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California Biomedical Companies Cite Lack Of Funding As Major Concern

January 8, 2013
As I have mentioned in past blog posts, the U.S. bioscience industry has demonstrated stability through turbulent economic times. While not immune from the recession, this industry generally fared much better than the overall economy and has remained a net a job generator.

In April of 2012, the White House released the National Bioeconomy Blueprint noting that bioscience industries are “a large and rapidly growing segment of the world economy that provides substantial public benefit.”

So it's not surprising that California, the birthplace of biotech, continues to lead the country (and world for that matter) in life sciences. Twenty-one percent of the nation’s current biomedical R&D pipeline comes from California laboratories. Furthermore, the state remains the nation’s leading source of biomedical companies, jobs and new treatments for patients.

Though, California faces the same challenges at those who hope to usurp its position - namely, the struggle to generate capital to fund innovation research — whether it’s finding a cure for cancer, protecting us against bio-terror threats, or creating renewable energy and renewable chemicals.

Unfortunately, one of the lingering after effects of the 2008 financial crisis is a heightened risk aversion among venture investors and the limited partners who have been a main source of biotech industry funding.

Just today, a report on California’s biomedical industry was presented to a gathering of industry executives in San Francisco. Supported by two of BIO's allied state organizations, California Healthcare Institute and BayBio, the report identifies several realities that affect the entire industry.

The 2013 California Biomedical Industry Report includes findings from a survey of 175 biomedical company CEOs, who report significant improvements in the FDA regulatory process over the past year and a notable reduction in project delays due to regulatory issues. Despite this progress, biomedical companies say that lack of adequate funding, government pricing intervention and the FDA regulatory environment represent the biggest risks to future success in biomedical innovation.

Download the latest information on the California biomedical industry now: