XenoTech Revels in Its Growing Pains

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ince his Ph.D. studies began in the late '70s, XenoTech founder, President and CEO Andrew Parkinson has been trying to uncover the myriad of ways the liver metabolizes drugs and other chemicals. In fact, XenoTech grew out of such research while Parkinson was a professor in the Department of Pharmacology, Toxicology and Therapeutics at the Kansas Univer­sity Medical Center (KUMC). While at KUMC, his research into cyto­chrome P450 (CYP) enzymes led to the development of pre-clinical tests, based on in vitro experiments with nontransplantable human liver, that can evaluate the safety of drugs un­der development by pharmaceutical companies.

Tests that XenoTech has devel­oped have revolutionized pre-clini­cal trials of drugs. In the past, pre-clinical testing could only be con­ducted in animals. As a result, ex­trapolation of the results to humans was fraught with difficulty and was often misleading. Thanks to im­proved technology for preparing and cryopreserving liver samples devel­oped by XenoTech scientists, human liver material is readily available for use. Metabolite patterns in animals can now be compared to those in hu­mans, early in the pre-clinical drug de­velopment process. This greatly aids in the choice of appropriate species for toxicology testing and minimizes unnecessary use of animals. XenoTech has also helped pioneer improvements in the technology of cryopreservation in which liver cells (hepatocytes) are frozen ex vivo.

Today, XenoTech's clients can perform multiple drug tests where an intact cellular system is required, thereby increasing the range and ver­satility of in vitro testing. The tests that XenoTech has developed are able not only to predict metabolism patterns in humans years before hu­man clinical trials are permitted, but can also be used to signal dangerous drug-drug interactions and provide insight into in vivo animal tumor for­mation. So valuable are these tests that many are now required by the FDA and other regulatory agencies to ensure the safety of drugs enter­ing clinical trials.

Parkinson founded XenoTech in 1994 and set up shop in the Biotech­nology Development Building, KUMC's business incubator located on campus. Within a year, XenoTech had expanded into the entire 6,500-­square-foot incubator. When XenoTech was established, Dr. Parkinson was still a faculty mem­ber at KUMC. The close proximity of the business incubator to his KUMC laboratories and office al­lowed him to wear the hats of both professor and entrepreneur. XenoTech also had access to afford­able laboratory space - which was in short supply in the Kansas City area - where it could conduct re­search in compliance with Good Laboratory Practice regulations, of­ten a challenging task in an academic setting. XenoTech quickly outgrew its KUMC facilities and began mak­ing plans to relocate to a new facility in a 20,000-square-foot laboratory and office building in Lenexa, Kan­sas. In late May of this year, XenoTech moved to its new location.

In less than a decade, XenoTech has established itself as a top-notch contract research laboratory, work­ing with most of the large national and international pharmaceutical firms involved in P450 drug testing. It has grown from a staff of six back in 1994 to 65 people in 2002, who Parkinson calls "the brightest, hard­working people one could imagine." The company has recruited all over the country, but most of its staff members have come from the Kan­sas City area. Its officers are: Chief Administrative Officer, Patricia St. Vincent; Chief Scientific Officer, Thomas N. Thompson; Chief Finan­cial Officer, Philip Marquardt; Chief Technology Officer, Timothy James; and Vice President of Sales & Mar­keting, David Steen.

Parkinson says that XenoTech's future plans are rather simple, "Now that we have the space to expand, we intend to take advantage of the many business opportunities that have pre­sented themselves over the past sev­eral years:" The company plans to expand and improve the existing product line and services to take ad­vantage of demand that is increasing at an average of 30 percent a year.

Out of the increased demands for XenoTech's products and services has grown a parallel need for expan­sion both in terms of staff and facili­ties. Not only does the company need to hire additional staff to meet these demands, but Parkinson indicated that it may not be long before the company will need to consider build­ing a second facility on land it owns adjacent to the current building - both good problems to have. •