Translating Contract Research Strengths into Revenue

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Translating Contract Research Strengths into
Revenue AUTM Singapore, September 2005 Dr Peter
Lee, Chief Executive Officer
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Todays Agenda

• University of Auckland dimensions and
  capabilities
• UniServices overview how we add value
• The role of contract research in our business
  model
• How we contribute to helping NZ take advantage of
  a fast-growing global economy.

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The University of Auckland Dimensions

• New Zealands largest university
• Established in 1883
• Multi-disciplinary, vigorous research-led
  university
• 8 Faculties, 1700 academic staff, 1800 General
  Staff
• Comprehensive range of programmes on 3 campuses
• 31,000 students, 5000 postgraduates
• 4700 international students from 60 countries
• Member of Universitas 21 and Assn Pacific Rim Unis

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The University of Auckland Capabilities

• gene therapy, bioengineering, neuronal rescue,
  pacific health, structural biology, computational
  electro-mechanics, geometric function theory,
  marine conservation, inductive power transfer,
  fish navigation, invasive species, group theory,
  atmospheric physics, composite materials, wood
  engineering, surface science, materials
  chemistry, sail aerodynamics, organisational
  change, environmental law, maori education,
  crystal fluids, obsidian dating, cross-cultural
  dynamics, womens studies, art exhibitions, music
  composition...

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Our Mission

• Our mission is to apply leading-edge research and
  expertise at The University of Auckland to
  client needs and business opportunities
• This activity enables organisations based on new
  knowledge to grow
• We support our researchers, experts and
  departments to ensure that our clients
  requirements are met with quality outcomes and
  best commercial practice
• In doing so we expand and enhance the teaching
  capability of the University and benefit the
  community at large

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Our Place in the Economy

• The University of Auckland is the countrys
  leading source of fundamental new research
• But even more importantly, it is also undertakes
  strategic and applied research
• UniServices knows how to very successfully bring
  that to commercial fruition for the benefit of
  the country and is now
• New Zealands leading single source of new
  knowledge based industries

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Our People

• Senior people with significant global experience
  in the commercialisation of new knowledge
• UniServices employs 500 research related staff in
  addition to the University staff we work with
• We draw on the world class expertise of the
  Universitys scientists and academic research
  staff
• Synergies across University/UniServices areas of
  activity strengthen our collective offering

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Business Dimensions

• Revenues for year 2004 70.1 million
• Largest of its kind in Australasia
• Model for other NZ Universities
• Over half of the funding for externally
  commissioned research/development/consulting at
  the University of Auckland is contracted through
  UniServices

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Commercialising Intellectual Capital
Advice, problem-solving for business and others,
sustains the future
Consulting
New products processes, job creation
Contract Research
UniServices Processes to add value
Global licensing deals new businesses, jobs and
new products
Technology Transfer
Local and global contracts, enhanced resources,
jobs and revenues
Education Training
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Commercialising Intellectual Capital
OUTPUTS BENEFITS
INTELLECTUALCAPITAL
INPUTS
VALUE ADDING PROCESSES
Advice, problem-solving for business and others
sustains the future
CONSULTING
New products and processes, job creation
Resources, skills knowledge of the University
of Auckland
56 m

CONTRACT RESEARCH
Creation of critical mass of intellectual capital
UniServices processes to add value
70 m
Global licensing deals and new businesses, jobs
and new products
TECHNOLOGY TRANSFER
Local and global contracts, enhanced resources,
jobs and revenues
BUSINESSES
2-3 m
NEW INVESTMENT IN UNIVERSITY RESEARCH FURTHER
SOCIAL ECONOMIC BENEFITS
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Research and Consultancy Our biggest revenue
earner

• Research and consulting 55.6m
• Contract Education 9.5m
• Intellectual property 3.5m
• ...but intellectual property underpinning
  spin-offs is a key part of future growth

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Research and Consultancy Client Profile

• New Zealand businesses 32.2
• Government (central local) 46.4
• Medicine (overseas) 16.4
• Engineering (overseas) 2.1
• Other (overseas) 2.9
• 150 clients in 27 countries

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Induction Power Technology-Overview

• Based on an impossible invention
• Fully funded by University
• Promoted by UniServices
• Global standard in materials handling
• Used by Toyota, BMW, Intel, Samsung
• To date 7m in licensing fees
• Research contracts keep coming

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Induction Power Technology-Conclusions

• Weve gone from research idea to global
  partnerships
• This has been an example of licensing rather than
  spin-out success
• Ongoing research and multi-million licensing
• Without the UoA/UniServices this wealth would not
  have been created

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MRI Clinical Unit

• Three years ago, UniServices began licensing
  world-leading MRI software that greatly improves
  cardiac diagnosis to global leader, German-based,
  Siemens AG.
• The technology is now sold all around the world
• UniServices established and financed a MRI
  facility for use in research contracts across all
  science and medical fields, 2004

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International Benchmarks
2 Largest 2 Prestigious Medical
Colleges
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Our Patent Estate

• 180 patent families
• 40 new patents filed 2004
• 15 new licences and options in 2004
• Total of 160 licence agreements
• Basis for our spin-out companies

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Spin-off Companies

• 22 spin-off companies
• Six new spin-off companies in the last two years

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What is Next?

• Advanced Materials based upon Composite and
  Nano-Technology
• Conducting Polymers
• Cancer Therapies (VHL tumour suppressor)
• Controlled release Bioactives
• Enhanced Anti-angiogenic Therapy (HIF-1
  inhibiting agents)
• Enhancements to the Immune system for cancer
  (Induction of cytotoxic T-cells)
• More Potent Vaccines (Superantigens)
• Novel Topoisomerase (Growth delay in human
  tumours)
• Novel AntiBodies (e.g. Type 1 diabetes)
• Models of the Human Heart (molecular to organ)
• BioPhysics of Animal Caracuses
• Monitoring Vital Body Functions
• Operating in a Virtual Theatre
• Waste Water Genomics
• asTTle
• Ohmic Cooker
• Fast Starts
• CORRA (diagnostics for pregnancy outcomes)
• Telemetry, Smart Shopping Carts

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Our Opportunities

• Overcoming the Valley of Death
• Open Innovation
• Opening a channel to innovation

?
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The Valley of Death

Commercialisation New Knowledge Based industries
Basic Research
1.7 MM RFI PSAF
xx MM External Investors TBG
40 MM NERF HRC Marsden
Screening Incubation
time
Choke Point
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Open Innovation
Research
Development
Boundary of Enterprise
The Market
Research Projects
Research
Development
Boundary of Enterprise
The Market
Research Projects
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Opening a Channel to Innovation

• Working with MIT isnt about solving just one
  problem. Its about joining a network that is
  discovering and developing knowledge
• -Karl Koster, Head of Industrial Liasion Program
  at MIT

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Some of the Researchers who Make it Happen