Back Issue


reports and analyses of the forces driving
science and technology investment in Canada

copyright 1999, Research Money Inc.

editor: Mark Henderson


Volume 12, Number 20, DECEMBER 22, 1999

How it looks to me.... by Mark Henderson

| FEATURE REPORTS | RESEARCH BRIEFS | MEDICAL BRIEFS | PERSONALITIES |

 

How it looks to me....


by Mark Henderson, editor, RE$EARCH MONEY Canada's microelectronics sector has consistently outperformed other sectors of the knowledge-based economy and it's done so without a coherent national strategy. That's about to change if the current push for new funding in the next federal Budget is successful (link to report).

Backers of the proposal fear that their late entry into the annual Budget sweepstakes may hinder their chances in February. There's also some confusion surrounding a similar but larger Budget initiative spearheaded by the Canadian Institute of Telecommunications Research.

If the proposal isn't developed enough to gain the confidence of our political decision makers, then perhaps it should be sent back to the drawing board for fine tuning. But if its timing is the reason for being turned away, then government should take a serious look at the whole process of picking Budget winners and losers. Funding decisions should be based on merit and not whether it fits into an increasingly pre-determined process that seemingly rewards those with the best connections and slickest campaigns.

Microelectronics researchers contend they're treated as a poor relation to their sexier software cousins. In fact, much of Canada's success in telecommunications is founded on hardware expertise. Its continued success should be fostered with more resources for research, infrastructure and strategy.


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FEATURE REPORTS...


  MONROE-BLUM REPORT CALLS FOR MAJOR CHANGES TO ONTARIO'S TREATMENT OF UNIVERSITY RESEARCH
  ONTARIO CREATES ADVISORY COUNCIL FOR SCIENCE AND INNOVATION BUT DETAILS ON NEW BODY MUST WAIT UNTIL NEXT YEAR
  AUDITOR GENERAL'S EXAMINATION OF NSERC HAMPERED BY SMALL SAMPLE SIZE AND APPARENT LACK OF TIME
  MICROELECTRONICS SECTOR LAUNCHES LATE ENTRY PITCH FOR FUNDING TO BOOST RESEARCH AND TRAINING CAPACITY
  CF ROLLS AHEAD WITH NEW GENOMICS AWARDS

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RESEARCH BRIEFS


  • Eftia OSS Solutions closes private financing worth US$30 million
  • Quebec firms seeking RADARSAT work receive support
  • CIAR snares five-year grant from Dofasco for superconductivity
  • UBC and Telus ink five-year pact that includes new industrial chair
  • Univ of Alberta upgrades SGI computer to attract research talent
  • Energy Ventures claims to solve problem with methanol fuel cells




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Eftia OSS Solutions closes private financing worth US$30 million Eftia OSS Solutions Inc has completed its second round of venture capital financing with a group of investors, netting US$30 million. The financing is led by Apax Partners and Co Ventures Ltd and Spectrum Equity Investors. Also participating in the investment are Argo Global Capital Inc and Insight Capital Partners. Spectrum and Insight participated in Ottawa-based Eftia's first round of financing in October/98. Eftia is a provider of operational support system (OSS) solutions aimed at the huge telecommunications software market. The new funds will be used to develop the company's channel sales program, its professional services division and to make strategic acquisitions. Agro's participation in the financing is particularly important, given its connections with wireless operators ? an emerging market niche for Eftia....


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Quebec firms seeking RADARSAT work receive support The federal and Quebec governments are contributing $2.6 million for 14 industrial and research projects aimed at building the province's expertise in the area of remote sensing. The federal contribution was made through the Canadian Space Agency and follows a June/98 agreement under the Canada-Quebec Agreement on the Development of RADARSAT Applications. That pact earmarked $6.2 million for investment in Quebec-based projects involving the use of RADARSAT data. Under the industrial component of the agreement, six Quebec companies will share nearly $2 million: Del Degan Masse et Associes, Geomat International, Hauts-Monts, MIR Teledetection, Tecsult Foresterie and Viasat Geo-Technologie. The projects are worth a total of $3.7 million. The remainder will be distributed among seven university teams for research projects carried out under the Concerted RADARSAT Action Program. The program is managed by the researcher and research assistance fund of Fond FCAR, operating under the auspices of the Ministry of Research, Science and Technology....


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CIAR snares five-year grant from Dofasco for superconductivity The Canadian Institute of Advanced Research (CIAR) has received a five-year grant from Dofasco Inc to funds its Superconductivity Program. The program was launched in 1998 and builds on existing strengths in the field at McMaster Univ. Under the leadership of newly appointed director Dr Louis Taillefer, the Superconductivity Program will continue research into searching for new materials that superconduct at room temperature. Superconductors allow electric current to flow freely without dissipating into heat with no energy loss. Their current drawback is the extremely cold temperatures required for superconductivity to occur. Materials must be at least minus 200 degrees Celsius to demonstrate superconductivity....


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UBC and Telus ink five-year pact that includes new industrial chair The Univ of British Columbia has entered a five-year strategic alliance with Telus Communications Inc worth $4.1 million to support communications research and provide telecommunications services to the institution. The multifaceted deal will see the creation of a $500,000 Telus Mobility Industrial Research Chair, as well as funding for research in advanced communications technologies, and a fund to support information technology on campus. The agreement will also allow UBC to purchase products on a "best prices, products and practices" basis. In return, UBC staff, faculty and students must use Telus products and services for all telecommunications services not classified as personal. Telus and UBC have enjoyed a long history, which has seen the carrier provide support through endowments, a support fund, student bursaries and $1.25 million for the Chan Centre for the Performing Arts....


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  Univ of Alberta upgrades SGI computer to attract research talent The Univ of Alberta can lay claim to Canada's largest academic computer with recent expansions to its high performance system. The upgrade to its SGI Origin 2000 brings the number of its computer processors to 112. The university views the system as a powerful magnet to attract national and international researchers to the institution. As a university-wide resource, it will be available for use by a wide variety of disciplines. The upgrade is part of an innovative provincial initiative called Multimedia Advanced Computational Infrastructure and is led by Dr Jonathan Schaeffer (U of A) and Dr Brian Unger (Univ of Calgary)....


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  Energy Ventures claims to solve problem with methanol fuel cells North York ON-based Energy Ventures Inc has announced a major breakthrough in the area of direct methanol fuel cells. Working in conjunction with researchers at Austria's Univ of Graz, the firm claims it has resolved the problem of methanol cross-over that has historically restricted the technology. The technology breakthrough (for which a Canadian patent application has been filed) is associated with EVI's alkaline fuel cell program and may result in 30-40% improvement in output without the addition of membranes or electrodes. EVI was formed to act as a technology integrator for battery development to bridge the gaps between research, product development, battery manufacturing and consumer requirements. It has aligned itself with a worldwide network of scientists, researchers, engineers, equipment and material supply groups and manufacturers. EVI has also established an R&D facility on the Ottawa campus of the National Research Council, strengthening its relationship with NRC and expanding on its technical capabilities....


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MEDICAL BRIEFS


  • Visible Genetics Inc completes major private placement
  • Dimethaid receives $10 million from institutional investors
  • Lorus nets $6 million after purchase warrants exercised
  • Allelix and NPS shareholders approve merger
  • Heart Institute appoints acting DG following Keon resignation
  • CMDF seeking nominations for next Friesen-Rygiel Prize




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  Visible Genetics Inc completes major private placement Visible Genetics Inc (VGI) has completed a US$28.8-million private placement with a group of US and European investors. The funds are being earmarked for US marketing and manufacturing of its TRUGENE HIV-1 Genotyping Kit, new product development and general working capital. The private placement was completed with the sale of 1.916 million common shares priced at $15 per share, representing an 8.4% discount to the firm's December 9 closing price. Toronto-based VGI manufactures and markets high performance automated DNA sequencing systems and kits for the analysis of genes linked to disease....


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  Dimethaid receives $10 million from institutional investors Dimethaid Research Inc has completed its treasury offering of 2.469 million common shares for gross proceeds of $10 million, raising the total number of issued shares to 41.478 million. The entire offering was purchased by institutional investors. The new equity will be used to begin commercial scale up of production for its PENSAID Topical Lotion for the relief of pain caused by asteo-arthritis, new product development utilizing its proprietary transdermal delivery system and possible acquisitions. Rather than license PENSAID, Dimethaid plans to market the product in the US and elsewhere by manufacturing the drug itself or under contract....


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  Lorus nets $6 million after purchase warrants exercised Lorus Therapeutics Inc has obtained nearly $6 million in equity financing through an early exercise of two series of outstanding common share purchase warrants, adding to $10 million it recently raised with a private placement of special warrants. The Toronto-based developer of cancer therapies received $5 million whenthe holders of common share purchase warrants associated with Lorus' acquisition of GeneSense Technologies Inc exercised their warrants 36 months prior to their expiration. An institutional investor acquired a large block of the shares....


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  Allelix and NPS shareholders approve merger Shareholders have approved the merger of Allelix Biopharmaceuticals Inc, Toronto, and NPS Pharmaceuticals Inc, Salt Lake City UT, which is now expected to close by year end. The merger ends Allelix's long quest to find a new source of equity and will see its shareholders own one third of the new company. It will operate as NPS Pharmaceuticals Inc in the US and NPS Allelix in Canada and pursue new alliances with big pharma while adding value to selected proprietary programs. The new firm will carry out two advanced proprietary programs and push ahead with Phase II trials to develop small molecules for the treatment of hyperparathuroidism, in partnership with Amgen Inc....


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  Heart Institute appoints acting DG following Keon resignation The University of Ottawa Heart Institute has appointed deputy DG Dr Donald Beanlands to serve as acting DG following the abrupt resignation last week of Dr Wilbert Keon. Keon, who founded the Institute and is considered one of Canada's foremost heart surgeons and researchers, stepped down after attending a police program for alleged customers of prostitutes. He will continue to be employed by the Institute as a surgeon, and is still being tagged to implanting the first HeartSaver VAD next summer. The ventricular assist device was designed and developed by a team at WorldHeart Corp, which grew out of the Institute and incorporated in 1996. Beanlands joined the Institute in 1976....


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  CMDF seeking nominations for next Friesen-Rygiel Prize The Canadian Medical Discoveries Fund is seeking nominations for next year's Friesen-Rygiel Prize, which is awarded annually to partners who transfer the most outstanding discovery from a Canadian institution into the commercial sector. The award will be made in May at the CMDF's annual conference in Toronto. Deadline for nominations is February 14/00 and the winners will be selected by an independent committee. Nominations forms are available at www.cmdf.com, or by calling (519) 858-1582....


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PERSONALITIES


Deb deBruijn has been appointed executive director of the Canadian National Site Licensing Project (CNSLP), the $50-million digital libraries project comprising 64 universities that is partially funded by the Canada Foundation for Innovation. The Univ of Ottawa is the lead institution and administrative office for the project and deBruijn will move to Ottawa to take up her new position, effective Jan 17. She is currently manager of the Burnaby-based British Columbia Electronic Library Network....

Sal Visca has been appointed chief technology officer for Infowave Software Inc, a Burnaby-based software developer for wireless and printing computing. Visca comes to Infowave from IBM Canada where he held several senior positions over 12 years. Most recently, he was responsible for establishing IBM's Solutions Development Buiness Unit which develops e-business and e-commerce applications for the banking, airline and government sectors. Under his leadership, the unit grew to more than 200 people....

George Adams has been appointed president/CEO of the Univ of Toronto's Innovations Foundation, the university's technology licensing operation. Other new appointments in the area of technology transfer and commercialization include: Graham Strachan, former president/CEO, Allelix Biopharmaceut-icals Inc, as special advisor for biotechnology to the VP research and interna- tional relations; Adele Newton, business development officer for Bell Canada University Labs; and, Niclas Stiernholm, former business development specialist from Allelix, becomes BDO for life sciences....

Peter Kinash has been appointed CFO of Wi-LAN Inc, a developer of high-speed wireless data communications. Kinash was formerly with KPMG's information, communication and entertainment practice in Calgary. He has specialization in advising high-tech firms in the areas of financing, personnel, securities and accounting and taxation. Kinash replaces Ron Coveney, who is leaving Wi-LAN to pursue other interests....


RE$EARCH MONEY -- December 22, 1999
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