Interface Biologics: An Ontario success story
DESCRIPTION OF THE COMPANY
Interface Biologics, a University of Toronto, University of Toronto Innovations Foundation and Materials and Manufacturing Ontario, a division of OCE Inc. spin out company, develops leadingedge medical devices that incorporate biopharmaceuticals and therapeutic agents. The focus isto build bioresponsive materials that are engineered for controlled drug delivery and tissue engineering applications. The Company is applying novel polymer technologies to modify existing products that will increase blood and tissue compatibility, establish the timely release of drugs in vivo, and stimulate tissue regeneration for a broad-spectrum of biomaterials and devices including catheters, wound dressings and vascular stents. For more information, please visit www.interfacebiologics.comYEAR ESTABLISHED
2001LEADER INTERVIEWED
Paul Santerre, Founder and Chief Scientific OfficerPROBLEM THAT THE COMPANY ADDRESSES
The need for healing diseased tissues and preventing infections at in-vivo sites where implant devices are used.SOLUTION TO THE PROBLEM
Creating smarter biomaterials through material enhancement with bioresponsive function, controlled drug delivery, and tissue engineering.ACHIEVEMENTS & MILESTONES
- December 2001 – Interface Biologics founded with $1 million in seed capital
- December 2002 – Second round of funding for $1 million in capital
- September 2004 – Third round of funding by a consortium of private equity companies for $10 million
- August 2005 – Interface Biologics appoints Richard Sullivan as CEO; moves labs and offices to MaRS Discovery District
Q&A
1. What was your motivation for conducting the research that led to the creation of Interface Biologics (IBI)? Were you thinking about industrial applications? Or was your research based on pure curiosity?My research theme focused on how to control the biodegradation of polymers in the body, so the initial research was driven by pure curiosity. Since my research was funded by public money, I felt that my role in conducting the research was contributing as a university investigator, rather than as an entrepreneur.
2. When you started your research, did you intend to start a company? Did yourealize that your company was commercially useful?
I had realized that my research had useful applications in controlling biodegradation. As a Chemical Engineer by training, I was thinking of ways in which my research could be applied. My motives were to control specific biological events happening to a biomaterial at an implant site rather than starting a company from the outset.
3. How have you handled the transition from lab to company? Who did what and how long did each stage take?
I had asked myself what I wanted out of my involvement with the company. I decided that my interest was to see public money well spent. My second objective was to provide jobs for Ontario and Canadian students. Interface Biologics now has 11 employees, 10 of which are Canadian and three of which are originally from my lab. For some people, obtaining profits may be the ultimate objective, in which case their degree of involvement in the company would have been different than mine. Once I had decided that my objective was to see public money converted to economic growth, I knew that I would not stay with the company as it continued to develop since the skill sets neededto achieve this would be different than those that I had. In the transition from the lab, I worked closely with two associates: Jeanette Ho, who was responsible for coordinating day-to-day research and development activities, and Mark Steedman, who was responsible for business development to create a business plan after we received our first round of funding.
Initially, the company was incubated at the University of Toronto as we worked to meet our research and development and business plan objectives. The third stage of funding was critical in helping us to transition out of the university laboratory.
In January 2005, we moved to a different space within the University’s Department of Chemistry to separate my labs research activities from those of the company. A grant from the company allowed us to take on grad students to work in my lab on more basic research topics related to the technologies. We found that keeping IBI close to the university helped in providing critical infrastructure to the company, but the amount of space at the university was limited, especially as our company grew and hired more employees.
In August 2005, we moved our lab and office space to MaRS and hired a new and experienced CEO, Richard Sullivan. Along with having the right people and a great technology, luck and timing were critical to our success since we received our third round of funding at a significant point, which enabled us to accelerate prototype development on products, as well as expand our operations in MaRS.
4. How did you decide who did what in the company? How did you decide what role to take?
As I have mentioned, I knew that my objective was to remain in the University, to teach and carry out research. Initially, I did what was required to start the company, learning about commercialization and the process of moving the science from the lab to the market.
I would suggest that any researcher thinking about commercializing technology ask himself or herself what objectives he or she has in commercializing a technology. Are these objectives to make money from the technology and leave the research environment? Or are they to see the technology developed, but play more of a consultant role? I knew from the outset that I wanted to remain at the University, and I made my choices accordingly in bringing on business development expertise and, eventually, a new CEO to manage the company. I initially took the role of the Chief Scientific Officer and President, but now I am solely in a chief scientific consultant role.
My experience in transitioning the company from the lab taught me some of the logistics of creating a business, including management of intellectual property, raising capital, and how to work with the university and other organizations and people to develop a company. I did not attempt to create the company in isolation from other people, and I think that this has been critical to my success.
I can now share my experience with students and colleagues who wish to commercialize their technologies. I have also gained valuable management experience, which is very relevant to my role as Associate Dean of Research at the University of Toronto’s Faculty of Dentistry.
5. What agencies/organizations did you find helpful in transitioning from the lab to the market? What support would you have like to have seen?
I found the Innovations Foundation to be very helpful in transforming research into a form that was suitable for the market. I also found the Ontario Centres of Excellence and the Materials and Manufacturing Ontario Centre to be particularly helpful in every step of commercialization, providing grants for various aspects of commercialization.
I also received support from the National Science and Engineering Research Council and the Canadian Institutes of Health Research. Capital from Genesys Capital Partners and the assistance of the investors were active in shaping the strategic direction and vision of the corporation. Subsequently, our most recent investors – VenGrowth Capital Partners, the Business Development Bank of Canada, and Genesys Capital Partners through the New Generation Biotech Funds – were essential to our continued success.The Faculty of Dentistry and the University of Toronto were also very helpful as the company was developing.
One resource that would have been helpful in our growth was access to a facility that is an incubator for very, very early stage spin-off companies from the University, operating on an annual budget of $1 million, with very limited resources for space.
As well, it would be helpful to see a larger number of early-stage venture capital firms that would be willing to finance the $1 million to $5 million gap for research and development, and business growth.
6. How did you draw on external resources and how important do you think it is to tap into such resources?
Communication is absolutely essential in drawing on external resources. You must build a community through communication. Since many grants today provide an opportunity for collaborative research, you can engage in work with a number of primary investigators at various organizations and institutes. As a faculty member, I am cross appointed between the Faculty of Dentistry and the Institute for Biomaterials and Biomedical Engineering Department at the University. I am also affiliated with the Departments of Chemical Engineering and Applied Chemistry, and Material Science Engineering. In my initial research that led to the creation of Interface Biologics, I networked with my colleagues in the United States, as well as several Canadian Institutes Communication is a skill that you can learn. What has made good collaborations from my perspective are the following:
- Honour commitments to collaborators, as much as possible;
- Be very judicious in assessing collaborators and resources to make sure that partnerships have a mutual benefit;
- Establish networks on which you can draw for support.
7. What advice would you give to a new startup?
First, believe in your ideas and in your technology. If you have any doubt in your ideas, you may very well be wasting your precious time in developing them.
Second, make a plan and decide what role you would like to play in the company five years from now.
Third, identify a few people who you can trust, including researchers, employees, and investors, and work with these people to commercialize your technology and develop your business. The trust element is key since if your activity at the University is maintained you will not have the time to double check all aspects of the company’s activities.
Lastly, believe that your world will conspire to help you achieve your start-up initiative.
