LIFE SCIENCE FUND HOLDS ANNUAL MEETING IN ST. LOUIS:
This quarter, Vectis Healthcare and Life Sciences Fund I, L.P. (“Vectis I”) held its annual Manager and Limited Partner (investor) meetings here in St. Louis at the Four Seasons Hotel.
Managed by John Brooke and his team at Boston-based Brooke Private Equity Advisors, Vectis I is a healthcare/life sciences venture capital focused fund-of-funds. The Fund was created in 2004 with the dual purposes of providing strong financial returns to investors, while also supporting the healthcare and life sciences sector in the St. Louis region.
John and Peter Brooke launched
Vectis I after a follow-up visit to the 2002 RCGA leadership Trip to Boston by several leadership trip delegates—then RCGA Chairman John Bachmann, Dr. Bill Danforth, John McDonnell, and RCGA staff. The civic delegation from St. Louis invited these Boston-based national venture capital leaders to consider establishing a
St. Louis-based fund, dedicated to early stage plant and life sciences firms. Subsequently, under the local leadership of Bill Danforth and John McDonnell—and the national leadership of John and Peter—the Vectis I Fund was established, stimulating a
St. Louis-based fund of $81.5-million, featuring a significant number of leading institutional investors. Vectis I holds its annual meeting in St. Louis each year, convening both its limited partners along with a number of regional and nationally-recognized venture capitalists.
Through a national syndication strategy, Vectis I invests in both local healthcare/life sciences venture capital funds, as well as premier national funds.
Vectis I is now fully committed, having
invested in 13 funds, including, locally: RiverVest Venture Fund II; Oakwood Medical Investors IV; and Prolog Capital II. Additionally, Vectis I has successfully employed its syndication strategy and invested in 10 premier national healthcare/life sciences funds, including: MPM BioVentures IV (Boston); Bay City Capital Fund IV; CMEA Ventures VI and Prospect Venture
Partners III (San Francisco); Healthpoint Capital (New York) and Accuitive Medical Ventures Fund II (Atlanta), among others. The Vectis model has been to invest in major funds, which often take the lead as a well capitalized investor in promising new ventures.
This year’s annual meeting provided an opportunity for the 13 fund managers to convene in St. Louis with both the Vectis I management team and the
Vectis I investors to discuss the status of
Vectis I while also sharing thoughts on the state of the overall healthcare/life sciences
venture capital environment and recent developments in the St. Louis region. Vectis I has fully committed and reserved its capital, completing a process which began in 2004. Vectis I has invested over
$33 million into St. Louis-based venture capital firms and companies. This investment has directly or indirectly initiated over $150 million in capital invested by venture capital firms located outside St. Louis into
St. Louis-based companies. |
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