The Life Sciences in New York State

IBM selling space in Fishkill

As reported in today's Poughkeepsie Journal, IBM is selling buildings consisting of over 900,000 square feet of lab and office space in East Fishkill. What's especially interesting is this tidbit:

Chip makers are the obvious target, but there is also office space and raised-floor computer space. Conroy said targets include pharmaceutical and biotechnology firms.

IBM, of course, has been in this area for decades. Given its close proximity to corporate headquarters, New York City, and Route 84, it's a great place for a facility like this. Not to mention the fabulous quality of life available here for its employees. Part or all of this facility would be a great site for both existing companies seeking to expand and for start ups. Companies developing life science hardware (e.g., diagnostics), software, or similar products might benefit greatly from being located here, given the wealth of expertise already concentrated here. I'll be keeping a close eye on this one.

Empire Zones - A Great Program in Jeopardy?

This interesting article caught my eye this afternoon. Empire Zones are areas ranging from cities to counties in New York in which new businesses receive a number of state tax benefits. As a CEO from Plattsburgh said once, "If I buy a paper clip, it's state tax free." This is a phenomenal program, as it provides state tax relief to small companies who need to conserve cash, provides tax incentives for hiring new employees, etc. Here's the official Empire Zones site.

I think the Assembly, Senate, and Governor should do everything in their power to extend this program to 2015, as proposed. The current agreement would extend it to 2015, plus make a number of additional, positive changes to the program. One of the changes proposed will tie more closely the relationship between incentives and job creation.

From a venture perspective, this is a critical program for us in New York. I'm going to send a quick note to my Assemblyman tonight.

Stem cell research

New Jersey is making a big push to entice stem cell researchers from New York City to move their labs from New York into New Jersey. Article here.

Advertisements have appeared in the New York Times and other publications touting New Jersey's $150 million investment in stem cell research. In one ad, acting New Jersey Gov. Richard Codey says the state is launching an international search for the world's top scientists to staff the New Jersey stem cell research institute.

Stem cell research certainly has enormous potential for treating diseases such as Parkinson's Disease and diabetes. Given the budgetary issues here in New York, this may be a losing battle, which would be unfortunate. Even more unfortunate is that much of the stem cell research being conducted is too immature for company formation and angel/seed/venture investing.

Re-Imagine, by Tom Peters

Just finished Tom Peter's latest book, Re-Imagine!This book is no doubt one of the best business books I've ever read. Well, to call it a "business" book is a bit narrow. It is business, but it's more self-help and career help than anything. A personal guide for introspection, and helping you carve out an interesting, successful, and "WOW" career. I'm reading this at a time when I'm leaving my comfortable cubicle job and striking out on my own, so the timing for me is perfect. Importantly, it offers ME clear guidance with respect to how I should be thinking about my work, my projects, my deliverables, the people I want to interact and work with, etc.

Having said all this, it's not a book for all. It's graphically intensive, to the point where some of the pages are difficult to read. There is a smattering of "colorful" language throughout. Dr. Peters also uses extreme (but accurate) examples to illustrate his points, which to some may seem like using the exceptions to draw conclusions. I think he also runs out of gas towards the end of the book.

Regardless, it's a wonderful, wonderful (sic.) book which I fully recommend.

Hillary Speak

Hillary speaks:

A group of prominent executives and investors visited Buffalo on Monday as part of an effort to kick-start growth in life science business, which is seen as an antidote for the ailing economy.

"It's my hope we will see some partnerships, new investments, some capital flowing to the companies here," said Sen. Hillary Rodham Clinton, co-sponsor of the event with New Jobs for New York, a foundation she launched.

Clinton assembled 14 industry leaders to meet with 38 local companies and to learn about the region's scientific strong points. Executives from Pfizer, Johnson & Johnson and other companies joined deal-makers from venture funds like Atlas Venture and Oxford Bio-Science Partners, both of Boston.

While Buffalo isn't a magnet for venture capital or drug development, it can still leverage its research strengths into job growth in the vibrant life science industry, executives said.

More here. Of course, I fully agree. What? Me agree with Hillary? When it comes to the potential for the life sciences in NY, yes, you bet.

$49 BILLION and counting

Pharma has somehow figured out a way to spend $49 billion dollars. Incredible. Any chance I can have $100 MM of that?

Biopharmaceutical Industry Research & Development Tops $49 Billion in 2004

    SAN FRANCISCO, March 17 /PRNewswire/ -- Burrill & Company, a San Francisco
based life sciences merchant bank announced today that it has joined with the
Pharmaceutical Research and Manufacturers of America (PhRMA) to report
industry-wide biopharmaceutical research and development (R&D) expenditures of
$49.3 billion in 2004.  These results will be published today in PhRMA's
Pharmaceutical Industry Profile 2005.
    This new figure includes both biotech and pharmaceutical investment by
PhRMA members as has been traditionally compiled in PhRMA's annual membership
survey ($38.8 billion), and an estimate of non-PhRMA member biotech companies'
R&D investment ($10.5 billion) as compiled by Burrill & Company.  This
represents the first time a biopharmaceutical industry-wide R&D figure has
been reported.
    "This combined number is truly more representative of the total U.S.
biopharmaceutical R&D investment.  For the first time, we now have a number
that expresses the biopharma industry as a whole," noted G. Steven Burrill,
CEO of Burrill & Company.
    Burrill routinely reports R&D Expenses among other key financial
parameters for the universe of U.S. publicly listed biotech companies through
its annual biotech report (sourced from company reports filed with the SEC).
    To create a comparable report additive to PhRMA's annual membership
survey, Burrill & Company applied a set of pre-determined criteria to their
annual biotech report to identify and select non-member Companies.
Specifically, 1) companies must be based in the United States of America,
2) companies must not be a member or member subsidiary of PhRMA, and
3) companies must meet the "human healthcare focus" test, i.e., their R&D
Expenses are principally for research and development of new medicines for
healthcare.
    "Increasing medical innovation is the result of biotechnology and
pharmaceutical firms working in collaboration with each other and other
research institutions to create drugs to alleviate sickness and improve
wellness," said Burrill.

    About Burrill & Company
    Burrill & Company is a life sciences merchant bank, focused exclusively on
companies involved in biotechnology, pharmaceuticals, diagnostics, human
healthcare and related medical technologies, wellness and nutraceuticals,
agricultural technologies, and industrial biotechnology
(biomaterials/bioprocesses).
    For more information about Burrill & Company, please visit our website at

http://www.burrillandco.com and the Burrill Datacenter at http://www.burrilldatacenter.com.

Son of Amtrak?

State Senator Joe Bruno announced today a $5 MM study to look at the possibility of building a high speed rail line from Buffalo to NYC...essentially following the NYS Thruway. I found this interesting:

The state and Amtrak made a deal in 1998 to upgrade the rails between New York City and Albany to allow high-speed passenger service, but the improvements were never made. The state has filed a suit in federal court to force Amtrak to abide by the 1998 deal, or pay the state nearly $500 million.

Given what we learned about Amtrak yesterday, how will Amtrak pay New York $500 million dollars? Assets after liquidation? Will this mean a significant period without ANY passanger rail service in New York? 

I think this is wonderful idea, if it can ever be pulled off. With rail service, the best long-term decision may be to rip it apart and start over again...in theory. The problem with rail in the US (versus Europe) is that it's more expensive that driving! Even with tolls and gas and wear and tear, train is still more expensive. But, it's even more than that. Driving on the open road has always been a very American thing to do. We were a train society, but now we are a car and plane society. I'm not convinced that a rail system, even a heavily subsidized one, would ever fly (cf., Amtrak).

Now, if the trains and tracks are cheap to operate, then this may have a shot. Another potential way to reduce costs is if the tracks were built on state property (e.g., right down the middle of the Thruway), thereby eliminating the cost of leasing land rights from Amtrax, CSX, or whomever else owns the land upon which the current rails lie.

I certainly hope something emerges from all this. NY needs cheap transportation, and I need to get off the Taconic.

American Bio Medica

American BioMedica is a Kinderhook (Quiz: Where is Kinderhook? Bonus: Which former President hailed from Kinderhook?) based diagnostic company with its share of commercial and leadership problems. However, this announcement of a European distribution agreement is welcome news.

Amtrak

There's a article on page D1 of today's Wall Street Journal on Amtrak's current financial situation...and it sounds rather bleak. Apparently, if the federal government were to cut off funding today, Amtrak would only have enough working capital fund current operations for "barely a month." I quote:

Without federal subsidies, Amtrak probably could run its current operations for barely a month. Long-distance trains with the blue Amtrak logo would be stopped in their tracks, as Amtrak runs out of money to pay crews, buy fuel and compensate freight railroads for use of their rails. The Acela Express, which runs between Boston, New York and Washington, D.C., would likely be parked.

I find this to be a real tragedy. I just returned from a round trip in the Acela between New York and Washington. The cars were very clean and comfortable. The snack car was well stocked (Bass Ale on tap!). The lavatories were clean. There were outlets along the side....I can go on. It was not cheap (~$350 round trip), but it was a last minute decision to go on this trip. By plane, this would have cost me $600 from La Guardia and $800 from Stewart Newburgh...and that's with checking prices on www.mobissimo.com, which finds some very good fares.  And much more relaxing than driving. I polished off a good chunk of Re-Imagine! on this trip.

I mention this because one of my favorite trips is the NYC to Albany trip. If you sit on the Western side of the train, you are treated to some stunning views of the Hudson River and the Western shore. Once my initiatives got  underway, I planned on becoming a regular on the Poughkeepsie to Albany route. But, given this news, I may have to revert to my alternative for traveling to Albany...the dreaded Taconic Parkway. Ugh.

Can a private equity firm comes in and capture the NorthEast Corridor assets? Maybe outsource the workers to a new company to cut costs and keep the lines running? Heck, if Bain Capital wants to buy the NHL, why not buy Amtrak NorthEast? Seems like a more reliable source of income to me versus hockey, but then again, I'm not much of a hockey fan to begin with.

Email Aggregator?

How many email addresses do I have?

1. Work
2. One for initiative I'm trying to get off the ground
3. Another for another initiative I'm trying to get off the ground.
4. A Yahoo address for general stuff (this blog, online orders, etc)
5. Home email I share with the Mrs.
6. Not one but two alumni email addresses which I do not use

That's 7 email addresses! Imagine having to remember to check seven answering machines?

What's irritating is the incompatibility of them all. I'd pay a small fee to have them all funnel into separate Inboxes in Outlook, and couple that with an RSS feed as well. That would be nice.