Biotechnology Focus April 2010

INSIGHTS FOR THE LIFE SCIENCE INDUSTRY

APRIL 2010 VOLUME 13, NUMBER 4

EXECUTIVE

EDITION

ANTHONY J. GIOVINAZZO PRESIDENT AND CHIEF EXECUTIVE OFFICER CANNASAT THERAPEUTICS INC.

THE RIGHT FIT: CANNASAT THERAPEUTICS FINDS ITS NEW FRONTMAN

Publication Mail Registration Number: 40052410

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contents

22 A natural resource that can save lives

FEATURES

APRIL 2010 – VOLUME 13 – NUMBER 4

12 DEFENSIN MIMETICS

Using nature to keep us safe from pathogenic bacteria (By Richard W. Scott)

16 The Right Fit

16 cover story

Cannasat Therapeutics finds a new direction with Anthony Giovinazzo at the helm

Anthony Giovinazzo discusses his plans to rebrand Cannasat, the company’s recent deals to in-license and partner, and where he sees the company going foward.

(By Shawn Lawrence)

20 Angels at Work

Bridging the Funding Gap (By Robin Sundstrom)

DEPARTMENTS 6

Research news

9

Business corner

26 product news 28 Calendar of events 30 The Last Word

6

IN EVERY ISSUE

22 ACROSS CANADA

A Natural resource that can save lives: Canadian bioactive paper network chases a new commercial centre (By Mike Pettapiece)

R&D News

Tentative new date for the FDA Advisory Committee to review Tesamorelin drug application www.bioscienceworld.ca

APRIL 2010 BIOTECHNOLOGY FOCUS 3

PUBLISHER’S NoTE

PUBLISHER/ EDITOR-IN-CHIEF STAFF WRITER INTERN CONTRIBUTING WRITERS

Terri Pavelic Shawn Lawrence Tim Bryant Chris Rogers Richard W. Scott Robin Sundstrom Mike Pettapiece

Say Goodbye to Section 116

W

hen the federal government released the budget for 2010, the Biotech community waited, fingers crossed, for some good news. Thankfully, many of the industry’s gripes have been answered and now that reactions are starting to roll in, it seems this year’s budget will go down as a modest success.

The biggest news for biotech is the removal of section 116. This is great news as many felt section 116 was a major impediment to foreign investors. Specifically, the 2010 budget proposes, “…eliminating the need for tax reporting under section 116 of the ITA for many investments.”

Targets for funding in this year’s budget were fairly broad. Under the guise of creating economic growth and jobs through innovation, the budget injects some much-needed funding to organizations that regularly make news in Biotechnology focus.

Genome Canada will be provided with an additional $75 million for genomics research.

The money will go to launching a new targeted research competition focused on forestry and the environment and sustain funding for the regional genomics innovation centres.

The three federal research granting councils were also targeted for funding this year. Of great importance to our readers should be the $16 million per year to the CIHR to support outstanding health-related research and development and the $13 million per year to NSERC. The money for NSERC includes $8 million per year for advanced research and $5 million per year for NSERC’s Strategy for Partnerships and Innovation.

Contributors to Biotechnology focus often claim that Canada may do an adequate job of supporting research but it lags behind other countries when it comes to commercialization. The new budget claims to address this fault by increasing support for the College and Community Innovation Program (CCIP), and but more importantly for biotech, $135 million over the next two years for the National Research Council’s regional innovation clusters program (RICs). These innovation networks attempt to promote cooperation between government, academia and business, “…helping regions and communities build a competitive advantage through research and innovation in targeted areas.”

Further hyping the role commercialization should play in the future, the budget also allocates $40 million over two years for a two-year pilot Small and Medium-sized Enterprise Innovation Commercialization Program. The money will support up to 20 demonstration projects.

There will also be an additional $8 million over two years for the International Science and Technology Partnerships Program (ISTPP) which promotes collaborative research and development with international partners.

Reaction to the budget so far has been fairly optimistic. The most applauded change has been the removal of section 116, though it will be compelling to see how this change really affects the way investors target Canadian research and commercialization opportunities.

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EDITORIAL ADVISORY BOARD najla guthrie, KGK Synergize; pierre Bourassa, IRAP, Montreal; Brad guthrie, Alberta Advanced Education and Technology; carol Reynolds, Genome Prairie; ulli krull, UTM; John kelly, Erie Innovation and Commercialization; Peter Pekos, Dalton Pharma Services; Brad thompson, Oncolytics; Darrell ethell, CanReg; John hylton, John H. Hylton & Associates; Robert foldes, Mentis Partners; colette Rivet, BioTalent; grant tipler, RBC; Randal R.goodfellow, P.Ag., Senior Vice President, Corporate Relations, Ensyn; Bob h. sotiriadis, LLB,a partner with Leger Robic Richard; dale patterson, The Bourton Group; Darcy Pawlik, Ag-West Bio Inc; Barry gee, LifeSciences British Columbia Biotechnology Focus is published 12 times per year by Promotive Communications Inc. 24-4 Vata Court, Aurora, Ontario L4G 4B6 Phone 905-727-3875 Fax 905-727-4428 www.bioscienceworld.ca E-mail: biotechnology_focus@promotive.net Subscription rate in Canada $35/year; USA $60/year; other countries $100/year. All rights reserved. No part of this publication may be reproduced without written consent. Publications Mail Registration Number: 40052410 Return undeliverable Canadian addresses to: circulation dept – 24-4 Vata Court, Aurora, Ontario L4G 4B6 PAP Registration No. 10952 National Library of Canada ISSN 1486-3138 \ All opinions expressed herein are those of the contributors and do not necessarily reflect the views of the publisher or any person or organization associated with the magazine.

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APRIL 2010

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R & D NEWS

Photo: Peter Brenders

Budget announcement sees removal of tax barriers and opens door to flow of foreign capital for biotech Removing administrative barriers under the CanadaUS Tax Treaty for investors such as non-resident venture capital funds are a welcome change in this year’s budget announcement, and they should ease the way for investment in Canadian biotechnology firms according to trade industry association BIOTECanada.

“We are pleased to see modifications to section 116, which were recommended by BIOTECanada and many others, implemented,” said Peter Brenders, president and CEO of BIOTECanada. “This change will create a great incentive to invest in our innovative Canadian firms, and that’s

what we need to keep our emerging companies growing and continuing to bring new ideas from the lab to the marketplace.”

The announced changes to section 116 will remove double tax filing requirements and administrative delays that have to date turned many foreign venture capital and institutional investors away from investing in Canadian biotechnology firms.

BIOTECanada had called on the government to amend section 248 of the Income Tax Act to exclude shares of private corporations from taxation and create an incentive for foreign investors to enter Canada. The

budget also renewed funding for early stage research through the granting councils, including CIHR and Genome Canada, an important boost for the innovation economy.

In addition, BIOTECanada lauded the announced $600 million over 3 years to help develop the innovation sector and attract talented people to strengthen world-leading research and development capabilities. BIOTECanada also welcomed the government’s announcement to start a comprehensive review of all R&D federal support to improve the federal contribution to innovation and economic opportunities for business.

“In a time of rapidly growing global competition, Canada needs to find new ways to increase our competitiveness. The government’s focus on innovation is a strong signal to our international competition,” stated Brenders.

Dale Patterson joins Genome Canada Genome Canada announces the appointment of Dale Patterson as vicepresident, External Relations.

Drawing from a broad range of private sector and public policy experience, Dale’s primary responsibilities for Genome Canada include government and stakeholder relations, communications and liaison with the regional Genome Centres.

Dale is the former executive vicepresident of the Canadian Medical Discoveries Fund, and founding Chair of the Biotechnology Council of Ontario, has been a member of Genome Canada’s Science and Industry Advisory Committee, and is the president of BioFinance Canada. He has served on several Boards, including BIOTECanada, the Canadian Venture Capital Association, the Centre for the Advancement of Health Innovations, as well as The Biotechnology Initiative. He is also a member of the Biotechnology Focus editorial advisory board.

Genome Canada is a non-profit corporation that acts as the primary funding and information resource relating to genomic and proteomics in Canada. Its main objective is to position Canada as a world leader in genomics and proteomics research.

Since its inception in 2000, six Genome Centres have been established across the country: Atlantic, Quebec, Ontario, Prairie, Alberta and British Columbia.

6 BIOTECHNOLOGY FOCUS APRIL 2010

Tentative new date for the FDA Advisory Committee to review Tesamorelin drug application Theratechnologies announces that the U.S. Food and Drug Administration (FDA) has set a tentative new date of May 27, 2010 for the Endocrinologic and Metabolic Drugs Advisory Committee meeting to review Theratechnologies’ new drug application for tesamorelin.

Theratechnologies had submitted an NDA to the FDA on May 29, 2009, for tesamorelin, an analogue of the human growth hormone releasing factor proposed for the treatment of excess abdominal fat in HIV-infected patients with lipodystrophy. The FDA filed the NDA on August 12, 2009, which initiated a review of the application. The Advisory Committee meeting was originally scheduled for

February 24, 2010, but was postponed due to administrative delays at the FDA. As a result, the FDA has indicated that the target date to complete its review of the tesamorelin NDA, will be extended to July 27, 2010.

HIV-associated lipodystrophy, which is characterized by body composition changes, dyslipidemia and glucose intolerance, is affected by several factors. These often include a patient’s antiretroviral drug regimen and the HIV virus itself. The changes in body composition include excess abdominal fat accumulation. There is currently no approved treatment available for the excess abdominal fat related to HIV-associated lipodystrophy.

R & D NEWS Trent professor awarded Ontario Research Chair in Green Chemistry and Engineering Trent University’s Dr. Suresh Narine, an internationally renowned expert in the groundbreaking field of biomaterials, has been awarded one of two $1.25 million Ontario Research Chairs in Green Chemistry and Engineering by the Ontario Research Chairs Selection Panel.

The award, recently confirmed by John Gerretsen, Ontario’s environment minister, celebrates the scientific expertise emerging at Trent University with the recent launch of both the Trent Biomateri-

als Research Program and the Centre of Knowledge in the Environment. As Ontario Research Chair, Narine will receive funding of $250,000 a year for five years.

“This prestigious provincial award adds to the momentum that is building around a new field of research that holds great promise in addressing some of society’s greatest environmental challenges. The impacts of this research will be felt locally and internationally,” said Dr. James Parker, vice president of research at Trent University.

Juergen Engel

Æterna Zentaris reports positive opinion for orphan medicinal product designation for Perifosine

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Æterna Zentaris Inc. announces it has received a positive opinion for orphan medicinal product designation for its compound perifosine from the Committee for Orphan Medicinal Products (COMP) of the European Medicines Agency.

Keryx Biopharmaceuticals, Inc., Æterna Zentaris’ partner and licensee for perifosine in the North American market, already announced in September 2009 that it had

received Orphan Drug Designation for perifosine for the treatment of multiple myeloma from the U.S. Food and Drug Administration (FDA).

Juergen Engel, PhD, president and CEO of Æterna Zentaris stated, “We are very pleased with the positive opinion which is summarized by the COMP as follows: ‘The preclinical data and the preliminary clinical data obtained with perifosine justifies the claim on a clinically relevant advantage based in particular on the response obtained in relapsed and refractory multiple myeloma patients. Furthermore, perifosine is intended for oral administration, compared to the currently available parenteral treatments. This supports the assumption for a major contribution to patient care with regards to convenience and avoidance of a more aggressive administration route.”

Diagnocure’s PCA3 prostate cancer marker can help guide repeat prostate biopsy decisions DiagnoCure, Inc., a Québec-based life sciences company commercializing cancer diagnostic tests and delivering laboratory services, announced the clinical utility of the PROGENSA® PCA3 test, developed by its partner Gen-Probe, was confirmed in two large worldwide studies, conducted in patients in GlaxoSmithKline’s REDUCE trial of dutasteride.

The results demonstrate that PCA3 can help determine whether men suspected of having prostate cancer should undergo a repeat biopsy and can also predict the risk of having an aggressive cancer. The studies were presented at the American Society of Clinical Oncology’s Genitourinary Cancers Symposium in San Francisco, March 5-7, 2010.

“For doctors and patients struggling with the dilemma of the traditional PSA test that has a well-known low specificity, the PCA3 test, with a specificity of up to 80 per cent, can offer a more reliable answer. These results indicate that the PCA3 test can help reduce unnecessary prostate biopsies and help identify patients that have a more aggressive cancer, representing a step forward in personalized patient care,” said Dr. Yves Fradet, co-founder and president of DiagnoCure.

The study showed that PCA3 scores were significantly correlated with a positive prostate biopsy result, and men who had higher PCA3 scores were more likely to have prostate cancer.

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R & D NEWS Winners announced in Biotechnology Venture Challenge The Sanofi Pasteur Healthcare and Biotechnology Venture Challenge, organized by YORKbiotech and the Schulich School of Business at York University, announced its 2009 winners on March 1, 2010.

The challenge invites Schulich MBA students to From left, Gavin Zealey (contest judge) and the winners of the sanofi team up with research- pasteur Healthcare & Biotechnology Venture Challenge, scientific ers, scientists or inven- entrepreneur Arjen Bogaards and MBA students Dr. Dilip Chary (who tors of viable healthcare is also a family practitioner) and Saifuddin Tajuddin Mohamed inventions to devise market strategies and goals for commer- tem for digital pathology. The product, cialization. On February 19, 2010, the top EyesIQ, is a diagnostic tool for scanning, three teams presented their plans to a storing and retracing pathologists’ image panel of judges for the chance to win over data. The team included scientist Herman Lo and MBA students Aravind Petlu and $17,000 in prizes.

First prize went to Sono Pharmaceuticals Nilotpala Jena.

Third place and a cash prize of $2,500 was Inc for Immuno-SDT for cancer treatment.

The team included entrepreneur Dr. Arjen awarded to J. Strupat Technologies Ltd. for Bogaards, PhD and MBA students Dr. Dilip a portable pandemic ventilator (PPV) lifeChary, MD, and Saif Mohamed, BEng, MSc. critical system that provides mechanical The team won $7,500 and a $2,500 busi- breathing assistance to individuals who are ness advisory package provided by MaRS unable to breathe properly due to infection or physical damage. The team comprised Business Services.

Second place and $5,000 went to View- of scientist John Strupat and MBA students sIQ Inc. for a real-time slide-scanning sys- Darryl Baptiste and Jan Noupbaev.

Mark Busgang

Warnex Medical Laboratories recognized for quality laboratory services

Warnex Inc. announces its Medical Laboratories division has successfully renewed its laboratory accreditation by COLA, a U.S. healthcare accreditation organization. Accreditation is given only to laboratories that apply rigid standards of quality in day-to-day operations, demonstrate con8 BIOTECHNOLOGY FOCUS

APRIL 2010

tinued accuracy in the performance of proficiency testing, and pass a rigorous on-site laboratory survey. COLA standards meet or exceed requirements under CLIA (Clinical Laboratory Improvement Amendments).

“Warnex is committed to protecting public health by providing quality services based on advanced science,” said Mark Busgang, Warnex’s president and CEO. “This accreditation by COLA further demonstrates our long-term commitment to providing quality services to our clients, which extend to the healthcare of their patients.”

Warnex was initially accredited by COLA in 2007 for a period of two years and obtained the renewal of this accreditation in December 2009.

Clinical Trials & Patents Advitech Inc. (Québec, QC) announces that the Natural Health Products Directorate (NHPD) has issued a natural product number for one of its main products, XP-828L/Dermylex. The issuance of a product license for XP-828L/Dermylex, means that the product has been assessed by Health Canada and has been found to be safe, effective and of high quality under its recommended conditions of use. As a result, for XP-828L/Dermylex, the approved claim authorized by the NHPD to appear on the product label is: “Clinically proven. Helps improve the symptoms of psoriasis”. Advitech first applied for a product license application for XP-828L in December 2007. XP-828L is marketed as Dermylex in Canada.

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n Allon Therapeutics Inc. (Vancouver, BC) announces that a Phase 1 clinical trial of its lead neuroprotective drug, davunetide, which began patient enrolment January 28, 2010, has been completed. The results demonstrated that the intranasal dose range can be broadened and provided additional information on the pharmacokinetic profile of davunetide. Gordon McCauley, president and CEO of Allon, said the results confirm davunetide’s safety and expands the doses that can be used in future clinical trials. The company’s previous Phase 2a clinical trials successfully demonstrated human efficacy in patients with schizophrenia and in patients with amnestic mild cognitive impairment (aMCI), a precursor to Alzheimer’s disease.

Allon announced January 12, 2010 that the United States Food and Drug Administration (FDA) granted Orphan Drug Designation to davunetide for the treatment of PSP. PSP is a one of several dementias classified as a frontotemporal dementia (FTD). n Lorus Therapeutics Inc. (Toronto, ON) announces the allowance of an Australian patent for novel compounds from its small molecule program. The Australian patent provides broad protection for composition of a number of Lorus’ small molecule drug candidates including LOR-220 and related compounds, as well as Lorus’ lead oncology small molecule LOR-253. This is the first patent allowance from Lorus’ small molecule platform. Lorus currently has similar patents pending in several countries worldwide, as well as pending patents for anticancer uses of LOR-253. An Investigational New Drug (IND) application for LOR-253 is being finalized for filing with the U.S. FDA for a Phase 1 dose escalation trial in selected solid tumours.

BUSINESS coRNER Dekalb increases supply of new canola variety this reason, we have decided to release additional supplies of 72-55 RR. We have released a good supply, but not an unlimited supply. We’re encouraging growers to visit their local retailers soon to place their orders and avoid disappointment.”

“This variety is a DEKALB Yield Ready® designated hybrid that offers great standability and top-end yield potential in an excellent agronomic package,” said Dave Kelner, technology development lead, Western Canada. “It is rated ‘MR’ for blackleg and ‘R’ for fusarium wilt, with medium maturity.”

Photo: Canola Council of Canada

Dekalb® announces it will be making additional supplies of its 72-55 RR canola hybrid available beginning immediately.

A Roundup Ready® hybrid, 72-55 RR is high-yielding and Dekalb’s top-selling hybrid for 2010. It has a solid performance track record and its popularity is expected to continue throughout this growing season.

“Indications from industry experts are that we may be looking at increased canola acres in 2010,” said Cornie Thiessen, Dekalb’s Western Canada business manager. “For

Immunovaccine signs licensing deal with Pfizer Animal Health Immunovaccine Inc. announces that Pfizer signing fees, and any milestone and royalty Animal Health, a business of Pfizer Inc., will payments to further advance its vaccine exercise a licensing option on the company’s pipeline.

“We are pleased that Pfizer Animal Health vaccine enhancement and delivery platform will now be integrating our technology into a to develop a third livestock vaccine.

This represents an important milestone third vaccine product,” said Dr. Randal Chase, for Immunovaccine as it further validates president and CEO of Immunovaccine.

Immunovaccine’s patented vaccine enthe potential of its vaccine platform, and hancement platform uses liposomes in an enables the Company to apply the upfront BiotechFocusABICad.pdf 1 12/03/2010 12:21:47 PM

oil depot to present antigens and adjuvants to the immune system. In preclinical models, the platform creates a depot effect that prolongs the immune system’s exposure to the vaccine, resulting in a rapid, potent, and long lasting immune response after a single dose.

Vaccinations are among the most effective tools to ensure healthy livestock for a safe, global food supply.

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· Industry leaders · Managers of biotechnology companies · BioIndustry specialists · Venture Capital Specialists and Providers · Entrepreneurs · Policy makers · Patent Attorneys & Licensing professionals · Biotech Manufacturers · Scientists and engineers (at all levels from PhD to Principal Investigators) · Animal, plant, energy, microbiology, food & dairy, academic and industry based researchers · Media professionals · Legal and other service providers · Government officials · Farmers and agricultural organizations conference host: Reply Card #4704 APRIL 2010 BIOTECHNOLOGY FOCUS 9

BUSINESS CORNER YM BioSciences closes US$17.5 million financing YM BioSciences Inc. announces it has closed its previously announced “registered direct” offering of 14,583,000 million units at an issue price of US $1.20 for gross proceeds of approximately US $17.5 million.

Each unit consists of one common share and one half common share purchase warrant. Each whole warrant may be exercised to purchase one common share at US$1.60 until March 10, 2015.

Following this issue, the pro-forma total number of common shares outstanding is 80,187,476, including 2,380,953 common shares issued but held in escrow, and there are now outstanding 8,166,480 common share purchase warrants (including warrants issued to the agents). There were no warrants outstanding prior to the current issue, and there are no debt instruments and no preferred shares outstanding.

The funds will be used principally to fund YM’s drug development activities and for general corporate purposes.

Intrinsik announces acquisition of Carexa Inc. Intrinsik Health Sciences Inc. (Intrinsik), a leading provider of toxicology, product development and regulatory affairs consulting services announces it has acquired Carexa Incorporated (Carexa), a regulatory affairs consulting firm which currently does business in North America and Europe. In addition to this acquisition, Intrinsik has appointed Dr. Jan Sedgeworth as vice president, Regulatory Affairs for Intrinsik Health Sciences Inc., the pharmaceutical and biologics consulting division of Intrinsik Inc. Dr. Jon Daniels, executive VP, Intrinsik, commented that “this solidifies a long standing business relationship and will benefit both Carexa and Intrinsik clients in the future.”

He adds that the addition of Carexa and, specifically, Dr. Sedgeworth to the Intrinsik family is consistent with the company’s philosophy of providing senior, personalized advice and hands-on solutions to our clients.

“Intrinsik feels that Jan’s leadership and personality are a perfect complement to our existing team of experienced professionals,” he said. Dr. Daniels further commented that Dr. Sedgeworth’s years of experience in multinational pharmaceutical companies, emerging biotech and consulting, coupled with Intrinsik’s recent implementation of eSubmission software will allow the company to provide its clients with the most current information and approaches to filing their submissions.

Bio-Processing Alliance Inc. launches comprehensive consulting business Bio-Processing Alliance Inc. (BPAI) announces it has officially launched its business.

BPAI is a biologics drug development ‘think tank’ providing consultative direction and support in the management of complex biologics programs. Its services range from concept through to development and successful delivery of products for Phase I-III human clinical trials.

BPAI’s mission is to assist innovator com-

panies in the management of critical thirdparty service relationships through its extensive CMO experience, plus a wealth of technical expertise in technology transfer, project management, process development and optimization, analytical development, scale-up, cGMP manufacturing, compliance and regulatory support utilizing microbial, yeast and mammalian expression platforms.

Dealmakers n SNC-Lavalin (Montreal, QC) has been awarded a contract by Sasol Nitro (South Africa) to provide engineering, procurement and construction management services for a new 400,000 Mtpy calcium ammonium nitrate (CAN) production plant in Secunda, South Africa. SNCLavalin’s involvement with this project started in 2008 with a conceptual study, followed by the basic engineering in 2009, and finally this EPCM contract. The plant is scheduled to be completed in 2011. CAN is a specific concentrated fertilizer that is delivered in solid granules.

It is formed by mixing pure melted ammonium nitrate with an appropriate dolomite and then granulated. The granulation will take place in a fluidized bed granulator designed by SNC-Lavalin’s Fertilizer Division in Brussels.

Dalton Pharma Services (Toronto, ON) announces the renewal of its chemistry services agreement with Boehringer Ingelheim (Canada) Ltd. (Burlington, ON). Under the agreement, Dalton will continue to provide chemistry services in support of Boehringer’s pharmaceutical development programs. Peter

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10 BIOTECHNOLOGY FOCUS APRIL 2010

Pekos, president of Dalton Pharma Services, said, “The extension of our long relationship with Boehringer Ingelheim (Canada) Ltd. aligns with Dalton’s vision to support the drug development programs of leading global pharma companies. Boehringer Ingelheim’s broad commitment to research in Canada despite the world wide reductions in the research sector, demonstrates the importance of Canada as a source of creative talent.” n Lignol Energy Corporation (Burnaby, BC), a technology company in the cellulosic ethanol and biorefining sector, and Kingspan Group PLC , a global supplier of construction products, have reached a joint development agreement for the development of commercial applications incorporating Lignol’s high-purity lignin and lignin derivatives into various Kingspan products. The agreement includes a detailed development program that the parties will work on exclusively, utilizing Lignol’s HP-L™ lignin as a replacement for some of the raw materials presently used in Kingspan’s products.

IntelGenx Corp. (Ville St-Laurent, QC) and Cannasat Therapeutics Inc. (Toronto, ON) have signed a letter of intent (LOI) where IntelGenx will acquire a 50 per cent ownership stake from Cannasat and an exclusive worldwide license to develop and commercialize Relivar, a novel formulation of dronabinol, utilizing IntelGenx’s proprietary mucoadhesive AdVersa technology, for the treatment of various diseases including neuropathic pain. The LOI details the terms under which the two parties will negotiate an exclusive worldwide license that should result in IntelGenx assuming sole product development and corresponding funding as well as commercialization rights for Relivar.

The LOI also lays out the terms for shared milestones and royalties generated by sublicensing of Relivar to a potential pharmaceutical marketing partner in the future. Upon completing a definitive license agreement, IntelGenx would forgive approximately CAD$231,000 of debt owed by Cannasat. A definitive license agreement would be subject to board approval for both companies.

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BUSINESS coRNER Trillium and UHN team up to help patients

Viterra announces strong first-quarter numbers

Trillium Therapeutics Inc. has entered into two definitive license agreements with University Health Network (UHN) and The Hospital for Sick Children (SickKids) in Toronto, granting Trillium exclusive worldwide rights to commercialize two immunology programs in the areas of hematopoietic stem cell transplantation and cancer.

“We are very excited to have strengthened our immunology franchise and to have reinforced our existing bond with Toronto’s world-class immunology community. Our productive long-standing relationship with UHN bodes well for the success of this new collaboration,” said Trillium CEO Dr. Niclas Stiernholm.

The first project licensed by TTI is aimed at improving hematopoietic stem cell engraftment by antagonizing a key immunoregulatory pathway and thereby preventing the host immune system from attacking transplanted stem cells. The second program is focused on the treatment of several types of cancers by antagonizing the same pathway in cancer stem cells, stimulating the patient’s own immune system to attack the cancer.

Thanks to the acquisition of ABB Grain Ltd. (ABB) of Australia in September 2009, Viterra saw its consolidated sales and other operating revenues for the first quarter of fiscal 2010 grow $404.0 million to $1.8 billion. This is up from the $1.4 billion in revenue from the same quarter in 2009.

Earnings before interest, taxes, depreciation and amortization for the quarter were $89.8 million, compared to a first quarter loss of $6.4 million in fiscal 2009.

The loss included a $28.1 million fertilizer inventory write-down.

Earnings from Viterra’s North American operations for the quarter were $23.2 million, a significant improvement from last year’s first quarter results. Earnings the company’s Australian operations were $66.6 million, primarily reflecting a recovery in South Australian production.

Viterra’s first quarter net earnings were $10.7 million or $0.03 per share, which compares to a net loss of $33.0 million or $0.14 per share in the same three-month period of 2009.

Allon adopts shareholder rights plan Allon Therapeutics Inc. board of directors has approved in principle the adoption of a shareholder rights plan agreement.

The rights plan is being adopted to ensure the fair treatment of all Allon shareholders in connection with any possible future take-over bids for the outstanding common shares of Allon. It will provide shareholders with adequate time to properly evaluate and assess a take-over bid without facing undue pressure or coercion.

The plan also provides the board with additional time to consider any take-over bid and, if applicable, explore alternative transactions in order to maximize shareholder value. The plan is not designed to prevent take-over bids that treat Allon shareholders fairly.

The plan is subject to approval by the TSX and will be presented for ratification by the shareholders at the Allon annual meeting to be held on or about June 2, 2010.

April 6 and 7, 2010 F U N D I N G I N N O V A T I V E C O M PA N I E S

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This two day event brings together key industry players and companies interested in investment opportunities and issues affecting companies in the life science sectors. Over 100 presenting companies will span a range of industries including biologics, medical devices, drug delivery, vaccines, diagnostics, bio-energy, green technologies, bio materials, industrial biotech, and research services.

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By Richard W. Scott

FEATURE

Defensin

Mimetics: Using Nature To Keep Us Safer Despite enormous advances in the evolution of anti-infective treatments, most authorities think we are losing the battle against microorganisms. Resistance to antimicrobial agents has developed in every notable strain of pathogenic bacteria, and to basically every commercially available antibiotic.

The advent of such “superbugs” is one of the most crucial medical dilemmas the world is currently facing. Over 2.5 million residents of the US suffer acute bacterial infections annually, and over 100,000 of these individuals lose their lives, making infections the fourth-highest cause of mortality in the country and the second leading cause of death across the globe. Those who live put up with longer stays in hospital and need to be treated with costly second- and third-line antibiotics that often produce harmful side-effects.

The global market for anti-infective medications, estimated at more than $45 billion annually, is growing due to the increase in bacterial drug resistance. For example, the number of hospitalizations in the US between 1999 and 2005 associated with MRSA infections grew 119 per cent. The most striking rise (approximately 400 per cent) during this period was identified with infections that characteristically occur outside rather than inside hospitals. Previously, MRSA frequently affected hospitalized surgical patients or individuals with compromised immune systems. Recently, it has manifested itself as a community-based infection in otherwise healthy people. Two years ago, about 686,000 hospitalizations for MRSA infections occurred in the US, which resulted in direct healthcare expenses of almost $10 billion and a total bill of approximately $118 billion.

The very real prospect of our antibiotic defenses losing their effectiveness or becoming obsolete has produced an urgent need for antimicrobial agents that work via mechanisms that bacteria have not yet recognized.

Ancient defense mechanisms The path to concocting the antibiotics of the future may involve ancient defense molecules. Molds and other primitive organisms rely on biochemically acting agents to protect against bacteria. Penicillin, created for this purpose by molds, is perhaps the most well-known example. Mammals have a more sophisticated defense against bacteria, the first line of which comprises the host defense peptides (HDPs), known as defensins in humans. These molecules, which make up part of the nonhumoral or innate immune response, quickly eradicate bacteria before the pathogens can dominate.

Biologists have found numerous types of HDPs. Although they and human defensins both have a varied array of amino acid sequences, they have similar physicochemical characteristics. All are amphiphilic, meaning they have an affinity for both charged/polar and uncharged/ nonpolar environments. It is this characteristic, rather than amino acid sequence, that lies behind HDPs’ antimicrobial activity, which has remained robust in spite of hundreds of millions of years of bacterial evolution.

12 BIOTECHNOLOGY FOCUS APRIL 2010

FEATURE Be this as it may, proteins and peptides have been conspicuously absent from the recent spate of approvals for anti-infective pharmaceutical drugs. Peptide and protein drugs pose many dilemmas for drug discovery and development. Their handling and manufacture takes time and is costly. Since they are virtually always injected rather than taken in pill form, their production faces strict guidelines governing sterility. It is also usually hard to adopt proteins and peptides derived from animals as drugs for humans, due to their toxicity, instability and tendency to induce immune responses in the host.

An approach to anti-infective drug development taken by PolyMedix of Radnor, Pennsylvania replicates the effects of large protein molecules via novel, small-molecule chemistry, and this mimics intrinsic immunity in humans. The PolyMedix lead compounds, known as defensin mimetics, mimic the activity of host defense proteins but in molecules that are much smaller and less complex than defensins.

The defensin mimetic approach possesses multiple potential advantages over existing antibiotics. For example, it has a novel mechanism of action that is unlikely to result in bacterial resistance; a powerful, broad-spectrum activity against more than 150 Grampositive and Gram-negative bacteria; and a fast bactericidal activity versus the bacteristatic activity for many common antibiotics. Additionally, it has been proven to work against drug-resistant bacteria, including multiple MRSA and vancomycin-resistant enterococci (VRE) strains. It also exhibits predictable, powerful systemic activity in animal models of infection; selectivity for bacteria versus human cells of 100 to more than 10,000, compared with 10 to 20-fold for host defence proteins; and it is well tolerated in animals. It exhibits good drug-like characteristics—pharmacokinetics, half-life, serum binding, and tolerability profiles are characteristic of safe, potent drugs; and it is easy to make via chemical synthetic schemes comparable to those for making drugs or polymeric materials. Finally, it possesses an encouraging safety profile in Phase 1 human clinical testing so far.

The defensin mimetics show a distinctive mode of action which, mirroring the natural human defensin proteins, involves directly rupturing the membranes of bacterial cells. Bacteria possess more nega-

tively charged chemical groups on their membranes’ outer surface than do mammalian cells. Bacterial membranes also do not have any cholesterol, which is plentiful in mammalian membranes.

Defensin mimetics zero in on cholesterol-free membranes that contain negatively charged phospholipids; thus they are specific and selective for bacterial cell membranes but leave mammalian cells untouched. Since the biophysical, or mechanical, mode of action of the defensin mimetics differs radically from antibiotics’ biochemical mechanisms, it is believed unlikely that antimicrobial resistance to these agents will develop.

The defensin mimetics are one-tenth as large as naturally occurring defensins; up to 100 times more potent killers of bacteria, fungi, and yeast; and up to 1,000 times more selective for bacterial versus mammalian cells. These molecules are intended to mirror the amphiphilic structure of the host defense proteins, but with entirely synthetic, nonpeptide backbones, in small-molecule format. These defensin mimetics directly cause bacterial cell membranes to break open, a mechanism that is unique among known antimicrobial compounds.

To evolve resistance to this attack mechanism, bacteria would need to develop a novel variety of cell membrane to escape the workings of defensin mimetics. This also explains why host defense proteins have stayed effective through hundreds of millions of years of evolution. Figure 1 illustrates this mechanism of action of host defense proteins and defensin mimetics versus conventional antibiotics that work on biochemical targets.

Defensin mimetic compound activity

In research on animal models of bacterial infection, PolyMedix’s lead defensin mimetic compounds reveal a level of safety and efficacy that is significantly higher than that of defensins, not to mention commercially available antibiotics.

In December 2008, a Phase 1 clinical trial with PMX-30063, the first defensin mimetic being developed, was successfully completed. This trial revealed that it is possible to safely administer PMX-30063 at doses that result in blood levels associated with full efficacy in animal models of infection, without serious side effects. In vitro studies reveal that defensin mimetics such as PMX-30063 exhibit 1,000-fold or greater selectivity for bacteria versus mammalian cells, including blood Figure 1: Learning from Nature’s Defenses Against Bacteria erythrocytes, mouse fibroblasts and Mechanism of action of host defense proteins and defensin mimetics versus conventional human liver cells. antibiotics that work on biochemical targets.

Some of the early research on PolyMedix’s defensin mimetics involved a general compound structure (Figure 2). These molecules are amphiphilic by virtue of the hydrophobic groups that project from the bottom of the repeat unit, and charged groups at the top of the repeat unit.

Employing this chemical scaffold as the foundation for one class of agents, chemists at PolyMedix have created multiple structural analogs: either defined oligomers, small molecules or heterogeneous polymers.

They found many compounds that exhibit powerful antimicrobial activity and high killing selectivity for APRIL 2010 BIOTECHNOLOGY FOCUS 13

FEATURE Figure 2: Defensin mimetics general compound structure.

tasaccharide region on heparin and LMWH, deactivating them and thus allowing blood to clot normally. Animal studies reveal that a single administration of PMX-60056 following heparin treatment completely normalizes blood clotting time. Even a significant overdosage of PMX-60056 causes no apparent deviation of blood clotting time in animal studies. Notably, PMX-60056 also works against LMWHs, and thus may serve as a universal anticoagulant-reversing agent.

In March 2009, PMX-60056 completed a Phase 1 human clinical safety trial. Continued clinical development is planned.

Food safety

bacterial versus mammalian cells. Subsequently, using molecular modeling and chemical elaboration, the company’s scientists have succeeded in improving these molecules’ activity and selectivity.

The product pipeline now includes a small molecule in clinical development as a systemic intravenous antibiotic therapeutic drug, PMX-30063, being developed for the broad treatment of Staphylococcus infections; a variety of next-generation agents that have shown encouraging activity against other infectious agents including tuberculosis, malaria and biowarfare pathogens such as the infectious agents for anthrax and plague; and a range of polymers for antimicrobial biomaterial applications.

Versatile molecular design platform In addition to its anti-infective program, PolyMedix is actively working on drugs in other therapeutic areas, as well as for nontherapeutic (biomaterial) applications. The other compound now in clinical development is PMX-60056, known as a “heptagonist,” an agent that reverses the anticoagulative properties of heparin and low-molecularweight heparins (LMWHs).

Heparin is an intravenous anticoagulant that is customarily employed following surgery and during cardiothoracic procedures to prevent blood clots that can threaten a patient’s life. Doctors perform about two million cardiothoracic procedures annually. Following the procedure, heparin activity must be counteracted quickly in order to restore normal clotting. Protamine, the only agent currently available for this use, has many drawbacks. It is hard to adjust the dosage, its efficacy is unpredictable, and it exhibits serious toxicities. Additionally, protamine is not approved or reliably effective with LMWHs. LMWHs are a family of drugs employed for the long-term prevention of clots, such as in deep vein thrombosis, or after heart attack or in conjunction with cancer chemotherapies. About 12 million patients take LMWHs every year for chronic treatment of thrombosis. As many as 20 per cent of these patients may experience bleeding complications. There is an intense need for an effective reversing agent.

PolyMedix’s compounds, including the clinical agent PMX-60056, were designed to bind to the pen-

The common use of antibiotics in food animals is a possible source of microbial resistance with immediate effects on public health. According to data from the Centers for Disease Control and Prevention, contaminated food causes 76 million illnesses, 325,000 hospitalizations, and 5,000 deaths in the US annually. Although contaminated food causes over 200 known diseases, more than 75 per cent of foodborne illnesses are caused by Salmonella, Listeria and Toxoplasma, of which the first two are bacteria (as are eight of the 10 most common food pathogens). Although many of these organisms come from the environment, the carryover of resistant pathogens from slaughtered animals is worrisome.

Foodborne illnesses are not only a cause of worry for meat processors. Recent recalls of spinach, high-end pet foods, peanut butter and baby food, in addition to hamburgers and other meat products, stress the need to reduce contamination sources as much as possible.

Antimicrobial biomaterials based on synthetic mimics of defensins might revolutionize the creation of products that contact foods during production, processing and storage. The same traits that make these molecules work as antimicrobial compounds in vivo could make them effective as germicides.

Although sanitation in food processing is achieved mainly via cleaning, the impact of materials used in food processing surfaces, vessels and implements can be large. Bacteria cling to and persist on rough surfaces better than on smooth surfaces. Thus, many food processing surfaces, particularly metallic ones, are polished to reduce surface roughness.

Yet even ultrapolished metals attract bacteria in varying degrees.

A study from the Centre for Applied Microbiology and Research in Salisbury, U.K. concluded that metals commonly used to make foodcontact surfaces harbor bacteria for a length of time that exceeds an average work shift, sometimes almost indefinitely. Stainless steel, the most common food processing surface, retains live bacteria for 34 days; copper, which is known to have antimicrobial properties, retains viable pathogens for up to 14 hours.

PolyMedix believes that substances coated with polymeric defensin mimetics could markedly improve safety at food processing plants and outlets such as butcher shops, delicatessens and restaurants. In proof of principle experiments, bacterial growth was effectively reduced on surfaces made of polymers containing between 0.01 and 1 per cent percent by weight of PolyMedix’s antimicrobial polymer biomaterials.

No antimicrobial substance will entirely eradicate pathogenic bacteria from food that contacts a surface. Instead, the benefit of antimicrobial biomaterials is to keep bacteria from surviving and multiplying on work surfaces, thus substantially reducing the chances of crosscontamination or persistent bacterial presence.

PolyMedix anticipates the development, most continued on page 24

14 BIOTECHNOLOGY FOCUS APRIL 2010

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By: Shawn Lawrence

eXecUtiVe PrOFiLe

tHe riGHt Fit: Cannasat Therapeutics finds a new direction with Anthony Giovinazzo at the helm

16 BIOTECHNOLOGY FOCUS APRIL 2010

EXECUTIVE PROFILE

W

ith more than 31 years of international merchant banking and venture capital experience-including having served as the president of MDS Capital Corp.

Neuroscience Partner’s Fund, Anthony Giovinazzo is looking forward to putting his expertise to use as the new president and CEO of Cannasat Therapeutics Inc. Stepping into the role in November of last year, Giovinazzo inherited a pipeline rich in potential, including a proprietary formulation technology for cannabis drug candidates, and the company’s lead product Relivar, a buccal tablet for symptomatic management of neuropathic pain.

The strength of this product and its validity are among the many reasons Giovinazzo chose to sign on with Cannasat. The company’s potential to be a major player in the CNS field was equally enticing.

Conversely, with a reputation for being an out-of-the-box thinker as well as a polished executive, Giovinazzo was hand-picked by former Cannasat CEO David Hill as his ideal successor. Giovinazzo brings with him extensive experience in licensing drug candidates, mergers and acquisitions, the management of clinical development and the ability to build small, execution focused teams.

“I really credit the former CEO Mr. David Hill and his board for having brought me in,” says Giovinazzo. “They wanted to create a stronger management team and supplement the existing team they had with people that had large pharma in-licensing, merger/ acquisition, and international capital raising expertise. [Hill] really decided that it would make more sense to bring a race horse in to take the company forward and create and realize value as quickly as possible, and so here I am.”

The fact that Giovinazzo has a track record for delivering financial results as well as a good relationship with investors was not lost on the decision makers who put him in charge.

“If you go to the U.S. and you talk to institutional venture investors, they’d tell you they would always prefer to have a management team and a CEO that have had several experiences under their belts, and not just positive experiences because the negatives are the things that create scars on your back and remind you of where not to go or where to go in the process of building value.”

The successes on Giovinazzo’s resume include selling Cita NeuroPharmaceuticals Ltd. to Vernalis Plc. in what was one of the largest merger and acquisition deals of 2005. He was also able to raise US$36 million for Cervelo Pharmaceuticals Inc. in 2007. Moreover, of his 31 years of international biopharmaceutical experience in drug development, 16 have been spent in the CNS field. All of this points to why Giovinazzo was the logical choice to take the helm of this budding CNS company.

His blueprint to date includes assembling a portfolio of two to three additional drug candidates through in-licensing. More specifically, he plans to build a portfolio of CNS assets, all with a managed-risk profile in target markets considered to be high-growth.

With this in mind, Giovinazzo’s wishes to rebrand Cannasat into a

“Growing the company’s portfolio of drug candidates through in-licensing and acquisitions, and to advance projects to Phase 2 proof-of-concept clinical studies are only part of my strategy. Once the drug candidates are sufficiently de-risked, I intend to out-license the programs to the appropriate pharma marketing partners for a combination of upfront, milestone, and royalty payments.” specialty central nervous system (CNS) drug company.

“Growing the company’s portfolio of drug candidates through inlicensing and acquisitions, and to advance projects to Phase 2 proofof-concept clinical studies are only part of my strategy,” he says.

“Once the drug candidates are sufficiently de-risked, I intend to outlicense the programs to the appropriate pharma marketing partners for a combination of upfront, milestone, and royalty payments.”

Significant steps have already been taken towards implementing this plan. In February, Cannasat obtained an option on an oral formulation of apomorphine, an approved drug for Parkinson’s disease from Adagio Pharmaceuticals. The new compound, known as APL-130277, is effectively the same drug as apomorphine. But as an oral drug, it has the potential of treating a much larger group of Parkinson’s patients, who have a moderate-to-severe form of the disease unlike Apomorphine, which is given by injection to patients suffering from a severe version of the disease, and has drawbacks such as scarring and inflammation.

“The compound has the potential to address a significant underserved portion of the $3 billion-plus Parkinson’s disease market,” says Giovinazzo, adding that because it is an approved drug, and requires one Phase 2 study to allow it to proceed to NDA new drug approval submission, the risk from a regulatory and clinical perspective is reduced.

“This means that in less than three years, we will have a second project that should attract a substantial partnership or a merger and acquisition partner,” he says.

In moving this newly acquired compound through the pipeline, APRIL 2010 BIOTECHNOLOGY FOCUS 17

EXECUTIVE PROFILE

Significant steps have already been taken towards implementing this plan. In February, Cannasat obtained an option on an oral formulation of apomorphine, an approved drug for Parkinson’s disease from Adagio Pharmaceuticals.

The new compound, known as APL-130277, is effectively the same drug as apomorphine.

Giovinazzo says the company plans to conduct due diligence, proof-of-concept and preclinical studies this year, with a Phase 1 trial scheduled for 2011. The reformulated drug also qualifies for accelerated approval through the FDA’s 505 (b) (2) pathway after one successful Phase 2 clinical study.

In March, Giovinazzo took the next step towards building more of a CNS foundation, by agreeing to give IntelGenx a 50 per cent ownership stake and an exclusive worldwide license to develop and commercialize the company’s Relivar cannaboid drug candidate.

“Both the technology, and the candidate (Relivar) have very interesting potential to treat neuropathic pain associated with multiple sclerosis and cancer, as well as for nausea/vomiting and appetite stimulation,” says Giovinazzo.

“The rationale is this an attractive proposition to Cannasat because it takes the future capital requirements out of our hands, accelerates the program, but in the end we still get to keep 50 per cent of the upside.”

On top of these two transactions, Giovinazzo hopes to in-license several more compounds.

“One never knows in this business which project might stumble or slow down, or have to be shut down and so being a one-trick-pony is not the best choice. Essentially by creating a portfolio of not one core asset, but three clinical development assets, you are left with three different trajectories to commercial valuation,” he explains.

“I believe one of the important risk mitigating factors that we’ve learned from the Americans is how they’ve built their biotech companies with portfolios rather than as single project company’s. It’s something we need to do more of from a commercial valuation perspective in Canada. And to be able to take that and move it forward by raising sufficient capital. So my strategy going forward is to build this portfolio, to create a true clinical development company and also to raise capital,” he says.

18 BIOTECHNOLOGY FOCUS APRIL 2010

The best part is he’s done it all before. For starters, he built Cita NeuroPharmaceuticals Ltd. over a period of three years, from a single early stage drug candidate, to an independent CNS company with three midto-late stage drug candidates.

“Cita was a great example of how you build a company in Canada by in-licensing drug candidates from elsewhere. With Cita, we in-licensed candidates from a European mid tier pharma that had over a billion dollars in sales yearly. By doing good work in terms of having a team of 10 to 12 people that understand this area from a clinical and regulatory point of view, we in fact created a very valuable portfolio. Lucky for us we also had an investment bank approach us while we were on the road show looking to buy us out. It’s a very good example of a company where you can build a portfolio, build a team, but eventually you have to think about the exit strategy for your stakeholders and it was a very important lesson that I learned.”

It’s important to note that others had a hand in getting Cita to a point where it was attractive enough for buyers. In fact, Giovinazzo brought in an executive team with experience to balance the business initiatives with the market initiatives. Giovinazzo believes that Cannasat will benefit like Cita did with a more experienced management team supplementing the current management team. With this in mind, he plans to bring in several individuals that he has worked with previously with other CNS ventures, including some top consultants with experience in both the regulatory and toxicology side.

Yet even with a valuable team and product portfolio in place, there is still always the bigger question of where the money is going to come from.

“What we really need to do to build value quickly is to do several

EXECUTIVE PROFILE

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projects at the same time, running several studies as tightly as you can from a timing point-of-view and moving forward to an inflection point of some substance. That requires raising money either from the very sophisticated venture capital community internationally or the institutional investor community internationally. You need to raise eight to 10 million dollars at a time, if not more,” states Giovinazzo.

This is an approach the company was not following prior to Giovinazzo’s appointment as president and CEO. “The company did extremely well on a limited basis raising almost $10 million over five years. But the truth is, that’s just not enough to do things quickly” explains Giovinazzo.

The first step he says is bringing in capital from multiple sources.

“Obviously from my experience, what I know is you can’t raise all the capital we want in Canada, but that should not stop us. And in fact because of my past experience in raising capital internationally, I’ll look at dividing up what I need by raising some of it here and some of it abroad, like the U.S. and the Far East which I think is achievable. With the current economic and capital markets environment, it’s quite likely that it will not be possible to raise all of the new capital I need in the short run from institutional investors, pension funds and insurance companies and mutual funds. But there’s a very good probability of having a hybrid model. Where you raise some of the money from large venture capitalists who do invest in public companies, what’s called a private placement in a company, alongside institutional investors so that you’re not depleting one source of capital completely, and leaving everyone hungry for future opportunity as well.”

He’s also not shy about turning to big pharmaceutical companies on the prowl for innovative products. As such, the strategy for Cannasat is to become a clinical development company, but to be of the type that doesn’t expect to complete the value-chain process.

Essentially he is going into it with a pre-conceived notion that there is going to be an exit strategy in the end “We will stop at a clinical proof of concept, Phase 2A or Phase 2B in order to have robust data, to attract a first tier or second tier pharmaceutical industry. In the CNS field or diseases of the brain, the companies may include Biovail, as well as the big players, sanofi aventis, GSK, and Pfizer.”

And why does he think pharma partners will come knocking?

“The pharmaceutical industry is facing intense competition from generics thanks to the patent cliff. They are on the lookout for areas of opportunity. This has lead to a trend of more licensing deals between pharma companies and biotech, as well as mergers and acquisitions. Moreover, the pharmaceutical industry in any 10 year time frame goes through an ebb and flow - they’ll move from cardiovascular, to cancer, to CNS, or a combinations of those, and what many of them have now realized is that there’s a huge and growing market in the CNS area. As such, many of them are targeting CNS as a primary or secondary area of interest. And hopefully, in the end, we’ll be there to capitalize.”

By: Robin M. Sundstrom

Best Practices

Angels at Work: Bridging the Funding Gap

A Task Force on Early Stage Funding, led by UBC’s Sauder School of Business and sponsored by the National Research Council, stated in 2005 that Canada suffers a $5-billion “funding gap.”

This funding gap is the financing shortfall for new initiatives that lie between the research stage, where government funding and grants are often available, and the growth stage, where traditional venture capital (VC) may be available to innovative businesses.

Furthermore, since 2005, venture capital has virtually abandoned early-stage investment in Canada.

Ontario, for example, experienced one of the most substantial declines in VC activity in Q3 2008, with a total of $163 million invested in 36 companies, 43 per cent less than the $283 million of Q3 2007. Although VCs are looking more active now that the market is improving, the fact that they pulled in their horns over the past couple of years has widened that $5-billion funding gap.

In a related trend, possibly exacerbating the shortfall even more, the Conference Board of Canada (CBC) reports that over the past four decades, Canada’s ranking with respect to global inward investment has steadily dropped. In essence, Canada has lost some of its traditional advantages; natural resources, for example, are now more costly to explore and exploit, so foreign investors have been steering clear.

In sum, the financial crisis and economic recession led global investment in Canada to fall by an estimated 20 per cent in 2008, according to CBC. So our VCs have been focused on supporting their existing ventures (when they have money to invest at all) and outside investors have been keeping their cash in their pockets. Although recent reports have indicated that Canada is now, once again, becoming a haven for astute foreign investors because of the strength of our economy and the stability of our banking sector, not much of this money is going towards early-stage, growth companies.

The most parched of Canada’s thirsty start-ups are those involved in biotechnology and related areas. These sectors have been identified as key by federal ministries – federal MPs, in June of last year, even formed a ‘BioCaucus’ to promote the new economic opportunities associated with biotechnology in Canada. This group, which included our Minister of Industry, Tony Clement, recognized the emergence of biotechnology companies as “engines of growth,” but offered few solutions to bridge the funding gap. The group’s focus was pouring money into research and educational facilities in order to develop new technologies.

20 BIOTECHNOLOGY FOCUS APRIL 2010

Well, this is possibly useful, but here’s a newsflash – we already have superlative technology. Canadians are really, really good at innovation, engineering, research, and invention.

What we don’t have as readily is the funding and expertise that enables companies to commercialize that technology. Especially in biotech, where the path from idea to finished product is long and frequently painful, early-stage companies can wind up with everything in place for success – except the money.

How then do smaller, fast-growth companies in this sector access capital? Traditionally, business angels, individuals who invest their own money in early-stage companies, have bridged the gap between the “triple F” investors – Families, Friends, and Fools – and institutional investors such as VCs and purveyors of public equity, who invest OPM (other people’s money) in start-ups. Often serial entrepreneurs, angels usually invest between $10,000 and $250,000 of their own capital for the pleasure of helping a company grow and the hope of involvement in a play that generates lots of cash.

Overall, angels’ contribution is not inconsiderable. In Canada, angels have historically invested more than twice what VCs are putting into growing companies. In the recent, desert-dry past, angel investment has totaled, by some estimates, more than four times institutional investment. The most up-to-date studies indicate that Canadian angels have invested about $2.2 billion per year in upwards of 25,000 companies.

Moreover, as the gap between family-and-friend investors and the bigger institutions has widened, angel investors have increasingly banded together, both to protect their investments and to provide greater amounts of capital to their investees. Bands of angels can invest as much as $5 million if the three Ts are aligned in their investment target: • Team – 60 per cent of angels’ focus is on management

Best Practices • Traction – the company’s product or service is already proven.

This gets a weight of about 30 per cent in angels’ evaluation • Technology – a unique, patent-protected technology will have a weight of about 10 per cent in the overall evaluation of the company Management is by far the most important element for angels. Where VCs sometimes have complex financial models at the basis of their judgment about whether to invest, angels – who may nonetheless use sophisticated financial modeling – will look much more closely at management.

And by and large, the angel is not looking simply for technological brilliance. Most angels figure a good manager will hire or partner with someone who has the science locked down. Science is seen as a commodity. This is why sometimes the angel investor seems less interested in the technology story than the VC may be – and may lose patience with a lengthy technology section in a company presentation.

Instead, angels will ask questions like: “has the team successfully built a company before this, what is management’s track record and who is on the board of directors or advisory board?” Angel investors look for business acumen, domain knowledge, and operational expertise in the management team, which for them includes the board.

Since biotechnology companies are most often technology driven, angels’ management focus can confuse biotech companies that come looking for financing. Presenters are accustomed to providing lots of technology detail, when what an angel generally wants to know is, “does it work, is it protected, and is there a market?”

In addition, the angel’s investment process can be lengthy. The following chart shows the stages a typical angel group might work through to complete an investment, a process that can take six months or more (although the individual angel may take less time to make a decision). Since angels do most of their own due diligence, and since most angels are volunteers rather than paid analysts, it’s easy to see why the angel group’s investment might not be delivered as quickly as company management would like:

Opportunity Submitted Due Diligence Pre-Screening (Manager)

Final Negotiation

Screening (Committee) Investment Pitch & Group Screening

CoInvestment

It is clear that angels can operate from an investment template that may sometimes serve to exclude biotechnology companies, especially drug discovery companies, from their portfolios. Angels look for payback in three-to-five years, while biotech companies are frequently looking at seven years and upwards before any payout to investors. Angels want to invest in companies that are in the com-

mercialization stage, where their operational expertise can aid the company to get its product to market, while biotech companies need substantial money long before they have a product ready to show the market. Angels look for investees that will hit the tipping point with investments of under $2-million, as they fear being squeezed by later, bigger, more powerful investors with little concern for the small investor who brought the company to the point of success. Biotech companies can require tens of millions of dollars to complete the research and development phase alone.

But much more compelling with this seeming lack of fit between angel investors and biotechnology is the fact that angel investors really have the perfect profile to invest constructively in health sciences, biotech and medical technology.

Angels have done it themselves. They understand the challenges of running a business, and can help technology boffins and scientistentrepreneurs with the logistical and regulatory demands of the growth-oriented company they’re running Angels are risk-tolerant. As high-net-worth investors, they are investing their own money, and do not have to answer on a quarterly basis to fund managers and institutional investors who are driven by monthly returns and daily stock-price fluctuations.

Angels are patient money. Although they would prefer to cash out in three years, if they are motivated by excitement about a company’s or product’s potential they can spend a much longer time supporting their investee’s goals.

Angels are hands-on investors. Where biotech companies often excel at technology and falter on operations, angels enjoy helping and have real management expertise to contribute. Angels’ goals are well-aligned with those of their investees.

Angels have connections, and where they don’t have them they will generally work to develop them. Most angels will give their Rolodexes a powerful workout in support of their investees – unlike many institutional investors. Biotech companies flourish best in rich intellectual and technological environments, and angels will work to ensure that management can tap into this type of richness.

Angels are comfortable with technology. Many angels made their money in software or process technology. They are not often frightened by complex stories.

Angels need and want to diversify their portfolios. Over the last few years, there have not been plentiful biotech investments of a size appropriate for angels or angel groups. Some angels, who see healthcare, medical technology and biotechnology as key to future growth in Canada, are actively looking for opportunities in the sector.

Angels are successful investors. Angel groups have posted average internal rates of return (IRR) of 27 per cent over 3.6 years, far exceeding either money market or average exchange returns for the same period.

Such outstanding results indicate that either angels are exceptionally astute at identifying strong investment opportunities or that angel investment makes for better companies. In either case, it would seem well worthwhile to explore angel investment.

Robin M. Sundstrom is a business owner and angel investor whose firm is a sponsor of the National Angel Capital Organization. She is a founding member of the Cleantech Angel Network.

For more best practices information visit our commercialization Web Portal at www.bioscienceworld.ca

APRIL 2010 BIOTECHNOLOGY FOCUS 21

By Mike Pettapiece

ACROSS CANADA

A natural resource

that can save lives Canadian bioactive paper network chases a new commercial centre

McMaster University biochemistry-lab chief Yingfu Li remembers a time when he had a store-bought ham that just didn’t feel right.

Something about the meat made him wonder if he and his family members might become victims of a food-borne illness.

“You could feel it was kind of sticky (indicating a possible bacterial-film presence),” he recalls. “It would be nice to have something, some product, for home use where you could put a little bit of (test) liquid (on the food) to see if it was okay to eat. . . . If you had something that cost maybe 10 cents or 20 cents . . . I would buy it.”

Which is exactly what Dr. Li and dozens of other Canadian researchers are doing to try to make the world a safer place. They are working on quick, reliable and inexpensive detector strips for homes, well-water areas, food factories and in Third World nations.

The strips take advantage of a natural Canadian resource: paper made from tree pulp.

The need for such a handy paper-based product almost shouts from panicked head-

Yingfu Li, middle, oversees Ali Monsur, left, and Sergio Aguirre measuring out a colorimetric sensor reagent for detecting bacteria.

22 BIOTECHNOLOGY FOCUS APRIL 2010

lines over the past several years. There was the Walkerton tragedy in 2000, the SARS epidemic three years later in which 44 Canadians died, the 2008 listeriosis outbreak that claimed more than 20 lives and the more recent H1N1 influenza A crisis.

In March, a salmonella bacteria scare involving processed food containing hydrolyzed vegetable protein rippled across North America. The same month, there were more listeria deaths and illnesses. And a U.S. study concluded that food-borne illnesses cost the United States $152 billion annually in health care and other losses.

“Issues involving tainted food and water, resistant bacteria in hospitals, the global spread of disease and the threat of bioterrorism receive almost daily coverage in the Canadian media . . . ,” Dr. Robert Pelton wrote in a 2009 chemistry journal article.

“Inexpensive bioactive-paper assays could help control such outbreaks.”

Dr. Pelton is a chemical engineering professor at McMaster and scientific director of the Sentinel Bioactive Paper Network. He was a key inspiration years ago behind a plan for paper that would rehabilitate unsafe water. The paper would be added to unsafe water, causing the contaminants to bind to the cellulose fibers.

That idea sank for lack of funding but the concept of entrapping something stuck around. That led to bioactive molecules secured on a paper substrate -- a portable labon-a-chip platform. With such a cartridge, someone could detect a pathogen or toxic metal in water, such as E. coli or lead.

“I was in India (recently),” Dr. Pelton wrote in an email exchange from Portugal, where he is on a sabbatical. “And one reason was to scout out location where we could work with local scientists and engineers to evaluate bioactive paper-based water testing in rural communities.”

But the story is far bigger. Work is underway on several Sentinel platforms -- from detection of E. coli and listeria bacterium to

ACROSS CANADA

“Issues involving tainted food and water, resistant bacteria in hospitals, the global spread of disease and the threat of bioterrorism receive almost daily coverage in the Canadian media. . . Inexpensive bioactive-paper assays could help control such outbreaks.”

— Dr. Robert Pelton, scientific director of Sentinel Bioactive Paper Network

virus-detecting hospital masks, from kits that detect greenhouse pathogens to research that seeks out neurotoxins that might be used as bioterrorism agents. Cellulosic paper remains the common denominator.

Sentinel has 19 member partners: 11 are Canadian universities, five are from industry and three come from government. The network has been running on $8.5 million in funding from the Natural Sciences and Engineering Research Council of Canada and another $2.5 million from industrial partners and the Ontario Centres of Excellence.

The NSERC funding was originally designed to run until this fall. But new federal sector-specific research money that takes in the forest-products sector will extend Sentinel’s funds into 2015. And, said Dr. Pelton, Sentinel wants to create a national bioactive paper centre under the Centres of Excellence for Commercialization and Research. If that were to happen, it might mean millions more dollars.

Sentinel has a lot of competition. At Harvard University, for example, a research group has created a cheap paper-based diagnostic test for diseases or organ health, such as liver function. Other paper-research

champions are in Finland and Australia. But Canada is an acknowledged world leader in this innovation.

Many different technologies come under the Sentinel umbrella. They vary depending on the potential use of the biosensors and the harmful substances they might contact.

But as a generic rule, they require a ‘capture agent,’ such as a bacteriophage or antibody that is engineered to recognize, bind and capture a specific pathogen, such as E. coli.

Perhaps one might even genetically engineer a bacteriophage (a virus that invades bacteria, using the host’s own machinery and energy to produce more phage), by inserting a colour gene into the phage DNA, so that it would fluoresce when the bacteria are destroyed.

Such paper bioassay strips are, in a way, akin to familiar detector strips like home pregnancy tests or glucose sensors. In its simplest form, a paper-based biosensor would signal contact with a pathogen by changing colour in one area, somewhat like pH-indicating blue litmus paper turns red when in contact with an acid.

Over the past several years, the network has taken research well beyond the proof-

of-concept stage. For example, a spinoff company at the University of Guelph has developed a prototype bioassay kit that tests for a toxic pathogen, pythium aphanidermatum.

Pythium devastates greenhouse vegetables and flowers.

The spinoff, called PatraTec, is also studying the potential of tests for E. coli or lead, two prevalent contaminants in drinking water. North America would be the most ready market but the benefit for less-wealthy nations is obvious. Such kits would not require the expensive testing and time delays inherent in using a laboratory.

“The initial market would be for people who depend on wells, for example in rural areas,” said Mercedes Salas, a co-founder of PatraTec. “It’s about peace of mind as well.

You may know your source of water is safe but you just want to be sure.”

The science behind overcoming pathogens can be mind-boggling, taking in fields as diverse as nanotechnology, genetics, materials science, and biochemistry. At Guelph, for example, Christopher Hall, Canada Research Chair in Recombinant Antibody Technology, is introducing disease-fighting antibodies into plants.

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ACROSS CANADA Antibodies do not occur naturally in plants, so they enter a plant’s genetic code through the wonders of biotechnology. He and others are investigating highly specific recombinant antibodies (rAb) that can be entrapped in cellulose. Such bioactive filters might be used to decontaminate greenhouse pathogens. In industrial applications, they might help purify nutraceuticals and pharmaceuticals.

Even developing paper bioassays is a small technology miracle in itself. In general, these sensors are paper-based cartridges that contain biologically active molecules. The technology uses a sol-gel method to entrap the molecules, such as enzymes, between biocompatible silica layers on the paper matrix.

Working with industrial partner Fujifilm Dimatix, a group led by John Brennan, Canada Research Chair in Bioanalytical Chemistry at McMaster, developed bioinks that could be printed onto a paper substrate. The detector biochemical reagents within the bioinks can remain active for some time as long as they are stored properly.

At the University of New Brunswick, investigator Huining Xiao is looking at foodprocess wrap and packaging that contains bioactive materials to inhibit E. coli activity.

His research has shown that antimicrobial polymers or compounds can bind to paper.

Similarly, Ramin Farnood, at the University of Toronto, works with special inks to develop a paper that glows when electroluminescent coatings are applied. Such substances would react when exposed to certain pathogens or chemicals, warning consumers that a food product is contaminated.

If you can print such biosensors, you’re well along the way to scaled-up automation, which in turn moves you closer to commercial production. And the strips don’t have to be one-trick ponies, says Dr. Li. Researchers can develop reagents that can detect three or four pathogens. Reactions would be signalled at different spots on a strip.

Of course, the Sentinel technologies will need regulatory approvals from different government levels and agencies. Liability is “a huge issue,” notes Dr. Li. And the intel-

lectual property is nothing without industrial partners and customers, and financing to take the various platforms to market.

“Canadian academics have always struggled at bringing research to commercialization,” Dr. Pelton commented via email. “A major objective of Sentinel Solutions, the commercialization network we hope to get funded, will be to bring economic paybacks to Canadian taxpayers. We have already delivered good science and newly educated students with special interdisciplinary skills.”

Mike Pettapiece writes for the Golden Horseshoe Biosciences Network, based at McMaster University in Hamilton. He can be reached at: mikepettapiece@cogeco.ca

For more TO MARKET information visit our COMMERCIALIZATION Web Portal at www.bioscienceworld.ca

continued from page 14 likely via licensing collaborations, of the use of these polymer biomaterials in antimicrobial materials in medicine, healthcare, food processing and consumer and home products. Most of these applications would harness polymers or other materials composed of these antimicrobial polymers as self-sterilizing antimicrobial and bactericidal surfaces.

There are numerous possible applications for polymeric antimicrobial biomaterials.

These include biomedical applications (e.g., intravenous tubes, catheters, antiseptic lotions, bandages, implantable joints, medical devices, surgical gloves and medical gowning); industrial applications (e.g., clothing, paper, paints, construction materials such as walls, floors, and benches, antifouling coatings and industrial surfaces); and consumer products (e.g., cosmetics, personal-care products, toilet seats, toys, bedding, towels, and carpeting).

Pathogen-resistant surfaces One thought-provoking possibility for materials based on defensin mimetics is to fight Stachybortus chartarum, the “black mold,” which causes about $90 billion in damage every year to homes and commercial buildings. A polymeric defensin mimetic might be used as an additive in paints, drywall and other construction materials to stop this troublesome and unhealthy fungus from growing.

The focus of PolyMedix’s polymer development is on two specific types of compounds for materials applications: the polymethylacrylates and polynorborenenes. A small-molecule phenylalkyne oligomer, with broad-spectrum antimicrobial activity and which is easily 24 BIOTECHNOLOGY FOCUS APRIL 2010

synthesized, is also being researched for biomaterials applications.

All polymeric defensin compounds are made from commerciallyavailable starting materials. Methylacrylate polymer synthesis is a one-pot, one-step copolymerization of two monomers, one functionalized monomer with a positively charged side group and the other bearing a hydrophobic sidegroup. The resulting random copolymer is amphiphilic, and antimicrobial activity is dependent on the percent composition of each of the methacrylate monomers.

Polynorborenene polymers are manufactured using a copolymerization process with mixtures of two monomers that bear positively charged and hydrophobic side groups, or a polymerization process using one type of monomer that bears both positively charged and hydrophobic side groups.

Conclusion Medicinal chemists have often turned to nature for products and inspiration throughout the history of the pharmaceutical industry.

By capturing the salient traits of host defense peptides in a synthetic small-molecule or polymer format, PolyMedix has shown that nature, with some help from computational technology and human ingenuity, is still a great source of ideas for novel therapies. The company is currently in Phase I clinical trials with both the antimicrobial PMX30063 and the heparin antagonist PMX-60056. It expects to continue advancing both programs further into human testing during 2010.

The company is also researching both in-house development and outlicensing arrangements for commercializing these antimicrobial materials for a variety of industrial, food and household products.

For more agriculture information visit our natural HEALTH PRODUCTS Web Portal at www.bioscienceworld.ca

8 Annual Ion Channel Retreat th

Vancouver BC, Canada • June 28 - 30, 2010 Hyatt Regency Vancouver Aurora Biomed invites you to attend the 8th Annual Ion Channel Retreat. Our goal is to create a forum for scientific discourse spanning the spectrum of ion channel disciplines. Researchers from both academia and industry are invited to share knowledge for the advancement of ion channel research, drug discovery and safety pharmacology.

Ion Channel Retreat Sessions will include: Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

Ion Channels as Disease Targets Ion Channels as Pain Targets TRP Channels – links to Pain & Disease K-Channels – links to Pain & Disease Ion Channel Screening Technologies Ion Channel Genomics – New Horizons in Life Sciences Safety Pharmacology Cardiac Ion Channel Pharmacology Structure & Function of Ion Channels

2010 Scientific Advisory Board John Dunlop (Pfizer Global Research and Development) Executive Director, Neuroscience Research Unit

Gul Erdemli (Novartis)

Head of Ion Channel Group

Alan Wickenden (Johnson & Johnson Pharmaceutical R&D) Research Fellow

Andreas Jeromin (Banyan Biomarkers) Project Manager/Senior Principal Scientist

Peter McNaughton (Cambridge Neuroscience Department) Professor & Department Head

2010 Speaking Program Visit our website (www.aurorabiomed.com/retreat10.htm) starting in mid-March for Program Updates and Schedule.

2009 Speakers included: Alan Wickenden (Johnson and Johnson) Andreas Jeromin (Allen Institute for Brain Science) Bernard Fermini (Pfizer) Bryan Moyer (Senomyx) Christine Beeton (Baylor College of Medicine) Clemens Mœller (Evotec) Clive Glover (Stemcell Technologies Inc) Craig January (Cellular Dynamics International) Damian Wheeler (Stanford University) Gerhard Meissner (University of North Carolina) Gregory Kaczorowski (University of New Jersey) Heike Wulff (University of California) James Miller (Elan Pharmaceuticals) Jerrel Yakel (NIH/NIEHS) John "Jack" Stewart (BioProspecting NB Inc.) Luis Galietta (Gaslini Institute, Genova, Italy) Michael Dabrowski (Astrazeneca) Merritt Maduke (Stanford University School of Medicine) Paul Li (Simon Fraser University) Peter Light (Alberta Diabetes Institute) Raad Nashmi (University of Victoria) Richard McCombie (CSHL) Roger O'Neil (University of Texas) Sharona E. Gordon (University of Washington) Sikander Gill (Aurora Biomed Inc.) Søren Friis (Sophion Bioscience A/S Denmark) Stephen Hess (Millipore) Steve Stice (University of Georgia) Tim Kamp (Cellular Dynamics International) Victor Uebele (Merck) Wei Zheng (NIH) Zhiyuan Li (Guangzhou Institute of Biomedicine & Health)

~~~ Register ONLINE by March 31st for Early Bird Pricing ~~~

Corporate Sponsors

Media Sponsors

Please visit our website www.aurorabiomed.com for frequent updates or contact us at retreat@aurorabiomed.com • Tel: 604.215.8700 • Fax: 604.215.9700

Reply Card #4708

NEW PRODUCTS Hamilton NIMBUS iProbe Hamilton Robotics’ NIMBUS iProbe compact liquid handling workstation features up to four independent channels that can be configured with any combination of 1 ml or 5 ml pipetting heads. The new instrument provides flexible pipetting choices to and from microplates or tubes in volumes from 1 µl to 5,000 µl. NIMBUS iProbe performs liquid handling steps such as tube-to-tube, tube-to-plate, and plate-to-plate transfers including pipetting from non-standard labware. It offers independently spaced channels for hit picking and sample prep from tubes, and the 5 ml capability enhances high-volume applications such as vacuum-based solid phase extraction. The NIMBUS iProbe includes a new, graphical user interface that facilitates simple instrument programming.

Reply Card #4709 Multichannel Probe Head The Shifted Tip Pickup technology enables Hamilton Robotics’s CO-RE 384 STP (Shifted Tip Pickup) Multichannel Probe Head for the company’s MICROLAB® STAR liquid handling platform to pick up one column, one row or just one tip without changing heads, delivering flexibility and cost efficiency. This makes the STP head an ideal solution for performing serial dilutions in 384- and 1536-well plates. When used with Hamilton’s 4-to-1 adaptor Rocket Tips, the 384 STP head can serve as a 96-well probe head on the fly and eliminate the expense of a second head and arm. Switching to 96-well pipetting increases the per-channel maximum volume to 300µL. When using all 384 channels independently the standard per-channel maximum volume is 50µL. “This new head, with its ability to pick up single tips, rows or columns, saves significant amounts of time for the researcher,” said Scott Eaton, Director of Hamilton 26 BIOTECHNOLOGY FOCUS APRIL 2010

Robotics. “Combined with our Rocket Tips, this head does the work of two separate arms, eliminating an expense for the life science lab.”

Reply Card #4710 Syringe Pump Syrris’ new Asia Syringe Pump is designed specifically for flow chemistry. The Asia Pump is rated to 20 bar (300 psi) and highly chemically resistant using PTFE (and other fluorinated polymers) and glass this compact module offers two independent continuous flow channels, each with an integrated pressure sensor and a flow rate range from 1.0 µl to 10 ml/min. The pump is only 23 cm wide, making it ideal for in-lab use. Furthermore, the replacement of components such as valves, syringes or pressure sensors is extremely quick and easy, without the need for any tools. Produced to the highest specifications, flow rate and volume can easily be controlled using the intuitive front panel, or via the Asia PC software.

The PTFE pressure sensor ensures safe operation by automatically stopping the pumps in the case of over pressure.

Reply Card #4711

LCMS AND GC Equipment Proton Energy Systems has launched a complete line of advanced equipment for the LCMS and GC lab market.

The state-of-the-art equipment offers the analytical laboratory market a highly reliable, safe and high performance solution for onsite hydrogen, nitrogen and zero air generators. Proton showcased the new portfolio at Pittcon 2010.

Proton Energy’s new product line highlights the company’s growing presence and expansion in the national and international laboratory market. The LCMS and GC lab equipment offers all the needed components for analytical laboratory energy generation. Products such as the AirComp, AirGen, NiGen, and HyGen operate as both independent units and as a completely compatible and stackable system. The equipment, which has a variety of capabilities and an easy-to-use, low-maintenance capacity, enables more uses for any laboratory.

Reply Card #4712 Ultralow Temperature Freezer The SANYO Twin Guard Series™ MDFU500VXC, the first 18.3 cu.ft., -86°C Ultralow Temperature Freezer to be offered and sold in North America with Dual° Cool™ technology. Unlike traditional cascade systems, Dual° Cool operates as two refrigeration systems with two individual compressors each purpose-built to operate independently in the unusual event of an unexpected failure.

Combined with optional liquid nitrogen or liquid CO2 back-up systems, the user is ensured protection. During normal operation, the dual compressors can run in tandem to employ energy-saving EcoMode.™ The Twin Guard Series™ is designed to preserve even the most sensitive, high-value biologicals and is ideally suited for critical storage in repositories, clinics and medical research facilities. Featuring the twin guard refrigeration system, energy saving modes, and advanced controls and monitoring, the MDF-U500VXC is available through SANYO Biomedical sales representatives

Reply Card #4713

NEW PRODUCTS Hygro-thermometer Omega’s new rotating vane hygro-thermometer anemometer provides highly accurate humidity, air velocity, and temperature measurements in harsh environments via a user-friendly and intuitive interface. The HHF144 measures from 5.0 to 95 per cent RH and measures airflow in environments from -20 to 100°C (-4 to 212°F ).

The product features a temperature sensor in the humidity probe standard, along with a minimum & maximum air speed feature and humidity measurements.

Analog voltage output, communications options and NIST calibration are available.

Applications include manufacturing, lab, computer rooms, environmental control, flow hood monitoring and other applications where precise air flow measurement is required.

able to work with up to 72 user-defined probes providing spot on calibration. The F252 also offers single, differential and alternative measurement modes.

The F252 is capable of measuring temperature ranges to meet ITS90, CVD, EN60751 & IEC751 standards and results are delivered via a LCD backlit display with large numeric, statistical or graphical information. It also comes with USB interface as standard, but optional RS232, IEEE or LAN interfaces are also available.

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Reply Card #4714 F252 AC Bridge ASL has upgraded its range of AC bridges with the launch of the F252 as a successor to the F250.

Due to further advances in technology, ASL has now replaced the F250 with the F252, which is the fastest commercial AC Bridge of this precision class and faster than any DC bridge of similar specification.

It is accurate to within +/-0.01ºC (full range) and resolution of 0.001ºC (0.0001Ω) with a resistance range of between 0 - 400Ω. It is also the first AC Bridge to be launched with ‘smart probe’ capability.

The F252 also comes with two channels as standard, but four and six channel variations are available with each channel

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COMPANYs PRIMARY BUSINESS ACTIVITY 50 Private Industry 51 University/College 52 Hospital/Medical Centre 53 Research Institute/Foundation

56 Financial Management 57 Business/Corporate Development 58 Consultant 59 Lab Technician/Research Assistant 60 Sales/Marketing 61 Regulatory Affairs/Validation 99 Other (Specify): ______________________ 54 Pharmaceutical Co. 55 Government 56 Financial Services 99 Other (Specify): ______________________

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Analysis Instruments Basic Lab Equipment Chemicals/Biochemicals Chromatography – Gas Chromatography – Liquid Filtration, Water Purification LIMS

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Liquid Handling & Sample Prep Microscopes, Optics, Cameras Safety & Hygiene Spectroscopy Testing Systems/Equipment Vacuum Equipment None of the Above

C88 Product Development Stage (check all that apply) A Research/Development B Pilot/Scaleup

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4 Commercialization 5 Bio-energy 6 Nutritional Products

For a quick response please fax: 905-727-4428 or e-mail: circulation@promotive.net APRIL 2010 BIOTECHNOLOGY FOCUS 27

CALENDAR

April 2010 April 5-9 2010 Materials Research Society Spring Meeting Venue: San Francisco, CA Tel: 724-779-3003 Fax: 724-779-8313 Email: info@mrs.org Web: http://www.mrs.org/s_mrs/ index.asp

April 6-7 BioFinance 2010 Venue: Toronto, ON Email: sadolfo@biofinance.ca Web: www.biofinance.ca

April 11-15 Society for Biomolecular Sciences 16th Annual Conference & Exhibition Venue: Phoenix, AZ Tel: 203-743-1336 Fax: 203-748-7557 Email: email@sbsonline.org Web: http://www.sbsonline.org

April 14 12th Annual LifeSciences British Columbia Awards Venue: Vancouver, BC Phone: (604) 602-5261 Email: pyeung@lifesciencesbc.ca Web: www.lifesciencesbc.ca

April 19-21 BIO Intellectual Property Counsels Spring Conference and Committee Meeting Venue: New Orleans, LA Tel: (202) 962-9200 Fax: (202) 488-0650 Email: bblevins@bio.org Web: http://www.bio.org/ ipcc/index.asp

April 24-28 Experimental Biology 2010 Venue: Anaheim, CA Tel: 301-634-7000 Email: gswindle@faseb.org Web: http://www.faseb.org

May 2010 May 3-6 BIO International Convention Venue: Chicago, IL

28 BIOTECHNOLOGY FOCUS APRIL 2010

Tel: (202) 962-655 Email: reg2010@bio.org Web: www.convention.bio.org

May 5-7 RNAi & miRNA World Congress Venue: Boston, MA Tel: +44-1787-3-4958 Email: enquiries@ selectconferences.com Web: http://www. selectconferences.com

Company & Advertiser Index COMPANY

Page

RC

ABIC......................................................... 9......................... 4704 Advitech Inc............................................. 8..................................

Aeterna Zentaris . .................................... 7..................................

Allon Therapeutics Inc.......................... 8, 11...............................

ASL.......................................................... 27.........................4715 Aurora Biomed............................................ 26............................4708

May 6-7

BioFinance....................................................11............................4705

Epigenetics World Congress Venue: Boston, MA Tel: +44-1787-3-4958 Email: enquiries@ selectconferences.com Web: http://www. selectconferences.com

BioTalent Canada.........................................31............................ 4718

May 6-7

Dalton Pharma Services.......................... 10.................................

Genomics Automation Congress Venue: Boston, MA Tel: +44-1787-3-4958 Email: enquiries@ selectconferences.com Web: http://www. selectconferences.com

Dekalb...................................................... 9..................................

May 9-12 21st Canadian Symposium on Catalysis: Catalyzing a Sustainable Future Venue: Banff, AB Tel: (613) 232-6252 Fax: (613) 232-5862 Email: conferences@cheminst.ca Web: http://www.21csc2010.ca

May 10-13 8th Biennial Conference on Monitoring and Measurement of the Environment Venue: Toronto, ON Tel: (416) 235-5906 Email: ray.clement@ontario.ca Web: http://www.enviroanalysis.ca

BIOTECanada..........................................2,6................................

Caledon Labs................................................ 7.............................4703 Cannasat Therapeutics Inc................... 10, 16..............................

Cedarlane Labs............................................ 23............................4707

Eppendorf.................................................... 32............................ 4719 Finesse........................................................... 5.............................4702 Fisher Scientific............................................ 2............................. 4701 GEA Westfalia...............................................19............................ 4717 Genome Canada...................................... 6..................................

Hamilton................................................. 26...............4709, 4710 Immunovaccine Inc................................. 9..................................

IntelGenx Corp........................................ 10.................................

Intrinsik.................................................. 10.................................

Lignol Energy Corporation...................... 10.................................

Lorus Therapeutics Inc............................. 8..................................

Omega.................................................... 27.........................4714 Proton Energy Systems........................... 26.......................44712 Sanofi Pasteur.......................................... 8..................................

Sanyo...................................................... 26.........................4713 SNC-Lavalin............................................. 10.................................

Syrris....................................................... 26.........................4711 Theratechnologies................................... 6..................................

May 11

Trent University....................................... 7 .................................

Newfoundland and Labrador Laboratory Exposition Venue: St. John’s, NL Tel: (519) 579-7598 Email: jhowes@clsassoc.com Web: http://www.clsassoc.com/

Trillium Therapeutics.............................. 11.................................

University Health Network...................... 11.................................

Viterra..................................................... 11.................................

VWR................................................................21............................4706 Warnex Medical Labs................................ 8..................................

YM Bioscience......................................... 10.................................

BioTal

THE LAST WORD

By John Kelly, Ph.D.

Co-operation and collaboration – the key to effective policy management

John Kelly, Ph.D. Vice President, Erie Innovation and Commercialization

Effective policy management should be a primary goal for industry and government alike. Policies should favourably impact business to ensure growth, development and profitability. Policy issues are generally not sector specific, with similarities intersecting many different aspects of life sciences in Ontario.

The life sciences sector in Ontario is diverse, ranging from pharmaceutical and biotechnology to agriculture (including livestock and plants), forestry, food and food processing, bioeconomy and the environment. This diversity can lead to challenges in providing consistent messaging to policy makers, who in turn need to react to business, social and political realities. Individual companies or groups interacting with policy makers tend to have limited influence as their voice is not strong.

There are challenges unique to each group, and challenges that are shared by all involved in life sciences. In the pharmaceutical world, there is the continual competition between branded/novel producing and generic companies. Policies which are set out to protect the intellectual property of the novel company have been found to impact the ability of all companies to attract investment, and in turn, market their product in Ontario and Canada.

But this is not unique to the pharma world. In the crop protection sector, which produces products to protect plants from weeds, diseases, insects and other pests, the same issue rages. Novel producers of one particular chemical face similar issues as do the novel producers of pharmaceuticals. Regulatory and financial challenges are also remarkably similar across these diverse groups.

Similar challenges also exist in the functional food and nutraceutical world. When each group desires to affect policy drivers in Ontario, they do so within narrow guidelines and not with a lot of power.

What about new and emerging companies? Individuals and companies developing new products from innovations created at Ontario universities must contend with developing a business plan and regulatory strategy, finding financing, hiring and appointing a great management team and board of directors, as well as getting their message out to potential consumers of their product.

Regardless of the business, be it animal pharmaceutical or nutraceutical business, the human disease market, the functional food sector or the chemical or construction businesses, they all face similar challenges to develop and commercialize their innovative product.

Life Sciences Ontario (LSO), emerging from The Biotechnology Initiative (TBI), will provide a unified voice for life sciences in Ontario. It has the mandate to develop cross-sectoral connectivity across the province with the vision to provide opportunities for like-minded groups to

30 BIOTECHNOLOGY FOCUS APRIL 2010

act with one voice, contributing to economic development and policy initiatives. This new organization will be inclusive in nature, inviting co-operation and collaboration across many life sciences groups, including regional innovation networks, provincial industry groups, economic and business development groups, as well as established and emerging companies to address issues that are fundamental to the success of the province. This united effort will lead to an enhanced quality of policies and policy development for the sector.

The government of Ontario has requested that industry develop an organization that is inclusive of different components of life sciences, to provide a forum for highly strategic discussions and to address commonalities in policy to strengthen the industry. LSO is well positioned to do this, having executive level representation on the board from across the wide geography of the province who represent pharma, biotech, agriculture, food, and chemistry, from large and established to new and emerging companies. With its strong leadership, LSO will increase the confidence of the government in supporting this sector, leading to trust and goodwill towards life science development.

The sphere of influence of LSO is large, and its ability to interact with the government of Ontario at the highest levels with credibility, power, strength and a good reputation will serve the industry to a great degree. Examples of issues that LSO will address include funding, commercialization, trade and education; important wants and needs identified by the industry.

The Board of LSO is confident that its message will be heard by the government of Ontario and also the government of Canada. By inviting and coordinating groups from across Ontario, the life sciences sector in Ontario will have a united front on the many issues that affect our industry today, which will make this sector more attractive to investment, corporate and plant localization, ultimately enhancing the profitability of life science companies in Ontario. Having a single voice will ensure the delivery of a solid message, with policies and financing in place to support making Ontario a world-class player in life sciences.

Note the author is currently a Director of The Biotechnology Initiative and a proposed Director for Life Sciences Ontario.

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Your decision to hire just got easier Take advantage of BioTalent Canada’s Career Focus wage subsidy When growing your team is key to achieving your business goals, the last question you want to be asking is, “Can we afford a new hire?”

BioTalent Canada’s Career Focus program removes the obstacles to recruitment by providing up to $10,634 toward the salary of a graduate. Hire an eager-to-learn young worker and take advantage of BioTalent Canada’s financial support to integrate them into your operation. Instead of wondering if you can afford to bring on someone new, ask yourself, “Can we afford not to?”

The requirements Employers must be: • A Canadian biotechnology-focused company • Able to provide a newly created full-time job opportunity

Copyright 2010. BioTalent Canada is a registered trademark of BioTalent Canada.

Learn more about the Career Focus program: www.biotalent.ca/wagesubsidies

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Funded by the Government of Canada's Sector Council Program

C012.C4.0104.B © 2010 Eppendorf AG

www.eppendorf.com/advantage Get Eppendorf quality today!

5 year warranty FREE!

40% off second rotor

Performance you can count on!

Eppendorf Multipurpose Centrifuges 5804/R and 5810/R promotion packages Eppendorf centrifuges 5804/R and 5810/R with their renowned quality and reliability offer you cost efficient solutions for your medium to high-throughput applications—now and in the future.

Whether your applications require spinning many tubes at a time or centrifugation of larger volumes at high-speed, these multipurpose centrifuges with their variety of rotors and adapters cover virtually any application in tubes, flasks and microplates.

Choose the right model for your application: � Compact multipurpose models 5804/5804 R— ideal for applications in deepwell plates or for high-speed centrifugation of volumes up to 100 ml. � Versatile models 5810/5810 R—in addition to high-speed centrifugation of larger volumes these workhorses also accommodate large swing-bucket rotors to fulfill all high-capacity needs in tubes and plates.

Product Features and Benefits ��Large rotor selection and speed up to 20,800 x g (14,000 rpm) for a wide range of applications � Quiet operation to benefit your work environment � Low profile for ergonomic loading and unloading of rotors � Soft-touch lid closure for ergonomic lid locking � Maximum placement flexibility due to 120 V power supply � Saves up to 35 user-defined programs Refrigerated versions 5804 R and 5810 R also feature: � Environmentally friendly CFC-free refrigerant � FastTemp function for fast and accurate pre-cooling � Standby cooling keeps set temperature when lid is closed � ECO shut-off engages after 8 hours of nonuse to reduce energy consumption and extend compressor life � Built-in condensation drain to eliminate water accumulation � Patented, dynamic compressor control (DCC) for extended compressor life and energy savings

www.eppendorf.com Þ Email: info@eppendorf.com Þ Application hotline: 516-515-2258 In the U.S.: Eppendorf North America, Inc. 800-645-3050 Þ In Canada: Eppendorf Canada Ltd. 800-263-8715

Reply Card #4719

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