MINUTES
Kansas Bioscience Authority
Board of Directors Meeting
Wednesday, January 16, 2008
8:30-10:30 a.m.
Capitol Plaza Hotel
Shawnee Room
1717 SW Topeka Blvd.
Topeka, KS
Call to Order: A sufficient quorum being present, the meeting was called to order at 8:30 AM by Chairwoman Sandra Lawrence. Board members present were Bill Sanford, David Franz, Ray Smilor, John Carlin, Angela Kreps, Ed McKechnie, Jon Wefald and Robert Hemenway. Also present via teleconference was Dan Glickman. Others present were Kevin Boatright (University of Kansas); Roy Jensen and Erica Brown (University of Kansas Cancer Center); Stan Ahlerich (Kansas, Inc.); Joni Cobb and Tracy Taylor (KTEC); Kent Glasscock (NISTAC); Dan Richardson (K-State Olathe Innovation Campus); Aaron Lessig, Dennis Depenbusch, and Ken Lynn (KTEC); Troy Carlson (Initiatives, Inc.); Donna Johnson (Pinnacle); Richard Lariviere, Paulette Spencer and Carey Novak (University of Kansas); Jason Gertzen (Kansas City Star); Monique Garcia (ICM); Frank Ross and Geoff Fasel (Polsinelli Shalton Flanigan Suelthaus); Tom Thornton, Janice Katterhenry, Melissa Lynch, Jim Mitchell and Chad Bettes (KBA).
Review and Approval of Minutes: Ms. Lawrence referred to the November 26, 2007, board meeting minutes. Mr. Carlin made a motion to approve the minutes as written. Mr. McKechnie seconded the motion. Ms. Lawrence called for a vote, and the motion was carried unanimously.
Financial Report: Ms. Katterhenry reviewed the financial report of December 31, 2007.
President’s Report: Mr. Thornton presented the president’s report, highlighting the KBA’s investment tracking and monitoring reporting system; the Kansas Bioscience Centers of Innovation; the University of Kansas Cancer Center; the Rising Star program; the pursuit of the NBAF; the Legislative Post Audit; and the Governor’s request that the KBA develop an aggressive bioenergy plan for the state.
Committee Reports:
Executive and Compensation Committee: Ms. Lawrence reported that the committee met on January 8, 2008.
Governance Committee: No report
Nominating Committee: Mr. Carlin reported that the committee met on January 8, 2008. The committee recommended that the full board recommend to Governor Sebelius the reappointment of directors Sandra Lawrence and John Carlin. Additionally, the committee recommended that the full board recommend to Speaker Neufeld the appointment of Tom Corcoran to fill the board vacancy left by Dolph Simons. A motion was made by Ed McKechnie to provide the recommendations to the governor and speaker of the House. Mr. Smilor seconded the motion, and it passed unanimously.
Finance and Investment Committee: Dr. Smilor reported that the committee met on January 3, 2008, and on January 15, 2008. He indicated that the committee has several investment recommendations:
University of Kansas – Eminent Scholar: The University of Kansas submitted a letter of intent and full proposal, which were reviewed by a panel of bioscience experts convened by the KBA consistent with the Eminent Scholar application process, to attract Dr. Blake Peterson to a tenured position in the KU School of Pharmacy. He will teach at both the professional and graduate level in the Department of Medicinal Chemistry; develop and maintain an active research program; train graduate, undergraduate and postdoctoral students; and develop research collaborations across different disciplines within KU. Dr. Peterson is important to KU’s cancer drug discovery program, which is the heart of KU’s strategy for gaining National Cancer Institute designation as a cancer center. A critical component of attracting Dr. Peterson is providing him laboratory space. KBA funds would be used to assist in providing this lab space, along with assistance from the KU Cancer Center. Dr. Peterson also has a high interest in technology transfer and commercialization. He is the founder of Indigo Biosciences, LLC, a preclinical contract research organization, servicing clients involved in pharmaceutical R&D, biotechnology, and related sectors. Dr. Peterson has filed for 12 patent disclosures and been awarded over $7.2 million in NCI funding.
KU is requesting $5 million over five years in equal amounts per year with the discretion to accelerate payments. KU will more than match KBA funds by providing $6.9 million. A conservative estimate of outcomes is that Dr. Peterson’s research will attract approximately $22 million in new external research over a 10-year period.
A motion was made by Mr. Carlin to approve the request of $5 million over five years. Dr. Franz seconded the motion, and it passed unanimously.
Kansas State University – Eminent Scholar: Kansas State University (KSU) submitted a letter of intent and full proposal, which were reviewed by a panel of bioscience experts convened by the KBA consistent with the Eminent Scholar application process, to attract Dr. Juergen Richt (DVM,PhD) as a Regents Distinguished Professor. Dr. Richt will have a primary faculty appointment in the Department of Diagnostic Medicine/Pathobiology, an academic unit of the College of Veterinary Medicine. He is expected to be a campus and statewide asset, providing animal health research leadership with investigators in all units of the College of Veterinary Medicine, the university and, where appropriate, the state. Dr. Richt’s infectious disease work requires a combination of BSL-3/BSL-3Ag biocontainment, which is available in the Biosecurity Research Institute (BRI) at K-State. His BSL-2 and BSL-3 research, currently performed at the NADC, will transition to facilities at Kansas State University as soon as adequate space and equipment can be made available to him. The KBA’s funds will be used to assist in providing the equipment and space. Dr. Richt is currently lead scientist at the National Animal Disease Center (in the Virus and Prion Diseases of Livestock Research Unit) and a professor at Iowa State University. Dr. Richt is involved in cutting-edge research in two high impact areas, prion diseases and influenza, and has established a strong reputation in the basic science of borna viruses and vaccines and diagnostics for other key viral diseases.
Kansas State University has requested up to $2,055,000 over five years with a match by KSU. A conservative estimate is that Dr. Peterson’s research will attract approximately $4 million in new external research over a 5-year period.
A motion was made by Mr. Carlin to approve the request. The motion was seconded by Ms. Kreps, and the motion passed unanimously.
Materials by Advanced Technologies and Research Innovation Center (MATRIC) – Matching Fund: This proposal submitted by the University of Kansas (KU) and Wichita State University (WSU) requested $2 million over six years to support MATRIC. The MATRIC partners will be given a letter to include in their federal application committing KBA matching funds upon successful receipt of a notice of award from the National Science Foundation.
KU and WSU have submitted a proposal to the National Science Foundation (NCF) under the Research Science and Engineering Center program to establish the Materials by Advanced Technologies and Research Innovation Center (MATRIC). The proposed center will support a research, teaching, and outreach environment that serves as a catalyst for collaborative investigations focused on applying the principles of biological systems to the design, synthesis and development of novel nano-composite technologies. MATRIC is built on the state’s strong regional expertise in biomaterials research and development. KU has established one of the region’s premier bioengineering research programs, and WSU created the National Institute for Aviation Research (NIAR). As MATRIC grows, future collaborations with regional Kansas State University and Pittsburg State University will catalyze this interdisciplinary effort to synthesize novel materials and extreme properties inspired by the structure of natural materials. The center’s focus will bring together the current expertise in the region with state business resource initiatives to build the emerging areas of biomaterials and medical devices. KU and WSU submitted a pre-proposal in September 2007 requesting a total of $12.3 million in NSF funding over six years. The MATRIC team was one of 36 invited to submit a full proposal from a group of 102. Approval of this proposal will attract NSF funding of $12.3 million and establish a center that will foster active collaboration among university researchers and those concerned with the application of materials in industry and elsewhere.
A motion was made by Mr. Sanford to approve the KBA’s support of MATRIC in the amount of $2 million over six years and a letter to include in their federal application committing KBA matching funds upon successful receipt of a notice of award from the National Science Foundation. The provision of KBA matching funds is contingent on the execution of a grant agreement between MATRIC and the NSF. The motion was seconded by Mr. Carlin and the motion passed unanimously.
Pinnacle Technology, Inc. – Matching Fund: Pinnacle Technology, a Lawrence-based company that specializes in wireless, Web-enabled, sensor conditioning, data-acquisition, and biotechnology products, is developing real-time wireless monitoring and data acquisition systems for use in studying the brain activity of mice and rats. The company has been awarded an $879,290 Phase II SBIR grant from NIH. The goal of this Phase II is optimization, validation and market introduction of several important tools and commercially viable products. The company’s target markets are research centers and laboratories in both the private and public sector, and its products focus on rats and mice, which account for 95+ percent of all animals used for research. This technology will provide researchers with new tools to use in understanding the effects of degenerative brain disorders, such as Parkinson’s disease, Alzheimer’s and muscular dystrophy, and developing cures for those disorders. Pinnacle is requesting a partial match of an NIH Phase II SBIR grant to use towards transitioning the products from research and development to commercialization. Pinnacle ranks number two in Kansas in NIH funding.
Pinnacle Technology and the National Institutes of Health will partner with the KBA, with the expected outcomes to include increased research funding, growth in revenues and employment in Kansas. Expansion of its product lines will strengthen Pinnacle’s standing in the medical device and diagnostic market, improving its ability to attract interest from outside parties.
Pinnacle Technology is requesting up to $375,000 to match a portion of an $879,290 National Institutes of Health (NIH) Phase II Small Business Innovation Research grant. Mr. Carlin made a motion to approve the investment. The motion was seconded by Ms. Lawrence, and the motion passed unanimously.
XenoTech, LLC – Retention: XenoTech is a Lenexa-based contract research organization created by Dr. Andrew Parkinson from innovative research at KUMC. The company provides products and contract research services to pharmaceutical, chemical, food, academic, and regulatory organizations around the world. The company’s international reputation as a leader in drug metabolism research has caused it to outgrow its current facility and to consider moving to a different location. Because of the company’s history in Kansas and the collaborative and academic nature of its research and development initiatives, company management views the Kansas Bioscience Park as an ideal location for growth. The company has requested land on which to build a 55,000 square foot building, with expansion plans for 80,000 square feet. XenoTech expects to add 244-300 employees in Kansas. If the KBA provides up to 8 acres of land in the Bioscience Park, XenoTech will provide $6.5 - $7 million to build the facilities and become one of the main anchors in the park.
Ms. Kreps disclosed for the record that XenoTech is a member of Kansas Bio, her employer.
Mr. Carlin made a motion to approve the investment. The motion was seconded by Ms. Lawrence, and the motion passed unanimously.
Three Centers of Innovation were proposed for planning grants. These three projects were selected through an external review committee process from an original submission of nine proposals . The three were reviewed extensively by the Investment Committee, and, after receiving additional requested information, the Investment Committee is recommending to the board the following Centers:
Kansas Bioscience Center for Biomaterials Innovation and Design (KCBID)
This is a center that will focus on biomaterials research and education and commercialization of research and innovative medical devices. It is a collaboration of University of Kansas and Wichita State University, in collaboration with Pittsburg State University’s Polymer Research Institute and the Research Centers of Via Christi Health System and over 20 other private industries, educational institutions and public organizations. The applicants requested $200,000 in KBA funding for a planning grant; in turn, they will invest up to $250,000 in cash and in-kind.
Mr. McKechnie made a motion to approve the investment. The motion was seconded by Ms. Lawrence, and the motion passed unanimously. Ms. Kreps disclosed for the record that many of the organizations involved with this center are members of Kansas Bio, her employer.
Kansas Bioscience Innovation Center in Drug Delivery (KBICDD) – University of Kansas
This proposal seeks $180,000 in KBA funding to develop a five-year strategic business plan to establish the Kansas Innovation Center in Drug Delivery (KBICCD). The goal is to transform the outstanding drug-delivery capabilities that exist at KU into an integrated, high-performance, world-class drug-delivery organization. This is a collaboration that would tap the international capabilities of KU. There is an approximate $350,000 in-kind cost share that would complement the KBA contribution.
Ms. Lawrence made a motion to approve the investment. The motion was seconded by Mr. Carlin, and the motion passed unanimously. Ms. Kreps disclosed for the record that many of the organizations involved with this center are members of Kansas Bio, her employer.
Kansas Innovation Center for Advanced Plant Design: Plants for the Heartland
The Kansas Wheat Commission requests $200,000 to develop the proposed Kansas Innovation Center for Advanced Plant Design: Plants for the Heartland, which will focus on the emerging commercial opportunities for wheat, sorghum, small grains and native plants and grasses. By coordinating efforts across the state, nation and the world, the center is intended to accelerate the scientific discoveries and innovation in plant bioscience. The center will be business collaboration among plant science industry groups and university research counterparts. Facilities for the center will be headquartered on the campus of Kansas State University in Manhattan, collaborating with existing research programs at the University of Kansas in Lawrence.
Mr. Carlin made a motion to approve the investment. The motion was seconded by Mr. Sanford, and the motion passed unanimously. Ms. Kreps disclosed for the record that many of the organizations involved with this center are members of Kansas Bio, her employer.
Audit Committee: Ms. Kreps said an internal audit of grant awards is underway to determine if there are any issues of which the board should be aware. She expects to report any findings at the next board meeting.
Executive Session: At 10 AM, Mr. McKechnie made a motion to go into executive session until 10:25 to review, consider and discuss any investment or personnel issues. Mr. Carlin seconded the motion, and it passed unanimously.
Return to Open Session: A motion was made, seconded and passed unanimously to return to open session. There were no items to be voted on.
Kansas Bioscience Day: Mr. Bettes reviewed the schedule of events for Kansas Bioscience Day at the Capitol. Activities included a press conference, luncheon for the legislators, exhibits by the grantees and meetings with legislators.
Adjournment: There being no further business, the meeting adjourned at 10:30 AM.
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Sandra A.J. Lawrence, Chairwoman