Taking the next big step: biotechnology commercialisation

Murdoch has developed world class strengths in biotechnology-related agricultural, environmental, and biomedical research.

Effective commercialisation of these biotechnologies is necessary to deliver the substantial economic and social benefits that they possess.

There are more than 100 biotechnology drug products and vaccines already in the market, which are designed to treat cancers, Alzheimer's disease, heart disease, diabetes, multiple sclerosis, AIDS, and other conditions.

One biotech-based pharmaceutical, erythropoietin, generated world-wide market sales in excess of $A5 billion in 1999, which was equivalent to the total world export sales of Australian gold in that year1 .

Notable biotechnology commercial-isation successes at Murdoch in 2002, include the spinout of a joint-venture company, Paragen Pty Ltd, to conduct R&D into the development of a subunit vaccine for the common cat flea and a preliminary agreement with a Japanese multinational corporation to commercialise a novel Cryptosporidium diagnostic test.

Paragen Pty Ltd (ACN 101 213 405) is an example of proactive commercialisation by Murdoch and highlights the importance of pre-seed funding.

Researchers in the Division of Veterinary and Biomedical Sciences at Murdoch have been working on a novel vaccine against the common cat flea, an external parasite of both cats and dogs.

With the strategic investment of nearly $100,000 of pre-seed University funds, the researchers had developed the Novel Flea Vaccine (NFV) project to a point where more funding was required to advance it to the proof-of-concept stage where in vivo testing could take place.

Consequently, the University located and entered into an agreement with an investment syndicate, Brightsun Investments Pty Ltd ("Brightsun"), to spin out a joint venture company, "Paragen", to continue the development of the NFV.

Paragen will own all of the research intellectual property rights in the NFV project. Brightsun have negotiated the right to subscribe for 50 per cent equity interest in Paragen, subject to Brightsun's payment to Paragen of a total of $781,000 in tranches over two years.

This funding is in turn subject to Brightsun's acquisition for $1.6 million by a publicly listed company, Vostech Limited (ACN 009 179 551), and Vostech's successful entitlement issue to raise over $1 million for working capital.

This case demonstrates the need for and judicious use of pre-seed funding to take University spin-offs to the next stage for investor readiness.

Murdoch's approach to the commercia-lisation of its intellectual property (IP), including biotechnologies, is characterized by three broad approaches: assignment; licensing; and joint-venture spin out companies.

Murdoch seeks to maintain a balanced IP commercialisation portfolio, with the most commercialization activities occurring through assignment and licensing with selective projects moving through to spin-out joint venture companies.

To assist in identifying potential areas for IP protection and research commercial-isation, the Division of Research and Development in conjuction with independent outside consultants, TCG Pty Ltd, undertake an annual Commercial Opportunity Audit at Murdoch.

The 2002 Audit is scheduled to commence in August. For more details please contact Dr Donna Dabala, Manager, Industry Liaison Office ddabala@central.murdoch.edu.au.