Summer 2008
Ohio ranked 4th in overall biotechnology strength
Business Facilities Magazine analyzed activity and funding in all 50 states
In Business Facilities Magazine’s recently released 2008 Biotechnology Strength Report, Ohio is ranked fourth among all states. The report can be viewed at www.businessfacilities.com/bf_08_07_cover.php.
The publication’s ranking criteria included state R&D funding and venture capital investments, concentrated occupational employment in biotech, bioscience-targeted tax exemptions, number of biotech facilities, biotech patents generated, university grant funding, and bioscience higher education degrees, among other factors. Business Facilities uses the terms biotechnology and bioscience interchangeably.
A point scale was applied, according to the report’s authors, giving special credit to states that “walked the walk, as well as talked the talk,” when it came to funding biotech initiatives. States that actually invested in biotech facilities and/or had the highest employment concentration in more than one biotech subsector were rewarded with additional points.
At the top of the rankings Pennsylvania edged out California and Massachusetts, which tied for second place. Close behind, Ohio and Texas accumulated the same amount of points for fourth.
The report’s authors concluded that “every state that placed in the top 10 of this year's ranking should be considered a biotechnology leader.”
“Obviously we agree with that opinion,” said BioOhio President & CEO Tony Dennis. BioOhio is the state’s bioscience development and membership organization charged with advancing Ohio’s bioscience impact locally and globally.
“We’ve known for some time that Ohio’s bioscience industry, when comprehensively viewed, is robust and growing exponentially every year.”
“Our most recent Ohio Bioscience Growth Report, published last winter, cites more than 800 bioscience-related organizations operating in the state, and from 2004 to 2007, an average of 55 new bioscience companies began operation within our borders each year,” he said.
Dennis also noted a venture capital report published by BioEnterprise, a BioOhio regional affiliate in Cleveland. According to the Midwest Health Care Venture Investment Report, Ohio healthcare-related companies attracted $296 million in 2007, tied with Minnesota for most in the Midwest.
Business Facilities adjusted their rankings methodology since last year’s report to reflect the diversity found in state bioscience-focused initiatives. Using government statistics and the latest State Bioscience Initiatives Report from the Biotechnology Industry Organization (BIO) and Battelle, as a starting point, they identified more than 20 key criteria that have been applied to rank overall biotechnology strength.
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BioOhio’s web site gets makeover
BioOhio has redesigned its web site to highlight key focus areas and more effectively communicate information on Ohio’s growing bioscience community.
Launched July 18, the redesigned web site emphasizes BioOhio’s concentration on company launches, capital formation, business recruitment, workforce development and deployment, and community building. The new design also more prominently features news and events sections, including a newsticker that continuously scrolls recent headlines related to Ohio bioscience business and research.
BioOhio’s founding members gain more exposure on the new site. Images from the companies and universities adorn most of the pages, including a rotation of images on the home page. And all BioOhio members will enjoy additional exclusive content and web tools, including a desktop networking forum and an area to share recent press releases.
“We’ve determined that an overwhelming majority of the information we provide is accessed via our web site,” said Matt Schutte, BioOhio’s director of corporate communications. “Our goal is to continuously add content to what will be the repository for information on bioscience business activity in Ohio.”
While much of the content is developed by BioOhio, the web site also contains dozens of links to other resources and organizations in the state.
Schutte added that podcasts, blogs, and video are near-term enhancements slated for later this year. BioOhio’s Ohio Bioscience Resource Directory, which features profiles and contact information on Ohio’s bioscience-related firms, also is undergoing a facelift and minor upgrades to functionality.
The current BioOhio web site consistently attracts 3,000 to 4,000 unique visitors per month. Schutte expects the new functionality and user-friendly interface will increase traffic by 50% within a few months of launch.
BioOhio began working with Columbus-based Reflex Design & Technology on the redesign in February. Production work began in May.
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BioOhio Government Affairs Update
Strickland Administration makes big push for bioscience
Written by Colby & Company
Economic Stimulus Package (Jobs Bill)
Gov. Ted Strickland’s economic stimulus and jobs bill (HB 554) was signed into law and contains $100 million biomedical funding over three years to encourage the innovation, development, and commercialization of biomedical products. The Governor’s bill received strong bipartisan support from House Speaker Jon Husted and Senate President Bill Harris.
BioOhio President & CEO Tony Dennis actively supported the Administration’s proposal and testified in support in the House Appropriations Committee. Additionally, BioOhio Board member Peter Kleinhenz, managing partner of CID Equity, testified in support of the stimulus package before the Senate Finance Committee.
The Ohio Department of Development will convene stakeholder meetings in July and August to solicit input on ideas and guidelines for the distribution of the $100 million for biomedical funding and $50 million for bioproduct development. BioOhio is actively working with ODOD and the Administration on developing ideas for distribution and will keep our members updated on funding opportunities.
Stem Cell Legislation
Gov. Strickland vetoed a provision in HB 554 that would have banned and criminalized embryonic stem cell research in Ohio. BioOhio, patient groups and Ohio’s academic institutions opposed the prohibition and supported the Governor’s veto. BioOhio opposes reproductive cloning, but expressed concern that the language in the jobs bill would ban all therapeutic cloning.
In testimony before the Senate Judiciary Committee on Senate Bill 174, a different bill to ban embryonic stem cell research in Ohio, BioOhio President & CEO Tony Dennis said, “In an economy where we must support growth industries that provide Ohioans employment opportunities, it is imperative that we protect the ability of our academic research institutions and bioscience companies to conduct research.” BioOhio will continue to monitor the stem cell issue and work with legislators to craft responsible legislation.
Cancer Clinical Trials
In May, Governor Strickland signed SB 186, sponsored by state Sen. Steve Stivers (R-Columbus.) The Stivers bill prohibits health insurers from denying coverage for routine patient care administered as part of a cancer clinical trial. Tony Dennis testified in support of this legislation, which was initiated by OSU’s James Cancer Center.
Federal Update
R&D/Alternative Minimum Tax (AMT) Provision
BioOhio supported a provision in the U.S. Senate within pending housing and stimulus legislation to incentivize new capital investments by companies that cannot currently benefit from the use of bonus depreciation. Specifically, this provision would permit companies to utilize pre-2006 accumulated R&D or AMT credits based on the company’s new capital investments in 2008. After the Senate passes the legislation, it will be sent to the House.
SBIR
In April Congress overwhelmingly passed (368-43) a bill that allows small biotech companies that are majority-owned by VC firms to compete for SBIR grants. The House bill stipulated that large companies could not participate in the SBIR program and ensured that no single investor could control the board of the small business. BioOhio supported the bill and will advocate for its passage in the Senate.
Follow-on Biologics (FOBs)
The Congressional Budget Office (CBO) released a fiscal impact report of the Senate FOB legislation that was passed in 2007. CBO found modest potential savings. Follow-on biologics legislation will not likely be a top priority for Congress this year. BioOhio is encouraging Members of Congress to co-sponsor either the Eshoo/Barton or Inslee bills, both of which are deemed pro-patient, pro-innovation FOB bills.
Import/Drug Safety Bill
The Senate HELP Committee and the House Energy & Commerce Committee policy staff have been working on import/drug safety legislation. The intent of this legislation is to ensure that foreign manufactured products and ingredients in pharmaceutical, healthcare and food products, which are regulated by the FDA, are safe and effective.
This bill will likely establish new fees to support the FDA in their efforts to regulate foreign facilities. BioOhio is working to ensure any user fees imposed on companies will be used for the sole purpose of inspecting their facilities.
Some ideas on the table include: establishing a new recall authority for the FDA; enacting civil monetary penalties for failure to pass inspection; country of origin labeling; and new testing and certification requirement that all products have been tested by the FDA. BioOhio opposes country-of-origin labeling and will work to make sure the civil monetary penalties apply to a section of the bill rather then the entire Food, Drug & Cosmetic Act, and that the new testing will work for complex drugs like biologics.
BioOhio is primarily concerned with how the legislation defines contamination. The elements that classify contamination in small molecule drugs could also be the components that make a biologic effective.
Patent Reform
BioOhio continues to be focus on patent reform by supporting paid grassroots efforts, attending fly-ins to D.C., and supporting countless other outreach activities. It does not appear patent reform legislation will pass the Senate this year. BioOhio will continue to advocate against the bill in its current form.
Appropriations
The House supplemental appropriation for fiscal year ’08 contains an additional $150 million for FDA and $150 million for NIH. The Senate has not yet voted on this bill. Energy & Water has also passed in full committee and includes $250 million for biomass and biorefineries. Additionally it includes $94 million for biofuels research. Labor H includes a $1.2 billion increase, almost 4% for NIH, $275 million for BARDA, and $448 million for pandemic influenza. Agriculture Appropriations includes a $326 million increase for FDA (subject to change). Homeland Security passed in full committee and includes the same importation language as in the past 2 years but includes a biologics exemption.
Senate
Labor H has passed the full committee and includes a $1.1 billion increase for NIH, $175 million for BARDA and we are waiting to hear about the appropriations for pandemic influenza.
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The Return of the Regulatory Forum
There hasn’t been a statewide bioscience regulatory forum since 2004, so BioOhio figured demand should be adequately primed for another one.
BioOhio is pleased to host the BioOhio Regulatory Forum on August 26, at the Doubletree Hotel Cleveland South in Independence. Independence is a southern suburb of Cleveland, and the hotel is within sight of I-71, making travel reasonable even for those outside of northeast Ohio.
With the help of BioOhio-member REU Associates, we’ve put together a comprehensive, expert-laden agenda from 10:00am to 3:30pm, including lunch and a post-forum reception for networking.
From the FDA’s Office of Device Evaluation, we are pleased to have Heather Rosencrans, director of premarket notification staff, and consumer safety officer Marjorie Shulman. They will help attendees understand the 510(k) requirement for adding specific claims to a previously cleared general claim and the impact on product labeling. Also from the FDA, Brunswick Resident Post Laureen Geniusz and Columbus Resident Post Phil Pontikos will discuss corrections and removals, purchasing controls, and other regulatory trends and developments.
Joining our FDA speakers in small panel sessions will be John R. Miller, senior director of quality and regulatory at Philips Medical Systems, Walt Linscott, leader of Thompson Hine’s life sciences practice group, and Laura Green, Regulatory and Quality Compliance V.P. at REU Associates.
Corrective and preventive action (CAPA) and risk-based quality system as well as consent decrees and warning letters round out the topics to be covered in this robust and interactive program.
To register, email jgoldsberry@bioohio.com or call 614/675-3686, x1004.
Registration fees are $45 for BioOhio members, $75 for non-members and $30 for government employees or full-time students.
The BioOhio Regulatory Forum is sponsored by Thompson Hine, a BioOhio member.
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Working on Workforce Development
Led by Bill Tacon, BioOhio’s efforts to improve the quality and quantity of Ohio’s bioscience workforce remain on overdrive.
In partnership with Sinclair Community College and Raymond Walters College, BioOhio submitted an NSF-Advanced Technological Education (ATE) grant pre-proposal entitled “Southwest Ohio Biomanufacturing Educational Consortium” on April 18. The initiative calls for nearly $600,000 over two years for the implementation of advanced manufacturing courses at these colleges and an awareness campaign targeting high school and college students, as well as their parents and counselors. A full proposal is due in October.
Based on advice from NSF, the proposal is focused regionally. Later this year, BioOhio will participate as the industry interface in a separate Lakeland Community College NSF-ATE grant submission, focused primarily on middle and high school outreach.
Among seven projects to earn funding in the first round of the new Choose Ohio First scholarship program in March, the Ohio Consortium for Bioinformatics will receive $4.475 million from the Ohio Board of Regents for student scholarships. As part of the consortium, BioOhio will help establish and execute the internship and research experience components of the program.
In late April, Tacon was one of only 50 invited participants at the NSF-ATE national bioscience workforce “Think Tank” held in Scottsdale. The meeting resulted in the beginnings of a 5-year plan for U.S. bioscience technician training programs.
In October, Tacon will chair a bioscience industry panel at the
National Career Pathways Network Conference, to be held in Cincinnati, Oct. 22-25. The panel session will delve into workforce issues encountered by and being addressed by Ohio’s bioscience companies. Panelists include Brad Hughes from Amylin Ohio, Terry Marovich from Diagnostic Hybrids, and Eurand’s Peter Ercoli.
2008 Career Fair date announced
The 3
rd Annual Ohio Bioscience Career Fair will be held September 30 and centrally located again at the Holiday Inn Columbus/Worthington. Last year’s career fair, held in November, hosted 200 job seekers and 21 company exhibitors. Both figures are expected to increase this year. Companies interested in exhibiting may contact Jen Goldsberry at
jgoldsberry@bioohio.com or 614/675-3686, x1004.
BioOhio also will sponsor Lakeland Community College’s NE Ohio Bioscience Career fair on November 5.
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BioOhio strengthens Israel connections
For the second straight year, BioOhio and friends visited Israel with bioscience business in mind.
In early April, BioOhio’s Scott Osborne participated in Columbus Mayor Michael Coleman’s Business Mission to Israel. In all, 22 representatives from local businesses, economic development organizations, and venture capital firms took part. The bioscience business mission partners hosted a flurry of meetings and attended social gatherings from Jerusalem to Herzlyia, one of Columbus’s sister cities. The group also visited Hebrew University, Techion University, MATAM High Tech Park, Rambam Hospital, and the Weizmann Institute of Science.
“I met over 40 companies during my week there,” Osborne said, “and I have established ongoing dialogues with about a dozen.” In addition, Osborne visited with BioJerusalem and the Israel Life Science Industry Organization to discuss collaboration in mutual economic development activities.
During the trip, Mayor Coleman and TechColumbus President Ted Ford signed a business development memorandum of understanding with Israel’s RadBioMed Incubator CEO Idan Tamir to promote more co-investment and joint development of bioscience companies. Since the mission, several Israeli companies have presented to Ohio venture capital firms and negotiations are ongoing. A stroke treatment therapy company has engaged Battelle for product development and a veterinary medicine company is assessing locations in central Ohio for its North American operation.
BioMed Israel
In late May, BioOhio and SGI Advisors led a robust Ohio delegation to the BioMed Israel convention in Tel Aviv. BioOhio also spearheaded Ohio’s presence at the 2007 convention.
In addition to several collaborative Ohio booths on the exhibit floor, hundreds of meetings were held with Israeli businesses, researchers, investors, and medical institutions to discuss advantage of expanding in Ohio.
Ohio’s traveling team also included the City of Akron (led by Mayor Plasquellic), TeamNEO, GCIC, City of Beachwood, Columbus Chamber of Commerce, Summa Health, SpineMatrix, Akron Global Business Accelerator, BioEnterprise, and the Bridge Investment Fund, among others.
“Israeli biomed companies are very focused and determined to enter North America, and Ohio is a prime entry point,” said John F. Lewis, Jr., vice president of BioOhio. “At the same time, they are very knowledgeable about their target market but they still need a bridge-maker to become a success story."
Lewis added that his discussions with Israeli companies and entrepreneurs focused on common interest and strategic alignment. The majority of meetings were with companies interested in U.S. locations or U.S.-based partners, as well as with research institutions, incubators, and investors connected to companies nearing manufacturing or product launch stages.
"Israel has become a remarkably innovative place,” said Tom Sudow, director of business development at the Global Cardiovascular Innovation Center (GCIC). “It’s a hotbed.”
Both Lewis and Sudow reported that there was significant interest to form partnerships related to cardiology treatments and devices, especially with GCIC and the Cleveland Clinic.
BioOhio and the GCIC are in final stages of discussion with at least five Israeli cardiovascular-related companies, most of which are looking to expand their operations into Ohio. The Beachwood Chamber of Commerce hosted an ophthalmology device company in July following BioMed Israel to meet with potential partners and scope out possible location sites. Vince Adamus, Beachwood Chamber President said that Beachwood has been the “epicenter” of Ohio’s Israeli activities. To date, Beachwood counts more than 30 Israeli companies having been attracted to their community.
Lewis is optimistic that with Cleveland-based SGI Global Advisors working with Akron and Dayton city officials to spur Ohio-Israel alliances and with the estimated 25 bioscience-related group visits to Israel each year, Ohio will see continued success in partnering with Israeli companies.
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State of Ohio announces nearly $23 million for biomedical projects
The Biomedical Research Commercialization Program recently announced awards for the FY 2008 Ohio Biomedical Research Commercialization Program. Part of the state’s Third Frontier Project, the OBRCP provides funds to help Ohio universities, research institutions, medical centers, and private companies work together to commercialize technology-based products and improve the health of Ohioans.
- $5 million to Diagnostic Hybrids, Case Western Reserve University's School of Medicine, and Apath to further develop a yeast-based cloning system for viral diagnostics/treatment monitoring and to market these trials to hospitals, clinicians and pharma companies.
- $4.9 million to Cleveland Clinic's Clinical Tissue Engineering Center, Akron General Medical Center, Case Western Reserve University, University of Akron, and University of Cincinnati to expand its network and programs in the areas of burn and scar care, wound healing, and nerve repair.
- $3.9 million to Case Western Reserve University, Copernicus Therapeutics, and Polgenix for the application of three complementary activities: development of nanoparticles for treatment of cystic fibrosis and retinitis pigmentosa; commercialization of a ophthalmoscope for early detection of retinal disease; and development of contrast agents for the detection of clean margins during breast cancer surgery.
- $3.8 million to The Cleveland Clinic, NASA Glenn Research Center, The Ohio State University, Case Western Reserve University, and Makel Engineering to develop a nitric oxide sensor that will enable asthma patients to monitor their asthma at home.
- $3 million to The Cleveland Clinic, Case Western Reserve University, and the University of Toledo to develop small molecules that can enhance repair of the brain in multiple sclerosis.
- $2.1 million to Cleveland Clinic's Lerner Research Institute, Ohio Willow Wood, and Cleveland State University to develop a more functional prosthetic limb for transfemoral amputee soldiers.
"I'm particularly proud to announce these awards today because of the very real potential they present to change Ohioans lives for the better," said Lt. Governor Lee Fisher, who also serves as Director of the Ohio Department of Development. "The collaboration demonstrated by the State, our universities and research institutions, and our private companies illustrate the highest level of work we can do together to improve the health and quality of life for our citizens."
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BioOhio News Briefs
BIO 2008
BioOhio once again led the state’s presence at the 2008 BIO International Convention, this year held in San Diego, June 16-20. And we were pleased that Ohio Lt. Governor Lee Fisher could join us for several strategic meetings with west coast bioscience companies. The Lt. Governor also was our guest of honor at an evening reception and two breakfast seminars that attracted more than 250 guests collectively. More than 20,000 convention attendees hailed from 70 countries and 48 states. The convention featured the largest gathering of biotech exhibitors in history, with more than 2,100 companies and more than 208,000 sq. feet of exhibition space, the largest ever at the convention.
New member roll call
BioOhio welcomes and thanks the following members who have come on board since March:
- EF Scientific, LLC
- Hyper Tech Research, Inc.
- NitAn BioTech LLC
- REU Associates Inc.
- Xi Technology
- Corky Thacker Communications, Inc.
- Leis Medical, Inc.
- Stress Engineering Services, Inc.
- Biopack USA
- CARON Products & Services, Inc.
- IQS, Inc.
- Midsci
- Ohio Chamber of Commerce
- QTest Labs
- Stratagene
- Bill Kolosi Design
- PharmaZell, Inc.
- Adecco Scientific
- Akebia Therapeutics
- Vidaro Corporation
- John Varley
- Jared Niedenthal
- Bob Wininger
- Steven Sullivan
- Mike Bunker
- Bradley Hamilton
View the full member list
here. BioOhio is Ohio's only statewide bioscience membership and development organization. To learn more about membership,
check this out or call Membership & Events Coordinator Jennifer Goldsberry at 614/675-3686, x1004.
New Discounts for Members
Nature Publishing Group and Windhover Information have added their publications and online site license packages to the BIO Business Solutions program, for which BioOhio members are eligible. See BioOhio’s complete BIO Business Solutions offerings here (
www.biobusinessolutions.com/oh.asp).
AdvaMed 2008, September 21-24 in D.C.
BioOhio is a supporting partner of the AdvaMed 2008 Convention, and because of that, BioOhio members are eligible for a special $200 discount off of the prevailing registration rate. Get the discount code by calling or emailing Jen (614/675-3686, x1004,
jgoldsberry@bioohio.com). For details on the convention,
http://www.advamed2008.com/.
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Upcoming bioscience events in Ohio
BioOhio Workshop: The Art of Communication & Leadership in a Scientist and Techie World
August 7, 2008 | 3:00pm - 5:00pm (networking reception to follow)
@ JumpStart, Cleveland
Join BioOhio-member ImprovEdge for an engaging session that will focus on individual communication and leadership skills. To RSVP, email jgoldsberry@bioohio.com or call 614/675-3686, x1004. Free for members; $10 for non-members.
Materials & Processes for Medical Devices Conference & Expo: Opportunities for Next-Generation Implants
August 5-7, 2008
@ InterContinental Hotel, Cleveland Clinic
BioOhio Regulatory Forum
August 26, 2008 | 10am -3:30pm
@ Doubletree Hotel Cleveland South, Independence
Sponsored by Thompson Hine
To register: email jgoldsberry@bioohio.com or call 614/675-3686, x1004. $45 for BioOhio members; $75 for non-members; $30 for govt/students