Fannin Innovation Studio's substance use disorder drug will be evaluated by the National Institute of Drug Abuse. Photo via Getty Images

Fannin Innovation Studio, a Houston-based biotech company, is teaming up with a federal agency to test the company’s leading candidate for treatment of substance abuse disorders.

The Addiction Treatment Discovery Program within the National Institute of Drug Abuse will evaluate the drug, known as 11h. Fannin says it’s keeping all intellectual property, proprietary, and commercialization rights for 11h. Fannin’s Goldenrod Therapeutics portfolio startup, founded in 2020, is overseeing development of the drug.

The federal agency’s “active engagement will accelerate our program and provide an additional independent assessment of 11h as we advance it towards clinical development,” Dr. Atul Varadhachary, managing partner at Fannin, says in a news release.

Fannin’s 11h is part of an array of compounds developed by Corey Hopkins, a professor in the Department of Pharmaceutical Sciences at the University of Nebraska Medical Center in Omaha. Fannin licensed 11h in June 2020.

“11h has the potential to significantly supplement [the] current standard of care in a number of substance use disorders, some of which currently lack any approved pharmaceutical treatment options,” says Dr. Dev Chatterjee, managing director at Fannin.

Last year, Varadhachary told InnovationMap that “the one single thing” Houston could do to boost its chances for success in life sciences, particularly in therapeutics, would be to rev up the cultivation of entrepreneurial talent.

“By and large, I don’t think know that this community appreciates how important and how under-resourced that whole people-development piece is,” he says. “It’s not something that comes from taking classes or watching. It comes from doing.”

This week's roundup of Houston innovators includes Emily Reiser of Texas Medical Center Innovation, Atul Varadhachary of Fannin Innovation Studio, and Vicki Knott of Crux OCM. Courtesy photos

3 Houston innovators to know this week

who's who

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to two local innovators, as well as one honorary Houstonian, across industries — energy, health care, and more — recently making headlines in Houston innovation.

Emily Reiser, senior manager for innovation community and engagement for Texas Medical Center Innovation

Emily Reiser joins the Houston Innovators Podcast to discuss the latest at TMC Innovation. Photo courtesy of TMC Innovation

Over her past few years at Texas Medical Center Innovation, Emily Reiser has worked with over 1,000 startups. So, it's safe to say she knows what a good pitch looks like and what health tech startups need as far a support from mentors and experts goes.

She shares some of her advice and observations on this week's episode of the Houston Innovators Podcast. She also explains how TMC Innovation is uniquely positioned to advance the best and brightest in life science innovation.

"When we think about how a startup is going to be successful, we think about how they are going to build new partnerships. But we also think about all the people they're going to need to activate and bring them to the next level," Reiser says. "What we do is curate a community of high-value resources that can help these companies elevate to that next level." Click here to read more.

Atul Varadhachary, managing partner of Houston's Fannin Innovation Studio

Atul Varadhachary, managing partner of Fannin Innovation Studio, says that now is the time to invest in life sciences. Photo via fannininnovation.com

Fannin Innovation Studio is hard at work finding, supporting, and accelerating life science innovations, but, according to Managing Partner Atul Varadhachary, the organization can be doing so much more — if only the budget allowed.

Varadhachary makes a case for tripling or even quadrupling the number of participants in Fannin's federally accredited fellowship program. He says this one relatively small investment could push Houston closer to Boston in the life sciences stratosphere.

"I can think of nothing that could give a bigger return on investment for the city," Varadhachary says of expanding Fannin's fellowship program. Click here to read more.

Vicki Knott, co-founder and CEO of Crux OCM

A Canadian software company is expanding its presence in Houston to meet the needs of its clients. Photo courtesy of Crux OCM

For six months of the year, Vicki Knott plans to take up residence in Houston. As the co-founder and CEO of Calgary-based Crux OCM, Knott saw a big opportunity to expand her control room operations automation software business — especially when she nabbed Houston-based Phillips 66 as a client.

Calgary and Houston have a lot in common, Knott says, and she sees a very natural connection to the two regions. Knott plans to work six months of the year in Houston with the local office.

"A lot of the companies that head offices in Houston, they have head offices in Calgary," she says. "If a startup in Houston is getting traction, I think there's a natural movement to start in the Calgary market and vice versa." Click here to read more.

Atul Varadhachary, managing partner of Fannin Innovation Studio, says that now is the time to invest in life sciences. Photo via Getty Images

Innovation studio aims to put Houston on the map for life science startup development

fostering innovation

In a report last year from commercial real estate services company JLL, Boston took the crown for hosting the country's top life sciences ecosystem. Houston ranked 11th.

The difference between Houston and Boston "is not the innovation, it's not the technology, it's not the money. It's that we don't have experienced life sciences entrepreneurs," says Dr. Atul Varadhachary, managing partner of Houston's Fannin Innovation Studio, a for-profit entity that commercializes biotech and medtech concepts.

Fannin has tried to replicate Boston's robust life sciences ecosystem "in a really, really tiny way" via its fellowship program, Varadhachary says. But the reach of the program could be even greater, he believes.

Varadhachary makes a case for tripling or even quadrupling the number of participants in Fannin's federally accredited fellowship program. He says this one relatively small investment could push Houston closer to Boston in the life sciences stratosphere.

Atul Varadhachary is the managing partner of Houston's Fannin Innovation Studio. Photo via fannininnovation.com

To be sure, Houston is no slouch in life sciences. For instance, commercial real estate services company CBRE issued a report last fall ranking Houston second among the country's top emerging clusters for life sciences. But cities like Boston, San Francisco, and San Diego still reign as life sciences royalty in the U.S.

Fannin typically taps five people at a time — folks who've recently earned a master's degree, medical degree or PhD — for a two-year fellowship in life sciences entrepreneurship and commercialization. The initiative is comparable to a post-doctorate program in research or medicine. The Fannin fellows collaborate with therapeutics and medical device companies in the studio's portfolio, gaining hands-on training in facets of business like R&D, intellectual property, regulatory matters, and financing.

Today, five fellows and seven interns work at Fannin. The fellowship program launched in 2006; the internship program started a year earlier. In all, Fannin has welcomed more than 250 fellows and interns. Some of them have gone on to work at Houston organizations such as TMC Innovation, MD Anderson Cancer Center, and the University of Houston.

Varadhachary believes boosting the fellowship headcount to perhaps 15 instead of the current five would be a small price to pay to help elevate Houston's status in life sciences. The full cost of each fellowship is less than $100,000 a year, so bringing aboard another 10 fellows would require an extra annual commitment of under $1 million. That kind of money isn't in Fannin's budget, though.

"I can think of nothing that could give a bigger return on investment for the city," Varadhachary says of expanding Fannin's fellowship program.

More fellows would mean more entrepreneurs equipped to run or start life sciences businesses in Houston, he says. Varadhachary acknowledges the value of efforts like the soon-to-open TMC3 life sciences hub and the recently opened Ion entrepreneurship hub, but he'd like to see more emphasis placed on nurturing people and not just startups.

Varadhachary says the "the one single thing" that Houston could do to increase its probability of success in life sciences, particularly in therapeutics, would be to crank up cultivation of entrepreneurial talent.

"By and large, I don't think know that this community appreciates how important and how under-resourced that whole people-development piece is," he says. "It's not something that comes from taking classes or watching. It comes from doing."

Andrea Letkeman, director of professional development at Fannin, says the fellows initially work one-on-one with a senior executive on projects, then eventually graduate to running their own projects. Fellows also get a close-up look at other projects underway at Fannin.

Varadhachary wants to get Fannin fellows excited "about what we're doing in Houston, and then give them an opportunity to be part of our ecosystem."

Some Fannin fellows have been hired on a full-time basis by the studio, or they've moved into jobs at venture capital firms, life sciences startups, or other players in the ecosystem, according to Letkeman. She says the fellows lend "energy and vibrancy" to Fannin.

"I think that the Fannin model is fairly unique for Houston. There are models that are similar, across the country, to what we do. But there's not enough of them, quite frankly, for the number of people that are interested in these kinds of roles," Letkeman says.

"There is talent that is looking for a way to bridge the gap between academia and real-world commercialization," she adds. "There's just not enough opportunities out there for them."

Re:3D is one of two Houston companies to be recognized by the SBA's technology awards. Photo courtesy of re:3D

2 Houston startups win national technology award from SBA

winner, winner

A couple of Houston startups have something to celebrate. The United States Small Business Administration announced the winners of its Tibbetts Award, which honors small businesses that are at the forefront of technology, and two Houston startups have made the list.

Re:3D, a sustainable 3D printer company, and Raptamer Discovery Group, a biotech company that's focused on therapeutic solutions, were Houston's two representatives in the Tibbetts Award, named after Roland Tibbetts, the founder of the SBIR Program.

"I am incredibly proud that Houston's technology ecosystem cultivates innovative businesses such as re:3D and Raptamer. It is with great honor and privilege that we recognize their accomplishments, and continue to support their efforts," says Tim Jeffcoat, district director of the SBA Houston District Office, in a press release.

Re:3D, which was founded in 2013 by NASA contractors Samantha Snabes and Matthew Fiedler to tackle to challenge of larger scale 3D printing, is no stranger to awards. The company's printer, the GigaBot 3D, recently was recognized as the Company of the Year for 2020 by the Consumer Technology Association. Re:3D also recently completed The Ion Smart and Resilient Cities Accelerator this year, which has really set the 20-person team with offices in Clear Lake and Puerto Rico up for new opportunities in sustainability.

"We're keen to start to explore strategic pilots and partnerships with groups thinking about close-loop economies and sustainable manufacturing," Snabes recently told InnovationMap on the Houston Innovators Podcast.

Raptamer's unique technology is making moves in the biotech industry. The company has created a process that makes high-quality DNA Molecules, called Raptamers™, that can target small molecules, proteins, and whole cells to be used as therapeutic, diagnostic, or research agents. Raptamer is in the portfolio of Houston-based Fannin Innovation Studio, which also won a Tibbetts Award that Fannin Innovation Studio in 2016.

"We are excited by the research and clinical utility of the Raptamer technology, and its broad application across therapeutics and diagnostics including biomarker discovery in several diseases, for which we currently have an SBIR grant," says Dr. Atul Varadhachary, managing partner at Fannin Innovation Studio.

This year, 38 companies were honored online with Tibbetts Awards. Since its inception in 1982, the awards have recognized over 170,000 honorees, according to the release, with over $50 billion in funding to small businesses through the 11 participating federal agencies.

Allterum Therapeutics Inc., a portfolio company of Fannin Innovation Studio, is using the funds to prepare for clinical trials. Photo via Getty Images

Houston biotech startup raises millions to battle pediatric cancer

fresh funds

Allterum Therapeutics Inc. has built a healthy launchpad for clinical trials of an immunotherapy being developed to fight a rare form of pediatric cancer.

The Houston startup recently collected $1.8 million in seed funding through an investor group associated with Houston-based Fannin Innovation Studio, which focuses on commercializing biotech and medtech discoveries. Allterum has also brought aboard pediatric oncologist Dr. Philip Breitfeld as its chief medical officer. And the startup, a Fannin spinout, has received a $2.9 million grant from the Cancer Prevention Research Institute of Texas.

The funding and Breitfeld's expertise will help Allterum prepare for clinical trials of 4A10, a monoclonal antibody therapy for treatment of cancers that "express" the interleukin-7 receptor (IL7R) gene. These cancers include pediatric acute lymphoblastic leukemia (ALL) and some solid-tumor diseases. The U.S. Food and Drug Administration (FDA) has granted "orphan drug" and "rare pediatric disease" designations to Allterum's monoclonal antibody therapy.

If the phrase "monoclonal antibody therapy" sounds familiar, that's because the FDA has authorized emergency use of this therapy for treatment of COVID-19. In early January, the National Institute of Allergy and Infectious Diseases announced the start of a large-scale clinical trial to evaluate monoclonal antibody therapy for treatment of mild and moderate cases of COVID-19.

Fannin Innovation Studio holds exclusive licensing for Allterum's antibody therapy, developed at the National Cancer Institute. Aside from the cancer institute, Allterum's partners in advancing this technology include the Therapeutic Alliance for Children's Leukemia, Baylor College of Medicine, Texas Children's Hospital, Children's Oncology Group, and Leukemia & Lymphoma Society.

Although many pediatric patients with ALL respond well to standard chemotherapy, some patients continue to grapple with the disease. In particular, patients whose T-cell ALL has returned don't have effective standard therapies available to them. Similarly, patients with one type of B-cell ALL may not benefit from current therapies. Allterum's antibody therapy is designed to effectively treat those patients.

Later this year, Allterum plans to seek FDA approval to proceed with concurrent first- and second-phase clinical trials for its immunotherapy, says Dr. Atul Varadhachary, managing partner of Fannin Innovation Studio, and president and CEO of Allterum. The cash Allterum has on hand now will go toward pretrial work. That will include the manufacturing of the antibody therapy by Japan's Fujifilm Diosynth Biotechnologies, which operates a facility in College Station.

"The process of making a monoclonal antibody ready to give to patients is actually quite expensive," says Varadhachary, adding that Allterum will need to raise more money to carry out the clinical trials.

The global market for monoclonal antibody therapies is projected to exceed $350 billion by 2027, Fortune Business Insight says. The continued growth of these products "is expected to be a major driver of overall biopharmaceutical product sales," according to a review published last year in the Journal of Biomedical Science.

One benefit of these antibody therapies, delivered through IV-delivered infusions, is that they tend to cause fewer side effects than chemotherapy drugs, the American Cancer Society says.

"Monoclonal antibodies are laboratory-produced molecules engineered to serve as substitute antibodies that can restore, enhance or mimic the immune system's attack on cancer cells. They are designed to bind to antigens that are generally more numerous on the surface of cancer cells than healthy cells," the Mayo Clinic says.

Varadhachary says that unlike chemotherapy, monoclonal antibody therapy takes aim at specific targets. Therefore, monoclonal antibody therapy typically doesn't broadly harm healthy cells the way chemotherapy does.

Allterum's clinical trials initially will involve children with ALL, he says, but eventually will pivot to children and adults with other kinds of cancer. Varadhachary believes the initial trials may be the first cancer therapy trials to ever start with children.

"Our collaborators are excited about that because, more often than not, the cancer drugs for children are ones that were first developed for adults and then you extend them to children," he says. "We're quite pleased to be able to do something that's going to be important to children."

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Looking back: Top 5 most-read Houston research-focused stories of 2021

2022 in review

Editor's note: As 2022 comes to a close, InnovationMap is looking back at the year's top stories in Houston innovation. In many cases, innovative startups originate from meticulous research deep within institutions. This past year, InnovationMap featured stories on these research institutions — from their breakthrough innovations to funding fueling it all. Here are five Houston research-focused articles that stood out to readers this year — be sure to click through to read the full story.


Texas nonprofit cancer research funder doles out millions to health professionals moving to Houston

These cancer research professionals just got fresh funding from a statewide organization. Photo by Dwight C. Andrews/Greater Houston Convention and Visitors Bureau

Thanks in part to multimillion-dollar grants from the Cancer Prevention and Research Institute of Texas, two top-flight cancer researchers are taking key positions at Houston’s Baylor College of Medicine.

Dr. Pavan Reddy and Dr. Michael Taylor each recently received a grant of $6 million from the Cancer Prevention and Research Institute of Texas.

Reddy is leaving his position as chief of hematology-oncology and deputy director at the University of Michigan’s Rogel Cancer Center to become director of the Baylor College of Medicine’s Dan L. Duncan Comprehensive Cancer Center. Dr. C. Kent Osborne stepped down as the center’s director in 2020; Dr. Helen Heslop has been the interim director. Continue reading.

Rice University deploys grant funding to 9 innovative Houston research projects

Nine research projects at Rice University have been granted $25,000 to advance their innovative solutions. Photo courtesy of Rice

Over a dozen Houston researchers wrapped up 2021 with the news of fresh funding thanks to an initiative and investment fund from Rice University.

The Technology Development Fund is a part of the university’s Creative Ventures initiative, which has awarded more than $4 million in grants since its inception in 2016. Rice's Office of Technology Transfer orchestrated the $25,000 grants across nine projects. Submissions were accepted through October and the winners were announced a few weeks ago. Continue reading.

Houston researchers create unprecedented solar energy technology that improves on efficiency

Two researchers out of the University of Houston have ideated a way to efficiently harvest carbon-free energy 24 hours a day. Photo via Getty Images

Two Houstonians have developed a new system of harvesting solar energy more efficiently.

Bo Zhao, the Kalsi Assistant Professor of mechanical engineering at the University of Houston, along with his doctoral student Sina Jafari Ghalekohneh, have created a technology that theoretically allows solar energy to be harvested to the thermodynamic limit, which is the absolute maximum rate sunlight can be converted into electricity, as reported in a September article for Physical Review Applied.

Traditional solar thermophotovoltaics (STPVs), or the engines used to extract electrical power from thermal radiation, run at an efficiency limit of 85.4 percent, according to a statement from UH. Zhao and Ghalekohneh's system was able to reach a rate of 93.3 percent, also known as the Landsberg Limit. Continue reading.

Texas A&M receives $10M to create cybersecurity research program

Texas A&M University has announced a new cybersecurity-focused initiative. Photo via tamu.edu

Texas A&M University has launched an institute for research and education regarding cybersecurity.

The Texas A&M Global Cyber Research Institute is a collaboration between the university and a Texas A&M University System engineering research agency, the Texas A&M Engineering Experiment Station. The research agency and Texas A&M are also home to the Texas A&M Cybersecurity Center.

The institute is funded by $10 million in gifts from former Texas A&M student Ray Rothrock, a venture capitalist and cybersecurity expert, and other donors. Continue reading.

Houston research organization doles out $28M in grants to innovators across Texas

Houston-based Welch Foundation has awarded almost $28 million in chemical research grants throughout Texas this year. Photo via Getty Images

Chemical researchers at seven institutions in the Houston area are receiving nearly $12.9 million grants from the Houston-based Welch Foundation.

In the Houston area, 43 grants are going to seven institutions:

  • Baylor College of Medicine
  • Rice University
  • Texas A&M University
  • Texas A&M University Health Science Center
  • University of Houston
  • University of Texas Health Science Center at Houston
  • University of Texas Medical Branch in Galveston

The Welch Foundation is awarding almost $28 million in chemical research grants throughout Texas this year. The money will be allocated over a three-year period. Continue reading.

University of Houston powers up first robot food server in a U.S. restaurant

order up

The University of Houston is taking a bold step — or, in this case, roll — in foodservice delivery. UH's Conrad N. Hilton College of Global Hospitality Leadership is now deploying a robot server in Eric’s Restaurant at its Hilton College.

Booting up this new service is major bragging rights for the Coogs, as UH is now the only college in the country — and the only restaurant facility in Houston — to utilize a robotic food delivery.

These rolling delivery bots come from the state-of-the-art food service robot called Servi. The bots, created by Bear Robotics, are armed with LiDar sensors, cameras, and trays, and automatically return to their posts when internal weight sensors detect a delivery has been completed.

Not surprisingly, these futuristic food staffers are booting up plenty of buzz at UH.

“People are excited about it,” says Dennis Reynolds, who is dean of the Conrad N. Hilton College of Global Hospitality Leadership and oversees the only hospitality program in the world where students work and take classes in an internationally branded, full-service hotel. Launching robot waitstaff at UH as a test market makes sense, he notes, for practical use and larger implications.

The Servi robots deliver food from the kitchen to the table. Photo courtesy of the University of Houston

“Robotics and the general fear of technology we see today are really untested in the restaurant industry,” he says in an announcement. “At Hilton College, it’s not just about using tomorrow’s technology today. We always want to be the leader in learning how that technology impacts the industry.”

Bear Robotics, a tech company founded by restaurant experts and tech entrepreneurs, hosted a Servi showcase at the National Restaurant Show in Chicago earlier this year. After seeing the demo, Reynolds was hooked. UH's Servi robot arrived at Eric’s Restaurant in October.

Before sending the bot to diners' tables, the bot was prepped by Tanner Lucas, the executive chef and foodservice director at Eric’s. That meant weeks of mapping, programming, and — not surprisingly — “test driving” around the restaurant.

Tanner even created a digital map of the restaurant to teach the Servi its pathways and designated service points, such as table numbers. “Then, we sent it back and forth to all of those points from the kitchen with food to make sure it wouldn’t run into anything," he adds.

But does having a robot deliver food create friction between human and automated staff? Not at Eric's. “The robot helps my workflow,” Joel Tatum, a server at Eric’s says. “It lets me spend more time with my customers instead of just chasing and running food.”

Once loaded, the kitchen staff can tell the Servi robots where to take the dishes. Photo courtesy of the University of Houston

Reynolds believes robots will complement their human counterparts and actually enhance the customer experience, even in unlikely settings.

“Studies have been conducted in senior living facilities where you might think a robot wouldn’t be well received, but it’s been just the opposite,” Reynolds says. “Those residents saw the change in their lives and loved it.”

To that end, he plans to use Servi bots in other UH venues. “The ballroom would be a fantastic place to showcase Servi – not as a labor-saving device, but as an excitement generator,” Reynolds notes. “To have it rotating through a big event delivering appetizers would be really fun.”

Critics who denounce robot servers and suggest they will soon displace humans are missing the point, Reynolds adds. “This isn’t about cutting our labor costs. It’s about building our top-line revenues and expanding our brand as a global hospitality innovator,” Reynolds says. “People will come to expect more robotics, more artificial intelligence in all segments of hospitality, and our students will be right there at the forefront.”

Servi bots come at a time of dynamic growth for Hilton College. A recent rebrand to “Global Hospitality Leadership” comes as the college hotel is undergoing a $30 million expansion and renovation, which includes a new five-story, 70-room guest tower. The student-run Cougar Grounds coffeehouse reopened this semester in a larger space with plenty of updates. The neighboring Eric’s Club Center for Student Success helps with recruitment and enrollment, undergraduate academic services, and career development.

“To be the first university in the country to introduce robotics in the dining room is remarkable,” Reynolds adds. “There are a lot of unique things we’re doing at Hilton College.”

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This article originally ran on CultureMap.

Houston innovator on seeing a greener future on built environment

HOUSTON INNOVATORS PODCAST EPISODE 162

An architect by trade, Anas Al Kassas says he was used to solving problems in his line of work. Each project architects take on requires building designers to be innovative and creative. A few years ago, Kassas took his problem-solving background into the entrepreneurship world to scale a process that allows for retrofitting window facades for energy efficiency.

“If you look at buildings today, they are the largest energy-consuming sector — more than industrial and more than transportation,” Kassas, founder and CEO of INOVUES, says on the Houston Innovators Podcast. “They account for up to 40 percent of energy consumption and carbon emissions.”

To meet their climate goals, companies within the built environment are making moves to transition to electric systems. This has to be done with energy efficiency in mind, otherwise it will result in grid instability.

"Energy efficiency goes hand in hand with energy transition," he explains.

Kassas says that he first had the idea for his company when he was living in Boston. He chose to start the business in Houston, attracted to the city by its central location, affordable labor market, and manufacturing opportunities here.

Last year, INOVUES raised its first round of funding — a $2.75 million seed round — to scale up the team and identify the best markets to target customers. Kassas says he was looking for regions with rising energy rates and sizable incentives for companies making energy efficient changes.

"We were able to now implement our technology in over 4 million square feet of building space — from Boston, Seattle, Los Angeles, New York City, Portland, and very soon in Canada," he says.

Notably missing from that list is any Texas cities. Kassas says that he believes Houston is a great city for startups and he has his operations and manufacturing is based here, but he's not yet seen the right opportunity and adaption

"Unfortunately most of our customers are not in Texas," "A lot of work can be done here to incentivize building owners. There are a lot of existing buildings and construction happening here, but there has to be more incentives."

Kassas shares more about his growth over the past year, as well as what he has planned for 2023 on the podcast. Listen to the interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.