Venturing into Biotechnology: Strategies for Successful Growth in MD

On March 11, 2005, a group of industry professionals and full-time and prospective MBA students gathered for a day focused on the growing field of biotechnology. Kicking off the day was keynote speaker, Dr. Wei-Wu He, general partner and co-founder of Emerging Technology Partners LLC. Dr. Hes discussion focused on the importance of biotechnology in improving human life. He focused on a case study of the discovery of insulin as a life changing treatment for patients with diabetes. "Insulin," He said, was a perfect example of the team effort needed for success in biotechnology. From discovery, to research, production, distribution, testing, and funding, it took a small village to bring insulin into the $2B drug that it is today.

The life sciences industry has a dramatic impact for industry and humanity, according to He, especially with the aging population and a growing need for healthcare. He believes that the life sciences industry is in the infancy growth stages, and that many new opportunities are on the horizon now that the industry has a good understanding of the human genome. He referred to the Maryland / Washington, D.C., area as a hotbed for life sciences opportunities, with the capability to rival San Francisco's Bay Area. From federal funding entities (UM, NIH, FDA, and Johns Hopkins), to research tanks, regulatory bodies, patent offices, and biotech companies this area, He stated, has all the ingredients for success. He went on to describe five success factors for a biotechnology company: "innovative ideas, great people, financing, luck, and patience."

He also discussed the type of manager it takes for success in a biotechnology startup versus an established organization such as Amgen or Genentech. Most MBAs, He mentioned, migrate to the established organizations where a stable career path, funding streams, and organization await. Few managers, however, are willing to step into the risky and changing area of biotechnology startups, where funding can be provided, but product development is the key missing ingredient. As a whole, He displayed confidence in the Maryland / Washington, D.C., areas ability to become a major pharmaceutical force. With the marriage of banking and chemistry, bold thinking, serious commitment, and courage, He encouraged the audience to keep trying, and to remember that it sometimes takes a whole village to make something happen.

The conference also showcased a Maryland Resources Panel that included:

• Dr. Martha Connolly, director of the Maryland Industrial Partnerships, a program of the Maryland Technology Enterprise Institute
• Robert Eaton, president of MdBio Inc., a private not for profit corporation supporting the commercial development of bioscience in Maryland that provides funding and business development assistance to individual companies, offers education and workforce development programs, and serves as a resource for information about bioscience in Maryland
• Dr. Steven Fritz, director of technology transfer for the Maryland Technology Development Corporation
• Elizabeth Good, managing director of the Department of Business and Economic Developments Maryland Venture Fund. Dr. Good manages a portfolio of 100 active technology and biotech companies and eight venture capital limited partnerships

The day closed with remarks from Dr. Bruce Robertson, the managing director of Toucan Capital Corporation. Dr. Robertson has more than 15 years experience in venture capital, operations, and R&D management.

Gabriela Tobal, outgoing president of the BIOPhARMA Association, said, I thought that one of the greatest parts of the conference was watching the dialogue between the audience and the venture capital panel. It was a great example of the university acting in the way it should to promote the exchange of ideas and information. That, along with having the incredible levels of expertise in all the panelists and speakers, made the whole day really worthwhile.

Anuj Desai, incoming president of the BIOPhARMA Association, said "The Venturing into Biotechnology Symposium marked an important milestone for the business school. It demonstrated the commitment of the Dingman Center for Entrepreneurship and the BIOPhARMA Association to the advancement of biotechnology in the region. It showcased the resources available from the university to industry and served to strengthen the opportunities in terms of employment, relationship building, and funding for the students and the university. As the conference was widely attended by entrepreneurs, venture capitalists, local Maryland resources, and students; the future of these types of programs is exciting."

Janet Richert, faculty advisor for the BIOPhARMA Association and managing director for the Office of Career Management, said, This event firmly established Smith as the place where leaders in the biotech industry are now congregating to discuss important issues impacting the growth and survival of biotechnology enterprise in the Mid-Atlantic corridor.

For more information regarding biotechnology or the BIOPhARMA Association, please contactanuj_desai@rhsmith.umd.edu.

▓ Monisha Banerjee, MBA Candidate 2006, Smith Media Group