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Epistem's story illustrates the value of a concentration of medical research in proximity to innovation agencies such as universities. Epistem was the brainchild of Professor Chris Potten and Dr Cath Booth. Chris was one of the fathers of stem cell technology and Cath had been attracted away from Cambridge to work in his lab at the Paterson Institute where, due to the adjacent Christie Hospital, the research could be heavily translational. The key thrust of the research was stem cell regulation of tissue turnover – entirely focused on adult epithelial cells in organs such as the colon. Companies involved in cancer therapy became interested in testing new drugs in the novel models developed through the research – and its profile meant that companies interested found it very easy to get in touch with the researchers. Following several collaborations while at the Paterson Institute, Epistem was spun out and a substantial body of contract research developed in the testing of new drugs, with the main focus the efficacy in protecting against the side effects of radiotherapy and chemotherapy treatments used in cancer. This contract research activity now generates over £3m per annum for Epistem. The contract business relocated to the University's Innovation Centre (UMIC) at the initiative of Chris and Cath, with the University business support staff helping to establish the company. In all five people migrated the existing business to UMIC with the enthusiastic support of their then customers. This contract research remains a core activity and is cash generating, which supports longer-term investments in its own products by the company. Epistem Pooling research and innovation talent opens door to medical breakthroughs 34 UNIVERSITY SPIN-OUT EpiStem's Novel Therapies division started its first research and development collaboration in 2009. This 'Regenerative Medicine' collaboration is with Swiss firm Novartis, to identify new drug targets and therapeutics across epithelial disease areas.

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