The region took a peek at the state of the global biotech and medtech industries, a sobering picture by all accounts, and offered insights for aspiring startups.
The Pittsburgh Technology Council's Life Sciences Network presented key findings from the Ernst & Young study, "Surviving the Squeeze: Trends in the biomedical and medical technology industries" as well as a glimpse of the coming "Beyond Borders global biotechnology report 2010."
Among the takeaways: Financing in the U.S. and Europe was up by 89% in 2009, venture capital investment was down by 24%, public and debt markets are thawing and, in general, "flat is the new up."
Joining the discussion was a panel of experts from the region and beyond. Here's a sampling of their insights on trends and strategies moving forward:
"The strong will survive," says John Manzetti, president and CEO of PLSG. "We're luckier than a lot of people because we have good organizations and institutions here." Startups that are making money have an edge in this economy. Out of 54 PLSG companies, 26 are generating revenue and three are undergoing their first clinical human trials overseas. "We're investing deeper in our best and brightest so they can get to the endgame."
The halcyon days of bigger money are gone for now, says Patrick Daly, president and CEO of Cohera Medical, tissue adhesive maker, which recently recruited four people to Pittsburgh. "Button up the presentation of what the company is all about," Daley advises. Cohera aspired from the start to be the next Respironics. "We took a different tact and a best practices approach. Sell them on your vision."
Avoid business models that are too capital intensive, notes Wesley Kaupinen, senior associate, Quaker Bioventures. With fewer funds available and less capital in the system, innovations must be of higher quality. "Surround yourself with venture investors who have deep pockets so your company can eventually fund itself."
"Make sure you come not just with the innovation, but a pile of information to make sure it works," adds Peter Schommer, vice president of business development for global healthcare company Covidien.
Writer: Debra Diamond Smit
Source: John Manzetti, PLSG, Patrick Daly, Cohera Medical, Wesley Kaupinen, Quaker Bioventures, Peter Schommer, Covidien
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