Chamber Promotes Life Sciences in D.C.

7324001The Indiana Chamber is a proud partner in Hoosiers Work for Health, which promotes the biopharmaceutical and life sciences industry, and visited with Indiana’s elected representatives in Washington, D.C. July 15-16 to discuss issues such as patent
reform, taxation and FDA regulatory procedures.

The Chamber joined several other Hoosiers Work for Health representatives for office visits on Capitol Hill. The group met with Reps. Susan Brooks (R-5th District) and Larry Bucshon (R-8th District), both members of the House Energy and Commerce Committee, as well as Rep. Todd Young (R-9th District), who serves on the House Ways and Means Committee. The group also visited with key staff members for Sens. Dan Coats (R) and Joe Donnelly (D) while the Senate held floor votes on an education bill.

It is clear from the conversation with Indiana’s elected officials that they understand the importance of the biopharmaceutical/life sciences sector to the economic health of Indiana. This sector directly supports more than 20,000 jobs across the state and generates $19 billion in economic output. By creating high paying jobs, biopharmaceutical companies build a strong foundation from which we can grow our state economy – providing stability and prosperity into the future.

Hats Off to Hoosier Life Sciences Companies

It was a race against time when I rushed into my boss’ office to share new statistics on life sciences released by BioCrossroads in partnership with the Indiana Business Research Center at the Indiana University Kelley School of Business. Why the hurry? We were seconds away from sending the March-April edition of BizVoice® magazine, which features life sciences, to the printer.

Alas, I was too late!

Sometimes you can’t beat the clock; it’s one of the perils of working in the magazine world. But that doesn’t diminish the value of our special BizVoice issue, now available online and on the way to your mailbox for our print subscribers. It tells compelling stories of the companies – and people – making discoveries and advancing the life sciences field.

A roundtable discussion focused on growing Indiana’s life sciences advantages includes insights from panelists on opportunities, challenges, collaboration, funding and more.

A few highlights from the BioCrossroads report (data is from 2012, the most recent year it is available):

  • Annual economic impact: $55-plus billion (up from $50 billion)
  • Workforce: 55,000 employees at nearly 1,900 companies
  • Annual wages: $89,056
  • Worldwide exports: Indiana ranks second (behind California), with more than $9.7 billion in life sciences products each year. That’s one-third of Indiana’s total exports.

Life sciences is changing – and saving – people’s lives. Thank you to all in our state who are helping make it happen. And keep the innovation coming!

Venture Dollars Up for Quarter, Down for Year

The optimist points to increased venture capital deals and dollar amounts in the second quarter of 2012 compared to the first three months of the year. The pessimist notes that both the second-quarter and first-half numbers for 2012 are lower than those figures in 2011.

The brief recap: January through June 2012 saw 1,707 deals worth $13.1 billion; for the same time period in 2011, it was 1,942 deals with a value of $14.7 billion.

Further numbers and analysis from one of the longest names/reports on record: The MoneyTree™ Report by PricewaterhouseCoopers and the National Venture Capital Association based on data from Thomson Reuters.

The number of Early stage deals reached the highest quarterly total since Q1 2001, with $2.1 billion going into 410 deals, an 18 percent increase in dollars and a 28 percent increase in deals from the prior quarter. The Internet-specific sector also saw increases during the second quarter, rising 22 percent in dollars and 31 percent in deals from the prior quarter to $1.8 billion going into 261 deals in Q2.  The Life Sciences sector (Biotechnology and Medical Devices), however, experienced a decline in funding in the second quarter, dropping 9 percent in dollars and 6 percent in deals from the prior quarter to $1.4 billion going into 174 deals in Q2.

“The concentration of venture capital dollars in the hands of fewer firms will increasingly dictate the flow of investment,” said Mark Heesen, president of the NVCA. “Currently, this translates into more funding for IT start-ups and less capital available for life sciences and clean technology.  We hope to see this investment mix rebalance over time as the start-up ecosystem is better served with more diversity, not less.  Additionally, we continue to watch the early stage and first time financing numbers as they are critical to the U.S. innovation pipeline.  We are encouraged that these numbers were stronger this quarter and hope that this signals an ongoing commitment on behalf of venture firms to make these longer term, breakthrough investments.”

“If funding levels in the second half of the year remain consistent with the first half of the year, VC investing in 2012 will fall short of the nearly $30 billion invested in 2011 but will exceed the $23 billion invested in 2010,” remarked Tracy T. Lefteroff, global managing partner of the venture capital practice at PwC US.  “Software and Internet companies continue to be attractive industries for VCs since most of these companies tend to be capital efficient and don’t require large amounts of capital to operate.  VCs also find the potential for profitable liquidity events to be attractive for these companies.  On the contrary, given the regulatory challenges currently impacting the Life Sciences industry and the amount of capital required to fund these companies, it’s no surprise that investments in this industry have declined for the fourth consecutive quarter.”

The Software industry received the highest level of funding for all industries with $2.3 billion invested during the second quarter of 2012, which is the highest investment total for the sector since the second quarter of 2001.  This level of investment represents a 38 percent increase in dollars, compared to $1.7 billion invested in the first quarter.  The Software industry also had the most deals completed in Q2 with 290 rounds, which represents a 16 percent increase from the 251 rounds completed in the first quarter of 2012.

Life Sciences investing declined for the fourth consecutive quarter, most notably in the Biotechnology sector where $697 million went into 90 deals, representing the lowest quarterly total for the industry since the first quarter of 2003. 

Seed stage investments rose 33 percent in dollars and 15 percent in deals with $199 million invested into 63 deals in the second quarter. Early stage investments also rose, climbing 18 percent in dollars and 28 percent in deals with $2.1 billion going into 410 deals, the largest quarterly deal total since the first quarter of 2001.  

First-time financing (companies receiving venture capital for the first time) dollars increased 24 percent to $1.1 billion in Q2, and the number of deals rose 27 percent to 282 deals in the second quarter.   

Indy Project Could Mean Many New Jobs

Inside INdiana Business reports the new life sciences development stemming from a partnership between Clarian Health and the City of Indianapolis could bring 2,400 jobs to the capital city:

Mayor Greg Ballard and Clarian Health President and CEO Daniel F. Evans today announced plans to move forward with a $192 million development near 16th St. and Capitol Ave. downtown. The project will encompass nearly six city blocks in the area and will include a new state-of-the-art neuroscience center as well as an administration building.

When all phases of the development are complete, approximately 1,187 new jobs will be created and 1,225 jobs will be retained. The project is also expected to generate roughly 1,700 construction jobs along the way.

“The impact of this project, including more than 2,400 permanent jobs being created and retained, will provide a significant economic boost for downtown and for all of Marion County,” said Mayor Ballard. “This development also means remediation of brownfield sites and unsafe buildings, adding exempt properties back to the tax base, investment in public infrastructure, and investment in public safety.”

“The Neuroscience Center of Excellence will take patient care to the next level. This expansive, state-of-the-art complex will be the first development of its kind in Indiana," said Evans. "What this means is that people with epilepsy, multiple sclerosis and brain tumors, among other common and complex brain and spine disorders, can be assured they will have access to some of the top doctors and high-quality, leading-edge treatment and care."

All phases of the development add up to a $192 million total investment in Marion County and will move previously exempt properties back to the county’s tax base. Up to $38 million will come from the downtown consolidated TIF and will be used for public infrastructure improvements related to the project, such as road, sewer, and utility improvements. $6 million will be used to provide upgraded public safety facilities and parks amenities in the area, including a new high-tech fire station to replace the current IFD Station 5 located at 16th St. and Capitol Ave. $1.5 million will be used to remediate brownfield sites and unsafe buildings within the project area.

TechPoint Awards Honor Tech-Driven Companies, Nominations Due March 8

Indiana’s life sciences and health care technology companies are among those that may be eligible for recognition at the upcoming Mira Awards, presented by TechPoint:

TechPoint, the Central Indiana Corporate Partnership’s technology and entrepreneurship initiative, is now accepting nominations for its 2010 Mira Awards.

The annual Mira Awards put a well-deserved spotlight on the state’s most successful technology-driven companies, in industries like information technology, advanced manufacturing, the life sciences, and logistics. Mira Awards are also presented in categories like health care technology, new media innovation and corporate IT (recognizing the achievements of the internal technology departments of our leading companies). 

Mira is the largest and most prominent awards program of its kind in Indiana; finalists and winners receive significant publicity and valuable exposure to the high-tech and business communities at large.  Visit for more information – nominations are due March 8.