BioMatters Fall 2017 by MichBio

IN THIS ISSUE:

06 TRANSLATING LIFE SCIENCE INNOVATION INTO COMMERCIAL SUCCESS MEDC

08 THE HEART OF BIOMEDICAL INNOVATION UNIVERSITY OF MICHIGAN

18 AFTER THE ELEVATOR PITCH

22 SMARTZONETM BUSINESS ACCELERATORS ANN ARBOR SPARK

FALL 2017

A magazine showcasing Michiganâ&#x20AC;&#x2122;s biosciences industry

COMMERCIALIZING BIOSCiENCES IN MICHIGAN

PURE INNOVATION

O n c e a g a i n , M i c h i g a n i s t h e e p i c e n t e r o f t h e e n t re p re n e u r i a l s p i r i t . Wo r l d - c l a s s i n n o v a t i o n . H i g h Te c h w o r k f o rc e . A b u n d a n t v e n t u re c a p i t a l . R e g u l a t o r y re i n v e n t i o n . A l l c re a t e a n i d e a l c o m b i n a t i o n o f o p p o r t u n i t y, re s o u rc e s a n d p a s s i o n f o r b u s i n e s s r i g h t h e re i n M i c h i g a n .

1.888.565.0052 michiganbusiness.org

PRESIDENT’S MESSAGE Successfully transitioning bioscience discoveries from bench to marketplace is a long and arduous journey, one fraught with great risk and many challenges. This issue of BioMatters spotlights how Michigan, like no other state, has developed a network of entrepreneurial support services, funding and programs to catalyze bioscience and other high-tech company formation and economic growth. Michigan has been serious about spurring biosciences innovation since the creation of the Michigan Life Sciences Corridor in 1999, a $1B over 20 year fund, designed to finance biotechnology, pharmaceutical and life sciences innovation. The subsequent establishment of specified technology parks and business accelerators, otherwise known as SmartZones™ in 2002, added another strong building block to support entrepreneurial ventures and technology commercialization.

“…Michigan, like no other state, has developed a network of entrepreneurial support services, funding and programs to catalyze bioscience and other hightech company formation and economic growth.””

The current MTRAC programs and their Innovation Hubs, along with the business accelerators and wet lab incubators, as featured in our stories, are built off that dual foundation. As a result, Michigan’s biosciences industry has witnessed dramatic growth in companies, employment and revenues over the last 15 years – see the By the Numbers spread. Of course, commercialization begins with ideation and discovery, much of that originating from the world-class research institutions that make up Michigan’s University Research Corridor (URC). As Dr. Britany Affolter-Caine, Interim Executive Director, points out in Viewpoint, the URC’s top ten ranking in federal R&D dollars received (the bulk of which is dedicated to bioscience research), leads to a significant economic impact. The technologies created have spurred a renaissance in company growth and entrepreneurial culture – one need only read the examples highlighted in After the Elevator Pitch. From beginning to end, this BioMatters issue showcases Michigan’s vibrant biosciences cluster and the various resources in place to further the industry’s success. I hope you enjoy learning about this exciting dynamic. Sincerely,

STEPHEN RAPUNDALO, PHD President & CEO, MichBio

BIOMATTERS | FALL 2017

Foley Hoag is MichBIO’s preferred legal counsel for its entrepreneurial members. Our service oﬀerings include:

Foley Hoag’s MichBIO lawyers possess in-depth knowledge frequently sought after by emerging life sciences companies. Our cross-disciplinary team of legal professionals is dedicated to the advancement of MichBIO members at every phase of your company’s life cycle: as you develop your business plan, launch

• Entity formation • Contract drafting and negotiation • Website terms and conditions

commercialize your discoveries.

• Data privacy and security (privacy policies, HIPAA, EU and Big Data) • Corporate governance

appointments set at other times, to review basic details relevant to life sciences start-ups.

• Corporate structure tax issues • Licensing and strategic alliances

services, and substantial deferrals of legal fees

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companies can take advantage of alternative fee arrangements for longer-term engagements.

• FDA and regulatory issues Our attorneys will also attend MichBIO events and give periodic presentations on legal topics of interest.

Contact a member of the FOLEY HOAG MichBIO Team:

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617.832.1275

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MichBio is the biosciences trade association for the state of Michigan. Our goal is to drive the growth of the state’s bio-industry through advocacy, education, and supportive resources.

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SILVER MICHBIO BOARD OFFICERS CHAIRMAN Paul Morris AlixPartners, LLP Global Finance Lead, Enterprise Improvement VICE CHAIRMAN Christopher J. Stein Ferndale Pharma Group, Inc. Executive Vice President & Chief Operating Officer

PRESIDENT AND CEO Stephen Rapundalo, PhD MichBio, President and CEO SECRETARY Vacant TREASURER Sandra Pennell Vericel, Controller

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Tim Colonnese KTM Industries President and CEO

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Nicholas Evans Genesys Health Vice President, Business Development and CDO

Teri Nizzardini, MS, SPHR, SHRM-SCP MPI Research Vice President, Human Resources

Dale Grogan Michigan Accelerator Fund I, LP Managing Director

Edward Pagani, PhD University of Michigan Assoc. Director, Health Technologies, Office of Technology Transfer

Charles Hasemann, PhD Michigan State University Assistant Vice President for Innovation & Economic Development Ken Massey, PhD Wayne State University Senior Director, Venture Development, Technology Commercialization Kevin McLeod Novus Biotechnology Fund 1 General Partner

Stephen Rapundalo, PhD MichBio President and CEO John J.H. Schwarz, MD Family Health Center Physician and Former U.S. Representative Christopher J. Stein Ferndale Pharma Group, Inc. Executive Vice President & Chief Operating Officer

PATRON BioMatters is published twice per year to showcase Michigan’s bioscience industry. Much of the content is submitted by MichBio member companies. Interested in submitting an article or advertising in a future issue? CONTACT KATE OESTERLE AT KATE@MICHBIO.ORG. BIOMATTERS | FALL 2017

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THERE WERE THOSE WHO BELIEVED THE BODY COULD NEVER FIGHT CANCER. NEVER SAY NEVER.

Today, researchers are using immunotherapy treatments to stimulate the bodyâ&#x20AC;&#x2122;s immune system to destroy invading cancer cells. Welcome to the future of medicine. For all of us.

TABLE OF CONTENTS

06 |

Translating Life Science Innovation Into Commercial Success

Michigan Economic Development Corporation

08 |

The Heart of Biomedical Innovation

University of Michigan Medical School

10 |

Moving Advanced Materials Technologies to Market

12 |

MTRAC Innovation Hub for AgBio Celebrates Research Milestones

Michigan State University

14 |

Michigan Biosciences: By the Numbers

16 |

Developing New Technologies to Improve Healthcare and Lives

Wayne State Technology Commercialization

Michigan Technological University

MichBio

18 |

After the Elevator Pitch

Emerging Companies

22 |

SmartZoneâ&#x201E;˘ Accelerator Supports Life Science Startups

Ann Arbor SPARK

24 |

Commercializing a Yeast Platform Technology to Make Therapeutics and Vaccines

27 |

Universities are Key Economic Driver in Life, Medical and Health Sciences Research

BioSavita

Michiganâ&#x20AC;&#x2122;s University Research Corridor

24 WANT TO RECEIVE BIOMATTERS?

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BIOMATTERS | FALL 2017

TRANSLATING LIFE SCIENCE INNOVATION INTO COMMERCIAL SUCCESS POWERING A ROBUST BIO-INDUSTRY PIPELINE BY DENISE GRAVES, UNIVERSITY RELATIONS DIRECTOR, MICHIGAN ECONOMIC DEVELOPMENT CORPORATION

Accelerating the transfer of new technologies from Michigan’s institutions of higher education, hospital systems and non-profit research centers to the private sector is at the heart of the Michigan Translational Research and Commercialization (MTRAC), a statewide program created by the Michigan Economic Development Corporation (MEDC). MTRAC is designed to help researchers advance discoveries and research into the commercial market through designated high-tech innovation hubs. The oversight committee within each Innovation Hub is critical to the program’s success, bringing real-world expertise to the projects by way of venture investment, deep industry knowledge, mentoring and essential business development contacts. That expertise is key in helping the projects focus on the commercial prospects of getting a product to market.

After individual program success at University of Michigan (U-M), Michigan State University (MSU), Wayne State University (WSU) and Michigan Technological University (MTU) in startups, jobs and additional follow-on funding, MTRAC received the Michigan Strategic Fund approval to become a statewide program in April 2016.

MICHBIO | michbio.org

Projects are selected for funding by each oversight committee after going through an RFP cycle. Funding for projects ranges from $20,000 to $200,000, and the companies detailed must provide milestones along with a 1:1 match of awarded funds for one year. Overall program funding and oversight comes from the MEDC, with matching funds from the institutions, and supports four Innovation Hubs in the technology focus areas of Life Sciences at U-M, AgBio at MSU, Applied Advanced Materials at Michigan Tech and Advanced Transportation at U-M. MTRAC was developed and is managed by the MEDC Entrepreneurship and Innovation initiative. It established Michigan as the place to create and grow a business by providing high-tech companies with access to a variety of critical resources, such as funding and expert counsel, from ideation to maturation. ■

MEDC

As of June 2017, the cumulative numbers for the MTRAC program resulted in:

134

PROPOSALS

337

PROJECTS FUNDED

REVIEWED BY THE OVERSIGHT COMMITTEES

STARTUPS

JOBS

LICENSES WITH INDUSTRY

LICENSE OPTIONS WITH INDUSTRY

$72.8M

IN FOLLOW-ON FUNDING

MICHIGANBUSINESS.ORG

BIOMATTERS | FALL 2017

UNIVERSITY OF MICHIGAN

The Heart of Biomedical Innovation

University of Michigan Medical School program has its finger on the pulse of commercializing biomedical and life science innovation. SUBMITTED BY MTRAC INNOVATION HUB FOR LIFE SCIENCES AT UNIVERSITY OF MICHIGAN

For doctors in the clinical setting and biomedical researchers in academic labs, helping patients improve their health is the ultimate goal. Whether it’s an operation, a yearly checkup, or studying the biological pathways of disease, clinicians and biomedical researchers are tireless in their efforts to improve patients’ lives. If they want to create a new device, therapeutic or diagnostic that could have even more of an impact on human health— how can it eventually get to the point of patient impact? What is the commercialization process? This is the dilemma that so many doctors and researchers face, including University of Michigan physiology professor and researcher Jimo Borjigin, PhD, who had a novel idea for a diagnostic technology that would provide fast, precise and easy detection of irregular heart rhythms. The process to put an idea on a path to market is a difficult one, especially for clinicians and researchers who aren’t typically entrepreneurs. But luckily, with the help of the University of Michigan Translational Research and Commercialization (MTRAC) for Life Sciences Program Innovation Hub, part of the university’s Fast Forward Medical Innovation (FFMI) program and supported by the Michigan Economic Development Corporation (MEDC), many biomedical innovators across the State of Michigan are able to get the help they need to navigate the path to commercialization through education and mentorship, funding, and access to other world-class innovation resources. This includes Borjigin, an associate professor in the U-M Department of Molecular and Integrative Physiology and the Department of Neurology, who has utilized the resources of the FFMI/MTRAC program to develop her Electrocardiomatrix (ECM) technology. It’s an IT tool that evaluates electrocardiography signals during a patient’s hospitalization for early and accurate atrial fibrillation detection and stroke prevention. 8

MICHBIO | michbio.org

Borjigin credits the FFMI/MTRAC team’s guidance in helping her team refine the technology, identify collaborators within the medical school and even start clinical trials this year, which she said has been very successful. “We are in the middle of our clinical trials—we have collected data from 51 patients so far and our results have been 100 percent accurate,” Borjigin said. But before receiving MTRAC funding last year from the FFMI team, the physiology professor didn’t have much funding to advance her ECM technology and wasn’t wellversed in the technology development and patenting process, so continuing development on her innovation was difficult. Now, she said she has a clear focus, a utility patent filed, and has the help she needs to navigate the path to market. “Getting physicians’ backing and support has been key to our success,” Borjigin said. “Originally when we were working on our own, we didn’t know the pressing clinical issues that our technology could be used for. Working with MTRAC has been really helpful.” Co-managed by the U-M Medical School’s FFMI program and U-M Office of Technology Transfer, MTRAC is a statewide program that supports translational research projects in life sciences with high commercial potential. “Our partnerships across the U-M campus and the State of Michigan, as well as with the MEDC, are allowing FFMI to serve as an innovation hub and partner to many of the other great universities and health systems throughout the state, making the whole much greater than the simple sum of its parts,” said FFMI Executive Director Kevin Ward, MD. The $4.05 million MTRAC for Life Sciences Innovation Hub was announced in mid-2016 by the MEDC after being approved by the Michigan Strategic Fund. The new statewide hub is an extension of the previous U-M-focused MTRAC program that launched in 2013 with $2.4 million over three years from MEDC to foster innovation and entrepreneurship as a dynamic catalyst for economic growth.

UNIVERSITY OF MICHIGAN

INNOVATION HUB

“The statewide MTRAC for Life Sciences Innovation Hub supports the advancement of translational research and commercialization potential of early stage healthcare-related projects that range from therapeutics and devices to digital health applications,” said Denise Graves, MEDC university relations director. “MTRAC leverages collaboration among industry, the venture capital community, higher education, hospital systems and non-profit research centers, which helps to increase the number of startups, jobs and industry licenses for the State of Michigan.” Now as a statewide hub, MTRAC’s reach extends to institutions like Michigan Tech University, the Henry Ford Health System, Genesys Health System, Western Michigan University, and Michigan State University (MSU). “MTRAC is a great resource for inventors at Michigan universities and non-profit organizations,” said Richard Neubig, MD, PhD, professor and chair of Pharmacology & Toxicology at MSU, and a 2017 MTRAC awardee for a potential novel treatment for scleroderma. “The funding to support development activities is critical, but the education and mentorship on what it takes to ultimately commercialize an invention is also incredibly valuable.”

Before MTRAC got its start at U-M, talented researchers who aimed to impact human health by taking their innovation to market lacked a full suite of resources to accelerate and transition their discoveries onto viable commercialization paths. Without a strong program in place to aid in the process, Brad Martin, PhD, FFMI Senior Director of Commercialization Programs, said U-M produced an average of just one or two biomedical start-up companies a year. But as of April 2016— just three years after its start—MTRAC funded 79 projects, and already helped develop seven start-up companies,

186%

return based on follow-on funding

7 01 2 –

Jimo Borjigin, an associate professor in the University of Michigan Department of Molecular and Integrative Physiology and the Department of Neurology, has utilized the resources of Fast Forward Medical Innovation/Michigan Translational Research and Commercialization (MTRAC) for Life Sciences Program program to develop her Electrocardiomatrix (ECM) technology. It’s an IT tool that evaluates electrocardiography signals during a patient’s hospitalization for early and accurate atrial fibrillation detection and stroke prevention.

4 201

create 14 jobs, secure $12.1 million in follow-on funding, and licensed technology to three Michigan companies. Borjigin’s ECM technology is just one example of the breakthroughs that are advancing thanks to FFMI and MTRAC. Other innovations that will be providing a positive impact on patients in the future include the stimulated raman scattering microscope, a tool created by Dan Orringer, MD, to aid surgeons performing brain surgery in the operating room; and WeCareAdvisor, a web app developed by Helen Kales, MD, that helps care providers manage the behavioral symptoms of dementia. “As a statewide innovation hub, FFMI helps innovators from across Michigan navigate the tough road to biomedical commercialization— support that was not available just a few years ago,” Martin said. “Now, with a strong educational program in place and access to world-renowned mentors, funding streams and top-level resources to enhance the development of innovations, the opportunities for our academic researchers and clinicians to achieve their dreams of impacting human health are vastly improved.” ■

INNOVATION.MEDICINE.UMICH.EDU BIOMATTERS | FALL 2017

MICHIGAN TECHNOLOGICAL UNIVERSITY

Moving Advanced Materials Technologies to Market New Innovation Hub Helps Bridge “Valley of Death” SUBMITTED BY JOHN DIEBEL, COMMERCIALIZATION PROGRAM DIRECTOR, MICHIGAN TECHNOLOGICAL UNIVERSITY

A process of selecting the ‘Most Likely to Succeed’ from among numerous commercial development projects related to Applied Advanced Materials was concluded in late July 2017, at the Michigan Translational Research & Commercialization (MTRAC) Innovation Hub at Michigan Technological University (Michigan Tech) in Houghton, located in the state’s Upper Peninsula. The new Innovation Hub at Michigan Tech was approved by the Michigan Strategic Fund Board in late February 2017, with funding from the 21st Century Jobs Fund. Soon after solicitations for proposals went out statewide to research universities, non-profit research institutes and hospitals. Michigan Tech MTRAC Program Manager John Diebel said, “We were very pleased with an initial response of sixteen Letters of Intent from other universities across the state including Wayne State, University of Michigan, Michigan State, Eastern Michigan and Western Michigan. It is clear there is a lot of interest out there in programs that can drive advanced materials commercialization.”

Three types of high-brightness fluorophores developed by Professor Yoke Khin Yap’s group at MTU in collaboration with his startup StabiLux Biosciences (dba Novolux). StabiLux was awarded a National Science Foundation STTR Phase II program, and plans to commercialize for the flow cytometry market by 2018.

MICHBIO | michbio.org

At the end of a three-stage process the program’s Oversight Committee chose two projects to fund over the next year. The selected projects involve a solid-state battery project proposed by the University of Michigan’s Dr. Travis Thompson and work on a nanowire organic sensor platform by Dr. Guangzhao Mao of Wayne State University.

The selection process is driven by an Oversight Committee consisting of industry experts engaged in material science along with private investment fund managers. “Involvement of the Oversight Committee in project review and coaching is designed to accelerate commercial development of the technology” said Denise Graves who oversees the Innovation Hub program statewide for the Michigan Economic Development Corporation (MEDC).

MICHIGAN TECHNOLOGICAL UNIVERSITY

Biodegradable stent under development at Michigan Tech by Dr. Jaroslaw Drelich (Materials Science and Engineering) and Dr. Jeremy Goldman (Biomedical Engineering) as part of our MTRAC program. Please credit the photo to Jeremy Goldman, Jaroslaw Drelich and Patrick Bowen.

The collective experience of the Oversight Committee at Michigan Tech includes venture capital funds experienced at commercializing early stage university technology. Other committee members represent some of the state’s largest manufacturers of polymer based products, stationary energy storage devices and miniaturized electronic devices.

MEDC’s program investment of $503,890 in award funding at Michigan Tech has returned $6,584,877 in follow-on funding, created 12 jobs, 3 startup companies and 3 technology licenses.

Michigan Tech’s Hub on Applied Advanced Materials has developed a focus on novel materials related projects such as nano materials, laboratory diagnostics, building materials, transportation enabling materials, energy transfer, energy storage or aerospace. Development of equipment that enables such materials or novel uses of conventional material is also within the scope of potential Hub awards.

Diebel added, “one measure of our success is that several of the MTRAC projects have advanced to SBIR/STTR Phase II funding awards over the course of the project. One device we sponsored for Hematocrit testing two years ago is now in a clinical trial in collaboration with a national leader in the blood collection supply chain, while an implant device surface coating technology is undergoing animal testing.”

In the three years since the Applied Advanced Materials MTRAC program began at Michigan Tech it has received a total of 37 proposals and funded 12 projects. They’ve included the surface treatment of titanium orthopedic implants and noise-canceling technology involving a thin film of carbon nanotubes.

Michigan Tech’s next solicitation of commercialization projects related to Applied Advanced Materials will open state wide this winter with a Hub deadline for letters of intent in mid-January of 2018. ■

Years

Proposals

MTU.EDU

Projects Funded

For more information contact Commercialization Program Manager John Diebel ( jfdiebel@mtu.edu) or go to http://www.mtu.edu/research/administration/iie/ campus-inventors/mtrac/

BIOMATTERS | FALL 2017

MICHIGAN STATE UNIVERSITY

MTRAC Innovation Hub for AgBio Celebrates Research Milestones

MEDC partnership advances statewide AgBio technologies SUBMITTED BY MICHIGAN STATE UNIVERSITY INNOVATION HUB FOR AGBIO

Jointly funded by Michigan State University (MSU) and the Michigan Strategic Fund, through the Michigan Economic Development Corporation (MEDC) Entrepreneur and Innovation Initiative, MSU’s Translational Research and Commercialization (MTRAC) Innovation Hub for AgBio celebrates several milestones this year. A total of $2.2 million funded various AgBio projects, which then attracted more than 20 times that amount in additional follow-on development funding, and the Program created double-digit jobs. The MTRAC Program at MSU provides a much-needed resource to help researchers across Michigan move their ideas to market. The early success of the initial MTRAC Program at MSU (in which only MSU researchers could participate) enabled MSU to be awarded as the statewide MTRAC Innovation Hub for AgBio. Now, researchers from all of Michigan’s higher education institutions, non-profit research centers, and hospital systems can apply. As of May 2017, these programs resulted in the creation of three startup projects, 11 jobs, and eight technology licenses. Work done on projects under MTRAC at MSU enabled $49.7 million in additional follow-on development funding largely from venture capital, foundation support, and other awards. Beginning in March 2014, the MSU MTRAC Program Oversight Committee, comprised mainly of AgBio investors and industry representatives reviewed 87 project proposals, awarding 40 of them in 36 months. The Oversight Committee is responsible for reviewing, critiquing and funding submitted proposals, and providing critical ongoing project mentoring.

MICHBIO | michbio.org

Supported projects focus on cutting-edge technology developments related to AgBio, which includes bio-derived/ bio-based materials and companion veterinary medicine, with commercialization potential based on private sector interest. Ideal MTRAC projects are innovations with the potential to create superior value-added products and materials resulting in startups, jobs or industry licenses for the state. MTRAC is located in the MSU Innovation Center, where technology transfer, startup support and a portfolio of dedicated business and community partnerships combine to bring ideas to the marketplace. “We receive applications from around the state, and are delighted with the breadth and depth of content that this series of awardees represents,” said Karen Studer-Rabeler, Commercialization Program Director for the MTRAC Innovation Hub for AgBio at MSU. “From safer pesticide application and protection of bees to drought tolerant crops and chemical synthesis from bio-oil, each of these projects provide a novel approach to solving AgBio challenges.” “Funding programs like MSU’s AgBio MTRAC Innovation Hub speaks to the wide range of expertise and knowledge in research across the state, “ said Denise Graves, University Relations Director for the MEDC.

“MTRAC is doing exactly what is was intended to do by accelerating technology from Michigan’s institutions of higher education, hospital systems and non-profit research centers, into startups, jobs and licenses for the state of Michigan.”

MICHIGAN STATE UNIVERSITY

A sample of AgBio awards selected to help make the technology broadly available for consumer use include:

MTRAC

INNOVATION

DR. GEMMA REGUERA

drought-tolerance technologies, the Commercialization of Microbial XERICO technology has been shown Electrochemical Reactors (MERs) and the to enhance drought-resistance of both Market Product Biopropanediol monocot and dicot crops without inhibiting growth during early plant Dr. Reguera’s most recent award development. The MTRAC award Lorem ipsum dolor sit amet, consectetuer adipiscing elit, sed diam nonummy supports the scale-up ofnibh hereuismod Microbial enables functional of the tincidunt ut laoreet dolore magna aliquamdemonstration erat volutpat. Ut wisi enim ad minim veniam, quis nostrud exercitechnology tation ullamcorper suscipit lobortis Electrochemical Reactor (MER) genetic in corn. nisl ut aliquip ex ea commodo consequat. Duis autem vel eum iriure dolor in technology to produce bio-derived hendrerit in vulputate velit esse molestie consequat, vel illum dolore eu feugiat nulla facilisis 1,3-PDO from crude glycerin. Thisat vero eros et accumsan et iusto odio dignissim qui blandit praesent luptatum zzril delenit augue duis dolore te feugait nulla facilisi. technology can be integrated with any DR. HEREK CLACK Lorem ipsum dolor sit amet, cons ectetuer adipiscing elit, sed diam nonummy industrial biodiesel plant producing Development and Testing of a Prototype nibh euismod tincidunt ut laoreet dolore magna aliquam erat volutpat. Ut wisi veniam, quis nostrud exerci tation Plasma ullamcorper suscipit glycerin as a byproduct enim and ad theminim current Non-Thermal Device tolobortis Prevent nisl ut aliquip ex ea commodo consequat. worldwide oversupply of crude glycerin Airborneadipiscing Transmission of Infectious Lorem ipsum dolor sit amet, consectetuer elit, sed diam nonummy nibhfor euismod tincidunt ut laoreet dolore magna aliquam volutpat. Ut wisi provides the ideal market utilization Diseases to and fromerat Livestock enim ad minim veniam, quis nostrud exerci tation ullamcorper suscipit lobortis and commercialization of this nisl ut aliquip ex ea commodo consequat. Duis autem vel eum iriure dolor in technology. Dr. Reguerahendrerit and herinteam Clack, of the vel University vulputate velit esse Dr. molestie consequat, illum doloreofeu feugiat nulla facilisis at vero et iustois odio dignissim blandit have plans to expand the application of eros et accumsan Michigan, awarded toqui build and test praesent luptatum zzril delenit augue duis dolore te feugait nulla facilisi. the electrochemical reactors to utilize demonstration non-thermal plasma Lorem ipsum dolor sit amet, consa ectetuer adipiscing elit, sed diam nonummy alternative feedstocks and airdolore stream disinfection device. Ut Dr.wisi Clack nibhproduce euismod tincidunt ut laoreet magna aliquam erat volutpat. enim ad veniam, quis nostrud exerci tation ullamcorper suscipit lobortis other bio-derived chemicals orminim valueproposes his technology will reduce nisl ut aliquip ex ea commodo consequat. added products. the risk adipiscing of airborne disease outbreak Lorem ipsum dolor sit amet, consectetuer elit, sed diam nonummy nibh euismod tincidunt ut laoreet magnafarms aliquamby erat volutpat. Ut wisi ondolore livestock disinfecting enim ad minim veniam, quis nostrud exerci tation ullamcorper suscipit lobortis ventilated air using Non-Thermal nisl ut aliquip ex ea commodo consequat. Duis autem vel eum iriure dolor in DR. KYUNG-HWAN HAN (NTP). Unlike HEPA filters hendrerit in vulputate velit esse Plasma molestie consequat, vel illumthe dolore eu feugiat nulla facilisis et iustoused odio dignissim Improvement of Commercial Valueat vero eros et accumsan currently to filter qui air blandit in swine and praesent luptatum zzril delenit augue duis dolore te feugait nulla facilisi. and Marketability of XERICO Drought poultry barns, NTPs do not require Tolerance Technology expensive replacement filters or airtight structures, making installation of the Drought has been an ongoing concern in units simple and less costly over time. agriculture in recent years and Dr. Han Losses from porcine reproductive and seeks to reduce crop/yield loss due to respiratory syndrome (PRRS) alone drought through commercialization of cost the U.S. pork industry more than $1 his XERICO technology. Unlike other billion per year. ■

In April 2016, the Michigan Strategic Fund approved $3.5 million in funding to support the acceleration of technology transfer, creating the MTRAC Innovation Hub System. With a focus on agriculture biology, the MSU MTRAC Program was granted $1 million of that funding, matched by $1.27 million from MSU, designating the university as the first Innovation Hub in the state. Subsequently, Innovation Hubs were designated at Michigan Tech University targeting advanced materials and the University of Michigan focusing on human life science and advanced transportation. Researchers interested in translating their AgBio technologies can learn more at the MTRAC Innovation Hub for AgBio at MSU website. Proposal due dates in 2017 are September 11 and December 7 for starter funding, and November 7 for full program funding.

HUB FOR AGBIO

@MICHIGAN STATE UNIVERSITY

$2 MILLION awarded

$50

MILLION Follow-on funding including grants and VCs

87 PROPOSALS 40 AWARDS

Technology Licenses to Industry

NEW

MI JOBS

40+ JOBS CREATED OVERALL

Awards from March 2014-May 2017

INNOVATIONCENTER.MSU.EDU

BIOMATTERS | FALL 2017

MICHIGAN BIOSCIENCES:

BY THE NUMBERS

BIO-INDUSTRY GROWTH IN MICHIGAN SOURCE: TECONOMY/BIO THE VALUE OF BIOSCIENCE INNOVATION IN GROWING JOBS AND IMPROVING THE QUALITY OF LIFE, 2016.

32%

Michigan has had a strong legacy in bioscience innovation. Today, our worldclass research universities, health systems and bioscience companies continue to advance breakthroughs and technologies through commercialization and market success. The state’s biosciences industry has witnessed tremendous growth over the last 15 years across all sectors. Michigan’s entrepreneurial ventures have found a place to flourish amidst an ecosystem driven by world-class R&D, CRO/CMO organizations, top-notch universities, supportive incubators and accelerators program, technical assistance, talent and strategic investments in venture capital and infrastructure.

MICHIGAN’S BIOSCIENCES INDUSTRY IS THRIVING – THE NUMBERS AND AVAILABLE RESOURCES SAY IT ALL.

80%

BIOSCIENCE ACADEMIC R&D FUNDING SOURCE: NATIONAL CENTER FOR SCIENCE AND ENGINEERING STATISTICS

$1,300,000

46%

$1,200,000 $1,100,000 $1,000,000

BIOSCIENCES INDUSTRY DISTRIBUTION IN MICHIGAN

$900,000 $800,000 $700,000 2004

2006

2008

2010

2012

2014

BIOSCIENCE VENTURE CAPITAL RAISED ($M) SOURCE: TECONOMY/BIO THE VALUE OF BIOSCIENCE INNOVATION IN GROWING JOBS AND IMPROVING THE QUALITY OF LIFE, 2016.

$700.0 $600.0

148%

$500.0 $400.0 $300.0 $200.0 $100.0 $0.0 2002-2007 2004-2009 2009-2013 2012-2015

MICHBIO | michbio.org

MICHBIO

BUSINESS ACCELERATORS & INCUBATORS IN MICHIGAN Business Incubator Accelerator

Wet-Lab Space

SMARTZONES (SZ) Adrian/Tecumseh SZ (Lenawee Now) Ann Arbor/Ypsilanti SZ (Ann Arbor SPARK) Automation Alley SZ Battle Creek Aviation & E-Learning SZ (Battle Creek Unlimited) Grand Rapids SZ (Start Garden) Holland SZ (Lakeshore Advantage) Jackson Technology Park SZ Lansing Regional SZ (LEAP) Marquette SZ (Innovate Marquette) Michigan Tech Enterprise SZ (MTEC) Midland SZ (Midland Tomorrow) Mount Pleasant SZ (CMU Research Corp.) Muskegon Lakeshore (Muskegon Innovation Hub) Pinnacle Aeropark SZ Rochester Hills Certified Technology Park (OU Inc) Sault Ste. Marie SZ (SSMart) St. Clair EDA (Port Huron) Sterling Heights SZ (Macomb-OU INCubator) Kalamazoo SZ (WMed Innovation Center) Woodward Technology Corridor SZ (TechTown)

TECHNOLOGY TRANSFER IN MICHIGAN UNIVERSITY Central Michigan University – Office of Research & Graduate Studies Eastern Michigan University – Technology Transfer Office

ü ü ü

Grand Valley State University – Technology Commercialization Center Lake Superior State University – Office of Intellectual Property & Economic Development Michigan Technological University – Office of Innovation & Industry Engagement

ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü ü

Michigan State University – MSU Technologies

Oakland University – The Research Office University of Michigan – Office of Technology Transfer

ü ü ü ü

Wayne State University – Technology Commercialization Western Michigan University – Technology & Innovation Advancement

HEALTH SYSTEMS Beaumont Health – Commercialization Center Henry Ford Health – Innovation Institute Spectrum Health – Spectrum Innovations

ü ü

STARTUP & COMPANY GROWTH PROGRAMS IDEA STAGE Advance Grant Fund (Early Stage Proof of Concept)

ACADEMIC/CLINICAL INSTITUTIONS Blackstone Launchpad - University of Michigan Desai Accelerator - University of Michigan Henry Ford Health Innovation Institute LTU Collaboratory - Lawrence Technological University Spartan Innovations - Michigan State University Spectrum Health Innovations TechArb - University of Michigan Venture Accelerator - University of Michigan

ü ü ü

Michigan Translation Research & Commercialization (MTRAC)

•

Innovation Hubs – AgBio (Michigan State University), Advanced Materials (Michigan Tech) and Life Sciences (University of Michigan)

•

Wayne State University (institutional only)

ü ü ü ü

ü ü ü

Build Institute East Lansing Technology Incubator Center EO Accelerator Ferris Wheel Innovation Center

MI Research Institute

Techstars Mobility The Hatch

First Capital Fund

MI Pre-Seed Fund 2.0 Technologies Transfer Talent Network (T3N) GROWTH STAGE

ü ü ü

MI Life Sciences Innovation Center

Startology

Federal SBIR/STTR Support

Michigan Emerging Technologies Fund (ETF)

ü ü ü ü ü

MI-HQ

Next Energy

Business Accelerator Fund (BAF)

First Customer Program (FCP)

PRIVATE ACRE Ag-Tech Business Incubator

START-UP STAGE

Detroit DTx Accelerator Program Michigan Corporate Relations Network (MCRN) Michigan Small Development Center (SBDC)

ü ü ü ü BIOMATTERS | FALL 2017

WAYNE STATE UNIVERSITY

Developing New Technologies to Improve Healthcare and Lives

SUBMITTED BY JULIE O’CONNOR, MBA AND SCOTT OLSON, MBA – WAYNE STATE TECHNOLOGY COMMERCIALIZATION

What if…a doctor could peer easily and quickly into the brain of a newborn, to make sure there was no bleeding caused by birth trauma? Technology developed at Wayne State University (WSU) by Mohammad Avanaki, PhD, assistant professor of Biomedical Engineering, is designed to do just that. Using a technique called photoacoustic imaging, laser light is reflected off blood cells in the brain of a premature infant to create an acoustic sound that can be picked up and interpreted. This method is safer and more easily accessible than a MRI or PET, and allows the newborn to remain in an incubator. The probe is based on a novel optical fiber-based illumination scheme coupled with a small hand-held curved array ultrasound transducer, along with a data acquisition system that was also developed at WSU. What if…a medical team responding to a patient’s heart stopping could simultaneously protect the brain against injury when circulation is restarted? A medical device developed at Wayne State by Maik Huttemann, PhD, associate professor of Molecular Medicine and Genetics; Thomas Sanderson, PhD, associate professor of Emergency Medicine; and Christian Reynolds, PhD, a medical student in Anatomy and Cell Biology at Wayne State University, uses a specific wavelength of light to do just that. Initially, the project was catalyzed by WSU’s Technology Development Incubator (TDI) from 2013 to 2015 and the Innovation Fellows Program to pivot the technology from the bench towards a commercial product. Additional funding from Wayne State’s Michigan Translational Research and Commercialization (MTRAC) program in 2016 was leveraged to expand validation studies and build commercialization momentum. The non-invasive device, called NeuroLUX, is currently being tested in large animals for effectiveness. The device could have a long-term impact on humans by reducing mortality and disability rates among patients suffering from cardiac arrest or stroke, and will

MICHBIO | michbio.org

be a major paradigm shift in the treatment of ischemia/ reperfusion injury. It could also have an impact on health care costs by reducing the duration of hospitalization and post-event treatment costs. What if…the camera used in a minimally invasive surgery could automatically follow the surgeon’s movements? Abhilash Pandya, PhD, associate professor of Electrical and Computer Engineering, at Wayne State University is creating an autonomous camera system to do just that. Again, funding from the MTRAC program in 2016 enabled the team to complete an advanced prototype and is currently conducting user validation. The benefits of this system include reduced time in surgery, decreased burden on the surgeon, and improved views of the surgical site, all of which lead to safer and quicker surgeries and reduced operating room costs. The technology has caught the attention of surgical robot companies and laparoscopic device manufacturers. These teams of research investigators have taken advantage of Wayne State University’s commercialization resources, coordinated through the Office of Technology Commercialization.

The Office of Technology Commercialization provides high level, quality assistance and services to Wayne State researchers to help deliver next generation technologies for the benefit of society worldwide. One of the most notable of these was the development of a gene therapy to restore vision in patients suffering from blindness caused by retinitis pigmentosa, based on research by Zhuo-Hua Pan, PhD, professor of Ophthalmology and Anatomy/Cell Biology. The technology was spun out into a startup company named RetroSense Therapeutics, that was acquired in 2016 by Allergan in a $60 million deal.

WAYNE STATE UNIVERSITY

A user remotely manipulates the tools (lower two tools on left) for of the da Vinci medical robot at Wayne State University. The system developed automatically moves the camera arm (upper tool) to always keep the tools in the field of view and at appropriate view angles and zoom levels.

Wayne State’s MTRAC program is focused on medical devices (including diagnostics), biomaterials (e.g., drug delivery technologies, imaging agents), and healthcare information technology. It also offers a Technology Development Incubator (TDI) program that accelerates the feasibility studies necessary for licensing, industry partnerships and startup opportunities. The TDI program supports inventors across all technologies. On the talent front, the WSU Innovation Fellows Program is designed to cultivate the next generation of chief scientific officers and entrepreneurial scientists for local high-tech industry. The program is part of the WSU ERA (Expertise, Resources and Awareness) initiative supported by the New Economy Initiative for Southeast Michigan. Since 2013, 16 fellows have completed the program and five have transitioned into career paths in the biotech industry. A Mentors-in-Residence program employs experienced entrepreneurs with specialized industry and venture expertise to assist the faculty and Technology Commercialization in the creation of high growth potential start-ups.

To educate inventors, Wayne State’s Technology Commercialization office sponsors a “Conversations on Commercialization” series, aimed to spark insightful discussions on a variety of topics related to entrepreneurship, research and commercialization. Guest speakers with extensive entrepreneurial experience are invited to lead the discussions and share some of their wisdom related to bringing innovative technologies to market. Finally, Wayne State’s Technology Commercialization office manages all aspects of the technology transfer process including the encouragement, assessment, intellectual property protection and licensing of inventions; the postlicensing oversight of agreement compliance; distribution of royalties and fees; and record keeping for all aspects of WSU intellectual property technology transfer. In addition, they are engaged in entrepreneurship training and local economic development and interfaces with TechTown, Wayne State’s incubator, supporting startup companies founded on Wayne State technologies. ■

RESEARCH.WAYNE.EDU/TECHTRANSFER

BIOMATTERS | FALL 2017

AFTER THE

ELEVATOR PITCH With U.S. operations based in Ann Arbor, MI, Zomedica is an animal health company creating products for companion animals—dogs, cats, and horses—by focusing on the unmet needs of clinical veterinarians. The company is developing a portfolio to include diagnostics/devices, innovative drugs, and drug-delivery technologies. Veterinary medicine is unique compared to human medicine: •

Veterinarians: Serve as clinician and pharmacist;

•

Patients: Multiple species of variable sizes;

•

Pharmacies: Rely heavily on approved human drugs used off-label or compounded drugs not formulated or proven safe and effective for animals;

•

Payers: Rare for third-party payers to subsidize cost of care.

Zomedica is currently working with Celsee Diagnostics to test the feasibility of their liquid biopsy technology for

veterinary application as a canine cancer diagnostic—a blood test that could indicate a cancer diagnosis without the need for an invasive tissue biopsy and expensive imaging. To expand its diagnostic pipeline, Zomedica is actively looking to collaborations, in-licensing, and other strategic relationships involving translational technologies appropriate for veterinary medicine. In addition, the company is developing a therapeutic pipeline of FDA Center for Veterinary Medicine (FDA CVM) approved drugs. Disclosed products include ZM-007, ZM-006, ZM-011 and ZM-012. By taking these speciesspecific formulations through the rigorous FDA CVM approval process, Zomedica will validate them as safe and effective for animal use. Co-founded in 2015 by CEO Gerald Solensky Jr. and COO and Vice President of Product Development Stephanie Morley, DVM, Zomedica listed on the TSX Venture Exchange in 2016 with plans to cross list on the NYSE American in 2017. ZOMEDICA.COM

MICHBIO | michbio.org

Michigan continues to be a leader in advancing biosciences research and commercialization, thanks to its rich pipeline of intellectual property. A whole new crop of startups are germinating in the state, which is good news for the regional cluster of established companies that are focused on innovation in therapeutics, medical devices, healthcare technologies, clinical diagnostics and agri-/industrial biotechnology. Renewal is crucial to sustaining and growing an innovation cluster. All the way around, Michigan bioscience businesses are truly improving the quality of life for patients and consumers.

Strata Oncology, Inc., an Ann Arbor, MI-based precision oncology company, is dedicated to expanding patient access to tumor sequencing and precision medicine trials dramatically, and accelerating the approval of breakthrough cancer medicines. Many pharmaceutical companies are developing drugs that act against specific genetic mutations known to cause or drive cancer, and they need to find patients with those specific mutations. Since tumor sequencing is not routinely reimbursed by insurance, most cancer patients never know if they are eligible for these kinds of clinical trials. This creates a catch-22 situation, where patients miss the chance to get potentially life-saving drugs, and pharmaceutical companies spend years looking for the few patients who do get tested. Through the Strata Trial, a nationwide observational study, Strata Oncology is addressing this situation by providing tumor sequencing to 100,000 eligible advanced cancer

patients at no cost, and proactively matches patients to a network of clinical sites aligned best-in-class drug therapy trials. Testing is done at Strata Oncologyâ&#x20AC;&#x2122;s CLIA-certified laboratory in Ann Arbor, Michigan. The company is selecting the most promisingÂ precision medicine clinical trials and bringing together a collaborative network of leading cancer hospitals to accelerate precision medicine for cancer patients. Strata Oncology was co-founded by CEO Dan Rhodes, PhD, Scott Tomlins, MD, PhD (pathologist at University of Michigan) and Keith Flaherty, MD (oncologist at Harvard Medical School and Mass General Hospital). Backed by $12 million fromÂ Series A funding by Arboretum Ventures and Baird Capital, and a strategic partnership with Thermo Fisher Scientific, the startup has recently entered into partnerships with several pharmaceutical companies and health care systems around the country.

STRATAONCOLOGY.COM

BIOMATTERS | FALL 2017

AFTER THE ELEVATOR SPEECH

ONL Therapeutics (ONL) is an Ann Arbor, Michigan-based biopharmaceutical company committed to protecting and improving the vision of patients with a range of retinal disease and conditions. By advancing a breakthrough technology designed to prevent the death of key retinal cells caused by the activation of the Fas pathway, the company is pioneering an entirely new approach to preserving sight. It is the first and only company focused on preventing Fas-mediated death of key retinal cells, which is a root cause of vision loss, a leading cause of blindness and a completely unaddressed medical need. Based on its industry-leading expertise in vision protection, ONL is developing first-in-class treatments for serious, vision-threatening retinal diseases and conditions. Preclinical in vivo data, along with a growing body of literature, support potential application of the company’s technology platform in retinal detachment, age-related macular degeneration, glaucoma and non-infectious uveitis, among other chronic retinal diseases.

Advanced Interactive Response Systems (AIRS) is a woman-founded and -owned Michigan company focused on respiratory care solutions. The use of oxygen tanks, bulk systems, concentrators and other respiratory equipment is increasing due to an aging population. AIRS’ digital health systems attempt to address leaks, blockage, power outage, mechanical failures, depletion and unmonitored oxygen supply, and other issues. The company’s innovative products are beneficial to these patients in all settings, including hospitals, long-term care facilities and home care situations, and are designed to improve the quality of care and life for oxygen users. AIRS has developed patent protected remote monitoring systems for any oxygen source. The Oxygen Flow Monitor is a remote monitoring system which tracks the flow and oxygen concentration. AIRS systems are portable and can transmit information such as alarm status, flow and concentration data in conjunction with the AIRS app. AIRS

ONL’s lead therapeutic candidate, ONL1204, is a first-inclass small peptide Fas inhibitor designed to protect the retina from cell death via both direct and inflammatory signaling in a range of retinal diseases. ONL1204 is initially being developed for the treatment of retinal detachment, a condition for which the company has been granted orphan drug designation by the FDA. Scientific literature also demonstrates that Fas signaling is relevant to AMD and glaucoma and ONL is exploring these indications with additional preclinical research activities. The company possesses a strong and wide-ranging intellectual property portfolio around both the Fas pathway and composition of its drug candidates, as well as strong management, including serial entrepreneur CEO John Freshley, and expert advisory teams with decades of experience in drug development and retinal disease.

ONLTHERAPEUTICS.COM

digital health products are uniquely designed to be reliable and user-friendly, with a focus on patient safety and wellbeing. AIRS products continuously monitor oxygen supply systems and alerts the user and caregivers of any issues. AIRS is developing consumable and digital health products too. The first product AIRS will offer is an innovative design for a humidified nasal cannula. This disposable nasal cannula provides humidified oxygen to the user, which can replace the tubing currently available. The Humidified Nasal Cannula is meant for single patient use and is disposable. The AIRS Humidified Nasal Cannula eliminates the need for a humidification system, which often can harbor bacteria. Moreover, it provides a clean and portable solution with connectors that secure to the oxygen source and help prevent disconnection. Plans are to launch the Humidified Nasal Cannula in fall 2017, and the AIRS Oxygen Flow Monitor in early 2018. OXYGENALARMS.COM

MICHBIO | michbio.org

IndividuALLytics™ combines the power of “All” (population communities) with power of over time “Individual” data to better engage patients and care teams in best personalized pharmaceutical and nonpharmaceutical treatment for chronic disease and mental health disorders. Working out of Michigan Life Sciences Innovation Center (MLSIC) in Plymouth, MI, the company has embarked on a big mission with leaders in Alzheimer’s disease and dementia to improve patient and family care giver outcomes on an individual basis that scales to help many millions of patients. The new paradigm and supporting technology, Digital Health Operating System 3.0™, has the potential of creating multi-billion dollar market opportunities that truly cuts chronic care costs by over 20%, while improving health outcomes and quality of life for nearly every patient within existing health systems. Unique cloud software integrates the treatment best practices with N of 1 predictive analytics, enhanced productivity of the professional care teams, and better communication with the patient’s family care team.

DataSpeaks, Inc., is a software intellectual property out-licensing and development firm that offers the patent-protected Science of Individuality Measurement Algorithm (SIMA) to accelerate the promise of precision medicine and precision drug development. SIMA, a product of serendipity, offers a positive black swan opportunity – a highly improbable and unpredicted advancement – in software engineering. SIMA enables “the science of individuality” as presented by Eric Topol, MD in his book, The Creative Destruction of Medicine. Genome sequencing advances have vastly outpaced methods to phenotype disorders and treatment responses. Imprecise and heterogeneous phenotypes such as hypertension, adult onset diabetes, clinical depression, and autism limit the value of precise genotypes. SIMA improves precision by computing Precision Quantitative Diagnostic Phenotypes that are objective, reliable, mechanism-specific, and actionable. SIMA also enables Precision Randomized Controlled Trial designs. These provide person-specific and mechanism revealing Precision Quantitative Treatment Response Phenotypes that (i) are made reliable with many

In addition, IndividuALLytics™ provides partners with leading full-service digital health consulting, science, and software accelerators in the areas of: Behavioral Science, Individual Science, Outcomes and Predictive Analytics, Psycho-Social Interaction Science, Strategic Marketing & Business Development with Multi-Channel Communication Expertise, Digital Health/Software Application Consulting, and Study Design. Companies like Johnson & Johnson, Kaiser-Permanente, GSK, Pfizer, Abbot, along with many Blue Cross and Blue Shields organizations, and others, have been helped by IndividuALLytics™ experts. IndividuALLytics™ is looking for strategic partners and collaborative funding partners to complete a proof of concept and validation study. Collaborators like Alzcare – a leading AD/Dementia care organization, FitBit – a leading wearable health data technology company, and SRI Bioscience – a digital biomarker innovator, have already joined the effort. INDIVIDUALLYTICS.COM

repeated measurements, (ii) are valid because of withinperson randomization of doses over time, (iii) provide comprehensive, integrated safety and effectiveness evaluations, (iv) are detailed as for benefit and harm as nonlinear functions of dose, response variable level, delay and persistence of treatment effect. SIMA’s phenotyping capabilities are limited primarily to chronic disorders that account for 85% of annual health care expenditures of $3 trillion in the United States alone. SIMA increases the value of time ordered data provided by wearables, monitoring and dispensing devices, distributed sensors, functional brain imaging, etc. SIMA also increases the capabilities and value of software and apps as for genomics, statistical and network analyses, mathematical modeling, systems science, and the Internet of Things. DataSpeaks seeks assistance to commercialize SIMA primarily by intellectual property out-licensing. DATASPEAKS.COM BIOMATTERS | FALL 2017

SMARTZONE ACCELERATOR ANTHRAX VACCINE ™

SUPPORTS LIFE SCIENCE STARTUPS Entrepreneurial services program offers incubator network, education, talent support, and grants. BY BILL MAYER, VICE PRESIDENT OF ENTREPRENEURIAL SERVICES, ANN ARBOR SPARK

When an individual or founding team is inspired to take their innovative idea and run with it, Ann Arbor SPARK’s Entrepreneurial Services team is there to help every step of the way.

MICHBIO | michbio.org

Ann Arbor SPARK is an economic development organization focused on growing the Ann Arbor region’s economy through supporting business acceleration, attraction, and retention. SPARK is a great resource for innovative technology startups with a strong founding team, product in market, and ability to scale. SPARK’s Entrepreneurial Support Services (ESS) Program is supported through a contract with the Ann Arbor-Ypsilanti SmartZone™, a tax-increment funding (TIF) district. The SmartZone™ is one of twenty now that make up a statewide network established by the State of Michigan in 2002 to serve as business

accelerators for new company growth. Oversight of the Ann Arbor-Ypsilanti SmartZone™ and ESS Program is provided by an independent Local Development Finance Authority (LDFA) with representation from both the City of Ann Arbor and City of Ypsilanti, as well as the State of Michigan through the Michigan Economic Development Corporation (MEDC). A variety of services are provided by SPARK to the Ann Arbor region’s entrepreneurial ecosystem: SPARK Regional Incubator Network, entrepreneurial education/ training events and workshops, talent programs, technology and

ANN ARBOR SPARK

business feasibility assessment, investor preparation and introductions, market analysis and product development support, mentoring and business acceleration grants. The Ann Arbor SPARK Regional Incubator Network consists of two business incubators: SPARK Central Innovation Center (SCIC) located in Ann Arbor and SPARK East Business Incubator located in Ypsilanti, Michigan. Both incubators are fantastic places to work in a lively environment surrounded by fellow startup companies. Both incubators also hold events throughout the week, focusing on education, networking, talent, and supporting entrepreneurship. For example AlertWatch, a company that develops patient monitoring software for hospitals, has been a fourth floor tenant of SCIC for just over a year. The company has found the downtown Ann Arbor location to be a great fit for attracting its growing team. SPARK’s Entrepreneur Boot Camp is a great program to help identify critical issues within the business model. The program focuses on customer discovery, investment pitches, and other key concerns facing startup companies. Attendees are supported by a Boot Camp teaching team, consisting of experienced entrepreneurs and executives. In addition to this support, mentors help on specific issues identified through intensive customer discovery. ArborThotics, a company connecting healthcare providers with 3D printing to reduce cost, is one of the most recent graduates of the Boot Camp program. Dom Parise, CEO and founder of ArborThotics, explains, “The best part of Boot Camp was that we got connected to a great network of advisors. We had a lot of help in learning what to ask for in customer discovery and had good feedback to help craft our pitch.”

Access to industry experts is important for navigating the entrepreneurial ecosystem and launching a successful venture. SPARK offers a weekly workshop, SPARK.ed, to help early stage companies scale their business.

SPARK also offers a variety of talent programs, including an Entrepreneur-In-Residence (EIR) program and an Intern Matching Funds program. The EIR program’s purpose is to attract and retain valuable individuals in Ann Arbor. As part of the program, these C-level individuals provide advice and guidance to startup companies. Qure, a nutritional diagnostic company that assists cancer patients with maintaining a proper diet during treatment worked with David Olson, a serial company leader in Ann Arbor, to retain David in Ann Arbor while adding the value of an experienced company leader to their team. With a similar “attract and retain” goal in mind, SPARK’s Intern Matching Funds Program helps startups employ college students by matching every dollar that a startup puts towards an intern. The program allows the company to offer a competitive wage and compete in hiring high-value interns. The Business Accelerator Grant Program is a funding opportunity for startups to achieve business growth. This program gives startups access to financial resources to address critical path commercialization needs by leveraging consultants, service providers, and subject matter experts. For example companies such as Genomenon, Millendo Therapeutics and ONL Therapeutics have used grants to fund regulatory work, intellectual property development, marketing strategy, and collateral development, including web presence optimization. Historically, Ann Arbor SPARK has been a consistent supporter of life science businesses of every stage. This support is expected to increase in the coming years as Ann Arbor’s ecosystem continues to develop and mature. ■

ANNARBORUSA.ORG

At each workshop, an accomplished industry expert discusses tips, tools and best practices for scaling a business. After each event there are office hours where attendees are able to interact with the speaker, enhancing the individual value of these events.

Top Photo: Lower level of SPARK Central Innovation Center located in downtown Ann Arbor. Bottom Photo: SPARK.ed events are weekly workshops at SPARK Central Innovation Center focused on helping early stage startups scale their business.

BIOMATTERS | FALL 2017

COMMERCIALIZING A YEAST PLATFORM TECHNOLOGY TO MAKE THERAPEUTICS AND VACCINES BY NALINI MOTWANI, PHD AND SAVITA NIKAM, PHD, BIOSAVITA

BioSavita is a revenue stage biotechnology company that began as “ApoLife”, a spinoff of Stroh tech, a biotech subsidiary of the landmark Detroit beer company, Stroh Brewery. BioSavita’s mission is to commercialize yeast platform technology for the design, development and cost-effective production of vaccines and biologics. The goal of BioSavita’s technology is to accelerate yeast-derived biological drug candidates for development in partnership with biopharmaceutical companies. The company started its operations in laboratories located in the former Parke-Davis building in downtown Detroit. Support from grants and awards including the Michigan Life Science Corridor Fund, and NIH Small Business Innovation Research grants have enabled the company to express a series of biologics. Company scientists have genetically engineered S. cerevisiae, or baker’s yeast, to improve the yeast platform for faster, cheaper and safer production of complex biologics and vaccines. The primary path to the market for yeast platform technology is to license the technology for internal R&D development and then for commercial production of their biological drugs. BioSavita received the “Best Company in Life Science Category” award from Accelerate Michigan in 2012 and a top award in the Great Lakes Entrepreneur’s Quest competition in 2013. The company’s board of Advisors and management team includes two of the most successful Michigan entrepreneurs –Dr. Charles Bisgaier, current cofounder, Chairman and CSO, Gemphire Therapeutics Inc. and Dr. Roger Newton, co-discoverer of Lipitor™ and cofounder of Esperion Therapeutics. The company’s COO, Kurt Riegger, has extensive experience commercializing life science technology including nanoMAG, Invia, Compendia Biosciences and OcuSciences. The proprietary yeast manufacturing platform offers cost effective scalability and rapid response capabilities, which is a viable economic proposition to produce vaccines especially for pandemic infections. Serious epidemics like Ebola, Zika, Swine Flu have become a more frequent threat to humans

MICHBIO | michbio.org

in today’s interconnected world. Pandemic antibodies and vaccines are of urgent need to the nation’s biodefense program and protection of public health. High costs associated with products manufactured by current processes limit their affordability and challenge healthcare budgets. There is an unmet need for efficient, rapid manufacturing technologies for vaccines. BioSavita is completing a proof of concept for Ebola vaccine manufacturing using its yeast technology. The company has assembled a consortium of US Army laboratories (USAMRIID) at Ft. Detrick, MD, University of Michigan and private companies who can take Ebola vaccine from R&D to GMP manufacturing, with the idea of licensing the final product to biopharma for further clinical development. Production of influenza vaccine in yeast is slated as the next project. A burgeoning global opportunity exists for a robust yeast production platform that can accelerate vaccine and biologic drug development. A recent market survey of 244 global bio-manufacturing companies showed that a majority (55%) would consider an alternate expression system for early R&D use, while 43% would do so for use in process development. The Coalition for Epidemic Preparedness Innovations, a unique initiative launched in January 2017 to shorten the response time to epidemics has over $500M in funding to develop platform technologies for vaccines. Overall, global markets for biologics and vaccines are expected to rise to $350 billion by 2019, and $48.03 billion by 2021, respectively. BioSavita is poised to leverage this unmet need for rapidly developed biologics and vaccines, and is actively pursuing strategic alliances with commercial and academic partners to assist their drug development efforts. ■

BIOSAVITA.COM

LETâ&#x20AC;&#x2122;S WORK TOGETHER TO

GROW IDEAS INTO BUSINESS

SUCCESS STORIES. Y

ou might be surprised at what you find at the MSU Innovation Center: Access to nearly 5,000 researchers, $526 million in annual R&D expenditures, and 644 research and instructional buildings, scale-up facilities, pilot plants and lab space. We have the world-class ingredients that entrepreneurs, investors, and inventors are looking for, all in one place: Business-CONNECT links the right people and resources to develop your idea MSU Technologies offers the best MSU ideas ready for commercial licensing Spartan Innovations creates investment-ready businesses from MSU ideas

Learn more today: www.InnovationCenter.msu.edu

Dr. Gemma Reguera was awarded the 2016 Innovator of the Year Award by the MSU Innovation Center for for her work in Microbial Electrochemical Reactors.

Stryker is one of the worldâ&#x20AC;&#x2122;s leading medical technology companies and, together with our customers, we are driven to make healthcare better.

www.stryker.com

BIOMATTERS | FALL 2017

$1.3 Billion in research and over 400 new inventions every year Resources and opportunity for our state and our nation Let’s connect.

734.763.0614 techtransfer@umich.edu

We proudly support MichBio and Michigan’s bioscience industry. Our products support clinicians in cardiovascular operating rooms around the world. Learn about Terumo Cardiovascular Group at terumo-cvgroup.com

UMTT_AD_Sept2016.indd 1

MICHBIO | michbio.org

9/19/16 2:23 PM

GUEST VIEWPOINT

UNIVERSITIES ARE KEY ECONOMIC DRIVER IN LIFE, MEDICAL AND HEALTH SCIENCES RESEARCH BY BRITANY AFFOLTER-CAINE, PHD, INTERIM EXECUTIVE DIRECTOR, UNIVERSITY RESEARCH CORRIDOR

The biosciences make up an important and stabilizing part of Michigan’s economy, being one of the only sectors that grew during Michigan’s long economic downturn in the 2000s. Employment in the sciences is up 18.9 percent, compared to 2000 levels, and between 2011 and 2015 the sector added 21,000 jobs. Michigan is one of the few places in the world with the capability and capacity to contribute to the next great scientific discovery that will improve human health and well-being due to the presence of the University Research Corridor (URC). Comprised of Michigan State University, the University of Michigan and Wayne State University, URC research has already led to discoveries that have saved countless lives. The URC institutions share a deep commitment to helping build the bio-industry in Michigan. With Business Leaders for Michigan (BLM), the URC participated in the development of MichBio’s 2016 Michigan Bio-Industry Roadmap to help enable the growth of the sector over the next three to five years. And earlier this year, the URC released the report “Leading Discovery: URC Contributions to the Life, Medical and Health Sciences” (www.urcmich.org/reports). The report discusses the importance of the life, medical and health sciences to Michigan, and the direct impact URC research and discoveries have on people’s lives.

Beyond the economic effect and impact on talent, URC research is also changing lives in other profound ways: striving to find cures for debilitating diseases; developing new pharmaceuticals; leveraging new technologies to develop innovative treatments; and ultimately, improving the health and quality of life for people in Michigan and across the globe. While each of the URC institutions independently leads significant research projects, they also regularly collaborate to tackle some of the world’s greatest challenges. BLEEP, the Michigan Bloodspot Environmental Epidemiology Project, supported with early seed funding from the URC, used Michigan’s newborn blood spot repository to probe for genetic information. That in turn led to a $4.8-million NIH grant for the Environmental Influences on Child Health Outcomes project. The recently announced Michigan Alzheimer’s Disease Core Center was launched to support the URC universities in a collaborative effort to conduct a wide range of studies on Alzheimer’s disease and other forms of dementia. The URC universities have a long history of contributing to this vitally important sector through talent development, research activity and discovery, and commercialization of technology and innovation. As science continues to advance, the future for research in the life, medical and health sciences will include tackling challenges related to aging, cancer, genetic disorders, health disparities and food supply safety, resulting in the continued growth of the sector and, ultimately, the improvement of the Leadin URC C g Discove health and quality of life for people in ry the Lif ontributio : Healt e, Medical ns to Michigan and across the globe. ■ h Scie a nces nd A Repo rt from Unive rsity Re the search Corrid or g 2017

Sprin

According to the report, the URC conducted $1.2 billion in R&D in the health sciences and has proved to be a key source of talent, deliverer of care and economic driver in Michigan. Cutting-edge, URC research is being converted into commercialization success, with more than 1,348 inventions reported from 2012 to 2016. The URC ranks first in degrees awarded in the life, medical and health sciences’ field among seven other leading university clusters. The URC also ranks first in the number of bachelor’s, master’s and medical doctor degrees awarded in the sciences. Furthermore, the URC is vital to the pipeline of physicians in the state, as 42 percent of Michigan’s practicing physicians attended a URC medical school.

URCMICH.ORG/REPORTS

BIOMATTERS | FALL 2017

Where Law Meets Science

For insightful legal counsel, smart representation and strategic business advice, Michigan’s biotechnology and life science companies turn to Dykema.

Dykema’s biotechnology and life science team represents clients ranging from startups to public companies to nonprofits, in a variety of industry sectors, including:

• Pharmaceuticals • Diagnostics • Health care services • Biotechnology • Medical devices and equipment • Computer technology • Life science software

CMY

To learn more, please contact Jin-Kyu Koh, leader of Dykema’s Biotechnology and Life Science practice, at jkoh@dykema.com. www.dykema.com

Before it became a medicine, It was 5,000 researched compounds. 87 different protein structures. 500,000 lab tests. 1,600 scientists. 80-hour workweeks.

36 clinical trials. 8,500 patient volunteers. And more problems to solve than we could count. Before it became a medicine, It was an idea in the mind of a Pfizer scientist. Now it’s a medicine That saves lives every day.

MICHBIO | michbio.org

Driven to discover the cure

T:5.5”

14 years of breakthroughs and setbacks.

JUNE 11-12, 2018 MARRIOTT ANN ARBOR YPSILANTI AT EAGLE CREST

The 2018 MichBio Expo will spotlight the growth of Michigan’s bio-industry over the past 25 years. Mark your calendar for this bio-industry anniversary event!

SAVE THE DATE

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ADVERTISERS

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FOOD | WATER | PHARMA | STERILITY | COSMETIC

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Michigan Economic Development Corporation............. IFC Michigan State University....................................................25 Micro Bio Testing Services (Elba Labs).........................IBC MPI Research.........................................................................28 Pfizer........................................................................................28 PhRMA.....................................................................................04 Stryker.....................................................................................25 Terumo.....................................................................................26 University of Michigan..........................................................26 VWR..........................................................................................26 Want to advertise in the next issue of BioMatters? Contact Kate@michbio.org

BIOMATTERS | FALL 2017

MichBio P.O. Box 131099 Ann Arbor, MI 48113-0199

Check our calendar often for more MichBio events like MichBio U webinars, CEO Leaders Clubs, and BioConnections business growth referral events. TM

MEMBERS SAVE Remember, MichBio members get discounts on national events such as AdvaMed, BIO, MDMA conferences, and more. Details: michbio.org/events

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