How to make money in bio-technology’s golden era

Professor Janice Kiely, award-winning bio-sensing pioneer and a Royal Academy of Engineering Enterprise Fellow, explains how biotechnology researchers can tap into the commercial value of their ideas

There has never been a more exciting time to be a UK biotech entrepreneur. In 2014, venture capital funding for UK biotech companies jumped 71% to $430 million (approximately £276 million). Money raised by UK biotechnology companies through stock market flotations also soared to £408 million, almost half of the total IPO haul for the past decade, demonstrating unprecedented confidence in British research innovations. Meanwhile, the Dowling Review, a report authored by Dame Ann Dowling, President of the Royal Academy of Engineering, recently found that bio-tech giants Pfizer and Glaxo-Smith-Kline engage in more research collaborations with UK universities than companies in any other sector of the economy.

Clearly, there are great opportunities for biotech researchers looking to commercialise their developments. I have spent the last 3 years navigating the complex and exciting journey from academic to entrepreneur in this field, mining research for its commercial potential, winning investors’ confidence and working through the labyrinth of medical and biotech procurement processes. It has given me valuable insight and experience that I hope could help other UK researchers take their world-leading bio-technology research from the laboratory to the marketplace.

Developing the technology I preceded my academic career by studying for a degree in electronic engineering, and later joined the University of the West of England as a lecturer in measurement and instrumentation, researching fields as diverse as power systems and semiconductor device design.

I realised that measurement and instrumentation had many groundbreaking applications in the field of biotechnology, such as harnessing biological organisms to rapidly detect the presence of dangerous substances. In the course of my research, I discovered that magnetic particles could be used as part of an immunoassay to spot contaminants in meat with unprecedented ease and speed.

Using this method, a sample can be placed into a reaction vessel containing magnetic particles coated in an antibody. If a contaminant, such as salmonella, is present in the sample then it binds to the magnetic particles and a magnet then pulls these binded particles down onto the surface of the test kit. The number of the particles on the surface indicates the concentration levels of the contaminant in the sample. The vision was to create a low-cost, handheld ‘point-of-test’ system, to check meat for contaminants that could be used at any stage in the supply chain from slaughterhouses to border agencies.

The road to commercialisation I subsequently spent 10 years working with biochemist Professor Richard Luxton, combining our expertise to develop the technology. After several years of development we began to receive industry interest and offers from other companies to license the technology, but I chose to take the plunge by starting my own company, MIAtech Biosolutions Ltd, to bring the innovation to commercial fruition myself.

The first challenge with commercialising any research discovery that has a vast array of possible applications, is to find the unique selling point with the biggest commercial potential.

We initially examined the use of the technology to test for multiple pathogens, including salmonella, and discovered that over 260,000 samples are tested each year for contaminants. Yet, while our technology was more effective than the testing methods currently used for those purposes, it did not represent a big enough step-change to create a viable market opportunity. Then, after carefully researching the market, attending networking events, and speaking to meat industry experts, we made a major breakthrough.

Identifying the market driver We discovered that EU Directive 96/23/EC sets tough limits for levels of antibiotics in food products, which has spurred a £200 million market for antibiotic residue testing. This is because growing use of antibiotics in farming to prevent animals contracting certain diseases creates a risk that these antibiotics could make their way into the meat, and ultimately contribute to antimicrobial resistance in humans.

We found that the current method of food testing for antibiotic residue, using mass spectrometry, is slow and painstaking. It involves sending samples away to a central lab because the tests are cumbersome and use harsh chemicals to break down the meat, which cannot be safely used on-site. This means that, because the test results take several days, the meat that test samples are taken from is often put on sale while still awaiting results, putting consumers at risk. By contrast, our ‘point-of-use’ test kits are hand-held and safe, which means slaughterhouses or border agencies testing imported meat can carry out tests on the spot, within hours.

This experience taught me that one method to finding a commercial application for research in highly-regulated industries such as biotechnology, is to quickly identify a regulatory ‘driver’ that creates a market need. This helps to focus commercial R&D at an early stage, refining research and early prototypes to focus on specific applications targeted at a potentially lucrative gap in the market.

Tailoring the technology to the user It is then vital to create a business case for the technology by finding a way to quantify its performance and test it against rival technologies, through modelling or clinical trials, to demonstrate its advantages over rival technologies. If you claim your system is cheaper or quicker than competitors, you need evidence to back it up.

When developing any technology, it is vital to work with the end user from the start. They are the only ones who can show you where the technology will or won’t fit with existing processes. Conducting trials with user groups can also streamline the technology and ensure ease-of-use from an early stage. If the technology is aimed at directly replacing an existing device, it might be necessary to hire a company to carry out detailed modelling to demonstrate that it is cheaper and more effective.

Securing support for a sustainable business Securing public funding at an early stage also acts as a confidence boost for investors. We were fortunate to secure investment from the National Institute for Health Research, which helped drive further private investments.

Applying for industry awards and funding programmes is another important way to increase the profile and credibility of early-stage research. It helps to give investors confidence and can be a great source of business support and advice.

In 2013, I received an Enterprise Fellowship from the Royal Academy of Engineering Enterprise Hub, which supports technology entrepreneurs in academia who have exciting early-stage innovations. This gave me access to world-class mentoring and advice from industry experts which was invaluable as I’d had little experience in business previously.

The fellowship also enabled me to take time out of my university work and set up MIATech to develop and commercialise the magneto immuno assay technology. Without this, I probably would not have been able to dedicate time to the business, which would have drastically reduced its chances of success.

I am now working on numerous other applications for the technology in everything from food safety to medical diagnostics, with a bio-sensor for non-invasive home monitoring of chronic obstructive pulmonary disease (COPD) in patients currently in development.

Commercialising technologies requires a different mindset and approach to developing technologies.

Contrary to popular belief, though, academia and industry aren’t separate spheres, and it is possible to take a technology all the way from lab to marketplace.

By researching their industry, tailoring their product to market need, and securing the support they need, biotechnology entrepreneurs can maximise their chances of success in this golden era of UK biotechnology.

The author: 

Professor Janice Kiely was awarded a Royal Academy of Engineering Enterprise Fellowship in 2013. She is Head of Research and Knowledge Exchange in Bristol Institute of Technology and Director of the Institute of Bio-Sensing Technology. Since founding MIATech, Janice has worked to further develop and commericalise the magneto immuno assay technology.