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Headliners
Governor Signs Life Sciences Bill Into Law
BOSTON— Gov. Deval L. Patrick today signed into law a billion-dollar, 10-year package of research
grants, public construction money and targeted tax credits designed to bolster the state’s
position as a leader in life sciences research. “With this initiative we take our rightful place
as a global leader in the life sciences,” Mr. Patrick said as he signed the life sciences bill.
“There is no place in the world with as great a concentration of life sciences talent, resources
and vision as Massachusetts. “With these resources – and the collaboration and support of the
industry, academia, business and government – we are on our way to helping find new cures
for diseases, creating new jobs, and positioning ourselves for long-term economic growth.”
The bill is expected to have considerable impact on Worcester and Central Massachusetts.
About $216 million of the $1 billion is to go toward new life science research centers at the
University of Massachusetts, including $90 million for the state’s share of a planned genetic
therapy research center at UMass Medical School in Worcester. Telegram & Gazette, June 16, 2008
Biotech bill a big benefit for the region - Patrick will sign legislation before leaving for Calif.
BOSTON— A state-funded study concludes the life-sciences industry is one of the fastest-growing
job engines in the state — growing by 8 percent between 2001 and 2006 and now employing 77,000 people.
The assessment by PriceWaterhouseCoopers LLP, prepared in advance of next week’s BIO 2008 international
biotechnology conference in San Diego, was released yesterday as the state Senate gave final approval
to the billion-dollar, 10-year life sciences investment bill.
The House enacted the measure on Wednesday.
The Massachusetts Biomedical Initiatives organization
estimates that the life-sciences sector contributes $8.8 billion annually to the state’s economy.
The PriceWaterhouse report notes that while that contribution puts Massachusetts among the leaders
in the field, competition from other states and countries for life-sciences jobs presents a challenge
for future growth.
Worcester, which already has a cluster of biotechnology and biomedical startups, as well as larger
manufacturing and research centers, stands to expand with passage of the bill.
Earlier this year, the University of Massachusetts Medical School in Worcester launched the
first-in-the-nation stem cell bank to maintain stem cells for researchers around the world, and is
in line for $90 million in state funds from the life sciences bill to spend on a new genetic therapy
research center that will cost more than $300 million.
Over the next 10 years, the bill will make available $250 million worth of tax incentives for life
sciences firms that locate or expand operations in the state; $250 million worth of research grants
aimed at maintaining graduate level and private sector research in the field and $500 million in direct
appropriations for research and academic centers and infrastructure for industry expansion.
Gov. Deval L. Patrick is expected to sign the bill into law early next week before he leads a delegation
of state lawmakers, agency staffs and industry leaders to San Diego for the conference. Mr. Patrick is
scheduled to give a keynote luncheon address at the conference on the role of government in promoting
development of life sciences industries.
The report on the state’s life sciences strengths notes that federal grants to Massachusetts researchers
have fallen since 2006, and last year were at their lowest level in three years. It found that the number
of life-sciences jobs grew 8 percent since 2001, while overall job growth in Massachusetts fell 2.5
percent during the same period.
It said life-sciences research in the state continues to change the face of medicine by driving research
innovations, but faces increasing competition from other states and nations in its attempts to further
expand.
James Connolly, New England life sciences assurance leader for PriceWaterhouseCooper, said the state hosts
world-renowned scientists and researchers and is positioned to thrive in the field that places a premium
on innovation. But, he said, more work needs to be done to see research breakthroughs make their way to
the marketplace.
“Making the jump from pure research to marketable products will require strengthening partnerships among
universities, teaching hospitals, life sciences companies and venture capitalists,” he said.
A survey of 147 life sciences industry executives included in the report found that 71 percent believe
it is important for their firm to be in Massachusetts because of the “super cluster” of other life
sciences firms and researchers. When asked what could prompt them to leave the state, slightly less
than 8 percent cited the commute; 25 percent cited “pay” and 40 percent said the lifestyle offered in
Massachusetts.
Two-thirds of the executives said they considered themselves entrepreneurs and about the same number
said they expect their next job to be with a start-up firm. Telegram & Gazette, June 13, 2008
With Visions Of Biotech Dancing In Their Heads
Predictions for future industry growth in Worcester are ambitious
A recent study conducted by two Worcester Polytechnic Institute students on the extent of the biotech industry in Central Massachusetts and the Worcester-to-Boston corridor includes some fairly robust forecasts for the industry's future here.
Kevin O'Sullivan, director of the Massachusetts Biomedical Initiatives, which runs three biotech incubators in Worcester, requested the survey to quantify the growth he believes is ongoing here in the greater Worcester area and along the Boston-to-Worcester corridor.
The study's authors, Collin Weingarten and Alan Ngo, used the same methodology that WPI students used when quantifying biotechnology here in 2004. This year they drew a statistical picture of the biotech industry in Central Mass. as having grown 136 percent from 2004 to 2008: from an economic impact of $925 million to about $2.2 billion and more than doubling employees from 7,576 at 111 companies to 16,441 employees at 162 companies.
And their projections for 2012 are even better. By 2012 the industry's economic impact in Central Massachusetts is expected to be $6.1 million, a 182 percent jump over 2008. That includes a 159 percent increase in employees to 47,743 and a 67 percent increase to 270 companies.
Trust But Verify:
Their projections were so strong that O'Sullivan asked them to recheck the numbers. They did, but only very minor number changes had to be made and the projections remain pretty much as they were first developed.
We'll have to see if the forecast proves true. Economically, this area would benefit if it does play out that way, particularly if the state's education efforts in math and science are beefed up so there is trickle-down effect for average workers. The biotech boom will be a true success in the long run only if average workers are a part of that economy, too.
The forecast itself is more remarkable if you simply look at how and where the industry started.
In the early 1980s, there were certainly biotech companies forming, locating in Central Massachusetts, and Worcester specifically, because of existing research at the UMass Medical School and the medical center.
A subcommittee of the Worcester Chamber of Commerce looked at how the city could reinvent itself in the wake of manufacturing losses even then. After studying what other communities around the country had done to remake themselves, the subcommittee put together a 20-year plan for the city. It included developing a research park for biotech companies as a way to encourage the industry in the Worcester area.
The Worcester Business Development Corp., a nonprofit economic development corporation, was the vehicle that physically developed the Massachusetts Biotechnology Research Park, across the street from the UMass Medical Center.
It was 1985 by the time the building was up. At the time of construction reactions to the project were mixed and sometimes negative. Some were so negative, one would have thought that they were digging a giant pit and burying money considering the reactions of some at the time.
And to see what a big player that park and the biotech industry has become in the local economy, contributing $2.2 billion now and up to $6.1 billion four years from now, is pretty amazing.
That a group of business and medical folks believed enough in what the future could hold to slog ahead and build a biotechnology park so the biotechnology industry could grow here, despite the skepticism of many others, speaks a lot about the group and its grit.
I'm not sure even they envisioned the success that we see now, with what at times seems like a biotech startup on every other corner.
But it's here and the forecast calls for great stellar growth.
We'll have to wait and see if the growth matches the predictions, but in today's economy, or any economy, it sounds like a great weather forecast.
Communities Wooing Biotech Firms
Consultants advise officials to be ready
WORCESTER— Cities and towns hoping to get in on life sciences development need to have sites ready to go when companies call and municipal officials who can respond with speed, development experts said yesterday.
The entities that search for locations for businesses may spend months doing research, then give communities just five days to answer detailed written requests for information, said John DiNapoli, director of business services for the Massachusetts Alliance for Economic Development.
“When these folks call, we need somebody who can answer the phone at the municipality and give us the information,” Mr. DiNapoli said.
Preparing municipalities for life sciences development is the subject of a Massachusetts Biotechnology Council initiative. The MBC, a trade group for the state’s biotech companies, brought the discussion to Worcester yesterday after holding similar sessions in Andover, Billerica and Chicopee. The effort comes as the state is considering a $1 billion investment to encourage life sciences economic development.
Peter Abair, MBC director for economic development, said biotechnology is a statewide industry, with 70 percent of the state’s biotech companies located outside Boston and Cambridge. To compete in a global marketplace, Massachusetts cities and towns need to be ready with information on properties that could be developed, and information on their communities’ water, sewer and electricity capacities.
“Other countries, other parts of the world, are making huge investments in biotech, so we have to be cognizant of that,” Mr. Abair said.
Being ready, however, takes work. Donald A. Lowe, the director of the Clinton community and economic development office who attended yesterday’s session, said Clinton residents will consider at a town meeting this month whether to create a biotech overlay zoning district and whether to participate in a state program known as “43D” that offers development grants to communities that designate development sites and rapidly consider permit requests.
Clinton officials have identified a former industrial site ready for development and hope to attract small life-science operations that might want to be close to the Worcester and Devens life-science businesses, Mr. Lowe said.
“We want to position ourselves, I think, as incubator space, and then if it grows from that, that’s great,” Mr. Lowe said.
Infrastructure can trip up a community, too. Upton sits on Interstate 495, next to Hopkinton’s cluster of life-science businesses, yet the town lacks an extensive municipal water and sewer system, and its underground water resources could be costly to tap, said former selectwoman Marsha A. Paul, who also attended yesterday’s session.
The state’s development program might be helpful in tapping that water and putting positive developments on land already identified for industrial use, she said.
“We already have some areas designated,” Mrs. Paul said. “Let’s put some good stuff there.” Telegram & Gazette, June 6, 2008
Bio-boom coming
Report sees billions for region in future growth
WORCESTER— The biomedical industry will have a direct economic impact of $2.2 billion this year in Central Massachusetts, according to a new report commissioned by Massachusetts Biomedical Initiatives, an economic development organization.
The Worcester Polytechnic Institute students who wrote the report also project that the industry could grow to $6.1 billion by 2012 as biotechnology, pharmaceutical, medical device and related businesses grow in the area.
“I honestly believe the Central Massachusetts region is going to see a lot more growth than other regions,” said co-author Collin J. Weingarten, citing the influence of Gov. Deval L. Patrick’s proposed life science legislation and proposals to create a stem cell center at the University of Massachusetts Medical School in Worcester. “Having something like that alongside our universities and our companies, our pharmaceutical companies and our biomedical companies, I think it’s going to bring a lot of attention to the Worcester area and a lot of business.”
Telegram & Gazette, May 30, 2008 Read More
Startups Advised at Biotech Forum
WORCESTER— How to raise money.
Where to get good advice.
Why a good landlord matters.
These are the things that entrepreneurs learn as they create and develop life science companies in Central Massachusetts, according to speakers yesterday at a biotechnology forum at Worcester Polytechnic Institute that attracted about 80 people.
“There are a lot of ups and downs in business, and I definitely experienced them,” said Harry Wotton, president and chief executive of Securos Inc., a Sturbridge-based developer of veterinary orthopedic implants and instruments that was purchased last year by MWI Veterinary Supply Inc. of Meridian, Idaho.
The trials of startup life science companies are well known in Central Massachusetts, which is home to a number of small businesses engaged in drug discovery, development of diagnostics and contract research. Norman Y. Garceau, president and chief scientific officer of Worcester-based Blue Sky Biotech Inc., said the challenges for Blue Sky ranged from whether a company could really survive by performing work for drug makers to persuading his wife that leaving a corporate job for Blue Sky was a good idea.
“Honestly, I had no idea how tough this would be, but it’s been fun,” Mr. Garceau said.
In addition to finding investors and financing, entrepreneurs said they have angled for flexible arrangements with landlords that would allow their companies to expand, scrambled for advisers and learned to market and sell, even if their expertise was scientific rather than financial.
The best step that entrepreneurs can take is to seek out good advice, said Laura E. Allen, director of MedTech IGNITE, a new program of the Massachusetts Medical Device Industry Council that is matching a small number of entrepreneurs with medical device chief executives for mentoring.
“At the end of the day, I think it boils down to having a savvy board,” Ms. Allen said in an interview after speaking at the WPI forum. “Having someone who’s done it, who’s been there before … That’s really valuable.”
Tanja Dominko, president and chief executive of CellThera Inc. of Worcester, said she and a business partner formed CellThera to do the kind of scientific work in regenerative therapies they wanted to pursue. Yet, a small company in an arena with large competitors must find opportunities, she said.
“You have to have something that is new and groundbreaking if you want to contribute to this field,” she said.
Although Blue Sky may have once seemed an uncertain venture, Mr. Garceau said, the company founded in 2003 has adjusted its services, developed a large client list, grown to 28 employees and begun to think of itself as a “collaborative research organization” offering expertise in addition to services. One difficulty for entrepreneurs, he said, is developing a way to turn over control of their companies, or an “exit strategy,” as businesses grow or change.
“You never know how things are going to go, so you have to be prepared,” Mr. Garceau said.
Mr. Wotton said he never expected to sell his company when he did, but after 10 years of building the business he realized that the resources of a larger business could help Securos, which now has 28 employees, a 17,000-square-foot facility and plans to bring certain manufacturing operations from Germany to Sturbridge.
“We were putting so much on hold because we couldn’t fund it,” Mr. Wotton said. March 27, 2008, Worcester Telegram & Gazette
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