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reports and analyses of the forces driving science and technology investment in Canada
editor: Mark Henderson How it looks to me.... by Mark Henderson FEATURE REPORTS | RESEARCH BRIEFS | PERSONALITIES How it looks to me.... by Mark Henderson, editor, RE$EARCH MONEY Staying abreast of the lightning pace of developments at Newbridge Networks Corp is a challenge at the best of times, but recent moves by the Kanata ON-based high tech firm has made the task particularly onerous. In the days since Newbridge held its AGM on September 5, it has taken steps to further expand its technology base with a key equity investment and a follow-on purchase. Last week's 15% investment in Broadband Networks Inc has all the opportunistic earmarks of a savvy business decision. A chance phone call between Newbridge chairman/ CEO Terry Matthews and BNI president David Graves has sparked a partnership that gives Newbridge access to wireless broadband technology and markets (link to item). This week, Newbridge announced it was acquiring all the intellectual property associated with MPR Teltech Ltd's ATM switch product R&D assets, concluding an agreement that stretches back six years. In 1991, the two firms entered a strategic alliance to share ATM expertise, and with all MPR assets up for sale, the purchase underscores the value that alliance has provided for Newbridge's growth (R$, September 4/96). With $1,000 million in sales all but certain this year, Newbridge has plans to become much bigger. Alliances and an impressive network of affiliates indicate that the company is seeking firm control over its destiny in a sector notorious for surprising trends and technological developments. In short, truly world class.
FEATURE REPORTS...
NEWBRIDGE AFFILIATE STRATEGY, KEY ALLIANCES, STARTING TO
NEWBRIDGE STAKE IN BNI RAISES PROFILE,
BRISTOL-MYERS SQUIBB SIGNS LUCRATIVE LICENSING DEAL FOR
NUCLEAR PHYSICS FACILITIES ABOUT TO VANISH AS AECL'S FISCAL
ONTARIO UNVEILS TELECOMMUNICATIONS FUNDING PROGRAM TO
MAJOR NEW REPORT POINTS THE WAY TOWARDS REMOVING
FEDERAL GOVERNMENT NAMES MEMBERS
RESEARCH BRIEFS
Vascular Canada raises $12.25 million for Vasoflux The Canadian Medical Discoveries Fund (CMDF) is investing US$4.5 million in Vascular Therapeutics Canada Inc, as part of a $12.25-million private placement. The Canadian subsidiary of Mountain View CA-based Vascular Therapeutics Inc conducts most of the firm's product development and all of its drug discovery activities through the Hamilton Civic Hospitals Research Centre. Vascular was formed two years ago and has already filed several patents based on research performed at the Centre, which is a joint initiative of the Hamilton Civic Hospitals and the Faculty of Health Sciences at McMaster Univ. The financing will assist Vascular in developing Vasoflux, which is entering Phase I clinical trials and has shown potential for the treatment of acute cardiovascular conditions such as blood-clotting associated with heart bypass surgery. The private placement also includes $2.5 million from MDS Health Ventures and the Health Care & Biotechnology Capital Corp. Combined with contributions from McMaster, the investment in Vascular totals CDN$20 million....
CMDF invests in Nexia and Drug Royalty Corp Canadian Medical Discoveries Fund (CMDF) has invested $2 million in Nexia Biotechnologies Inc, Montreal, as part of a $6-million private placement, to develop a proprietary biopharmaceutical production process aimed at reducing the time and cost of developing new drugs. MDS Health Ventures Inc and Soci‚t‚ Innovatech du Grant Montr‚al are also participating in the placement, following their $2.5-million initial round investment at an earlier stage. Nexia's production process is aimed at reducing the time it takes to create commercial quantities of proteins and enzymes used in the development of drugs, cutting traditional manufacturing costs to as little as one per cent of current methods. The placement will be used to move Nexia's research up to clinical trials. The technology has also led to the development of neutraceutical additives used to neutralize the effects of lactose in dairy products.... In other news, CMDF has purchased 5.36-million common shares of Drug Royalty Corp (DRC) for $7.5 million, and acquired 803,550 warrants to acquire common shares for $2-3 over the next three years. The share purchase comes on the heels of a $15.8-million deal DRC struck with Ethical Holdings plc for royalty interests and a portion of the Canadian licence in Ethical products. DRC's cash and cash equivalents now stand at $32 million, net of taxes. Toronto-based DRC develops and acquires royalty rights in emerging and existing drugs and provides shareholders with opportunities to participate. It now has 31 million shares outstanding....
Semiconductor reps support Manley on Asian promo tour Senior representatives from several Canadian semiconductor firms are accompanying Industry Canada minister John Manley on a tour of Asia to promote Canada as an ideal site for a future fabrication facility. The National Semiconductor Investment Promotion Campaign is a joint effort by industry, Industry Canada and the Department of Foreign Affairs and International Trade to convince one of Asia's fabrication firms to locate in Canada. The Canadian companies making the trip are: Northern Telecom, Tundra Semiconductor Corp, Mosaid Technologies Inc, Mitel Semiconductor, C-MAC Industries Inc, Genesis Microchip and Gennum Corp. Firms being targeted by the campaign include Sony, Hitachi, Matsushita, Mitsubishi Electric, NEC, Fujitsu, Sharp, Sanyo and Oki. Meetings will also be held with the Semiconductor Research Institute of Japan and the Semiconductor Equipment Association of Japan. For more details on the tour and its implications for the Canadian microelectronics industry, refer to the September 12, 1996 issue of The Electronics Communicator, an affiliate information service of Evert Communications Limited....
CAVI considers capping future venture capital fundraising A second high-tech focused venture capital fund is considering limiting new investment in the face of new Ontario legislation shortens the time permitted to reach investment plateaus to avoid tax penalties. Capital Alliance Ventures Inc said at its recent AGM that it will decide on whether to cap new investment at $10-20 million during the next RRSP season after examining the fine print of provincial regulations due to be released shortly. Among the new Ontario rules announced in the last Budget, 70% of a fund's capital must be invested within 22 months of being raised, while 50% of funds raised during the 1997 RRSP season must be invested by the end of the year. CAVI now has $35 million under management, with $30 million raised during the last RRSP season alone. To date, $6.5 million has been invested in several technology firms, with several more deals nearing completion. Earlier this year, Working Ventures Canadian Fund Inc announced it would halt sales of new shares for at least one year (R$, June 12/96)...
Cloning of ginseng at Simon Fraser Univ a world first A Simon Fraser Univ scientist has cloned North American ginseng for the first time in the laboratory, growing the plant in one-third the time it takes in a natural environment. The work of Dr Zamir Punja is expected to lead to improvements to ginseng farming throughout the world, including British Columbia where it is the province's second most valuable cash crop at $50 million annually. Punja will now focus on producing a strain resistant to fungal diseases and pests. Cloning opens the door to enhancing the genetic potential of the plant in a short time period, although it is still more costly to clone ginseng than via seed germination. About 90% of BC's ginseng crop is exported to Asia....
Nortel tests show CDMA delivers wireless voice quality Northern Telecom has announced that recently completed vocoder tests with code division multiple access (CDMA) speech coders demonstrate voice quality equivalent to wireless telephones. The tests were conducted at Nortel's subjective assessment laboratory in Ottawa using 120 listeners and also showed that equivalent quality were also possible using time division multiple access and the global system for mobile communications coders. The tests were conducted to show that voice quality using PCS and cellular handsets equalled that achieved by office-based wireline telephones....
Biomira teams with Neoprobe for breast cancer detection Edmonton's Biomira Inc has entered an exclusive licensing agreement with Neoprobe Corp, Dublin OH to use its monoclonal antibody component -- PAb-170 -- with Neoprobe's technology for the surgical detection of breast cancer. The agreement involves upfront fees to Biomira, as well as future milestone payments and royalties. MAb-170 is the antibody component of Biomira's Tru-Scint AD kit now in Phase II/III clinical trials in the US as an imaging agent for the detection of recurrent breast cancer. The Neoprobe agreement extends its use to a novel surgical detection approach....
Cangene licenses protein to Korean pharmaceutical firm Cangene has signed a licensing deal with Korea's Cheil Jedang Corp (CJC) for its Leucotropin drug, a protein that stimulates production of white blood cells. CJC will conduct clinical trials and market the drug in Korea following successful regulatory approvals.....
PERSONALITIES
Newbridge Networks has created two senior positions within its management ranks to address emerging markets. Claude Haw, previously VP fast packet networks, has moved to the newly created position of VP broadband alliances. He will oversee R&D programs for the Newbridge-Siemens alliance and develop joint marketing, sales and support groups. Tony Lavia, assistant VP ATMnet business management, replaces Haw as VP of the renamed ATMnet business unit. Prior to joining Newbridge, Lavia spent nearly 20 years with Bell Canada and Northern Telecom, most recently as VP/GM broadband switching. James Arseneault, previously VP MainStreet access products, has been named VP synchronous transport networks. He replaces David Black who becomes VP emerging businesses group. This new unit will focus on broadband wireless, photonics and high-speed copper access....
Applied PeR$pectivesBuilding with CCNB-INNOV… Relationships that go a Long Way! CCNB-INNOV, the applied research and development arm of CCNB has adapted its range of services to better meet the unique needs of the regional shipbuilding industry.
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