Sales And Distribution Channels: From Traditional Avenues To The Internet

FOR IMMEDIATE RELEASE/March 21, 2001
Contact: WPI Venture Forum, 508-831-5075

Everybody likes a success story. Come to the April meeting of the Venture Forum and you'll see one in person. Dennis Guberski, CEO of Biomedical Research Models (BRM), Inc. in Worcester, stood before the Forum audience some three years ago and presented his case to a panel of experts. Evidently he received, and followed, some good advice, as his business has flourished since that time. His company, organized in 1996, develops and utilizes specialty animal models to assess the effectiveness of new drugs in preventing and/or improving disease. As a Contract Research Organization (CRO), BRM offers its expertise in research services to large pharmaceutical companies. Based on personal experience, Guberski will address the issue of effective sales and distribution channels, including the Internet, as part of today's marketing strategies.

Since its inception five years ago, BRM has continued to conduct research and win awards to fund its ongoing investigative trials. The company was recently awarded a Phase 2 SBIR grant totaling $902,043 to pursue research focusing on the new model of obesity and Type 2 diabetes. This two-year project began on January 1, 2001. Additionally, a Phase 1 SBIR grant of $123,148 was given to BRM for a six-month project to investigate an antibody directed at Notch-1 receptors on stem cells.

Having already established broad market acceptance, BRM intends to expand its service business exponentially by using its expertise and specialty model systems to enhance customer-specific studies for pharmaceutical clients on an international scale. BRM has earned industry recognition for the superiority of the animals it uses in diabetes, arthritis, cardiovascular disease and cancer research. Also, BRM has become an innovator in contract services as its skilled personnel efficiently and expertly enable clients to market products with the Investigational New Drugs (IND) label.

Case Presenter

Al Prescott
President, Crescent Innovations
Groton, MA
Prescott@ma.ultranet.com

Crescent Innovations' founder Al Prescott had just completed his fifth triathlon and his master's degree in chemical engineering, when he decided to break away from an established bio-medical company in order to develop a better treatment for jaw pain. Since many members of Prescott's extended family suffer from chronic jaw pain, he knew first-hand that treatment options are limited. As part of research conducted while pursuing his master's degree, Prescott had worked with biologically compatible polymers, which resemble clear Jell-O®, and figured out a new treatment method. According to the National Institutes of Health (NIH), over 7 million Americans suffer pain in their temporomandibular joint (i.e., jaw joint). Of those, over 2 million suffer chronically with symptoms ranging from pain to migraine headaches, popping and/or clicking of the jaw, and even locking of the jaw. It is also estimated that over $1 billion is spent in treating this disorder, known as TMJ or TMD. Crescent Innovations is developing biologically compatible polymer gels to treat TMJ disorders. Currently the only treatment options are:

Non-steroidal anti-inflammatories (NSAIDs) like aspirin, ibuprofen or muscle relaxants
Steroids (cortisone) that have a harmful effect on soft tissues
Surgery

At the April Venture Forum meeting, Prescott will present Crescent Innovations' plan for its first product, non-invasive jaw approach (NINJA), designed to treat people who suffer from TMD and have not responded to NSAIDs. In limited clinical settings, materials similar to those used to make NINJA have been shown to provide benefits akin to steroid injections, without the harmful effects. In fact, some cases have shown joint improvement and elimination of patient symptoms. The recommended treatment plan would involve a NINJA injection into the jaw joint once or twice a year. Preliminary NINJA prototypes have been tested in animals and were found to be sterile and bio-compatible. Crescent Innovations has filed for provisional patent protection for the purification and formulation process. Additional filings will be made. Crescent Innovations is seeking $7 million to fund additional animal and human clinical trials to commercialize NINJA. Crescent Innovations estimates the U.S. and European markets for NINJA to be in excess of $100 million per year. Additional markets, such as orthopedic and drug delivery markets, will also be considered. Following the presentation and break, a panel of experts will offer its comments and constructive criticism to Prescott. The floor will then be opened up for questions.

About the WPI Venture Forum

The WPI Venture Forum was created in 1990 to promote the entrepreneurial spirit and to serve those who engage in technology- based entrepreneurial enterprises by providing advice, support and education tailored to meet their needs. The forum fosters entrepreneurship through such activities as monthly programs, a business plan contest, a weekly radio show on News Radio WTAG (Saturdays, 5-7 pm, 580am), and a monthly newsletter.

The Venture Forum, as part of the Collaborative for Entrepreneurship & Innovation in the Department of Management at WPI, serves individuals who are seeking to begin their own technology-based businesses; founders, presidents, and senior managers of start-up or early-stage companies; senior managers of companies that are restarting or making a transition for one mode of operation to another; and employees leaving large companies due to a reduction in force or to start businesses.

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Last modified: Aug 19, 2005, 16:20 EDT