Commercializing nano: US, Spain, and RUSNANO

Late September 2011 saw the Nanomanufacturing Summit 2011 and 10th Annual NanoBusiness conference take place in Boston, Massachusetts (my Sept. 21, 2011 posting). Dr. Scott Rickert (President and CEO of Nanofilm) writing for Industry Week noted this about the events in his Oct. 14, 2011 posting,

I witnessed an American revolution catch fire in Boston, and I feel like a latter-day Paul Revere. “The nanotech economy is coming, the nanotech economy is coming!” and that’s good news for the U.S. — and you — because we’re at the epicenter.

Let’s start with commercialization. Ten years ago, when I walked into the inaugural version of this conference, I was one of the few with money-making nanotechnology products on the market. This time? The sessions were packed with executives from multi-million dollar businesses, and the chatter was about P&L as much as R&D. Nano-companies are defying Wall Street woes and going public. And even academics were talking about business plans, not prototypes.

Dozens of companies from Europe, Asia and the Middle East were at the conference. Their goal was tapping into the American know-how for making science into business.

Seems a little euphoric, doesn’t he? It’s understandable for anyone who’s worked long and hard at an activity that’s considered obscure by great swathes of the population and finally begins to see substantive response. (Sidebar: Note the revolutionary references for a conference taking place in what’s considered the birthplace of the American Revolution.)

Speakers at MIT’s (Massachusetts Institute of Nanotechnology) EmTech event held in Spain on Oct. 26-27, 2011 were are a bit more measured, excerpted from the Oct. 27, 2011 posting featuring highlights from the conference by Cal Pierce for Opinno,

Javier García Martínez, founder of Rive Technology and Tim Harper, founder of Cientifica.com presented their view of how nanotechnology will transform our world.

Harper took the stage first.

“We have spent $67 billion on nanotechnology research this decade, so you can imagine this must be an important field,” he said.

Harper believes that nanotechnology is the most important technology that humans have developed in the past 5,000 years. However, he spoke about the difficulties in developing nanotechnology machinery in that we cannot simply shrink factories down to nano-scales. Rather, Harper said we need to look to cells in nature as they have been using nanotechnology for billions of years.

….

Harper spoke about the dire need to use nanotechnology to develop processes that replace scarce resources. However, the current economic climate is hindering these critical innovations.

Javier Garcia then spoke.

“Graphene, diamond and other carbon structures are the future of 21st-century nanotechnology,” he said.

Garcia says that the next challenge is commercialization. There are thousands of scientific articles about nanotechnology published every year which are followed by many patents, he explained. However, he reflected on Cook’s ideas about funding.

“There is still not a nanotechnology industry like there is for biotechnology,” he said.

Finally, Garcia said successful nanotechnology companies need to build strong partnerships, have strong intellectual property rights and create a healthy balance between creativity and focus. Government will also play a role with simplified bureaucracy and tax credits.

Hang on, it gets a little more confusing when you add in the news from Russia (from Dexter Johnson’s Oct. 26, 2011 posting titled, Russia Claims Revenues of One-Third-of–a-Billion Dollars in Nanotech This Year on his Nanoclast blog on the Institute for Electrical and Electronics Engineering [IEEE] website),

One of the first bits of interesting news to come out of the meeting is that: “In 2011, Rusnano has earned about 10 billion rubles ($312 million) on manufacturing products using nanotechnology — nearly half of the state corporation’s total turnover.”

We should expect these estimates to be fairly conservative, however, ever since Anatoly Chubais, RusNano’s chief, got fed up with bogus market numbers he was seeing and decided that RusNano was going to track its own development.

I have to say though, no matter how you look at it, over $300 million in revenues is pretty impressive for a project that has really only existed for three years.

Then RUSNANO announced its investments in Selecta Biosciences and BIND Biosiences, from the Oct. 27, 2011 news item on Nanowerk,

BIND Biosciences and Selecta Biosciences, two leading nanomedicine companies, announced today that they have entered into investment agreements with RUSNANO, a $10-billion Russian Federation fund that supports high-tech and nanotechnology advances.

RUSNANO is co-investing $25 million in BIND and $25 million in Selecta, for a total RUSNANO investment of $50 million within the total financing rounds of $94.5 million in the two companies combined. …

The proprietary technology platforms of BIND and Selecta originated in laboratories at Harvard Medical School directed by Professor Omid Farokhzad, MD, and in laboratories at MIT directed by Professor Robert Langer, ScD, a renowned scientist who is a recipient of the US National Medal of Science, the highest US honor for scientists, and is an inventor of approximately 850 patents issued or pending worldwide. Drs. Langer and Farokhzad are founders of both companies. [Farokhzad was featured in a recent Canadian Broadcasting Corporation {CBC}, Nature of Things, television episode about nanomedicine, titled More than human.] Professor Ulrich von Andrian, MD, PhD, head of the immunopathology laboratory at Harvard Medical School, is a founder of Selecta.

Selecta pioneers new approaches for synthetically engineered vaccines and immunotherapies. Selecta’s lead drug candidate, SEL-068, is entering human clinical studies as a vaccine for smoking cessation and relapse prevention. Other drug development programs include universal human papillomavirus (HPV) vaccine, universal influenza vaccine, malaria vaccine, and type 1 diabetes therapeutic vaccine.

BIND develops targeted therapeutics, called Accurins™, that selectively accumulate at the site of disease to dramatically enhance effectiveness for treating cancer and other diseases. BIND’s lead candidate, BIND-014, is in human clinical trials as a targeted therapy for cancer treatment. BIND’s development pipeline also includes a range of cancer treatments and drugs for anti-inflammatory and cardiovascular conditions.

Here’s an excerpt from Dexter Johnson’s Oct. 28, 2011 posting where he muses on this development,

It seems the last decade of the US—along with parts of Europe and Asia—pouring money into nanotechnology research, which led to a few fledgling nanotechnology-based businesses, is finally paying off…for Russia.

In the case of these two companies, I really don’t know to what extent their initial technology was funded or supported by the US government and I wouldn’t begrudge them a bit if it was significant. Businesses need capital just to get to production and then later to expand. It hardly matters where it comes from as long as they can survive another day.

Dexter goes on to note that RUSNANO is not the only organization investing major money to bring nanotechnology-enabled products to the next stage of commercialization; this is happening internationally.

Meanwhile, Justin Varilek posts this (Nanotech Enthusiasm Peaks) for the Moscow Times on Oct. 28, 2011,

In nanotechnology, size matters. But federal funding for the high-tech field has tapered off in Russia, flattening out at $1.88 billion per year through 2015 and losing ground in the race against the United States and Germany.

If this were a horse race, nanotechnology-enabled products are in the final stretches toward the finish line (commercialization) and it’s still anyone’s horse race.

Note: I didn’t want to interrupt the flow earlier to include this link to the EmTech conference in Spain. And, I did post a review (Oct. 26, 2011) of More than Human, which did not mention Farokhzad by name, the second episode in a special three-part series being broadcast as part of the Nature of Things series on CBC.

3 thoughts on “Commercializing nano: US, Spain, and RUSNANO

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