Annual Review 2005-2006

Overview – working for a better world

The ultimate outcome in technology transfer and knowledge transfer is a
better world. Products and services based on university research improve our
quality of life, through better medical cures and advances in computing for
example. They also support a vibrant economy through creation of new
businesses and growth in existing ones. Much must happen to achieve this.
The achievements and activities we share in this report represent some of
the steps towards our “better world” objective.

At Cambridge our focus is on the innovative researchers exploring lines of

scientific inquiry, solving problems and considering how to best to share
their discoveries. These discoveries can lead to patents and licences – we
know that a product has reached its public if we are receiving royalties and
we know that knowledge transfer has been achieved if a consultancy project
has been completed. Importantly, these returns are reinvested in the process
of innovation at the University of Cambridge with £5.3m of the £6.2m in
technology and knowledge transfer turnover in 2005/06 being returned to
departments and academics.

This is a long-term investment – the royalties we report this year may be

based on ideas that were disclosed as far back as 10 years ago. The monies
we return to departments this year may seed ideas we will see as new
discoveries in the future.

It is a process that demands a long-term view, but also immediate and

constant attention. This attention is provided by the Cambridge Enterprise
team pictured on this page. These are individuals with industry as well as
academic experience, dedicated to seeing important ideas reach the public
and acting as a business resource for our world class academics. I’m new to
this team, having arrived towards the end of the 2005/06 fiscal year, but I
have grown quickly to appreciate their accomplishments and their
commitment to seeing that University of Cambridge innovations change the
world for the better.

Teri F. Willey
Chief Executive
Enterprise champions – Support for researchers
Enterprise Champions play an important role in providing Cambridge
Enterprise with an essential communication channel to and from the
University’s departments. The Champions meet regularly to discuss topics
related to commercialising technology and to discuss Cambridge Enterprise
activities and progress. These meetings also provide an opportunity for the
Champions to share departmental research priorities, “hot” technologies and
critique Cambridge Enterprise performance.

Our Champions have a wide range of backgrounds. Their experience ranges

from undertaking collaborative research with companies to commercialising
new technology, starting companies, fund-raising, and balancing the
demands of academic research and business.

Within their departments, the Champion acts as the first port of call for
researchers and academics who want advice on commercialisation routes
and helps their colleagues make the most of what Cambridge Enterprise has
to offer.

Currently there are fourteen Enterprise Champions:

Department Champions
Biochemistry Professor Peter Leadlay
Biotechnology Professor Chris Lowe
Cambridge Engineering Design Centre Dr Terry Dickerson
Centre for Entrepreneurial Learning Dr Shai Vyakarnam
Chemical Engineering Mr David Carter
Chemistry Professor Stephen Elliot
Clinical Pharmacology Dr Anthony Davenport
Engineering Mr Philip Guildford
Materials Science and Metallurgy Dr Rachel Hobson
Mathematics Mr Michael Simmons
Pathology Dr Nabeel Affara
Pharmacology Dr Tai-Ping Fan
Physics Professor Mike Payne
Veterinary Medicine Professor Duncan Maskell

Cambridge Enterprise Annual Report 2005-06 | 1

 CASE STUDY
LIFE SCIENCES
Dr Iain Thomas
The monitoring of patients in intensive
care involves a wide range of
equipment that produces a substantial
quantity of complex, constantly
changing information – novel
approaches to the analysis of this data
can improve patient outcomes. The
challenge is to collate the data in a
way that allows this analysis to be
conducted easily. The ICM+ software
developed by Dr Peter Smielewski and
Dr Marek Czosnyka from the
Department of Neurosurgery collects
information from a large number of
different bedside monitors, analyses it,
and presents it to researchers in real
time. The system provides a universal
tool for researchers in the clinical
environment allowing complex analysis
of multiple data sets with the
potential to inform new research in
this difficult area. Cambridge
Enterprise has successfully licensed this
new software tool to researchers
around the world and it is now being
used by 14 research centres.
2 | Cambridge Enterprise Annual Report 2005-06
Life Sciences
Finding biomarkers to help in the diagnosis of schizophrenia and bipolar
affective disorders is an important step forward for suffers of these
conditions. A new company, Psynova, has been founded by Dr Sabine Bahn
and Professor Chris Lowe from Cambridge’s Institute of Biotechnology to
commercially develop and exploit these novel biomarkers for
neuropsychiatric illnesses. Cambridge Enterprise has worked with the
founding academics to licence a suite of technologies and help secure
funding of £2.25m. Psynova will initially concentrate on schizophrenia and
bipolar affective disorders as there are no validated biomarkers and
diagnostics for these disorders, nor are the underlying disease processes
understood – current medications only offer symptomatic relief. Psynova will
address these deficiencies leading to improved personalised treatments for
patients.
Professor Lowe’s Cambridge laboratory is widely recognised for its innovative
work in holographic sensor technology. Cambridge Enterprise helped to
combine the significant market opportunity for these sensors together with
entrepreneurial academic drive and a sound intellectual property position to
enable Smart Holograms to be founded and attract significant investment.
During the year, eight additional technologies developed by members of this
lab including Jeff Blyth, Colin Davidson, Anthony James, Satyamoorthy
Kabilan, Mei-ching Lee, Alex Marshall and Ed Rayne have been licensed to
the company, further strengthening its patent portfolio. Applications include
glucose sensing and security applications.
The launch of the Reagents Database at Cambridge Enterprise has lead to
the more efficient completion of licences for antibodies, cell lines, stem
technologies and novel research materials. These licences allow Cambridge’s
research to be used in the wider research community with potential societal,
research and commercial benefits.
Not surprisingly, with the growing trend of interdisciplinary research,
increasing numbers of technologies are crossing the life sciences/physical
sciences boundary. For example, a revolutionary way of generating three-
dimensional ultrasound images has been developed by the Department of
Engineering’s Medical Imaging group. This technology, which uses cameras
to track the motion of an ultrasound probe, provides excellent images of
breast tumours and has been licensed to Cross Technologies for use in their
radiotherapy planning product.
Physical Sciences CASE STUDY

PHYSICAL SCIENCES
During the year Cambridge Enterprise has been involved with a number of
Dr Margaret Wilkinson
technologies from University departments which will benefit the
environment. Enval, a spin-out company from the Department of Chemical
How does the planet cope with the
Engineering, will contribute to the recycling of millions of aluminium-lined
growing volumes of aluminium-lined
drink cartons which are disposed of each year (see case study, right).
packaging produced worldwide? A
popular design of drinks carton is made
Cambridge Enterprise has helped Dr Karl Sandemann of the Department of
from thin layers of plastics, paper and
Materials Science and Metallurgy to patent a family of novel magnetic alloys.
aluminium (Tetra-pak®-style). The paper
A spin-out company, Camfridge, is using these alloys to develop magnetic
content of these cartons can be recycled
refrigeration systems for domestic appliances. The Camfridge system uses no
using a de-pulping process, but the
polluting gases and has the added advantage of high energy efficiency.
resulting residue, containing valuable
aluminium, is often sent to landfill.
Biodiesel fuel is now seen as a critical contributor to reducing carbon
Dr Carlos Ludlow-Palafox and
emissions. A team led by Professor Malcolm Mackley and Bob Skelton of the
Professor Howard Chase from the
Department of Chemical Engineering has developed a process and the
Department of Chemical Engineering
equipment for the manufacture of biodiesel from vegetable oils including
have developed a continuous process
many that can be sourced as unwanted bi-products or waste from other
based on microwave pyrolysis that
processes. Cambridge Enterprise has licensed this technology to a specialist
recovers this aluminium cleanly, ready
UK-based renewable fuels company. The deal both secures exploitation and
for re-use. A new company, Enval, has
has fostered good relations between researchers and the company. The
been set up to commercialise this
technology has potential to significantly reduce carbon emissions and make
technology. Cambridge Enterprise
waste disposal more efficient.
supported the Enval technology by
patenting the invention and providing a
Licensing software is always a significant activity in the physical sciences
Proof of Concept grant to build the first
arena. Examples this year include an electronic logbook for manufacturers to
prototype of the continuous process.
improve their operational efficiency and, on behalf of the Millennium Maths
The Cambridge Enterprise Seed Funds
Project, interactive mathematical problems licensed to a company selling
and the Business Creation team helped
educational software to schools. There are also a growing number of
to build Enval as a company, providing
collaborations with industry across the University, for example the Centre for
networking opportunities and initial
Advanced Photonics and Electronics (CAPE), where Cambridge Enterprise
investment. The Enval team entered the
manages the emerging intellectual property.
Cambridge University Entrepreneurs
business creation competition in 2005,
and won two categories, resulting in an
“angel investment” of £160,000 led by
Create Partners. Enval is now building its
first pilot plant with which it expects to
demonstrate the process to potential
customers during 2007.

Cambridge Enterprise Annual Report 2005-06 | 3

 Cambridge Enterprise Seed Funds
Investing in a Clean Tech future
Clean Tech – technologies such as green transport, energy efficiency and
clean energy production – is fast becoming the “hot” area for
technology investment. A number of venture funds including the Carbon
Trust, Climate Change Capital, Impax High Energy Investors and Low
Carbon Accelerator are raising new funds which total in excess of
£500m targeted at Clean Tech. These funds are looking for opportunities
in technologies as diverse as clean power, clean transport, energy
efficiency, waste recovery and water management.

Cambridge Enterprise Seed Funds (CESF) have considered a number of

proposals recently in the Clean Tech sector. In fact, if the definition is
stretched to include power-efficient controller chips, CESF has already
invested in five start-ups from the University any of which could have a
significant impact on Clean Technology in the longer term. In the cases
of Enecsys and Camfridge, CESF invested alongside the Carbon Trust and
expect to involve other venture firms, such as the ones listed above, as
the businesses grow.

Enecsys – founded by a team from the University’s Engineering

Department – is developing the “clever electronics” needed to convert
the direct current created by solar panels to alternating current. The
highly reliable inverters will be small enough to attach to individual solar
panels ultimately enabling householders to plug an off-the-shelf solar
panel directly into their domestic power supply to reduce electricity bills.
So far, the company has raised £500,000 including £80,000 from CESF.

CESF will continue to invest in Clean Tech into the future hopefully
encouraging others both to invest alongside and to provide follow on
funding. A combination of investors leverages CESF’s normal maximum
of £250,000 per investment. As well as funding, Cambridge Enterprise
provides support by helping to build management teams and by
introducing relevant venture funds to the founders.

4 | Cambridge Enterprise Annual Report 2005-06

Business Creation
Business Creation activities throughout the University have continued to
thrive with approximately 28 start-up ventures assisted during the year and
many more academics attending workshops and surgeries.

Business Surgeries have been fully booked almost every week showing the
appetite for expert advice by aspiring University entrepreneurs. Cambridge
Enterprise has also provided a series of events that cater to the varying
needs of start-ups from the idea stage through successive stages of
company growth and fundraising. For idea-stage inventors, we are planning
a series of mentoring breakfasts to bring together academics with early
stage technology ideas and industry-experienced mentors and business
angels covering a whole host of technology sectors within the high-tech and
biotech markets. For start-ups who have already reached early stage
milestones, highly focused Investors’ Forums are held to showcase
investment-ready University start-ups to an audience of business angels,
venture capitalists and other institutional investors.

Cambridge Enterprise manages a flexible short-lease incubator facility to

encourage the creation of new businesses. The incubator supported nine
tenants this year, including XenSource who graduated to bigger
accommodation in Cambridge. Other tenants include Hypertag which
expanded rapidly throughout the year.

Cambridge Enterprise Annual Report 2005-06 | 5

 Consultancy
The turnover from consultancy through Cambridge University Technical Services Ltd
(“CUTS”) nearly doubled from £1.58m in 2004/05 to £2.93m in 2005/06. The size
and content of the 103 new projects this year and nature of the clients continues
to be as diverse as ever. Engineering, the Clinical School, Applied Economics and
Land Economy were the major suppliers of expertise but the range of
departments engaged in consultancy work is growing and includes many science
and technology departments, the Judge Business School, as well as Criminology,
Geography, and Philosophy. Not only is the content diverse but the work is truly
international, providing services to clients in Australia, Asia, North America and
Europe.

The managed service that Cambridge Enterprise offers the academic community
has been greatly enhanced by the appointment of Jonathan Bailey as its first
full-time Associate dedicated to consultancy work. Jonathan, a geologist by
background, brings a wealth of experience of finance and commercial work
gained in the engineering consultancy, building and metals and mining sectors,
to the role.

A notable characteristic of Cambridge’s knowledge transfer through consultancy

is that the majority is bespoke work for external clients by individuals with
unique and world-leading expertise. The projects are carefully tailored to meet the
individual client’s needs while ensuring both the consultants’ and the University’s
interests are protected. Some large projects are carried out by multifunctional
teams using major physical facilities, where the University can offer a combination
of unique equipment and expertise unobtainable elsewhere; crucially, the content
of such work enhances the University’s core business of research and teaching.

For commercial and other reasons, an increasing number of large consultancy

projects are being handled through the CUTS service than as standard research
collaborations. This work has potential for future development and should
enhance the University’s capacity to interact with industry in a flexible and
effective way.

A growing number of companies, government bodies and other organisations

are turning to academics to provide them with expert advice and knowledge
to solve their problems or to act as expert witnesses. The transfer of knowledge
generated within the University into areas where it will achieve commercial
and public benefit is one of the key objectives of Cambridge Enterprise and
one of the fundamental missions of the University – to contribute to society
through the pursuit, dissemination, and application of knowledge.

6 | Cambridge Enterprise Annual Report 2005-06

Marketing
A central role for Cambridge Enterprise is using commercial channels to
distribute ideas for the benefit of society. The Marketing group at
Cambridge Enterprise facilitates partnerships with companies and investors
to help bring emerging ideas to market.

During the year key events bring together the innovation community to
increase awareness of Cambridge Enterprise’s commercialisation activities.
Audiences include companies, professional service firms, business angels,
venture capitalists, corporate ventures, mentors and advisors.

Cambridge Enterprise hosts an annual celebration – ‘Ideas to Reality’ – to

honour the academics for whom we have closed deals to commercialise
their innovations during the year, together with their commercialisation
partners who helped make it happen.

Our sixth Annual Gala was held at the Royal Courts of Justice. The evening
brought together 500 guests representing venture capital, business angels,
and professional service providers. The highlight of the evening was a series
of 55 second “elevator pitches” by participants in five university Business Plan
Competitions. Competition teams from joint hosts University of Cambridge
and MIT E-Center pitched alongside teams from Imperial College, London,
University of Manchester and University of Oxford.

March 2006 saw the third celebration of the Cambridge Biotechnology

Cluster where the updated cluster map displaying over 200 biotechnology
companies and University departments in the Cambridge area was unveiled
to academics and representatives from life science organisations. The
Horizon seminars, lead by Research Services Division and co-branded with
Cambridge Enterprise, presented four annual seminars focused on emerging
technology from the University. Recent seminars have focused on R&D
Beyond Einstein, Green Frontiers, Neuroscience & Society and Risk, Threat &
Detection.

Growing international interest in Cambridge’s knowledge transfer activity

has resulted in the creation of the Cambridge Summer Forum and Winter
Forum. These events are an opportunity to exchange ideas on
commercialising technology, centred on day or half-day presentations from
Cambridge Enterprise staff.

Cambridge Enterprise Annual Report 2005-06 | 7

 Annual statistics for 1 August 2005 – 31 July 2006
Inventions and patents 2005/06 Returns to Stakeholders
Number of Invention Disclosures 152
Number of UK priority patent applications filed 58
University University £586k
Agreements 61 Departments
Licences and options granted Cambridge Innovision £1.638m
Spin-outs E-Stack
OrthoMimetics
Psynova
New start-ups assisted 28
Consultancy contracts 82

Income/costs 2005/06 2004/05

Concultancy Income £2.93m £1.58m
Licence Income £3.33m £2.71m
Patent reimbursement £294k £485k
Patent Costs £626k £689k IP Originators £3.624m

Number of commercial deals Income over the last five years Invention disclosures over
completed over the last five years Consultancy income the last five years
Royalty income

70 250
£4m
60 £3.5m 200
50 £3m
150
40 £2.5m
£2m
30 100
£1.5m
20
£1m 50
10 £0.5m
0 £0 0
01/02 02/03 03/04 04/05 05/06 01/02 02/03 03/04 04/05 05/06 01/02 02/03 03/04 04/05 05/06

8 | Cambridge Enterprise Annual Report 2005-06

Looking Ahead
In December 2005 the University adopted a revised intellectual property
policy providing clarity to academics, students and research partners about
ownership of intellectual property created during the course of research
activities at the University. This clarity is critical in supporting the distribution
of ideas through commercial channels and in capturing value for the
academics, departments and the University. Cambridge Enterprise is striving
to implement the new policy to provide flexibility, choice and enhanced
service to our academics. And with this aim, the organisation has taken
another step in its evolution.

Cambridge Enterprise will be established as a wholly-owned subsidiary of

the University of Cambridge. The new structure will support our role as
agents for academics who are interested in seeing their ideas reach the
public through commercial channels. The new structure will provide financial
transparency and a foundation for improved operations important in
capturing value for our stakeholders.

With clarity in objectives, policy and structure Cambridge Enterprise can then
move forward as a trusted business resource for academics: we work
alongside the best minds in the world to find the best partners to take their
ideas forward and we have one unified aim – a better world.
Cambridge Enterprise Limited
University of Cambridge
10 Trumpington Street
Cambridge CB2 1QA
UK
Telephone: +44 (0) 1223 760339
Fax: +44 (0) 1223 764888
Email: enquiries@enterprise.cam.ac.uk
Web: www.enterprise.cam.ac.uk