Biomed Report Catalyzes BayBio Efforts for Capital Access
Following two decades of steady annual growth, employment is stalled, access to capital is limited and regulatory uncertainty prevails, according to the recent California Biomedical Industry 2012 Report.
Despite tremendous assets in research, talent and capital that so far have secured California’s leadership, report findings underscore the risks of losing our lead in an increasingly competitive national landscape and global economy. California’s biomedical industry is at a crossroads.
According to the report, 57 percent of CEO respondents plan to expand R&D activities within California, while 56 percent also plan to expand manufacturing activities out of state. Nearly 78 percent of respondent companies have been actively courted by other countries and states. Respondent companies have expanded operations in Western Europe and China and consider Boston, North Carolina and Minneapolis/St Paul attractive options for domestic research and development.
Innovation and productivity are at risk in California. Nearly three-quarters of survey respondents reported delaying research or development projects over the last year. Forty percent said capital was not available and 27 percent cited regulatory uncertainty. California’s importance as a leading engine of life sciences innovation and entrepreneurship cannot be overstated. As an industry we need to collaborate with our state and national leaders to resolve these hurdles.
The 2012 report identifies alternative funding sources, and companies need to explore every option. Thirty percent of CEOs surveyed plan to access corporate venture capital in 2012, up from ten percent in 2011. There is a threefold increase in the number of respondents reaching out to disease foundations. Forty-four percent of respondents will look into licensing agreements and corporate partnerships, double the number from last year. These are all positive signs that our companies are dynamic in the face of economic uncertainty. They cannot be expected to go at it alone.
BayBio is committed to supporting the industry’s growth and innovation. At CALBIO2012, we worked with BIOCOM to provide a partnering forum to discuss funding opportunities for California companies. There, companies accessed corporate venture capital and disease foundations, including The Myelin Repair Foundation (MRF), The Michael J. Fox Foundation for Parkinson’s Research, Fast Forward and the EveryLife Foundation for Rare Diseases. The conference provided opportunities to connect with corporate venture funds and major pharma dealmakers including Sanofi, Amgen, Genentech and more. Access the program at www.CALBIO2012.com.
BayBio’s Pharma Partnering Day program provides pharmaceutical companies and high quality small therapeutic companies the opportunity to participate in targeted one-on-one meetings, providing emerging companies unparalleled access to major business development teams. We have six days scheduled throughout the course of the year. Visit our calendar at www.baybio.org/events to stay updated.
To view California Biomedical Industry 2012 Report, click here.