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Next Generation Semen Sexing Technology for the Commercial Livestock Industry November 2010
What is LumiSort
LumiSort is a proprietary instrument and technology that will improve the yield and quality of sexed semen by an order of magnitude over methods used in the livestock industry today. It incorporates a novel and innovative instrument design to address fundamental problems with existing commercial sex selection technologies, while providing Microbix with a strong and well differentiated intellectual property advantage in the industry. LumiSort technology emerged from Microbix research focus in semen sexing, initiated in 2005 to establish a deeper understanding of the molecular structure and composition of sperm cells and focused on the question of delivering high quality sexed semen. Microbix LumiSort program represents an approach to semen sexing that will be commercialized faster, for lower cost and with a greater chance of success than competing candidates.
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While the existing technology uses damaging droplet-based sorting to separate undesired cells, LumiSort simply incapacitates undesired cells using a laser pulse. These differences lead to substantial advantages: Higher production rate and yield o Production rates could exceed 100,000 cells per second Precise sex determination1 allows for near theoretical maximum recovery Better quality of product by minimizing cell damage o Continuous fluid stream avoids airliquid interfaces, inherent in the droplet-in-air method, reducing shear forces. o No damaging electrostatic charges required o No harsh droplet collection o Shorter time from collection to freezer for valuable semen samples
Market Background
The Artificial Insemination (AI) industry is mature in Western markets and developing rapidly in emerging markets. The dairy market is the largest opportunity, in which 85% of the industry purchases semen from one of approximately forty regional semen distributors. This market is
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estimated to generate about US$ 1.5B in semen sales annually. Beef and swine semen revenues are smaller (annually US$ 250M and US$ 600M respectively) but are growing globally. AI and the benefits of sexed semen are well understood by dairy, beef and pork producers, as are the limitations of the currently-available sexed semen products. As a result, users are pressuring their suppliers to provide a better sexed semen product with fertility comparable to conventional unsexed semen. Semen distributors are seeking a more efficient technology that will increase sexed semen yields and quality while reducing operational complexity and cost. Sexed semen has been in the market on a commercial scale for over a decade and has been selling at a premium price double that of unsexed semen. The poor performance (low conception rates) of this product renders it useful only in niche applications primarily for select virgin heifers. This means that only one third of the potential dairy market for sexed semen is being served. Because of cost and fertility issues, only a very small portion of the beef market is being served and the swine market is effectively unaddressed to date. The AI industry recognizes that if a sexed semen technology could deliver the desired sex 90% of the time with conception rates approaching unsexed semen performance levels, up to 100% of the dairy market will convert within 3 years of market launch.
The commercialization of the technology is considered low risk because the market is well developed, there are no regulatory barriers, there is an acute need for a better product, the distribution network is understood, and agreements are in place and can be replicated enabling LumiSort to become the standard in the industry. The Company is currently focused on the instrument development and parallel, biological development.
Footnotes 1Sex determination in a sperm is accomplished by measuring DNA in the cells. Female cells contain X chromosomes which are larger than the Y chromosomes contained in male cells. The result is a difference in total DNA content of about 3.8%. The DNA is stained with a dye which fluoresces when illuminated by laser light and DNA content is inferred from the amount of light emitted from the cell. Sperm cells, however, are flat-lens-shaped, and the amount of light emitted depends strongly on the direction from which they are viewed. The current technology only measures DNA in cells that can be oriented to face the optical system side-on; other cells must be discarded. LumiSort renders orientation irrelevant by aligning them head-to-tail and viewing them from the end, not the side, of the fluid stream. Without orientation problems, sexdetermination can be made for most cells in the preparation. 2 Marshall has a reputation in the biotechnology field as one of the best intellectual property firms in the US. The firm ranked 2nd in patent prosecution and 11th overall among in-house counsel of the FORTUNE 250 in "Who Protects IP in America," (IP Law and Business, 2006)
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