Thursday, January 26, 2012

MassBio: Mass. biotechs raised most venture capital in 2011

By Lori Valigra

Massachusetts had its best year to date for venture capital in 2011, beating the 2010 historic high, the head of the Massachusetts Biotechnology Council told attendees at its policy leadership breakfast in Boston Wednesday.

“We believe Mass.-based companies raised more than $1 billion in VC funding last year. Massachusetts companies are now getting one-quarter of all biotech venture dollars in the country,” said Robert Coughlin, president and CEO of MassBio. He said the council still is reviewing the numbers. MassBio supplied a written copy of his remarks to Mass High Tech.

A recent report by PricewaterhouseCoopers LLP and the National Venture Capital Association found that Massachusetts had $740.7 million in 91 deals in the fourth quarter of 2010, higher than the $541 million invested in last year’s comparable quarter, with the same number of deals.

“Despite the economic downturn, despite the fact that I could count the number of recent IPOs on one hand, despite all of the challenges facing businesses looking for capital, the biotechnology industry in Massachusetts continues to grow,” Coughlin added. He attributed the growth to a motivated workforce, world-class academic institutions and medical centers, the forward-thinking venture community, innovative entrepreneurs and government partners that comprise the local life sciences cluster.

“This has resulted in significant public funding for research. Massachusetts researchers received $2.4 billion in NIH funding in 2012, giving us the highest per capita rate of NIH funding in the country,” he said.

In 2011, biopharma employment in Massachusetts reached 49,000 people, up 53 percent in the last 10 years. Biotechnology now accounts for $4.6 billion in payroll in Massachusetts, with the average salary topping $95,000. Middlesex, Suffolk, Essex and Worcester counties all rank in the top 16 densest counties in terms of biotech employment throughout the country.

Coughlin added that Massachusetts-headquartered companies have commercialized 145 drug products that have the potential to impact 160 million patients in the United States.

“Moreso through this recent economic downturn, the biotechnology industry is vital to the Massachusetts and regional economy,” he said. “And I am confident this industry is poised for continued growth — but only if we maintain an environment that protects innovation and access to cutting edge therapies.”

He said Massachusetts is a leader in health care policy and delivery, and will be a significant player as federal healthcare reform is implemented. “We in the Commonwealth have successfully met the challenge of universal access to healthcare, but now we are faced with the cost of doing so,” he said. “The life sciences industry is active in the discussion on payment reform… It is vital that any changes to our delivery and reimbursement systems protect a patient’s access to the innovative therapies and cures being discovered here every day.”