Dr Jane Watkins

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Opportunities and Challenges for SMEs (2)
Dr Jane Watkins UK NCP for SMEs FP7UK
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Framework Programme VI - third call
The View from a Small-Medium sized Enterprise
(SME)
Stem Cell Sciences
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Agenda

• Background to Stem Cell

• SCS Framework VI participation (x2)
• Views for considering FP VI participation
• Motivation and benefits
• Pitfalls and risks
• Requirements for participation and success

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Stem Cell Sciences Ltd
SCS is participating in two FP VI programs
FunGenES
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FunGenES

• understanding the function
• of genes in development
• disease

through the development and application of mouse
ES cell-based technologies
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• Mission

To provide widespread clinical benefits from
embryonic stem (ES) cell-based technologies

• Business opportunities

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FunGenES Consortium
19 different institutions
6 European countries
3 SMEs, 1 big pharma
8.5 million over three years
Co-ordinator Juergen Hescheler (University of
Cologne) Administration ARRTIC
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EuroStemCell

• building foundations
• for regenerative medicine

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EuroStemCell Consortium
27 Research Groups
14 European institutions
3 SMEs
11.9 million over four years
Co-ordinator Austin Smith
Deputy co-ordinator Anders Bjorklund
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FP VI - the view from a SME
Two ways of viewing FP VI participation
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Research fundingStrong networking/interactionTec
hnology access Technology development/new
IPSecuritise existing IPBasis for further
programs
FP VI - the view from a SME
vs
Risk pitfalls
Motivation benefits
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Research fundingStrong networking/interactionTec
hnology access Technology development/new
IPSecuritise existing IPBasis for further
programs
FP VI - the view from a SME
vs
Risk pitfalls
Motivation benefits
Contingent liabilityTime consuming / complex
Free licensing of your IP (theft) Co-ownership
of IPcompetitors? Loss of business . IP
improvements?Basis for legal disputes
Done properly. the benefit outweighs the cost!
Take a leadership role.
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FP VI - the view from a SME
Summary

• Framework Programs are a valuable opportunity for
  European SMEs
• SCS considers FP VI vital to the EUs competitive
  position in a global market
• Dont participate in the pie bake the cake!

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Case study Building a successful company from
European Commission funded programmes

• Arc Therapeutics

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• FP 5 90,000 ecu
• FP 6 250,000 ecu
• Eurogene founded
• 2 patents
• Ark Therapeutics
• London Stock Exchange
• 4 clinical trials
• 1 marketed product

• 1995
• 1996
• 1997
• 2004

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Founding a biotechnology company

• Idea
• Results
• Patent
• Money
• Leadership
• Organisation
• Luck

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Patent

• Use of VEGF when delivered to arteries to inhibit
  intimal hyperplasia

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Money

• European Commission
• Venture capital

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European dimension

• UK Idea, leadership, animal model
• Finland Vector and gene science
• Germany VEGF biology
• Italy Measurement and pharmacology
• Finalists Descartes Prize 2004

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Problems in exploiting European academic
intellectual property

• University technology transfer
• Lack of understanding of patents
• Lack of understanding of a new model
• 1. academic creative independence
• 2. commercial focus of biotechnology
• 3. integration of 1 and 2
• 4. income for university

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Problems in exploiting European academic
intellectual property

• Ambiguity concerning Europe
• Lack of understanding of globalisation (China)
• Lack of confidence by the European Commission

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Future

• European Commission research budget needs to
  expand
• Political action necessary by universities,
  professional bodies and industry
• European Commission needs to be more proactive,
  e.g. by identifying different groups of
  researchers who might form a balanced company
  funded by the European Investment Bank

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Conclusion

• Quality ideas can be generated in Europe
• Confident action needed