NanoNovus

www.NanoNovus.com

2006-03-03T07:09:00.000-08:00

Effective March 1, 2006, my blog has been transferred to www.nanonovus.com.

The new site will focus primarily on investment-related activity and will serve as a compendium to my new book Investing in Nanotechnology: Think Small. Win Big.

The new site will require a quick registration and a passcode. Individuals who have purchased the book will find the code in the book.

If you have not purchased the book but would still like to access the site, I will be making the code available free-of-charge. If you are interested, simply email me at jack@nanoveritas.com and put the word "code" in the subject line. The code will be provided to you within 24 hours.

Jack Uldrich

Effective Immediately

2006-03-03T06:54:00.000-08:00

On March 1, I changed my blog to a new site to www.nanonovus.com. It can now be accessed:here .

The site requires a very quick registration and a passcode. Individuals who have purchased my latest book : Investing in Nanotechnology: Think Small. Win Big can find the code in the book.

Indivdiuals who have not purchased the book but would like to receive daily updates on the field can also receive a code. Simply email me at jack@nanoveritas.com and a code will be provided with 24 hours.

Uldrich Interview on Science & Society

2006-02-09T05:44:00.000-08:00

I was interviewed yesterday by David Lemberg on the radio program, Science & Society. The 20-minute interview is available here . The interview provides a quick overview of my new book, Investing in Nanotechnology: Think Small. Win Big.

Possible Nanotech IPO's

2006-02-09T05:27:00.000-08:00

If you're interested in reading about some nanotech companies that might go public in 2006, I encourage you to read this article of mine that appeared last week in The Motley Fool. It is entitled "Nanotech Baby Breakers on the Horizon?" and can be accesed: here .

Procter & Gamble: Less is More

2006-01-30T13:52:00.000-08:00

Based on a recent speech that Alan Lafley, CEO of Procter & Gamble, gave in Boston, it appears that P&G is poised to join the ranks of companies applying nanotechnology to its existing product line. I wrote a more in-depth article on the matter in today's Motley Fool. It is entitled "Procter & Gamble: Less is More" and can be accesed: here .

(Full disclosure: I do not own any stock in P&G).

Jack Uldrich

Why Intel Represents a Good Buy

2006-01-27T13:35:00.000-08:00

I think Intel (Nasdaq: INTC) represents an attractive buy at its current price. I explain in this article I wrote for The Motley Fool. It's entitled: Intel: Smaller is Better.

The company's stock price is now off almost 16% since the first of this year, but its long-term prospects for growth look promising. (Full disclosure: I own stock in Intel).

Nanotech Investing: A Primer

2006-01-24T11:55:00.000-08:00

In the months and years ahead, investors are likely to hear an increasing amount about the emerging field of nanotechnology. Much of the news will be exciting, fascinating and, potentially, quite profitable. Pundits and analysts alike will speak of nanotechnology’s ability to create everything from hundreds of cancer-curing drugs to materials a hundred times stronger than steel.

The press surrounding nanotechnology may, in fact, grow so great that some investors will be tempted to dismiss it as mere hype—akin to the second coming of the Internet boom/bust. That would be a mistake. The science behind nanotechnology is real and talk of it being the “next industrial revolution” is not off the mark.

To begin, however, it is useful to think of nanotechnology not as its own industry or commercial sector. Rather, it should be viewed it as a general purpose technology—like electricity or the Internet—that will change how business is done.

Therefore, investors looking to garner above average returns in the years ahead need to familiarize themselves with nanotechnology because it will impact almost every industrial sector including: chemicals and materials; equipment and instrumentation; electronics and semiconductors; energy, and the life sciences.

The Ultimate in Material Sciences

Nanotechnology is defined as the willful manipulation of atoms and molecules. One way to think of this is to consider a lump of coal and a diamond. Both are made of carbon atoms … but how those atoms are arranged matters greatly. The first is a cheap source of energy, while the other is suitable to be used as a wedding ring.

In the past, mankind simply had to accept materials as Mother Nature saw fit to produce them—be it in the form of bronze, iron, steel or silicon. What makes nanotechnology so unique is that researchers are now figuring out how to shift around atoms and molecules to make better or entirely new materials. Consider this, two private nanotechnology companies—Apollo Diamonds and Gemesis Corporation—are now manipulating carbon atoms to create two-carat diamonds for around $100.

A number of publicly-traded companies including Dow Chemical, Degussa, BASF and DuPont, as well as some small-cap companies, such as Nanophase and Oxonica, are also exploiting nanoscale materials on a more prosaic scale. Among some of the early products nanotechnology is enabling are: self-cleaning windows, stain-resistant pants, and scratch-resistant automobile frames.

These are hardly earth-shattering advances, but they are simply the tip of the proverbial iceberg. Researchers are also working to create shape-shifting materials and even self-healing materials.

From the perspective of the individual investor, it will be important to remember that while many of these nanomaterials are imbued with wonderful characteristics and properties, the benefits will generally accrue to the company incorporating the nanomaterials. Investors are, therefore, encouraged to focus less on who is making and supplying these materials and more of who is using them.

This is not to say that money won’t be made in this field, it is just that the profits are likely to go to those large producers who can achieve economies of scales in the production of these materials.

A few intriguing possibilities do exist but investors may have to wait a few years because some of the more interesting companies are privately-held. Carbon Nanotechnologies Inc. is manufacturing carbon nanotubes which are 100 times the strength of steel, but a fraction of the weight. Due to their extraordinary characteristics, they have a host of promising applications. Similarly, Aspen Aerogels is manufacturing a product called “frozen smoke” which is among the lightest known solids in the world and has magnificent thermal and acoustic properties. If both companies are successful in getting major manufacturers—such as plastic manufacturers or the home construction industry—to incorporate the nanomaterials into their products, the profits could be substantial.

The Early Winners

In 2006, it is estimated that more than $10 billion will be invested in nanotechnology research and development around the world. Much of this money will be spent on the equipment necessary to model, visualize and manipulate materials at the nanoscale.

Among the publicly-traded companies like to profit from this large scale investment are Symyx, Accelrys, FEI and Veeco. Symyx is a leader in the field of high throughput experimentation for the discovery of new materials. Essentially, the company’s technology speeds up the process for creating new materials for the chemical, electronics, and life sciences markets.

Accelrys, which like Symyx has licensing agreements with leading Fortune 100 corporations, is focused on the development of molecular modeling and software simulation. Specifically, its tools facilitate new product design and drug discovery for the life sciences industry.

In addition to creating tools to model the development of new materials, it will also be necessary to visualize and manipulate atoms and molecules. Among the companies making the equipment necessary to do this (i.e. scanning electron microscopes, atomic force microscopes, transmission electron microscopes, etc.), are FEI, Veeco and JEOL.

All of these companies are positioned for long-term growth because two huge industries—semiconductors and life sciences—are both scaling down to the molecular level. The semiconductor industry, which is already making circuits with transistors in the range of 65 nanometers, will continue to make tinier circuits and, as it does, it will be imperative that it has the equipment to operate at these ever-smaller levels.

The life sciences sector is experiencing much the same thing. The workings of the human body have long been known to operate at the nanoscale level (e.g. DNA, viruses, proteins, etc.) and if researchers are to fully understand and, ultimately, fix problems with the body, they will require tools and devices that can see and operate at this level. For instance, FEI’s 3-D electron microscope, because it can characterize and visualize viruses and DNA at the sub-atomic level, will be a useful tool in helping scientists understand the chemical basis for life and uncovering the mechanisms of disease.

A few private nanotechnology equipment companies bear close watching. On the semiconductor side, Molecular Imprints stands out because it has nanolithography technology that can help the semiconductor scale down to the 10 nanometer range. Arryx, a Chicago-based company, is developing something called holographic optical trapping technology that is capable of moving and manipulating cells, organelles, and molecules. And then there is NanoInk, also based in Chicago, which is perfecting a technique called Dip-Pen Nanolithography—a process that uses an atomic force microscope to write nanoscale patterns on substrates using atoms and molecules as the “ink.”

Small and Green: Nanotechnology & the Energy Sector

It has been estimated that within the next two decades the world’s energy needs will nearly triple. This pressure will cause the market to look at a variety of ways to improve existing energy supplies as well as look for new alternative energy sources. Which energy source(s) will win out in the commercial marketplace is difficult to predict. What is not difficult to predict, however, is whether nanotechnology will play a large role.

For example, the role catalysts play in the production of oil and natural gas has long been well understood. Less understood is how new nanoscale materials—because of their large surface-to-area ratio—can make for even more efficient catalysts. ChevronTexaco, ExxonMobil and Headwaters, Inc. are all investing heavily in nanotechnology to increase their yields. Specifically, Headwater is applying new nanocatalysts to the heavy oils in the tar sands of northern Canada in an effort to convert them into higher yield, environmentally-friendly, liquid fuels. Longer-term, one of its subsidiaries, NanoKinetic, is even exploring how nanotechnology can be exploited to liquefy coal.

Different nanomaterials may also be created to enhance the efficiency of fuel cell technology. One company working along these lines is NanoDynamics. The Buffalo, New York company has manufactured a new nanopowder that has been demonstrated to improve the efficiency of a solid oxide fuel cell. The device—about the size of a loaf of bread—can power everything from military gear on a battlefield to outdoor billboards.

It is even feasible that nanotechnology could change the energy equation by creating new nanomaterials manufactured to a standard high enough to safely store radioactive waste—thereby making nuclear power a more attractive option.

A fourth area where nanotechnology will play a large role is the development of solar cell technology. Konarka, a privately-held company located in Lowell, Massachusetts has developed titanium nanoparticles that can efficiently convert natural light and indoor light into electricity. When these nanoparticles are added to a flexible polymer, the possibilities are almost endless. By enabling the creation of thin, flexible solar cells that can be wrapped onto the roofs of homes and businesses all across the country, how America meets a large portion of its energy needs could be transformed. Konarka has publicly stated that it is pursuing this goal—as are two other nanotechnology companies: Nanosys and NanoSolar. The former is already partnering with Matsushita and expects to begin printing flexible solar cells as thin as wallpaper by 2007, while the latter is rapidly making progress with “self-assembling” solar cells. As fantastic as it sounds, these self-assembling nanoparticles might someday be able to be spray-painted directly onto walls.

With less than one percent of the world’s energy need being met by solar cells today, and the overall market for energy increasing, it is clear investors with an understanding of how nanotechnology can help meet this growing need can also profit handsomely in the process.

Keeping Moore’s Law Alive: Nanotechnology to the Rescue

For the past 40 years, the number of transistors crammed onto integrated circuits has doubled roughly every 18 months. In the world of semiconductors, this has come to be known as Moore’s Law—named after Gordon Moore, the founder of Intel, who famously forecast this phenomenon in 1965.

In recent years, a number of people have predicted the demise of the law as silicon—the basic building block of the computer revolution—has begun to run up against its physical limits. (As transistors are etched to ever-finer dimensions, they suffer “leak” as electrons migrate through the thinner material. The circuits, because they are more closely crammed together, also begin to run hotter—so hot, in fact, that they run the risk of eventually melting the silicon.)

It now appears that nanotechnology will keep Moore’s Law sailing along smoothly for at least the next 15 years. The semiconductor industry recently unveiled its updated International Technology Roadmap and announced that nanotechnology would be instrumental in its transition to a post-silicon era. New materials, heat sinks, carbon nanotubes and, eventually, molecular electronics are all likely to be part of the equation.

Initially, the winners are likely to be some pretty familiar names. IBM and Intel have announced startling progress in how new nanoscale materials can be manufactured to improve the flow the electrons in existing circuits. Both have also indicated that progress with carbon nanotubes is progressing to the stage where the one nanometer structures might be utilized as transistors. Perhaps the most exciting work, though, is being done by Hewlett-Packard in the field of molecular electronics. In 2005, the company announced that its researchers had successfully created electronic switches from single molecules—an advance that could lead to radically more powerful computers.

The field of nanoelectronics is host to a number of promising private start-ups, and a few of these are likely to go public within the next year or two. Molecular Imprints, Nanosys, NanoCoolers, and Nantero all bear watching.

What makes the above companies unique is that all are partnering with existing corporations. This is an important consideration because as fabulous as any nanotechnology company’s technology is, to be successful, they will need to partner with a major corporation to get their technology to the commercial marketplace.

To that end, Nanosys and NanoCoolers are partnering with Intel, in the field of nanowires and heat sinks; Molecular Imprints is supplying its equipment to Hewlett-Packard; while Nantero is working with LSI Logic to utilize its carbon nanotubes for a memory based product capable of storing massive amounts of data.

One other private company that bears close watching is Cambrios. This is because it is developing proteins that can bind to wide variety of different electronic, optical and magnetic materials. If successful, semiconductors, nanowires and scores of other small electrical and optical components won’t be manufactured in the traditional sense, they will be grown. The vast upside to such a disruptive technology is that the company won’t have to build a super expensive semiconductor fabrication plant (which today cost $3 billion) to build its product; it will simply grow them inexpensively in labs.

From Treatment to Prevention … to a Cure

As promising as such nanotechnology-enabled advances are, the field where it will ultimately have the greatest impact and the highest potential pay-off for individual investors is in the life sciences sector.

To get an indication of nanotechnology’s promise, consider that earlier this month, the Food and Drug Administration (FDA) fast-tracked for approval VivaGel, a topical microicide gel that can be applied as a preventative treatment against the sexual transmission of HIV. The gel is the first true application of a nanotechnology device in the biopharmaceutical field. Starpharma, the Australian company who is developing the product, is also focused on the development and application of other dendrimer nanotechnologies as drug delivery devices.

What makes dendrimers so unique is that they can be precisely manufactured with a number of different branches—each of which can be tailored to a specific size and be made to perform a different function. For instance, NanoBio, a private company in Ann Arbor, Michigan is working on creating dendrimers that can detect, diagnose and treat individual cancer cells.

While such nanoscale devices are still awaiting final approval, a number of other nanotechnology-enabled products have already reached the market. In January 2005, the FDA approved Abraxane. Made by American Pharmaceutical Products, the proprietary nanoparticle oncology drug binds to naturally occurring proteins and more effectively delivers the drug to its target. Because the nanoparticles are so small, they also have the benefit of being more solvent in the body. This means they require no toxic solvents and this, in turn, lessens the nasty side-effects often associated with cancer drugs.

A variety of other publicly-traded companies including Elan, Flamel, Novavax, Skyepharma, Nucryst and Immunicon are also developing nanoparticles to create new drugs and improve existing ones. With an estimated 60 percent of all blockbuster drugs expected to have their patents expire by the end of the decade, the possibility of employing such nanoparticles to help reformulate these drugs—and extend the patent—is of no small financial consequence.

The number of nanotechnology companies hitting the market is only going to grow in the years ahead. Last year, the U.S. government earmarked $144 million to develop nanotechnology applications to battle cancer. The director of the National Cancer Institute is so optimistic about nanotechnology’s potential that he has publicly stated nanotechnology has the potential to control a variety of cancers within a decade’s time.

By early indications, it appears that he may have been conservative in his projections. Nanosphere, a Chicago-based nanotech start-up, is developing a molecular testing system that is reported to be 1,000 times more sensitive than the systems on the market today. It is also easier to use, has a quicker turn-a-round time, and is capable of testing for more than one marker at a time. If successful, it will enable doctors (and maybe even patients themselves) to detect a variety of medical conditions at a very early stage.

Once detected, nanotechnology-based products and devices will then allow for more effective treatment. There is no shortage of promising nanotechnology-based products and companies. For instance, NanoSpectra Sciences is developing “nanoshell” particles capable of being absorbed by cancer cells. Once absorbed, these nanoparticles can then be treated with infrared light and heated to such a level that they will kill the cancer cell from the inside. Other companies like pSivida and iMedd are perfecting nanoscale devices that can release drug molecules at a slow, steady and sustained rate to targeted areas for extended periods of time.

Be it dendrimers, nanoshells, carbon nanotubes loaded with drug molecules, or some yet-to-be-developed nanotechnology-based treatment, the victory in the “war on cancer” is still a way off, but the road to victory is now becoming increasingly clear thanks to nanotechnology.

What’s an Individual Investor to Do?

The field of nanotechnology is so vast and is growing so quickly that keeping track of its advances—let alone trying to determine who is going to win—is an increasingly difficult endeavor.

The fact that a company has a promising nano-enabled technology or product will not be enough to guarantee success. At the end of the day which companies succeed will boil down to a number of other time-honored considerations like: good management, access to capital, key partnerships, and maybe even a little luck.

Sorting all of this out is a difficult, time-consuming and risky venture. There are three ways to approach this problem. The first is to find a fund dedicated to nanotechnology. As luck would have it, this past October, PowerShare unveiled the first Electronic-Traded Fund (EFT) for nanotechnology. PowerShare tracks an index of companies that are either developing nanotechnology-based solutions or, alternatively, utilize nanotechnology heavily in their end products. The fund is now up 10 percent since its inception but it may leave more aggressive investors searching for something more. That’s because it includes a number of large companies like IBM, Intel and GE—who due to their massive size—are unlikely to achieve extraordinary returns. More troublesome; is the fact that the fund also includes a few nanotechnology companies of questionable worth. They either lack solid management or don’t possess cutting-edge technology.

A second way to play the emerging nanotechnology market is to invest in either Harris & Harris or Arrowhead Research Corporation. Harris & Harris is a publicly-traded venture capital firm specializing in nanotechnology. To date, it has made sizeable investments in a number of nanotechnology’s most exciting private companies. Among the companies i which it has an equity stake include Molecular Imprints, Nanosys, Nantero, NanoMix, NanoOpto, Starfire Systems, Zia Lasers and NeoPhotonics.

Arrowhead Research has a different approach. It invests in promising nanotechnology research and development at university and federal laboratories, and then commercializes the most promising research. While much of this research is further away from the commercial marketplace than Harris & Harris’ investments, it does have the advantage of allowing Arrowhead to claim a larger (and often controlling) interest in the companies it starts.

At the present time, both would appear to be trading near their upper limits and investors are advised to tread carefully until additional news is forthcoming suggesting either company will be bringing products to the commercial marketplace in the near future.

A Final Word

That leaves investors with little option but to invest in individual nanotechnology companies. Luckily, there are literally dozens of well managed, publicly-traded companies working on exciting nanotechnology-based applications. The nanotechnology revolution is coming and the time to become familiar with the field and its leading players is now. Because whether it is the creation of diamond-like or self-healing materials; thin, flexible solar cells; self-assembling computer circuits; or nanoscale cancer-killing treatments, the modern industrial economy is slated for massive change due to nanotechnology and the individual investor with enough foresight to invest in the companies ushering in these advances stands to be well rewarded.

Jack Uldrich is a world renowned speaker on the topic of nanotechnology and the author of the forthcoming book, Investing in Nanotechnology: Think Small, Win Big (Adams Media), which is to be released in March and profiles over 100 leading nanotechnology companies. He is also the author of The Next Big Thing is Really Small: How Nanotechnology Will Change the Future of Your Business. He can be reached at jack@nanoveritas.com.

NanoNovus: January 13, 2006

2006-01-13T14:48:00.000-08:00

Today was a big day in the field of nanotech investing. Elan announced a licensing agreement with EntreMed that grants the company the right to utilize Elan's (NYSE: ELN) proprietary NanoCrystal technology. I have long been bullish on this technology and it is why I recommended Elan in this posting after it dropped to around $3 a share this past spring. (Today, it is trading around $15 and I think it'll continue to go higher in the year ahead).

In a separate item, Arrowhead Research, a company which I wrote about this fall in a Motley Fool article, announced it had sold over 5.5 million shares of its stock to York Capital Management and Knott Partners. The deal allowed the company to purchase shares of Arrowhead (Nasdaq: ARWR) for $3.50 -- a healthy discount of over 20% to today's current asking price of $4.52 a share. This tells me that the stock price will probably drop to near this level in the very near future. The deal also grants York and Knott warrants to pick up an aditional 1.4 milion for a little over $5 a share in the future. My personal opinion is that this offers little solace for current investors. I reiterate my view that ARWR's stock is inflated at today's price, and investors should wait until the price drops back down to around the $3-a-share level before considering an investment.

The third bit of news was that the QinetiQ Group -- which owns Qinetiq Nanomaterials -- is expected to go public on the London trading market next month. I am currently agnostic on whether Qinetiq is a good investment. From the perspective of a nanotechnology investment, however, I would encourage investors to stay away for the time being. Qinetiq Nanomaterials makes up only a small portion of the company's overall value and, as such, in good conscience I can't classify it as a legitimate nanotech investment. (Investors looking to diversify their portfolio's into both nanomaterials and foreign markets might, however, want to consider an investment in Oxonica.)

(Full disclosure: I own stock in Elan but none of the other companies mentioned in this article).

Jack Uldrich

Nanotech Investing Will Require Some Patience

2006-01-09T12:52:00.000-08:00

Nano Gets Fast Tracked

2006-01-08T18:22:00.000-08:00

I have long been very bullish on Starpharma's long-term prospects and today the company announced yet another round of good news that provided me yet another reason to remain bullish. Company officials announced it's investigational new drug, VivaGel, has been granted "Fast Track" status by the Food and Drug Administration.

In the press release the company explains the significance of this event. Essentially, it is a vote of confidence regarding the potential effectiveness of VivaGel, which is a dendrimer-based vaginal mirocibe gel drug designed to prevent the transmission of HIV. The net effect is that it could ultimately speed up the time it takes for the FDA to render final approval for the drug.

Be advised that the "Fast Track" stamp of approval doesn't guarantee that the treatment will necessarily receive final approval, but apparently the FDA sees enough promise in the treatment to give it this priority status.

This news, combined with the $20 million grant the company received from the National Institute of Health this past fall, is just another feather in the company's cap and why I think risk-tolerant investors should consider investing in Starpharma. (Full disclosure: I own stock in Starpharma.)

Related Links:
More News on pSivida & Starpharma
Dendritic Nanotechnologies
Still Bullish on pSivida
pSivida: Down Under Company has Big Upside Potential
Starpharma "Nano" star on the rise?

2005-12-22T14:16:00.000-08:00

Here's a link to my latest article in The Motley Fool. It's entitled: DuPont: The Truth Helps Nanotech. It reviews how DuPont is applying the painful lessons it learned from its recent run-in with the EPA regarding PFOC (i.e. the $16 million fine) to nanotechnology. It is just one of the reasons I'm bullish on DuPont's long-term prospects. (Full Disclosure: I don't own any DuPont stock at this time.)

A Response to Altair Criticisms

2005-12-21T15:00:00.000-08:00

In today's Motley Fool, I had an article entitled: Another Press Release from Altair.

In response, I have received a few emails criticizing me for being unduly harsh on Altair, bashing the stock for my own financial stake, or being just plain stupid.

Before, I address these criticisms individually, I encourage you to read the article and judge for yourself.

To begin, the reason I have been so negative on Altair is because I believe in the potential of nanotechnology. As a result, I am confident that a number of nanotechnology-related companies -- as well as investors -- are going to do quite well. As with the Dot.Com era, however, there is going to be a lot of hype surrounding the field. I am of the opinion that this hype is, in general, a bad thing. As such, when I feel companies are unnecessarily or unrealisticly touting nanotech's benefits to an unsuspecting public, I intend to call them on it. That is because I think such dubious companies have the potential to give the whole nanotech industry (such as it is) a black eye.

As to the second criticism, I want to make it crystal clear that I neither own Altair stock, nor do I short the stock.

As for the third and final criticism (i.e. my intelligence), I'll willfully admit that they may have a point ... but it has nothing to do with my position on Altair. In fact, one of my very first postings on this blog was a posting critical of an earlier article in The Motley Fool about Altair. I encourage you to read it here. If nothing else, I have been consistent in my criticism of Altair. And, more to the point, I will remain critical until the company actually produces a real product and signs up some real customers.

If and when they do that, I'll happily write an article to that effect.

Sincerely,

Jack Uldrich

Related Links:
Toshiba vs Altair
Altair: Fooling the Fools
Is Altair all Hot Air?

Nano Greases the Skids

2005-12-09T13:34:00.000-08:00

Here's a link to my latest article in The Motley Fool. It's entitled: Nano Greases the Skids for Intel. It reviews Intel's latest forays into the field of material science. I expect developments in this area to yield significant improvements in a variety of Intel's next generation products.

I don't mention this in the article but the company Intel is collaborating with in this field is Qinetiq. It is a company I profile in my forthcoming book,Investing in Nanotechnology: Think Small, Win Big, and one I encourage investors to put on their radar screens.

(Full disclosure: I own stock in Intel at this time but not Qinetiq.)

Jack Uldrich

The FDA's Softening Skin

2005-12-05T13:22:00.000-08:00

This past Friday, an FDA advisory panel determined that an experimental skin patch designed to treat children with attention deficit hyperactivity disorder (ADHD) was safe and effective. The ruling burned some investors because, the day before, a key FDA staffer publicly suggested said that the patch was too risky.

This type of hyper-activity leads me to wonder if perhaps the FDA shouldn’t conduct some further testing of the patch on its own staff.

In all seriousness, though, the FDA usually follows the advice of its advisory panels and the patch, which will deliver a generic version of Ritalin, will likely be formally approved toward the end of this month. This is good news for the manufacturer the patch, Noven Pharmaceutical (Nasdaq: NOVN) and Britain-based Shire Pharmaceuticals Group (L: SHP).

From a broader perspective, however, the ruling should serve as a warning sign to investors hoping to profit from the advancement of alternative drug delivery systems. Drug delivery is now one of the hottest areas in pharmaceutical research and development, and it has been estimated that the demand for new systems could grow 10% annually for the next few years.

Controlled-released pills will likely remain the dominant method for delivering drugs to their target for the foreseeable future, but, as someone who follows the advances in nanotechnology quite closely -- and understands its potential to make implants, patches and inhalers far more effective -- I am both pleased and unnerved at the FDA’s recent reversal.

I am pleased because the FDA is obviously open to the unique benefits that these new alternatives can provide. For instance, they give patients who dislike or find taking pills to be unpleasant a second option; or, as in the case of a patch, they allow the drug to be quickly removed if the drug’s adverse side-effects prove to be too discomforting.

Other nanoscale drug delivery systems will offer additional benefits. Unfortunately,
I am not confident the staff at the FDA understands enough about these new technologies to make informed decisions about the myriad of devices which are likely to require approval in the years ahead.

As a result, I think investors can expect to be jerked around by an FDA staff which is uncomfortable in its attempt to quantify the risks and benefits of these new systems.

Therefore, while the FDA has seemingly softened its skin with regard to ADHD patch, I advise investors to develop a thick skin and learn to control their emotions in response to future FDA decisions. My guess is that we will be seeing more -- and not fewer -- such reversals in the future.

Jack Uldrich

P.S. I don't own any stock in the companies mentioned in this article.

IBM: A Very Small Bright Light

2005-11-29T12:05:00.001-08:00

Here's my latest article in The Motley Fool. It's entitled: IBM: A Very Small Bright Light. It reviews IBM latest breakthrough in carbon nanotube technology. I expect the development to lead to a variety of new products for IBM in the areas of high performance computers, telecommunication devices and lighting.

(Full disclosure: I own stock in IBM.)

Jack Uldrich

Nanotechnology and the Kitchen & Bath of Tomorrow

2005-11-17T16:57:00.000-08:00

The following article was written by me for the National Kitchen and Bath Association in advance of its 2006 annual conference in 2006.

An article on how the emerging field of nanotechnology will affect the future of kitchen and bath design might lead a person to conjure up futuristic imagines of Jetson-like rooms where refrigerators communicate wirelessly with sensor-embedded milk cartons and then transmit that information to an all-knowing computer which determines if it is necessary to order another carton from the store that offers the lowest price.

Such a future is, in fact, technologically feasible. It is not, however, likely to occur anytime soon. The future of kitchens and baths is, perhaps unfortunately, going to be a little less sexy. This is not to say, however, that it will be any less exciting for those who make their living designing, supplying or building these rooms.

To begin, it is useful to think of nanotechnology not as a specific technology but rather as a broad-based enabling technology that will affect many things. In this way, nanotechnology is comparable to electricity or plastics. And just as electricity and plastics allowed the modern refrigerator to replace the bulky, old wooden ice-boxes of yesteryear, so too will nanotechnology lead to similar radical advances in tomorrow’s homes.

The first great wave of change—and one which is already well underway—is occurring in how nanotechnology is affecting the field of material sciences. Materials are a decidedly boring topic but because almost every item in a kitchen or bathroom is made out of a material that has been uniquely selected for an inherent characteristic—be it aesthetic or functionality—it is important to understand that nanotechnology will allow future designers to dispense with the age-old question of form versus function. In short, designers will figure out what they want a material to do first and will then build it to those desired specifications.
For instance, how would various items be redesigned if one could find an inexpensive material that had the durability, look and feel of a ceramic but wouldn’t chip or break? What if you wanted a sink or oven that was self-cleaning and heat resistant? Or what if you wanted a refrigerator with anti-bacterial properties or a shower that was resistant to mildew? Well, all of these materials are already on the market thanks, in large part, to nanotechnology.

These advances are, however, just the tip of the proverbial iceberg. Mid-term, a host of other nanomaterials will find their way to the commercial marketplace and lead to even more profound changes. Among these new nanomaterials are aerogels—super lightweight materials, also known as “frozen smoke”—that are able to reduce insulation thickness by 50-600 percent and will be used in appliances, windows and walls and will lead to significant new design opportunities.

Another nanotechnology-enabled market on the near-term horizon is solid-state refrigeration. One company working on this technology is NanoCoolers of Austin, Texas. Using a tiny electromagnetic pump that circulates a nontoxic liquid metal, it is developing a method to refrigerate devices without employing any mechanical moving parts. This advance is expected to lead to drastically smaller refrigerators and will free up a considerable amount of space in the kitchen of tomorrow.

Nanotechnology is also making serious inroads is in the area of water and pollution filtration. By taking advantage of the unique characteristics of nanoparticles, new materials are being developed to act as hyper-efficient catalysts to disinfect water. New nano-filters are also being developed to effectively filter out nearly 100 percent of the contaminants that affect even today’s most polluted water supplies. Both advances will affect how much water is used—and re-used—to power tomorrow’s bath and kitchen operations.

A third area where nanotechnology is slated to influence kitchens and baths is in the field of lighting. Specifically, new advances in nanotechnology portend the day of efficient, inexpensive light-emitting diodes. Such LEDs are already making their way to the market but what will make the next generation of nano-enabled LEDs so unique will be their ability to be incorporated into flexible plastics. Imagine how rooms and appliances can be redesigned if the end-user can place the precise amount of lighting exactly where ever he wants it.

Lastly, in the neat-term, nanotechnology is going to affect how future homes and appliances are powered. No less than three companies are now working on applying nanotechnology to the development of flexible solar cells. These solar cells are expected to be so thin they can be printed (and installed) like wallpaper, and be so efficient they operate off the ambient lighting in a room. The advent of these and other alternative energy technologies suggests that the era of distributed energy—energy that does not rely on today’s existing electrical grid—is just around the corner.

Beyond these advances are the development of “metal rubber,” which, as the name implies, combines the strength of metal with the flexibility of rubber. Other companies are working on materials that can change color on demand, and still others, including Boeing and Ford, are experimenting with shape-shifting materials.
And while even these advances may not give tomorrow’s kitchens and baths a Jetson-like feel quite yet, they will change how the kitchens and bathrooms of the future are designed, used and thought of. Moreover, they will pave the way for some the more futuristic technologies like pervasive computing, embedded sensors, “spray-on” solar cells and even self-healing materials.

Jack Uldrich is the author of The Next Big Thing is Really Small: How Nanotechnology Will Change the Future of Your Business. He will address these and many other advances in greater detail at the NKBA Annual conference in Chicago in March 2006.

The Next Big "Little" Market

2005-11-16T15:28:00.000-08:00

Here's my latest article in The Motley Fool. It's entitled: The Next Big "Little" Market. It reviews Accelrys' (Nasdaq: ACCL) progress -- a company I recommended six months ago. It has appreciated 40% since that time and I expect it to go even higher.

As always, however, do your own due diligence. (Full disclosure: I own stock in Accelrys.)

Jack Uldrich

Put Arrowhead Research on Your Nano Radar Screen

2005-10-14T16:48:00.000-07:00

Here's my latest article in The Motley Fool. It's entitled:A TINY Alternative in Nanotech. It reviews Arrowhead Research's business model and I think the company offers a viable investment alternative/addition for those investors who are also comfortable with Harris & Harris.

Jack Uldrich

Invitrogen's Future is "Nano"Crystal Clear

2005-10-12T14:51:00.000-07:00

Invitrogen (Nasdaq: IVGN) announced last week that it was acquiring Quantum Dot Corporation and BioPixels. The two deals, whose terms have yet to be disclosed, should work together to strengthen the company’s position as a leader in the field of advanced labeling and detection technologies for the life sciences and pave the way for further strategic alliances with companies like Agilent (NYSE:A) and Applera (NYSE:ABI).

Invitrogen is already a major player in the drug discovery product market and the two deals will facilitate the creation of new innovative products that allow researchers to better visualize and understand cellular processes. For instance, quantum dots -- semiconductoring nanocrystals -- could permit the “bar-coding” of both DNA strands and cellular structures and help researchers monitor the reactions of cells to certain drugs or viruses.

Together with BioPixels’ technology, which provides novel coatings for semi-conducting nanocrystals, these quantum dots could help Invitrogen create smaller, brighter and lower toxicity products. This, in turn, would allow detection technologies to remain in the body significantly longer than today’s state-of-the-art technology. Such improvements portend earlier detection from everything from heart disease and diabetes to cancer.

In the same press release, it was announced that Invitrogen had also signed an exclusive licensing agreement with the Georgia Tech Research Center to commercialize the university’s novel “nanocluster” technology. It has been suggested that this technology may someday permit single molecule detection. If true, that would make it a very valuable tool for the global war on terrorism and open up another sizeable market to Invitrogen.

The combination of this agreement, together with its two new acquisitions, warrants Invitrogen’s classification as a nanotechnology company. Moreover, the strength of Quantum Dots Corporation’s intellectual property -- which has long been considered to have one of the nanotechnology sectors more impressive IP portfolio’s -- suggests that the company is well positioned for future growth.

In 2003, Invitrogen bought another promising nanotechnology company -- Genicon Sciences -- on the cheap and used its nanoscale particles to bolster its gene expression business line. I suspect that while the terms of the Quantum Dot Corporation and BioPixels deals may end up being much more costly, Invitrogen will be able to similarly leverage the two companies’ technology into a competitive advantage.

Invitrogen has had a nice run since 2003 and with acquisitions like Quantum Dot and BioPixels, its future remains “nano” crystal clear.

One Small Step for Ford & Boeing

2005-10-10T19:03:00.000-07:00

In today's Motley Fool I had an article published entitled: One Small Step for Ford and Boeing. It discusses the two companies plans -- in conjunction with Northwestern University -- to pursue nanotechnology research and development. It is my opinion that while the deal is fairly small (especially for two companies like Ford and Boeing), it is the kind of deal that can help keep the two automotive and aerospace giants competitive long into the future.

Jack Uldrich

More on pSivida and Starpharma

2005-10-04T14:56:00.000-07:00

In today's Motley Fool, I had an article published entitled: Innovation Down Under. I have long been bullish on both pSivida and Starpharma and encourage readers to read the article and see the related links section below. I especially encourage would-be investors to read the first link. Starpharma owns approximately 30 percent of Dendritic Nanotechnologies and the company is working on some very innovatiative things.

Jack Uldrich

Related Links:
Dendritic Nanotechnologies
Still Bullish on pSivida
pSivida: Down Under Company has Big Upside Potential
Starpharma "Nano" star on the rise?
Elan Good News for Nanotech Investors?

Corporate partnerships are key, Part II

2005-09-27T10:28:00.000-07:00

In today's Motley Fool I had an article published entitled: A Ray of Hope for Flamel. Although I am a shareholder in Flamel, I am not overly optimistic about its future prospects for growth. About the only thing that will cause me to become more bullish is an announcement that a major pharmaceutical company has agreed to partner with Flamel in its use of Flamel's Medusa technology. The company's recent announcement that its technology has demonstrated positive results means very little.

My point -- and I can't stress this enough to would-be investors -- is that for the majority of nanotechnology companies partnerships are more important than technology. They are even more important than having a viable product.

Jack Uldrich

Related Links:
Corporate partnerships are key

Corporate partnerships are key

2005-09-22T11:27:00.000-07:00

In today's Motley Fool I had an article published entitled: TINY Magnifies its Hunt. It is primarily about Harris & Harris -- the publicly traded venture capital firm specializing in nanotechnology -- but it highlights two of its portfolio companies -- Molecular Imprints and Kereos.

In addition to their technology, what I like about both companies is the fact that they are already partnering with major corporations. In Molecular Imprints case, it is working with Hewlett-Packard and Motorola; and Keroes is working with Dow Chemical and Bristol-Myers Squibb.

I like such relationships because too many nanotech start-ups fall prey to the belief that their technology will be enough to gain them marketplace acceptance. Unfortunately, this is rarely the case. Establishing a foothold in the commercial marketplace is difficult even for established companies and it can be down-right nasty for small start-ups. One of the best ways to get around this reality is to establish relationships with those major corporations who are already working in the field.

Such partnerships won't necessarily guarantee profitably or success ... but it puts those companies that do have partnerships light years ahead of those that don't have any.

Jack Uldrich

Not sexy, but profitable

2005-09-12T13:56:00.000-07:00

In today's Motley Fool I had an article published entitled: Nanotech's Promise Hits the Pedal. It is primarily about Accelrys but it reiterates a point I have long been making--the first companies to make money in the field are not necessarily going to be those working on disruptive technologies, they are going to be those doing more more mundane things.

Improving glass, plastic and other materials might not sound very sexy but -- at least in the short run -- companies producing such advances will make for better investments.

Jack Uldrich

A Response to Liquid Lounge

2005-08-25T08:29:00.000-07:00

In yesterday's Motley Fool there was an excellent article entitled: Liquid Lounge that offered a thoughtful and well-reasoned critique rebutting my analysis of Harris & Harris.

Although, I disagree with the author's assessment, I encourage anyone considering an investment in Harris & Harris to read it!

What the author doesn't take into consideration in his analysis is the potential value of Molecular Imprints, Nanosys, Nantero, Starfire System, Cambrios Technology and Zia Laser. Of course this "potential" doesn't lend itself to the quantative analysis ... and this is precisely what makes Harris & Harris so hard to price.

At the present time, I don't own any shares of Harris and Harris but if it remains in the neighborhood of $11 a share I am considering buying some after the expiration of the mandated 10-day waiting period I must abide by when I write an article about a specific stock for the Motley Fool.

Jack Uldrich

Related Links:
Invest with the CIA
Is TINY Sinking or Diving for Pearls
TINY's Big Potential