UK: University of Kentucky | Commercialization & Economic Development

RESEARCH MEANS BUSINESS

1st Quarter 2009EconDevNews

Therix Medical: Bringing UK Clinicians’ Ideas to Market

In the photo: Dean Harvey, right, leads a planning meeting on Therix Medical.

Dr. John Gurley has ideas and he is not alone.

"Every day clinicians have ideas about how to help patients and say, 'Someone ought to make a tool like this to fix this problem,'" says Gurley, a cardiologist at the University of Kentucky. "But no one is standing beside them listening. No one is saying, 'You're right that's a great idea! We are going to help you make that tool.'"

In October 2007 Gurley took matters into his own hands and met with Len Heller, UK’s vice president for Commercialization & Economic Development, with the idea for Therix – a privately funded business development initiative that would bring clinicians’ ideas to market. Using a commercialization process designed to fit the hectic schedule of a clinician, Therix would develop a proof of concept from the clinician’s idea and market the resulting product. In return, UK and the clinician would share in royalties and patent rights.

“I don’t think I am any different than a lot of clinicians who think of clinical problems in a creative manner,” says Gurley. “On the other hand, we are too busy treating patients to do everything necessary to get our ideas into the marketplace. With Therix, we can work side by side with business professionals who can do all of the product development and marketing for us.”

“This is an extremely exciting endeavor,” says Dean Harvey, who works with Heller as executive director of business development at UK. “Until now, UK has focused its commercialization efforts primarily on researchers with labs and extramural funding. Clinicians represent a large, untapped source of intellectual property for UK.”

The idea behind Therix holds great potential. At the UK medical center alone there are roughly 500 MD clinicians, 1,000 nurses and several hundred technicians, each representing a unique, potential commercialization opportunity that has yet to be explored.

Only a few organizations across the country have something similar to Therix. During the past year, Harvey and Gurley met with representatives at Cleveland Clinic, which has been very successful in bringing multiple medical products to market.

The Therix concept fits perfectly with UK’s new commercialization efforts. According to Harvey, “At the same time Gurley met with Heller, we had been thinking of ways to get business teams associated with our university researchers. Instead of each faculty member having to start their own company, a management team would partner with several faculty who work in the same area.” This POD concept, as Harvey termed it, fit seamlessly with the idea of involving clinicians in commercialization and product development.

Harvey says that Therix will focus on medical devices and diagnostics. UK clinicians are already contacting Harvey with invention disclosures and Gurley himself is working on his own concept. The next step is to put together private funding for Therix and begin recruiting a management team.

A UK Clinician Innovations Day is being planned for August 4 to provide more details on how Therix will work, and to encourage clinicians to get involved. The event will feature a number of informative speakers from the medical and business community including Craig Wynett, head of Corporate New Ventures at Proctor & Gamble.

Gurley praises the university and its progressive outlook on innovation. “I love being at UK because it is a place where I am surrounded by talented and creative professionals who are dedicated to making health care better, safer and more efficient,” he says. “For me, there is no greater joy than finding a way to solve a clinical problem which will improve patients’ lives.”

If you are a clinician and would like additional information on bringing your idea to market, contact Dean Harvey, 859.257.1930, or UK Commercialization Specialist Jessica Williams, 859.218.6559.

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Venture Funding Totals $55 Million for UK Companies

UK-affiliated companies attracted a record $55 million in venture funding last year, including angel and venture capital investments and mergers and acquisitions, according to the Lexington Venture Club’s annual survey of early stage companies in the Bluegrass.

“This illustrates the value of a top research university to the local, regional and state economy,” says UK President Lee T. Todd Jr. “UK continues our commitment to our economic development mission for the Commonwealth.” Thirty nine companies were associated with UK either through licensing technologies, collaborative projects, or as faculty/staff startups.

 UK Companies Create New Jobs, Pay High Salaries

Last year, 98 new jobs, including 68 fulltime positions, were created by the UK affiliated companies that participated in the venture club survey. These early stage companies paid an average salary of $70,000, employed a total 239 people, and reported a combined annual revenue of $16.4 million. The majority of the companies are in the biotech & healthcare, IT & software and advanced manufacturing industry sectors.

“The financial performance of these UK companies speaks volumes for the quality of research being conducted here,” says Len Heller, UK vice president for Commercialization & Economic Development.  “In spite of a decline in national venture capital, investors are confident in the work being done at UK, and the numbers reflect it.”  Eighty percent of the venture funding total came from UK affiliated companies.

Midwest Venture Capital Firm Impressed

Mersive Technologies  was one of several companies with UK ties recognized at the Lexington Venture Club’s Celebrating Entrepreneurs event when the annual survey results were released. In January, Mersive, producer of high resolution digital displays based on research from the UK College of Engineering's Center for Visualization and Virtual Environments, closed a $4.6 million Series B round of financing. Hopewell Ventures, a $110 million Chicago-based venture capital fund, was the lead investor and was joined by existing investors including Ohio-based Adena Ventures, the Kentucky Science & Technology Corporation and the Bluegrass Angels Venture Fund.  

“Mersive has outstanding growth potential based on innovative technology and product development,” says Bill Sutter with Hopewell Ventures, who was a keynote speaker at the event. “We have found top-notch companies in the Lexington area, along with a lively entrepreneurial spirit and a supportive university and state government.”

Also recognized at the Lexington Venture Club event was UK alumnus Davis Marksbury for his recent $6 million donation to develop UK’s Digital Village, LevTech for its $27 million acquisition by ATMI Inc., and Coldstream Laboratories Inc. for the most new jobs created.

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UK Alumni Consult with Kentucky Small Businesses

In the photo: Elaine Duncan proposed the idea for the UK Alumni Expert Network while serving on the Alumni Association board of directors. A small business owner herself, Duncan was a key player in the formation of the network and now serves as an expert volunteer. Duncan is president of Paladin Medical Inc. in Stillwater, Minn.

University of Kentucky alumni experts are now only a click away for Kentucky small business employers and entrepreneurs who have a business or technical question. The UK Alumni Expert Network connects tens of thousands of Kentucky small businesses with alumni who have expertise in hundreds of areas from business operations to new product development.

The UK Alumni Expert Network is the first expert network for economic development offered by a university and its alumni association.

"The UK Alumni Expert Network is an innovative initiative designed to be a tremendous resource for Kentucky’s small businesses which are the backbone of our local communities," said UK President Lee T. Todd Jr. "This is another great example of how UK alumni are dedicated to giving back to the Commonwealth."

Already, more than 100 alumni, each with at least 10 years of business experience, have completed an online profile and been approved to participate in the network. Each expert has agreed to provide up to 10 hours of free consulting each year with a maximum of two hours of free telephone and e-mail consulting per business. After the initial two hours, the expert and the business may enter into an extended agreement.

Any of Kentucky’s small business employers and owners or any Kentucky-based entrepreneur can find an alumni expert by searching the more than 2,100 expert topic areas at www.ukyexperts.net and filling out an online request.

"It is critical to the economic prosperity of Kentucky, especially in our current economic climate, that entrepreneurs who are starting new businesses and existing small businesses succeed," said Len Heller, UK’s vice president for Commercialization and Economic Development. "We believe the UK Alumni Expert Network will be a major component of making small businesses across the Bluegrass State successful."

According to the latest Kentucky small business profile published by the U.S. Small Business Administration Office of Advocacy, Kentucky had 70,785 small business employers in 2006, representing 97 percent of the state’s employers. Small businesses in Kentucky created 60 percent of the state’s new net jobs from 2004-2005.

The UK Alumni Expert Network is a partnership between the UK Office for Commercialization and Economic Development and the UK Alumni Association.

Stan Key, UK Alumni Association executive director, said, "It is the role of the alumni association to involve alumni in support of their university in a variety of ways. The idea for the UK Alumni Expert Network came from a previous member of our board of directors."

For Kentucky’s Entrepreneurs and Small Businesses

The UK Alumni Expert Network makes it easy to connect with a volunteer alumni expert for free business and technical consulting. Log on to www.ukyexperts.net:



http://www.econdev.uky.edu/news-alumni%20expert%20network_clip_image002_0000.gif

1. 

Select an expert topic area.

 

2. 

Fill out a request.

 

3. 

Connect with the alumni expert.

For UK Alumni

Any qualified alumni can volunteer as an alumni expert by logging on and filling out an expert’s profile. Volunteers must have graduated from the University of Kentucky at least 10 years ago and be willing to provide up to 10 hours of free telephone or e-mail consulting each year.  

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Pat Powell Makes Technology Startups His Business

In the photo: Pat Powell

Pat Powell comes from a long line of entrepreneurs and he knows his business. Powell spent his early professional life engrossed in his family’s clay business followed by positions in trade industry organizations. From marketing and human resources, to R&D and acquisition, Powell has left no stone unturned in his business career.

Today Powell joins the UKCED Business Development team as director of the Lexington Innovation and Commercialization Center, or ICC. The Lexington ICC is part of a statewide network focused on helping entrepreneurs build successful technology businesses. “Most entrepreneurs have a technical background and need help marketing their ideas to make a profit and fund their technology with risk capital,” he says.

As part of the Bluegrass Business Development Partnership, Powell works in the Commerce Lexington building on East Main Street with Commerce Lexington’s economic development group and the Bluegrass Small Business Development Center team.  Powell focuses on early stage business projects from both the Lexington community and the UK campus, assisting entrepreneurs who are working through technology issues, high growth business planning, and fund raising.

Investors bet on the jockey, not the horse

The greatest challenge facing most tech startups is what Powell calls “the management gap.” “Many entrepreneurs think their idea is so compelling that there is no reason for an investor not to invest,” Powell says. “The investor, however, is as interested in the startup’s management team. In Kentucky terms, the investor bets on the jockey, not just the horse.” Powell helps his clients create a viable business plan by taking on a local partner to manage the business and marketing side of the venture.

Another challenge is keeping the business in the state once it has gotten off the ground.  Powell works to find funding through local or regional investors.  “If all we did was attract capital from the east or west coast we would be paving the expressway for exits out of the state,” Powell says. “Tech startups also have a compelling reason to stay in Kentucky if their entire management team calls Kentucky home.”

Impressive Bluegrass Track Record
“Last year 68 early stage companies in the Bluegrass were able to attract investments and venture capital of nearly $69 million. This is not only a fantastic track record, but also an indicator of continued success,” Powell says. Over the past six months more than 90 entrepreneurs have sought business guidance from Powell.

“It is predicted that in the coming years as much as 15 percent of our GNP will come from companies that started with risk capital. Every day we are taking the strides necessary to stay ahead of what is becoming the predominant way to do business.”

Before joining the UK Office for Commercialization & Economic Development, Powell spent five years as director of the ICC at Murray State University where he assisted in the development of 36 Western Kentucky technology companies. Powell is currently a board member and stakeholder in several Kentucky-based companies.

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KSBDC Assists Small Businesses During Economic Downturn

In the photo: When Larry Prinssen, business development director and founder, left, and Mark Knight, president and founder, found their company Knight-ED struggling in the economic downturn, they turned to the KSBDC for guidance.

The struggling economy is impacting Kentucky small businesses, which according to the U.S. Small Business Administration represent 97 percent of the Commonwealth’s employers. Businesses must have their operational methods and financial controls in place to survive.  In response to current economic conditions, the Kentucky Small Business Development Center (KSBDC), a network of 17 service centers located throughout the state, has added new transformative consulting services to assist distressed businesses.

Businesses face an uphill battle when determining strategies for survivability and restoring profitability.  Working with stressed businesses to address financial and operational difficulties requires swift action and appropriate measures. KSBDC consultants help restore and create profitability by offering a flexible approach designed to improve business operations and financial performance.

One of the first clients to utilize KSBDC’s new transformative consulting services is Knight-ED LLC.  Knight-ED formed in 2003 in response to the printed circuit card business moving to Asia and Mexico. Knight-ED provides electronic designs, and assembles and manufactures circuit boards, assemblies, sub-assemblies and wire harnesses.  The company principals, Mark Knight and Larry Prinssen, support researchers and inventors by helping them turn their design plans into actual products. 

Knight-ED first visited the KSBDC in 2006 when they were applying for a loan through Kentucky’s Department of Commercialization and Innovation to diversify and expand their operations.  The KSBDC consultants quickly discovered that Knight-ED needed help beyond the business plan review.

The KSBDC assembled a team of consultants to conduct an extensive management audit and assist Knight-ED in determining the appropriate use for the loan money they received.  The consultants reviewed the company’s finances and began holding weekly meetings, which continue today, to review accounts payables and receivables and sales prospects. Additionally, they examined operational efficiency and made suggestions regarding production time and labor costs.  The consultants worked closely with Knight and Prinssen to develop hiring policies, marketing strategies and implement internal controls.

Knight-ED’s opportunities have been enhanced thanks to improved planning and financial oversight.  With KSBDC assistance, the business now has more resources and is able to concentrate on growth.  The KSBDC will continue to assist Knight-ED with developing strategies to diversify the client base, implement a marketing and sales plan and strengthen their competitive strategy.

As evidenced by Knight-ED, KSBDC services extend far beyond assistance with securing funding.  The KSBDC has a proven track record of developing credible financial and operational plans while guiding the client’s realization of those plans. For more information on transformative consulting or other KSBDC consulting services, contact Gordon Garrett, associate state director 859.257.7668.

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AllTranz “Graduates” from ASTeCC Campus Incubator

In the photo: AllTranz founder and pharmaceutical sciences researcher Audra Stinchcomb

AllTranz Inc. has moved from its incubator lab space at UK in the Advanced Science and Technology Commercialization Center to a new 3,400 sq. ft. lab in Lexington. Founded by UK College of Pharmacy faculty researcher Audra Stinchcomb, AllTranz is ready to begin human clinical trials on a next generation osteoarthritis pain management product transdermally delivered through a gel.

In 2007 AllTranz received $1.26 million in Series A financing making a number of critical milestones in their R&D pathway possible. These included preparation for a pre-IND FDA meeting and proof-of-concept testing. Funding partners included the Kentucky Seed Capital Fund, the Commonwealth Seed Capital Fund, the Bluegrass Angel Venture Fund and the Bluegrass Angels, and the Kentucky Science and Technology Corporation (KSTC).

 “I think the entire startup and commercialization process would have been much more difficult had I not worked with Melissa Prince Quisenberry, George Emont, MetaCyte and people at UK like Len Heller and Dean Harvey.  My advice to any start-up company is to become familiar with the Kentucky economic development community,” says Stinchcomb.  “ASTeCC provided a great collaborative community atmosphere that you do not find on many campuses. It is a great program and I’m pleased to see how it has developed over the years under the guidance of President Todd.”

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Laura’s Lean Beef Earns Good Housekeeping Seal

The entire product line of Laura’s Lean Beef, headquartered at the Coldstream Research Campus, has earned the Good Housekeeping Seal, bringing the company increased prestige in the world of consumer goods.  Laura’s Lean Beef offers fresh cuts of beef, frozen patties and three fully cooked entrees all produced from cattle that are humanely raised without growth hormones or antibiotics, and fed a diet of natural grasses and grains.

“The Good Housekeeping Institute has a number of criteria they consider when selecting products to place their seal on. Ultimately it comes down to having a great product that supports claims made on the packaging,” says Chris Anderson, director of marketing and customer service at Laura’s Lean Beef. “Of course, our customers have held Laura’s Lean Beef in high regard for nearly 25 years.”

In addition to the Good Housekeeping Seal, Laura’s Lean Beef is working with Weight Watchers, and will be featured as an approved Weight Watchers sponsor in 2009. This, Anderson says, is another great way to reach out to a very active and interested potential customer base.

Seven Generations in Kentucky
Laura Freeman, a seventh generation Kentucky cattle farmer, founded Laura’s Lean Beef in 1985 at Mt. Folly Farm in Winchester, Ky. Freeman made $10,000 during her first year in operation.

Today Laura’s Lean Beef has approximately 75 employees, half of which are located in Lexington, and a network of several hundred farmers stretching from South Carolina to Idaho. Farmers that produce cattle for Laura’s Lean Beef sign a legal contract agreeing to adhere to the company’s stringent requirements regarding feed and herd management. Ten percent of all Laura’s Lean Beef is produced by Kentucky farmers.

The family farm remains at the center of Laura’s Lean Beef. “Although the company has grown larger and more sophisticated, its priority is to remain true to its original values,” Freeman says. “We realize it’s more expensive for farmers to produce cattle to our specifications, so we pay a healthy premium over market price. Quality, not quantity, is the key to economic survival for America’s family farms.”

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Eric Grulke Brings Nanoparticles Center Stage

In the photo: As associate dean for engineering’s research and graduate studies program, students also play a critical role in Eric Grulke’s lab.

(Editor’s note: Dr. Grulke will work with UK commercialization & economic development specialists at the 2009 BIO International Convention. He is one of a dozen researchers who have their labs in the ASTeCC campus incubator.)

What do Humvees and eyeglasses have in common? Nanomaterials and Eric Grulke.

Ten years ago UK chemical and materials engineering professor, Eric Grulke, found his place in nanotechnology while working on carbon nanotubes. Grulke, who came to UK with a background in polymer and polymer applications, is now one of UK's leading researchers in advanced carbon nanomaterials.

Grulke's work using nanotechnology is critical in preparing nanomaterials for the marketplace. "We are seeing this technology in everyday products like sunscreen and composites for sports equipment," says Grulke. "We are starting to scratch the surface in priority areas such as energy conversion, cleaner industrial processes and environmental applications."

Read the full profile

Briefs

Bucks for Brains technology commercialization stats:  39 UK faculty with endowed chairs or professorships from the Research Challenge Trust Fund, also known as “Bucks for Brains,” were participating in technology commercialization activities in FY 2008. Of these, 35 have patents and applications for a total 165 patents and applications; 11 have technology that has been licensed, for a total 23 licenses; and 21 are in some stage of a start-up company.

Shannon Bass named ParaTechs CEO: ParaTechs president and co-founder and UK entomologist Bruce Webb has promoted Shannon Bass to Chief Executive Officer. Bass, who joined ParaTechs in October 2007 as Business Development VP, has 17 years of management experience in the biotech industry and extensive experience in cGMP quality control/quality assurance and manufacturing. Bass was a key player in the recent release of ParaTechs’ newest product, the Non-Surgical Embryo Transfer Device, NSET™, for use in producing transgenic mice. ParaTech develops novel technologies using insect molecular biology and is located in UK’s ASTeCC campus incubator.

UK participates at the 2009 BIO International Convention: The BIO International Convention “Heal, Fuel, Feed the World,” May 18-22 at the Georgia World Congress Center, will include an exhibition with international country/state pavilions and product focus zones and 150 biotech sessions. An estimated 20,000 industry leaders and more than 30 nations will attend. UK faculty, biotech start-up companies and commercialization & economic development specialists participate. Contact Deb Weis for more information.

Naprogenix invited to present at BIO: Naprogenix received one of only two dozen invitations from the editors at Genetic Engineering News to present their technology at BIO. Naprogenix is identifying active compounds in native plants using its proprietary Natural Products Genomics™ research which have potential value as neuroprotective drugs. CEO and co-founder John Littleton, College of Pharmacy, will present on how plants have evolved defensive metabolites that could be useful as drugs and how this information might be used to direct “evolution” of plant cells to improve drugs. Naprogenix has made advances in the platform biotechnology that is used for plant drug discovery.

Bluegrass Business Development Partnership update: The one-stop, economic development partnership between Commerce Lexington, the University of Kentucky and Lexington-Fayette County government served 721 clients during the first two quarters of FY 2009. Clients include entrepreneurs, technology businesses, small businesses, and minority-owned businesses. The BBDP also reported 135 jobs created/businesses started during this same six-month period. A total 3,232 people attended 49 workshops and training sessions. 

KSBDC receives federal grant to assist veteran owned businesses: The Kentucky Small Business Development Center received a one-time $100,000 grant to promote business ownership to enlisted and retired members of the armed forces, their families and civilian business owners affected by deployments. Through the use of online technology and e-mail consulting, veterans will have access to KSBDC services prior, during and after deployment.

Gordon Garrett receives Technology Business Consultant certification: Garrett, associate state director and management consultant with the Kentucky Small Business Development Center, received certification from the Association of Small Business Development Centers.  Garrett is one of only 22 SBDC consultants nationwide to complete the rigorous requirements to be a Technology Business Consultant.

UK iwin sponsors workplace practices series: The UK Institute for Workplace Innovation (iwin) begins the first series workshop “Leveraging workplace flexibility as a strategic management tool” on April 23. iwin educates businesses on the latest trends and benefits of implementing innovative workplace practices. Workshops and webinars schedule. (link to www.iwin.uky.edu) 

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New UK Affiliated Companies

Synergetic Technologies moves into ASTeCC: Based on research by M.P. Menguc, Synergetic Technologies Inc. develops scientific instrumentation and software for accurate particle shape or agglomerate structure characterization of nano or sub-micron sized particles. In 2007 Synergetic licensed technology to Horiba Inc. in Japan, a major manufacturer of analytical instruments.

Transposagen Biopharmaceuticals relocates from Philadelphia, Pa.: ASTeCC is the new headquarters for Transposagen, a biotech company that provides unique animal models of human diseases for drug discovery and development. Transposagen collaborates with academic researchers including two UK researchers to phenotype/characterize 14 knockout rat lines. Transposagen produces more than 100 knockout rat lines, some with known disease associations including Alzheimer’s, rheumatoid arthritis, diabetes and a variety of cancers and cardio diseases.

HiberNetics researches new stroke treatment: HiberNetics is focusing on the clinical potential of opioid peptides originally derived from Amazonian frog skin as a treatment for stroke. Synthesized variants of the peptides may reduce cerebral and myocardial ischemic injury from stroke and enhance survival following severe hemorrhage. HiberNetics is based on the patented research of Peter Oeltgen, pathology and laboratory medicine.

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New Licenses

UK has issued 12 new licenses to-date in FY 2009. The following UK-affiliated companies hold new licenses:

Merloc, UK chemistry associate professor David Atwood’s company, is developing multidentate sulfur-containing ligands for binding heavy metals to use in waste management and environmental cleanup. 

Scout Diagnostics is developing a new diagnostic tool using biomarkers to detect Alzheimer's disease prior to clinical diagnosis. Scout, located in the ASTeCC campus incubator, is based on research by Mark Lovell and Burt Lynn in the Department of Chemistry and the Sanders-Brown Center on Aging.

NuForm Materials, located in Sadieville, Ky., is developing methods to process coal combustion ash. Based on Tom Robl’s work at the Center for Applied Energy Research, the company is also isolating specific fractions useful as polymer fillers, high performance pozzolans and metal matrix materials.

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New Patents

The following UK principal investigators have received patents in FY 2009:

Joe Chappell /agriculture
Robert L. Houtz /agriculture
Chang-Guo Zhan /pharmacy
Laurence G. Hassebrook /engineering
David A. Atwood /chemistry
Robert Houtz /horticulture
Jurgen Rohr /pharmacy
Malaya Chatterjee /medicine

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Conferences/Events

April 7 Kentucky Innovation and Entrepreneurship Conference

April 23 UK Clinical and Translational Science Spring Conference

April 23 iwin series: Leveraging Workplace Flexibility as a Strategic Management Tool

April 29 iwin series: Using Emotional Intelligence to Enhance Leadership in Challenging Economic Times

May 18-21 BIO International Convention “Heal, Fuel, Feed the World”

June 24 iwin series: Total Leadership: Be a Better Leader, Have a Richer Life

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