Tuesday 29 November 2011

Profile on…Marinova

Paul Garrott of Marinova recently spoke to the AIC about the company’s journey along the commercialisation pathway. The company has developed technologies for the isolation and extraction of an invasive species of seaweed.

1)    Briefly describe your business

Marinova is biotechnology company specializing in the development and manufacture and novel bioactive compounds from macro algae. These natural compounds are extracted from select species of seaweed and are used in a range of nutritional, pharmaceutical and skincare applications. Referred to as fucoidans, the compounds have been shown to have potent anti-viral and anti-inflammatory properties and significant efficacy in a number of clinical settings. Marinova is a private company with state of the art research and manufacturing facilities at Cambridge on the outskirts of Hobart. The company was founded in 2003 and employs personnel with qualifications and backgrounds in disciplines as diverse as biochemistry and chemistry, pharmacology, aquaculture, chemical engineering and international marketing.

2)    How did you generate the idea?

To some degree the idea came about by accident. It’s a long story - suffice to say that about 30 years ago an invasive species of seaweed was introduced to Tasmanian coastal waters. By the late 1990’s there was an emerging body of scientific evidence which indicated that a polysaccharide constituent in this species of seaweed had bioactivity in several health settings. Before long we had initiated collaborations and commenced the process of characterizing this unique compound. Once characterized, we set about developing technologies for its isolation and extraction on a commercial scale.

3)      What made you decide to progress it from just an idea to a real business?

Dare I say, it was my desire to escape the accounting profession! As a chartered accountant and partner in a leading firm in Sydney I was attuned to advising clients on how best to run their business. As much as I enjoyed the challenges of assisting clients succeed in their businesses, I always harbored an ambition of putting the theory into practice and establishing a business from scratch. The prospect of returning to Tasmania and trying to create a truly unique enterprise was too good to turn down.

4)    What were the main challenges faced?

In the early days, Marinova had limited clinical evidence to support the efficacy of its fucoidan products. The biggest challenge faced by the company was educating the market about the potential of this unique class of compounds and commercialising the products with only limited clinical data. Marinova has vertically integrated operations which extend from seaweed harvest through to development and manufacture of pharmaceutical-grade compounds. Unlike many biotechnology enterprises we are in the fortunate position of being able to fund our pharmaceutical development projects from cash flows generated from our sales into the nutritional sector.

5)    What tips would you pass on to other entrepreneurs who are starting out?

Back your judgement, always keep your mind open to potential opportunities and – most importantly – never give up. I take a very pragmatic approach towards commercialization and the implementation of strategies to grow a business; I often find myself reminding budding entrepreneurs not to lose sight of the fact that it is production (and not esoteric research) that creates jobs and economic activity. When focus shifts from trying to make money to trying to raise money, it’s often time to take stock and reappraise the strategic direction.

6)    Knowing what you know now, is there anything you would have done differently?

As a non-scientist entering the biotechnology sector, there were occasions where I probably attached too much credibility to the academic credentials of prospective employees. With time (and the accumulation of a little wisdom!) I soon realized that attracting employees with energy, enthusiasm and a passion for problem solving was paramount. There is no denying that Marinova has a highly educated and very experienced workforce; notwithstanding, it is the positivity of our people that propels our company forward, not the formal qualifications that they have accumulated.

7)    Where do you see the business in 5 years’ time?

The body of research supporting the actual and potential efficacies of fucoidan is growing at an exponential rate. Most recently, Marinova has shown that its fucoidan compounds are highly effective in relieving the symptoms of osteoarthritis as well as inhibiting coated viruses like herpes, influenza and dengue. The company is continuing its research into the effect of fucoidan on stem cell mobilization and human immune function and has recently commenced a multi-centre human clinical trial investigating the interaction of fucoidan with conventional oncology treatments. With this growing body of scientific evidence comes ever-increasing demand – demand which we see continuing unabated well into the medium term. Marinova is at the forefront of fucoidan research and the only company in the world with the expertise and manufacturing capability to collaborate with the pharmaceutical sector to develop and produce highly characterized fucoidan compounds for specific medical conditions. We are very optimistic that our expertise and collaborations in the pharmaceutical space will start to bear fruit within the next 5 years.

8)    What would you suggest that the AIC strives to tell government in Australia about commercialisation?

Marinova has been a fortunate and very grateful recipient of several government grants in recent years. Shortly after commercializing our first product in 2004, Marinova received a Commercial Ready grant from AusIndustry. In combination with the income from the initial commercialization, this grant was the impetus for the construction of our state-of-the-art research and manufacturing facility in Tasmania. The grant was also the impetus for Marinova to employ key staff and it laid the foundation for the company to establish itself as the leader in its field. I am often asked by other executives whether the detailed application processes are a deterrent to pursuing grant funds. My response is always the same: never be deterred - a little bit of funding from a successful application goes a long. long way and unexpected opportunities often emerge from grant-funded projects. In many respects, this is the same message that the AIC should be striving to communicate to government. A little bit of funding really does go a long, long way and appropriate grant programs should always be available to facilitate commercialization by innovative Australian enterprises.

9)    If you could have been responsible for any innovation, what would it be and why?

Surprisingly tough question and – I must confess - not one that I have considered before now! Where do I start…..the wheel? the telephone? the combustion engine?........

10)    Which entrepreneur do you most admire and why?

I have admiration for any entrepreneur who exhibits humility and recognizes that financial success comes with moral obligations to society at large. The accumulation of wealth in isolation is not a benchmark by which I believe success should be measured.
 

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