the growth of bio-agriculture • funding big ideas • modelling … · 2014-05-08 ·...

BioZine • Spring 2004 1

The official magazine of Alberta’s bioindustry

The growth of bio-agriculture • Funding big ideas • Modelling success in bioinformatics

The voice for biotechnology in Alberta

Spring 2004

bioalbertaCanadian Publications Agreement #40020055

2 BioZine • Spring 2004


CONTENTS6 Five Years of Progress

BioAlberta executive director Myka Osinchuk and

board chair Andrew Baum look back at the association’s

first five years and forward to its future

9 The Road Leads to AlbertaKnowledge industries such as biotechnology are

finding a wealth of opportunity in this province

by Dr. Richard Perry

10 Bridging GapsPromoting awareness of science in our society is a

key goal for BioAlberta

by Sherry Kully

12 SpotlightMeet the winners of Alberta’s biotechnology awards

14 Sowing the SeedsAgricultural biotechnologists are developing new

crop strains which will bear fruit in the future

by Ian Doig

19 The Next WaveAs the biotech sector in Alberta matures, new

companies are sprouting up to build on the

opportunities

27 The Colour of MoneyFinding patient, risk-oriented capital is key to success

for Alberta’s biotechs

by Kenton Friesen

30 Licensed to SellAn excerpt from Basic Drug and Biotech

Licensing Issues

by Gordon Sustrik and David Parkatti

32 Alberta’s Biotech Leaders

34 BioAlberta Members and Board of Directors


BioZine is the official magazine of Alberta’s bioindustry.

Published by Venture Publishing Inc. for BioAlberta

PUBLISHER/EDITOR

Ruth [email protected]

EXECUTIVE EDITOR

Myka [email protected]

MANAGING EDITOR

Ryan [email protected]

ART DIRECTOR

Tamara [email protected]

PRODUCTION

Vanlee [email protected]

CIRCULATION

Rob [email protected]

ADVERTISING REPRESENTATIVES

Pardee Badyal, Ralph Crespo, Anita McGillis,Kathleen O’Halloran

CONTRIBUTORS

Ian Doig, Kenton Friesen, Sherry Kully, DavidParkatti, Dr. Richard Perry, Gordon Sustrik

Phipps McKinnon Building Suite 1730

10020 - 101A Ave NW Edmonton, AB T5J 3G2

T: 780 425-3804F: 780 409-9263

E: [email protected]

EXECUTIVE DIRECTOR

Myka Osinchuk

BIOPRODUCTS MANAGER

John Christensen

MANAGER, INDUSTRY DEVELOPMENT

Ryan Radke

EVENTS COORDINATOR & MEMBERSHIP ADMINISTRATOR

Sherry Kully

ADMINISTRATIVE ASSISTANT

Sandra Wilburn

Contents copyright 2004 by BioAlberta. Content maynot be reprinted or reproduced without permission

from BioAlberta.

Publications Mail Agreement #40020055Return undeliverable mail to Circulation Department,

Ste 201-10350 124 Street, Edmonton, AB T5N 3V9

Spring 2004

bioalberta


his year, BioAlberta will celebrate itsfifth anniversary. We’ve supportedthe bioindustry in Alberta throughits growth from less than 25 compa-

nies to more than 60, through the “hot” mar-kets of 2000/2001, the nuclear winter in2002/early 2003, and back to a positive cli-mate for growth this year. Our activities havecentered around marketing and creatingawareness of Alberta’s industry and researchcapabilities, and around providing network-ing/training/business development assistanceto our members. Over the past year, our atten-tion has turned to advocacy. BioAlberta hasbeen actively meeting with government offi-cials to talk about the opportunities that thebioindustry holds for Alberta, and to encour-age policy changes that will ensure that ourindustry continues to grow.

Advances in life sciences research andindustry are taking place on theworld stage. There is global recogni-

tion of the future economic potential ofthe biotechnology sector, and jurisdic-

tions around the world aretaking definitive steps to cap-

ture that potential. Furthermore,wealth creation and econom-ic diversification are only a

small part of the life sciencesrevolution; while the speedof the Internet has trans-

formed the way business oper-ates, the speed of new advances in life

sciences is blurring the boundariesbetween agribusiness, chemicals,

health, pharmaceuticals, ener-gy, and computing.

Biotechnology holds the promiseof improved human health and wel-

fare through better understanding of dis-ease, improved diagnosis, and treatmentwith more specific biopharmaceutical

products. The genetic enhancement of agricul-tural and food products will deliver productivi-ty, competitiveness and sustainability benefits.Environmental protection, bioremediation, sus-tainable forest development and innovation ofthe energy industry will all be possible throughlife science research and innovation.

Alberta is already part of this growing glob-al industry. The province has proven, world-class strengths in life sciences research. We are

Tdeveloping innovative products, buildinggrowing enterprises, attracting investment andcreating high value employment. However, thecontinued expansion of the province’s emerg-ing life-sciences sector is far from guaranteed.Other technology centres around the worldhave recognized the growth potential of thissector and are developing innovative strategiesfor increasing scientific, social and economicreturns in their regions.

The transformation and development ofAlberta’s economy depends to a large degreeupon innovation and the growth of technolo-gy-based industries. Information technology,wireless, new media and biotechnology arealready emerging as potential world-class tech-nology clusters in Alberta. Of critical impor-tance is the political will required to build andsustain these industries and a continued com-mitment to ensuring a positive business cli-mate for the growth of industry. There is a needfor a targeted set of programs designed to meetthe unique character of the bioindustry.

Our VisionAlberta has an unparalleled opportunity to cap-ture the enormous economic, health, environ-mental and societal potential that will arisefrom innovation and a global vision. With thesupport of the provincial government, thebioindustry sector in Alberta can achieve thefollowing in the next five to 10 years:• Sustain at least two large revenue-

generating, locally originated biotech companies in Alberta;

• Increase the number of biotech companies to more than 100: both companies based in Alberta, and significant local operations of non-Alberta based companies. Distribution of those companies would be as follows: 40% start-up (one to three years), 30% early development phase (pre-clinical – Phase I/II), 15% late development phase (Phase II/III), 15% revenue from products;

• Increase the number of people directly employed in biotech to 5,000;

• Heighten the recognition of Alberta as an “up and coming” global biotech region;

• Establish a pool of experienced talent to encourage, advise, and support the growth of Alberta’s bioindustry.

BIOALBERTA EXECUTIVE

DIRECTOR MYKA

OSINCHUK AND BOARD

CHAIR ANDREW BAUM

LOOK BACK AT THE

ASSOCIATION’S FIRST

FIVE YEARS AND

FORWARD TO ITS

FUTURE

FIVE YEARS OF PROGRESS


The Road AheadBioAlberta’s policy agenda over the next two yearsincludes the following recommendations:Establish provincial SR&ED tax creditImprove our global competitiveness through theimplementation of a provincial research anddevelopment tax credit.Facilitate equity investmentIntroduce mechanisms that would improve theavailability of equity capital for Alberta technolo-gy companies.Provide provincial personal income tax exemption forforeign researchers and executivesEncourage the attraction of highly skilled workersto the Alberta by introducing a five-year provincialpersonal income tax exemption on employmentincome for out-of-province researchers employedby a business conducting research and develop-ment in Alberta and for individuals with specificskills and/or experience unique to the biotechnol-ogy industry.Improve access to and commercialization of technologyHarmonize technology commercialization policyin Alberta and improve mechanisms for indus-try/research partnerships that will facilitate com-mercialization and industry access to Albertatechnology.Actively involve industryActively support industry development initiativesby industry development organizations and ensurethat industry is included in policy decision-making.

In addition to the advocacy agenda, BioAlbertaalso plans to introduce new member programs,expand our linkages with the Biotech Accord tostep-up discount programs, increase our scienceawareness activities, and explore opportunities fora least one industry conference in Alberta.

These activities all serve our BioAlberta’s mis-sion: to attract, build, retain and grow the bioindus-try in Alberta. We will continue to help our 125 plusmembers grow their business through our advocacy,marketing, and business support activities. BZ

Myka Osinchuk Executive DirectorBioAlberta

Andrew Baum ChairmanBioAlbertaCEO, SemBioSys Genetics Inc.


THE ROAD LEADSTO ALBERTA

iotechnology and life sciences com-panies from around the world are dis-covering that the road to successleads to Alberta. A positive environ-

ment, world-class research facilities, a benefi-cial tax structure, a commitment to innovationand a great quality of life are just a few reasonswhy companies are choosing Alberta as theplace to live, work and do business.

Alberta consistently leads the nation inmany key economic areas. In 2003, employ-ment in Alberta grew by 2.9%, the highest ratein Canada. The unemployment rate was only5.1%, and Alberta is known for having one ofthe most productive work forces in Canada,with 49% of workers holding post-secondarydegrees or certificates.

Financially, Alberta is a model for NorthAmerica, with its commitment to balancedbudgets and debt reduction payments. Personaltaxes continue to be among the lowest inCanada, especially at higher income levels,which is attracting executive level personnel,investors and entrepreneurs.

Alberta has earned a favourable reputationas a region that offers a superior quality of life,from a rich cultural scene to recreational areasin picturesque settings. The province has aworld-class health care system and an educa-tion system ranked among the best in theworld. Alberta is a prosperous province thatbrings together the best in medicine, energyand agriculture, and is now becoming a centrefor knowledge industries like biotechnology,nanotechnology, and information and commu-nications technology.

Alberta also has a positive reputation for itscommitment to supporting research infrastruc-ture. Current projects under constructioninclude the Health Research InnovationFacilities in Edmonton and Calgary, theNational Institute for Nanotechnology, and theCentres for Cardiac and Osteoporosis research.

Through the Alberta Science and ResearchAuthority and the Alberta Heritage Foundationfor Medical Research, the government ofAlberta has established a tradition of scientificexcellence within the province’s research com-munity. Alberta is also home to several organi-

Bzations that help commercialize products andtransfer ideas into companies resulting fromthis research, including Inno-centre Alberta,AVAC Ltd. and the Alberta Research Council.

Alberta is now concentrating on bringingvarious sectors together, particularly thebiotechnology and biomedical industries.SemBioSys Genetics is combining genomicsand agriculture in molecular pharming appli-cations. Bioinformatics is being used byCyberCell Technologies Inc. to produce virtualcells, and BioTools Inc. to make gene visuali-zation products. Bioproducts is another emerg-ing area in Alberta, with developments in agri-health applications, nutraceuticals, energyfoods and bioplastics.

Biotechnology companies have foundAlberta to be the right place to do research.Cytovax Biotechnologies Inc. is developingnovel approaches to prevent and treat infec-tious diseases. BioMS Medical Corporation isworking on drugs to combat multiple sclero-sis. Oncolytics Biotech Inc. is helping treatcancer with its reo-virus. Diagnostic firms, likeChenomx Inc., are using nuclear magnetic reso-nance to help pharmaceutical companies solvetheir clinical study challenges. SciMed Labor-atories Inc. is using microbiologics to test thenutritional value of food and beverages. Albertais also home to many biomanufacturing andpackaging companies, including NAEJA Pharm-aceuticals Inc., Degussa AG, KS Avicenna andBanner Pharmacaps (Canada) Ltd.

Thanks to a nurturing environment, solidresearch infrastructure and commitment fromgovernment, biotechnology companies havefound success in Alberta. Alberta Innovationand Science continues to do its part to promoteresearch and innovation, and connect compa-nies, researchers and funders. This commit-ment and those partnerships are makingAlberta’s biotechnology sector strong and glob-ally competitive. BZ

For more information on the Government of Alberta’s support for the biotechnology industry, contact Dr. Richard Perry [email protected] or visit www.innovation.ab.ca

KNOWLEDGE

INDUSTRIES SUCH AS

BIOTECHNOLOGY ARE

FINDING A WEALTH OF

OPPORTUNITY IN THIS

PROVINCE

BY DR. RICHARD PERRY


BRIDGING GAPSiotechnology is creating new wealth,jobs and products that are improvingthe quality of life in Alberta. As theindustry grows, it is critical that

Albertans are well informed about the benefitsof the science and the industry, and that stu-dents be given the opportunity to learn aboutand consider careers in the bioindustry inAlberta.

Fostering interest in life sciences is a keypriority for BioAlberta. A knowledge gap existsbetween the general public and the bio-com-munity in the province, and BioAlberta isworking to bridge this gap through outreach toteachers and students, the general public andopinion leaders.

Our goals include:• Increasing the number of students in the

province pursuing biotechnology careers through programs that provide students with hands on experience in developing projects and working directly with biotechnology industry and scientific mentors;

• Raising general public awareness, understanding and appreciation of biotechnology;

• Enhancing the ability of opinion leaders to make well-informed policy decisions by providing timely information and hosting educational forums on biotech-nology topics for key government officials, policy leaders, members of the academic community and industry.A key component of our science awareness

activities is the Aventis Biotechnology Chal-lenge. BioAlberta has hosted this event for thepast four years in Edmonton, and the past threein Calgary, supported by national and regionalsponsors. The competition is held annually in12 centres across the country. The competi-tions are intended to raise awareness amongstudents, educators and the public about theemerging science of biotechnology and itsapplications in health care, agriculture and theenvironment.

Each Aventis Biotechnology Challenge fea-tures the outstanding work of high school stu-dents who have conducted research projectsand experiments of their own design in somearea of biotechnology. Cash prizes are awardedto the top five student teams and their schools

Bbased on the recommendations of judges fromthe scientific and education communities aswell as the biotechnology industry. BioAlbertaand Merck Frosst Canada have also host a lec-ture series on various aspects of biotechnologyas part of the Aventis Biotechnology Challengeexperience.

This year’s competition featured 17 studentteams competing in Edmonton on April 26 and27, 2004, and 9 teams competing in Calgary onMay 3 and 4, 2004. Regional sponsors for theevents included Alberta Agriculture, Food,and Rural Development, Calgary TechnologiesInc., Genome Prairie, Merck Frosst Canada Ltd.,Monsanto Canada Ltd., Protein EngineeringNetwork of Centres of Excellence, SemBioSysGenetics Inc., the University of Alberta andthe University of Calgary. National sponsorswere Aventis Pasteur, Biotechnology HumanResources Council, VWR Internation-al Inc.,Canada Youth Employment Strategy (HRDC),National Research Council and the CanadianInstitutes of Health Research.

BioAlberta will continue to engage, exciteand educate the public (and in particular stu-dents) about biotechnology and its incrediblepotential to impact every part of our lives fromhealth to food and the environment. BZ

For more information about the AventisBiotechnology Challenge in Alberta, contact Sherry Kully via email [email protected].

PROMOTING AWARENESS

OF SCIENCE IN OUR

SOCIETY IS A KEY GOAL

FOR BIOALBERTA

BY SHERRY KULLY


2003 Alberta AventisBiotechnology Challenge winners:

Karalee Beedell, Foothills Composite

High School

“Alternative Cell Receptors for the

Uptake of Recombinant Adenoviral

Vectors”

Mentor: Dr. Daniel Muruve -

University of Calgary

Farah Chowdhury, Old Scona

Academic High School

“Testing in vivo Therapeutic Potential

of Novel Acyclic Nucleoside in the

Duck Hepatitis B (DHBV) Model”

Mentor: Dr. Lorne Tyrell - University

of Alberta

2004 Alberta AventisBiotechnology Challenge winners:

Charles Tran, Old Scona Academic

High School

“Characterizations of Mutations of

the Factor VII Gene”

Mentor: Dr. Bruce Ritchie -

University of Alberta

Vladic Lavrovsky, Queen Elizabeth Jr. /

Sr. High School

“Directed Evolution of Hydrocarbon

Degrading Enzymes”

Mentor: Dr. Michael G. Surette

Left: Vladic Lavrovsky (2004 Calgarywinner) shows off his display on hydro-carbon degrading enzymes

Above: Charles Tran (2004 Edmontonwinner) receives the congratulations ofhis mentor, Dr. Bruce Ritchie


SciMed Laboratories Inc.On March 18, 2004, SciMed Laboratories Inc.was awarded first prize by VenturePrize – thesecond annual Greater Edmonton BusinessPlan Competition.

VenturePrize is the largest business plancompetition of its kind in Canada, and isdesigned for individuals, companies, and fac-ulty and students of post secondary institu-tions who have high- growth business ideas.The award provides SciMed Laboratories witha $100,000 Grand Prize, comprised of $25,000in cash, $25,000 of in-kind business servicesand $50,000 of in-kind research and technolo-gy commercialization services from AlbertaResearch Council.

SciMed Laboratories is a biotechnologyfirm dedicated to the betterment of humanhealth. SciMed has initiated development of anew methodology that will provide dairyprocessors with a user-friendly diagnostic kitcapable “on-site” analysis of vitamins A and Din milk samples. In addition, SciMed intendsto develop and commercialize diagnostic kitsfor detecting toxic residues for the agri-foodand clinical sectors.

Dr. Mark Redmond, CeaproIn November of 2003, Dr. Mark Redmond wasawarded the BioAlberta 2003 Award forEntrepreneurship in Alberta.

Redmond is the president and chief execu-tive officer of Edmonton-based biotechnologycompany, Ceapro. With over 60 patents to hisname, Redmond has led Ceapro’s product andtechnical developments into the global marketsof nutraceuticals, veterinary medicine, person-al care, industrial and medical products.

In accepting the award, Dr. Redmond paidtribute to the enterprise and tenacity of Ceaprostaff, as well as the commitment of the Ceapro’sdrectors and shareholders. “The hard work ofthe Ceapro team has resulted in a company thatis not only profitable but, when assessed onrevenue growth, is one of the fastest growingcompanies in Alberta,” he stated.

Ceapro is a biotechnology company thatdevelops and commercializes natural productsfor medical and animal health industries usingproprietary technology and renewable resources.Ceapro trades its shares on the Canadian TSX-Venture Stock Exchange (TSXV-CZO).

Dr. Gerald Tertzakian, HannibalVentures Inc.In November 2003, Dr. Gerald Tertzakian wasawarded the BioAlberta 2003 Award forIndustry Leadership.

Dr Tertzakian has been a dedicated leader inAlberta’s technology community for the past30 years. He is the former CEO of Cytovax andwas the founder and CEO of Cytovax’s prede-cessor company, Biotex Laboratories Inc. Dr.Tertzakian also spent time as president ofRaylo Chemicals Inc. and has been the recipi-ent of numerous awards. He is a senior advisorto the University of Alberta and a member ofvarious boards of directors.

Dr. Tertzakian is currently the president ofHannibal Ventures Inc., a technology seed cap-ital venture company. BZ

MEET THE WINNERS

OF ALBERTA’S

BIOTECHNOLOGY

AWARDS

SPOTLIGHT

Pictured left to right is the management team of SciMedLaboratories: Dr. Xinli Tang, Director R&D; Dr. Mark Salkie,Medical Director; Ms. Holly Riopel, VP CorporateDevelopment; Dr. Rajan Gupta, Founder & CEO

Pictured left to right: Dr. Mark Redmond of Ceapro;BioAlberta Chair Andrew Baum; BioAlbertaExecutive Director Myka Osinchuk;Dr. Gerald Tertzakian of Hannibal Ventures


small group of companies and researchers have em-

erged as leading examples of what is possible with-

in Alberta’s agricultural biotechnology sector.

Alberta farmers are already great consumers of genetically

modified seed and new applications for agricultural biotech-

nology are taking shape. While farmers buy millions of dollars

in seed yearly from international farm product corporations,

financial success for most agricultural biotech developers is

measured in terms of investment dollars landed.

In 2003, Alberta’s public and corporate agricultural research

and development establishments spent an estimated $135 mil-

lion, approximately 80% of which came from public sources and

20% from private. Of this, 18.5% went to areas affecting biotech-

nology directly.

The Alberta Agricultural Research Institute (AARI) is the

province’s leading agency for co-ordination and support of agri-

cultural research, providing grants for basic research ongoing at

universities, private sector and government laboratories. As

well, the Alberta Research Council (ARC), a subsidiary of the

provincial government’s Alberta Science and Research Authority

(ASRA), develops and commercializes technologies on a con-

tract or co-venture basis, providing biotech corporations with

needed resources.

Sowingthe

SeedsAGRICULTURAL BIOTECH-

NOLOGISTS ARE DEVELOPING

NEW CROP STRAINS WHICH

WILL BEAR FRUIT IN THE

FUTURE

BY IAN DOIG

A


Agricultural biotechnology is largely about the gen-etic refinement of crops and livestock. The mostwidely introduced genetic modifications for seedare for herbicide tolerance and insect tolerance andresistance. Research in plant genomics, or geneticmakeup, could also potentially yield modifiedplants better able to tolerate drought, salinity,extremes of hot and cold and other stress factors.Farmers have recognized the technology’s potentialto boost tight profit margins. Leaders in thisresearch include Edmonton’s AgriGenomics,which is working with the Alberta ResearchCouncil on a collaborative research project todevelop genetically improved crops with increasednutrient uptake, lower use of fertilizer, and greaterresistance to diseases and pathogens. The jointresearch project combines ARC’s expertise in cropimprovement and plant disease management, withthe expertise of AgriGenomics in genetic mappingand gene identification. The three-year project isfocused on developing molecular tools for improv-ing crops.

The research here is cutting edge. Historically,plants are bred under ideal conditions. Such con-ditions do not always prevail in the field. Much ofthe fertilizer used on crops, for example, is lost asit leeches into the ecosystem. The company isdeveloping plants more efficient at utilizing par-ticular fertilizers. AgriGenomis founder Dr. AllenGood is a professor of genetics at the University ofAlberta. “It would be the equivalent of having acar that gets 20 miles to the gallon,” he explains.“You put in a piece of technology that ups themileage to 40 miles per gallon. Your cost savingbecomes significant over time.” According toGood, industry players are eager to buy in if thetechnology is proven.

Another company that has benefited from AARIbasic research funding is Calgary’s SemBioSysGenetics Inc. Founded in 1994, SemBioSys wasbuilt on a revolutionary means of producing andpurifying proteins from plant seeds developed bythe University of Calgary’s Dr. Maurice Moloney.SemBioSys is positioned in what is essentially anew niche – a gray area between agriculture andmedicine. It’s a niche that has garnered significantinvestment interest: Dow AgroSciences Canada, alarge producer and distributor of solutions inweed, insect and disease management and plantgenetics and subsidiary of its global parent basedin Indianapolis, Ind., has invested $10 million.Proteins being grown by SemBioSys have pharma-ceutical applications as treatments for everythingfrom diabetes to hair loss. The technology itself has

SOWING THE SEEDS


wide applications that include not only ingredi-ents for medicine but cosmetics and food and live-stock feed additives. Specialized farmers willgrow, in genetically modified crops, products typi-cally manufactured in production facilities.

Dow AgroSciences has also been active indeveloping new oil seed varieties such as high-oleic varieties of canola seed. High-oleic canolaoil contains more natural monosaturated fats thanregular canola oil and doesn’t require the hydro-genation process, which produces trans fattyacids. Because of that, the product is sought afterby food manufacturers who are being driven toeliminate trans fats from their products by health-conscious consumers. Speciality canola crops areproving to be a financial boon for beleagueredprairie farmers.

Agricultural biotechnology has stirred a great dealof public controversy along consumer health andenvironmental lines. However, Canadian biotech-nology advocates remain upbeat, as NorthAmerican markets remain more open to the tech-nology than the European markets. Greater publicacceptance of agricultural biotechnology and amore stable international market is inevitable, asbiotechnology advances in medicine and con-sumer goods positively and directly affect urbandwellers.

There is a growing government and publicawareness of the encroachment of technology andleading-edge science on traditional agriculturaltechniques. Farming is appreciably different nowthan it was even just five years ago in terms of abroad adoption of technology from computer tobiological. This has touched off a realization thatthe agriculture business is undergoing fundamen-tal change. With exponential growth predicted inthe agricultural biotechnology sector, it makessense, say researchers and company representa-tives, that federal and provincial governments aswell as Canadian venture capitalists stay on top ofthe sector. With support, including positive pub-lic relations and objective media reportage, greatthings already being developed in Alberta willfurther change the face of agriculture, benefitingthe provincial economy. BZ


The NextWave

As the biotechnology sector in Alberta matures,new companies are sprouting up to build on the opportunities

wenty-seven years ago, pioneering researcher Dr. Ray

Lemieux launched Chembiomed, Alberta’s first signifi-

cant biotech business. The company’s intent was to

find practical uses for the research that Dr. Lemieux had done on

molecular recognition and it quickly became a world leader in

the production of biologically active carbohydrates.

From that modest beginning has grown Alberta’s thriving

bioindustry. While still comparatively small, the sector is

achieving the critical mass required to allow spin-off businesses

and complementary companies. Among the established leaders

like Isotechnika, Biomira and SemBioSys Genetics are a crop of

new biotechs eager to make their mark and expand the industry

even further.

T THE VISUAL GENOMICS CENTRE

AT THE U OF C HERALDS A NEW

ERA OF RESEARCH


The universities continue to offer fertile breed-ing ground for new technologies and innova-tive compounds. One of the most exciting is TSBiotech Inc., led by Dr. Derrick Rancourt. AUniversity of Calgary spin-off launched in2001, TS Biotech is based on Rancourt’sresearch with two serine proteinases identifiedby his team, which are associated with theprocesses of hatching and implantation. Thecompany is pursuing applications for theresearch in the areas of assisted reproductionand fertility diagnostics for both humans andanimals.

“We’ve identified proteinases in the mousethat appear to be involved in the early stages ofembyro implantation,” Rancourt explains.“There is evidence that we can suppress fertil-ity using small molecular inhibitors thatwould replace the chemical controls of exist-ing birth control methods. We may also be ableto facilitate assisted reproduction.”

The intellectual property of University ofAlberta’s Drs. David Bundle and GlenArmstrong is the basis of TheraCarb Inc.Pending patenting, TheraCarb is focused ondeveloping a therapeutic agent that treatsAlzheimer’s disease by lowering the serumamyloid P component that is associated withthe illness.

Both TS Biotech and TheraCarb benefitedfrom a 2003 showcase event staged byBioAlberta and Inno-Centre Alberta, entitledBioFinance Excelerator. Inno-Centre Alberta, aprivate non-profit organization funded by theAlberta Heritage Fund for Medical Research,Alberta Ingenuity Fund, Alberta ResearchCouncil, Alberta Science and Research Auth-ority, AVAC, University of Alberta, Universityof Calgary, National Research Council Canadaand Western Economic Diversification, hasplayed an important role in supporting thisnext wave of biotechs.

“Our business advisors at Inno-Centre havebeen instrumental,” Rancourt says. “They sug-gested that we needed to do more research anddevelopment before we went into the invest-ment community. Just recently, we’ve gotten toa point with proof of concept that we should beable to seek our seed financing. We’re lookingfor private placement in the order of $500,000and believe we can leverage that with govern-ment funds to the point of having a leadinhibitor for the contraceptive. That initial

THE NEXT WAVE


fund will also take us further along in proof ofconcept for assisted fertility.

“Drug development is an expensive processand we won’t be able to do this singlehanded-ly. But we do see ourselves taking this intoclinical trials. Most drug companies want tosee concepts proven through phase one andtwo trials but the indications are that there isstill a lot of interest in the fertility market forthose concepts that are proven to be viable.”

Another Inno-Centre-supported biotech isNemaRx, a highly promising U.S. pharmaceuti-cal start-up that relocated to Calgary to partici-pate in Inno-Centre Alberta’s business develop-ment mentoring program. NemaRx (formerlyNemaGain) possesses intellectual propertywith an impressive pedigree, including a NobelPrize winner amongst its co-founders. DrRobert Horvitz is co-recipient of the 2002 NobelPrize for physiology or medicine. Co-founderand CEO Dr Andreas Wissmann relocated toCalgary along with the company. NemaRx’stechnology platform is based on screening tech-nology considered well suited to treating neu-rodegenerative diseases such as Parkinson’sdisease and Alzheimer’s disease. It is currentlyused to test painkiller therapies. According toInno-Centre Alberta’s president Susan Miller,the firm’s founders decided upon relocationbased on her organization’s mentoring program,as well as potential support from GenomePrairie, the Industrial Research AssistanceProgram and the Alberta Heritage Foundationfor Medical Research.

NemaRx has developed laser screen tech-nology that allows it to study the effect of painperception on tiny worms called C. elegans, nobigger than a fruit fly. Despite their primitivephysiology, the worms do have a nervous sys-

Another Inno-Centre -supported biotech is NemaRx, a highly promising U.S. pharmaceutical start-up thatrelocated to Calgary to participate in the businessdevelopment mentoring program.


tem and share similar genes to human beings,making them an ideal test subject. NemaRxexamines the worms using automated image-recognition software. After applying digitallaser impulses to the worms, the company thenprovides a prospective pain remedy and meas-ures the worm’s level of response.

The hope is that using C. elegans to test thetherapeutic compounds will increase thechances of finding appropriate pain remedies,while reducing both the cost of drug develop-ment and the time to market. The company’sefforts are being observed with keen interest bythe major pharmaceutical firms.

Another Alberta-based biotech that is hopingto develop a new animal model for drug testingis KMT Hepatech. Launched by a team ofUniversity of Alberta researchers whichincludes former dean of medicine Dr. LorneTyrrel, the company will commercialize theircreation of a mouse model that scientists canuse to test antiviral therapies against HepatitisC, a contagious viral disease that usually leadsto serious, permanent liver damage. The dis-ease afflicts about 175 million people aroundthe world.

Dr. David Mercer, the lead author of thepaper that revealed the creation, believes thatthe mouse will be of major assistance in thefight against the disease. “We now have aviable way of testing new drugs which mightultimately help lead to the development of acure,” he says.

Essentially, the researchers transplanthuman liver cells into a genetically modifiedmouse; the transplanted cells then begin torapidly divide and fill up much of the mouseliver. These “chimeric” mice can then beinfected with the Hepatitis C virus; previous-ly only humans and chimpanzees were sus-ceptible to this virus. “Not only does the new

THE NEXT WAVE

CardioMetabolics’ drug protocol is targeted to helpchildren under one year ofage or seniors who are inneed of open heart surgerybut are considered “at risk”.


mouse model give researchers theability to test new therapies,” saysco-principal investigator Dr. LorneTyrrel, “it also allows researchers tostudy questions hitherto impossibleto study, such as how the virusinfects healthy cells and how thevirus replicates.

“This advances opens the flood-gates on basic and applied research,”says Tyrrel, whose previous work onthe Hepatitis B virus led to the devel-opment of a revolutionary new drugproven to an effective treatment forHepatitis B.

An equally exciting advance wasannounced by CardioMetabolics inFebruary of 2004, when the company’sU.S. patent was issued for a new drugcomposition, combination and treat-ment method developed for high-riskyoung children and elderly adults fac-ing open-heart surgery. Another U of Aspin-off, CardioMetabolics’ X-11S isthe company’s leading drug candidatecurrently in progress for an Investi-gational New Drug submission to theU.S. FDA under a large multinational,multi-centre clinical trial, with “Accel-erated Clinical Development” status.

“Securing the patent is a keymilestone because it paves the wayfor moving this drug treatment fromthe lab towards marketplace,” saysCardioMetabolics president Eva MahBorsato. “This patent greatly enhancesthe market value of our current patentportfolio and gives our investors andpartners the intellectual property pro-tection needed to develop our leadingdrug candidate aimed at benefitingunderserved populations who haveacute heart disease.”

The drug protocol is targeted tohelp children under one year of ageand seniors 70 years or older who arein need of open heart surgery but areconsidered “at risk” due to their med-ical condition prior to surgery. Thedrug addresses recovery complica-tions that can occur when blood isintroduced back into the heart fol-lowing surgery.


BIOINFORMATICS - THE MAP TO HEALTH

Bioinformatics is defined as the use of computers in

solving information problems in the lifesciences;

mainly, it involves the creation of extensive electron-

ic databases on genomes, protein sequences, etc. It

may also involve techniques such as the three-

dimensional modeling of biomolecules and biologic-

systems. This division of the biotech sector is the

place where computer sciences and health sciences

meet and Alberta’s strengths in both those areas

have made this province a natural for a burgeoning

bioinformatics industry.

The senior company in this area is BioTools

Incorporated, a privately held company dedicated to

producing bioinformatics analysis software. Founded

in 1995 by four University of Alberta professors,

BioTools has established itself in the bioinformatics

industry by offering quality software products, and

software consulting and contractual services.

Chenomx was formed in late 2000 to complete

and market the magnetic resonance diagnostic

(NMR) technology pioneered by BioTools. In the mid-

1990s, two of BioTools’ founders, Drs. David Wishart

and Brian Sykes, considered using NMR spectroscopy

as a tool for determining health status by looking at

metabolites in urine.They began to develop software

to automatically interpret the spectra created by

NMR spectrometers.

The establishment of Chenomx as a separate

entity has allowed its development team to focus on

developing and commercializing its Eclipse soft-

ware, which helps scientists correlate metabolic

responses with pathology, toxicity, drug efficacy and

genetics. Chenomx’s success has attracted equity

investment from American science equipment sup-

plier Varian, Inc.

Edmonton-based Celonex operates a life sciences

division in addition to its pharmaceutical division.

While the pharmaceuticals division is currently work-

ing in the area of hypertension and its associated dis-

eases, such as chronic high blood pressure, heart

attack, stroke, kidney failure, glaucoma and diabetes,

the life sciences division specializes in the develop-

ment of new technologies for fast, ultra sensitive, and

high-throughput genomics and proteomics analysis.

Celonex has developed a unique new microarray plat-

form in CeramiChip™. This new platform can be used

for both DNA and protein microarray, and clearly sur-

passes glass-based platforms in many respects. Using

its unique microarray system, Celonex is the only

company worldwide that manufactures and commer-

cializes various DNA microarrays for functional

genomic studies of many important human viruses.

Project CyberCell is the name of an extensive

genetic research project involving U of A and U of C

researchers. The goal of Project Cybercell is to under-

stand cellular processes to such a level that they can

be computationally recreated – in effect, to develop

an accurate simulation of a living cell within the virtu-

al environment of a computer. It is a massive under-

taking that, if successful, will have important benefits

for medical science. Researchers will be able to fore-

cast cellular reactions and quickly evaluate antibiotics

and other drugs. The technology will lead to the cre-

ation of cheaper and newer drugs, and will help in the

search for cures to many diseases. The team has cho-

sen the uni-cellular Escherichia coli (E. coli) bacterium

as the model for its simulation. Spin-off company,

Cybercell Technologies Inc., was created to protect

the intellectual property created by Project Cybercell.

It is in the process of patenting a variety of data, algo-

rithms and code for Project Cybercell.

It is highly possible that the companies described

will turn to the U of C’s new centre of excellence – the

Visual Genomics Centre. Funded by the public and pri-

vate sector, including title donor Sun Microsystems,

the Centre will benefit students, industry collaborators

and scientists studying a broad range of diseases,

including cancer, lupus and Alzheimer’s. The most

unique feature of the Centre is its fully immersive dis-

play environment with four projection walls – the first

of its kind in the world.The CAVE, as it’s called, will pro-

vide scientists with a three- dimensional model of bio-

logical systems. Ultimately, Centre director Dr.

Christoph Sensen believes the CAVE’s virtual environ-

ment will reduce the need for lab animals. BZ

THE NEXT WAVE

n the medical side, the development of a pharma-

ceutical drug is a game of life and death – success

could benefit potential millions of people suffering

illness. On the business side, it’s a strategic game of patience and

vision for those who invest in the sector.

Alberta’s biotech leaders face their business challenges with a

resounding theme of creativity and faith in what they term as good

science – embracing the odds in a challenging industry because of

the potential for growth and high return on investment.

Raising the funds needed for initial research and develop-

ment, and the pre-clinical and clinical trials to follow, is a mas-

sive concern in the biotech industry. Alberta is fortunate to have

a variety of government funders (see sidebar) which are of great-

est support in early research and development stages. Savvy

biotech entrepreneurs build on that support to attract funding for

the late pre-clinical/early clinical stage, where government fund-

ing tapers off. Three such Alberta-based companies found differ-

ent answers to their financing needs.

Edmonton’s BioMS is currently planning for the next phase of an

advanced human clinical trial in the development of MPB8298, a

synthetic peptide technology for the treatment of multiple sclero-

sis. Kevin Geise, president and CEO, chose to issue a stock offer-

ing to fund the pivotal trials, raising $9.3 million in early 2004.


TheColour of

MoneyFINDING PATIENT, RISK-ORIENTED

CAPITAL IS KEY TO SUCCESS FOR

ALBERTA’S BIOTECHS

BY KENTON FRIESEN

O


In 1999, when BioMS first licensed the technol-ogy, the funding came together rather easily - pri-marily from Albertan investors. Geise says moneywas raised through the strength of the technology,conveniently developed part way into the Phase IIclinical trial stage by researchers at the Universityof Alberta over the previous 25 years. The nature ofthe product and its potential to help the many MSsufferers in Canada and around the world added toits investor appeal. Target annual sales of about $4billion US for the potential blockbuster drug (over$1 billion US in sales annually) keep shareholdersand investors interested. Most recently, BioMS haslicensed a technology from the University ofAlberta named HYC750 for mobilization of stemcells and neutrophils for the treatment of cancertherapy related side-effects.

BioMS began with a private round of financing

THE COLOUR OF MONEY

that raised $19 million. Subsequently the compa-ny went public and embarked on further financingthrough exercise of warrants and public offering.The company’s working capital is reported at $20million.

An Edmonton-based company that has grownhealthy without public funding or extensive use ofgovernment grants is NAEJA, one of the oldestbiotechs in Alberta. Founded in 1987 by RonaldMicetich as a U of A spinoff, the company remainedunder the name SynPhar as a joint venture partnerwith Japan’s Taiho Pharmaceutical until 1999 whenthe assets were rolled over into NAEJA and DrisCorpPharmaceutical was acquired.

Through the transitions, the firm has remained a100% family-owned affair specializing in early prod-uct development in the area of infectious disease.

INSTITUTIONS:

AVAC – AVAC is a not-for-profit, private organization that

invests in innovative ideas that add value to agricultural

commodities. The organization invests through coaching,

knowledge, contacts and financial resources.

AVAC provides mentoring and expertise for realization

of commercial success and focuses upon pre-commercial-

ization assistance. www.avacltd.com

Alberta Heritage Foundation for Medical Research –

Alberta Heritage Foundation for Medical Research

(AHFMR) currently provides funding for over 600

researchers and researchers in training at the province’s

three main universities. The foundation supports a com-

munity of researchers who generate knowledge that

improves the health and quality of life of Albertans and

people throughout the world. AHFMR’s commitment is to

fund basic, patient, and health research based on interna-

tional standards of excellence and carried out by new and

established investigators and researchers in training.

www.ahfmr.ab.ca

Ingenuity Fund – Alberta Ingenuity is the trade name of

the Alberta Heritage Foundation for Science and

Engineering Research, established by the Government of

Alberta in 2000, with an Act of Legislature that provided an

endowment of $500 million. Interest from the endowment

is used to support a balanced, long-term program of sci-

ence and engineering research based in Alberta.

Alberta Ingenuity operates at arm’s-length from gov-

ernment, is governed by a board of trustees, and headed

by a president/CEO. www.albertaingenuity.ca

Business Development Bank – The Business Development

Bank of Canada (BDC) provides small and medium-sized

businesses with flexible financing, affordable consulting

services and venture capital. BDC supports the needs of

entrepreneurs at every stage of growth. www.bdc.ca

FACILITATION PROGRAMS:

Deal Generator – As a Flagship Initiative of the Greater

Edmonton Competitiveness Strategy, angel investors,

entrepreneurs and professional service providers have

joined Economic Development Edmonton in developing

the Deal Generator program. They are committed to deliv-

ering a credible, high- quality process for generating early-

stage enterprise deals. Deal Generator is open for business

with participants from across Alberta.

Quite simply, Deal Generator exists to help make deals

happen. Entrepreneurs need to develop their business

ideas into investment opportunities that angel investors

want. To help innovators become business people, profes-

sional service providers have to be ready, willing and able

to work with them to develop first-rate business plans and

pitches. Last, but certainly not least, angel investors need

mechanisms to enable them to identify and screen invest-

ment opportunities. www.edmonton.com

Concept to Capital – Increase your chance of success in

securing capital investment with Calgary Technologies

Inc.’s Concept to Capital program. This intensive, 12-week

program is designed to help emerging technology com-

panies refine their winning business plan presentation

and secure early-stage financing from investors.

www.calgarytechnologies.com

Alberta California Venture Channel (ACVC) – Alberta

California Venture Channel is a concept aimed at partner-

ing the expertise and larger capital pools that exist in

California with entrepreneurs and investors from Alberta

that might be missing elements of their current deal (i.e.

need to raise more capital, create American markets, better

advisory boards). www.venturealberta.com/acvc


While much of the discovery and early develop-ment of drugs in Alberta is done in universitylabs, NAEJA has found a way to operate ratherindependently and in the complete absence ofventure capital. A contract research division wasestablished to provide financing for the ongoinginternal research. Another source of funding isthe out-licensing of various products the compa-ny has taken up to the clinical stage. Agreementsfor upfront payment and milestone paymentshelp the short-term cash flow, with the addedbenefit of being kept in the loop through to theapproval of the technology. NAEJA’s partneringwith companies that need a pipeline of productsand have existing clinical trial and marketingteams is a win-win.

Long-term financing will come from the royal-ties received from approved out-licensed drugs.

In 2002, Isotechnika became the hottest name inCanada’s biotech sector, when it secured a deal withRoche that was touted as the largest Canadian dealever conducted between a pharmaceutical companyand a biotech. While the expectations are enormous,chairman and CEO Robert Foster remains unper-turbed. He says his immunosuppressive organtransplant drugs ISA247 is so far superior to what iscurrently available it will, if approved, render thecurrent treatment ineffective or even unethical.

Assuming effective commercialization, the trans-plantation market should mean sales of significant-ly more than $1 billion US annually, says Foster.

The process of raising funds for research wasinitially slow and Foster didn’t mentally registerthe magnitude of it until his company had guaran-teed loans equalling $800,000. That was 1993. Atthe end of 2001, Isotechnika had cash reserves of$53.3 million. And April of 2002 saw the signingof the co-development deal with industry giant,Roche. In 2004, the Roche agreement was amend-ed to give Isotechnika back the rights to all non-transplant applications, while Roche would main-tain the commercialization rights for ISA247 fortransplantation. Isotechnika has projected that thenew arrangement could mean as much as $245million in payments from Roche, as compared tothe previous figure of $215 million, while stillallowing Isotechnika to explore market opportuni-ties outside of transplantation.

The financing came together for the company,but Foster says it is a serious challenge for allbiotech companies in the province. “There’s not alot of access to venture capital and there’s noaccess to labour-sponsored venture funds either.

“But if you believe in what you’re doing, youjust push forward,” says Foster. BZ


n the ever-advancing field of biotechnolo-gy, licensing has assumed an increasinglyimportant role as small biotech ventures,large pharmaceutical firms, universities

and hospitals alike seek to develop their tech-nologies. The fact that biotech products are sotechnically complicated, and take so long andso much money to properly develop and com-mercialize, requires some coordination or con-flict resolution between industry participants.Licensing, through its inherent flexibility to fixuse rights and obligations as mutually desired,allows the participants to ensure their respec-tive interests are met.

Whatever their objectives, parties whoengage in biotech licensing have to be aware ofthe basic drafting issues that surround this prac-tice, to fully obtain its advantages. This is not asstraightforward a task as it sounds. In the field ofbiotechnology, licensing has come to encompassnot only conventional royalty arrangements, butalso varying types of collaborative arrange-ments. The challenge, then, for industry partici-pants is to avoid being overwhelmed by themultitudinous drafting nuances that may affecta licensing relationship.Grant of LicenceIn any licence, the sections detailing the grantof rights form the crux of the agreement, as thatis where questions pertaining to what is beingtransferred and the extent of the transfer areanswered. In the case of biotechnology, clearlydefining the subject-matter of the licence,exclusivity rights, territory covered, andlicence term can be particularly important. Subject MatterA licence is fundamentally a grant of rights,and the grant clause is of key importance inestablishing the boundaries of the licence. Forlicensors in general, the aim will be to use suf-ficiently narrow definitions to avoid reducingthe value of key assets. Conversely for thelicencee, the aim will be to obtain a wide defi-nition to maximize flexibility.ExclusivityIn addition to the subject matter that lies at theheart of the licence grant, decisions also haveto be made regarding whether the licence grantwill be exclusive or non-exclusive, and ifexclusive, the extent of the exclusivity. Certainautomatic rights and obligations sometimesassociated with exclusive licences warrantconsideration. One current debate concerns theAmerican law principle that exclusivelicencees have an implicit duty to use “best

efforts” to exploit the exclusive licence. SomeU.S. courts have chosen not to apply this prin-ciple where minimum guarantees or advanceroyalty payments are made.1 Other considera-tions arise in respect of non-exclusive licences,such as the inclusion or non-inclusion of amost-favoured-licencee provision, which guar-antees a licencee terms that are at least as goodas those offered to other licencees. Licensorswill want to avoid inclusion if possible, where-as licencees want the opposite.2

A licence requiring some exclusivity doesnot mandate that everything be granted exclu-sively. Depending on how fields of use and ter-ritory clauses are drafted, different restrictionssurrounding exclusivity can be used to cus-tomize a licencee’s rights within different con-texts. For example, one may grant an exclusivelicence to develop a drug for a specific indica-tion within North America, and a non-exclu-sive licence for another indication elsewhere.3

TerritoryThe extent to which a licencee may use licensedsubject matter is also circumscribed by geogra-phy. The territory covered by the licence shouldbe precisely defined. Competition law may limitthe licensor’s ability to control the licencee’scommercial activities outside such designatedterritory. A rule of law known as the “doctrine ofexhaustion”, whereby exclusive licencees arebarred from preventing the importation of “gray”or “parallel” products from outside their exclu-sive territories, can be particularly troublesome.4

Finally, the licensor should realize that wherepatent protection is limited to only a certainnumber of countries, know-how may still suffi-ciently ground the subject matter of a licence.5

TermLicence rights to subject matter should also belimited temporally. While the exact duration ofa licence is a detail which the parties mustdecide based on their circumstances, licenceesand licensors may have an interest in includingclauses which enable the licence’s extension,such as rights of renewal or even automatic roll-overs, so as protect against serious disruption oftheir respective business plans.

The intent of the above discussion has beento set out, at a basic level, some of the keyissues that will be encountered when negotiat-ing and drafting biotech licence agreements.Obviously, the more time and effort that is putinto clearly defining the rights and obligationsof the parties, the more efficient and mutuallybeneficial their arrangement will be. BZ

THE FOLLOWING IS

AN EXCERPT FROM A

COMPREHENSIVE

ARTICLE ENTITLED

“BASIC DRUG AND

BIOTECH LICENSING

ISSUES”

PREPARED BY

GORDON SUSTRIK AND

DAVID PARKATTI OF

BENNETT JONES LLP.

LICENSED TO SELL

I

1. H.J. Schwartz and J.B. Lattimore,“So,

You Received a Big Check, But it Could

Have Been a Really Big Check”, les

Nouvelles, September 2002, page 95 at 95

2. M.R. McGurk,“Problems of Careless

Drafting”, les Nouvelles, September 1997,

Page 148 at 149

3. S. Middlemiss & R. Sadlleir,

“Collaborations and Licensing - Key

Legal Issues”, Bio-Science Law Review,

August 30, 2001

4. J.R.C. Brown,“Parallel Imports,

Exhaustion of Rights in EI”, les Nouvelles,

June 1997, Page 49 at 49

5. Middlemiss, supra


ALBERTA’S BIOTECH LEADERSAmong the many dynamic business-

es functioning in Alberta’s biotech-

nology community, several have

achieved significant recognition for

the milestones which they have

marked. These seven companies are

at the forefront of discovery in the

province – their leadership demon-

strates the breadth of potentiality

for the sector.

An Arsenal of TherapiesAltachem Pharma Ltd is working on thenext generation cancer treatment that willbe more patient friendly.

Headquartered in Edmonton, Albertawith wholly owned subsidiaries inShanghai, China, Altachem Pharma Ltd is apublicly traded (AAF TSXV) pharmaceuti-cal company. Altachem’s technologies areexpected in the future to join the arsenal inthe fight against HIV/AIDS, cancer andskin diseases.

Altachem’s photodynamic laser thera-py will be used to battle prostate cancer ina much less invasive way than traditionalmethods. The injected drug attaches itselfto the cancer cell and is then activated bya form of sonolight. Altachem’s sonolighttherapy, which will also be used to treatpsoriasis, acne, and other skin disorders,is now in late pre-clinical trials.

ACP-HIP, now in clinical trials, hasbeen found to inhibit the proliferation ofAIDS-causing HIV cells, and to inhibit thespread of Kaposi’s sarcoma, an AIDS-relat-ed cancer.

It is currently believed that one of theorigins of cancer is due to lapses of thebody’s immune system to detect cancercells as invaders of the host. Altachembelieves its CDK, an immunomodulator,will not only reduce tumor growth butwill limit the spread of the cancer to otherorgans. The product is in early stage pre-clinical work.

Altachem’s manufacturing plant inShanghia produces pellet core particlesused in slow controlled release dosageforms. Altachem has added another pro-duction line to the Shanghai facility to

manufacture its Bionex disinfectant andhas the capacity to add additional lines tomeet market demands for its products.For more information, go to

www.altachempharma.com

Refining Oats for HealthSpecializing in the development and com-mercialization of natural products for themedical and animal health industries,Ceapro has carved out a unique and prof-itable niche for itself. The development oftechnology that allows for the more effi-cient extraction of active ingredients hasestablished the company as both perform-ance driven and quality motivated.

In 1999, Dr. Mark Redmond and histeam of highly experienced and dedicatedprofessionals successfully extracted arange of medically active compounds fromoats. These compounds have been used bythe company to commercialize a range ofcosmetic and personal care products aswell as pharmaceutical and veterinaryapplications.

Since then, Ceapro has demonstratedits ability to significantly increase its totalrevenues, net income and gross margin. In2004, the company was named one ofAlberta’s fastest growing companies byAlberta Venture magazine. Trading on theTSX (CZO), Ceapro has the market cap toensure it maximizes its product opportuni-ties. With the development of productssuch as AccuScreen, a diabetes test kit forthe early detection of type II diabetes andimpaired glucose tolerance, the companyis confident it can sustain its growth andfinancial performance.

Dr. Redmond, Ceapro’s president andCEO, sees the potential for continued suc-cess. “We believe that we can sustain ourgrowth with products like AccuScreen andthe development of other new technolo-gies and applications being major contrib-utors to that growth.”For more information, go to www.ceapro.com

Naturally BetterUniversity of Alberta spin-off CV Techno-logies started out in Edmonton in 1992 asa pharmaceutical development company.By 1995, CV Technologies had shifted itsfocus to developing its own technology

platform and natural therapeutic prod-ucts. Current president and CEO Dr.Jacqueline Shan and her colleagues devel-oped ChemBioPrint, a patented technolo-gy for the discovery development andstandardization of natural therapeuticproducts. It uses a combination of chemi-cal and pharmacological “fingerprinting”that ensures each batch of product deliv-ers verifiable and provable health benefits,and is consistent with previous batches.ChemBioPrint is the process that allowedthe company to produce the cold and flu-fighting compound COLD-fX in 1996 and,eventually, five other natural health prod-ucts that are also on the market. CVTechnologies’ most recent product releaseis REMEMBER-fX, a natural health prod-uct that enhances memory function andrestores mental alertness.

Dr. Shan is bullish on CV’s future. “Myvision is to become the number one ornumber two natural health business in theworld,” she says. “Hopefully, some daywe’ll become a billion-dollar company.”

The publicly traded company (CVQ-TSXV) is making inroads towards that goal.An aggressive commercialization plan andscientifically proven products are bearingfruit. Sales in the first quarter of fiscal year2004 were $1.6 million, up 349% from thesame quarter of the year before, and almostequal to sales for all of fiscal 2003. CVTechnologies showed a profit of $265,679,making it the first profitable quarter incompany history.For more information, go to

www.cvtechnologies.com

A Passion for ResearchGlobal International Quality MedicalResearch Inc. (Global IQ™) is a full serviceclinical research organization. It aims toprovide the highest quality, most rapid andcost effective process for the completion ofclinical studies.

Global IQ™’s vision is to take clientsfrom the start of Phase I research studiesto the completion of Phase III studies inonly 1,000 days – without any reductionin quality of data or results. The companyis highly innovative in streamlining trialoperations; for example, it has integratedelectronic management into traditional


trial process. A client’s profitability can begreatly increased by a longer drug patentperiod, as a result of the speed of the trial.

Unlike larger research firms withdozens of offices across the globe, GlobalIQ™ provides a more personal approach toits sponsors. Clients regularly deal withsenior management during all phases ofresearch – it speaks of a passion for serviceand quality that is reflected throughout thecompany.

“We think we can offer a high-level ofservice with global capabilities, in a moreapproachable, one-to-one atmosphere. It’san environment that benefits everyoneinvolved in the studies we do – ourclients, investigators and patients,” saysPaul Braconnier, president and CEO ofGlobal IQ™.For more information, go to www.globaliq.com.

Overcoming RejectionFounded in 1993 by Dr. Robert Foster,Isotechnika Inc. is an international bio-pharmaceutical company headquartered inEdmonton and trading on the S&P/TSXComposite under the symbol ISA. Thecompany focuses on the discovery anddevelopment of novel immunosuppressivetherapeutics that are safer than currentlyavailable treatments. A team of world-classscientists, led by Dr. Randall Yatscoff, arebuilding an impressive stable of immuno-suppressive drug candidates for use in theprevention of organ rejection in transplan-tation and in the treatment of auto-immunediseases.

Dr. Robert Foster, Isotechnika’s chair-man & CEO, credits the company’s keenfocus in the field of immunosuppressionand strong leadership abilities to the con-tinued success and fast growth of the com-pany. “Our in-house expertise has enabledthe company to advance its corporatestrategy and build a strong immunosup-pressive drug pipeline,” stated Dr. Foster.“Isotechnika has positioned itself as aninternationally recognized biopharmaceu-tical company and we look forward to thecompany’s future successes.”

That future success will come from athree-prong approach. Isotechnika’s cur-rent goals include a focus on the clinicaldevelopment of its three drug candidates:

ISA247, TAFA-93 and TKB662. Secondly,the company intends to continue to uti-lize its in-house expertise in immunology,pharmaceuticals and medicinal chemistryto develop and enhance its drug pipeline.

Finally, Isotechnika plans to establishand maintain a strong intellectual proper-ty portfolio. Given the importance ofintellectual property in the drug industry,the company recognizes it must continueto investigate patentable and commercial-ly viable products in the immunomodu-lating field.For more information, go to

www.isotechnika.com.

Cancer FighterFounded in 1998, Oncolytics Biotech Inc.is focused on developing its proprietaryproduct, REOLYSIN®, as a potential therapyfor up to two-thirds of all human cancers.

Based on discoveries made at theUniversity of Calgary, Oncolytics isexploring the use of the RespiratoryEnteric Orphan virus, or reovirus, in can-cer treatment. Researchers discovered thevirus could infect and selectively kill cellswith a genetic mutation along the Raspathway, a signalling pathway in the cell.Normal cells without this mutation pre-vent the reovirus from multiplying. In can-cer cells with this mutation, the reovirusmultiplies, eventually killing the cell andspreading to surrounding cells – continu-ing the process until there are no longerany cancer cells to infect.

Oncolytics has successfully completedtwo human clinical studies in Canada, hasreceived approval for a systemic (intra-venous) administration trial in the UnitedKingdom and has a research collaborationwith the National Cancer Institute in theU.S. to conduct multiple human clinicaltrials with REOLYSIN®.

“With its potential for use in up to two-thirds of all human cancers, Oncolytics isoptimistic about the potential for REOLY-SIN® as a broad-based cancer therapeutic,”says Dr. Brad Thompson, OncolyticsPresident and CEO. For more information, go to

www.oncolyticsbiotech.com.

Turning Plants into ProteinsFounded in 1994 as a spinout from theUniversity of Calgary, SemBioSys wasbuilt on a revolutionary means of pro-ducing and purifying proteins from plantseeds (biologics), a technology developedby Dr. Maurice Moloney. Proteins grownby SemBioSys have pharmaceuticalapplications as treatments for everythingfrom diabetes to hair loss. The technolo-gy itself has wide applications thatinclude not only ingredients for medi-cine but cosmetics, food and livestockfeed additives.

Under the leadership of Andrew Baum,president and CEO, SemBioSys is at theforefront of developing technologies thatadd value to Alberta’s agricultural com-modities, and as such, has attracted thesupport and praise of such organizationsas AVAC. In addition, SemBioSys’ effi-cient and quality-focused process enablesthe commercialization of life-saving drugsthat otherwise would not be available.

Based on its proprietary oleosin/oil-body-based Stratosome™ Biologics System,SemBioSys is developing a strong pipelineof biologics and other proteins throughmanufacturing partnerships and co-devel-opment agreements that, combined withthe expected short-term revenue generatedby the company’s personal care division,position SemBioSys for immediate andsustained growth. SemBioSys’ industrypartners include Syngenta, MetabolicPharmaceuticals and a multinational finechemical manufacturer. The privately-heldcompany’s major shareholders include BayCity Capital, Dow AgroSciences, RoyalBank Ventures and Venture West CapitalLtd., among others.For more information, go to

www.sembiosys.com. BZ


Corporate Members Acumen Capital Finance PartnersAgriculture Financial Services CorporationAgriGenomics Inc.AIMS Fine Chemicals Inc.Alberta Agricultural Research InstituteAlberta Agriculture, Food and Rural

Development*Alberta Economic DevelopmentAlberta Heritage Foundation for Medical ResearchAlberta Ingenuity FundAlberta Ingenuity Centre for Machine LearningAlberta Innovation and ScienceAlberta Network for Proteomics InnovationAlberta Pacific Forest Industries Inc.*Alberta Research CouncilAlberta Science and Research AuthorityAlberta Synchrotron InstituteATB FinancialAltachem Pharma Ltd.AltaRex Corp.Astra Zeneca Canada Inc.AVAC Ltd.Aventis Pasteur LimitedBanner Pharmacaps (Canada) Ltd.Bayer CropScience*BDC Venture CapitalBennett JonesBIOTECanadaBiomira Inc.BioMS Medical Corp.BMO Nesbitt BurnsBOWNECalgary Technologies Inc.Camire ConsultingCanadian Bacterial Diseases Network Canadian Bio-Systems Inc.Ceapro Inc.Celonex Inc.Cevena BioProducts Inc.Chenomx Inc.CV Technologies Inc.Cybercell Technologies Inc.Cytovax Biotechnologies Inc.Deloitte & Touche Desai & Desai Dow AgroSciences Canada Inc.*Earle & AssociatesEdmonton Capital Region Innovation CentreEpsilon Chemicals Ltd.Equitech CorporationFisher Scientific Limited Foragen Technologies Management Inc.Fraser Milner CasgrainFred Stewart & Associates Inc.Genome PrairieGlenLoy Biotech Inc.Global International Quality Medical Research Inc.Hannibal Ventures Inc.Harcourt & AssociatesIBM Canada Ltd.Inno-centre Alberta

Isotechnika Inc.JAR Pharmaceuticals Ltd.Kinetana Group Inc.KMT Hepatech Inc.KS Avicenna Inc.Lombard Life Sciences Inc.MBEC BioProducts Inc.McKay-Carey and CompanyMerck Frosst Canada Ltd.Metabolic ModulatorsNAEJA Pharmaceuticals Inc.NemaRx Pharmaceuticals Inc.New Era Nutrition Inc.Ogilvie and CompanyOlds College Centre for Innovation *Oncolytics Biotech Inc.Pacific Horizon VenturesParlee McLawsPBR Laboratories PENCE Inc.-Network of Centres of ExcellencePfizer Canada Ltd.Pharmahorizons Inc.PharmEng Technology Inc.PriceWaterhouseCoopersPromotive Communications Inc.Pulmonox Medical Inc.QSV Biologics Inc.Rational BioDevelopment Inc.Redengine Inc.Research Services Office, University of AlbertaResearch Tax ServicesRX&D (Canada’s Research Based Pharmaceutical

Companies)SciiMed Laboratories Inc.SemBioSys Genetics Inc. *Stantec Consulting Inc.TD SecuritiesTheraCarbToronto Stock ExchangeTrimark Engineering Ltd.TS BiotechUK Trade & InvestmentUnited Bioinformatics Inc.University of Alberta – Faculty of Medicine &DentistryUniversity of Alberta – Dept of Agriculture, Food

and Nutritional Science *University of Calgary – Faculty of Medicine

University of Lethbridge *University Technologies International Inc.Ventures WestViRexx Research Corp.VWR InternationalW.A. Cochrane & AssociatesWestern Economic DiversificationWestlink Innovation Network Ltd.

Individual MembersArmstrong, Glen (Dr.)Bernard, MarkFacklam, Thomas (Dr.)Jabs, Linda A

BIOALBERTA MEMBERSMathison, Ron (Dr.)Meadows, Scott (Dr.)Morrier, EricPerry, Richard (Dr.)Sheridan, Beverly A.Sustrik, GordonSwanson, EricTroyer, Taryn

Board of DirectorsAndrew Baum (Chair)President and CEOSemBioSys Genetics Inc.

Robert AubreyVice President, Marketing & BusinessDevelopmentBiomira Inc.

Robert FosterChairman, CEO and DirectorIsotechnika Inc.

David CoxPresidentChancellor Life Sciences Inc.

Pete DesaiPresidentDesai and Desai Inc.

Ron DyckExecutive Director of ResearchAlberta Innovation and Sciences

Irwin GriffithVice President, Drug DevelopmentViRexx Research Inc.

Bin HuangPresident & CEOCytovax Biotechnologies Inc.

Ed KnashVice-President, Agri Industry Marketing& Product DevelopmentATB Financial

Ram MehtaPresident & CEOPBR Laboratories Inc.

Tony NoujaimPresident & CEOViRexx Research Inc.

Alf SailerVice President Investment BankingAcumen Capital Finance Partners Ltd.

Rick SmithPresident & CEODow AgroSciences Canada Inc.

Fred StewartFred Stewart and Associates Inc.

Gordon SustrikBennett Jones LLP

the growth of bio-agriculture • funding big ideas • modelling … · 2014-05-08 ·...

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