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Westbrook
firm senses success
Maine Science and Technology Foundation
October 4, 2002
WESTBROOK, Maine – It's the nature of innovation that
a single idea can lead to a multitude of real world
applications. BIODE, a Westbrook-based firm, is on a
creative roll.
The
company was founded to develop a new sensor technology
combining solid-phase surface chemistries and ultra-sensitive
acoustic devices. Initially, the company's R&D efforts
focused exclusively on biochemical detectors. But it
became apparent that its sensor technology could be
used for detecting other things.
Today
BIODE is pursuing an aggressive business plan with a
pipeline of products that it expects to perfect and
commercialize within the next five years.
Quartz
crystals underlie the technology of fluid phase sensors
under development at BIODE. The diverse applications
for the company's portable sensors range from determining
a fluid's viscosity to detecting bioterrorist agents
such as anthrax.
The
company "is poised for rapid expansion and, upon financing,
sees itself in a wide-open playing field with the right
team and the right training," says BIODE CEO Michael
King.
To
the right team and the right training, King might add
the right timing; because the federal government's determination
to improve the nation's defenses against bioterrorism
has created an opportunity for the sensor company to
achieve national prominence.
A
Viscometer With No Moving Parts
Fulfilling
its aggressive business plans will cost money, so BIODE's
immediate focus is on equity financing.
"BIODE
has been in discussions with venture capitalists and
angel investors for the past several months," the company's
CEO stated. "BIODE
is especially seeking to use equity financing to finish
commercialization on its viscometer product line."
The
company has developed a unique viscometer that's designed
without moving parts. Viscosity measures a fluid's resistance
to flow. Typical viscometers employ a spindle that rotates
in a cup of liquid and measures the force required to
rotate the spindle.
But
moving parts in thick fluids can gum up and force frequent
cleaning. The BIODE viscometer eliminates this problem
and, as an added benefit its design, it "offers the
ability to measure directly in the process stream as
the working fluid passes by the sensor," according to
King, allowing control systems to operate with continuous
process information.
BIODE
believes it has improved on conventional viscometer
design by incorporating quartz crystals into its device.
The sensor head of BIODE's viscometer is small – one
inch square and a half-inch thick – and can be immersed
in a liquid sample as small as 120 ml, in temperatures
ranging from 20 to 100 degrees C. The sensor can monitor
viscosity and, with proprietary modifications, chemical
or biochemical concentrations.
Quartz
crystals are key to BIODE's technology platform, which
exploits the piezoelectric effect to measure viscosity
or detect the presence of a bacterium or virus.
"An
oscillating electrical signal will cause the crystal
to vibrate," said King, and "the vibration in turn regenerates
an electric field." When a material attaches to the
surface of a sensor, the oscillation frequency and amplitude
are altered.
Will
Funds Flow for the Viscometer?
BIODE's
In-Process Viscometer has already undergone one round
of beta testing. Although BIODE has received around
$5 million in funding to research and develop its biosensor
and heavy metals sensor detection, the company requires
further financing to commercialize the viscometer.
Three
state and federal programs have helped the company get
to where it is today. BIODE received a Maine Technology
Institute development award in 2000, which financed
the first pilot production and beta test round. The
company has also won grants from the Center for Innovation
in Biotechnology and the Small Business Innovation Research
(SBIR) program. BIODE will use new funding to conduct
further beta testing, implement design changes and prepare
for manufacturing.
The
volume of inquiries that the company has received about
the viscometer tells its CEO that the company is on
to something.
Although
the viscometer is not yet commercially available, King
said that BIODE has received "tremendous market interest,
including a potential order for 300 units from the cosmetics
industry." Other industries have expressed interest
in using it to analyze engine oil, paints, ink, and
materials for manufacturing semiconductors and electronics.
King
expects "a warm market reception" when BIODE launches
the viscometer in 2003 for $3,500. The company aims
to eventually sell 1,200 viscometers a year and to extend
the product into an analytical instrument for oils and
fuels and then to a biosensor system.
Mustering
the resources to get to launch is such an important
priority that King and BIODE chief technical officer
Jeffrey Andle recently brought on a new team member,
Kerem Durdag, to lead fundraising efforts. With a background
that includes a mechanical engineering degree, business
development, work as a chief technical officer, and
commercializing several products,
Durdag
will also take on chief operating officer responsibilities
once the viscometer moves into production. Durdag is
pursuing a variety of potential revenue-building partnerships,
including licensing technologies or products to other
sensor manufacturers or vendors.
Besides
searching for equity financing to bring in a quick infusion
of cash for the viscometer, BIODE has also submitted
proposals for nearly $4 million in grant funding.
As
of early September, BIODE had proposals pending with
the Maine Technology Institute, the Defense Advanced
Research Projects Agency, and several agencies that
make awards under the Small Business Innovation Research
program.
BIODE
also submitted a proposal to the National Institute
of Standards and Technology for a $2 million Advanced
Technology Program (ATP) grant that would fund two years
of research into using sensors to detect bacteria and
viruses that cause tropical diseases or can be used
as agents of bioterrorism. If BIODE is successful, it
will become the first Maine company to win an ATP award.
Next
Stops: Engine Oil Analysis and Bioterrorism Sensors
King
said BIODE's "most talked about product is undoubtedly
the counter bioterrorism system that is in early development."
That system uses the same piezoelectric principles behind
the viscometer.
"BIODE
intends to develop a briefcase-sized instrument to detect
trace quantities of up to 20 different bioterrorism
agents, such as cholera toxin, botulinum, plague, and
anthrax," King said. Detection time for the device is
about 30 minutes, and the machine could also be used
to detect microbes that cause outbreaks of diseases,
such as dengue fever, in developing countries.
BIODE
has spent about half of its $5 million of R&D funding
finding ways to use biosensor technology for bioterrorism
agent detection. If new financing is secured, the company
hopes to bring a single-agent detection system to beta
testing in late 2003 and the multi-agent system to beta
test in 2004. Officials anticipate product launch in
2005.
Bioterrorism
may make front-page news, but the next BIODE product
to reach the market likely will be an engine oil analysis
system. The viscometer has applications in engine oil
monitoring and can indicate the need for an oil change.
That technology can enable an understanding of how oil
ages and predict required maintenance.
Although
King believes consumer automotive markets are too cost-sensitive
for such a precise piece of machinery, "many applications
exist in freight hauling, power generation, and military
transportation and warfare platforms, in which potential
engine failure is an unacceptable risk." BIODE anticipates
beta testing the device in 2003.
BIODE's
list of potential new products doesn't end after developing
counter-bioterrorism systems. The company plans to extend
its product offerings into public health, clinical diagnostics,
and building cleanliness to monitor heating, ventilation,
and air conditioning. Agriculture is also on the list,
targeting food and water safety plus veterinary medicine.
BIODE
History and Ties to UMaine
BIODE
was founded in 1986 by Douglas McAllister to develop
and commercialize a new product for clinical diagnostics.
McAllister received a Ph.D. in microbiology from the
University of Maine in 1976 and studied the use of biochemically-selective
coatings for surfaces. Andle was an electrical engineering
graduate student when he began working with McAllister
at UMaine in 1988. King is also a UMaine alumnus and
holds a degree in electrical engineering.
BIODE
currently employs five people and maintains a laboratory
space in Westbrook and an accounting office in Bangor.
According to King, the company will be seeking a location
for manufacturing space, likely in the Portland area.
BIODE
projects creating 20 to 40 high-tech Maine jobs in the
next several years. And officials suggest that a potential
exists for creating a couple hundred assembly jobs if
all three products are successful.
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