Strategic Health Innovations Moving Ideas Forward

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Strategic Health InnovationsMoving Ideas Forward
Guelph-Waterloo Region Biotechnology Cluster
Innovation Plan
Borys Chabursky, President, Strategic Health
Innovations Presentation to the Guelph-Waterloo
Region
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SHIs Integrated Approach to Creating
Public-Private Partnerships
Strategy Process
Outcomes (Thus Far)
What the Future Holds
Introduction

• Canadas largest life sciences-focused strategic
  consulting firm
• Successfully completed over 200 major engagements
  for more than 100 clients
• Raised more that 143 million for public and
  private initiatives both in Canada and
  internationally
• Headquartered in Toronto, with an expanding
  global reach
• Experienced team possessing broad scientific and
  business expertise

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Globally, Five Hundred Communities are Working
Toward Developing Cluster Strategies, Including
Strategy Process
Outcomes (Thus Far)
What the Future Holds
Introduction

• UK - ENGLAND
• 3 major clusters 4 emerging
• 3 billion in government funding for new programs

• FRANCE
• 10 biopoles (clusters) and 8 genopoles
• Government to provide 500
• million for company creation

• GERMANY
• 4 clusters
• government investment of 900 million for 2001-05

• CHINA
• 2 clusters
• Government funding up to 500 million by 2005
  (ag-bio)

• UNITED STATES
• 2 largest clusters in the world plus 7 other
  major centres
• Billions of dollars in funding

• AUSTRALIA
• 5 clusters
• Government funding includes 2.9 billion over 5
  years

Source New Economy Strategies, 2003 The
Brookings Institution Center on Urban and
Metropolitan Policy, 2002
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Communities in Ontario Developing Economic Plans
for Growing Life Sciences Clusters by Building on
Current Strengths, Focusing Investments, and
Linking with Other Regional, National and
International Players
Strategy Process
Outcomes (Thus Far)
What the Future Holds
Introduction
EXECUTION
IMPACT ANALYSIS
Key Pillars
BCIP Process
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Guelph Waterloo Partnership in Biotechnology
Created to Capitalize on BCIP Initiative and
Develop Biotechnology Cluster
Strategy Process
Outcomes (Thus Far)
What the Future Holds
Introduction

• Represented by the
• Guelph-Waterloo Partnership in Biotechnology
  (GWPB) Board
• GWPB Executive Committee

Key Pillars
BCIP Process
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Advancing from a Breadth of Opportunities to In
Depth Analysis of the First Wins
Introduction
Strategy Process
Outcomes (Thus Far)
What the Future Holds
Regional Profile
September - November
Biotech Specific Strengths Demands
International Benchmarks and Best Practices
Areas of Competitive Advantage
Phase I
December - January
Strategy Development
Business Concepts
International Benchmarks and Best Practices
February - April
Business Cases/Plans
Phase II
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Specific Deliverables for Each Phase of the
Analysis
Introduction
Strategy Process
Outcomes (Thus Far)
What the Future Holds
Regional Profile
Gain broad understanding of regional strengths
Biotech Specific Strengths Demands
Focus on biotechnology regional strengths
Competitive Advantage
Through benchmarks and best practice analysis
understand the competitive biotechnology
advantage of the region
Strategy Development
Create regional road map that leverages
strengths, addresses challenges and links local
supply with global demand
Business Concepts
Identify prospective opportunities to position
Guelph-Waterloo as a leader on the global stage
Business Cases / Plans
Utilize criteria to prioritize opportunities,
develop frameworks and operationalize concept
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Information Gathering Through Consultations,
Workshops, and Comprehensive Secondary Research
Introduction
Strategy Process
Outcomes (Thus Far)
What the Future Holds
Regional Profile

• WORKSHOPS PRESENTATIONS
• GWPB Board Meetings
• GWPB Executive Committee Meetings
• GWPB Outreach Sessions
• Guelph Waterloo Region Workshops
• Industry stakeholders
• Government stakeholders
• Academic stakeholders

• SECONDARY RESEARCH
• Federal
• Provincial
• Regional
• Municipal
• Industry
• Academia
• National Benchmarks
• International Best Practices

• ONE-ON-ONE CONSULTATIONS
• Company Presidents and Senior Officers
• Economic Development Officers
• University Academics and Officers

Biotech Specific Strengths Demands
Competitive Advantage
Strategy Development
Business Concepts
Business Cases / Plans
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Introduction
Strategy Process
Outcomes (Thus Far)
What the Future Holds
G-W Region is not Fully Capitalizing on the
Potential of its Strengths in Biotechnology-Relate
d Research
Regional Profile
Strengths
Weaknesses

• Strong industry sectors in manufacturing,
  information technology, agriculture, health care
  delivery, and education
• Many world-class areas of research in
  biotechnology-related sciences
• Three universities offering complementary
  competencies in agricultural science, information
  technology, engineering research, and emerging
  health technology specialties to harness
  technology convergence
• Strong base of undergraduate and graduate talent
  in such fields as engineering, science, and
  business, and applied knowledge from strong local
  college system
• Active business support organizations to assist
  in the development of technology-based SMEs

• Technology transfer and commercialization not at
  full potential due to
• Insufficient development of IP or insufficient
  commercial focus
• No optimal process for facilitating
  industry-university collaborations when
  approached by industry
• Lack of awareness of existing business
  development resources
• Shortage of service providers
• Challenging VC and early-stage funding
  environment
• Insufficient piloting and flexible manufacturing
  facilities for SMEs
• Lack of specific image/brand for the region in
  biotech

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Introduction
Strategy Process
Outcomes (Thus Far)
What the Future Holds
We Must Build on Our Strengths and Focus Where
the Demand is Great, for the Competition is
Fierce!
Regional Profile
Threats
Opportunities

• Inability to source capital due to investor
  perception of non-health biotech
• Status of equity markets, particularly as they
  pertain to the biotechnology industry
• GMO-related issues (e.g. crop segregation, etc.)
• Willingness of researchers to apply IT to biotech
• Degree of alignment among the key regional
  stakeholders (e.g. industry and universities) and
  the ability to establish local networks in the
  community
• Global competition for research and management
  talent in the biotechnology sector
• Tax and business environments of other regions

• Bioproducts Increasing demand for industry to
  shift to renewable resources
• Plant biotech leveraging regions strengths in
  agriculture and food for application in food
  nutraceuticals
• Animal biotech leverage research and livestock
  farming strengths
• Opportunity to apply strengths of veterinary
  college and school of optometry to human health
  and bio-security
• Use diverse strengths of the regions academic
  and industrial research and resources to further
  develop competencies in those convergent
  technologies that present great future potential
• Medical Imaging, Biosensors, Bioinformatics,
  Photonics, Nanotechnology

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Introduction
Strategy Process
Outcomes (Thus Far)
What the Future Holds
Broad-Based Research Infrastructure Provides Many
Options
Regional Profile
Biotech Specific Strengths Demands
Competitive Advantage
Strategy Development
Business Concepts
Business Cases / Plans
U of G U of W WLU
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Introduction
Strategy Process
Outcomes (Thus Far)
What the Future Holds
Emerging Strengths in Health Technology
Regional Profile

• Ontario Veterinary College (U of G), recognized
  as a world-class centre for veterinary medicine,
  is demonstrating cross-disciplinary innovation
  through its Institute for Animal Human Links in
  Health Science Research, which has been partly
  funded through an 11 million grant from CFI
• U of Ws School of Optometry is the only
  English-language school of optometry in Canada
• WLU is developing core capabilities in
  neuroscience, complemented by the imaging work
  being done at U of W
• The region has received an additional 9 million
  in CFI funding of (animal and human) health
  initiatives since 1998 and 15.4 million in CIHR
  funding since 1999

Biotech Specific Strengths Demands
Competitive Advantage
Strategy Development
Case Study Dr. Bernie Dunker (U of W) - an
assistant professor of biology, and cancer
researcher, has won a Canadian Cancer Society
Research Scientist Award, for his research into
the behaviour of proteins involved in cell
division. The award's funding of 418,000 over
six years supports research that may lead to
earlier, more accurate detection of cancer and
perhaps, ultimately, to ways of controlling the
disease. His interdisciplinary collaborations
involve other researchers pursuing informatics,
applied mathematics, and photonics.
Business Concepts
Business Cases / Plans
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Introduction
Strategy Process
Outcomes (Thus Far)
What the Future Holds
Research, Raw Material Supply, and Manufacturing
to Support Bioproduct Development
Regional Profile

• Active research in the areas of agriculture and
  (bio)process manufacturing engineering
• A number of small to medium sized companies
  across the Guelph-Waterloo region specialize in
  bio-manufacturing
• Bio-manufacturing areas include biomedical
  devices, fermentation ingredients for feed, as
  well as protein and antibody production
• Strong agricultural base for raw material supply
• Potential to leverage traditional manufacturing
  capabilities

Biotech Specific Strengths Demands
Competitive Advantage
Strategy Development
Case Studies Cell-Factory Bioprocessing Research
Network (Cellnet) - Nationwide consortium of
scientists, engineers and industrial leaders
devoted to using bacteria, animal cells and
fungal cells as factories in the manufacture of
drugs and medical therapies. U of W and U of G
are both involved, with Cell-Nets director based
at U of W. PSA Composites Inc. A world leader
in new composites technology, PSA is currently
commercializing its woodfibre/plastic composites
technology for the construction market. The
company is licensing the technology and building
its own manufacturing plant. The company is also
performing RD on the application of other
fillers for new composite materials.
Business Concepts
Business Cases / Plans
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Introduction
Strategy Process
Outcomes (Thus Far)
What the Future Holds
Environmental Technologies emphasized by global
issues
Regional Profile

• One of two offices of the Centre for Research in
  Earth and Space Technology (CRESTech), a network
  for innovation in environmental, resource
  management, and space sectors is located in
  Waterloo
• U of W and U of G offer unique undergraduate and
  graduate programs in environmental, biological,
  and water resources engineering
• Opportunities to leverage agricultural base and
  research strengths to pursue applications for
  environmental/water contamination by livestock
  and crop residues

Biotech Specific Strengths Demands
Competitive Advantage

• Global Demand
• Ever-increasing volumes of waste wastewater
  from municipalities and industrial sources, such
  as farming and food service, mining operators,
  and pulp and paper processors, are driving the
  search for more economical treatment alternatives
• The demand for cost effective treatment is
  highlighted by the fact that the emerging
  economies of Southeast Asia alone are estimated
  to require US300 billion a year over the next 20
  years to deal responsibly with waste and
  wastewater, while optimistic estimates suggest
  that only US30 billion will be available

Strategy Development
Business Concepts
Business Cases / Plans
Source World Bank
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Introduction
Strategy Process
Outcomes (Thus Far)
What the Future Holds
Convergent Technology
Regional Profile

• Convergent technology areas include medical
  imaging, photonics, nanotechnology, and
  bioinformatics
• Strong photonics and imaging research underway in
  Physics at U of W, complemented by engineering
  research at U of W and U of G
• U of W offers only Canadian undergraduate program
  in bioinformatics
• Applied neurological imaging work at WLU
• A number of small, medium, and large-sized
  companies across the Guelph-Waterloo region
  specialize in convergent technologies

Biotech Specific Strengths Demands
Competitive Advantage
Strategy Development

• Global Demand
• Bioinformatics has the potential to reduce
  discovery and development costs and facilitate
  the creation and commercialization of otherwise
  cost-prohibitive agricultural, pharmaceutical,
  environmental, and industrial products
• Photonics, an enabling technology combining
  optics and electronics, has applications in a
  multitude of industries (including biotechnology
  and imaging), and contributed to US170 billion
  worth of products in 2001
• The National Science Foundation predicts that the
  total market for nanotechnology products and
  services will reach 1 trillion by 2015

Business Concepts
Business Cases / Plans
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Introduction
Strategy Process
Outcomes (Thus Far)
What the Future Holds
Plant Biotech
Regional Profile

• Agriculture is a predominant industry sector in
  Guelph-Waterloo
• Research and development activities in the Guelph
  region show strength and expertise in plant
  germplasm manipulation and genetic mapping of
  crop varieties
• Agri-related sales in the region amass
  approximately 1.2 billion
• Opportunity to leverage existing strengths in
  agricultural sciences (crop science, etc) to
  further establish the region as a worldwide
  leader

Biotech Specific Strengths Demands
Competitive Advantage
Strategy Development
Case Studies Syngenta - World leader in crop
protection products, manufacturing herbicides for
crops such as wheat, corn, soybean, etc.
Syngenta was formed through the combined efforts
of Novartis Zeneca and employs more than 20,000
people worldwide Agribiotics - Cambridge,
Ontario-based biological company and marketer of
legume crop inoculants for the North American
market - manufacturing ready-to-use,
high-potency, sterile liquid inoculants for
on-seed and in-furrow treatment
Business Concepts
Business Cases / Plans
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Introduction
Strategy Process
Outcomes (Thus Far)
What the Future Holds
Animal Biotech
Regional Profile

• Farming in Guelph-Waterloo is heavily weighted
  towards livestock (66 of all farms compared to
  45 overall in Ontario)
• Ontario Veterinary College as well as Ontario
  Agricultural College seen as leaders in research
  and development of biomedical animal sciences,
  animal vaccines, as well as pathobiology
• Significant meat processing presence
• Strong existing animal sciences industry-academic
  collaborations can be utlitized to enhance and
  develop the sector

Biotech Specific Strengths Demands
Competitive Advantage
Strategy Development
Business Concepts
Case Studies Artemis Technologies - Producer and
developer of rabies vaccine/bait technologies -
part of provincial initiative to eliminate fox
rabies from Ontario SEMEX Alliance - Develops
and markets high quality genetic technologies,
products and services to benefit livestock
producers around the world.
Business Cases / Plans
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Introduction
Strategy Process
Outcomes (Thus Far)
What the Future Holds
Opportunities Are Evaluated Primarily On
Alignment with the Regions Comparative
Positioning And the External (Unmet) Needs
Regional Profile
High
Information Technology
Ag-Bio
Biotech Specific Strengths Demands
Animal Biotech
Bio-informatics
Competitive Advantage
Medical Imaging
Environmental Biotechnology
Bio-Manufacturing
Medical Devices
Health Technologies Diagnostics
Comparative Positioning
Strategy Development
Photonics
Business Concepts
Biosensors
Nano-technology
Business Cases / Plans
Low
External Demand
Low
High
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Introduction
Strategy Process
Outcomes (Thus Far)
What the Future Holds
The Demonstrable Strength in Research and
Innovation (Supply) Needs to be Matched by
Comparable Industrial Receptor Capacity (Demand)
Regional Profile
Biotech Specific Strengths Demands
Competitive Advantage
Strategy Development
Business Concepts
Business Cases / Plans
? Weak ?? Neither weak nor strong ???
Strong
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Introduction
Strategy Process
Outcomes (Thus Far)
What the Future Holds
Other Gaps Pertain to Commercialization
Intensity, Coordination of Services Networks,
and Broad Global Recognition
Regional Profile
Ranking of Regional Strengths
Key Cluster Factors
Biotech Specific Strengths Demands
Infrastructure
of Companies/Spin
-
offs
Community
Competitive Advantage
Champions / Networks
RD Activity
Global
Recognition
Strategy Development
Highly Skilled
Labour
Knowledge
Patents, Licensing, Citations
Business Concepts
Talent

Post Docs, Star
Venture Capital /
Financing
Business Cases / Plans
0
-
10
10
Disadvantage
Advantage
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Next Steps
Introduction
Strategy Process
Outcomes (Thus Far)
What the Future Holds
Regional Profile
September - November
Biotech Specific Strengths Demands
International Benchmarks and Best Practices
Areas of Competitive Advantage
Phase I
December - January
Strategy Development
Business Concepts
International Benchmarks and Best Practices
February - April
Business Cases/Plans
Phase II
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If We Identify Our Niche and Drive Aggressively
Towards It
Introduction
Strategy Process
Outcomes (Thus Far)
What the Future Holds

• To quote Wayne Gretzky, Dont go where the puck
  is, go where the puck is going to be

Global Innovative LifeSciences Scene
Anticipate where Canadas niche is going to be in
the future
BiotechScene
Canadas existingniche
Programs/Funds/Solutions
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Create an Integrated Approach to Cluster
Development
Introduction
Strategy Process
Outcomes (Thus Far)
What the Future Holds
PIPELINE TO PROSPERITY
IMPACT
FOUR PILARS
STEPS TO SUCCESS
Bio-Medicine
Infrastructure

• Incubators
• Dedicated research facilities
• Convergent environments (e.g. research parks)

Infrastructure
Commercialization of innovative research

• Niche, focused science
• Technology transfer
• Entrepreneurship

Science Innovation
Integration of the various disciplines within the
health research spectrum
Development of skills

• HQP
• Management
• Technology transfer staff

Human Capital
Cooperation and partnership amongst stakeholders
within the health research enterprise
Branding of Ontario as an international leader
in biotechnology
Capital

• Early stage VC (valley of death)
• Innovative mechanisms of public funding
• Public-private co-investment

Bio-Products
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The Ripple Effect of Canadian Innovation
Introduction
Strategy Process
Outcomes (Thus Far)
What the Future Holds
Attract foreign research contracts to Canada
International market share
Diversified product pipelines
Increased valuation of life sciences companies
Convergence with other sectors
More drug candidates brought to commercialization
stage
Canadas Innovation
Direct and spin-off jobs
Career development in Canada
Industry growth
Commercialization
Cluster creation
Advance compounds in Canada
More spin-off companies
Attract global investors to Canada
More products to market
Canada recognized as leader that supports global
health
Higher valuations for compounds
Attract skilled workers
International experts attracted to cluster
Innovation is more than outstanding research
it is about breaking down traditional silos and
turning research into action
CIHR Submission to Canadas Innovation Strategy,
2002
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Moving Ideas Forward
Strategic Health Innovations 162 Cumberland
Street, Suite 310 Toronto, Ontario, Canada M5R
3N5 Tel [phone] Fax (416)
236-2801 Web-site www.shi.ca