An afternoon with Sir Ken and Lady Murray

I often use Biogen as an important early example of a Biotech Business, but it is pretty unusual in some respects; in particular in respect of their strategy at the outset for choosing, harnessing and then translating emerging knowledge in Molecular Biology in the 1970s. I then immediately think of the enormously inspiring afternoon I spent with Ken Murray and his wife Noreen. Ken was one of the scientific founders of Biogen and Noreen was a pioneer in the development of early methods for cloning genes using bacteriophage vectors. (They spent the majority of their careers and lives at the University of Edinburgh: you can find them on Google, ). Noreen died in May 20011 and Ken died a couple of years later: they had both technically retired many years earlier! I was fortunate enough to know them both and spent a memorable afternoon with them both at their home in Edinburgh just before Noreen died. At this time Noreen was unable to speak, but had no problem communicating, as Ken was the perfect host, attending to both our needs while attending to our needs and filling in any gaps in the conversation. We talked about their lives in Science, the people they knew and had known and the circumstances surrounding the early days of Biogen.

Ken left school at the age of 16 to become a lab technician at Boots in Nottingham. From there he studies for his degree part time and finally obtained a PhD in microbiology from the University of Birmingham. After around 10 years at the University of Edinburgh, Ken and the other founders of Biogen met in Geneva in 1978, and included in addition to Ken, Walter Gilbert and Phillip Sharp(who would both later receive Nobel Prizes). The idea was to create a company that fostered the development of a number of ideas that were emerging from the research labs of the founders. Charles Weissmann, the Hungarian born Swiss scientist, probably had the discovery that was forecast by many to bring fortune to Biogen: he had cloned the wonder molecule interferon. However, it was Ken's work on developing the first genetically engineered vaccine against Hepatitis B, that proved their biggest initial success. So much so that on his death last year, Ken's estate amounted to over £12m, the bulk of which was left to the Darwin Trust for the promotion of research, in particular postgraduate scholarships, the remainder being distributed around the scientific communities in the UK.

Ken and Noreen were in many ways traditional scientists who many would say were working on esoteric subjects: the fundamental principles of genes and proteins in bacteria and bacteriophage. However, it was their personal experimental skills, their love and respect for their chosen fields, that led to their influential work both in understanding fundamental aspects of Molecular Biology, but in making the world a better place to live. Both Ken and Noreen had an incredible grasp of the literature and any important discovery was read in detail: their own published work was always a tour de force. Ken carried out the key Hep B experiments under containment level facilities at the MOD, while Noreen was still plating bacteria and phage in a quiet corner of a lab until the very end! Their selfless pursuit of scientific truth led them to considerable wealth, which they then gave back to the organisations that they cherished in order to continue the pursuit of knowledge: a rare example of the powerful combination of Pure and Applied Science and humanity.

Zero energy buildings and recycling

Over the weekend, I enjoyed listening to Forum on Radio 4 in which Bridget Kendall interviewed experts in recycling. I also noticed the announcement that Craig Venter's new Institute (left) has come to fruition in San Diego near UCSD, The Salk Institute and The Scripps Institute, as the draw of Southern California continues. I wonder if you have looked seriously into the sustainability of your business ideas?

The Journalist Adam Minter, who has recently published the book entitled Junkyard Planet, described the recycling route of mobile phones. First they are shipped to China (low labour costs) and they then go direct to Africa where there is a buoyant market pre-owned (we used to call them second hand or used, but this is less market friendly!) phones. If not fit for sale, they are refurbished first and then shipped, or alternatively stripped for parts and finally pulverized for possible recovery of precious metals. The glass is a problem, since it can rarely be recycled successfully. It reminded me of the scene in Blade Runner, where Philip K Dick conjures up images of scavenging and recycling in a sophisticated, but seedy downtown California of the future!

Think about your business ideas in the long term and you may improve the chances of success and investment!

Making money out of paracetomol and aspirin

The cost of a pack of 32 paracetamols over the counter can be as little as 25p. That works out at less than 1p per tablet, and that includes a box, a leaflet and the plastic and foil packaging. Not much of a margin in this! So what's the catch? I also looked at the cost of a white sliced loaf: 47p in a well known supermarket! Think about the costs in producing a loaf at home, using your own ingredients, oven and time! Finally, what about baked beans, the staple of students (in my day at least): 24p a can. What's going on! There's the cost of the can, the beans, their preparation, energy costs and the canning process itself, not forgetting the advertising costs. Well of course it comes down to where you buy them from, where they are manufactured and how many you can sell and a few other factors. 

Compare this with Chanel number 5, retailing at about £200 for a 30ml bottle! Or a a 3 year old Ferrari for about £200 000. Clearly pricing is a complex issue. What isn't complex is to work out the cost of manufacturing of a particular item. Then you factor in the savings associated with scaling up production (typically ingredients cost less per unit when you buy in bulk). However, this isn't the only explanation, since even allowing for the savings on costs of manufacture by outsourcing production to countries with low labour costs, for example, sometimes the sale price represents a loss. This is only possible for a limited period, where you are trying to get customers hooked on your product so that they remain loyal when you increase the price. Alternatively, a large supermarket chain may draw in customers to buy baked beans or bread at loss leading prices, knowing that they will spend more than they bargained for on items they don't really need. Stores that sell multiple items can spread their profit margins in very creative ways. 

Think about the psychology of marketing when planning your business. Why do supermarkets surround the check outs with sweets? That's the place where you linger, where your children start getting restless. Need I say more! The other issue is how do you position your product which you know is high quality when your competitors are cutting corners to reduce the selling price? This is when you need to think about marketing and branding. Again think of how Ferrari can sell a vehicle to get you back and to from work with a fuel consumption that is probably (I don't speak from experience here) 10 times worse than a Ford Focus! Then there are the tyres to replace.....

Let me have some feedback on your ideas and how you are getting on. Why not look at some businesses and see how they market via the internet. Next I shall say a few things about the different ways in which start up companies raise funding to get started. 

I'm not triskaidekaphobic!

Today's session was a lively one with thirteen new committees working towards the development of ideas that could form the basis of a set of new enterprises. This is the first time that M2M has been tried out at Level 2 and I was delighted with the bustling atmosphere and the engagement shown by everyone I spoke with. There were a number of ideas proposed, ranging from Phage Therapy to Synthetic Burgers, which made it immediately apparent that you were beginning to draw on the diversity of subject matter  from your varous degree courses, together with an awareness of what's in the News. This all goes to reinforce my view that by setting you the challenge of developing a business application of an area of Life Science, you not only improve your understanding of that Science, but you also acquire a wide range of transferable skills.

Here are some of the questions and issues that came up today. 

 "Do we need to invent something completely new?" Of course not, the aim is to explore an area of Science that interests you and then to explore its potential for making money, or for developing a social enterprise. Someone asked if student IP was the property of the University. I am delighted to say no. Any IP you develop alone (apart from any formulated in conjunction with a University member of staff) is yours. The ideas I discussed with you all were, without exception, appropriate for starting a business. The challenge your committees face, is to offer something new, something competitive and something either sustainable, or a business with a clear and attractive exit strategy.

What about the differences in Business planning in respect of a high quality, low volume product, versus a low cost-high volume product? Again, you have to work through the likely pricing structure that would be attractive to your customer base. In fact think about your complete offering and then begin to consider your customer base and refine your Business strategy accordingly. Think about the following types of product and how you might structure the business to deliver them. Aspirin or paracetamol, both as off patent drugs (think how much a pack of 32 costs in a supermarket). Anti-breast cancer drugs such as tamoxifen, or the challenges associated with the successful re-branding of thalidomide for anti-cancer therapy, after its disastrous launch for the relief of morning sickness in pregnant mothers in the late '50s and early '60s. Or maybe you could think of the marketing of Coca Cola, where no patents exist, or the business models of RedX Pharma and Concertpharma.

Most of you had settled on a single idea, but some of you were still toying with more than one idea. Since I didn't get round to everyone, I thought I would reiterate that each committee, with more than one idea, should draw up a list of about 5 criteria that you all agree would be required to make a successful business idea that interests you. Each member should then consider and rate each of these ideas. Then, re-group and try and see whether the best idea emerges. You should do this as soon as you can between now and the next session, in order to firm up your Business and present your preliminary business pitch at the next session.

In this respect, for the next session, you should give a 2 minute pitch of your business idea, using a single power point or prezi slide. Emma will provide more details on the MOLE site. I am looking forward to seeing how you get on with the planning and committee meetings: good luck and let me know if you have any questions. Finally, look at the M2M Google Site and if you find some useful internet resources, please share them!

Planning a new enterprise

The first session of the second year Faculty "Molecules to Market" Module at Sheffield begins tomorrow. The aim is for me and Emma to facilitate a session in which you develop the ideas for setting up your virtual company. Typically, this involves a number of steps.

Think of an area of Science that you wish to exploit commercially. I always think that the word exploit sounds negative and slightly sinister, however by definition, it simply means "to make full use of and derive benefit from something (in this case a piece of knowledge)". You may wish to exploit the recombinant DNA technology surrounding the green fluorescent protein to make plants or fish that glow in the dark? You may consider developing a hand held, solar powered device for diagnosing infectious diseases in sub-Saharan Africa. Or you may want to develop a novel form of Bioenergy based on the unusual metabolic characteristics of halophilic blue-green algae. Whatever you choose to develop as the core of your business, you should construct a concise Mission and Vision statement that captures its essence.

Having decided on an idea, the next stage might be to stratify your team 
and to identify roles within the company. Who will be the CEO? What characteristics do you as a committee value in a leader and what will the

outside world; including potential investors, customers, collaborators and suppliers want to see as the "phenotype" for the CEO of your business. You may choose to develop your company as a not-for-profit organisation, you may require someone who is highly competitive in order to attract venture capital funding, or you may be looking for someone with sophisticated communication skills and a strong grasp of some complex Science. Make sure you identify and prioritize these qualities when you select your CEO. The same goes for your sales team, your chief scientific officer, your PR and HR representatives.

Then there is the matter of your image, your logo, your company name and your website and or social media presence. These are all issues that can make a huge difference to the success, the acceptance and the positioning of a business. We want you to consider this as holistically as possible,  by combining Science and Business with sales and marketing. Finally think about money. Will you require a significant investment of cash? 


Will you build your business organically? Who are likely to be your main competitors? How much money do you want to make in the first year, five years, or ten years and how realistic is this compared with your competitors? How much will you pay each other and how will you recruit your first employee? And where will your head office be? These are a few of the issues we hope you will consider tomorrow. Looking forward to it!

The building blocks of life: Lego!

I was looking at tweets from the Economist and I noticed an article relating to "Toy makers". You might think the toy makers Lego are as far removed from any Life Science business as it is possible. But all businesses share common elements, and I was curious to know why Lego had come to the attention of the Economist. Two things interested me. First, I like the Economists's "daily chart" in which they showcase data in the form of an "infographic". The presentation of Scientific data (like any set of numbers or observations) is central to ensuring the next stage in an experiment is as informed as possible and that its significance is fully recognised. Data presentations are also a key component in communicating Science to an audience whether they be experts, funding agencies, students, politicians or any member of the public. In my view, this is the responsibility of all Scientists. 

Back to the Economist. The Danish plastic brick makers claim that everyone on the planet owns on average 86 blocks! Its profits and numbers of employees have both doubled over the last 5 years, during which time its major competitors have more or less "flatlined". One of the key elements to their growth has been diversification. Their first foray into cinema, "The Lego Movie" made $70m in its first weekend of release. Then there has been the release of themed sets, such as the Star Wars series and the growth of Lego theme parks. All of this illustrates that once a brand becomes established and trusted, it becomes a platform for the expansion and diversification of business opportunities. Compare this with Unilever, who were early pioneers in branding and innovative marketing in the UK (as Lever Brothers originally). I recently read Charles Wilson's fascinating "History of Unilever": just a look at the web link will show you that they utilise a multiple branding model, which relies on the company name rather than their major product. So when you ar looking at Business Planning, don't confine yourselves to me-too companies, look a little farther afield. There are certainly business models that are tried and tested that relate to classes of products (just think of breakfast cereal and washing powder advertising), but innovative Science must be combined with business innovation in order to improve the chances of business success.

Synthetic Biology

Synthetic Biology is the flavour of the month. It is being promoted as the economic saviour of the Western World. For years governments in the USA, Japan, Russia and Europe in particular, have invested in the fundamental aspects of Molecular Biology. Indeed, it is now 60 years ago since Watson and Crick's landmark paper on the DNA double helix, which was followed by elucidation of the genetic code, the development of molecular cloning and genome sequencing technologies. It is no surprise therefore that politicians, and the public in general, believe it is about time we saw the fruits of this major investment for the benefit of mankind, and the development of new industries and jobs. Is this optimism misplaced? Is it hype or is there any substance to these hopes and aspirations?

Craig Venter (left) is no stranger to controversy. Months before the announcement of the completion of the sequencing of the human genome, the tension and disagreements between the Public Sector project (HUGO) and the Venter led commercial project (Celera) made the news headlines in 2010. The Daily Mail ran the headline: "Scientist accused of playing God after creating life by making designer microbe from scratch - but could it wipe out humanity?" Whether you agree or disagree with the critics, Venter along with his long-term collaborator, Hamilton (Ham) Smith (who shared the Nobel Prize in 1978 with Werner Arber and Dan Nathans for their work on microbial Restriction and Modification) have ignited the fuse of a revolution in contemporary Molecular Biology. They published the first synthesis and functional expression of a complete genome, paving the way for the transfer of Biosynthetic gene clusters from a wide range of genomes into Biotech-friendly hosts. In my view this is not only a major, technical  tour de force but looks set to meet  the optimistic aspirations of the politicians.

I was interested to see that the number of companies and research institutions (including Universities) engaged in Synthetic Biology, has tripled over the last 4 years: with Europe already outstripping the USA (although California remains the centre of gravity). The major areas of application are in speciality chemicals, biofuels and medicine. I have been surprised by the diversity of companies who are pioneering this Translational area of Molecular Biology, they include longstanding companies like GSK, Unilever and Croda, as well as newer companies including, Cambimmune, Oxitec, Synthace, Synpromics and Ingenza. Take a look and see whether you think the promises will come to fruition!