Safeguard Biosystems – a massive potential for profit

Massive animal diagnostics on a single chip. And GEP’s support, contacts and introductions has helped grow a great idea into a potential world-beater.

Richard Strafehl brought Safeguard Biosystems to the UK from Canada in 2006. He designs and makes biochips that hold up to 1600 microscopic dots – each one a marker that tests animals for an individual pathogen or disease. So instead of dozens of separate tests, it’s dozens of tests at once.

Realising the potential of an exception idea

The first Canadian case of mad cow disease in 2003 turned the idea into reality. His technology was a much quicker and cheaper approach to testing for BSE, foot and mouth and other diseases. And it’s easy to use on site, without a lab.

So Richard could see the commercial potential and naturally wanted the quickest route to market, but his challenge was that most animal testing is in Europe. When he met Toby Wilson Waterworth and Eric Van der Kleij, two of GEP’s dealmakers, he knew that the way forward for his company was to make its home in the UK and work with the GEP.

Raising funds – fantastic results

Even before he arrived, Toby and Eric were identifying and recommending contacts and investors. The results speak for themselves – within six months of the company being here GEP had helped it raise £4.5 million, to develop the technology on a commercial basis. And they introduced some executives who were the right people to help run the company, along with some key workers.

It helps to talk the same language

But the best doors that GEP opened weren’t all financial or managerial. Perhaps the critical turning point was securing the backing of the UK’s Veterinary Laboratory Agency. Every animal test needs their stamp of approval and they now validate each Safeguard Biochip test.

As Toby Wilson Waterworth commented, “GEP is a government programme, so we could talk to them as one civil servant to another, that’s how we got the door open.”

Growing and expanding fast

With the company’s credibility established and guaranteed, markets opened up in labs and large cattle companies in the UK, Canada, the Netherlands and the US. The next step is the current expansion into the Middle East and China.

And on the way, they secured extra funding and outbid 30 other companies to buy the DEFRA spin-out company Foresight Diagnostics. As Eric Van der Kleij puts it, “The executives that were introduced to the company put a wonderful package together, including the acquisition of Foresight – a very significant asset that has accelerated the company. We helped in the traction they need to become investor-ready,” says van der Kleij.

The best deals are always win-win

This deal is clearly a win for the government, the taxpayer and the farming industry… and most importantly for the company and its investors. The global implications of this technology give every single stakeholder a great opportunity. And as Eric explains, the relationship goes on.

“The ability to go global from a UK base is really starting to resonate. Our projects have truly global potential, and we bring to bear all the resources that company needs. And of course we don’t just drop them once they’re here – the after-care programme is just as crucial as getting the right deal in place,” Van der Kleij concludes.