We’ve all seen MRI (Magnetic Resonance Imaging) machines—those huge white tubes that take 3D images of a person’s insides. Calgary’s Nanalysis Scientific Corp. is becoming world-renowned for making MR instruments for industrial applications. Technically, these highly precise instruments are called Nuclear Magnetic Resonance (NMR) spectrometers, and (here comes some science talk) they observe the magnetic fields around atomic nuclei in order to perform the chemical analysis of substances.

Here's the twist that has made Nanalysis a global powerhouse: Instead of a multi-million-dollar behemoth that weighs, literally, tons (the next-generation 7T MRI Machine weighs 22 tons) and requires a dedicated room, Nanalysis has miniaturized the technology so that its NMRs are about the size of a toaster and light enough to be portable—at a price point in the tens of thousands. The size, weight and cost open the market to universities, labs, and small- and medium-sized businesses. Nanalysis's only competitor cannot match the compact size of the Nanalysis technology, a size that enables the product to be used in relatively small—even mobile—environments.

“The most difficult part was the magnet system,” says Sean Krakiwsky, Nanalysis CEO. “We're the best in the world at that. For certain applications, you don’t need big expensive superconducting magnet systems—you can use off-the-shelf industrial magnets. Add some tech layers and you can make a small system that delivers nuclear magnetic resonance just the same.”

Rather than designing for hospital and medical applications targeting humans, Nanalysis helps analysts identify and better understand substances key to industrial and commercial applications. For example, their instruments can detect whether something branded as extra virgin olive oil is the real thing or an inferior product diluted with soy oil, or whether fish oil supplements contain any problematic components, or if pills seized on the street are in fact illegal narcotics molecularly altered to escape detection. As pharmaceutical companies work precisely with atoms to develop new drugs, and as industrial chemists decide whether a chemical reaction is complete or what kind of impurities might be contained in a specific sample, Nanalysis instruments help guide their research, saving both money and time.

MADE IN CALGARY

A born-and-bred Calgarian from a long line of the same, Krakiwsky is determined to make Calgary the centre of Nanalysis’s export success. The market for the company’s products is global—Japan, India, and the USA are its major markets—and for that reason the company could theoretically be based anywhere in the world. Krakiwsky insists that it be in Calgary.

Nanalysis performs all its manufacturing in its Calgary facility, which houses some 60 employees (most of whom are University of Calgary or University of Alberta graduates)—including mathematicians, chemists and engineers, as well as teams dedicated to manufacturing. "We have several proprietary manufacturing processes that protect our intellectual property,” says Krakiwsky. “If PhDs in India or China who were smart enough to understand our patents took apart our instrument, they still wouldn’t be able to reverse-engineer our products unless they knew exactly what we were doing in our manufacturing facility. The protection of our process is a key to our overall business success.” He also believes that “Manufactured in Canada” is a strong selling point when pursuing a global clientele. “We have an international reputation for making high-quality products,” says Krakiwsky.

*Manufacturing facility in Calgary, Alberta*

Nanalysis recently had the opportunity to sell to a US company trading on NASDAQ. But key shareholders—all Albertans—didn’t want to sell. "Everyone agreed that our mission is to build a great Canadian success story,” says Krakiwsky. So instead of selling, the company began raising funds and building an ambitious mergers and acquisition strategy that included going public on the TSX Venture Exchange.

L’ACQUISITION

In February 2020, Nanalysis acquired Strasbourg-based RS2D, designers and builders of components for precision analytical instruments, including MRI and NMR devices. “This is a great acquisition in terms of complementary technology,” says Krakiwsky. “We’re the best at magnets, they’re the best at electronics for miniaturized products.” Krakiwsky is currently negotiating acquisition with another four companies. “We’re putting together complementary, unique companies and creating a critical-mass company more quickly than we could through organic growth.”

Nanalysis has made Strasbourg their European headquarters, and fully embraces the new French component of the company. “As Canadians, we speak French,” says Krakiwsky. “We believe in a full cultural blend with our French and European teammates.” Two of the RS2D leaders are now on the Nanalysis executive team and several of the Strasbourg cadre have moved to Calgary; several Calgary-based Nanalysis employees will join the 20-person team in Strasbourg. So far, the company’s most important market is the USA, but Nanalysis is keenly aware of opportunities in Europe—specifically in the UK, Germany, Netherlands, Italy and Switzerland.

GLOBAL FANBASE

Krakiwsky has travelled the world five times in the last seven years, going everywhere from rural India to Manhattan. He’s seen first-hand the excitement with which customers view Nanalysis products.

“I was in Seoul Korea several years ago given a demo with our tiny, very cute NMR instrument.

There were about 50 Korean scientists crowded around, and when I pressed the button to run their demo sample and they saw the results, they all said “Wowwwwwwwwww,” in unison. That’s when I knew we had a killer product! Since then we have sold our instrument in over 45 countries around the world.”

COLLABORATION WITH BOSCH

In October 2019, Nanalysis announced its collaboration with Robert Bosch GmbH (Bosch) to develop analyzers for the types of fuel that power large cargo ships. Refueling such ships costs millions of dollars, so there is a certain incentive to acquire the cheapest—and least environmentally acceptable—fuel. Poor quality oil can damage the engines of these ships, and at $50 million, those Rolls Royce engines are not cheap.

As of January 1, 2020, the International Maritime Organisation (IMO) imposed emission regulations that make it illegal for shipping vessels to use fuel with a sulphur content higher than 0.5 percent—a big change from the previous standard of 3.5 percent. Violators risk having their ships impounded. Nanalysis instruments will measure and log all fuel that goes into client cargo ship engines, as well as identify all the fuel components, both at port and in the engine room for engine damage logging. Such metrics protect shipowners and operators from audit, as they will be able to prove precisely the chemical composition of a ship's fuel.

FINGERPRINTING STREET DRUGS

*Mobile lab located in Lower Saxony, Germany*

In late 2019, Nanalysis entered into a collaboration agreement with the State Criminal Police Office of Lower Saxony in Germany to develop a mobile detector for the crime-scene identification and quantification of illegal street drugs. The Nanalysis NMR offers a number of advantages to drug investigators: it’s automated, which means that no special training will be required of police officers; it provides a non-destructive test; it helps preserve the legal chain of custody; and it does not require network access. Nanalysis is working with the Lower Saxony police on a database of NMR signatures that can “fingerprint” drugs despite efforts to disguise them through small alterations to their molecular structure.

OIL REFINERY SOLUTIONS

As a Calgary company, it is perhaps inevitable that Nanalysis should have an application in the petrochemical industry. In January 2020, Nanalysis entered into a collaboration agreement with Italian research group SARTAC, the technology arm of Italian multinational energy company Saras. Saras processes more than 15 million tonnes of crude oil per year, and Nanalysis will help perform analysis at refinery sites to increase efficiency and energy savings, and to further the company’s environmental protection initiatives.

A MONUMENTAL ACHIEVEMENT AT 100 MHZ

Nanalysis has just unveiled its 100 MHz product, which Krakiwsky calls “a monumental achievement.” The company has accomplished what very large companies have failed to do: create a magnetic field of spectroscopy quality at 2.35 Tesla to allow for NMR at 100 MHz (the current best is 80 MHz or 1.88T) from permanent magnets requiring no liquid helium or nitrogen. Magnets are extremely sensitive temperature sensors; Nanalysis’ ability to create the nominal 2.35 Tesla field and to maintain homogeneity despite inevitable micro-degree temperature fluctuations is, according to Krakiwsky, “what makes us a world-class industrial scientific instrumentation company.”

WHAT’S NEXT

Nanalysis has been making headlines for being the only non-Japanese winner (for “best new analytical product“) at the prestigious 2020 Nanotech Exhibition and Conference in Tokyo. As the new 100MHz device gains traction post-COVID, the company expects to find broad recognition across a variety of industries and is preparing for more action on the mergers and acquisitions front.

Krakiwsky believes that Nanalysis’ total addressable market opportunity is approximately $3 billion a year, thanks largely to the technology’s application to so many verticals. Penetration to the tune of hundreds of millions of dollars will require significant partnerships and what Krakiwsky calls “vertically branded products”--instead of marketing an all-purpose analyzer, the company will sell, for example, commercial “jet-fuel analyzers,” “fuel analyzers,” and “narcotics analyzers,” etc. “We’re anticipating explosive growth in the very near future,” he says.

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Nanalysis goes big—by going small