Isis Innovation

A Unique Model

This subsidiary of the University of Oxford since 1997 has spun out a new company every two months on an average, in recent years

Spinout of companies from the universities in the UK has been a very important activity. Cambridge and Oxford have been at the helm of things. Gone are the ivory tower images. In fact, University of Oxford has a very unique model. The University has a wholly-owned subsidiary, Isis Innovation Ltd. It is the technology transfer company of the University, commercializing the research generated by the University researchers and owned by the University. Explained Dr Tim Cook, managing director, Isis Innovation "Science research activity at Oxford comprises of 2,500 researchers in science and medicine, 2,000 doctoral students, and an annual research income of £219.2 million. The research income in medical sciences and life and environmental sciences is £83.2 million and £21.8 million, respectively, accounting for 56 percent and 15 percent of the total income. So we have focused to help those researchers who wish to commercialize the results of their research. We are involved in licensing of intellectual property, formation of new companies, and offering consulting and service contracts."

Isis was established in 1988 and since 1997 started a major expansion phase. The University assigns its intellectual property to Isis (where there are no pre-existing exploitation arrangements) and Isis then evaluates, protects, and markets the intellectual property. In 2002, Oxford University Consulting became part of Isis, matching business-consulting needs with University researchers. Added Cook, "Isis has an administration group, physical science group, lifescience group, and business innovation and consulting group. Except for the administration team, each group has a head of the group, project managers, business liaison managers, among others. What I would like to stress is that preconceptions are misconceptions. Project managers are the key people. They are the people, who do identify and provide the bridge. You must understand the ground realty that there has always existed a tension between the research community and the business community. And we have played as the intermediary role for helping them. All the research is patented from our center."

Isis provides researchers with commercial advice, funds patent applications and legal costs, and negotiates exploitation and spinout company agreements, and identifies and manages consultancy opportunities for University researchers. Isis works on projects from all areas of the University's research activities. It files, on an average, one patent application each week and manages over 350 patent application families. Isis seeks to license technologies to companies to develop and sell technology-based products. Licensees are sought from all technology and business sectors on an international basis.

Since 1997, it has assisted in either options or licenses signed on 160 projects. Some of which would generate over £1 million in royalties. Added Cook, "Revenue will be a long time coming, but the licensee takes over patent costs (£30,000 for the first five years, £50,000 for 10 years). Besides, there is royalty sharing amongst the researchers, general fund, department, and Isis." It also helps the researchers market their consultancy and services expertise.

It has helped in the formation of more than 30 University spinout companies. Pre 1997, there were 9-10 spinouts. "It was about a spinout every four years then, now it eight companies a year," informed Cook. The valuation of the spinouts in 2002 was £1,204 million. What has been the fund resource? "Isis has a patent budget of £1 million per annum and royalties. Then there is a University Challenge Seed Fund (UCSF) of £4 million and Isis College Fund of £10.7 million. Launched in 1999, the UCSF has been deployed into a total of 68 projects. The £4 million investment has resulted in equity stakes in 21 spinout companies, four completed licensing deals, and 35 active technology projects. Further, UCSF investees have been supported by an additional £20.4 million invested by business angels and VCs," explained Cook.

So what's the success formula? Cook summed it: Management of the process. University entrepreneur culture, university technology transfer resource, and local professional environment, all three must develop together, but the university must lead the change.

Ch. Srinivas Rao at Oxford

Fisher Scientific International and Apogent Technologies to Combine in $3.7 billion Transaction

Fisher Scientific International Inc. and Apogent Technologies have announced a definitive merger agreement to combine the two companies. This strategic combination significantly bolsters Fisher's proprietary-product portfolio and provides the company with a $1.1 billion footprint in the high-growth life-science market.

Under the terms of the merger agreement, Apogent shareholders will receive tax-free 0.56 shares of Fisher Scientific's common stock for each share of Apogent common stock they own. The combined company would have pro forma 2004 full-year revenues of approximately $5.1 billion and an enterprise value of approximately $9 billion, including $2.7 billion of net debt. The companies anticipate that the transaction will be completed early in the third quarter of the 2004 calendar year.

"This announcement represents a major strategic milestone for our company and will create a more integrated and efficient global supply network for our customers," said Paul M Montrone, chairman and chief executive officer of Fisher Scientific. "With Apogent Technologies, Fisher Scientific has further enhanced its position in the life-science, scientific-research and clinical-lab markets and created a stronger platform for growth. Joining forces with Apogent enables Fisher to create efficiencies for our customers and value for our shareholders."

The combination of Fisher Scientific and Apogent Technologies will result in several strategic benefits. Fisher's life-science footprint is expected to grow by more than 50 percent to $1.1 billion as a result of this combination. Further Fisher's position in biopharma-production and diagnostic-reagents will get strengthened. On the financial front, Fisher Scientific expects to achieve approximately $55 million of cost savings and other benefits in 2005. Fisher believes that the potential annual synergies could reach $100 million on an annualized basis by the end of 2006. These synergies will come from, among other things, manufacturing rationalization and facility consolidations.

For 2004, Fisher expects revenue growth of approximately 27.5 percent to 29.5 percent, with approximately14 points of this growth from its combination with Apogent. For 2005, Fisher expects revenue growth of approximately 19-21 percent, with 11.5 points of this growth from its combination with Apogent.

DRAXIS announces $20 million financing

DRAXIS Health Inc. entered into an agreement with a syndicate of underwriters led by Desjardins Securities and including CIBC World Markets pursuant to which the underwriters have agreed to purchase, on a bought deal basis, 3,053,436 units of the company at a purchase price of C$6.55 per unit, for aggregate gross proceeds of C$20,000,000.

DRAXIS Health is a specialty pharmaceutical company involved in the development, production, marketing and distribution of therapeutic and diagnostic radiopharmaceuticals through DRAXIMAGE Inc. and in the provision of pharmaceutical contract manufacturing services, specializing in liquid and freeze-dried injectables and other sterile products.