The NC CED Conference Biotech Show from Feb 22-23rd
CED’s Biotech 2010 was held at the Raleigh Convention Center on February 22 and 23. According to the opening remarks of Joan Siefert Rose, President of CED, the conference boasted the largest collection of venture capitalists ever collected in North Carolina.
The conference focused on the business of biotech, with special attention paid to mergers, partnering, and all other ways to find funding. The major topic of discussion was adapting to the current economic environment. With the United States economy continuing to show no major signs of improvement, funding for research and development is more difficult to find. In addition, the development of biotechnologies and the possibility of health care reform in Washington are giving non-traditional business models more of a chance to come to the forefront, creating more uncertainty for investors.
For example, many panelists indicated that they felt the era of the “blockbuster” pharmaceutical drug was over. The idea is that personalized medicine will offer a new business model with a focus on drugs with a smaller, better specified target population. Research in biomarkers is expected to lead to continuously improved diagnostics and the possibility of combining diagnostics with therapeutics in ways not possible before.
The role of the initial public stock offering (IPO) in the panels also indicated a new era in financing. In today’s economic environment, the IPO, according to most panelists, is no longer a good option for most private start-ups. RTP’s own Talecris received kudos for being the most (and possibly only, depending on who you ask) successful IPO of the last year in the biotech industry. With the stock market and venture capital looking for safer investments, most panelists found biotech companies looking for increasingly more “non-dilutive” capital, which includes corporate partnerships/alliances, government funding, and grants.
The highlight of the conference for many attendees was a powerful speech given by Billy Tauzin, President and CEO of Pharmaceuticals Research and Manufacturers of America (PhRMA). Tauzin served Louisiana’s third district in Congress for 25 years – from 1980-1995 as a Democrat and from 1995-2005 as a Republican. Discussing the current political environment, Tauzin bemoaned the current state of hyper-partisanship. He warned against the use of reconciliation or the so-called “nuclear option” for passage of health care reform in the Senate, feeling that the use of either could only make the partisan political environment worse and hurt both political parties in the future.
Mixed in with Tauzin’s highly relevant political observations was a highly personal story about his own battle with cancer. He thanked the members of the audience for their work and warned against another type of partisanship within the science community. In the middle of a conference that mixed large pharmaceutical companies and small biotech start-ups, he emphasized that it is all one industry and encouraged the attendees not to separate the interests of PhRMA from biotech in general.







