Transcript Slide 1

PARTEQ Innovations
PARTEQ’s mission
• Protect and commercialize intellectual property generated
by Queen’s
• Enhance and foster linkages between the university
research community and industry
• Provide advice and assistance on matters relating to
intellectual property (IP) matters
Organization
Pres & CEO
Admin Asst
VP Intellectual
Property
Patent Asst
VP Finance &
Admin
Manager
Patent Agent
Patent Agent
Finance Analyst
VP Commercial
Development
Manager Life
Sciences
Manager
Chemistry &
Materials
Manager
Director
Communications
Director
Engineering & IT
Manager
EIR
The PARTEQ Model
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Focus on protection and commercialization
Customer driven – need to want our service
Focus on value-added development of intellectual property
Manage the process
Capacity to take risk
Innovate
Close to industry
Funded by operations – we cover costs and return ‘profit’
Now expanding reach to service other institutions
Use new venture creation to facilitate investment
• We have founded leading companies in different fields
• We have funded early stage companies in different ways
• We have provided service to our companies
An innovative approach
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First to incorporate internal patent group (1984)
First to build and manage spin-off companies (1988)
First to manage a captive venture fund (1999)
First to develop mechanisms for employee incentives
(2003)
First to develop a Treasury Division (2006)
First to create and manage a training fund for business
students (2006)
First to host and manage an NCE (2009)
First to create a Property Holdings company
Queen’s-generated product: Levulan™
• Photodynamic therapy to treat various
forms of skin conditions, cancers and
other diseases
• FDA approved, launched in 2000 for the
treatment of actinic keratosis
• Clinical studies underway for treatment
of acne, nail fungus, warts and Barrett’s
esophagus
• Licensed to Dusa Pharmaceuticals
• raised over $120 million to date
• over $50 million sales to date
Queen’s-generated treatment: Taxol™
• Prescription medicine sold by BMS - used
to treat ovarian, lung and breast cancer
• Major breakthrough was a method of
administration developed by a Queen’s
researcher
• Over a million patients treated
• Sales > $14 billion
Why Do We Create Start-Ups?
• Vehicle through which to add value
• Allows you to raise $$ and provide return
• Allows you to have more control over development
program
• Provides a means to attract government funding
• Provides a means to take advantage of programs like
business plan competitions
• Allows you to recruit management and service support
• Means to get return other than from licensed technology
• Visible mechanism to drive economic development
What Are the Criteria for a Startup?
• Elegant solution for a big problem = big market
opportunity
• Strong IP potential
• Ability to raise $$
• Engaged and informed PI
• Ability to attract strong management
• Infrastructure to support
When Do You Use the Startup Tool?
• When you have no other option
Nanometals Corporation
• Process for depositing nanocrystalline metals
• Could not find a licensee without proving applications for
the technology
• Development contracts and licenses through the company
• Merged with Ontario Hydro - formed Integran
Technologies Inc. in 1999
• Purchased by Mosaic Capital in 2003
• RBC’s Canadian Innovative Business of the Year in 2007
Masters 2008
When Do You Use the Startup Tool?
• When you have no other option
• When it is the best possible option
Neurochem Inc. (now Bellus Health)
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Elegant solution for large problem
$$ plentiful
Bundled technologies
PIs were engaged
1994 - Initial capital $1 million @ $1 per share
1996 - Moved to Quebec
2000 – $36.8 million IPO – largest in Canadian biotech
sector
• April 2004 – $36.55 per share; market cap > $1 billion
VIVIMIND™ - A natural health product
Neurochem Inc. (Bellus Health)
When Do You Use the Startup Tool?
• When you have no other option
• When it is the best possible option
• When PI insists on the option
Performance Plants Inc.
Performance Plants Inc.
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Two PIs wanted more research $$
Search for IP
Initial investment of $1.5 million
Cumulative investment $50 million
One of leading plant genetics companies worldwide
Equity play
The Microinverter
• Miniaturized DC to AC voltage converter
• Permits individual monitoring and control of each
panel
• Increases efficiency, system effectiveness and
safety
The Microinverter Opportunity
• 500% growth in sales of microinverters in 2010
• Forecasted to double on average every year to 2015
with revenue in 2015 of $1.3 billion
• Predicted that 45% of microinverters will be shipped
in combination with a module by 2015
• Microinverters are HOT
• Inverter companies
• Enphase IPO
• GE, Siemens, SunEdison
SPARQ is Different
Hardware versus
Intelligent Software
SPARQ’s smarter ultra reliable
Microinverter technology is built
with long lasting hardware
components driven by advanced
software based algorithms.
All competitive Microinverter
technology companies utilize
conventional hardware based
topologies….
What Does the Market Want?
• A microinverter that matches 25-year reliability
of the PV module
• Lightweight, small-size smart microinverter with
ability for cost reduction
• Module integration without junction box and
mechanical support
• Smart grid compatible
Issues
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Product development within lab
BOM control
Manufacturing cost
Unexpected delays in UL certification – what can go
wrong, will go wrong – forgot to list
• Keeping talented people motivated
• Discrete units or development of future product
• Where is the money?
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Current Situation
• BOM now under control
• POs - problem is manf
• Cost reduction program
• Enphase big head start in cost reduction
• When does diff advantage become advantage?
• When to launch AC Module?
• Crowded market problems
• How to finance?
Laser Depth Dynamics
• Technology using in line coherent imaging to detect, in
real time, the depth of penetration of a laser
• Patent protection filed
• PARTEQ and OCE POP $$, Atherton Award
• PhD student inventor – thesis submitted
• PARTEQ EIR engaged
• Martin Walmsley Award
• Company incorporated, founder $, IRAP, sales
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Virtual Mode
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Need to maximize value before or so you can raise money
Need to manage development
Keep overheads down as much as possible
Keep internal and use POP
Incorporate to bring in money and/or resources
Use IRAP, equity and debentures to get resources to add
value
• Incorporate to get SR&EDs and finance them
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BKIN Technologies
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PARTEQ provides IP management
PARTEQ provides financial management
PARTEQ provides communication management
PARTEQ funds CEO as ½ time (debt)
PARTEQ provided initial line of credit to start and now
guarantees a $250K line of credit + corporate credit cards
• Development work done at Queen’s under contract (reduced
OH)
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Why and When Did We Incorporate?
• We wanted IRAP
• We were selling units and wanted profit directed to
development
• We wanted SR&EDs
• We were commercial and needed separation from lab
• Instituted proper governance when we accepted funds
from venture fund
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When Do You Use the Startup Tool?
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When you have no other option
When it is the best possible option
When PI insists on the option
When the market gives you the option
When that is your important metric
When you have a proven management team
When Do You Not Use the Startup Tool?
• When the PI relationship is unpredictable
• When you cannot raise enough $$ to hit the next
value inflection point
• When you need more short-term revenue than the
startup option will support
• When you have something that is clearly incremental
What Are the Criteria for a
Successful Startup?
•Elegant solution for a big
problem = big market
opportunity
•Strong IP potential
•Ability to raise $$
•Engaged and informed PI
•Ability to attract strong
management
•Infrastructure to support
•Staying power
•Persistence
•Capacity for risk
•Flexibility
•Good timing and luck
Can university startups deliver real
impact?
The Top 10:
1. ACELP – Université de Sherbrooke
2. Taxol – Queen’s University
3. Lamivudine – University of Alberta
4. Open Text – University of Waterloo
5. Quantum Canola – University of Alberta
6. Visudyne – University of British Columbia
7. Drug-eluting stents – University of British Columbia
8. Wi-LAN – University of Calgary
9. WebCT – University of British Columbia
10. Cystic Fibrosis gene – Hospital for Sick Children
Have we made an impact?
• 47 spin-off companies
• Approx $1.2 billion raised by spin-offs to develop
technologies
• More than 800 jobs created
• Return of $30 million to Queen’s and its inventors
• New products and services improving the life of many
people
• Trained entrepreneurial management talent
PARTEQ Innovations
GreenCentre Canada
• Physical infrastructure for development of green chemistry
discoveries
• Industry led – governance and disclosure screening
• Pull from national discovery base
• Management agreement with PARTEQ
• Budget of approx $8 million per year
• 27 people
• First Spinoff SSI
 New model of university technology transfer
 New model of university/industry interaction