Synbiologica’s initial target market will be scientific researchers, particularly those with PhDs who are in control of their own research and equipment. These scientists will be responsible for making the decision to incorporate BEAR into their laboratories. A demographic overview of science and engineering PhDs showed that 9 out of every 10 scientists and engineers worked in a large city in 2001.1 60% of science and engineering PhDs work in education and at government institutions.2 In 2001, the average earnings of PhDs working in the public sector surpassed those in the private sector.3 On average, a scientist or engineer with a PhD employed on a full-time basis earned $70,000.4

In 2001, the average age of employed science and engineering PhDs was 46, much older than the average age of 39 for employed Canadians.5

There were 4 times as many men with science and engineering PhDs than women in 2001, but this gap is gradually narrowing. Female PhDs also earned only 77% of what male PhDs earned.6

BEAR will be valuable to scientific researchers, particularly those of the endocrinology and neuroscience demographic. There are 447 endocrinologists practicing in Canada, 78% of which work in a health science centre and 37% of which work in a university.7 In the United States, there are 5341 practicing endocrinologists, approximately 1500 of which are involved in research.8 As scientists learn more about the role of specific hormones in the brain, the more they can contribute to the development of treatments for neurological and mental diseases. The opportunity to publish their research is an interest shared by all scientists. Producing publications allows researchers to continue funding new projects.

In order to produce reliable experimental results, researchers must have a multitude of test subjects or animals to which BEAR will be applied. For example, for every animal used in a neurological behaviour test, one BEAR apparatus will be needed to monitor hormonal changes in each individual animal if they are to be tested at the same time. Situations arise where natural circumstances control when a test must be performed (for example, when a lab rat becomes pregnant) at a time different from other test subject. BEAR is a more efficient means of doing individual tests. The majority of a monoclonal antibody test kit would be wasted as these kits are designed to perform many tests at once. In special situations like these, scientists often cannot store a sample for later use to run more tests at once because the hormones are at risk of breaking down. A new hormone-detecting disposable unit will be needed for each test performed. Each researcher using animal test subjects will need multiple BEAR devices and will need to continue to purchase the disposable cartridges to continue their research, ensuring an ongoing market for Synbiologica.

The biotechnology market consists of the development, manufacturing and marketing of products based on advanced biotechnology research. This market is predicted to grow steadily over the next few years with a growth rate between 6-7%. In 2016, the Canadian biotechnology market is forecast to have a value of $4.6 billion, an increase of 39.4% since 2011 (Figure 2).9 67.4% of the biotechnology market is dedicated to medical device and health care and 23.8% of the market focuses on food and agriculture.

Figure 1: Canada biotechnology market value forecast: $ billion, 2011-2016

In 2008, the Canadian biomedical device market had been valued at $6.4 billion annually. The performance of the market is forecast to accelerate, with an anticipated CAGR of 5.3% for the five-year period 2011 - 2016, which is expected to drive the market to a value of $13.2 billion by the end of 2016.10

Though BEAR was initially designed to be a research and diagnostic tool, we see future application in the Livestock agriculture industry as a hormone and health monitoring system. In 2011, of the 12,457,000 head of cattle produced, 45% were exported to other countries. Alberta produces 39.3% of beef cattle in Canada. Beef Production contributed $25.96 billion to the Canadian economy and beef exports were valued at $1.33 billion.

Cattle in Canada are subject to quality and health testing, which includes the monitoring of disease and meat quality. BEAR modular design gives us the opportunity to integrate into the livestock agriculture industry because we can alter BEAR to detect hormones relevant to the livestock industry, such as pregnancy and growth hormones. The company interviewed researchers and commercialization specialists at the Lethbridge Research Centre for agriculture, who saw the devise as a useful tool and identified areas of application in both livestock agriculture research and industry. We predict that use in the livestock industry will be our highest revenue source.

Total annual costs to establish and operate a medical device manufacturing facility in Canada are the lowest in the G-7. Canada holds a 4.8% cost advantage over the United States in medical device manufacturing.1112

The Canadian medical equipment and supplies market analyzes manufacturers of these supplies.13 Equipment and supplies monitored in this market range from prosthetics and eyeglasses to dialysis tubing and syringes. Our product would fit into this market as a disposable testing tool.

Figure 2: Canada health care equipment and supplies market value forecast: $ million, 2011-2016

The performance of the market is forecast to accelerate, with an anticipated CAGR of 5.3% for the five-year period 2011 - 2016, which is expected to drive the market to a value of $13.2 billion by the end of 2016.

The manufacturing of medical devices involves the application of diverse biomedical and engineering disciplines.14 In addition, the industry is able to draw on world-class innovative research being conducted in Canadian universities, research institutes and hospitals, some of which is spun-off into Canadian medical device companies.1516

This statement speaks strongly to who Synbiologica is and the direction in which the company intends to move. The Synbiologica team consists of scientists with diverse academic backgrounds who are all currently involved in research at the University of Lethbridge. The team plans to draw from each member’s previous experience and expertise to contribute to developing BEAR and future projects.

The Canadian Scientific Research and Experimental Development (SR&ED) Tax Incentive Program, administered by the Canada Revenue Agency, encourages Canadian businesses of all sizes, and in all sectors to conduct R&D in Canada. It provides claimants cash refunds and/or tax credits for their expenditures on eligible R&D work done in Canada.17 Synbiologica will use this resource to conduct new and innovative research in Canada and encourage other scientists to do the same.

Synbiologica intends to utilize the support of the National Research Councel under the Industry Research Assistance Program (IRAP) who provides innovation and funding services customized to the companies specific needs. Their goal is to help companies accelerate the growth of their business through innovation and technology.

Synbiologica is currently exploring Canada’s Food and Drugs Act for guidance in future development of products and ensure the products comply with Canadian medical device regulations.

Synbiologica intends to pursue the Alberta Innovates Technology Futures Voucher Program for $15000 to assist in a comprehensive third party market analysis, as outlined in the Financial section. An additional market assessment will be performed by the University of Lethbridge technology transfer office prior to filing a patent.