Professional Documents
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n Affinity for success “We’re anxiously watching to see if those things do CANMET building fronts rendering
[page 2] materialize in the wake of what’s happening,” said held by Zach Douglas
Douglas. It may well be that some aspects of what was
n Biotech at conceived as an emerging technologies centre, with a strong
Mohawk automotive focus, will get rolled into the 186,000-square-
[page 3] foot, four-storey existing structure now being redeveloped.
nR
ecession hurt
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he ‘doctor’ is
in... the cellar
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pcoming
events
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Sometimes, success wells up not from a great original Affinity’s market sector – human health and safety – means
idea or technology but from seeing a niche that the company must adhere to demanding and expensive
few recognize. The trick there is in acting on the audits and standards set by such bodies as the U.S. Food
opportunity . . . even if it means toiling at full-time and Drug Administration and the ISO agency.
jobs elsewhere while seeding and nourishing your
Natrix now fledgling niche at home. Another demanding barrier is the U.S. border. Entry into the
a well-read United States has gotten tougher, post 9/11 and post-Mad
supplier That’s the story of Affinity Biologicals: a company Cow disease. Often, it has meant that Patricia, the company’s
that climbed from a Kingston basement into a chief financial officer, has personally taken shipments over to
A company with roots plant in Ancaster. And the team behind the climb – make sure they reach carriers or distributors.
at McMaster University husband and wife Hugh and Patricia Hoogendoorn
has scored a distribution – are acting on opportunity again: they’ve just The risks and demands in a life sciences business are higher
bought a new business. today, says Patricia. To which Hugh, the president, adds:
deal with prominent life
“They (the hurdles) are second only to the drug development
sciences firm VWR. The The pair have acquired the hemostasis reference system. It requires a huge investment.”
VRW products catalogue lab at Henderson General Hospital, a service
will include gel-membrane complementary to Affinity’s blood serum and By broadening their offerings beyond plasmas and antibodies,
products created by Natrix coagulation lines, and a full-circle return to where the couple has so far weathered this economic collapse. But
they alighted when they left Kingston in 1993. two years ago, it was the rapid rise of the Canadian dollar’s
Separations.
value, relative to the U.S. dollar, that hurt them. Affinity’s lines
Research developed by They credit Drs. Jack Hirsh and Jeff Weitz for are priced in U.S. dollars; quotes are good for a year.
McMaster professor mentoring and entrepreneurial help as the
Hoogendoorns planned their exit and spun off the Handsome margins crumbled then, and Affinity had to
Ronald Childs later moved
Henderson business into a stand-alone Affinity reduce R & D, cut back on heavy marketing, let some
to commercialization operation nine years ago. employees go. Today, the marketing is more likely to focus on
and formation of Natrix. email campaigns but there is still the occasional trade show.
The Burlington company, Today, the company that began in the basement
led by former university of two former Mohawk College lab technology “We made it through (the soaring loonie),” said Patricia. “We
grads has almost 20 employees and does more live now like it’s at par and anything beyond is gravy.” n
chemical engineering
than $2 million in annual sales around the globe. It
professor Lisa Crossley, ships most of its product lines into Europe, the U.S., Affinity Biologicals founders, Patricia and
sells internationally Australia, and other areas. And now China beckons. Hugh Hoogendorn.
to biomanufacturing,
nutraceutical and water- Broadly speaking, Affinity makes lab reagents and
kits for research and diagnostics. The antibodies,
treatment industries.
conjugates, ELISA (enzyme-linked immunosorbent
Natrix lab and process- assay) kits, and plasma products are used in the
research pathology of diseases and in monitoring the
system products utilize
efficacy of treatments.
membranes consisting
of a polymeric hydrogel It was the antibody line, used in coagulation research,
formed within a flexible that the Hoogendoorns first picked up on. It was a
porous support matrix. niche market going unserviced. So they started their
home-based business in 1987, even though both had
other jobs in Kingston.
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John Brash The collapse has fueled fears that some life sciences To be fair, venture capital fundraising in Canada was
gets top honour businesses will disappear or be snapped up by sliding before the recession. Four years ago, the industry
American interests. And once again, the spectre raised $1,718 billion, according to the Venture Capital &
He is an engineer who
of a brain drain of scientists fleeing south has Private Equity Association (CVCA). Last year, the total fell
also happens to be been raised, as more stimulus money is allocated to $1,028 billion – a 41 per cent drop.
an authority on blood in the U.S.
and biomaterials. John That’s the fundraising side. VC investing in all companies,
Brash was honoured in The downturn has accelerated cash burns and not just life-sciences firms, has also plummeted. The
April with the Founders aggravated existing strains in lending. It has dried amount of VC infusions in this year’s first quarter, at
Award at the annual up liquidity lines, ratcheted up some rates, led to $275 million, was the lowest on a quarterly basis in
meeting of the Society for the insolvency of some non-bank lenders, and almost six years.
Biomaterials in Texas. has cratered venture capital and private equity
funding. Governments and their funding/banking agencies
Dr. Brash, director of have been criticized for being slow to react to tighter
the School of Biomedical “I think we’re noticing certain longstanding, conditions. For example, critics have hit at the Ontario
Engineering at McMaster faithful customers are in a bind,” says Hugh Venture Capital Fund for being too deliberative, taking
University, is only the Hoogendoorn, president of Affinity Biologicals too long to put money into play.
second Canadian to in Ancaster. “And so, you have to make certain
receive the award, given concessions (in sales orders and accounts And earlier this year, several bioscience / biotechnology
for long-term, landmark receivable situations).” groups and officials took shots at the Harper government’s
contributions to the field of budget. They criticized its directing of federal funds more
biomaterials. Some financiers – competing in a market to infrastructure than to actual hands-on research work.
where IPOs and mergers have dried up, and
His four decades of study where pension funds, insurance firms, or limited But Quebec and Ontario – to name just two provinces
and innovation have led to partnerships are reluctant to fund VC operations – have ponied up money of late. In March, Ontario
improvements in vascular – are content just to wait out this global crisis. announced its $250 million Emerging Technologies Fund,
stents and grafts, heart- to be matched with private investments, for cleantech, IT,
assist devices, and heart- That’s bad, a senior Business Development and life sciences startups.
lung bypass systems. Bank of Canada official warned in early spring.
Edmée Metivier, BDC’s executive vice-president of A month later, Quebec launched a private-public sector
His expertise is financing, told a House of Commons subcommittee $700 million fund of funds. CVCA president Gregory Smith
recognized in several that the crunch will hobble technology called the fund “a shining example” of collaboration
areas, including entrepreneurs. between both sectors.
protein adsorption and
blood compatibility, “It breaks my heart because if we let go of these Some VC and equity players think the
thrombus formation technology companies, once this recession is over, slowdown may well promote a
on artificial surfaces, you will have lost all this (new) technology. You will clearing of the decks. Lumira
and biocompatible have lost a decade,” said Metivier. Capital head Peter van
polyurethane-based der Velden notes on a
materials. Studies repeatedly stress the need for capital in the blog: “Today’s market
industry. PricewaterhouseCoopers’ 2009 Canadian represents an outstanding
Life Sciences Industry. Forecast found that almost 80 time to cull the weak and
per cent of 167 biotechnology firms surveyed listed the underperforming from our
ability to access capital as their key issue. herds...” n
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An entrepreneur who
has founded at least
two pharmaceutical
companies, he focuses
on understanding,
preventing and
treating diseases
such as irritable
bowel syndrome,
ulcerative colitis,
Crohn’s disease
and colon cancer
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Events listing
Food Meets Function – the science Date: Tuesday, June 23, 2009
Brock gets and business of functional foods Location: Adam’s Mark Hotel
Address: 120 Church Street, Buffalo, NY
Date: June 17-18, 2009
big federal Location: Best Western Lamplighter Inn & For more information visit:
donation Conference Centre www.thepartnership.org/events or
Address: London, ON www.ghbn.org
Ottawa has boosted For more information: www.foodmeetsfunction.ca
World Congress –
the construction
Translog 2009 conference – The World Congress on Industrial
campaign for Brock Transportation and Logistics Biotechnology & Bioprocessing
University’s research Date: June 17-18, 2009 Date: July 19-22, 2009
complex by investing Location: McMaster University Location: Montreal, Qc
Address: Hamilton, ON For more information visit:
$38 million in the
For more information visit: www.mcmaster.ca/ www.bio.org/worldcongress
project. translog/index.html???
The federal money Foods as Natural Health Products
follows a $33.5 million Date: Thursday, June 18, 2009
provincial contribution, Location: Guelph Food Technology Centre
Address: Guelph, ON
plus $2 million from For more information visit: www.gftc.ca
Niagara Region. The
142,000-square-foot
Niagara Health and
Bioscience Research
Complex will focus on
n Massive study will track health of aging Canadians
bringing bio-innovations McMaster University leads a cutting-edge national of Clinical Epidemiology & Biostatistics.
study on aging and health that will follow 50,000
Feature research
to market and will “Some people age in a healthy fashion despite many
Canadians of boomer-age and beyond for the next physical health challenges, while others who are in
be home to labs and two decades. good physical health age less optimally,” he said
greenhouse space, Researchers with the Canadian Longitudinal Study after the announcement. “The (study) will answer
classrooms, a business on Aging will collect information on the changing questions that are relevant to decision-makers to
incubator and other biological, medical, psychological, social and improve the health of Canadians.”
economic aspects of subjects who take part in the Among other things, the comprehensive study will
units.
study. The study team intends to examine health provide age-related information that will benefit
trends and directions over a longer-term period – government health and medical programs and
Construction of the
data that will increase the understanding of services for aging Canadians.
$109 million facility health problems that beset seniors.
is expected to begin In addition to starting at human mid-life, the study
The $30 million study, announced by the federal is the first to collect social and economic retirement
this summer. government in May, will be led by McMaster’s factors, as well as clinical and biological measures. n
Parminder Raina, professor in the Department
6 Bio-Matrix is a quarterly newsletter published by GHBN. Director and editor: Darlene Homonko
Writer: Mike Pettapiece Graphic Design: Nadia DiTraglia