April 2005
New spin-off shows the economic power of university research
David Johnson
President and CEO, BioCrossroads Life Sciences Initiative
As you read this, more than 250,000 Americans suffer from a serious spinal cord injury, with 11,000 more joining their ranks every year. For these patients, life will never be the same. And the weight of their collective tragedy carries a tremendous financial cost as well; treatment cost for such injuries can approach $650,000 in the first year and $120,000 a year subsequently.
In mid-April, a partnership between Purdue University and a new Indiana company, Andara Life Science, took the first steps towards improving the quality of life and easing the fiscal burden of sufferers of catastrophic spinal injuries. This alliance is also emblematic of the kind of academic-private sector collaboration that holds the key to Indiana’s economic future.
The story begins with a team of researchers at Purdue’s Center for Paralysis Research. This team, led by Dr. Richard Borgens, developed a device called the oscillating field stimulator (OFS), which stimulates nerve regeneration and has been shown to generate some sensory recovery in initial human trials. This technology is being licensed to Andara to develop commercially-available treatments; Borgens now serves as Andara’s Chief Scientific Officer and the company’s CEO, Mark Carney, is a Purdue alum. Andara is also being provided business development services by the Purdue Research Foundation.
Andara is a perfect example of how university research can pay off with a new business opportunity for Indiana’s economy, especially in the life sciences and technology sectors. An idea that begins in an academic laboratory can find its way into the private marketplace where — with the right mixture of capital, technical expertise, and business acumen — it can flourish into a thriving company that creates good jobs for Hoosiers. Andara is moving along this path; this week, the company joins two other life sciences companies that have licensed Purdue technology and will occupy space at INTECH Park, Indianapolis’ second Certified Technology Park.
Andara is part of a growing portfolio of economic benefits from our universities. A recent study by the State of Connecticut ranks Purdue among the top ten universities in the U.S. for commercialization and business formation activity, alongside such traditional powerhouses as MIT and Stanford. In Indianapolis, the Indiana University Emerging Technologies Center is drawing on the research base at the IU School of Medicine to become of the fastest-growing university incubators in the nation. From 2002-2004, more than 30 companies were formed through Purdue and IU.
Our universities are emerging as some of the state’s most important economic assets — and they deserve to be treated as such. The General Assembly should craft a two-year budget that provides significant funding for higher education research and tech transfer activities; if recent history and examples like Andara are any indication, this investment will be repaid handsomely.
The state is already supporting public universities, of course, through operating budget support. The last state budget also marked the first specific appropriations for university capital research projects, like Purdue’s Birck Nanotechnology Center and IU’s Information Sciences facility. Many promising academic-industry partnerships have been funded by grants from Indiana’s 21st Century Research and Technology Fund. The initial Purdue research that led to the Andara deal was made possible by a special state appropriation, as well as private gifts.
But we need to do more. The new administration has pledged a creative new approach to economic development. They’ve dissolved the Indiana Department of Commerce and reorganized as the Indiana Economic Development Corporation, a public-private partnership. They’ve proposed aggressive new incentive programs to attract businesses to Indiana.
But as we look at ways to grow Indiana’s economy, we can’t ignore the intellectual capital that leads to growth in cutting-edge industries like the life sciences. A fresh approach to economic growth must include support for research innovation in our universities, so often the starting point in the business development lifecycle.
The formation of Andara Life Science means new hope for those living with spinal cord injuries. There’s no promise of a miracle cure: the OFS treatment means some regained sensation and motor function — there is much work to be done before there’s talk of these patients rising from their wheelchairs or walking unassisted.
In much the same way, Andara is a sign of hope for Indiana’s economy, a glimpse of the kind of knowledge-based, entrepreneurial marketplace we can become. But again, there’s a lot of work ahead, and we all — public, private and academic sectors — have a role to play. The General Assembly can keep the momentum going by passing an innovation-friendly budget that supports higher education and paves the way for more Andaras to come.
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