OHSU turns out a smaller batch of bioscience startups; Young companies face struggles in state without a rich pool of resources
BYLINE: Robin J. Moody
Oregon Health & Science University hatched a smaller batch of startup companies in 2006 than in the recent years, with three companies created by intellectual property gleaned from the research institute.
In 2005, the OHSU spun out five companies, and in 2004 it spawned six. OHSU discoveries have led to the formation of 28 new companies since the year 2000.
The three companies launched in 2006 using OHSU discoveries were:
•
Acute Innovations: Based on technologies developed by orthopedic and trauma surgeons at OHSU, this new venture funded by Acumed LLC is trying to improve challenging thoracic surgical procedures. The new business will colocate with Acumed in Hillsboro; 18-year-old Acumed designs, manufactures and markets orthopedic trauma and reconstruction products.
•
SimHealth Consultants: Founded by OHSU anesthesiologist Dr. Michael Seropian, and Bonnie Driggers, an assistant professor in the OHSU School of Nursing, it uses high-tech mannequins to emulate medical emergencies and medical conditions to educate medical students.
•
NeuroProtect: This startup is working on new ways to protect the brain from stroke injuries. It is based on research conducted by Mary Stenzel-Poore, professor of molecular microbiology and immunology, whose work shows that certain compounds, when given in advance of stroke, can produce greater tolerance to brain injury. The treatment is the product of five years of research.
None of the new companies are located on the OHSU Marquam Hill campus or at the still under construction South Waterfront development.
Discoveries with commercial possibility are disclosed to the OHSU Office of Technology Research & Collaboration, which helps vet the technology, protect intellectual property through patents, and write collaboration deals with businesses.
The companies are sometimes run by OHSU faculty and other times licensed to outside groups.
The office's stated goal is to create economic development opportunities in Oregon.
Young bioscience companies face an uphill battle to bring their products to market, with Oregon's oft-maligned dearth of venture capital money and a long development cycle before they can hope to collect revenue. Few of OHSU's spinouts so far have gone on to become large, vibrant companies.
"We consider companies based in bioscience or biotechnology a success if they are around for four, five or six years with a stable employee base," said Arundeep Pradhan, director for the OHSU Office of Technology Research & Collaboration.
OHSU works to nurture early-stage companies in three ways.
The Bioscience Innovation Program provides funding for technologies that could be commercially viable in the near future.
The money goes to demonstrate that the company's concept is sound, often through conducting key experiments.
The second strategy, the Springboard Program, provides selected OHSU startups with up to $7,000 to go toward incorporation assistance, funding for legal and accounting services or assistance with business plan development.
Springboard requires companies to join local business associations like the Oregon Bioscience Association or the Oregon Entrepreneurs Forum, to help them network with like-minded companies.
The Startup Investment Program offers companies up to $250,000 seed funding in return for a commitment to stay in Oregon for a proscribed period of time. The $250,000 must come with a 3 to 1 match, and will be invested only when companies are reviewed for soundness.
Stenzel-Poore, founder of NeuroProtect, recently received a $100,000 grant from the Bioscience Innovation Program which was matched by an equal sum from Portland venture fund Northwest Technology Ventures.
The money will go toward launching a primate study to test the efficacy of the NeuroProtect therapy.
"With a study in primates, in less than one year we will know efficacy and dose. That puts us in great position to move into clinical trials," Stenzel-Poore said.
Stenzel-Poore estimates that between her lab and a collaborative lab at Legacy Health System, $20 million in grants have gone to fund basic scientific research behind the treatment.
The company has already created a clinical trial design, and has a group in England that's agreed to execute it. Before that stage, however, more venture capital must be raised to complete the costly primate studies.
OHSU is not alone is spawning new companies. The University of Oregon has spun out six companies since 2003.