Biotech’s Best Bets

The OLSC showcases its Top 10 investment and partnering prospects

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BY AMBER LEPAGE-MONETTE

Celebrating its 10th anniversary, BioNorth 2003, the Annual Ottawa Life Sciences International Conference and Exhibition held November 17-19 in Ottawa, Ont., will once again be attracting those interested in seeing what Canada’s top biotechnology and life science companies have to offer. Each company selected for Canada’s Top 10 Life Sciences Corporate Investment and/or Partnering Prospects as either Early Stage or Emerging Stage will give a 15-minute presentation that outlines its business plan to visiting venture capitalists.

Selection is made through jury consensus, Ottawa Life Sciences Council project manager Robert Pascal explains, and it often comes down to which companies individual jurors would invest in. Assessment is based on the summary business plan each company had to submit, with jurors looking at the company’s science/technology platform, market opportunity and commercial potential, management and scientific team, intellectual property and competitive advantage, partners, regulatory issues, and investment liquidity. Contenders must be life sciences companies headquartered in Canada, have market capital of no more than $100 million and must be seeking financing between $2 million and $20 million.

EARLY STAGE

ARC Pharmaceuticals Inc.
Vancouver, BC

In-licensing two anti-inflammatory classes of drugs from the University of British Columbia (Vancouver, BC), ARC Pharmaceuticals has taken adhesion technology to the next step by loading its devices with anti-inflammatory drugs, a move that has given the company a sort of “expertise” in drug-loaded medical devices, says president Chris Springate. Being recognized this year on the Top 10 list is something the company doesn’t take for granted. “It’s a very important recognition for ARC,” Springate says. “We’re pleased we have been acknowledged by an international panel of experts.” The next few years forecast much change for the company, which plans to complete preclinical studies, aims to bring in experienced staff to its management team and is looking to complete a financing or partnership deal.

BioAxone Thérapeutique Inc.
Montreal, QC

Making the list a second time bodes well for a young biotech company like BioAxone Thérapeutique, says CSO Lisa McKerracher, PhD. “Biotechnology is a field that’s competitive,” McKerracher says. “It’s a field where you have to raise capital, so visibility is good. Visibility that you are making good progress is good,” she says. The company’s platform, which includes products that target Rho signalling pathways for various indications, such as stimulating repair in patients with spinal cord injury, is proving impressive. BioAxone is currently working to file an IND by the end of this year, McKerracher says, and plans to move into clinical trials next year. “We just want to do the best job we can in trying to bring it forward to the clinic,” McKerracher says of this fast pace.

Inimex Pharmaceuticals Inc.
Vancouver, BC

Enhancing infection-clearing aspects of innate immunity while suppressing harmful aspects of inflammation is the work of Inimex Pharmaceuticals, appearing for the second time on the Top 10. As a young biotech company, such a distinction raises profile, says Jeffrey Bacha, president and CEO, and shows Inimex’s science and business plan have been vetted by industry experts. The double distinction may be due to the fact that Inimex’s technology ventures into new frontiers, Bacha says. “It’s a new way to come at infectious disease, especially in the bacterial space . . . that sets us apart.” Building a team that is strong at moving technology from the lab to commercialization has also contributed to the company’s success, Bacha says. Plans for the next year include solidifying its scientific advisory board and building a number of partnerships.

Interface Biologics Inc.
Toronto, ON

Interface Biologics’ platform is a polymer-based technology that incorporates surface-modified macromolecules, allowing the combination of drugs and devices, explains director of Business Development Mark Steedman. This being the company’s second year on the Top 10, Interface’s repeat appearance on the list may be attributed to the strides it has made and its focused business plan, Steedman says. “I think it’s certainly something that a lot of young companies like us strive for,” he says. “We’ve certainly proven that we do belong there and last year wasn’t a one-off.” Though currently in a preclinical stage, the company hopes to get a product to market some time next year.

Zelos Therapeutics Inc.
Ottawa, ON

Growing out of work done at the NRC on bone metabolism, the company’s platform involves the use of parathyroid hormone to stimulate bone formation that is useful for those with osteoporosis, and to also treat psoriasis. Zelos Therapeutics CEO Robert Dufresne says the company’s listing on the Top 10 is definitely something that makes the firm proud. “It’s an indicator of outside validation of the attractiveness of the technology and of the company itself,” Dufresne says. The company’s two programs, osteoporosis and psoriasis, have kept the company quite busy, Dufresne says, but it still plans to move forward — bringing its first program into clinical development in the near future and the second to clinic in nine to 10 months.

EMERGING STAGE

Aegera Therapeutics Inc.
Montreal, QC

“We are delighted to win a hat trick,” jokes Aegera Therapeutics president and CEO Michael Atkin of the company’s third listing on the Top 10. “It means the high standards we met two years ago and one year ago continue to be maintained,” he says. “I think it’s a sign that we’re doing some things right.” The company’s platform involves induced apoptosis in cancer cells, restoring normal cell-death mechanisms to cancers. The company is working to get its antisense drug into clinic early next year, to have combination therapy trials in the second half of next year — studying the use of Aegera’s drugs with chemotherapy drugs — and to start toxicology studies at the end of next year through its AEG-3482 program that protects nerve cells.

Affinium Pharmaceuticals Inc.
Toronto, ON

Affinium Pharma-ceuticals focuses on developing novel anti-infectives through structure-guided drug discovery. “It’s like having the diagram for a lock in order to make a key,” explains John Mendlein, PhD, chairman and CEO. “We have a molecular diagram of what these targets look like for drugs, and therefore we can make drugs to fit into these targets in a more potent fashion with fewer side-effects.” Appearing on the Top 10 list is a “significant event” for Affinium, Mendlein says, that bodes well for the company in financing. Making the list was the result of a strong management team, a strong program base and the company’s unique way of designing drugs, Mendlein says.

Cytovax Biotechnologies Inc.
Edmonton, AB

Cytovax Biotechnologies is the veteran on OLSC’s Top 10, this being its fourth year on the list. This may be due to the fact that the company has several technologies to develop antibodies and vaccines — all based on an “anti-adhesion” approach that blocks the infection process, peptide antigens and consensus peptides — though president and CEO Bin Huang, PhD feels several factors contributed to the company’s reappearance on the list. “It probably shows consistency in us doing the right things . . . and a consolation that last year we did make significant progress as well with each and every one of our R&D programs,” she says. The company currently has two products in the pipeline, and plans to start preclinical GMP and file an IND next year.

Ecopia BioSciences Inc.
Montreal, QC

Ecopia BioSciences is riding high on two recent successes: discovering its first antibacterial compound and making the Top 10 list. The company applies genomics and bioinfomatics to micro-organisms as a means of discovering compounds, which in turn are used to produce antibacterial, antifungal and anticancer drugs. Five molecules to date have been identified, the next step for which is to develop them into drugs. Receiving recognition for its work has been important to the company. “What we see in Ecopia is tremendous potential,” says Pierre Falardeau, PhD, president and CEO. “Having that confirmed by the OLSC is very meaningful.” Certainly, Falardeau says, all compounds that have been discovered will be developed, and more discoveries are expected in the years to come.

Ionalytics Corp.
Ottawa, ON

Tapping into a market that has not seen much change over the years helps set Ionalytics’ technology apart, says president and CEO Jan Kaminski. Building an ion-filtering device that enhances mass-spectrometer performance while decreasing signal-to-noise is the company’s focus. While the third-party validation does reflect on the product, it truly reflects on the company, Kaminski says. “It also helps us raise our credibility with our potential partner . . . as well their customers, who are the ultimate end-users of our product.” Shipment of the company’s first commercial units commenced in October, Kaminski says, and efforts are now focused on upcoming new products.