annual report 2005 - parteq innovations · 2015-04-19 · with applications in the automotive,...

Advancing Discovery

A n n u a l R e p o r t 2 0 0 5

IntroductionLetter from the Chair of the BoardLetter from the CEONew CompaniesEstablished CompaniesLicensing ActivityDisclosures & Patenting ActivityNew InitiativesPeopleFinancialsGovernance

Table of Contents

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PAGE 1 • PARTEQ ANNUAL REPORT

PARTEQ Innovations is the not-for-profit technology transfer office of Queen’s University, and a provider of technology transfer services to Kingston General Hospital and Royal Military College. PARTEQ works with researchers and the business and venture capital communities, helping to bring the benefits of scientific discovery to the public while returning proceeds to inventors and their respective institutions.

This report has been compiled to provide information on PARTEQ’s activity and performance for the period April 1, 2004 to March 31, 2005.

PARTEQ Research and Development Innovations

PARTEQ’s mission is to commercialize intellectual property arising from university research. Our activities include evaluating and protecting intellectual property created by researchers; licensing technologies; creating and managing new spinoff companies gener-ated from research; attracting financial support for research projects with downstream commercial potential; and managing early-stage venture funds.

Mission

PARTEQ ANNUAL REPORT • PAGE 2

IMPACTPARTEQ ANNUAL REPORT • PAGE 4

PARTEQ INNOVATIONS 2005Professor Henk Wevers of Queen’s University probably

didn’t have Don Dalton of Napierville, Illinois, in mind when, more than 25 years ago, he began pursuing a solution...

• Real-time software that allows doctors and hospitals to manage patient waiting lists and resources more effectively;• Electromagnetic technologies for detecting flaws in water and steam pipes, saving public utilities and private companies time, resources and money;• Proteins and antibodies that, 10 years after their discovery, continue to advance pharmaceutical companies’ research into drug resistance in humans;• A novel ceramic coating technology with applications in the automotive, plastics and appliance industries;• Laboratory teaching aids and biological research tools that have proven to advance student learning and support innovative research around the world.

As this year’s PARTEQ annual report will show, research at Queen’s, its teaching hospitals and Royal Military College is having, or will have, an impact in a broad range of fields, from agriculture and the environment to manufacturing, public infrastructure and human health.

Meanwhile, nearly a quarter-century after it was founded, Q’Straint Systems Inc. continues to display the distinctive Queen’s “Q” as part of its corporate logo. It is a visible reminder of the sig-nificant – indeed, lifesaving – impact of Queen’s University research on the rest of the world.

This life-saving wheelchair and passenger securement system was arguably Queen’s University’s first successfully commercialized product. Over the past quarter-century, and with the assistance and support of PARTEQ Innovations, Queen’s researchers continue to contribute to the world’s innovation pipeline. Their research innovations are being transformed into

a number of breakthrough products and promising products-in-development, including: • Therapeutic treatments for medical conditions from cancer, stroke and Alzheimer’s disease to psoriasis, oral precancers and acne; • Solar-powered technologies that relieve reliance on coal and oil and decrease greenhouse gases; • An automated system for detecting water-borne pathogens such as E. coli;• A method for effectively extracting ethanol from biomass;• Medical devices and materials for treat-ing scoliosis, accelerating recovery after joint surgery and assessing upper limb movements following stroke;

to a significant transportation safety problem: how to keep wheelchairs and their passengers securely restrained in vehicles for the physically disabled?

Nor would the mechanical engineering professor and his Clinical Mechanics Group have known the children aboard the access van of Utah’s Nebo School District, when they successfully developed a retractable, adjustable securement system for wheelchairs and their passengers.

However, the patented innovation created by Professor Wevers and his research group affected these people’s lives in a profound way. All were wheelchair passengers who survived serious vehicle crashes unharmed, thanks to wheelchair securement system refinements resulting from this Queen’s University research.

The researchers’ simple, elegant solution to a serious safety concern has generated other impacts as well. The world’s leading wheelchair securement company, Q’Straint Systems Inc., was founded in 1983 in Cambridge, Ontario based on the Queen’s technology. Today, transport companies in North and South America, Europe, Great Britain, Australia, and Asia all depend on Q’Straint’s technology for keeping their wheelchair passengers safe.

“Today, transport companies in North and South America,

Europe, Great Britain, Australia, Japan and China all depend on

Q’Straint technology for keeping their wheelchair

passengers safe.”

PAGE 7 • PARTEQ ANNUAL REPORTPAGE 7 • PARTEQ ANNUAL REPORT

Dr. Kerry Rowe Vice-Principal (Research) Queen’s University Chair of the Board, PARTEQ Innovations

Letter from the Chair of the Board

Looking back over the past year, I am struck by the changes in the technology transfer landscape in Canada.

For many years, university offices of technology transfer have worked quietly, and often behind the scenes, to advance the results of university research for public benefit. More recently, however, there has been growing recognition by both federal and provincial governments of universities’ role as engines of economic growth: Universities produce the research that fuels the development of marketable products, and they train the highly qualified personnel who drive the research and development of innovations in both private and public sectors.

Now more than ever, governments are looking to universities to maximize the return on the investment of public dollars in postsecondary education. One of the ways that universities

do this is through their support for technology transfer activities within their own institutions. Offices such as PARTEQ help to forge the links between basic research and human needs. They advance early stage technologies along the innovation pipeline, and they ensure that proceeds generated by those innovations are shared by the universities and inventors who created them.

Innovation, meanwhile, depends on research. The quality of research conducted at Queen’s is demonstrably top-flight. Queen’s continues to hold a top position among research-intensive universities in Canada, ranking 4th in 2004 as measured by dollars of sponsored income per full-time faculty member. Overall, the amount of sponsored research income in 2004 rose 5.6% to almost $160 million. The research excellence of our faculty members has been recognized in back-to-back wins of the Gerhard Herzberg Prize for achievement in science and engineering for 2003 and 2004, and the recruitment of new Canada Research Chairs and appointment of Queen’s Research Chairs. New research centres, such as the GeoEngineering Centre at Queen’s and Royal Military College, capitalize on the world-class talent concentrated in this region.

John Molloy and his stellar staff are a celebrated asset to those they serve directly – Queen’s University, Royal Military College and Kingston General Hospital – as well as Ontario and Canada. We look forward to celebrating the continuing impact of PARTEQ Innovations on the world.


John Molloy President & CEO PARTEQ Innovations

Letter from the CEO

One of the most important developments in technology transfer in recent years has been an increasing emphasis by governments on the commercialization of university research. Significant increases in funding for research and associated infrastructure have generated initiatives by all levels of government to fund commercialization activities. Now that at-tention has turned to commercialization, it follows that we need to find better and more relevant ways to measure success.

It is difficult to find common quantifiable indicators to measure commercialization success. To date, surveys conducted by Statistics Canada and the U.S.-based Association of Uni-versity Technology Managers (AUTM) have been the main barometer. These surveys have focused on licensing revenues, numbers of licenses, numbers of patents issued, numbers of spin-off companies created, etc. Such numbers, however, are not sufficient for identifying and measuring the true impact of research commercialization.

I believe that if we are to show the real value in commercializing Queen’s-based discoveries, we have to demonstrate and communicate the benefits that these discoveries have conferred on our economy and on our society. This year’s Annual Report focuses on such beneficial impact by relating it to the people affected by these discoveries. In the absence of other metrics, the anecdotal evidence provided here is important to assessing the value of research conducted at Queen’s.

Discoveries from Queen’s have had and will continue to have a huge impact on people’s lives. We at PARTEQ take great pride in having contributed to making some of this impact possible. Without our involvement, many of the results described in this annual report would not have been realized. With universities now competing intensely for funds and faculty, the real-world impact and reputation derived from improving people’s lives can be of critical importance.

As this year’s annual report shows, the commercialization of discoveries arising from research at Queen’s is making a difference in many ways in improving quality of life for many people.


• PARTEQ ANNUAL REPORT

It has been more than 15 years since Drs. James Kennedy of Queen’s University and Roy Pottier of Royal Military College discovered a way to harness a non-toxic, naturally occurring substance in the human body to successfully treat cancer. Their discovery, commercialized by DUSA Pharmaceuticals Inc. of Toronto, Ontario, gave doctors an effective alternative to traditional – and frequently painful and messy -- methods for removing actinic kerato-ses (AKs), the red, scaly patches on face and scalp that can lead to skin cancer. More than 30,000 patients were treated for AKs in the past year.

Now, Levulan™ Photodynamic Therapy – the commercial product that resulted from the researchers’ work – is achieving wide acceptance by dermatologists across Canada and the U.S. as a safe, effective approach for treating a number of other skin disorders. Non-invasive, fast-healing and virtually side effect-free, the light-based treatment is showing particular promise as a treatment for acne. For many doctors, the technology is a welcome alternative to traditional drug therapy and its attendant risks of side effects and drug resistance.

“I’ve been very pleased with this treatment because I can offer patients an alternative that is safe and effective,” says Dr. Martie Gidon, a Toronto dermatologist and an early adopter of the therapy. “All of my treated patients have had a signifi cant improvement, with the majority being very happy with their excellent results.”

This university-generated technology continues to show promise in other areas as well, including the treatment of Barrett’s esophagus dysplasia, a precancerous condition of the esophageal lining.

Levulan™ Photodynamic Therapy: Shedding new light on skin disorders

For the past 18 years, PARTEQ has championed the creation of spinoff companies as vehicles for the early-stage growth of promising technologies. This approach has enabled PARTEQ to develop the potential of Queen’s discoveries to the point where they are strongly positioned to attract external investment. Since 1987 PARTEQ has created 19 spinoff companies and licensed technologies leading to the formation of an additional 18 companies.

During the past fiscal year PARTEQ participated in forming two new companies:

BKIN Technologies, a developer of next-generation assessment systems that quantify sensorimotor performance and behaviour, supporting basic and clinical research on motor function. BKIN’s first product, KINARM, is a patented robotic assessment system for quantifying upper limb motor function, enabling researchers and clinicians to identify the nature and severity of neurological motor dysfunction. BKIN was founded on the research of Dr. Stephen Scott of Queen’s Department of Anatomy and Cell Biology. www.bkintechnologies.com

Levulan™ Photodynamic Therapy: Shedding new light on skin disorders

Xuuk Xuuk, formed based on research into eye-gaze sensing and tracking technology by Dr. Roel Vertegaal of Queen’s School of Computing. The company’s focus is on the development and marketing of novel hardware and software for tracking eye movements in real time, with applications in television and voice-command appliances. www.xuuk.com

New Companies

Spinoff company activity

Xuuk


BKIN Technologies

• PARTEQ ANNUAL REPORT

The aging and deterioration of prestressed concrete pipes used in municipal water systems is a signifi cant concern to the water utility industry. For many years, utilities had no reliable method to identify even seriously distressed sections of pipe, and the usual remedy in such cases was to replace entire pipelines. At an estimated cost of $3 million to $15 million per mile of pipe, the solution was ineffi cient and costly.

However, water utilities now have another option, thanks to the electromagnetic research of a Queen’s University researcher. Professor David Atherton’s patented Remote Field Eddy Current/Transformer Coupling (RFEC/TC) technique to detect compromised sections of prestressed concrete cylinder pipes (PCCP) has enabled pipeline operators to make informed judgments on repairs, replacement, and growth of deterioration in individual pipe-line segments, while eliminating the need to replace entire sections of water mains. The technology saves utilities approximately 96 per cent of replacement costs, or up to $14 million per mile.

Professor Atherton’s portable, non-destructive electromagnetic inspection technique has been commercialized by the Pressure Pipe Inspection Company of Mississauga, Ontario, Canada. Founded in 1997, this award-winning company has inspected upwards of 3,000 miles of pipelines in four countries, including major municipal projects in Texas, California and Arizona.

Closer to home, Pressure Pipe has assisted utility companies in Alberta, Manitoba, Ontario, Quebec and Nova Scotia in identifying leaks and validating the integrity of major water pipelines. The company continues to grow rapidly, with clients across North America, South America and the Middle East.

Pressure Pipe Inspection Company: Offering a solution to the $15-million mile

This year saw a number of PARTEQ’s spinoff companies make significant progress in the development of their products. They also raised a cumulative $118 million in investor funding.

Some highlights of the year include:

AtheroChem Inc. – Biopharmaceutical company focused on preventing and revers-ing the development of atherosclerosis, the primary cause of coronary heart disease.

Established in 2004, AtheroChem is based on intellectual property developed by Dr. Robert Kisilevsky, whose earlier research into amyloid proteins led to the formation of Neurochem, Inc. During the past year AtheroChem has further developed its lead product candidate for the treatment of atherosclerosis, showing proof of efficacy in a key animal model of atherosclerosis. The research of Dr. Kisilevsky was recognized by the

Established CompaniesCanadian Institutes of Health Research with a $100,000 grant from its Proof of Principle Partnered Program. On the financial side, the company secured additional angel funding and hired two full-time employees. AtheroChem also made progress in financing discussions with a number of U.S. venture capital firms. Earlier this year the company’s potential was recognized by the Kingston Technology Council, receiving an Award of Excellence in the Emerging Technology category. www.atherochem.com

Cytochroma Inc. – Pharmaceutical development company identifying and developing novel, highly potent and specific small molecule drugs regulating cytochrome P450s to treat cancer and skin diseases.

Cytochroma was established in 1996 based on the research of Drs. Glenville Jones and Martin Petkovich of Queen’s Department of Biochemistry. During the past year the company successfully

completed Phase IA clinical trials of its novel small-molecule drug candidate for the treatment of mild to moderate psoriasis. The company is currently con-ducting Phase IB studies and expects to begin Phase II clinical trials this fall. www.cytochroma.com

Datec Coating Corp. – Advanced materials company using novel ceramic coating technology for applications in the automotive, plastics and appliance industries. Datec Coating Corp. was established in 1994 based on the doctoral research of David Barrow and Edward Petroff of Queen’s Department of Physics. This year saw the company begin production of its heating element product line and continue development of its ceramic cooktop. It also closed on financing of $1 million from the Business Development Bank of Canada and Trellis Capital Corp.www.dateccoating.com


amyloid research of Queen’s University scientists Drs. Robert Kisilevsky and Walter Szarek, and on epilepsy research of Dr. Donald Weaver, Neurochem has continued to gain momentum as it advances three products to market. Mile-stones included:• Completion of Phase III clinical trial for Fibrillex™, a treatment for AA Amyloidosis, a fatal disease for which there is currently no treatment. Earlier this year the FDA designated Fibrillex a Fast Track Product, which expedites the development and review of a new drug that is intended for the preven-tion or treatment of a serious or life-threatening condition.• Commencement of Phase III clinical trial for Alzhemed™, a treatment for Alzheimer’s disease, following positive Phase II results. Nine hundred and fifty patients with mild to moderate Alzheimer’s have been enrolled in the North American study, with a European study to begin in fall, 2005. • Completion of Phase II clinical

trial into the safety of Cerebril, an investigational product candidate for the treatment of Hemorrhagic Stroke due to Cerebral Amyloid Angiopathy (HS-CAA). • Completion of a public share offer-ing, raising US $61.2 million. www.neurochem.com

Performance Plants Inc. – Plant genetics company focused on increasing yields in commercial crops by enhancing the plant’s ability to protect itself against environmental stresses. Performance Plants was established in 1995 and since that time has been headed by co-founder Dr. David Dennis. The company is currently completing its fourth year of field trials using its Value Enhanced, Stress Tolerant (VEST™) technology, having suc-cessfully demonstrated its ability to protect crop plant yields against inconsistent water supply, including drought. The company continues to develop technologies that increase yield and enhance performance in

CITA Neuro Pharmaceuticals (formerly GB Therapeutics Ltd.) – Development -stage pharmaceutical company developing products for neurodegenerative disorders and neuropathic pain.

CITA Neuro Pharmaceuticals was estab-lished in 1997 to advance research into neurodegenerative diseases by Drs. Brian Bennett, Roland Boegman, Khem Jha-mandas and James Reynolds of Queen’s Department of Pharmacology and Dr. Gregory Thatcher, formerly of Queen’s Department of Chemistry. Over the past year CITA in-licensed two clinical-stage drug candidates and filed a prospectus for an Initial Public Offering. www.citaneuro.com

Neurochem Inc. – Specialty pharma-ceutical company discovering and develop-ing therapeutic treatments for diseases characterized by the presence of toxic deposits of amyloid protein.

Established in 1993 based on the


canola, corn, soybeans and cotton. www.performanceplants.com

Qubit Systems Inc. – Design, manufac-ture and distribution company specializing in gas detection analysers and high quality, low-cost research and teaching instrumentation for the biological sciences.

Qubit Systems was established in 1995 by Drs. David Layzell and Stephen Hunt and Nicholas Dowling of Queen’s Department of Biology, who recognized a need for low-cost products to sup-port research and teaching in biological sciences. Over the past year Qubit has forged alliances with companies in the UK, Denmark and the Czech Repub-lic. New ventures with these companies in the fields of drug development, fish biology, and plant biotechnology are showing great promise for 2005 and beyond. Closer to home, Qubit Systems is a corporate founder and shareholder in Pathogen Detection Systems Inc., a new company based in Kingston that devel-

ops technology for monitoring drink-ing water. Qubit Systems was heavily involved in the design and manufacture of the first prototype devices for auto-mated sampling and testing of water for bacterial contamination. www.qubitsystems.com


Dr. David Dennis, CEO, Performance Plants

Licensing Activity

The Commercial Development Team: Anne Vivian-Scott, Randall North, Perry Kim, Davis Hill


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One of the ways that PARTEQ helps to bring Queen’s discoveries to market is through the licensing of Queen’s-generated technologies to external companies. In 2004-05 PARTEQ’s licensing activity gener-ated approximately $823,000 in revenues, primarily through royalties generated by previously licensed products.

PARTEQ saw a number of new tech-nologies licensed to external companies over the past year. Licensing allows these companies to develop and, ultimately, market and sell the products generated by Queen’s research. In turn, Queen’s and its inventors reap a share of proceeds resulting from this process. New tech-nologies licensed this year include:

Colonic Cleansing - An electrolyte solu-tion to rehydrate patients prior to undergoing gastrointestinal procedures such as colonoscopy, developed by Drs. Stephen Vanner, Robert Barclay and William Depew of Queen’s Department of Medicine.

Patent applications have been filed in Canada and the U.S. and rights to the technology have been licensed to C.B. Fleet Inc. of Lynchburg, Virginia. Extractive Fermentation – A novel extractive fermentation technology for more efficient production of ethanol, developed by Dr. Andrew Daugulis of Queen’s Department of Chemical Engineering.

This patented technology was exclusively licensed to Xethanol Corporation of New York, where it will advance the compa-ny’s mission to extract and convert the sugars trapped in biomass into ethanol and other valuable co-products.

Multidrug Resistance Protein and Antibodies – PARTEQ’s most frequently licensed technology, used to advance under-standing of drug resistance, generated by the research of Drs. Susan Cole and Roger Deeley of the Queen’s Cancer Research Institute.

Technology relating to the use of MRP for drug transport and disposition was licensed to Becton Dickinson and Com-pany of New Jersey and Solvo Biotech-nologies of Hungary, bringing to 10 the total number of active licensees using Queen’s MRP technologies.

Voltage Regulator Model – A device that provides a power source to next-gen-eration microprocessors developed by Dr. Praveen Jain of Queen’s Department of Electrical and Computer Engineering.

This technology has been licensed to CHIL Systems Inc. of Ottawa, a new company focused on digital power con-trollers for the computing industry.

PARTEQ ANNUAL REPORT • PAGE 18PARTEQ ANNUAL REPORT • PAGE 18

Dr. Andrew Daugulis, inventor of extractive fermentation technology

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product and earlier this year was selected to supply 800 solar collectors and resi-dential hot water heating units for North America’s first large-scale, solar-based dis-trict heating project in Okotoks, Alberta. www.enerworks.com

Levulan™ Photodynamic Therapy - Initially discovered by Drs. James Ken-nedy of Queen’s University and Roy Pottier of Royal Military College and licensed to DUSA Pharmaceuticals Inc.

This novel treatment for pre-cancer-ous skin lesions continued to achieve widespread use by the medical com-munity, and sales showed strong growth. The company continues to expand the application of Levulan™, commenc-ing Phase II clinical trials for its use in the treatment of acne, photodamaged skin and Barrett’s esophagus dysplasia, a precancerous condition of the esophageal lining. DUSA also signed a second agree-ment with the U.S. National Cancer Institute for clinical development of

As well, there were a number of develop-ments in PARTEQ-licensed products already on the market.

Axcess RX™ - A novel software tool for managing patient waiting lists, based on intellectual property developed by Dr. John Marshall and John Lott of Kingston General Hospital and licensed to AdapCS Canada Inc.

AdapCS is concluding advanced discus-sions for purchase of the tool by the Capital District Health Authority of Nova Scotia, and it continues to attract the interest of the Canadian health care system. www.adapcscanada.com

Solar Domestic Hot Water Heater - A product based on the solar heating research of Dr. Stephen Harrison of Queen’s University and licensed to EnerWorks Inc. of London, Ontario.

EnerWorks continues to promote this

Levulan™ for the treatment of oral cavity dysplasia, a precancerous condition of the mouth and throat. www.dusapharma.com

Pathogen Detection Systems - Fibre optic technology for rapid, auto-mated bacteria detection in water systems, developed by Dr. Stephen Brown and a team of researchers at Queen’s University and licensed to Pathogen Detection Systems Inc. of Kingston.

PDS successfully delivered its inaugural desktop unit for automated, on-line E. coli testing on a trial basis to its first commercial customer this year. It also finalized the first tranche of $1.5 million in financing from the Business Develop-ment Bank of Canada. www.pathogendetect.com

In the R&D pipeline:Because research discoveries are generally a long way from being marketable products, early stage


technologies may require further research and development before they achieve readiness for devel-opment by licensees. Usually this R&D work is carried out through collaborations between the re-searcher and an external research partner. Two examples of such collaborations are:

Plant Growth Method Using Hydrogen –This method for enhancing plant growth and yield using hydrogen gas was developed by Dr. David Layzell and a research team in Queen’s Department of Biology.

Patented in Europe, India, Australia, South Africa and most recently in the U.S., this technology is being further developed by Grains Research Development Corporation of Australia.

Optical Loop Ring-Down – This patented technology, developed by Dr. Hans-Peter Loock and a research team in Queen’s Department of Chemistry, is part of

a next-generation “intelligent sensor” that uses spectroscopy to detect minute quantities of organic compounds, such as environmen-tal contaminants in groundwater.

PRECARN Inc., an industrial con-sortium supporting the development of intelligent systems technologies, has funded additional research in the technology. Avensys Inc., a developer of environmental monitoring systems, is assisting with further development.


Dr. David Layzell, inventor of plant growth method using hydrogen

Disclosures & Patenting Activity

Technology transfer begins with disclosure to PARTEQ of promis-ing early-stage technologies by Queen’s and KGH researchers. PARTEQ continues the process with commercial assessment, and, if appropriate, protection of the discovery.

Disclosures:Disclosure, the first step in the process of protecting and commercializing university research, allows PARTEQ to assess researchers’ discoveries for commercial potential. During the past fiscal year PARTEQ received 52 new disclosures -- 35 physical sciences, 16 life sciences and 1 social sciences -- from researchers at Queen’s University and Kingston General Hospital.

The Intellectual Property Protection Team: Deb Chinnery, Carol Miernicki Steeg, Angela Lyon, Stephen Scribner


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Patent Activity Strong patent protection is vital to the successful commercialization of early-stage technologies generated by Queen’s University researchers. PARTEQ has developed a number of approaches for managing patents, including both the use of our internal patent agents and of external counsel, but we maintain fi nal control over almost our entire patent portfolio. We also continue to work with our spinoff companies to ensure that the IP licensed to them by us is appropriately prosecuted and maintained.

During the past fi scal year, we fi led 10 original (provisional or formal) U.S. patent applications (13 in FY 03/04), and a total of 68 separate patent ap-plications (86 in FY 03/04). A total of 21 patents were issued during the year, including eight U.S. patents, four Cana-dian, fi ve European and two Australian patents and one each from Japan and Israel, bringing to 224 the total number of patents in our portfolio.

Invention Disclosures

Original US Patent Applications


The next time you enjoy a crunchy bite of prepackaged salad greens, you can thank Qubit Systems Inc., the Queen’s University-based developer of low-cost, high quality laboratory and teaching equipment.

Recently the Kingston, Ontario company designed and manufactured respiratory analysis systems for Fresh Express Inc. of California, one of the world’s largest producers and distributors of fresh salads, fruit and vegetables. Qubit’s custom-built instrumentation allows the company to test the freshness of its salad ingredients before packaging and selling them.

Qubit Systems was born at Queen’s University after biologist Dr. David Layzell and his teaching and re-search associates recognized a need for durable, inexpensive laboratory equipment for students. The com-pany now provides both standard and customized research and instrumentation systems for more than 500 educational and research institutions in 50 countries worldwide.

Teaching faculty praise the company’s educational packages for advancing student learning of biological processes such as photosynthesis and nitrogen fi xation, while researchers in the fi eld depend on Qubit equipment for its ruggedness, versatility, and accuracy. An increasing volume of published research founded on Qubit technology is now being produced by laboratories around the world.

Meanwhile, Qubit’s growing reputation for expertise in gas analyzer technologies has resulted in an expanding industrial client base in the fi elds of drug development, fi sh biology and plant biotechnology.

From a self-contained oxygen measuring system for scientists aboard a research icebreaker in the Arctic, to prototypes for automated sampling and testing of water for E. coli, Qubit Systems continues to provide technological innovations in measurement and analysis to the fi elds of teaching, research and product development.

Qubit Systems Inc.: Innovations in scientifi c inquiry


Organization/People:PARTEQ hired a new Associate Director, Commercial Development focusing on discoveries in the physical sciences. Randall North is a professional engineer with more than two decades of experience in engineering, product development and marketing of advanced technologies including semiconductors, optical com-ponents, and software products.

PARTEQ was also awarded funding by the Canadian Institutes of Health Re-search (CIHR) for the hiring of an intern in commercial management of technolo-gies arising from life sciences research.

New InitiativesVenture Fund:PARTEQ has taken a lead role in seeking funding mechanisms for early-stage startups. The newest addition to our venture funding pool is the Tricolour Fund, established by Queen’s School of Business in partnership with PARTEQ Innovations. The fund will function as an investment vehicle for early stage opportunities, as well as a hands-on learning tool and course requirement in the School of Business Venture Manage-ment Program. PARTEQ will provide day-to-day management of the fund.

This initiative increases to more than $26 million the value of PARTEQ’s portfolio of sponsored venture funds for advanc-ing to market innovative technologies discovered at Queen’s.

Entrepreneurship Award:The Atherton Entrepreneurship Award was established earlier this year to assist in the formation of an entrepreneurial scientific or engineering business by students, postdoc-toral fellows, adjunct professors or research associates at Queen’s. Eligible candidates must be under the age of 35 and must have been at Queen’s for at least 18 months. The prize, managed by PARTEQ, is financed by proceeds donated by Professor David Atherton and the Pressure Pipe Inspection Company (PPIC) of Mississauga, Ontario.


Professor David Atherton, right, with Queen’s Principal Karen Hitchcock and PARTEQ CEO John Molloy

Financials

2005

82371

5861,480

1,762378125

2,265

785

2004

8145,353

4576,624

1,692184

5,3837,259

635

Revenues:LicensingGain on sale of equityOther

Expenditures:OperatingDistribution to inventorsNet amount to Queen’s University

Excess of expenditures over revenues

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$

$

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PARTEQ’s continued licensing efforts allowed PARTEQ to return $503,000 to the Queen’s community in the year ended March 31, 2005 bringing the total returned to $21.5 million since inception.

Condensed statement of revenue and expenditures for the year ended March 31, 2005(in thousands of dollars)

PAGE 25 • PARTEQ ANNUAL REPORTPAGE 25 • PARTEQ ANNUAL REPORT

A Queen’s University student residence is reducing its utility costs by thousands of dollars per year, thanks to innovative solar hot water heating technologies invented by Dr. Stephen Harrison at Queen’s University, and manufactured and marketed by EnerWorks, Inc., a London, Ontario provider of solar hot water appli-ances for residential and commercial applications in both new and retrofi t construction.

“Installing solar allowed the removal of one of two electric hot water tanks and helped reduce the electricity bill in the house by 25 percent,” says Brent Bellamy, General Manager of the Science ’44 Co-operative Student Housing in Kingston, Ontario.

The Science ’44 Co-op is just one of a growing number of users of the integrated residential solar hot water heating system across Canada. Low-cost, reliable, and easily integrated into existing hot-water heating systems, the EnerWorks system reduces residential hot water heating costs by 50% or more, providing an environmentally friendly alternative to traditional systems.

Large-scale housing developments are also taking advantage of the energy-effi cient system. In March, Ener-Works was chosen to supply hot water heating technology to North America’s fi rst large-scale, solar-based district heating project in Okotoks, Alberta. The 52-home development near Calgary will reduce green-house gas emissions by 5 tonnes per home per year.

The company will also be providing solar technology for a 500-home thermal utility project in the Toronto area, combining solar-charged ground source heating and solar water heating. Closer to home, Kingston’s Confederation Place Hotel is poised to become the fi rst commercial user of the EnerWorks system in Eastern Canada. The technology is expected to save the hotel up to 48, 000 kWh (about 7,150 m3 of natural gas) per year.

EnerWorks technology saves power, and the environment


Alzhemed™: Signs of hope for Alzheimer’s patients

Elizabeth Harvey is an 85-year-old Alzheimer’s patient profi led in “Seven Ways to Save a Brain,” a recent Newsweek magazine feature. Five years after she was diagnosed, the article notes, Ms Harvey continues to live at home, dress herself and fi x her own lunch. Meanwhile, her cognitive-test scores, a key indicator of the progression of the disease, have not declined in more than three years – a result that her neurophsychologist calls “unheard of.”

Making the difference in Ms. Harvey’s quality of life is her participation in tests of an experimental drug called Alzhemed™. Currently in a Phase III clinical trial, Alzhemed™ is rooted in groundbreaking amyloid research at Queen’s University – research that led to the formation of Neurochem Inc., a Canadian biopharmaceutical company that is developing drugs for a variety of amyloid-related diseases, including Alzheimer’s disease, AA amyloidosis, a fatal condition with no approved treatment, and hemorrhagic stroke due to cerebral amyloid angiopathy.

For Alzhemed™, the indicators so far are promising. Interim results from an open-label Phase II extension study of the drug candidate showed stable or improved cognitive function in approximately 70 per cent of the mild Alzheimer’s patients tested after 20 months of enrolment. Approximately 18 million people world-wide suffer from dementia associated with Alzheimer’s.

“Alzhemed has shown promising results in clinical trials as a drug that may favourably infl uence the disease process,” says Dr. Paul Aisen, Professor of Neurology and Medicine at Georgetown University Medical Centre and principal investigator of the Phase III trial in the U.S. “Literally millions of patients would stand to gain if the results of Neurochem’s Phase III trial are positive.”

Currently 950 patients across Canada and the U.S. are taking part in the most recent study, which will conclude in late 2006.

Inventors Robert Kisilevsky and Walter Szarek


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What do aerospace parts, medical devices, armor plating and sporting goods have in common? All are being enhanced by nanomaterials research pioneered at Queen’s University, where metallurgist Dr. Uwe Erb discovered a novel way to manipulate the grain size of nickel using electrodeposition, a widely used, low-cost metal processing technique. The resulting nanocrystalline (grain size less than100 nm) nickel and nickel alloys displayed highly enhanced properties, including superior resistance to wear, friction and corrosion, and increased strength and hardness.

Dr. Erb’s innovation contributed to the formation of Integran Technologies Inc., a Toronto-based advanced materials company that has opened up new avenues in the development of nanostructured metals, alloys and composites.

Integran’s patented Nanoplate™ technology is enhancing a broad spectrum of products, including sporting goods. At least one major professional sport has begun to use equipment strengthened with Nanoplate™components. The technology can also be used to manufacture cardiovascular stent tubing, used in cardiac surgery.

A further application has been the development of an environmentally benign replacement for hexava-lent hard chrome plating technologies, which are hazardous to health and the environment. Integran’s nano-crystalline cobalt-phosphorus deposition process creates protective metal surfaces that are wear-, friction- and corrosion-resistant. The technology, which is cost-competitive and easily integrated into current manufacturing processes, is currently being developed for the aerospace and defence industries, with automotive applications expected to follow.

NanoPlate™: Novel use of a common process yields uncommonly strong materials

PARTEQ ANNUAL REPORT • PAGE 28PARTEQ ANNUAL REPORT • PAGE 28

The PARTEQ team:Back row: Angela Lyon, Sue Kellar, Stephen Scribner, Jane Gordon, Mary Anne Beaudette, Randall North, Perry Kim, Paul Vickers, Deb Chinnery, Davis Hill. Front row: Carol Miernicki Steeg, John Molloy, Anne Vivian-Scott.

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GovernancePARTEQ has an exclusive, world-wide, royalty bearing licence to make, use and sell intellectual property owned by Queen’s Univer-sity. This arrangement is detailed in the Management and License Agreement between Queen’s and PARTEQ, revised April 1, 2002.

PARTEQ is governed by an inde-pendent board of directors, chaired by the Vice-Principal (Research) of Queen’s. Board members must be approved by the Principal. Our Board of DirectorsAs of March 31, 2005

Dr. Kerry Rowe, ChairVice-Principal (Research), Queen’s University

Mr. Eric BakerPresident, Miralta Capital Inc.

Dr. Susan ColeCanada Research Chair in Cancer Biology, Queen’s University

Mr. Robert LittleManaging Partner, Cunningham, Swan, Carty, Little & Bonham

Mr. John Molloy, SecretaryPresident & CEO, PARTEQ Innovations

Dr. Elspeth MurrayAssociate Professor, Queen’s School of Business

Mr. Kent PlumleyPartner, Osler, Hoskin and Harcourt LLP

Mr. Tom ThayerSpecial Advisor to the Vice-Principal, Operations and Finance, Queen’s University

Mr. David WhitingFounder and President, Merlan Scientific Ltd.

Mr. Bill YoungManaging Director, Monitor Clipper Partners

Our Staff

John Molloy President & CEO

Patent Team:

Carol Miernicki Steeg, PhD Vice President, Intellectual Property Stephen Scribner, PhD Registered Patent Agent Angela Lyon, MSc Technical Specialist, Patents Deb Chinnery Patent Assistant

Commercialization Team: Anne Vivian-Scott, P Eng, MBA Director, Commercial Development Randall North, P Eng Associate Director, Commercial Development Davis Hill, MBA Manager, Commercial Development Perry Kim, PhD Manager, Commercial Development

Administrative Team: Paul Vickers, CA Director, Finance & Information Systems

Mary Anne Beaudette Manager, Communications

Jane Gordon Office Manager

Sue Kellar Secretary


1625 Biosciences ComplexQueen’s UniversityKingston, OntarioCanada K7L 3N6

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annual report 2005 - parteq innovations · 2015-04-19 · with applications in the automotive,...

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