DNA entrepreneurs wend through uncharted national territory
It is trying to carve out a niche for its biotechnology-related business, a sector that has rewarded investors and entrepreneurs in Western Europe and the USA with handsome profits and prestige in the medical community.
The 12-strong institute is one of the only privately-owned genetic research companies in the country. And, as such, it competes with state-owned institutions - usually laboratories connected to universities - for business. Like some of its state-owned competitors it provides detailed DNA research for sensitive court cases and, using DNA data, designs medical probability models to detect the probability of ailments, such as breast cancer.
Andrzej Ludek and two other board members started up the Instytut Badań DNA, or the Institute for DNA Research, in 2001 with about zł.4.7 million (€1 million).
Ludek realized from day one that the DNA business does not have a fast turnover. "It's a long-term investment," Ludek says. "We didn't expect to have money the next day." But Ludek contemplates: "How long is long term?"
"It's like [Thomas] Edison," he rationalizes. It took the famous inventor thousands of tries before his most lucrative products came to fruition.
So too with the institute: "You have to do so much analysis," he said, adding that it could take as much as five more years before the institute begins to make some substantive gains in turnover. Until then, however, it will continue to make gains in its business model as it feels its way around the uncharted market for DNA research firms.
The institute has primarily cashed in on its legal sector-based business, in which the Polish courts send DNA samples to the institute's labs. It then determines the identity of the DNA - something it has also performed for paternity suits, among other legal cases.
What's more, it is currently applying for patents for its probability tests which are used to test different people's DNA to find the probability that they will contract various ailments, such as breast cancer and toxoplasmosis. Ludek points out that medical probability testing is one of the key areas in which the company intends to develop new products.
But as he notes again, new products in the medical field take time.
In the meantime, he adds that as the institute proves its viability in each section of its business model, it will look for outside investment to grow its operations further. He also notes that there has already been some interest. "We have already had some visitors from abroad," Ludek says, but also states that nothing is concrete at this point. "These were very initial discussions," he adds, declining to name the companies interested.
But should the institute draw interest from investors, foreign or local, it would follow a global trend toward investing in biotechnology - an almost absent sector of the Polish economy.
Venture capital house DBG Eastern Europe, for one, would look to invest in a Poland-based biotech-related company if one surfaces to meet its specific qualifications. Jacek Korpała, the firm's managing partner, said that biotech, in general, is an alluring sector for investors because many biotech companies have performed well financially in the West. But he said most biotech firms tend to be early-stage, start-up companies, which are not DBG's target, commenting, "We do not invest in start-ups."
The 12-strong institute is one of the only privately-owned genetic research companies in the country. And, as such, it competes with state-owned institutions - usually laboratories connected to universities - for business. Like some of its state-owned competitors it provides detailed DNA research for sensitive court cases and, using DNA data, designs medical probability models to detect the probability of ailments, such as breast cancer.
Andrzej Ludek and two other board members started up the Instytut Badań DNA, or the Institute for DNA Research, in 2001 with about zł.4.7 million (€1 million).
Ludek realized from day one that the DNA business does not have a fast turnover. "It's a long-term investment," Ludek says. "We didn't expect to have money the next day." But Ludek contemplates: "How long is long term?"
"It's like [Thomas] Edison," he rationalizes. It took the famous inventor thousands of tries before his most lucrative products came to fruition.
So too with the institute: "You have to do so much analysis," he said, adding that it could take as much as five more years before the institute begins to make some substantive gains in turnover. Until then, however, it will continue to make gains in its business model as it feels its way around the uncharted market for DNA research firms.
The institute has primarily cashed in on its legal sector-based business, in which the Polish courts send DNA samples to the institute's labs. It then determines the identity of the DNA - something it has also performed for paternity suits, among other legal cases.
What's more, it is currently applying for patents for its probability tests which are used to test different people's DNA to find the probability that they will contract various ailments, such as breast cancer and toxoplasmosis. Ludek points out that medical probability testing is one of the key areas in which the company intends to develop new products.
But as he notes again, new products in the medical field take time.
In the meantime, he adds that as the institute proves its viability in each section of its business model, it will look for outside investment to grow its operations further. He also notes that there has already been some interest. "We have already had some visitors from abroad," Ludek says, but also states that nothing is concrete at this point. "These were very initial discussions," he adds, declining to name the companies interested.
But should the institute draw interest from investors, foreign or local, it would follow a global trend toward investing in biotechnology - an almost absent sector of the Polish economy.
Venture capital house DBG Eastern Europe, for one, would look to invest in a Poland-based biotech-related company if one surfaces to meet its specific qualifications. Jacek Korpała, the firm's managing partner, said that biotech, in general, is an alluring sector for investors because many biotech companies have performed well financially in the West. But he said most biotech firms tend to be early-stage, start-up companies, which are not DBG's target, commenting, "We do not invest in start-ups."
