“I wanted to replicate the mechanism by which cells multiply in a test tube." OriCiro Genomics is a biotech startup founded on the cell-free DNA amplification technology developed from the scientific curiosity of Professor Masayuki Suetsugu of the Department of Life Sciences, Faculty of Science, at Rikkyo University. While the synthesis of DNA commonly involves using living cells such as E. coli, the establishment of a cell-free technique has enabled the more rapid amplification of DNA. In 2023, this technology caught the attention of the US company Moderna, leading to an acquisition agreement, and it is now expected to significantly contribute to the development and manufacturing of mRNA vaccines. We looked back on how a technology born out of purely scientific interest was commercialized after meeting with UTEC. Professor Suetsugu and Usami from UTEC reflected on the journey from the company's founding to its exit.
06
STORY
OriCiro
Genomics
UTEC
Researchers' curiosity
opens up the world
Professor, College of Science,
Rikkyo University
External Director, Moderna Enzymatics Co.
(Former Co-founder and CSO of
OriCiro Genomics, Inc.)
Masayuki Suetsugu
UTEC Board of Members, Partner
Atsushi Usami
Rikkyo University
External Director, Moderna Enzymatics Co.
(Former Co-founder and CSO of
OriCiro Genomics, Inc.) Masayuki Suetsugu UTEC Board of Members, Partner Atsushi Usami
PROLOGUE
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SECTION01 : Revolutionary, and Thus Initially Misunderstood
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SECTION01
Revolutionary, and Thus Initially Misunderstood
Professor Suetsugu established the technology to reconstruct the E. coli genome replication cycle in a test tube in 2017, a world first. It was the year before this breakthrough that he encountered UTEC.
- Usami:
- I believe you started your research in earnest in 2013. What sparked this?
- Suetsugu:
- It was initially pure intellectual curiosity. While studying abroad in the UK, I was fascinated by watching cells replicate their DNA and proliferate under a microscope, making proteins glow. I wondered if I could replicate this phenomenon of life with my own hands. I didn’t really expect to succeed; I thought it would be fine if it led to some new discovery or a new topic of research, even if it didn’t work out. However, once I started, I found the 26 factors necessary for replication, and the DNA doubled exponentially from one to two, two to four, and so on. I had no clear vision of its applications, but I thought it was incredible and filed for a patent.
- Usami:
-
We first met in September 2016. I have been discussing with Professor Hiroyuki Noji of the University of Tokyo, who researches artificial cells, since the end of 2013.
Professor Noji was a program manager for the Cabinet Office's Innovative Research and Development Promotion Program (ImPACT) and introduced me to Professor Suetsugu, who was the head of the research and development group for that program. When I first heard about it, I thought, "This is revolutionary!" I intuitively felt that this technology was comparable to iPS cells discovery, if not superior, and would create a significant trend in the future.
- Suetsugu:
-
I, too, was confident that this technology would become widely used. So, I first talked to corporations about commercializing it as a research reagent kit, but the responses were not always positive. While Yamanaka’s factors were four, I had found 26. There was skepticism about whether it was really possible to create a working reaction mixture by mixing them, and whether the investment risk was not too high. In my lab, undergraduates were routinely amplifying DNA with it, though (laughs).
If it was difficult to proceed by collaborating with existing corporations, the only option was to start my own company. However, as a researcher, I didn’t know much about business. It was when I was wondering what to do that I encountered UTEC.
SECTION02 : Aiming to Create a New Industry
with Societal Impact
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SECTION02
Aiming to Create a New Industry with Societal Impact
Professor Suetsugu and UTEC first crossed paths in September 2016. From there, it took about two years until OriCiro Genomics was founded and received investment from UTEC in December 2018. What kinds of obstacles did they face on the road to founding the company?
- Usami:
- After discussing with Prof Suetsugu, I felt that this was a technology capable of making a significant impact on society. However, on the other hand, the direction for how to grow it through various applications in the mid to long term wasn't clear yet. While the initial direction to spread it in the world of research as a reagent was set, ending there wouldn't be interesting. We needed to think from a mid to long-term perspective about what kind of applications could create a new industry. For over a year after we met, we were constantly discussing this.
- Suetsugu:
- We came up with a variety of ideas, from the feasible to the level of wild fantasies. For instance, DNA has been a recording medium that has carried information through billions of years of life's evolution to the next generation. It was before AI had spread, but it was clear that the amount of information society handles was going to increase exponentially. We thought it would be interesting if we could apply our technology to DNA-based storage, or DNA storage.
- Usami:
- As the end of the ImPACT program approached, by spring 2018, we had reached the stage of securing a vision for commercialization. Parallel to assessing applications, we also began the search for a founding CEO.
- Suetsugu:
-
With Dr. Usami also in attendance, we conducted interviews with several people. However, it was difficult to find someone who was a perfect fit. It wasn't just about entrusting the business to them; without a deep understanding of the technology and researchers, it would be challenging to succeed. I remember a time after an interview, sitting in a Starbucks in the engineering faculty, both of us holding our heads in our hands.
After about half a year, through UTEC's connections, we met Mr. Seiji Hirasaki, who had director experience in a biotech startup. During our first meeting, Mr. Hirasaki said, "Pharmaceutical companies are facing challenges with mass production of plasmids. There is a need for this technology," and he proposed applications based on the technology. After we offered him the position and he accepted, I felt we made a significant leap forward in commercialization.
NEXT
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PROBLEM
One year since its inception, OriCiro Genomics has faced the spread of Covid 19 while advancing its commercialization. At almost the same time, Professor Suetsugu, who returned from a sabbatical leave, became busy with his university duties. OriCiro Genomics faced a turning point.
SECTION03 : Supporting Intellectual Property Management Essential for Science-based Startup
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SECTION03
Supporting Intellectual Property Management Essential for Science-based Startup
In the first year, it was necessary to organize the team and decide the direction of the business. How did UTEC provide hands-on support?
- Usami:
- What kind of support from UTEC left an impression on you?
- Suetsugu:
- It's definitely about team building. Initially, Dr. Usami reached out to a friend from his junior and senior high school days, and we were able to entrust that person with back-office-related tasks. Also, the presence of professionals dispatched by UTEC for startup support was significant. Specifically, what helped us a lot was intellectual property (IP) management. After filing a patent, you must request examinations in each country, and when advancing the business, it's necessary to investigate whether you are infringing on other patents. To support these tasks, Mr. Atsushi Shimada, a patent attorney from UTEC, joined us. It was reassuring to be able to consult him not only for managing IP but also from the perspective of IP, asking whether a particular research could become patentable.
- Usami:
- Professor Suetsugu, you took a sabbatical leave from the university in the first year.
- Suetsugu:
-
I took my sabbatical leave, which is available once every seven years, from April 2019 to focus on the company. It was during this sabbatical that Dr. Usami, Mr. Hirasaki, and I could go to the United States for sales and trade shows to gather information. From multiple pharmaceutical companies in the US, we heard that if we could produce plasmids in certain amounts, it would be worth considering, which informed our subsequent R&D.
However, the onset of the COVID-19 pandemic the following year was problematic. Just as we had identified clear objectives, the university was closed, and we couldn't access the lab... Moreover, my sabbatical ended in April 2020. Although I continued to oversee the research as the CSO (Chief Scientific Officer), I couldn't dedicate as much time as in the first year. We needed someone who could be entrusted with the technical aspects, and ultimately, Dr. Nasir Kato, who had been R&D Director at PeptiDream, joined us in July 2021 as the CTO (and became CEO in September 2022). PeptiDream was a former portfolio company of UTEC.
FINAL SECTION : The Reason for Choosing M&A Over IPO
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FINAL SECTION The Reason for Choosing M&A Over IPO
FINAL SECTION
The Reason for Choosing M&A Over IPO
OriCiro Genomics, which had been preparing for an IPO, announced in 2023 that it had signed an acquisition agreement with Moderna. What led to the decision to sell the business through M&A?
- Usami:
- Among the investments I've been involved with, OriCiro Genomics was one of the most open and transparent companies, where anything could be discussed openly.
- Suetsugu:
- You hear about disagreements between companies and investors, but we hardly had any. A memorable internal discussion was about whether to stop selling our reagent kits when the next business theme of applying our technology to drug discovery became clear. We felt sorry for our current customers, but we also understood the desire to scale up more quickly in the industrial sector to benefit society, so we decided to focus on drug discovery and pharmaceutical manufacturing.
- Usami:
- That was also when we revisited our exit strategy, wasn't it? Initially, we were preparing for an IPO, getting an audit firm involved, and preparing disclosure documents in English. However, as the IPO market became more volatile, we started considering a form that wouldn't be affected by it. Around that time, various approaches, including capital alliances from multiple pharmaceutical companies, came in, and the deal with Moderna was settled.
- Suetsugu:
-
As the company that developed a COVID vaccine in a short period, the M&A discussions with Moderna were impressively swift and left a good impression. OriCiro Genomics has now changed its name to Moderna Enzymatics, and I am still involved as an external director. With Moderna's speed, I believe it won't be long before we can deliver medicines to patients using OriCiro's technology.
I personally plan to continue pursuing research in academia driven by curiosity. If unique technology emerges there, I'd like to return it to society, drawing on this experience. Some academics might be overly wary of investments from VCs. I can't generalize since I don't know other VCs, but at least UTEC respected me as a scientist and rolled up their sleeves with us. And above all, OriCiro Genomics' rapid growth was possible because of VC investment. I'd be delighted if our case could expand the options for academic researchers who want to make a societal impact.