Nexia Biotechnologies Inc. (fka NXB)

[guy20817]

Initial investment and other Nexia info:

"How did Nexia get started?

Nexia was founded in 1993 in Montreal, when technology and intellectual property, developed in Dr. Jeffrey Turner's laboratory at McGill University, was combined with venture capital support from MDS Capital Corp., and Innovatech Grand Montreal. The business concept was the production of rare recombinant proteins in the milk of domesticated dairy animals. The company was then supported by private investors from the Ontario Teachers Pension Plan, RBC Capital Corp., and CDP-Sofinov in three more rounds of funding. In Dec. 2000, Nexia completed the largest Initial Public Offering in the history of Canadian Life Sciences, raising CND $42.4 million to commercialize spider silk-based biomaterials and biopharmaceuticals in transgenic dairy goats.

What is Nexia's main area of research?

Nexia has a worldwide exclusive proprietary position in the development and manufacturing of recombinant spider silk (BioSteel®). Nexia has a vertically integrated R&D effort. Our partners work to find spiders that make better and different webs and then understand spider genetics. Nexia then transfer these genes, using modern reproductive techniques, into dairy goats to produce silk proteins in their milk. Lastly, the silk proteins are spun into fibers for incorporation into new products.

Nexia also uses its transgenic goats to make recombinant pharmaceuticals. The manufacturing power of this system is evident when one understands that only 10 goats, currently living in Nexia's farm near Montreal, produce enough product to supply the world market for tPA (tissue plasminogen activator) a drug used to treat heart attacks and blood clots.

What obstacles did the company overcome?

Two main obstacles were overcome to date, during the growth of Nexia; understanding and mimicing biological complexity and understanding product development specifications. Nexia works on very complex proteins some of which cannot be manufactured economically with other biological systems. We first need to learn about the target genes and proteins involved, a process that is very demanding, and then use this knowledge to reproduce an authentic copy within our goat system.

Product specifications within the market place are dramatically different depending on the application of the spider silk. Nexia has managed these very different businesses by hiring specialists in each product development area, i.e. medical devices and industrial performance fibers, to interact with our client companies.

How did Nexia make its mark in the biotech industry?

Animal transgenics is an emerging manufacturing technology for the production of large quantities of authentic and rare recombinant proteins on a cost effective basis. Nexia has been recognized for innovative products and technical solutions to reduce costs and compress development time lines. For example, our BELE (Breed Early, Lacattion Early) goat genetics require just 8 months from gene to recombinant protein in the milk. This is a dramatic improvement compared to standard goats, sheep or cattle. On the product development side, Nexia is recognized internationally for its pioneering R&D in the large-scale production of recombinant spider silk and the spinning methods required to make useful fibers from this novel biomaterial.

Where is the company now in its corporate development?

Corporate development is focusing on product development and commercialization of BioSteel-based products. We develop business relationships where Nexia manufactures the recombinant proteins and spins them into fibers useful for particular applications either alone or with partners. BioSteel-based products are being evaluated for development of medical device applications, e.g. opthalmic micro-sutures; technical sporting gear, eg. high performance, biodegradable fishing line, and other industrial applications e.g. soft body armor for the military and law enforcement communities.

In the past year, what's been the most exciting accomplishment for Nexia?

Nexia, working with the US Army, was the first R&D group to produce authentic, recombinant spider silk fibers with significant mechanical properties [Science 295:472, 2002]. Our success was based on "biomimicry." First, our belief was confirmed that the similarities between the spider silk gland and the goat milk gland would be predictive of our ability to produce spider silk proteins in mammary cells. Second, when this silk protein was forced through a high shear spinnerette, the proteins self-assembled into strong spider silk fibers. Spider silk was chosen because it is considered by many to be the "Holy Grail" of material sciences, having unparalleled combination of strength, toughness, flexibility and lightness. Supply of our recombinant spider silk, termed BioSteel®, for applications in medicine, industry, military and technical sporting gear will be produced with herds of transgenic goats making spider silk in their milk. BioSteel technology combines the performance of advanced polymers within a sustainable, ecologically responsible manufacturing process and product.

What is Nexia's 10-year prognosis for the Canadian biotechnology industry?

The Canadian biotechnology sector will continue to develop superior, innovative small to medium sized companies because of the cost effective R&D programs. First, strong legislative support for biotechnology in the form of investment tax credits at the provincial and federal levels allows leverage of costly venture capital. Secondly, the weak Canadian dollar (compared to USD) provides cost effective funding of world-class research at Canadian universities. These factors combine to provide technical advances that are the basis of new ventures. Unfortunately, large Canadian biotechnology companies can be expected to be few because of limitations on large amounts of capital, labor and infrastructure.

In Nexia's opinion, what is the most important international issue facing the international biotech community, and how can we best handle it?

Manufacturing capacity of recombinant biopharmaceuticals and biomaterials is a major concern for international biotech community. Industry drivers include: an ever increasing number of protein-based drugs and medical devices clearing regulatory hurdles; expansion into large non-traditional markets e.g. China and a burgeoning R&D effort focusing on new protein products. Satisfying these demands will require expansion of existing traditional fermentation and downstream facilities which is capital intensive and stimulate the adoption of novel, low capital cost manufacturing technology such as animal or plant transgenic systems. Transgenics will provide many developing economies with a domestic manufacturing base for complex drugs and biomaterials with manageable capital expenditures."

From:
BIO 2002 International Biotechnology Convention & Exhibition
Life Advances

June 9-12, 2002
Toronto, Ontario, Canada
Metro Toronto Convention Centre

http://www.bio2002.org/press/guide/nexia.asp?l=en