msp Tenant Case Study: Oxyrane

Oxyrane’s business is based on South African research, and they currently have collaborations with groups in France and Belgium. The Company is financed with help from Canadian business angels and US venture capital, and they currently employ 4 South Africans, 2 French (with 3 or 4 Belgians on the way), an Indian, a Chinese - and 3 English.

So why is their main base here in the UK, at msp?

A significant factor is the proximity of Manchester University’s Centre of Excellence in Biocatalysis, and in particular Professors Stanley Roberts and Nick Turner, who are the Centre’s Director and Science Director respectively. Also, says Michael Campbell, Oxyrane’s CEO, “The UK is an excellent place for connecting to big pharma, which is vital for us. We were offered cash incentives to go elsewhere in Europe, but the UK has the better enabling environment.” Michael is an enthusiastic advocate for Oxyrane, with both an appreciation of the underlying science and an understanding of the motives and imperatives of the investor who must support its exploitation.

The story behind Oxyrane is a fascinating but somewhat complex example of a promising piece of research which later opened out a whole area with much broader potential. Research by Dr Adriana Botes (now Oxyrane’s Director of Research) showed that an enzyme, an epoxyl hydrolase, had commercial potential. Further work in South Africa led to a search for a host organism which could be genetically modified to express this enzyme, and it was at this stage, linking with groups in France and Belgium, that the possibilities of the chosen system dawned. The South African company was formed in 2004 and the UK company, now the main operational base, in 2005.

“At that point in our development”, Michael recalls, “The emphasis shifted from ‘we’ve got a an enzyme’ to ‘we’ve got a system that can produce any heterologous protein very accurately’”. They are currently synthesising glycoproteins using their system, focusing on targets like cell membrane protein receptors and smaller molecules with precise, defined three-dimensional structures (chiral intermediates, for those with some chemistry).

Work at msp is proceeding apace, with protein products ready for initial testing on efficacy and safety, and they are looking for a partner to take these to market. The biggest challenge is not technology, since they have quite a research success on their hands. Perhaps it is picking the right products to start with, to endeavour to focus on the potential winners. The other challenge, with what is a fairly complex concept, is explaining the opportunity to potential investors.

Michael added: "Oxyrane's products are subsequently incorporated into pharmaceuticals, agrichemicals, flavours and fragrances, and polymers."

Finally, back to the beginning: why locate at msp? Michael is quite fulsome in his praise for Manchester and the Science Park team: “Manchester is a great city and so well-connected. It’s especially good for young people. And msp has got such a buzz about it. The whole environment at the Science Park seems to be aimed at supporting growing, technology-based businesses like Oxyrane.”