TechAlert - June 2008

Monday Morning Meeting Focuses on Life Sciences Companies

The ITDA’s spring Monday Morning Meeting had a unifying theme—that you don’t have to go to Boston or San Diego to find entrepreneurs starting up life sciences businesses. There are exciting ideas and innovative technologies right here in Illinois. More than 70 people attended the event.

“When you think of our region, real estate, information technology, and manufacturing are the industries that first come to mind,” says LeAnne Tourtellotte, ITDA director of venture development, “but there is a really good mix of wonderful biotech and life sciences start-up companies in the Chicago area, and people may miss the fact that there is a lot going on in that space.”

“We didn’t intentionally look for them but it worked out very well that these clients all rose to the top at the same time,” says Tourtellotte, a scientist who served as COO of a biotech start-up. “We had some participants in the audience that we didn’t have before because of that unified theme. There were a couple of medical doctor experts who were able to ask questions that were very pertinent to the industry focus for this group.”

HeartSounds, Inc., is a medical device company that uses patented sound-based technology to develop innovative diagnostic devices. The firm’s first product, the FetalPATCH, will be used for fetal monitoring.

HeadRehab, LLC has developed a computerized tool to assess and rehabilitate patients with traumatic brain injury (TBI). More than 1.5 million cases of TBI are diagnosed each year. HeadRehab, a woman-owned business, has recently been awarded $100,000 SBIR grant and has an initial commitment for angel funding as well. In addition to applications in TBI, the HeadRehab product may benefit Parkinson’s, Attention Deficit Disorder, Multiple Sclerosis, and stroke patients as well.

Shamrock Structures, LLC is a structural biology company that focuses on protein structures as a path to new drug discovery. “Drugs primarily target proteins,” explains Steve Schiltz, CEO of Shamrock Structures of Woodridge, IL. “Shamrock uses scientific tools to map out three-dimensional pictures, which allow researchers to see how a protein structure and a drug interact.”

Shamrock’s customers are top-tier and smaller pharmaceutical companies and bio-technology firms that focus on drug development. “Drug discovery is very complex and slow,” says Schiltz. “We map the drug targets—proteins—to discover new drugs faster.” Shamrock is preparing to seek up to $1 million in private equity. The firm already generates revenues and is also pursuing federal funding opportunities to help develop new technology for the industry.

“A key strategic advantage we have is that we are located a mile from Argonne National Lab’s Advanced Photon Source which produces  the most powerful x-ray light in the US permitting analysis and rapid mapping of proteins,” says Schiltz. “Others can and do pay to use the facility as we do, but our proximity and scientific relationships at Argonne enable us to gain access in a highly efficient way.”

Following the x-ray analysis, Shamrock scientists use specialized equipment and software to produce three-dimensional protein maps. “We are also working on developing new technology for structural biology that has potential to further revolutionize the ability to look at drugs interacting with proteins,” Schiltz says.

“Although all three of these Monday Morning Meeting companies are in the larger life sciences industry, look how different they are,” Tourtellotte says, “Our meeting points to how broad the industry is and how unique the companies can be.”

“Each field of science has its own language” Schiltz says. “You have to be able to speak in front of a group that doesn’t understand that language. The ITDA is extremely supportive both in helping you prepare and then in wanting you to succeed when you get up there. They ask the kinds of questions that support and help develop your investor presentation to the next stage.”
Schiltz has participated as a Monday Morning Meeting attendee for the last few years.

“I’ve always felt it was a great forum for young technology-based companies to practice a presentation geared for investors before taking it to people who are going to critique you mercilessly,” he says. “These sessions provide a forum that allows you to look at yourself and your company from an outsider’s point of view and to take in questions that you might not hear from your customer who is already immersed in what you are doing.”

The next Monday Morning Meeting will be July 14th at the Coleman Entrepreneur Center of DePaul University in Chicago.