Introducing Product-on-Demand Biological Research Reagents

The general order of operations in the bioreagent industry begins with a developer observing or forecasting a need and developing a product. The supplier then supplies that product to customers by showing that the product will suit their existing needs. An alternative order in our industry is after a new discovery in the form an enzyme reaction mechanism, affinity binding, or biological system is made in lab, someone realizes that discovery could be made into a product. If the idea is picked up by a commercial R&D team, the underlining mechanisms of the discovery are then exploited for particular use and reagents or kits will be built around it. The new products are introduced to the market by convincing potential users that they will make their research better, cheaper, or faster.

From a supplier’s point of view, if the current processes for developing new products have been working, what’s the incentive to change? From a researcher’s point of view, well, do they have any other choices? If something is not commercially available, someone will just make it in the lab if they need it. Some of us still remember the days when a graduate student needed to make his own restriction enzyme because NEB didn’t sell it. However, there is a disconnect between how much new knowledge is being gained every single day in tens of thousands of labs and how small a portion of that knowledge pool is being turned into more powerful tools to make the next round of research easier and more cost-effective. For instance, when an important gene’s promoter is recently defined by a functional study in 293T cells, how soon do you expect to test the signals that influence transcription from that promoter in the primary cells you are working on? Wouldn’t it be nice if you could simply buy a vector that will express a promoter-driven reporter ready to be introduced into the primary cells in your lab instead of having a graduate student design, construct, learn and try to make a lentiviral vector in the next few months?

And yes, there is the route called custom projects provided by a few bioreagent companies. The prices are often inhibiting for the reasons that the price needs to cover for labor on industry pay scale, materials, indirect, and profit. Additionally, since the service provider does not take ownership of the product, the work of researching the relevant pathways and making construct designs is left to the user.

There is a better way. A company can plan product groups, lines, and packages based solely on the demonstrated importance of a system such as signal pathway or a family of molecules like miRNA. The plan can project to use the most advanced technologies, even accompanied with full product descriptions and vector maps. However, it would be a great waste of money and material if nobody would ever need it, right? One way of dealing with the initial cost is that we make the first kit upon the first order. The customer that places the first order of a new product will get a deep discount off the shelf-product price on what used to be a custom project. They might even have the opportunity to provide input on the product design prior to production. From a supplier side, we will benefit by having an opportunity to initiate a new product without major investment, which in turn would keep our overall prices low for such innovative and advanced products.

This model should help speed up the commercial application of any new biological findings, lower the cost and price of bioreagent products, and encourage interaction between researchers who normally do not work with each other to produce better products for increasing the efficiency of research.

Discount of the week 060110-060710: Any virus packaging project initiated this week gets additional 10% discount that can be used with first time discount and other pricing advantages. http://www.allelebiotech.com/allele3/Services_Lentiviral_Retroviral_Packaging.php

New product of the week 060110-060710: Columns for Miniprep and Gel Purification, ABP-PP-COLM100. If you can make your own buffers or have leftovers from any miniprep or gel purification kits, get these high capacity columns and lower your costs by up to 70%!

Tags: bioreagent, biotech, biotechnology, Clontech, EMS, Invitrogen, kits, Merck, Millipore, NEB, promega, reagents, research field, Roche, Stratagene, tools

How I started my company and why–Inaugural Event by San Diego Entrepreneurs Exchange (SDEE)

For current graduate students, postdocs, and holders of other “in-transient” positions in bioscience-related fields today, a persistently resounding question on our minds is “What path should I follow at the end of a long and ragged journey of training?” Interestingly in our industry, like downhill skiing you see in the Winter Olympics, once you start one path it is not an easy switch to get on another.

Many of the Ph.D.s in biomed share the general view that an independent research position typically at an academic institute or non-profit organization such as San Diego’s local Salk, Scripps, or Sanford—Burnham, is the goal of the many years of training. Others soon realize that there are numerous research jobs at biotechnology and pharmaceutical companies that will make good use of their expertise, experience, and unique background knowledge in a particular field. And of course there are those who “defect” to different industries that may or may not directly relate to their extensive experience in wet labs, such as working in intellectual property laws, clinical trial management, biomedical sales, business development and management.

Research in major pharmaceutical companies (big pharma) normally focuses on a project with set goals, milestones, and layers of monitoring and management. That is how a large team can function together and get the tasks done in a timely manner. Working in smaller biotech companies can be much more flexible, researcher-initiated, and in many ways fun. On the other hand, you will be required to do much more than reading papers, designing experiments, obtaining and interpreting results. Starting a small biotech company is by no means an easy path to take, but if done correctly with some luck and a lot of determination, it can be a very rewarding career. You will get to utilize to the maximum extent of all your intelligence, knowledge, vision, and personal relations. You also have the opportunity to do real cutting-edge research in various areas, and see the fruits in journal publications, grant awards, as well as in the wild wide market.

The San Diego Entrepreneurs Exchange (SDEE) was founded by local San Diego entrepreneurs in order to provide a voice for the early stage technology startup, to encourage new entrepreneurs, and to sponsor networking and educational events that help develop the skills necessary to bring funding and business to the San Diego area.

The inaugural SDEE event to be held Wednesday March 10th at 5pm. It will help answer some of the questions you may have been thinking about regarding starting or working in a startup biotech company. Allele Biotech’s founder and CEO Dr. Jiwu Wang will be among the speakers. Ten years ago Dr, Wang was a postdoc at UCSD with an NIH fellowship, right before he started Allele with a number of NIH small business innovative research grants. He will talk about the ultimate “academic freedom”–doing any research you want but completely at your own risk– as the reason to start a technology-focused company, and the lessons he learned the hard way about running a lab vs organizing a business. Other speakers include CEOs from a number of San Diego biotech companies with great stories to share with postdocs and others. The talks will be brief yet informative, and on-site interactions are encouraged. The Sanford-Burnham building 12 is outside the main campus, with plenty of free parking. Click here for more details about the event. http://www.allelebiotech.com/allele3/SDEE-First-Event-Announcement.pdf (at AlleleNews). Let us know if you are coming by emailing to events@sdentrepreneurs.org

New Product/Service of the Week 02-15-10 to 02-21-10: Viral shRNA design and packaging services, packaging 2ml virus at 10e8 TU/ml for less than $1,400.

Promotion of the Week 02-15-10 to 02-21-10: FREE spreading beads (ABP-CE-CCCSB100, 500) to go with any competent cell order.

Tags: biotech, biotech careers, biotech jobs, biotech startup, pharmaceutical companies, postdoc jobs, research positions., San Diego Entrepreneurs Exchange, SDEE

Competition from the Marketplace to the Courtroom

The hottest subject in the biological research equipment field has to be whole genome sequencing; hence it is no surprise that companies execute mergers and acquisitions in order to position themselves to go after their competitors in an attempt to corner this valuable market.

A bit of the background history: Illumina was started a decade ago to build DNA chip arrays by people with experience at Affymetrix, when the latter was the first and absolute leader in the DNA chip field. For years, rather than providing DNA chips, Illumina was known for generating revenue by selling oligonucleotides at 20% of the prevailing market price, essentially starting the low end oligo market. Just three or four years ago, it was a front page promotion on Invitrogen’s website to sell Illumina’s oligos through a production/shipping alliance, a cooperation previously unheard of in our field for such low price, non-commodity products. This move quite probably contributed to the decisions made by the more dedicated oligo company, IDT, to acquire local oligo production houses and move to the West coast (Allele opted out of such an acquisition and later did one of its own by taking over Orbigen and since moved into the viral systems and antibody fields). At that point when whole genome sequencing technologies were becoming mature and marketable, Illumina had performed brilliantly in out competing the previously dominant chip supplier Affymetrix, acquired Solexa, and quickly moved into the whole genome sequencing with Genome Analyzer and Genome Analyzer II, a move Affi’s management probably regretted not making.

In the years roughly around 2005-2007, Applied Biosystems, Inc. (ABI) was developing its own genome analysis equipment, the SOLiD system. It surely had a solid base to build on from its strong leadership in providing sequencer and analyzers for many years. Earlier in the year Invitrogen and ABI merged to form Life Technologies, pitching Invitrogen (now LifeTech) and Illumina in a collision course in battle for dominance in genomic analysis. In September, LifeTech brought suit against Illumina for patent infringement; in October Illumina countered with suits of its own. While the fight in court may be long and only sprinkled with occasional fireworks, the competition in the market could be fierce and should ultimately decide on whose technology is superior and offered at better prices. From the technical presentation made by sales teams to us during on site seminars, Solexa’s science sounded better. I was sitting next to Jay Flatley, CEO of Illumina at a San Diego biotech CEO dinner, and heard him predicting that the technology would advance and in a few years, one could get their own genome sequenced for about a thousand dollars, ~10% of the current cost! That’s simply innovation and competition at work. But watch out, a new wave of sequencing technologies based on single molecule capture might make the Illumina and LifeTech courtroom argument a moot point in the market.

Tags: biotech, Genome Analyzer, Illumina, Life Technologies, oligo, SOLiD, whole genome sequencing

Meeting with Congresswoman Susan Davis’ Staff on Small Business Grants

Allele Biotech’s CEO Jiwu Wang participated in a meeting between a local biotech business organization “SBIR San Diego” and a representative of local Congresswoman Susan Davis. We had the opportunity to explain our positions on government funding for small business, particularly in the biotech area. We want to see that the SBIR law be extended in its form that is most aligned with its original intention of helping small business innovative research that would not have been otherwise possible.

As one of the participating SBIR members who told each company’s own “story”, Dr. Wang described that Allele Biotech was founded by 5 SBIR grants in 99 when he was still a postdoc at UCSD. Dr. The grants helped the company make its first product and deal by securing patent positions in one of most important research fields in the last decade, RNAi, and out-licensing the rights to Promega. Allele Biotech has since developed its own marketing and sales force, reinvested in formulating viral based RNAi with state-of-the-art fluorescent markers. Allele is currently waiting to start a phase II SBIR project for the NCI on cancer diagnostics.

Coinciding with President Obama’s announcement of federal programs to help small business today, the meeting had an overtone reflecting the general mood about economy’s direction in the nation. Like many research-oriented biotech companies, Allele’s scientists plan to apply for the Stimulus funds through the NIH’s Challenge Grants, in the areas of induced stem cells (iPS) and cancer stem calls (CSCs), which are Allele’s next new product line focus.

Tags: biotech, Challenge Grants, innovative research, NIH grants, San Diego, sba, SBIR, small business, stimulus package, Susan Davis

SBIR Program in Danger of Dissolution

By a process of stealth evasion of detection, a sentence was inserted by yet unknown congress persons, SBIR & STTR were expressly stricken from the NIH portion of the stimulus bill just signed into law by President Obama, effectively removing almost $250 million in SBIR/STTR award funding that is badly needed by hundreds or even thousands of companies.

There has been a sentiment among academic colleagues that removing the SBIR/STTR programs will give 2.5% more money to university labs. That is probably a shared view by most professors; exceptions may include those who also function as PIs on STTR projects (STTR was created to allow for such cases) or consultants on SBIR projects through companies they often co-founded. For graduate students and postdocs, who may agree with such view because they too want more grant money to the labs, it is also important to know that a majority of the students and postdocs will work for SBIR supported or eligible companies. Biotech industry has never been a labor-intensive industry and therefore, even more than the 80% of general US population who are employed by small businesses, workers in this industry are likely to have a small business as their job provider. And there is nothing wrong with that—small companies are still the engine for innovation and model for efficiency and flexibility.

On March 20, just a few weeks from now, the SBIR program may stop to exist if a law that created it is not renewed. There are strong head winds for its renewal from special interest groups that want the money to be spent on large companies or venture-backed companies, because they are in need of cash infusion these days. SBIR is at risk. Considering the thousands upon thousands of layoff by the big pharma players in just the last few weeks, it is not difficult to understand their difficulties. The question is how effective the money can be used to provide jobs and create new areas for development.

If you want to have your voice heard, you can look up your congress representative or senators to tell them what you think. If you are going to do it, do it now.

1. Call your Senators, both their local and DC offices.
http://www.senate.gov/general/contact_information/senators_cfm.cfm
2. Call your Representative, both their local and DC offices.
http://www.house.gov/house/MemberWWW.shtml
3. Go to their web sites and use the email or webmail links to send them your message.

Tags: biotech, economy engine, economy recovery, government contracts, government grants, grants, jobs, NIH, research funding, SBIR, SBIR at risk, small business, small business innovative research, stimulus, STTR