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/ on > c · "We still think in biotechnology in Canada that success is where a company develops a product and sells it to a multi-nation- we've researched the product, we've develal (company). And they take it away, oped it, we've worked out how to manufaccommercialize it and sell it. If the product ture it and we will market it." makes it on the international markets, the Keeping most new technologies in-house company brings it back to may be more costly in the the Canadian consumer short-term, but saves time and they pay through the and money in the long-term nose for it." development of products, Where Bioniche differs, "WHEN YOU DO IT McRae maintained. he explained, is how the "When you make a misIN-HOUSE, YOU company - which has take in a process in-house, growing global revenues it becomes a very high priCONTROL IT. has created a business ority... and you may bring model that, while reducing outside consultants in to IT MAY COST risk for investors, still has help solve the problem." high potential for revenue Using outside companies MORE MONEY, b e c a u s e it allows for to ultimately refine techresearch and development nologies not only takes BUT IT TAKES LESS of new technologies and more time because of the products. TIME. AND AT THE additional communication Two of Bioniche's divibetween the two involved END OF THE DAY, sions are revenue-generatparties, he noted, but also ing, McRae explained, exposes confidential comYOU CONTROL which offsets the costs pany technologies. upwards of $15 million per "If you control your YOUR OWN y e a r - of e x t e n s i v e entire process, you won't research and development give away any secrets. We DESTINY." the company undertakes work in an industry that has each year into new techsome pretty high-priced -- BIONICHE CEO nologies in animal, human technologies... so you don't GRAEME MCRAE and botanical fields. want to go outside and In addition, to capitalize show s o m e b o d y y o u r on revenue, the company secrets, because they may not only conceives and find a way hones new methods and commodities, but around your patent. manufactures and markets many products "When you do it into the end consumer -- rather than solicit- house, you control it. It may "...IN THE ing the assistance of a larger conglomerate cost more money, but it in the field. takes less time. And at the MAJORITY OF Taking into consideration the state of the end of the day, you control Canadian dollar and that sales of Bioniche your own destiny." CASES THERE HAS products into the Canadian marketplace Within Bioniche, a accounted for only 20 per cent of the com- unique business platform BEEN A DRAMATIC pany's revenue last year, McRae, who found- has evolved, one that can ed Bioniche in 1992, said companies "should handle potential volume DECREASE - - EVEN be doing the manufacturing in Canada, and and revenues generated by ELIMINATION asking the multi-nationals to distribute the one or more of the promisproduct for us where they have a strong ing human health market OF CANCER IN market-hold... or developing a small highly- products nearing the final motivated sales force." stages of development, said THE BODY." In many cases Bioniche, which has more McRae. than 60 products on the human and animal For example, Bioniche's markets, "doesn't need a multi-national -- Mycobacterial Cell Wall i