South Africa’s University of the Western Cape (UWC) has received funding of R1-million to be used to upgrade its infrastructure and finance ongoing training and development initiatives of its department of science and biotechnology from global bioinformatics company Electric Genetics.
The company, headquartered in Virginia in the United States but with a research branch in Cape Town, has partnered UWC in technology development since 1997.
Bioinformatics is the meeting of biotechnology and information technology through the use of computers to store, retrieve, analyze or predict the composition and/or structure of bio-molecules. The science aims to shorten the process of discovering new drugs, thereby reducing the costs and risks involved in new drug development.
As part of its UWC partnership, Electric Genetics has made annual payments to the university, funded in part by the sale of software produced jointly by itself and university employees.
Professor Brian O’Connell, UWC rector, commented: “It is very satisfying to see the long-term partnership between ourselves and Electric Genetics result in an opportunity to showcase our world-class technology on a global level. As the first true spin-out company from UWC, Electric Genetics is a proud example for future biotech initiatives that can grow and thrive through the mutual infrastructure and support of public-private partnerships.”
From Electric Genetics’ perspective, business development director Christina Raimondo said the company has paid more than R1,5-million in royalty payments to the university and purchased intellectual property in a win-win deal for both parties.
“With a significant upfront payment, royalties on future sales and an equity stake in our company, UWC reaps financial benefits both in the shorter term as well as positioning itself to realise value as a longer-term investor. In turn, Electric Genetics enhances its asset base, increasing the likelihood of attracting further investment by strategic partners,” emphasised Raimondo.
Current with the company restructuring and payment to UWC, Electric Genetics founder and director Professor Winston Hide announced that he will remain a UWC employee, where he directs the South African National Bioinformatics Institute, resigning his position as a company director.
Hide will turn his focus to leading Electric Genetics’ scientific advisory board, a group of global experts he is currently assembling on behalf of the company.
“Through the partnership for technology development with UWC, Electric Genetics has contributed towards providing the university’s students with a world-class learning environment. I believe that my role on the scientific advisory board will help identify and facilitate ongoing opportunities for collaboration, whereby both the company and the university are afforded access to leading scientific demands.
“At the same time, this move addresses any perceived conflict of interest that may have existed under the previous arrangement between the university, the company and myself,” concluded Hide. — I-Net Bridge