University at Buffalo - The State University of New York

Published: June 22, 2006

By KEVIN FRYLING
Reporter Staff Writer

With the opening of UB's New York State Center of Excellence in Bioinformatics and Life Sciences on the Buffalo Niagara Medical Campus, UB has created a flashpoint for innovation and research in downtown Buffalo.

But it is the business-support services UB provides its researchers and their scientific breakthroughs through the Office of Science, Technology Transfer and Economic Outreach (STOR) that will create the start-up businesses that establish the city as a center for the biotechnology and life sciences industries, according to Robert Genco, vice provost and director of STOR.

Genco, who also is SUNY Distinguished Professor in the Department of Oral Biology in the School of Dental Medicine, explained yesterday how research goes from the laboratory to the businesses sector—as well as some of UB's recent success stories—in "Accelerating Economic Development in the Buffalo Niagara Region: Transferring UB Inventions to Society," the last lecture in a special miniseries celebrating the grand opening of the Center of Excellence. The miniseries is part of the UBThisSummer lecture series.

"In the United States, universities have become a major drive of the biotech industry," Genco said. "It's estimated that 75 percent of biotechnology innovations—drugs and diagnostic devices—have come from universities."

Genco said university-driven development is on the rise due to changes made to federal law in 1980 that now enable universities to own intellectual property developed with federal funds—with the mandate that best efforts are taken to commercialize the discoveries and share proceeds with inventors. He said that 2,200 new commercial products—"many of them in your pharmacy right now"—have been developed from university research between 1998 and 2003.

UB is keeping pace with other institutions in terms of innovation, Genco noted. The number of patents obtained by UB researchers has increased from 58 in 2003 to 69 in 2005 and "invention disclosures," which indicate new discoveries that could turn into patents at a later date, are up from 82 in 2003 to 92 in 2005.

"We are at the national average," said Genco. "In other words, our faculty are good inventors."

Sixteen new licenses and options in 2005 place UB near the national average in this area as well. Moreover, eight new start-up businesses in 2005 and seven in 2004 set UB far above the national benchmark for universities with academic health centers. The average is one start-up per year. There have been 24 new start-ups at UB since 2002, Genco added.

The Buffalo area also is above average in terms of regional development. About 39 percent of UB start-up companies remain in Western New York, compared to the national average of about 20 percent.

"We have emphasized local companies in Buffalo because we think Buffalo needs local companies and local jobs," said Genco.

One such company cited by Genco is the SmartPill Corp. Founded on the work of Jerome Schentag, a UB professor of pharmaceutical sciences, SmartPill has developed a small diagnostic device a patient can swallow. It has the potential to replace more invasive procedures that diagnose diabetes and colonic illnesses. So far, is has raised about $25 million in private capital and Genco said Federal Drug Administration approval is expected this summer.

SmartPill isn't just a dynamic homegrown venture; the company is committed to staying in Buffalo as well, he said.

Genco also talked about Kinex Pharmaceuticals, a start-up company that develops cancer drugs founded by David Hangauer, UB associate professor of chemistry. Some of the several million dollars Kinex has raised in venture capital came through UB and its partners in the WNY Business Development Fund, he said.

"It's a long process, but [Kinex] has as good a chance as anyone to develop a billion-dollar drug. And it can happen right here in Buffalo," said Genco.

Baird Research Park on Sweet Home Road, adjacent to the North Campus, provides office space to 19 start-up businesses and supports eight affiliate companies, said Genco. "It's more than just real estate," he said. "There are a lot of free services." In addition to conference rooms and UB's network of libraries and computers, companies in the incubator have access to funding groups, local venture capital organizations and UB's "Execumatch" program, which matches CEOs with scientists so researchers can return to the lab faster while trained business experts take over their start-ups' day-to-day operations.

There have been 60 companies that have "graduated" from Baird Research Park in the past 10 to 15 years. Genco said, and Technicor Inc. and Aquasol will move out in July. These companies have grown so large that the facility can no longer contain them. "Our building is about 45,000 square feet. These two companies are going into a building that's 55,000 square feet. That's a success story for us."

Buffalo has great opportunity to become a center for biotech industries, thanks to some major advantages over other universities, said Genco. UB's Center for Computational Research—one of the most powerful supercomputers in the nation—has the power required to drive the calculations needed for bioinformatics research.

Moreover, Genco points out, UB is partnered with Roswell Park Center Institute and the Hauptman-Wood Medical Research Institute—institutions that are at the forefront of cancer and structural genomics research, respectively.

"We want [our children] to stay in Buffalo and this is going to keep them here," said Genco. If we have a cluster of these life sciences jobs, then young people can stay. That's wonderful. That's what drives us every morning when we go to work."