Sunday, January 22, 2012
Panel to discuss region's role in biotech
The latest from The Ticker blog
Enzymes that turn waste into energy.
Eyeglasses that focus themselves.
Pigs that provide tissue to treat human diseases.
Across the Roanoke and New River valleys, multinational corporations and locally grown startups are turning biotech research into products. And the sector has gotten even more attention in recent months, thanks to the launch of the Virginia Tech Carilion Research Institute.
What does the future hold?
Join The Roanoke Times and Cox Business on Wednesday morning for a roundtable discussion with our guest panelists, who will talk about the future of this sector in the region, from ideas to research to commercialization. What are the hottest segments likely to be in the next year? Where will startup money come from? Which ideas are ripe for commercialization?
We asked the panelists, who represent the realms of research, commercialization and financing, to set the stage for Wednesday's event by answering this question: In the next five years, what three things need to happen to cement this region's reputation as a player on the national biotech stage?
Here's what they said.
— Megan Schnabel
Sam English: founder and managing partner, CIE Partners; CEO and founder, Attention Point; vice president of pharmaceutical services, OcuCure Therapeutics
The region's reputation is directly related to the number of successful biomedical and biotech companies. Fortunately, we have had several recent successes that demonstrate the region's potential and capability. To parlay these successes into additional successes, we need to continue to develop a regional ecosystem that supports and encourages biomedical/biotech entrepreneurs.
1. Improve access to capital
Because successful biomedical/biotech companies require significant capital, we need to increase the amount and types of capital available locally to early-stage ventures. At later stages of development, these companies are more attractive to investments from outside the region. However, getting technologies and companies to that stage is a challenge. Possible strategies to address this include developing programs to prepare companies for investment, establishing formal and informal angel investor groups, encouraging and facilitating alternate funding sources such as SBIR grants or foundation funding, and establishing local investment funds.
2. Attract and retain talent
The leadership skills to build successful biomedical and biotech companies are essential. In particular, it is critical that we attract experienced management teams that can lead the commercialization of new ventures. The region's prior successes have resulted in local talent. However, to keep pace with the increasing number of business opportunities, additional talented management is needed. These experienced management teams are more easily able to attract the capital required.
3. Align innovation with market needs
The development and commercialization of biomedical/biotech products require the integration of multiple areas of expertise. Our region is fortunate to have biomedical innovations originating from multiple sectors (university research, health care professionals and private businesses). Each of these sectors would benefit from increased connections and collaborations locally. In particular, the commercial potential of translational research is increased when additional considerations are introduced early in the process. These considerations include such things as intellectual property, product development, commercialization plans and medical/clinical relevance.
Michael Friedlander: founding executive director, Virginia Tech Carilion Research Institute
1. The region should strive and invest to create a high profile national/international identity for its academic biomedical/health research enterprise - quality and critical mass.
Successful biomedical/biotechnology sites in the U.S. have strong academic research institutions with a major coordinated health science focus and strong connections to academically oriented health systems. Such arrangements provide recognition and talented personnel to take advantage of opportunities for basic research, academic/corporate pre-competitive partnerships, translation and commercialization. A stable, high-quality talent pool attracts investors, scientists including physician-scientists, technologists as well as federal, state, corporate and foundation financial support to a community and builds a critical mass of scholars, innovators and business talent.
2. The region should differentiate itself as a biomedical/health research and development hub in just a few specific areas - focus.
There are many outstanding biomedical/biotechnology research sites throughout the country, often with major academic, corporate and government support and strong track records of success. How does a relatively new kid on the block become a player? Don't just do what the rest are doing - innovate, build on strengths and opportunities, become known as a destination site for one or a small select set of areas. The area has great opportunities to utilize emerging talent and identity in brain science at all levels; the connection of engineering, computer science and informatics to health research and development; the integration of the rich health and medical records system that serves the particular population of the region to research and technology development to address the needs of the region (living laboratory), and bridging environmental health, agriculture and animal/human health.
3. The region should coordinate investment and build its shared infrastructure that serves the entire population but is a particular necessity for attracting the human and financial capital for the growth of the biomedical/biotechnology enterprise.
Communications infrastructure, reliable efficient transportation hub (air, rail, roads) to key locations, public education/community investment in STEMH (science, technology, engineering, mathematics and health sciences), celebration of the community's successes in biomedical/biotechnology research/development and education, financial incentives for biomedical/biotechnology enterprises/investors/entrepreneurs to locate in the region. Get the word out to the world: The Virginia Valleys are open for biomedical research and biotechnology development.
Robert Patzig: senior managing director and chief investment officer, Third Security
Biotechnology is a rapidly growing industry in Virginia. According to a study in 2011, the bioscience industry supported nearly 80,000 direct and indirect jobs in the commonwealth. Between 2001 and 2008, bioscience employment in Virginia grew by 23 percent, compared with 6 percent for all occupations statewide, and the number of bioscience companies in Virginia grew by 55 percent, compared with 18 percent for all companies statewide.
However, outside of Richmond, biotechnology is still a nascent industry within the commonwealth, and its maturation will take not years but a generation. In the course of the next five years, if we are to see this industry contribute to the economy of Southwest Virginia in a meaningful way, several items are of paramount importance.
First, we must foster a culture of entrepreneurialism within our region. We need people with expertise, vision and a sense of purpose who are willing to take the personal risk associated with starting new venture. We need capital that is willing to take on a significant risk of loss to fund innovation. We need the research dollars of our colleges and universities directed toward innovation in life sciences and medical technologies. And we need a skilled labor force, knowledgeable in biology, chemistry, biomedical engineering and related fields able to turn the entrepreneur's ideas into products. Without people, ideas and capital we will not see this industry make its home in our region.
As a community we need to reach out to our elected officials about the importance of supporting new industries. We need them to provide the incentives necessary to lure new and keep existing life science companies in our area. Industry supportive legislation like the "VA Innovation Investment Act," which offers capital gains exclusion on income earned from a qualified investment in an advanced technology company in Virginia, needs to be expanded.
Finally, we need continued successes from already established companies in the industry in our region. We need to see more companies like New River Pharmaceuticals, TechLab, InnoTech and Novozymes Biologicals, to name a few.
William Tyler: assistant professor, Virginia Tech Carilion Research Institute; chief science officer, Neurotrek Inc.
To grow biotechnology in the Roanoke area over the next five years, several critical support science and technology (S&T) areas must experience contaminant growth.
First, increased access to the area must occur through improvements to and expansion of domestic transportation services. Biotechnology hubs tend to emerge in regions that are easily accessible. Key investments should be made to expand the research and development of clean and renewable energy sources to further encourage expanded transportation services to the region, as well as to drive down operation costs of local businesses.
Second, to establish the region as a key player in the biotechnology industry, the recruitment, retention and training of S&T personnel must be a key focus. Expanding educational opportunities through local colleges and universities is pointing to growth in the right direction.
In addition to the primary research and clinical personnel, there must be a sufficient number of experienced legal and financial experts to help manage and guide biotechnology growth. For example, academics must work with industry to translate cutting-edge research into real-world applications; scientists must work with lawyers to protect, prosecute and defend IP; and physicians must work with scientists to convey unmet needs in their health care practices. The goal of bringing individuals together through industry roundtable panels and academic showcases should continue to be a goal of local scientific and business councils.
Related, there should be an increased effort to attract mature S&T companies to the area - startups and universities alone cannot burden the demands of major growth. From the community's perspective, expansions and improvements to lifestyle amenities (shopping, dining and entertainment) must serve to attract and retain leading S&T personnel to the region.
Third, a tangible vision for biotechnology growth must emerge. This vision must be one that aligns well with the objectives held by local business, health care, academic and government officials. The most powerful organizations must act unselfishly by making long-term investments in biotechnology while continuing to show a commitment to community growth even at the risk of short-term losses. In return, the community must back and actively engage in plans for city growth and expansion.
