Genesis Genomics Inc. - Text Version

Dr. Bob Thayer, CEO, and Dr. Ryan Parr, Vice President, Research, Genesis Genomics

RYAN PARR: Genesis Genomics is a company that works on a DNA detection device with the ultimate goal of creating a genetic physical, or a DNA physical, so that we can watch for the very genesis of disease long before it happens, long before there are clinical symptoms. And what we have targeted are many different types of cancer, with the ultimate goal of people getting into treatment long before the disease is out of hand.

BOB THAYER: We were able to get all of our projects cleared by the Thunder Bay Regional Hospital Ethics Committee. We were subsequently able to establish a very strong physician's network. They're the ones who obtain the samples for us in prostate cancer or breast cancer or skin, and so that's our lifeline.

About two and a half years ago, there was a group of us that were doing work in sort of the biochemistry molecular biology area....and we were sitting there talking about the whole application of sort of mitochondrial DNA and cancer research and talking about the length of time it would take, and really even the revenue stream that would be necessary to accomplish all we wanted to accomplish, let's say if we were to work collectively. We sort of sat there and said, you know what, gee, we should form a company. And we all sort of sat around and nodded our heads, yeah, that's a great idea.

I think it was Ryan who became aware of the Innovation Management Office at Lakehead University and said, you know what, it's probably worthwhile to go and meet with Barb Eccles, who was the new Innovation Management person at the university, for a tech transfer.

BARB ECCLES: We were dealing with eight or, seven or eight researchers, some from the university, some from outside of the university, and with a host of different intellectual property rights associated with the concept. So what we decided to do is to assign all of the intellectual property into a numbered company...it became the holder of the intellectual property. It then licensed that intellectual property, the use of that IP, to Genesis Genomics.

BOB THAYER: One of the first things Barb said, you know, you're going to have to structure a business plan if you're truly serious about becoming a business. And that whole stretch of time, probably we're looking at about a 6-month period, where you know, we worked on the patent, we worked on the business plan, we had numerous meetings. And that's certainly the genesis of Genesis.

RYAN PARR: I think because this was the first spin-off company out of Lakehead that they were very, very good to us.

BARB ECCLES: We have taken an active role in management, in planning, to the extent that the university even has an appointee to the board of both the numbered company I mentioned earlier, and of Genesis.

RYAN PARR: I think that's really the critical part is to realize that there are going to be some issues that you have to deal with that are outside of your set of expertise and you have to call those people in and you have to let them do their job, and take their advice.

When you first start out a business, you always think, well, we're going to go to venture capital right away. Well, the reality of the situation is that venture capital really wants to come in generally after you have proof of concept because, of course, that's less risky for their investors. And you quickly find out that there's nothing venturous about their money.

BARB ECCLES: The local and the regional community has been very supportive and the number of close friends and business associates of Genesis Genomics have come in; we call them angels. We've also had a great deal of support from the Canadian government through Industry Canada programs, including FEDNOR, the IRAP program and the Community Futures Development Corporations, namely Thunder Bay Ventures, in Thunder Bay.

ROYDEN POTVIN: They had filed for patents. They had already gone off and had a business plan completed by Ernst&Young, a biotech specialist out of Toronto. So they had done a whole, a number of, series of things properly, in our view. And as a community development corporation, we felt that one of the best ways to accrue value to our community was through participation with the firm, and not just a sterile ratio analysis or financial analysis of their business plan.

BOB THAYER: We anticipate that proof of concept is going to obviously be very...extremely important for Genesis Genomics in terms of third party science verification of the utility of our science. In other words, is it going to have a commercial application?

RYAN PARR: So proof of concept would really involve being able to detect some type of progressive pattern from a person that does not really have disease through to a person that has perhaps advanced disease. And to see, really, if this procedure is going to work, it looks like the price tag is three million dollars.

BARB ECCLES: We're also actively trying to recruit board members, members of the Board of Directors, who have experience with the business side of biotechnology.

BOB THAYER: We've started out right from the outset as if we're a publicly traded company. I think we were very fortunate that we got very, very good business advice in terms of saying, look, seek out immediately the individuals that are in the marketing area, that are in the distribution area and so on, partner with those people and start the process very early on.

RYAN PARR: I think the major lesson that I've learned is that the innovation process is very exciting. I don't think there's ever a day when anyone in this company dreads coming to work. There is a real excitement in the air that, you know, we're doing something that may make a difference. I think that's been very, very exciting and really drives innovation, to see, you know, wow, will this really work. And that's the question that you have to be willing to pursue.

END