Catalyst - Fall 2011 - Welcome
Many companies are facing critical cross-road decisions which will shape the future and (hopefully) validate the years of research that have gone into their projects. In this issue of Catalyst, we will learn about the approach taken by TYRX, a wonderful example of a NJ medical device company which had to transform its commercial sales organization in order to be successful in the marketplace. We will see how a consulting firm uses its expertise to guide companies very early in their regulatory life-cycle to anticipate the possible results and be prepared to address multiple outcomes. It all comes down to risk management, monitoring and having plans in place to be both proactive, and when necessary, reactive. Embrella’s strategy of launching with an exit plan in place is the focus of this issue’s Case Study, and illustrates how that strategy resulted in a win for all involved.
Of course many decisions are based from that other variable – money! With all the modeling and risk management that can be enacted, it is often the Darwinian principle adapted for our industry that drives the decision – what has the best chance of getting me a return soonest. 2010 had a nice burst with a few life science IPO’s and help from the government in the form of the Qualified Therapeutics Discovery Project. The summer of 2011 is displaying turmoil in the capital markets and continued pressure on the financing of early stage companies. Congress seems focused on budget cuts making a return of the QTDP program unlikely for 2011.
State programs are continuing with the NJEDA announcing new programs, and several states in the region expanding or enhancing existing programs to spark innovation. An interesting new piece of legislation is The Life Sciences Job and Investment Act, which was introduced in July at an event at University City Science Center, one of the region’s leading technology accelerators, hosted by our friend and entrepreneurial advocate Stephen Tang, Ph.D., president and CEO of the Science Center.
- The act provides an exciting opportunity to promote medical innovation, life sciences education and job creation in our region and throughout the country, and includes allowing companies to: Hire additional scientists, researchers, and comparable personnel engaged in life sciences research in the U.S.;
- Make new investments in research at American universities and post-graduate institutions, state-sponsored incubators, and comparable scientific organizations; and
- Invest in new laboratory and related life sciences research facilities in the U.S.
"This legislation will help strengthen the biotech sector's culture of innovation, discovery, education and job creation across the nation," said Dr. Tang. "The Act is key to the long-term success of this crucial industry sector and will help us maintain our competitive edge as we ensure that biotech in the region – and the entire country – continues to grow and thrive. We look forward to helping our nation's innovators advance science and technology and invent new products that will change the world – while creating new jobs and economic growth along the way."
We know our legislators can see the benefits of programs such as this. We hope they can find the budgetary resources to support innovation that will help drive the economy forward. Enjoy.
EisnerAmper's Catalyst: Fall 2011