HATTIESBURG—When polymer scientists began buzzing about the latest developments in click chemistry—a new chemical method that generates substances quickly and reliably by joining small units together—and medicinal scientists were discussing the burgeoning gene therapy field and its possibilities for curing almost every mortal disease, Ken Malone had a thought: wouldn’t it be advantageous to society to bring together both groups.

Malone, CEO of Hattiesburg-based Ablitech, found the brainstorming session particularly fruitful.

 

The result: Versadel^TM, a key technology platform that represents a way to correct malfunctioning cells by delivering genetic material to them.

 

While Versadel has been demonstrated to turn off cancer cells, it also has high potential to impact diabetes, Parkinson’s disease, regenerative tissue, and hundreds of other diseases.

 

Versadel’s unique gene delivery system overcomes the obstacle that has perplexed scientists and hindered the movement of gene therapies to market. “For two decades, it's been well known that the cure for so many deadly diseases is gene therapy,” said Malone. “Unfortunately, nobody could simultaneously overcome three large problems: getting the genetic material past the body’s natural immune system; getting the genetic material inside the targeted cell; and activating the genetic material once it is inside the targeted cell. Versadel overcomes all three.”

 

In the lab, Versadel has turned off pancreatic, bladder, and brain cancer. When the company was ready to move into animal trials, its leaders hit a financial snag.  

 

“Early stage capital for biotechnology is essentially nonexistent in Mississippi,” explained Malone. “Because location is important to venture capitalists in Boston, San Diego and other biotech hubs—they understandably want to keep a close eye on their investments—we were strongly considering moving.”

 

The Mississippi Technology Alliance provided Ablitech with a $100,000 convertible loan from the Mississippi Seed Fund, which Malone said made an impact on the company’s decision to remain in Hattiesburg and was a vital component of a larger finance strategy.

 

“With MTA making the first move, there was a cascade of events that resulted in additional funding,” said Malone. “I'm now very confident that we can support our long-term growth in Mississippi. Staying in Mississippi is important to us because of all the early support we received from Southern Miss and Ole Miss.”

 

Ablitech will be moving into 2,000 square feet of space in The Garden, Hattiesburg's new research park.

 

The funding also comes at a time when venture capitalists are being more selective in a dismal economy. During the third quarter of 2009, venture capitalists invested $4.8

 

billion in 637 deals nationwide, down from $7.2 billion invested in 994 companies during the same period in 2008, according to the MoneyTree Report from PricewaterhouseCoopers LLP and the National Venture Capital Association (NVCA).

 

“The third quarter illustrates a gradual and deliberate industry shift towards a longer-term venture capital investment strategy,” said Mark Heesen, president of NVCA. “Venture capitalists are becoming increasingly focused on industry sectors which require multiple funding rounds of financing for an extended time horizon.”

 

Malone said the financing will help the company develop market opportunities for Versadel and develop the relationships necessary with top researchers at multiple universities “to discover the next great thing,” such as technology platforms impacting arthritis and glaucoma, and a way for titanium implants to better adhere to bone.

 

“Our philosophy is to solve really big problems in completely novel ways,” he said. “We do that by combining the latest developments from various science disciplines that seldom talk to each other.”

 

Nick Hammond and Lisa Kemp conceived the idea for Ablitech in 2005 as a result of a National Science Foundation (NSF)-backed program to foster entrepreneurship. The program brought together the Ole Miss Medicinal Chemistry Department and the Southern Miss School of Polymers and High Performance Materials. The goal: to rapidly convert collaborative global research into practical prototypes for healing the human body that can be marketed to pharmaceutical and medical device companies.

 

Ablitech’s award-winning initial concept involved new material for coronary stents. That technology was patent-protected and licensed to LifeFlow, Inc. Additional NSF funding provided the initial support for the development of Versadel.