Law under the Microscope

Biosciences in Idaho to be Highlighted at Legislative Dinner this Month

Just to put in a shameless plug, the Idaho Bioscience Association (BioIdaho - the state affiliate for BIO) is presenting a Legislative Dinner on Feb. 28th in Boise, Idaho to set out and define for legislators and other attendees the infrastructure in place in Idaho to support the biosciences and steps the state should consider to foster the growth of the industry. In addition to a spectacular roster of speakers from academia, government and the private sector in Idaho, Carl Feldbaum, Past President of BIO, and G. Steven Burrill, CEO of Burrill and Company and the author of the bible for stats on the industry each year, will be presenting their view of Idaho's future.

More details on the dinner may be found here.

California Stem Cell Board to Delay Giving Out Money

Robert Klein, the new head of the California Institute for Regenerative Medicine, is showing that he is at least listening to critics and watchdogs of the stem cell research initiative. Since he was installed as the head, several group have loudly complained that the ethical guidelines for the board are not adequately in place and money should not be given out until they are.  That is, admittedly, a very smart criticism of the board.

Mr. Klein has promised that no money will be given out until those ethical guidelines are decided. He raised the ire of several groups when he mentioned (before the Board had convened) that he believed they would be starting to hand out money in May. If you know anything about groups that give out grants, this is moving pretty darn fast, especially when you don't have all of the procedures yet in place. Mr. Klein explained that May was not meant to be a hard-and-fast deadline. He likely just figured he wanted to say some date that wasn't absolutely ludicrous but was fast enough that the Board would have to start hopping, as one of the most difficult things about being on any Board is how long it can take for them to even convene. 

Heck, if they can meet by May and have those ethical guidelines in place, I'll be pretty impressed with their efforts.

By the way, for those readers in California, there will be an open meeting of the Board Committee for the IRM on Jan. 24. The places, time and agenda for the meeting can be found here.

More States to Push for Stem Cell Research Funds

It's already started - now that California has passed Prop. 71 to allow for $3B to go toward stem cell research over 10 years, other states are sprinting to offer funding for stem cell research within their borders. For the most part, these states fear a drain to California of companies and scientists.

Support for Fledgling Life Science Companies - Savvier and More Comprehensive

Coming off of a large project that kept me from blogging for a bit there, I was thinking more about how great some of the incubators I've recently visited are both for the companies they house and for the regions that host them. The energy you feel in these places, and the enthusiasm that the incubator directors display is infectious and makes you smile from seeing their passion and love for what they do. So I'm a big fan of incubators (the well-run ones, that is).

As more states, cities and regions struggle to find ways to encourage and support more innovation and entrepreneurialism, one idea that is starting to catch on and make some progress is incubators.  These have been around for manufacturers and tech companies for years, and several incubators for software and e-companies came and went during the late 90s. More and more incubators are now popping up that are either exclusively for life science companies or that house some life science companies among other tech companies. These can be critical for the very early-stage companies, before they get the larger rounds of funding.

            

Stem Cell Research Sees Renewed Competition and Support

Following the passage of Prop. 71 in California, which allocates $3BN over 10 years to the California Institute for Regenerative Medicine (which will give out the grants and loans to the California universities and related labs) for stem cell research, most thought that it would reinvigorate the industry which had been in a bit of a lull due to the ban on federal funds for therapeutic cloning. But few predicted that it would be reinvigorated so quickly and with such enthusiasm.

Proposition 71 to Fund Stem Cell Research Passes in California

In addition to the big election for President and the myriad of other offices that were up for grabs last Tuesday, many ballot initiatives in the states made big news. Californians passed Proposition 71, which will put $3BN ($300MN for each of the next 10 years) toward stem cell research and, it is hoped, make California one of the world leaders in the industry.

SEC Examining Biotech Companies

Recently, we've seen Eliot Spitzer, and then Congress breathing down the necks of biotech and pharma companies regarding the disclosure (or lack of disclosure) of their clinical trial results, and now the SEC is getting into the act. While this is not the first the time SEC has looked into potentially nefarious wrongdoings at biotech/pharma companies (for example, ImClone), it sounds like the SEC is taking a particular interest now with whether public companies are disclosing any negative clinical trial results on a timely basis.

It looks like at least the SEC's Boston office is scrutinizing the disclosure forms for regional companies:

Little Things Mean a Lot

As in little tax stimulus packages, little upgrades to the corporate laws of the state. Some Massachusetts life science companies say the new laws were just what they needed to be able to stay in the state.

Proposition 71 in California for Stem Cell Research

There are a number of Propositions on the ballot for California (including mandatory employer-given health insurance), but Proposition 71 for the funding of stem cell research in California looks like it will be one of the most controversial. The Proposition would approve $3 BN (yes, three billion) in bonds for stem cell research and create a California Institute for Regenerative Medicine (human reproductive cloning would be prohibited). The total cost for this would be $6 BN, paid off over 30 years.

Supporters of the Proposition laud it as a huge boost to the California economy in the research and likely businesses it will create. Opponents claim that the $6 BN price tag is way too high for a state in financial crisis and also oppose stem cell research on ethical or religious grounds.

Help from the Taxman

Many states are trying to help out and attract more biotech companies to their states and generally are able to offer tax credits as incentives. Some of these programs include a development tax credit in Arkansas, R&D tax credits in Iowa and tax breaks for investors in Wisconsin.

Pennsylvania has also implemented some of tax breaks directly for biotech companies, but has also realized that oftentimes biotech companies take years before they turn a profit and really can use those tax credits. So they've offered a real deal for those who have credits they can't use - a chance to swap these credits with other companies who could use them.