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May 2005
President's Perspective | Tony Dennis, PhD
Bioscience events in Ohio are moving at the same frantic pace as that of the industry worldwide.
A current round of reviews of the recently funded Wright Centers of Innovation and BRTT award winners shows a remarkable amount of progress in a very short time in every corner of the state. AtriCure in Cincinnati has announced that it is entering the rarified air of national bioscience IPOs with its recent filing. Ogenix in Cleveland is significantly increasing sales of its award-winning medical device for wound healing.
Baiju Shah, president of BioEnterprise, recently presented the annual report of Northeast Ohio bioscience accomplishments showing progress that ranks Cleveland among the top few destinations for bioscience investors in the country. The Columbus technology scene is coalescing rapidly with a strategic alliance among the Business Technology Center, SciTech and the Columbus Technology Council in the works.
Omeris has held a variety of events throughout the state over the past two months with more than 400 attendees actively networking. And, we are working hard to make this year’s national BIO show in Philadelphia the best ever for Ohio. The show will feature the second edition of our Accelerating Excellence magazine, a special Ohio Night event with Governor Taft joining us to meet with foreign and domestic companies interested in developing operations in Ohio, and great biomed products donated by P&G, STERIS and Ganeden Biotech.
Finally, we are anticipating getting out the vote at the grass roots level for the re-emerging Third Frontier bond issue set for the fall election. We look forward to seeing all of you at BioOhio in the fall to celebrate our successes, plan our continued explosive growth, and make the final push to get the Third Frontier issue passed.
BioOhio 2005 to feature head of IBM Healthcare and Life Sciences
Caroline Kovac to be 2005 Keynote Speaker
Omeris is thrilled to announce that Dr. Caroline Kovac, general manager of IBM Healthcare and Life Sciences and an Ohio native, will be our BioOhio 2005 keynote speaker. BioOhio 2005 will be held Oct. 31 – Nov. 1 at the Hilton Columbus at Easton.
As General Manager, Dr. Kovac works closely with a wide variety of leaders in healthcare and life sciences, including medical centers and academic institutions as well as leading biotech and pharmaceutical companies to pioneer information-based medicine. During her tenure, IBM Life Sciences has become one of IBM’s most successful new businesses, providing innovative services and technologies that allow researchers to turn the vast quantities of biological data from the Human Genome Project and other research efforts into useful medical and scientific information.
She was inducted into the Women in Technology International Hall of Fame in 2002, and in 2004, Fortune magazine named her one of the 50 most powerful women in business. Kovac earned her Ph.D. in chemistry at the University of Southern California and a Bachelor of Arts degree from Oberlin College.
Additional BioOhio agenda and registration details will be published this summer. In the meantime, save the date (Oct. 31 – Nov. 1).
Omeris to wave Bio In Ohio flag at Annual BIO Convention
June 19-22 in Philadelphia
Omeris again will lead an Ohio delegation representing the Buckeye State at the 2005 Annual BIO International Convention, June 19-22 in Philadelphia. This year our presence on the mammoth exhibit floor will measure 600 square feet.
A Bio in Ohio evening reception held in conjunction with the convention has been added by Omeris this year. Taking place June 20 on the world’s largest 4-masted ship still afloat—The Moshulu—the invitation-only event will feature remarks from Governor Taft and provide an opportunity for out-of-state bioscience leaders to learn more about Ohio.
In addition to boasting Ohio’s unique and widespread bio assets, the Bio in Ohio booth will feature five Ohio emerging companies—Diagnostic Hybrids, Ogenix, Phylogeny, Rescentris, and Ventaira Pharmaceuticals. By marketing themselves to the world’s largest gathering of bioscience professionals, they help us market Ohio as a premier destination for bioscience innovation and profitability.
Offering product samples from a few of Ohio’s leading bioscience companies at the booth also helps deliver the Bio in Ohio message. Continuing a successful effort initiated last year, we can't wait to share the samples received from Procter & Gamble, STERIS, and Ganeden Biotech this year.
A diverse, collaborative team of organizations are partnering with Omeris in Philadelphia: Ohio Department of Development, Columbus Chamber, Team NEO, Athens Area Chamber, and Team Ohio.
The 2006 BIO Convention is coming to Chicago next April, the first time the event has landed in the Midwest. For those companies that have contemplated exhibiting at BIO, 2006 might be the perfect year to try it. Exhibitor applications will be available at www.bio.org in July.
BIO VentureForum coming to Cleveland in '06
On April 13 Omeris President Tony Dennis announced that the 2006 BIO Mid-America VentureForum would be coming to Ohio, Cleveland to be precise. The 2005 BIO Mid-America, the premier Midwest biotech and medical device venture conference, is in Minneapolis, September 21-23.
Launched in 2003 in Chicago, the conference is hosted by BIO, Omeris, and eight other state bioscience associations. In addition to the biotech arena, highlighted this year is the medical device industry, one of the Midwest's unique strengths, and a field that is quickly attracting capital investments from some of the nation’s leading VC firms. An advisory board consisting of the nation's most prominent firms will select over 70 companies seeking seed, early- and late-stage funding to present business plans. In addition, the event will feature insightful workshops on trends in the financial markets and life sciences space, and provide ample networking opportunities.
Omeris is in contact with several facilities in Cleveland and we expect to announce early September 2006 dates in the next few weeks. Sponsorship opportunities are available for the 2005 and 2006 events. Contact Matt Schutte (614/675-3686) with questions.
The conference provides an excellent opportunity to network with entrepreneurs and investors alike. For more information on the 2005 VentureForum, visit the official web site.
Omeris Road Show was a hit
Omeris staff have logged a lot of miles on Ohio highways this spring. And we’ve enjoyed every mile.
On April 13, we held a bioscience networking event at the downtown offices of Thompson Hine, a long-standing Omeris member. The view was incredible, the room was packed, and the conversation was lively. Nearly 150 Cleveland-area bioscience professionals stopped by to network and learn more about the exciting developments in Ohio and its Northeast region.
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| Bioscience Networking event in Cleveland. |
A couple weeks later in Columbus, we hosted the 1st Annual Ohio Bioscience Innovate-Advocate Showcase. The title is a mouthful, but it had to be considering we successfully combined a networking event, an emerging company showcase, and an opportunity to meet several state legislators all in one evening. More than 170 attendees and 25 exhibiting companies from all corners of Ohio are testimony to our bioscience community’s vibrancy and involvement. We thank our sponsors, Bricker & Eckler, Fahlgren Mortine, and The Blackwell Hotel & Conference Center, and Scitech for helping us pull of a great event.
Finally, on May 5 we landed at Cincinnati’s Genome Research Institute to host another regional bioscience networking event. Nearly 70 attendees got together to network and to learn more about Ohio and Cincinnati-area bioscience activity and what the GRI is up to.
Spreading the Why Ohio message throughout the state
This spring, Omeris rolled out a series of exhilarating presentations around the state geared around Phase I data from our Targeted Asset-Based Company Attraction Strategy.
More than 300 economic development and bioscience attendees were energized and amazed at the breadth and depth of Ohio’s bioscience assets. The information presented was covered in Cincinnati, Cleveland and Columbus media outlets and is being used by many of the attendees. Key information that was highlighted included:
- What is Ohio’s life science asset landscape?
- How do we compare to select peer and benchmark states in terms of education, funding, workforce, and location?
- Which assets make us globally competitive?
- Are we a global player?
These presentations were done in partnership with local chambers of commerce and Omeris affiliates, so thanks go out to Greater Cincinnati Chamber, Team NEO, Greater Athens Area Chamber and the Columbus Chamber, along with BIO/START, BioEnterprise, Edison Biotechnology Institute and The Business Technology Center. Key events were held in February in Cincinnati and Cleveland, and in Athens and Columbus in March.
Additional presentations were given to the Omeris and BioEnterprise Boards, Ohio Department of Development International Trade Advisors and Technology Divisions, Wright Patterson Air Force Base and the Air Force Research Laboratory, and the Third Frontier Advisory Board. If you are interested, we will give the presentation to a group of your choosing. Just let us know.
The feedback we have received has been great. Here are some selected comments:
“Great job today, boy am I proud to live here (Cleveland)! I really liked the way you asked us to be ambassadors for the state, not just our region. We're so busy complaining & looking down on ourselves that your timing couldn't have been better.”
“Wonderful presentation this morning at HealthSpace. It is so exciting to hear the work you’ve been doing and the real opportunities for the booming growth of this industry in Ohio…I have shared your presentation with my colleagues and we will be sure to carry the banner when we can!”
“I just wanted to commend you on bringing both passion and facts to the cause of promoting Ohio's bioscience sector.”
“The presentation you and Catharina offered help in two ways. First, the hope for the future of biotechnology in our community. The information provided made us feel good about Ohio including Athens' future. Second was the realization that we could be a player in Ohio's future…”
“Ohio has a number of very clear advantages for tech-based businesses and Omeris is doing a fantastic job of highlighting them.”
The presentation is on the Omeris website (past events page) and a discussion forum has been set-up in our Web BioForums. For any additional queries contact John Lewis at jlewis@omeris.org.
More bang for biotech buck in Ohio
Locating in Ohio could save young companies millions
Among the most important decisions for an emerging bioscience company is where to locate the business. That decision may have become a little easier. A new corporate location study published in Genetic Engineering News reveals that locating a bioscience company in Ohio can result in savings up to $2.1 million.
According to the study, the annual cost of operating a biotech facility in Columbus ($9.17 million) is 19% less than in San Jose ($11.29 million) or San Francisco ($11.22 million), both considered traditional biotech centers. At $9.66 million, the annual cost of running a biotech company in Cleveland is 14% less than in San Jose. On the East Coast, Boston’s biotech operating costs total $10.62 million, $1.45 million and $960,000 more than Columbus and Cleveland, respectively.
Prepared by The Boyd Co., a New Jersey-based site selection firm, the study focused on all the major cost of drivers of the corporate site selection process in 50 cities in the U.S., Canada, or Europe. Operating cost factors include salaries for employees with advanced degrees, other employee wages, fringe benefits, lease rates, utilities, and other geographic variables like housing. Costs are scaled to a representative 100-worker bioscience operation occupying 75,000 sq ft of office and lab space.
“Today, operating costs are the white-hot issue in the boardrooms of life science clients, and they are tending to rule the site-selection process,” said John H. Boyd, founder and president of The Boyd Co., in a Genetic Engineering News article. “Many of our site-seeking clients tell us that the only way they can improve the bottom line is by reducing costs.”
One to two million dollars in annual cost savings is significant for any business, but especially a bioscience venture. While these savings could be converted into necessities ranging from additional lab space to marketing activity, most bioscience start-ups would utilize the funds to advance research and development.
As a former CEO of biotech companies in San Diego and Columbus, Mike Luecke experienced the economic differences firsthand. “There is no question that Columbus is a lower cost alternative to any biotech hub in California or Boston,” he said, “particularly for a startup or early-stage company, when cash is scarce. Payroll is typically the single largest operating expense, with lab and office space second.”
Compared to San Diego, operating costs are $1.2 million less in Columbus and $723,000 less in Cleveland.
“In addition to the apples-to-apples lower costs in Columbus and Cleveland, the State of Ohio offers attractive financial incentives and cash grants to Ohio-based companies,” Luecke commented, “which was a pleasant surprise to me when I first arrived in Columbus.”
Already a beneficiary of unmatched hospital quality, dozens of esteemed research and academic institutions, and supportive government programs, Ohio can add the attractive operating cost figures to its list of bioscience business assets.
“Ohio’s bioscience assets are surprising, even to most Ohioans,” said Omeris Vice President John F. Lewis, Jr. “For instance, 26 percent of all clinical studies are done in part or in whole in Ohio. Our state had 2,085 life science patents issued during 1997-2001, almost double that of North Carolina. And there are more than 500 bioscience-related companies in Ohio. The list goes on and on.”
According to Boyd, there is a growing shift of bioscience investment from many of the larger and more costly centers of industry concentration on the East and West coasts to more manageable, less costly regions of the country.
Nearly 40 bioscience companies either were started or recruited to Ohio in 2004. According to a recent study by Omeris, almost $1 billion ($976M) was invested across Ohio to accelerate Ohio’s bioscience growth in 2004. More than 109 Ohio companies received bioscience funding, of which 30 received $1 million or more in either venture capital, angel investments, or non-dilutive competitive federal or state grants.
Briefly Bioscience
Omeris membership on the rise: More bioscience companies, entrepreneurs, and students are realizing the benefits of being an Omeris member. We are proud of and grateful for our growing list of 200-plus members and encourage those that are not members to join.
New Omeris Members since January 2005:
- Cleveland Medical Devices, Inc.
- Copernicus Therapeutics, Inc.
- Cone Instruments, Inc.
- Flocel, Inc.
- LS Products LLC
- Leff & Associates
- Ventaira Pharmaceuticals
- Gurkan Babek
- Nilabh "Neil" Chaudhary
- Albert Coreno
- Joel Danzig
- Michael Koucky
- Troy Farrell
- Adele Luta
- Kevin Trangle
- Jonathan Murray
- James Ireland
Head to the Omeris web site to learn more about member benefits or to submit an application, or call Membership Coordinator Mollie Hannon at 614/675-3686, x1004.
Ohio Bioscience on the web: If you haven’t lately, stop by the Omeris web site (www.omeris.org) next time you browse. In addition to stats, information, the Ohio Bioscience Resource Directory, and the latest Ohio bio news, we recently redesigned our bulletin board. The Web BioForums feature several discussion forums, including those devoted to job openings, job seekers, bioscience event announcements, and available equipment and lab space.
Accelerating Excellence, the sequel: The second annual issue of our Ohio bioscience magazine, Accelerating Excellence, is in the final stages of production. This year’s issue is focused on Ohio’s bioscience leaders, from university and corporate presidents to entrepreneurs and world-class researchers.
We’ll be sending express copies to all Omeris members before sharing them with the bioscience world at the BIO Convention in Philadelphia. If you would like your own copy, e-mail bioscience@omeris.org.
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