Technology Transfer & Innovation Management,

University of Oxford : Linda Naylor, Managing Director, Isis Innovation June 15

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Isis Innovation Ltd

Oxford Technology Transfer IP, Patents, Licences, Spin-outs, Material Sales, Outcome Questionnaires, Seed Funds, Isis Angels Network, Isis Software Incubator, Oxford University Hospitals NHS Trust

Oxford Expertise Consulting, Services

A profitable company 100% owned by the University of Oxford

Isis Consulting Business Technology Transfer and Innovation Management

@isisinnovation

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Economic Impact “Commercialisation activity undertaken by Isis Innovation contributed more than £0.4 billion GVA1 to the global economy in 2012/13 and supported almost 5,000 jobs. This includes:

• £264m GVA and almost 3,400 jobs in the UK (of which £129m GVA and around 1,630 jobs were estimated to be in Oxfordshire);

• £9.9m GVA and 150 jobs elsewhere in Europe;

• £109m GVA and around 1,200 jobs in the USA; and

• £25.7m GVA and almost 240 jobs in the rest of the world.”

See summary flyer and full report at - www.isis-innovation.com/about/index.html

1 : Gross Value Added

Source: Evaluation by BiGGAR, an independent economics consultancy, for Isis in February 2014

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Oxford University

• Oxford University is the

oldest university in the English-speaking world

(founded c.1188)

• A leader in learning, teaching and research

• 26 British Prime Ministers educated at Oxford

• Including current Prime Minister David Cameron

• Royal Society founded from Oxford in 1640

• 51 Nobel prize winners

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Oxford Research Funding 2013-14 : £612million

• Highest University Research Spend in UK

• 5,809 academics and researchers, and 10,173 postgraduate students

• Submitted the largest volume of world-leading (4*) research and impact in the UK – REF 2014

• Charts show £478m grants and contracts by source, and University Division

Total £478m + HEFCE £134m

TT

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University of Oxford: Research themes examples

Medical Sciences Maths, Physical,

Life Sciences Social Sciences Humanities

Cancer Energy International Growth Digital Humanities

Cardiovascular Disease Healthcare Government and

Leadership Environmental Humanities

Diabetes, Endocrinology, Metabolism

Advanced Materials Big Data & Social Media Medical Humanities

Infection and Immunology Resource Efficiency Corporate Governance Medicine and Conflict

Genomics Recovery & ICT Women in Business Global History

Musculo-skeletal Science Cyber Security Training Educators Cultural Heritage

Neuroscience Big Data Social Policy Culture Transfer & Translation

Reproduction & Development Robotics Social Intervention Practical Ethics

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Technology Transfer & Doing Business

University entrepreneurial

culture

Industry, Business &

Professional environment

University technology transfer resource

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Isis Innovation, year-ending March 2015

NB Unaudited figures

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Isis Innovation, year-ending March 2015

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Investment, Donations and Funds TT

Oxford University Challenge Seed Fund (UCSF) •Launched 1999 with £4m (£1m OU)

•Over £7.5m invested in 143 projects

•The only UCSF still running in its original form

Oxford Invention Fund (OIF) •Donate to support development of new technologies from Oxford

•Part of Oxford Thinking, the University’s fund raising Campaign

•£1.5m raised to date

University of Oxford Isis Fund (UOIF) •EIS/SEIS funds for investors managed by Parkwalk Advisors

• Isis Innovation is Portfolio Advisor

•1st fund £1.25m fully committed, 2nd closed

Isis Angels Network (IAN) •For Business Angels and early-stage VCs

•216 registered members

•No membership fee

•Twice-yearly meetings, newsletters

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£300m Spin-Out Investment Fund

• Oxford Sciences Innovation formed to invest in spin-outs from Oxford (MPLS & Medical Sciences Divisions), Harwell & Culham laboratories

• Investing in new and existing spin-out companies, working inclusively with other investors

• Founder investors : Invesco, IP Group, Lansdowne Partners, Oxford University Endowment Fund, the Wellcome Trust and Woodford Investment Management.

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Spin Outs

Total external investment to date in 84 spin-outs since 2000: £535m

£67m 1st round Seed/Business Angels – £468m follow-on Investment Capital

Spin-Out Portfolio by sector January 2015

Diagnostics

Medtech

Pharma tools & services

Drug Discovery

Other healthcare

Industrial applications

Environment & cleantech

Other (incl. software)

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Technology Transfer - some general thoughts

Clear IP policy : University claims ownership of all employees’ and students’

IP rights resulting from University research activities

The University helps researchers who wish to commercialise their research

Researchers should share some of the benefits

Royalty shares from licences

Equity in spinout companies

Income from personal consultancy

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Technology Transfer – Food Sector - some thoughts

Some general thoughts :

• Can take a long time to develop

• Applications not always obvious

• Margins not always available –

e.g. looking at more sensitive methods of

detection of say pathogens in food

• Can be health driven

• E.g. looking at gut genomics and GM tools

to direct results then tailoring foods, but

regulations similar to pharma

• Done through third party funding as companies do

not want to fund – little premium and just drives

market share

• Food Crops are not always welcome.

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Technology Transfer- Spin out

• ΔG™ is the first example of an entirely new food group that offers significant commercial opportunities in a wide range of complementary market areas.

• This nutraceutical has already shown promise in improving physical and cognitive performance in a wide range of environments, from sports track to battlefield.

• ΔG™ is a ketone ester that’s broken down in the gut by digestive enzymes (esterases) to create the ketone body, beta-hydroxybutyrate, which is readily absorbed by the gut wall for transportation to the brain and other organs.

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History

• Technology from the Department of Physiology Anatomy and

Genetics (DPAG)

• Initially funded by Defence Advanced Projects Research

Agency (DARPA) in the US for military personnel to be

enhance physical performance

• Had to form a separate vehicle to administer the money but

this was back in 2006

• Some background IP was owned by the NIH in the US and

took 3 years to agree a commercialisation agreement that had

to incorporate many of the conditions imposed upon such

grants

• Patents are around composition but mainly process

• Deals with third parties have been difficult to negotiate

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Chilli Pepper sensor

The “heat” or piquancy of the chilli is due to capsaicin and

other capsaicinoids.

To measure the concentration of capsaicin the food industry

uses:

Organoleptic “Scoville” test

dates back to 1912

Five tasters are given increasingly diluted

samples until they can no longer taste the heat

High Performance Liquid Chromatography (HPLC)

requires expensive equipment

requires expert use and maintenance

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Chilli sensor

Oxford University scientists in the Department of

Chemistry have developed a sensitive electroanalytical

method for the determination of capsaicin.

Developed low cost electronics that essentially replaces

a potentiostat and this ramps the voltage, and reads the

current as a moving average.

Current is proportional to concentration of capsaicin.

The test is rapid & highly sensitive, portable and simple

to use

Can also be used for garlic

Licences have been executed with companies worldwide

to trial this new method.

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Oxford Biotrans - Spin Out

Production of high value chemicals using patented enzyme

technology –

• First product is natural grade nookatone – flavour and

scent of grapefruit

An extensive library of novel, custom-designed

cytochrome P450 enzymes that have high

selectivity for specific substrates and yield

products with high efficiency.

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Medical Food

There is considerable evidence

supporting an important role for

homocysteine in causing vascular

occlusion and blood flow disruption

in the brain, and for folate in

regulating levels of homocysteine.

Research indicates that this has

significant potential to inhibit the

development and progression of

Alzheimer’s disease.

Folate is the principal constituent of a

composition to reduce homocysteine levels

and therefore prevent development of

microvascular ischaemia

This technology is currently licensed in the

USA to Pan American Laboratories Inc

now part of Nestle Health Science which

markets it under the brand name Cerefolin,

and for which it is a key medical food

product indicated for dementia and

Alzheimer’s disease.

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The Innovation System

Recruitment, head-hunters

Angel Networks

Students

Angel Investors

Investment Funds

Accountants

Bankers

Lawyers

Technology Transfer organisations

University Researchers

Commercial property managers

Journalists

Consultants

Public Relations

Local Government

Hospitals

Government Labs

Research Institutes

Members of Parliament

Incubators

Business networks

Science Parks Other

universities

Industry

Technology companies

Business

Start-ups

‘City deal’

Local Enterprise

Partnership

@isisinnovation

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Conclusions – How Isis Works

• Universities • Technology Transfer is a good thing

• Part of University purpose; may make money for University and researchers

• It does not happen on its own • You need to invest resources in People, Patent budget, Proof-of-Concept

• You need a policy framework • Who owns the inventions; who shares the rewards

• It takes a long time … So start and do not stop.

• Business • Access to technologies, resources and expertise • Help understand universities • Help your business innovate

• Investors • Source of investment opportunities • Home for entrepreneurs

• Government • Stimulates innovation and enterprise • Improves society

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