How to Profit from Nanotech and Stem Cell Breakthroughs Like A Venture Capitalist

Nanotechnologies are not some future development. The Project on Emerging Nanotechnologies estimates that nearly 1,000 products that rely on nanotech are on the market now.

Currently, most applications simply integrate superior nanotech materials into existing products. Carbon allotropes are used to produce gecko tape. Antibacterial nano-silver is used in clothing, food packaging, disinfectants and household appliances. Nano-sized cerium oxide is employed as a fuel catalyst. Increasingly sophisticated products are appearing at the rate of two-four per week.

This month, we’re going to invest in 33 nanotech companies. Almost all are pre-IPO privately held startups. And we’ll do it in one step while retaining complete liquidity.

In the process, I’ll describe how one company is altering the DNA of viruses to attack cancers. I’ll also talk about a company that gets oils from algae. Another company that we’ll be adding to our portfolio is the leading contender in the race to make your current computer as obsolete as an abacus.

It’s Time to Get into the VC Business

One of the greatest frustrations about this job is coming across fantastic startups that I can’t add to the portfolio. I’ve written at length about a few of these pre-IPO companies with enormous, nearly inevitable returns. There are many more, in fact, that I haven’t mentioned. As a result, I truly envy venture capitalists. For some time, I’ve been fantasizing about a breakthrough technology venture capital fund. This isn’t quite that, but it’s close.

The attractions of the VC (venture capital) business are obvious. One is simply the ability to go where equity investors cannot. It irks me that VCs get to buy into obviously transformational companies when we can’t. The other reason is the rate of return enjoyed by VCs is typically so much higher than the stock market’s. I really want you to get in on the high yields earned by angel and venture capitalists.

This is why I’m so pleased to have come across our newest addition to the Breakthrough Technology Alert portfolio. Buying stock in this company allows you to participate in some of the most exciting and promising nanotech startups in existence – on better than VC terms.

This company acts as a kind of VC mutual fund, investing only in privately held early-stage breakthrough technologies. Moreover, your participation in the VC market remains liquid because you can sell the fund at any time. That’s a privilege that normal venture capitalists don’t have.

Not only does the VC fund take positions in important startups, it is actively engaged, bringing its expertise to and working side by side with the management of its portfolio companies. With its broad knowledge of the nanotech industry, the fund can help portfolio companies with general strategic and operational problems, as well as business and intellectual property strategy. It helps with executive recruiting, fundraising and compliance with Section 404 of the Sarbanes-Oxley Act of 2002.

Perhaps most importantly, it is in the position to build collaborations with strategic partners.

In the process of vetting this company, I spoke at length with the company’s CEO. I was pleased, by the way, to hear he had enjoyed reading some of my past issues of Breakthrough Technology Alert.

He took the time to explain the VC fund’s investment philosophy to my associate Ray Blanco and me. According to this CEO, the current team has grown from four to 11 members since 2002. Five have extensive VC experiences. Additionally, team members have expertise in solid-state physicists, biochemistry and other technologies that intersect and converge with nanotechnology.

This team constantly monitors the world of nanotech. Additionally, it maintains contact with nanotech scientists in academia, where much cutting-edge research is taking place. While academic research is typically too early a stage for investors, these relationships allow the fund to identify important spinoffs as they occur.

We know that the long-term promise of nanotech is world changing. The immediate challenge for nanotech investors is finding companies in the commercialization stage. As I’ve explained, we at Breakthrough Technology Alert don’t mind getting in a little early, because the eventual returns will be so high. Investors do, however, want to know that their portfolios will maintain and increase in value while waiting for those eventual huge returns. Everyone at this unique venture capital fund clearly understands this need for liquidity.

The Only Publicly Traded Liquid Nanotech VC Firm

To my knowledge, this investment is the only truly liquid nanotech venture capital company available to stock buyers. Diversification is at the heart of its investment philosophy. It generally doesn’t put more than 5% of its gross assets in any single holding.

It also maintains large cash reserves as a means of counterbalancing the inherent risk of investing in young nanotech businesses that are not yet profitable. As its CEO says, the fund offers a “diversified way to play the emergence of nanotechnology – when most of the companies are still private – in a public vehicle.”

Several of its holdings are, however, already earning significant revenues. Companies in the portfolio generated $242 million in revenue for 2008, a 22% increase over 2007. Other companies are on track to becoming revenue producers or to significantly increase revenues.

Since I recommended this unique venture capital fund to my readers last week, we’re already closing in on double-digit gains. But that’s not the first time we’ve stumbled across a transformational company that’s making good on promises to investors…

Something happened last month that I predicted long ago. Big Pharm initiated a collaboration with one of the stem cell companies I recommended to my Breakthrough Technology Alert readers. Specifically, Geron Corp. (NASDAQ: GERN) announced a partnership with GE Healthcare.

The deal is to develop and sell drug-discovery technologies derived from two stem cell lines approved by the Bush administration. The stock rose over 10%, adding about $70 million to Geron’s capitalization.

I don’t write this to crow about being right. I write this because it is critically important that you understand that this is just the tip of the iceberg. For anybody familiar with the way pharma interacts with disruptive startups, it was inevitable. New products from Big Pharma have slowed to a trickle in recent years. The old platforms have largely played out. Slowly, recognition is dawning on the world’s medical giants that it’s time to invest in the most disruptive technology the world has ever seen — stem cell technologies.

Let’s look at the implications.

Pharm is a lumbering behemoth. It may take years for the industry to change focus, but it spews cash wherever it turns. The Geron deal is only the first, so let’s consider what’s next.

Geron has had years to cultivate its Big Pharm contacts, but Geron’s founder, Dr. Michael West, was busy creating and acquiring his own stem cell lines. His inventory, as a result, dwarfs Geron’s.

He has, in fact, most of the stem cell lines approved by the Obama administration’s new funding guidelines. They comprise, remarkably, more than 50% of all known eSC lines. At last count, he had over 200 lines, and 88 had important genetic diseases.

These cell lines, incidentally, were acquired from genetic screeners who help parents who carry genetic diseases assure that they do not pass them onto their children. They include cystic fibrosis, Huntington’s, muscular dystrophy and breast cancer.

Ironically, these cell lines hold the promise of producing treatments for birth defects that currently motivate a significant percentage of abortions. This means, of course, that the utilization of these cells may produce cures that reduce abortion rates.

The story does not end there. West’s ACTCellerate platform is producing the tools for potentiating stem cells into different cell types. Currently, West knows how to turn stem cells, including induced pluripotent stem cells created from adult cells, into more than 140 cell types. Recently, for example, he announced the ability to program cells to repair cartilage and connective tissues.

Therefore, the real number of cell lines that he can produce is in excess of 200 eSC lines times 140 SC types, which is over 28,000 cell types. If only a fraction of these cell types have drug discovery potential, West will do very well, indeed.

And so will his investors… Stay tuned to the Penny Sleuth to get a lead on emergent technologies like these as they happen.

Yours for transformational profits,
Patrick Cox

Yissum Takes Technology Transfer Services by Storm

Founded in 1964 as a way to encourage the “inventiveness” of the Hebrew University of Jerusalem’s staff, Yissum Research and Development Company seeks to support and encourage research, development and education in their efforts to turn science into commercial products for society. Yissum is charged with the not insignificant task of protecting HU’s inventions, products and technologies. Serving as the Technology Transfer Services for the university, Yissum focuses on the ongoing assessment, protection and commercial optimization of the university’s intellectual property.

In their 40-plus year history, Yissum has perhaps surpassed expectations, with reported annual revenues in excess of $40 million, mostly from royalties, and properties ranging from long-shelf-life tomatoes to treatments for cancer and Alzheimer’s disease, placing the Hebrew University in the world’s top 15 academic institutions as measured by revenues from intellectual property sales.

Protect, Partner, Perform

As the Technology Transfer University for HU, Yissum serves not only to protect the university’s intellectual properties, but also to partner with researchers and worldwide businesses to develop commercial markets, and through licensing, establishing companies, joint ventures and collaborative research, enhance the market value and performance of HU’s discoveries, increasing their availability to a global marketplace.

The arrangement has a track record of success. Hebrew University generates approximately $1 billion in annual sales from products in its IP base and Yissum represents over 250 licensed technologies and 60 spin-off companies. The numbers keep adding up with over 3,000 ongoing research projects, 1,200 researchers, 1,400 registered patents and 5 Nobel laureates, all representing 40% of Israel’s civilian scientific research. The range of intellectual properties includes a diverse mix of industrial and therapeutic areas, including biotechnology, nanotechnology, medical research and technologies, pharmaceuticals, agriculture and nutrition, water and environmental technologies, computer science and software development, homeland security and more.

The seemingly endless supply of promising research projects come from the university’s research base; supported by an annual budget of over $77 million, allowing Yissum to take advantage of Technology Transfer Opportunities by identifying appropriate commercial partners, negotiating license agreements, creating spin-off companies and working closely with local and global commercial partners.

Recent news items focus on the medical arena, with HU’s concept of using cellular technology to send X-rays and other medical diagnostics. The new technology would allow for the use of a smaller, less expensive and easier to use Data Acquisition Device (DAD) at remote patient sites, which would be connected via cell technology with advanced image reconstruction at a central site. The implications are far-reaching and could serve to bring advanced medical technology into areas that otherwise could not afford to have it at their disposal; bringing MRIs, X-Rays and other medical diagnostics into rural and third-world areas.

Technologies Supported

Reading through Yissum’s list of products and companies is like reading a Who’s Who directory of the medical and technological worlds. The lists are full of recognized names, successful products and companies that make headlines on a regular basis.

Products from Yissum include Alzheimer and dementia treatment Exelon, dry-eye treatments Cationorm and LO2A (Lacrycon, Dropyal), ovarian cancer treatment Doxil (Caeylx), UV-protection product UV-Pearls-already adopted by major companies for sunscreens and cosmetics, and a variety of other pharmaceutical products. Oh, remember those long-shelf-life tomatoes? That would thanks to BonTom Vegetable Breeding and Research Group, from HU, of course. Another agricultural product from Yissum and Hazera Genetics is the Ram Onion. On the software side, there is Making Better Career Decisions, an interactive, Internet based career-guidance and information system.

Looking over a partial list of companies shows even more diversity, touching on pharmaceuticals, biotech, agriculture and irrigation, water treatment, software development, safety, nanotechnology, and medical technologies, research, development and devices.

Water treatment technologies like En Gibton Ltd and Treatec 21 Industries Ltd; agricultural endeavors Leafsen Irrigation Systems Ltd, Kovax Ltd-vaccines for the aqua culture world, Avian Tech Ltd, and Ravgalai Ltd-detection of antibiotic residues in milk, meat and food products are just the start of the list. Technology and software development come into play with Ex Libris Ltd-high-performance applications for libraries, Mobileeye Vision Technologies Ltd-with automated, on-board driver assist systems and MusicGenome Inc-a system of identifying musical taste based on artificial intelligence.

Perhaps the heaviest area of development is in the medical and pharmaceutical arenas with a long list of companies researching and developing treatments for cancer-including Algen Pharmaceuticals Inc-basically “tricking” cancer cells into “committing suicide.” Other treatment technologies focus on infectious and autoimmune diseases, rheumatoid arthritis and improving the efficacy of vaccines; even delving into the “nutraceutical” field with carriers for nutraceuticals to be incorporated in food systems and cosmetic formulations.

Technology Transfer Services

Yissum serves the Hebrew University, protecting its intellectual properties and moving forward with innovations and technologies into commercial endeavors, ultimately, serving the world community as well as the university through applied chemistry, physics, life science and biotechnologies, water technologies, nanotechnologies, and even veterinary medicine and agricultural technologies. It’s easy to see why Yissum is so highly regarded in the scientific and academic communities and ranks among the top Technology Transfer Services in the world.

Nanobiotechnology,a Quantum Scientific Approach in 21st Century

Nanobiotechnology,a quantum scientific approach in 21st century

Imagination is the key in human life and is the main force behind every development of human lifestyle. Considering the impact of science and technology on the human race, it is natural to think ‘Nothing is Impossible’.

Biotechnology is the application of biological research techniques to develop immense products for mankind. Whereas, nanobiotechnology is the application of nano-scaled tools to biological systems and the other is the use of biological systems as templates in the development of novel nano-scaled products. Simply a nano-biotechnology is the complex of nanotechnology and biotechnology. Each of these technologies has a tremendous impact by itself and therefore when they complement each other it results in efficacious fourth dimensional solutions.

Nanotechnology used in biotechnology usually called nanobiotechnology is definitely a life-saving innovation that has come as a boon to mankind. It involves the creation and use of materials and devices at the level of molecules and atoms for the development of Nanomedicine, Nanosensors, Nanofluidics and Nanofabrics. It is a valuable contribution of the profound research by scientists and engineers to create new systems with novel functionalities.

Nanomedicine is one of an offshoot of nanotechnology, refers to highly specific medical intervention at the molecular level for curing disease or repairing damaged tissues, such as bone, muscle, or nerve. The existing means of intake of drugs orally or through injections are becoming moderately effective but can be extremely painful due to the non-availability of accurate diagnosis. The concept of nanomedicine involves the newer methods to deliver drugs at the right place, time, and amounts in the body. Scientists and engineers have developed new systems where the human-body parameters are monitored using a techno-monitor (semiconductor chip) that is placed inside a human body. These chips are the “nano” machines which are compatible with living tissues and can be safely operated inside the body.

For example: When a patient is being treated for diabetes, the semiconductor chip monitors the blood-sugar levels and passes on the information to the device outside of the body. The external device, in turn, instructs the semiconductor chip that acts as the drug delivery system, to release the right amounts of insulin into the blood, thus causing less or no side effects to the patient.

The approach of nanomedicine is versatile and will completely revolutionize the diverse branches of medicine in near future. It involves the application of nanoparticles for cancer imaging and therapy, drug delivery for prostate cancer and nanowire devices for virus detection and cancer screening too. Thus, nanomedicine is simply the preservation and improvement of human health using molecular tools and molecular knowledge of the human body.

Nanofabrication is the design and manufacture of devices with dimensions measured in nanometers. One nanometer is 10-9 meter, or a millionth of a millimeter. It is of high interest to computer engineers as it opens the door to super-high-density microprocessors and memory chips. It has been suggested that each data bit could be stored in a single atom. Carrying this information further, a single atom might even be able to represent a byte or word of data.

Nano sensors can be prepared by engineering the biomolecules, to recognize a wide variety of targets, including small molecules and specific proteins. Researchers have created DNA-based sensors for nano-tongues and nano- noses.

Nanotechnology shares a wide range of applications right from high-density data for detecting DNA sequence to improve taste and variety of fruits and vegetables nanofluidics. On the commercial front, nanotechnology has enhanced every field in science, engineering, and technology, thus giving high efficiency and profitability of human existence.

This is all being addressed through nano-biotechnology.

Nanites and Self Evolution

Imagine having the ability to rewrite your own DNA by thinking or change the chemical structure and shape of your body at will…

Nanotechnology is still very new and not very useful, yet it’s applications in medicine and engineering are nearly boundless. They can target and destroy a cancer or viruses without surgery, radiation or harmful medicines. They can also build new nanites and other useful structures on the same scale. Potential applications might be making the next generation of computer chips or maintaining youth.

Nanites ould require a very sophisticated program similar to A.I. in order to coordinate millions of them. This type of program is based on Boolean logic and any complete human language written into the program. The basic concept is that humans use language to reason and a computer with a complete understanding of human reasoning can think and learn like any human.

Nanites serve two purposes: self replication and a useful function. Each nanite can contain a small processor and memory and coordinate actions and processing with the other nanites.

Students at Stanford found a way to link neurons from the brain with a computer. Imagine how fast you could solve math problems if you could access a super computer just by thinking about it. You could also store any of your memories with all your senses and recall them is perfect detail at any time. This is the same neural bridge that could be used to direct nanites inside or ouside your body. It could also be used to communicate significantly faster with other humans.

You could also change or enhance any part of your body at will. This includes things like removing all toxins, bacteria, viruses and scar tissue. You could even enhance or repair your eye sight or hearing. Disabilities and damage could be repaired at will, and you could change the structure or materials in your body to adapt to unique environments like space or deep in the ocean.

I know this one is a bit scifi, but the technology will get there eventually.

Overexposed – Tips For Staying Sun Safe in the Dog Days of Summer

As a formulator and manufacturer of all natural plant-based personal care products, I often get asked if any Dropwise products contain sunscreens. The answer is no. Sunscreens are considered over-the-counter drugs regulated by the FDA, and except for two ingredients, all the sunscreen ingredients currently approved by the FDA are synthetic chemicals –some of which are known to be irritants and toxic.

 

I’ve researched sun care and sunscreens for some time now in the hopes of finding a breakthrough in natural ingredients that could replace the chemical sunscreens that are prevalent in today’s sun care products. While there are promising developments on the horizon and valid science to support them, we are not there yet.

 

In the past, having a golden tan was a sign of beauty and health, and sun protection was all about maximizing opportunities to tan while avoiding the pain and discomfort of getting burned. Now, valid or not, the consensus among dermatologists and doctors seems to be that any exposure to the sun is harmful and can lead to cancer.

 

Yet in spite of the proliferation of products with SPF 30 and greater, and the over blown dire warnings not to ever leave your house without sunscreen, the incidence of skin cancer in the U.S. continues to grow at an alarming rate. So how can you find out what your true risk is?

 

There are many factors that determine your risk level including what your skin type is; hereditary factors that could make you more risk-prone; where you live (i.e. altitude and latitude); the amount and type of fats in your diet; whether you are taking certain meds; the time of day and length of exposure; and the biggest predictor of all: how much over-exposure you had as a child and young adult.

 

If you regularly and religiously apply some form of sunscreen, how much you apply, when, where, and how often all affect the product’s ability to successfully filter out the different ultraviolet (UV) rays that damage skin and can cause skin cancer.

 

Here’s a quick summary of what you need to know:

 

UVA vs. UVB Radiation. There’s still a debate over which type of exposure is more harmful. UVB rays are what cause sunburns and are also what your body uses to convert sunlight into Vitamin D. Most sunscreens primarily protect against UVB, which was originally thought to be the main cause of skin cancer. Now there is reason to believe that UVA rays cause more skin damage in the long run and play a larger role in skin cancer. There is currently no standard for formulating “broad spectrum” sunscreens that protect against both. Ironically, the Vitamin D that your body gets from UVB exposure plays a vital role in keeping bones and teeth strong, and helps protect against breast, prostate and colon cancers –making a strong case for a minimal amount of daily unprotected exposure.

 

Diminishing Returns of Higher SPFs. There’s a lot of confusion over how effective higher value SPFs really are at providing more protection. Most consumers think that stepping up from an SPF 15 to an SPF 30 doubles your protection and the amount of time you can stay in the sun. But in fact, because of the way SPF is calculated, this step up actually offers less than a 4% increase in protection! No SPF will absorb 100% of UV rays, so don’t even bother with any product boasting an SPF higher than 30. There’s also growing concern that the lab testing methods used to establish SPFs are not consistent enough to reflect the vagaries of usage and actual conditions created by real sunlight.

 

Knowing that SPF values may not be entirely accurate, you shouldn’t rely on sunscreen as the sole method of protecting yourself.

 

Sunscreen vs. Sunblock. Sunscreens fall into two categories: chemical types and physical types. Chemical sunscreens generally absorb UVB radiation (the so-called “burning rays”) and then disperse that energy through chemical reactions –some of which can actually generate those dreaded “free radicals” that lead to cancer. Physical sunscreens -commonly known as sun blocks-come in the old-fashioned form of titanium dioxide and zinc oxide, white creams that reflect radiation rather than absorb it. Sun blocks are the preferred form of sun protection but because of their texture many consumers don’t like them.

 

Nanoparticles and Micronization. In an attempt to make traditional sun block ingredients more palatable to the consumer, manufacturers have started to micronize the ingredients so they are readily absorbed into the skin and are no longer visible after application — avoiding the whole pasty white war paint effect that make them so unappealing.

 

Unfortunately, this use of nanotechnology is currently unregulated and has some potentially serious health consequences. A 2006 Friends of the Earth report on the dangers of nanoparticles in skin and sun care products cited scientific research that showed many nanoparticles to be toxic to human tissue and cell structure. Their presence in the body can lead to oxidative stress, DNA mutation, and free radical generation –all risk factors for cancer. It’s best to avoid this form of sunscreen and stick to the traditional forms of zinc and titanium dioxide.

 

Natural vs. Synthetic. In addition to the toxicity posed by some chemical sunscreens, you should be concerned about all the other potentially harmful ingredients contained in many sunscreen products. The question to ask yourself is am I simply trading one poison for another?

 

Here are some additional tips to help you stay sun safe in the dog days of summer:

 

Whether you use sunscreen or not, avoid prolonged exposure during the peak hours of 10 AM to 2 PM. Limit your initial exposure to shorter stretches (15 to 30 minutes at a time depending on skin type) until you build up a bit of a base tan, then you can gradually increase the amount of exposure.
If you’re fair-skinned, wear protective clothing (long sleeves, pants) and a wide-brimmed hat whenever possible, and use a sunblock when in the sun.
Use a plant-based body oil made with coconut, jojoba, grape seed, rose hip seed, carrot and/or hemp seed oils as a pre-sun and after sun moisturizer. Research shows that moisturizers made with Vitamin E and C can help fight the free radicals produced by sun damage.
Increase your intake of antioxidants through food and supplementation. Again, consuming foods that are high in Vitamins A (Beta Carotene), C and E can also help fight free radicals. This is especially important if you spend a lot of time in the sun!
Avoid putting citrus essential oils on your skin when going out in the sun as some of them are photo-toxic and can increase your chances of getting burned.
Stay hydrated. Drink plenty of water and remember shade is your friend!

 

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