Bio MS

BioMS sprouts emerging technologies arm: new spirit of collaboration between the Edmonton biopharmaceutical company and research bodies across industry sectors promises Canada a bold generation of innovations

By Bennett Thomas. Silicon Valley North, GTA Edition 8.2 (Nov 2002

BioMS Medical Corp. has licensed from the University of Alberta a new platform technology for treating a variety of diseases and created an emerging technologies division to boot.

BioMS CEO Kevin Giese says acquiring the new stem-cell technology was the impetus for creating the new division, which aims to capitalize on future opportunities in various research fields.

"We looked at our management team and said, "'We have a great deal of strength here,'" says Giese. "We should be thinking more globally in the sense of beyond this one technology we're looking at picking up.'"

The emerging technologies division is to be headed by Richard Brown, who has had a high-profile career in the pharmaceutical sector. "Actually, Richard brings a lot to the table because of his experience in big pharma, and he's really well experienced in project development," says Giese.

Brown anticipates many opportunities developing technologies radiating from the Canadian research community. "I've always been the recipient of these products downstream, so getting a chance to work with them at a very early stage and to work with the scientists is exciting."

BioMS, founded in 1998, is working on two products: the new platform technology and a multiple sclerosis treatment called MBP 8298, a synthetic peptide. It was on the strength of this MS treatment that the company was founded. Its new platform technology works by helping the body mobilize stem cells, something that Brown says could have many potential uses.

"Anything that will cause the body to create new stem cells, new progenitor cells, and make those available to the body for usage is of tremendous interest," says Brown.

"There's a broad range of applications for the mobilization of stem cells, so I think it's a matter of completing the trials and seeing which of those opportunities presents the best possibility for commercialization."

Even though both of the technologies BioMS is working on were licensed exclusively from the U of A, Giese doesn't rule out acquiring technologies from other research bodies. The U of A owns 38 per cent of BioMS and has a seat on its board of directors.

BioMS has a good business relationship with the U of A, Brown says. "The U of A is an extremely good partner to have. The University of Alberta ranks among the top 10 in having products come from the bench into commercialization fields." He says that this is commonplace in the U.S. but not in Canada.

Even though BioMS's work with the U of A has been a good collaboration, the university still maintains an appropriate distance from the company, adds Brown. "The challenge is always to find something that's mutually satisfactory and beneficial."

Giese says that even though the biotechnology industry has taken a big financial hit in recent years, BioMS is well funded with $23 million in the bank raised by individual investors. "In my situation right now, I don't find it difficult because I'm well funded. For other people, I can just guess and say it's probably very though."

This situation has a big effect on how the company does business, especially the claims it makes about its products, Brown explains. He adds that because there has been a history of wildly inflated expectations and disappointed investors in the industry, biotechnology investors now err greatly on the side of caution. "One of the core philosophies of the company is to be very, very cautious about what it says about its products and what promises it does or does not make."

Since BioMS is a development firm and not a research company, it doesn't have to limit itself to any particular area when looking for technologies to develop, Giese says.

"We're fairly opportunistic. Because we are strategically a development company, we can take a little broader perspective."

But he stresses that BioMS's immediate plans are to focus on the two technologies it is developing, and not actively search for new technologies or plan collaborations with other companies.

MBP 8298 is undergoing final trials that should be completed by 2007, while the new platform technology is involved in preliminary trials. Which all bodes well for a country that often questions its status as an international innovator.

Copyright Silvan Communications Nov 2002