A MATTER of Fact

MATTER

MATTER, a center for Health Tech entrepreneurship is under development in downtown Chicago, IL.  This 25,000 sq ft non-profit facility will provide a unique environment for healthcare IT and biotechnology entrepreneurs to interact, share resources, exchange information, access industry experts and local talent.  Building on the success of the digital startup hub,1871, MATTER hopes to serve as a place for entrepreneurs and business experts to foster increased collaboration and support innovative ideas to create new products and services for healthcare.  In addition this shared environment aims to:

  • Increase local risk capital investment
  • Attract talent from around the world
  • Create jobs in Illinois

Along with private and shared office space, MATTER will provide space for more casual meet-ups and large presentations.  The startup BioHub will also host classes, workshops and events designed to encourage problem-solving by providing entrepreneurs with new skills and generating novel ideas.

The life science industry in Illinois has a $98 billion economic impact.  Following a             $4 million investment by the state of Illinois, MATTER is currently being built in Merchandise Mart in downtown Chicago, in close proximity to 1871, in what now is being called ‘Silicon hallway.’  Based on the success of 1871, generating >200 startups and >1000 jobs since its inception in 2012, MATTER hopes to become the central focal point for the Healthcare and medical devices communities in Chicagoland.

Healthcare and biotechnology startups and innovation in Chicago are often viewed as being challenged by a lack of density and connection between its universities, hospitals, biotech’s, and pharmaceutical companies.  MATTER will be a place for very early stage incubation and company formation, a place for people to meet and to learn.  By putting diverse expertise in direct proximity to one another MATTER hopes to foster this interaction and to stimulate innovation, entrepreneurship, investment and the overall goal of forming new companies in Chicago.

While it remains to be seen whether MATTER will deliver on its potential to promote and support entrepreneurship in Healthcare and biotechnology, the buzz is certainly in the air and we are excited to see what it can deliver.  MATTER is scheduled to open in Autumn 2014.

Follow MATTER on Twitter: https://twitter.com/MATTERChicago

View the MATTER website: http://www.matterchicago.com/

View the MATTER Facebook page: https://www.facebook.com/pages/MATTER-Chicago/409178175894906?fref=ts

By Ben Hall & Daniel Leventhal

Thank you to Steven Gould and Andrew Cittadine from MATTER.

Biotech investments in the USA

In the past four years there has been a growing interest in investment opportunities into biotechnology companies. Since 2011, many young biotech companies have reached    $1 billion or higher valuation in market prices.  So far this year has also been very successful for biotech’s.  Almost half of the initial public offering (IPO) companies in the past couple of months have been development-stage biotech companies (http://ow.ly/uVy6Y).

There are a few reasons for investors growing interest in biotech companies.  Drug testing is now commonplace and before going public many biotech companies have moved drugs into clinical studies, dramatically improving their risk profiles for investors.  Newly developing biotech companies also benefit from a faster regulatory process.  In addition, advanced technologies have enabled them to develop drugs for patients with specific genetic markers, leading to smaller and cheaper clinical studies, and faster approval from Food and Drug Administration (FDA).  Many biotech companies have found their niche for targeting rare diseases and have been very successful in developing orphan drugs.  For example, BioMarin has developed a drug Vimzim for treating Morquio A syndrome.  Since there are no other treatment options for this rare disorder, Vimzim is expected to bring high revenues because of its high success rate for treating this rare disorder.

Many previously small scale biotech companies such as Gilead Sciences and Celgene have become very successful and now are worth more that some large pharmaceutical companies. Gilead, a developer of hepatitis C drug, is predicted to grow earnings more than 30% annually for the next few years. Celgene, company focused on development of cancer and immune-inflammatory-related drugs, is expected for long-term earnings to grow nearly 25% a year on average. These are very encouraging numbers considering much slower growth in other sectors.

By Ketrija Touw

Welcome to the Chicago Biotechnology Entrepreneurship Ecosystem

Graphic 2

The city of Chicago and the state of Illinois has long been interested in cultivating and supporting a vibrant biotechnology sector. While attracting and retaining large biotechnology and pharmaceutical companies, such as Takeda Pharmaceuticals, Abbvie and Baxter Healthcare, is one part of this effort, supporting life science technology development from the ground up has also been a major focus. In fact, Chicago was one of the first areas of the country to create a biotech incubator with fully functional wet lab space when they opened the Chicago Technology Park (CTP) in 1985. Since then, the Second City has been looking to mirror other more established biotech communities/cultures, such as Boston or the San Francisco Bay area, in an effort to create an atmosphere of innovation and commercialization, often referred to as a biotechnology entrepreneurship “ecosystem”. A timely example of such efforts is the recent announcement that Governor Pat Quinn, with the support of Mayor Rahm Emanuel, will be providing $2.5 million for the creation of the medical technology incubator/community hub MATTER, which will be housed in the Merchandise Mart directly next to the wildly successful digital startup space 1871.

So, what is a biotech entrepreneurship ecosystem and what does this landscape look like in Chicago?

In general, an entrepreneurship ecosystem should provide an environment where technologies and ideas can seamlessly travel down the path to commercialization. Fundamentally this requires (1) technology creators (such a University researchers), (2) communities which support the evaluation of the idea and the creation of a startup venture, (3) sources of funding to support the development and commercialization process, and (4) affordable space where budding startups can develop their products and conduct business (such as incubators). Additionally, these ecosystems are often supported at a high level by industry associations which provide leadership, an overarching vision for the community and lobby government at the state and national level to support the efforts of their local biotech community. Groups like the Illinois Biotechnology Industry Organization (iBIO) or the Chicago Life Sciences Consortium (CLSC) promote the creation of public and private initiatives to bolster the local biotechnology industry, such as the creation of incubators, the promotion of industry conferences and creation of angel investment tax incentives. An outline of these basic components which make up a biotech entrepreneurship ecosystem is shown above, with examples of the various organizations established in Chicago. This list is not meant to be exhaustive, but to give you an idea of how this complex environment is made up.

Ok, so those are some of the resources established to support local biotech innovation, but how does the commercialization process work?

Typically, most inventions and ideas develop as a result of research conducted at one of the three major Universities in Chicago. These inventions are managed by the University’s Technology Transfer office and, if preliminary analyses confirm the commercial potential of the technology, they are either licensed to an established company or often a startup is formed. Startups then have a variety of entrepreneurship support organizations at their disposal, such as University run entrepreneurship centers or mentorship organizations like the Chicago Innovation Mentors (CIM) or the iBIO sponsored PROPEL. Additionally, a startup can apply for physical office space or wet/dry lab facilities at an affordable cost at a variety of biotech incubators in and directly surrounding the city. These spaces, which have more recently been referred to as med-tech community hubs, range in capabilities, are a place where entrepreneurship programming is offered and is where entrepreneurs, investors and professional service providers can meet, share insights and conduct business.

What opportunities are available within the greater biotech ecosystem for early stage scientists interested in entrepreneurship and biotechnology development?

As a scientist one obvious way of getting involved in the entrepreneurship scene is by commercialization your own invention or idea, however this is often not the case for the majority of researchers. On the other hand young scientists, such as graduate students and post-docs, have analytical and project based skill sets highly valued throughout the commercialization process. Technology Transfer offices are often in need of individuals to assist in the evaluation of disclosed technologies and sometimes actively seek out students with applicable backgrounds to participate in office projects. Additionally, organizations which provide mentorship to early stage startups may have positions for students and post-docs to carry out various tasks similar to a consultant on a volunteer basis. Indeed the Chicago Innovation Mentors has a Fellows program already in place for graduate students and post docs at the University of Chicago, and has plans to extend this program to other Universities. Finally, if you are interested in gaining biotech entrepreneurship experience try contacting a local startup company to volunteer services in exchange for meaningful professional development; list of companies and contact information can often be found on biotech incubator websites. If you are looking to get in at the ground level you can also look into business plan development or startup competitions, such as the University of Chicago’s New Venture Challenge, where participants often seek out scientists to become a part of their teams. So whether you have a great idea or you are looking to learn more about biotechnology entrepreneurship, make sure to take advantage of the vibrant startup culture right at your doorstep.

By Daniel Leventhal