FINANCIALS; UW tech-transfer program putting discoveries to work
Aaron Coe was enthusiastic about using potential drugs licensed from the University of Washington to start his Seattle company, Promentix - right up until he was handed a 68-page legal agreement.
"It wasn't the paradigm of efficiency," said Coe, who began the licensing process in mid-2003. "At the end of the day, if I wasn't intent on doing the deal as I was, I would have cut bait way before that."
Only a year later, Alexander Lebedev found the process much less bureaucratic when he negotiated a license to use UW ultrasound technology.
"It seems to me the process became more smooth and direct," said Lebedev, co-founder of Mirabilis Medica in Bothell. As witnessed by these startups, the UW's tech-transfer program has undergone a transformation in recent years to make it faster and more welcoming for would-be entrepreneurs, investors and university researchers.
Those changes, as well as a better funding climate for new companies, have helped increase the number of startups and licenses coming out of the university, said James Severson, head of the UW's tech-transfer program since 2003.
Revenues from the program increased 26 percent last year to $23 million.
And the number of license and option deals jumped 40 percent in the first nine months of the current fiscal year, reaching 125 at the end of March.
Top money-makers in UW Technology
The university's fiscal 2006 revenues from its leading licensed inventions, with originating department The UW has a lot at stake in its tech-transfer program: It's a bridge between the university and the business community, and it earns millions of dollars each year from license fees and royalties from companies that use technology developed at UW.
But in the past, the office "had a bad reputation" among the business community and within the university, Severson said.
Recent changes made to the tech-transfer process include hiring additional licensing staffers with more experience, speeding up the licensing process and increasing community outreach.
Startup efforts
The UW also has increased its focus on spinning out startups, rather than concentrating on signing licensing agreements with established companies.
To that end, the tech-transfer office recently announced an initiative called Launchpad aimed at getting new businesses off the ground. It's also attempting to help startups with funding through its Technology Gap Innovation Fund, which provides researchers grants of up to $50,000 for projects with commercial potential. While the UW historically has had strong licensing activity, its technology was used to form a total of only six startups in 2004 and 2005.
Last year, 10 startups were created using its technology. Six startups have formed using UW technology so far this year. What's also helped the tech-transfer process is a 2005 change in the state's Ethics in Public Service Act, making it easier for faculty to participate in startups. The act is commonly referred to as the state's ethics law. Previously, the law - which outlines how state employees and officials should conduct business - discouraged professors and researchers from getting involved.
The UW is ranked fourth among U.S. universities or university systems in terms of research expenditures. When it comes to license fees, royalties and other income from commercializing its inventions, the university ranks 10th.
Keywords: Business, Financials, Mirabilis Medica.
This article was prepared by Healthcare Mergers, Acquisitions & Ventures Week editors from staff and other reports. Copyright 2007, Healthcare Mergers, Acquisitions & Ventures Week via NewsRx.com.