A new business-support program sponsored by the North Carolina Biotechnology Center has combined $50,000 start-up loans with contributions of expertise from regional businesses to help launch spinout companies from two North Carolina universities' research labs.
N.C. A&T State University's first research spinout company, Provagen, was formed to commercialize unique protein technology developed by Dr. John Allen, a molecular biologist and research coordinator at the Greensboro university's Department of Animal Sciences.
Sirga Advanced Biopharma, a spinout from North Carolina State University's College of Agriculture and Life Sciences, is capitalizing on research by Dr. Paul F. Agris, professor of biochemistry. The company plans to use his technology to identify novel therapies for drug-resistant diseases and other difficult-to-treat human health conditions, including HIV and autoimmune diseases.
The companies have won Technology Enhancement and Acceleration Model (TEAM) loans plus legal and financial guidance from law and accounting firms aligned with the Biotechnology Center's new BATON program. BATON is an acronym for Business Acceleration and Technology Outlicensing Network.
Establishing the Programs
The Biotechnology Center established the TEAM and BATON programs to encourage the state's public and private universities and research institutions to start commercial ventures based on patents derived from their faculty research, said John Richert, vice president, business and technology development.
Provagen's technology, based on its patented "Synthetic Protein V," can be used to purify and isolate antibodies that can be used in several disease treatment and diagnostic applications, said Doug Speight, A&T's assistant vice chancellor for outreach and economic development. The firm could employ several Ph.D.-level scientists within the next three years, he added.
The company is housed at A&T, but may move to the new Gateway University Research Park. Speight said the university explored licensing Protein V to several commercial firms before determining that the platform technology would best be harvested through a spinout company.
The technology continues to evolve and now constitutes a portfolio of seven patents. The Biotechnology Center programs dovetailed nicely with A&T's launch plans and accelerated development of the company, he said. Allen and the university will both be shareholders in the privately held firm.
Outside Support Services
One of the initial firms to become TEAM certified stakeholders, the accounting firm of Grant Thornton, is providing services to Provagen. Some other professionals offering their services include:
- Stanislav Antolin of the Smith Moore law firm has also provided services to the firm.
- Jason Wood of Wyrick Robbins Yates & Ponton is contributing legal guidance to Sirga, and Tim Gupton of Hughes Pittman & Gupton is providing accounting and financial services to that company.
- Steven Casey, business development director for the Biotechnology Center, said the startup capital and leadership combination of the BATON program fills a gap that has impeded many spin-out possibilities around the state.
Besides the TEAM stakeholders, BATON provides interim chief executives to help the fledgling companies develop corporate structures, create business and marketing plans and take care of other activities that require specialized skills and time. The entrepreneurs serving as interim CEOs also gain valuable experience.
Cindy Clark, former president of Durham-based Phase Bioscience, which is commercializing technology discovered at Duke University, was initially an interim CEO at Sirga, but has since been retained as the company's CEO. Hugh Crenshaw, CEO of Headlight Ventures, is serving as interim CEO at Provagen.
Casey said Biotechnology Center representatives are encouraging bankers, lawyers and other service providers across the state to join the TEAM program so they can access information on their regional spin-out technologies and opportunities.
"Registering for the TEAM program gives service companies a foot in the door of new and potentially groundbreaking biotechnology-related discoveries," Casey said. "By making that initial commitment to provide start-up support, a service provider can take an active role in the future development of that corporation."
More Information
The Biotechnology Center is a private, non-profit corporation supported by the N.C. General Assembly. Its mission is to provide long-term economic and societal benefits to North Carolina by supporting biotechnology research, business and education statewide.
