Whatever happened to that quaint little biotechnology industry that began in Massachusetts in the early 1980s?
In those days, drug development start-ups had a decidedly local flavor. The companies were often formed out of research initially begun in local university labs and led by researchers with long connections to area universities. Out-of-town spice was added to the local recipe with the entry of researchers and entrepreneurs who, disaffected by the traditional pharmaceutical industry based elsewhere, began to land in Massachusetts.
But it was still our own little industry flying under the radar.
Today, start-ups continue to be spawned from local research universities and hospitals and spun out of area companies, but the number of early stage companies entering Massachusetts from abroad is a rapidly growing trend. Era7, AB Therapeutics, and Intelligent Pharma (Spain), Alacrita, Xenetic, Innova and ArrayJet (United Kingdom), Rhenovia (France), ReproCell and Sony DADC (Japan), Batavia Biosciences (Netherlands), and Algeta (Norway) provide a sampling of the 2012 entries to Massachusetts from beyond U.S. borders.
The biopharma industry in Massachusetts has long been highly regarded globally. Its relative head start in biologics research allowed it to be well-positioned when a pivotal shift occurred in the pharmaceutical industry at the dawn of the 21st century. The traditional pharmaceutical industry, focused on developing chemical-based drugs, had long treated the biotechnology industry as its younger sibling. As the reservoir of new pharmaceutical products seemed to dry at the close of the 90s, however, more pharma companies began to look to the promise of biotechnology to deliver new generations of biologic drugs, which are derived from living organisms.
The march of the pharmaceutical industry to Massachusetts has continued steadily since, with Merck, Novartis, Pfizer, Takeda, Bristol Myers Squibb and Sanofi, among others, all landing in Massachusetts after 2000. These companies made significant investments in research and manufacturing in the area and greatly augmented Massachusetts’ reputation as a global leader in biopharma.
Business Opportunity
This repuWhatever happened to that quaint little biotechnology industry that began in Massachusetts in the early 1980s? tation for excellence, which is rivaled by only two or three other locations globally, has made Massachusetts a destination for earlier stage foreign companies as well.
My organization, MassBio, now hosts visits of 30 to 35 foreign delegations annually. Similar activity is occurring at the Massachusetts Life Sciences Center (MLSC), Massachusetts Office of International Trade and at area research universities and hospitals. These delegations often yield companies intent on locating operations in Massachusetts.
These smaller companies need more assistance upon arrival than larger, global companies. And in Massachusetts, there is a great capacity to assist these smaller companies. MassBio offers services to start-ups and industry networking that consistently surprises and impresses new arrivals.
MLSC has programs for early stage companies that can benefit foreign-based companies beginning operations here, such as its accelerator loan program, cooperative research grants and internship challenge. There are also many support firms, such as legal, accounting and real estate firms, that work with early stage companies from overseas.
Along with other industries that have imported people and ideas from overseas, the life sciences have helped create a regional economy that is more diverse and cosmopolitan than ever before.
For the foreseeable future, Massachusetts will be a destination for foreign companies in the biopharma industry, in particular. This provides an opportunity for local organizations that understand the different business practices and cultures found in other nations.
It might help to buy a foreign language CD for the commute. English is the language of global business, but it’s an appreciated effort to engage in the language that is across the table. Bon chance!
Peter Abair is director of economic development and global affairs at the Massachusetts Biotechnology Council (MassBio).
