Virginia Bioscience Blog

New VP for BIO State Government Relations Announced

2012-01-19T14:21:00.001-05:00

The Biotechnology Industry Organization (BIO) announced yesterday that Fritz Bittenbender has been hired to serve as Vice President, Alliance Development and State Government Relations. Bittenbender brings extensive experience in government affairs and alliance development, most recently serving as Vice President of Public Affairs at Cephalon and as President of the CephalonCares Foundation.

Bittenbender will spearhead BIO’s engagement in and support of state-level legislative and regulatory issues while promoting the responsible development of the bioscience industry and better understanding of policy issues critical to the industry. He also will lead BIO's engagement with stakeholder organizations, including patient and disease advocacy groups.

“We are extremely excited to welcome Fritz Bittenbender to our team,” said BIO President and CEO Jim Greenwood. “His considerable experience in public policy and deep understanding of the biotechnology industry will be a tremendous asset for our members. Fritz's specific experience and expertise with state level public policy and regulatory issues will help us continue to advocate for public policies that enable our members to develop breakthrough technologies to cure disease, protect against bio-terrorism, feed the hungry, and clean our environment.”

Previously, Bittenbender held cabinet level positions in the offices of Pennsylvania Governors Tom Ridge and Mark Schweiker. Additionally, Bittenbender served as president of Pennsylvania Bio, an affiliated organization to BIO.

“I have known and respected Fritz as a fellow public servant to the Commonwealth of Pennsylvania for many years. Furthermore, his leadership and organizational support for the 2005 BIO International Convention, held in Philadelphia, were instrumental to the success and importance of the industry's biggest annual event,” said Greenwood.

5 Tips From an Accidental Entrepreneur

2012-01-17T15:45:00.003-05:00

Nice article in Inc. on Hampton Roads based Joe Hill, President of Aeir BioLogic who spoke at our Biotech at the Beach Luncheon last August.

In 2010 Hill lost his job with a biotech firm, so he took what he calls “the first job available” as a financial planner. “My new boss told me to find a market to focus on,” he says, “and since my two sons were diagnosed with autism, I decided the market I really understood was parents of kids with special needs.”

After a presentation one potential client said, “I really appreciate you talking to me about financial planning, but what I really need are affordable tools that can help my autistic son learn.” Specialized equipment costs thousands of dollars, and software runs $300 or more.
“Her comment really struck a chord,” Hill says. “My boys loved Angry Birds. They like touching objects on the TV to try and make them move, too. I knew if they could tap on words or pictures and hear them, they could learn more easily. Plus they wouldn’t stop playing with my iPhone until the battery ran out, so I knew there was something there, especially since autistic kids typically won’t sit still for long.”

He set out to develop an application that could make learning words simple and fun, and in November launched Aeir Talk, a $19.99 iPad app that lets parents create an unlimited amount of cards customized with personally recorded voices and pictures they take.

So what did Hill, a first-time entrepreneur, learn about starting a business?

If your idea doesn’t provide long-term benefits, you need a new idea. Everyone downloads what seem like cool apps they only end up using for a day. Hill changed his product a number of times during the development stage to avoid that. For example, the decision to make the app fully customizable was especially tough to make, but he realized that if a kid sees his mom’s picture he expects to hear his mom’s voice. Hill did what was necessary to ensure the app has lasting value, allowing parents and kids to really make it their own. The development cycle would absolutely have been a lot faster and a lot less expensive, but the app would also have been far less beneficial.

Think about solving broader problems. Children with special needs don’t just speak English and live in the U.S. Hill made the app language independent so if a parent wants her child to learn Spanish they simply record Spanish words. The app doesn’t care. In the end Hill built an app to help kids with special needs, but it can help any child learn. Definitely focus on a specific audience, says Hill, but never stop thinking about broader applications and markets for your product.

Always look for serendipitous relationships. Hill pitched his idea to everyone. Most people loved it but no one wanted to become an investor. Then he talked to Zack Miller at We Are Titans, a product development and consulting firm, and we struck an equity deal. Not only are they great developers but Miller is also great at making contacts and leveraging relationships. Good teams are made up of people who are different. Be open and don’t look in the normal places for partners.

You don’t know what you don’t know, and that’s okay. If you need help, the best thing you can say to someone is, “I don’t know what I’m doing. Can you help me?” People naturally like to help people. Be honest, be humble, and ask for help. When you’re willing to admit you don’t have all the answers, people respond.

No matter what you’re doing, never be ashamed of it. Hill took a job in the morning scrubbing warehouse floors and another at night carrying bags and scrubbing floors at a hotel. (He wanted jobs that allowed flexible hours so he could start his company.) Every chance he got he told people about what he was doing. Many had relatives with kids with needs. Do whatever you have to do to keep rolling, and never be ashamed of what you do. The end justifies the humble means.

By: Jeff Haden
Inc.

Washington Times: McDonnell aims to lure biotech jobs to Virginia

2012-01-05T15:09:00.003-05:00

RICHMOND — Virginia Gov. Bob McDonnell said Wednesday he is seeking nearly $37 million in his biennial budget to lure businesses and jobs to the commonwealth, putting much of the focus on life sciences and biotechnology — sectors that are staples of the economy of neighboring Maryland.

Some $10 million will fund a life-sciences package that could go toward supporting research at colleges or businesses.

Lt. Gov. Bill Bolling, the state's chief jobs-creation officer, said Virginia has completed 671 business deals since the start of the administration. But life sciences and biotechnology — Maryland's bread and butter — are areas where the state intends to step up its efforts.

"There, frankly, are a lot of states around the country over the course of the past several years who have been a lot more aggressive in the area of biotechnology and life sciences than we've been," he said. "Places like Massachusetts and Texas and Pennsylvania, even Maryland has been much more — well, I shouldn't say 'even' Maryland."

"Maryland," the governor chimed in.

"Maryland has been much more aggressive in some of these biotechnology, life sciences areas," Mr. Bolling said.

The quality of Virginia's health care facilities, its universities and pharmaceutical companies make it primed to expand in those field, Mr. Bolling said.

"We believe this is a sector we can compete in more effectively than we have in the past," he said. "Some of these new and emerging biotechnology and life-sciences companies that we've had a hard time tracking, frankly, we're going to get in the game on those, because it is a growing area of the economy."

Mr. McDonnell, who has consistently said he wants Virginia to be the "Energy Capital of the East Coast," also proposed $500,000 to go toward offshore wind-energy development — another of Maryland Gov. Martin O'Malley's legislative priorities in the coming General Assembly session.

The largely friendly regional rivalry between Maryland and Virginia took a sharper political edge last year, when Mr. McDonnell and Mr. O'Malley took the reins as chairmen of their parties' respective governors associations.

Virginia famously beat out Maryland, as well as the District, to lure defense contractor Northrop Grumman's headquarters in 2010, thanks in part to an incentives package worth between $12 million and $14 million. Last year, engineering giant Bechtel announced it was moving its corporate headquarters from Frederick to Fairfax, bringing with it 625 jobs and an $18 million investment.

And in a now-infamous series of events, Montgomery County backed off a nonbinding resolution calling for Congress to spend less on defense and more on social programs. The county council got pushback from defense giant Lockheed Martin, which is based in Bethesda, as well as Mr. O'Malley's office. Virginia officials reportedly contacted Lockheed in the interim to gauge its interest in moving south of the Potomac River.

Maryland officials responded Wednesday by saying that, even with competition from Virginia, the state will remain a national leader in the biotech and life-sciences industries. They also disputed the perception that Virginia is the more business-friendly state, contending Maryland created more than twice as many jobs as Virginia last year.

"It's always nice to have competitive neighbors to strengthen our abilities," said Takirra Winfield, spokeswoman for Mr. O'Malley, a Democrat. "But there is no concern with Maryland's ability to compete and win in the new economy."

Maryland's life-sciences industry employs more than 71,000 people and each year drives $17.6 billion in direct and indirect economic activity, while generating about $500 million in income- and sales-tax revenue, according to the state.

The Virginia Biotechnology Association lauded Mr. McDonnell for his efforts in promoting the business sector. The VBA estimated that, all told, the governor's proposed budget includes more than $47 million in economic-development money that will directly boost the state's bioscience and advanced-technology industries. That includes $15 million for a refundable research-and-development tax credit, $12 million for the Commonwealth Research Commercialization Fund, which goes toward science and technology-based development, and $10 million for an "angel" investor tax credit.

"Governor McDonnell and Lieutenant Governor Bolling are to be commended for their strong support of these proven technology-based economic-development programs," VBA Executive Director Mark A. Herzog said in a statement. "Bioscience jobs pay approximately $40,000 above the average annual salary. These initiatives will create more job opportunities in many regions across Virginia."

http://p.washingtontimes.com/news/2012/jan/4/mcdonnell-aims-to-lure-biotech-jobs-to-virginia/print/

McDonnell outlines Va job creation initiatives; biotech funding

2012-01-04T14:29:00.002-05:00

From the Washington Examiner:

McDonnell outlines Va job creation initiatives
By: MICHAEL FELBERBAUM | 01/04/12 12:37 PM
AP Business Writer
Gov. Bob McDonnell on Wednesday outlined several initiatives totaling nearly $37 million in additional funding in his proposed two-year state budget aimed at spurring economic development and creating jobs in Virginia.

McDonnell's legislative agenda for the upcoming General Assembly session includes tax credits for small businesses and increased coordination between state departments that work in economic development in hopes of attracting new businesses and growing existing ones.

"Jobs is still job one for our administration," McDonnell said during a news conference in Richmond. "We believe the more people we have working, and contributing and innovating and taking care of their families through the private sector, the less cost and expense and burden there is on the taxpayer. ... The more that we can do at the state level to advocate the support of free enterprise and economic development, the better off Virginia is going to be."

McDonnell said the legislative and budget initiatives build on previous programs aimed at economic development, including opening international trade offices, business tax incentives and funding to promote Virginia industries. Since taking office, the state's unemployment rate has dropped from 7.2 percent to 6.2 percent.

The governor's top proposals for his biennial spending blueprint include $10 million for life sciences initiatives to develop Virginia's biotechnology industry by partnering public education with the private sector, as well as $4 million for improvements at the Wallops Island launch site on the Eastern Shore to support the growing commercial space industry. There's also additional funding of $2 million for workforce training programs at community colleges.

"This is Virginia's future — investing in those things where we tie university and academic research with the commercialization process and the job creating process," McDonnell said.

Additional allocations also are being proposed for growing advanced manufacturing, tourism, film, agriculture, technology and offshore wind energy.

McDonnell's proposed budget takes millions largely from inflation adjustments for health care and school support programs; guts the prekindergarten program established by McDonnell's predecessor; and reassigns money to Virginia's underfunded public pension plan, higher education and economic development.

The spending blueprint for the 24 months beginning July 1 prescribes no tax increases. It totals nearly $85 billion in combined appropriations, up from about $80.7 billion for the biennium that ends June 30.

Read more at the Washington Examiner: http://washingtonexaminer.com/news/2012/01/mcdonnell-outlines-va-job-creation-initiatives/2060961#ixzz1iWGYxNdu

Russian Biopharma Conference Features VABIO

2011-12-22T08:34:00.002-05:00

VABIO Executive Director Mark Herzog promoted the Virginia bioscience community in a presentation at the 2nd International Forum on Innovative Drug R&D in Russia, last month in Moscow. The conference featured industry leaders from across the Russian Federation as well as scores of international pharmaceutical company representatives.

"My presentation was focused on the dynamic companies we have in Virginia and the policies we have advanced in the last couple years encouraging technology transfer, entrepreneurship and access to capital for start-ups," said Mr. Herzog. "Most of the attendees that sought me out following the presentation were intrigued by the opportunities for partnerships and strategic alliances."

The conference, held at the Renaissance Monarch Centre Hotel in Moscow, November 21 and 22, was organized by London-based Adam Smith Conferences, attracted more than 300 attendees from numerous European countries as well as the United States. The Mid-Atlantic- Russia Business Council was instrumental in organizing the participation by VABIO.

For more information about the conference, please visit: http://www.adamsmithconferences.com/en/drug-research-development-russia.

‘Beer and Biotech’ fosters better relationships

2011-12-13T14:53:00.001-05:00

While in some industries the “buttoned down” approach still holds sway, that’s apparently not the case in bioscience, as the success of the new “Beer and Biotech” series created by the Virginia Biotechnology Association (VABIO) clearly attests.

“We’d been doing a lot of events that were pretty standard — people would pay for a ticket, come to a reception, and we’d get CEOs and directors of business development,” recalls Mark Herzog, executive director of the non-profit trade association, whose members include bioscience and device organizations, as well as universities and TTOs. “One CEO of a member company in Charlottesville said there were a whole lot more companies and more people engaged in biosciences, and it would be really beneficial if they got together more frequently and even more people came.”

So, the idea was hatched for VABIO to “throw a party,” in the belief it would generate higher attendance and get more industry players involved. The first event, co-sponsored by oncology drug developer Tau Therapeutics, LLC, drew 65 people.

The concept is simple: No tickets are sold; attendees just show up. The event features kegs of beer, appetizer on a few tables, but no bartenders. “It is meant to be very relaxed and purely social; there are no speakers — it’s not a ‘think and drink,’” says Herzog.

This “non-sales-ey” approach has clearly caught on. Two months ago 160 attendees showed up to an event that featured a live band, as well as some curious elected officials who came by to see what all the fuss was about. “Now they take place all over the state,” says Herzog. A detailed article on this approach appears in the December 2011 issue of Intellectual Property Marketing Advisor.

By Steve Lewis
IP Marketing Advisor

Lab expansion in BioTech Park bringing 653 new jobs

2011-11-22T13:16:00.001-05:00

Richmond Mayor Dwight C. Jones announced today a planned expansion by Health Diagnostics Laboratory Inc. that would bring $68.5 million in capital investment and 653 new jobs to the Virginia BioTechnology Research Park.

The health-management company started in 2009 and has experienced such rapid growth that it realized in September that it would need to relocate or expand its 30,000 square-foot presence in the downtown research park, said Tonya Mallory, the company's president and chief executive officer. The company decided to remain in Richmond at the BioTech park in light of its proximity and existing relationships with VCU Medical Center.

The Jones administration said it had followed the company's growth and worked aggressively to support the two-phase expansion when it learned other locations were being considered.

"This has been a company that's been on our radar for a long time," said Peter H. Chapman, the city's deputy chief administrative officer for economic and community development.

Pending approvals by City Council, including a 10-year, $1.35 million performance-based grant, site work will begin early next year to demolish two buildings and replace them with a pair of six-story buildings along Jackson Street near Fifth Street, across from Altria's massive research facility.

The two-year expansion of Health Diagnostics Laboratory will represent the largest investment in the 16-year-old BioTech park behind Altria's, said Robert T. Skunda, president and chief executive officer of the park.

By Will Jones
Richmond Times-Dispatch

Tracking Horse Health Wirelessly

2011-11-07T10:37:00.002-05:00

Check out this video on technology developed by Charlottesville company Empirical Technologies.

VABIO Welcomes 9 New Members So Far in October

2011-10-28T14:11:00.004-04:00

The VABIO team is thrilled to welcome nine new members so far this October! The enthusiasm in the Virginia bioscience community is truly contagious! Companies joining this month include: Greenbrier Wealth Management of Raymond James; NIH Federal Credit Union; Kilpatrick Townsend and Stockton LLP; AIBiotech; SNBL Clinical Pharmacology Center; Zansors LLC; Extinction Pharmaceuticals; Bode Technology; and Williams Mullin Clark and Dobbins.

There is still a few days left to join in October!

November 8 will have an Impact on Bioscience Companies

2011-10-26T12:53:00.005-04:00

Every four years, all 140 seats in the Virginia General Assembly are up for election at the same time. Every ten years, the district lines change after the decennial United States census. The election coming up on Tuesday, November 8th is just such an occasion and members of the Virginia House and Senate are all trying to get to know their new constituents, fend off challengers, and get reelected to their seats.

These final two weeks before Election Day are a great time to talk with your life science colleagues in your office and around your community about how critical good public policies are for the growth of the bioscience industry in Virginia. Volunteers from member companies of VABIO have been working hard over the last several years to pass legislation to help emerging technology companies grow in the Commonwealth.

For example, in the last three years, VABIO (along with partners such as the NVTC) successfully lobbied for the passage of Virginia’s Refundable R&D Tax Credit, $2 Million in state matching funds for SBIR awards, a 100% capital gains tax exclusion on investments in bioscience companies in Virginia, the $4 Million CRCF fund for commercialization, $8 Million for clinical trials at UVA and VCU, as well as an overhaul of the state’s “Angel Investor Tax Credit” that provides a 50% credit on a bioscience investment up to $50,000.

These are huge victories for the bioscience industry in Virginia and never would have occurred without the active help of individuals, working in the industry, who took a few minutes to make a call to a legislator, sent an email or walked the halls of the legislature with the VABIO staff.

If you would like to see these programs continue or be expanded, now is a great time to let your Delegate or Senator know. Take a moment and tell them who you are, what you care about, and that you will be voting on November 8th. Encourage your co-workers to do the same.

Here are links to help you identify your legislators:
Who are my legislators? http://conview.state.va.us/whosmy.nsf/main?openform
VABIO Public Policy Page: http://VaBIO.org/public-policy

If you have any questions or want to get more involved, please contact the VABIO staff at 804-643-6360.

Eric Cantor To Host Jobs Panel Thursday at Biotech Park in Richmond

2011-10-19T11:49:00.002-04:00

RICHMOND, VA – On Thursday, October 20th at 10:00 a.m. Congressman Eric Cantor (VA-07) will host a roundtable with representatives of the Virginia BioTechnology Research Park to discuss ways to create jobs and spur economic growth through innovation and entrepreneurship. Following the roundtable, Congressman Cantor will hold a brief press availability and then tour the Health Diagnostic Laboratory, Inc.

WHO: Congressman Eric Cantor (VA-07)

WHAT: Hosts Jobs Roundtable & Tours Health Diagnostic Laboratory, Inc.

WHEN: Thursday, October 20, 2011
10:00 AM – Roundtable
11:15 AM – Tour

WHERE: Virginia BioTechnology Research Park
Biotech Center – Atrium
800 East Leigh Street
Richmond, VA

Rough Day on Wall Street for Former VA Biotech Companies

2011-10-10T13:47:00.004-04:00

It has been a tough day on Wall Street for two former Virginia bioscience companies. Details from BusinessWeek:

Allos Therapeutics Inc. (ALTH US) slumped 17 percent, the third-most in the Russell 2000 Index, to $1.46. The cancer drug developer said an anonymous bidder has withdrawn a takeover offer of $2.20 a share in cash and stock. Amag Pharmaceuticals Inc. (AMAG US), which is also vying to acquire Allos, gained 2.4 percent to $13.49.

Insmed Inc. (INSM US) fell the most in the Russell 2000, plunging 31 percent to $3.01. The maker of drugs for endocrine disorders said the U.S. Food and Drug Administration is continuing a clinical hold on its phase 3 trials for Arikace in cystic fibrosis patients with lung disease.

Both of these firms started out in Richmond, Virginia. Hang in there! It is always darkest before the dawn.

If you’re a scientist looking to build a startup, good management is key

2011-10-07T15:36:00.002-04:00

Check out the article regarding the VaBIO Greater Richmond Bioscience Luncheon that took place yesterday.

Research officers at Virginia’s universities grapple with a difficult task every day: helping scientists turn laboratory inventions into marketable products.

The trick, according to a group of bio-technology experts who gathered for a luncheon Thursday at the Virginia Biotechnology Research Park, is helping highly-trained scientists hone their business skills. The lunch was part of a monthly series organized by the Virginia Biotechnology Association.

“At the end of the day, if you’re looking to raise money, you’re in a sales mode,” said Mike Drzal, an attorney at LeClairRyan. “If you don’t have the basic sales tools nailed down, you are in for a rough ride.”

Drzal, who represents life-science entrepreneurs, said there are three key tools: an executive summary about your business idea, a business plan and a slide deck that explains your product. Drzal said he’s amazed how many would-be startups prepare for meetings with potential investors without a formal business plan. He said he always tries to stop them and make sure they’ve got well-designed plan.

Erika Smith, CEO of BioTherapeutics, has spent time on both sides of the investing scene. After years of working for small life-science companies, she now works as an angel investor. She said entrepreneurs should be sure to understand what drives different investors.

“What motivates angels can vary,” she said. “There’s some interest in [return on investment], of course, but there are other reasons for why people want to give their time, money and energy.”

One angel investor might have a special interest in funding companies pursuing cancer drugs or treatments, she noted. The interest in that sector may be motivated by personal experiences, such as losing a family member to cancer.

Mark Crowell is executive director for innovation partnerships at the University of Virginia. He said that when his office is working to help one of the school’s researchers, it prefers to back products that have “multiple applications across multiple markets.” But it’s even more important, he said, to find scientists who can be effective partners with investors and business executives, people who are “teachable” and willing to admit their ability to decode a genetic sequence may exceed their ability to prepare a balance sheet.

Smith, the angel investor, said the mantra of venture capitalists and other investors is “management, management, management. That’s what it all comes down to.”

Drzal said investors are looking for a “bankable” CEO, someone with proven business experience who can help guide the inventor. Not many people, he noted, can handle both tasks, especially if the person is continuing with other teaching and research duties.

“The other thing we look for is the King’s English,” Drzal said. “I see 50 presentations a year, and if I can’t understand it, an investor who doesn’t see that many of these definitely can’t figure it out. Don’t forget the importance of communicating effectively.”

Ken Carter, CEO of Nobel Life Sciences, says the inventor must understand that everybody has to win and get a return on the product for it to really grow and succeed.

“I tell folks that instead of owning 100 percent of a grape, you and the world will be better off if you own 10 percent of a big, juicy watermelon.

Drzal urged the scientists in the audience to “spend your time on what you know” and let other professionals handle the nitty-gritty details surrounding accounting, incorporation structures and other business issues.

“I often tell my clients, ‘I won’t be a biophysicist if you won’t practice law,’” he said.

Written by: Jacob Geiger
WorkItRichmond

Ceres Nanosciences' scientist awarded Popular Science's "Brilliant 10"

2011-09-28T17:35:00.002-04:00

When Alessandra Luchini was a girl growing up in Italy, she visited the Museo Galileo in Florence, where she saw the telescope that Galileo Galilei had invented four centuries before, in 1610. She was struck by its simplicity. with a just a couple of pieces of curved glass, anyone could see whole new worlds.

In 2005, Luchini, now an engineer at George Mason University, came to the U.S. on a grant from the Italian National Health Service to study ways to detect molecular signs of cancer. Some diseases, early on, release faint hints of their presence into our bodily fluids. These “biomarkers” are ephemeral—our enzymes chew them up within minutes, so they’re undetectable in most lab tests. If doctors had a way to catch and stabilize those biomarkers, they could detect diseases more quickly and begin treatment at a stage when the chances of recovery were much higher.

Luchini’s solution was to build a nanoparticle trap. The concept, like Galileo’s telescope, is simple: “It’s like a net for catching very small fishes,” Luchini says. The spherical nanoparticle, which took two years to perfect, uses hydrogel as its backbone. Inside, a crisscrossing polymer net holds bait, such as acid or dye, which chemically attracts various biomarkers. when lab technicians mix the nanoparticle in with a fresh blood sample, it traps the biomarkers and protects them from enzymes. The sample can then be tested at leisure. So far, Luchini has used nanoparticle traps to produce an early diagnosis of infectious diseases such as Lyme disease and tuberculosis. (The traps can also reveal the presence of human growth hormone in urine, and thus offer a novel way to reveal illegal doping by athletes.) She and her team are also working on nanotraps to find the skin-cancer biomarkers that exist in a person’s sweat.

Luchini’s next step is to modify the nanoparticles so they can trap biomarkers in a body, giving doctors a realtime view of what’s going on inside their patients.

By Madhumita Venkataramanan
Popular Science

VABIO Entrepreneurship Event 9/8 to be Streamed on the Web

2011-09-07T16:25:00.003-04:00

The Virginia Biotechnology Association (VABIO) is pleased to offer an opportunity to view the sold out Greater Richmond Bioscience Luncheon live on the web through our new LiveStream channel. The program will take place tomorrow, Thursday, September 8, from 12:00-1:30 p.m., program details are below. The program is called “Entrepreneurship Failures and Successes: The Perspective of Entrepreneurial Faculty.”

Tune in to our blog (http://vabio.blogspot.com/) at noon and the program will begin shortly thereafter.

We are testing this new technology with the intent of making our valuable program available to those that are unable to attend this sold out event. Please bear with us if we experience any technical difficulties, we will work through them as quickly as possible.

“Entrepreneurship Failures and Successes: The Perspective of Entrepreneurial Faculty.” The panel will lead a frank discussion about the risks and rewards of commercialization activities in a university environment. What aspects about university “culture” either encourage or discourage commercialization activities by faculty? The panel will cover topics such as tenure, wealth creation, equity, royalties, managing conflicts of interest, and raising money (angels, grants and venture capital).

Speakers: Mike Grisham, CEO of GPB Scientific, Richmond (Moderator); Dr. Curt Civin, Dean, University of Maryland School of Medicine and Director of Regenerative Medicine; Dr. Martin Chapman, CEO of Indoor Biotechnologies, Charlottesville (former tenured UVA faculty); Dr. Chip Petricoin, Co-Director of the Applied Proteomics Center at GMU (and serial entrepreneur); Dr. Jim Bennett, Chair of Department of Neurology at VCU; and Dr. Gordon Archer, Associate Dean for Research and Training at VCU.

VA Business Mag: Virginia's Refundable R&D Credit Makes News

2011-09-07T09:49:00.001-04:00

Great article on Virginia's R&D Tax Credit in Virginia Business:

Check’s in the mail
Virginia joins a handful of states to offer tax rebates for tech-based R&D

September 01, 2011 6:00 AM
by Garry Kranz
Virginia’s high-tech companies no longer are among the have-nots. This year state lawmakers created a refundable income tax credit designed to help startup companies defray the costs of research and development.

Before the move, Virginia was one of 12 states that did not offer a tax credit for R&D expenses. That had put Virginia at a disadvantage — especially since competing neighbors Maryland, North Carolina, Pennsylvania and West Virginia offered similar breaks, say state economic leaders.

The initial investment is capped at $5 million. Despite the modest sum, business leaders say it marks an important step in helping Virginia compete in an increasingly innovation-driven economy. “Technology companies create high-paying jobs, and we want to make sure those jobs are created here,” says Mark A. Herzog, executive director of the Virginia Biotechnology Association.

The new law also shifts Virginia into another, albeit more desirable, minority: one of only seven states to offer a tax credit in the form of a cash refund.
As a result, Virginia companies that perform “qualified research and development” could be eligible to claim a tax credit equal to 15 percent of the first $167,000 of research expenses they incur during the taxable year. If the company has yet to turn a profit, it could receive a state refund check for the equivalent amount, worth up to $25,000.

Also, companies pursuing research in tandem with a state college or university can claim up to 20 percent on the first $175,000 of R&D expenses, or a refund check worth as much as $35,000. The slightly higher amounts reflect a push to promote greater collaboration between academic and private-sector researchers, state officials say.

“The refundable aspect is what makes it special,” Herzog says. “Without that element, the credit has zero value to the vast majority of Virginia’s advanced technology companies.”

In dollar terms, the total amount of tax credits available to qualified businesses in Virginia is capped at $5 million for each fiscal year from 2012 through 2016. The money will come from the state’s general fund.

Technology-based companies typically absorb the full costs of research but may have to wait years for a product to hit the market and begin generating sales revenue. The tax credit softens the financial blow a bit, says state Sen. Mark R. Herring (D-Loudoun), who co-sponsored the bill with Del. Ben Cline (R-Rockbridge).

Although the amount per company is modest, it’s sufficient to help pay for research equipment costs, lab space, supplies and similar items, Herring says. It will “incentivize companies to invest in the research and development” needed to commercialize products and, ultimately, spur job creation and economic growth across Virginia.

The Northern Virginia Technology Council and the Virginia Biotechnology Association led an intense lobbying effort to get lawmakers to approve the R&D tax credit, which Gov. Bob McDonnell swiftly signed into law.

Virginia’s law piggybacks on a federal R&D tax credit signed into law by President Reagan in 1981. But the tax break is not a handout, says Josh Levi, vice president of policy for NVTC. “Think of it like a rebate on expenditures already made,” which companies recover if their current-year’s research expenditures eclipse the previous year.

Virginia’s approach is a different direction than that taken by most states. Giving a company cash to reinvest sends a much stronger message than simply letting them carry forward expenses year to year on a balance sheet, says Jay Langston, senior project support manager with the Virginia Economic Development Partnership.

“It’s not a huge sum of money, but if it helps a company pay for a piece of equipment, it’s a positive in their mind,” says Langston. Plus, it reinforces Virginia’s pro-business stance.

Should the applied-for tax credits exceed $5 million, the Virginia Department of Taxation would pro-rate the credits and assign them on a pro-rata basis. The idea is to prevent a handful of companies from quickly exhausting the available funds, Herring says. Conversely, the legislation allows companies to apply for an additional tax credit if the $5 million is not consumed, although officials concede that seems unlikely to happen.

The R&D tax credit generated the biggest headlines, but state technology companies have other news to celebrate as well. Lawmakers added $4 million to the Commonwealth Research and Commercialization Fund. It also provided $4 million for the Center for Innovative Technology’s “Gap” Fund, which provides seed funding to promising startups, and $2 million in matching funds for companies that win federal Small Business Innovative Research grants.

http://www.virginiabusiness.com/index.php/news/article/checks-in-the-mail/313978/

Audit Requirement for Commercial Enterprises Receiving STTR/SBIR Grants

2011-08-25T16:20:00.002-04:00

Guest authored by Robert Tobey, CPA, Keiter Stephens

Commercial enterprises (i.e., for profit organizations) which expend at least $500,000 in STTR or SBIR funds during an enterprise’s fiscal year are required to have audits conducted in accordance with Office of Management and Budget (OMB) Circular No. 133, “Audits of States, Local Governments and Non-Profit Organizations”. However, commercial enterprises are provided two options regarding the type of audit which will satisfy this requirement.

To read the complete article, click here.

VABIO Presents Award to Va House Speaker Bill Howell

2011-08-24T17:24:00.002-04:00

The Virginia Biotechnology Association (VABIO) announced that the Speaker of the Virginia House of Delegates, William J. Howell (R-Stafford) received the Virginia Bioscience Legislative Leadership Award on August 23^rd for his outstanding efforts on behalf of the bioscience industry during the 2011 Session of the Virginia General Assembly. The Virginia Biotechnology Association has only recognized a handful of state legislators with this special distinction.

“I have had the privilege of knowing the Speaker for nearly twenty years,” said Mark A. Herzog, executive director of VABIO. “He has always been a stalwart supporter of small businesses in Virginia and that continues today with his enthusiastic efforts to ensure that the Commonwealth can compete for 21^st Century, advanced technology jobs.”

Previous recipients of the award include: Delegate Scott Lingamfelter of Prince William; Delegate Steve Landes of Weyer’s Cave; Delegate Mark Sickles of Fairfax; Delegate John O’Bannon of Henrico; former Delegate Sam Nixon of Chesterfield, Delegate Joe May of Loudoun; and Senator Mark Herring, also from Loudoun.

Speaker Howell played an instrumental role in supporting the 2008 joint legislative subcommittee to review the Commonwealth’s policies to advance the growth of the life science industry in Virginia. The recommendations from that group were incorporated into the first legislation in many years to accelerate the growth of the biosciences in Virginia. Most recently, in 2011, the Speaker strongly advocated for the passage of the Virginia Refundable Research and Development Tax Credit, a key recommendation of the Governor’s Economic Development and Jobs Commission.

“The Speaker is a good friend to the bioscience industry and we are grateful to him for his public service and commitment to ensuring that future generations of Virginians have access to the knowledge-economy jobs of tomorrow,” said Mr. Herzog.

The Virginia Biotechnology Association (VABIO) is the statewide non-profit organization that promotes the scientific and economic impact of the life sciences industry in the Commonwealth of Virginia. Approximately 200 biotechnology, pharmaceutical and medical device companies are based in Virginia, mainly clustered around universities in Blacksburg, Charlottesville, Richmond, Norfolk and Northern Virginia. For more information about the impact of the bioscience industry in Virginia, please visit www.vabio.org

Qualified Small Business Stock Changes Explained

2011-07-28T14:34:00.007-04:00

An explanation of the recent IRS changes impacting qualified small business stock.

Guest written by: Robert Tobey, Keiter Stephens

In an effort to stimulate the economy and to help innovation economy companies grow, Internal Revenue Code (IRC) §1202 provides an incentive to investors who risk their funds to finance these businesses.

A BRIEF HISTORY
For qualified small business stock (QSB) acquired after August 10, 1993 and before February 18, 2009 and held for a minimum of five years, non-corporate investors may exclude 50% of the gain realized from the disposition this stock. As part of the American Recovery and Reinvestment Tax Act of 2009, in order to stimulate the economy, the exclusion percentage was raised to 75% for QSB stock acquired after February 17 and before September 28, 2010 and held for a minimum of years. The Creating Small Business Jobs Act of 2010 further amended IRC §1202 to exclude 100% of gain from QSB stock acquired after September 27, 2010 and before January 1, 2011. Finally, the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 extended the deadline to QSB stock acquired before January 1, 2012. The President’s 2012 budget proposes to make this exclusion permanent.

IN NON-TECHNICAL TAX TERMS, WHAT DOES THIS ALL MEAN?

COMPANY CONSIDERATIONS

How does corporate stock qualify as QSB stock?
Corporate stock is treated as QSB stock only if it satisfies all of the following conditions:
1. the stock was originally issued after August 10, 1993, the original enactment date of IRC §1202;
2. the corporation issuing the stock is a domestic C corporation (i.e.: S corporations, partnerships, and LLC’s taxed as partnerships do not qualify);
3. the stock satisfies the original issuance requirement (i.e.: stock is issued by the corporation to the shareholder directly or through an underwriter);
4. the corporation issuing the stock meets the QSB requirements; and
5. the corporation issuing the stock satisfies the active business requirements.

How does a domestic C corporation qualify as a QSB?
In order to qualify as a QSB, a domestic C corporation must meet the following tests:
1. The corporation’s aggregate assets must not exceed $50 million at any time on or after August 10, 1993 and before the issuance of the stock for which IRC §1202 treatment is sought.
2. Immediately after the issuance of the stock for which IRC §1202 treatment is sought, the corporation’s gross assets, including amounts received for the stock, must continue to be no more than $50 million.

Describe the active business requirement.
A corporation meets this test if it uses at least 80% of the value of its assets in the active conduct of a qualified trade or business. As of this writing guidance has not been issued regarding when and how the 80% of assets determination is made.

What is a qualified trade or business?
A qualified trade of business is one other than:
1. A heath care provider; law, engineering, architecture, or accounting firms; actuarial or brokerage services, or any trade or business where the principal asset of such trade or business is the reputation of skill of one or more of its employees.
2. Any banking, insurance, financing, leasing, investing or similar business.
3. Any farming business
4. Any business involving the production or extraction of products subject to depletion.
5. Any hotel, motel, restaurant or similar business.

Will a corporation meet the active conduct of a qualified trade or business if it is only conducting
research and development activities with the hopes of producing a product (i.e.: start-up phase)?
Yes, if assets are used in start-up activities, activities resulting in the payment or incurring expenditures which qualify as IRC §174 research and experimental (R&E) expenditures, or activities with respect to in house research expenditures described in IRC §41(b)(4) assets used in these activities shall be treated a used in active conduct of a qualified trade or business. This determination is made without regard to whether or not the corporation has earned any income from its intended trade or business.

Are options or warrants to acquire QSB stock considered QSB stock?
No.

Can the QSB gain exclusion be preserved in tax-free reorganizations and in contributions to controlled corporations?
Yes in certain circumstances. A discussion of these circumstances is beyond the scope of this summary. If you would like more information about this, please telephone me.

Are there any types of transactions between shareholders and the corporation which would make the gain on the QSB stock ineligible for the exclusion?
Yes.
If the issuing corporation purchases any of its stock directly or indirectly from the taxpayer or a person related to the taxpayer within a four year period commencing two years before the stock was issued, the taxpayer cannot qualify for the exclusion. There is a safe-harbor de minimis amount which will not disqualify the gain from exclusion.

Stock will not qualify for the exclusion if the issuing corporation engages in a significant redemption. A redemption is significant if the corporation, within a two year period beginning one year before issuance of the stock, redeems stock with an aggregate value exceeding 5% of the aggregate value of all of the corporation’s stock. There is a de minimis exception for this also.

SHAREHOLDER CONSIDERATIONS

What are the dollar limits on the exclusion?
The amount of gain is subject to a per-issuer limitation. The cumulative per issuer limit is the greater of $10 million or 10 times the adjusted basis (i.e.: what you paid for the stock) of all qualified stock of the issuer that the taxpayer disposed during the year. Additions to basis are disregarded. This limitation can severely restrict the tax benefit of IRC §1202 in the event of a truly substantial windfall. These are shareholder by shareholder limitations. Taxpayers filing married separately split the $10 million limitation.

How is any gain in excess of the exclusion taxed?
As mid-term capital gain income taxed at 28%

How long do I have to hold (i.e.: own) the stock in order to qualify for the exclusion?
For more than five years.

When does my holding period start if I acquired the stock my converting notes or exercising warrants or options?

The holding period starts the date the note is converted or the date the options or warrants
are exercised.

How is the holding period measured if I exchange one type of QSB stock for another (e.g.:
convert preferred into common)?
The holding period of the old stock tacks on to the new stock. So the holding period commences when you first acquire QSB stock.

How is the holding period measured if QSB stock is acquired by gift or inheritance?
If QSB stock is acquired by gift or inheritance, the beneficiary’s holding period includes the period the QSB stock is held prior to the gift or bequest.

How is the holding period measured if the QSB stock is received from a partnership?
If a partner receives QSB stock from a partnership in which the partner held an interest when the partnership acquired QSB stock, a partner’s holding period generally includes the period the QSB stock is held by the partnership.

How is the holding period measured if the QSB stock is received in a tax free reorganization or
in return for a contribution to a controlled corporation?
The holding period of the QSB stock received in either of these transactions apparently does not include the holding period of QSB stock surrendered in the transaction.

How is the excluded gain treated for AMT purposes?
It depends on when the gain is realized. Effective with a taxpayer’s 2003 tax year, the fraction of excluded gain treated as a preference is 7%. This percentage is applicable for stock sales occurring on or after May 6, 2003. The 7% preference is scheduled to sunset at December 31, 2012. Unless this changes, for tax years 2012 and after, the preference will be 28% for QSB stock with a holding period beginning after December 31, 2000, 42% for other stock. For QSB stock acquired between September 28 and December 31, 2011, none of the gain excluded under IRC §1202 is a preference for purposes of calculation AMT income.

A detailed write-up, including examples, explaining the provisions of IRC §1202 is available by sending a request to rtobey@kshgs.com or ring me at 434.220.2800.

IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding any penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction(s) or tax-related matter(s) addressed herein. 1202

Video: News Clips from Around US on CNBC #1 State for Business

2011-07-08T12:10:00.001-04:00

Sunday RTD - Bioscience: Discovery is in Virginia's DNA

2011-07-03T08:18:00.002-04:00

The Sunday Commentary Section of the Richmond Times-Dispatch features VABIO's opinion piece on the growth of the bioscience sector in Virginia.

Founded in 1607 by a venture-backed company in London, Virginia has long been the destination of choice for entrepreneurs and start-up companies. That same tradition of discovery continues today with nearly 300 biotechnology and medical device firms that are expanding the frontiers of modern medicine.
These dedicated scientists, clustered around research universities such as Virginia Commonwealth University, are pioneering new therapeutic medicines, more effective diagnostics and life-saving medical devices.
According to a new study by Miami-based Archstone Consulting, there were more than 1,500 active clinical trails conducted last year by Virginia researchers on new medicines, including those targeting cancer,diabetes, HIV/AIDS, mental health disorders and respiratory diseases.
In addition to the National Science Foundation and biopharma companies with facilities in Virginia (such asPfizer, Merck, Novozymes, Abbott Laboratories, Boehringer Ingelheim, and Teva Pharmaceuticals), the commonwealth is also home to the Janelia Farm Research Campus of the Howard Hughes Medical Institute(HHMI). This $500 million, world-class biomedical research complex in Loudoun County houses several hundred of the world's top scientists who use emerging and innovative technologies to pursue biology's most challenging problems.
Clearly, biotechnology has asserted itself as a vital contributor to Virginia's economic growth.

Click here for the rest of the article: http://bit.ly/jpBOEi

Virginia Student to Compete in International BioGENEius Challenge in D.C.

2011-06-27T04:54:00.002-04:00

Riley Ennis of Fairfax County, Virginia, was named one of the ten finalists of the 2011 U.S. National BioGENEius Challenge. The Virginia, U.S. National and International BioGENEius Challenges are competitions for high school students who demonstrate an exemplary understanding of biotechnology through science research projects. The ten U.S. National finalists will join students June 27th from Canada and Australia to compete in the International BioGENEius Challenge at the 2011 BIO International Convention in Washington, D.C.

Mr. Ennis, aged 17, is a recent graduate of Fairfax County’s Thomas Jefferson High School for Science and Technology. His winning presentation was titled, “Cancer Immunotherapy Research Vaccine: Mannose Glycoprotein Encapsulated PLGA Fluorescent Nanoparticles Biotinylated for Conjuga.”

Following the announcement of his selection by the judges at the awards banquet at the Omni Shoreham Hotel on Sunday night, Mr. Ennis said, “As an international finalist for the BioGENEius Challenge, I am so honored to be part of the competition; surrounded by amazing students all with the same passion as me. I would like to thank the Virginia Biotechnology Association and the Chesapeake Bioscience Education Foundation for their incredible help and support. Hopefully in the next few years, cancer vaccines will be at the forefront of cancer therapeutics; and it is at competitions like the BioGENEius Challenge where ideas become reality.”

Mr. Ennis was one of three outstanding students who won the 2011 Virginia BioGENEius Challenge, co-sponsored by the Chesapeake Bioscience Education Foundation (C-BEF) and the Virginia Biotechnology Association (VABIO). "I know I can speak for the entire bioscience community in Virginia when I commend Riley for his achievement," said Mark A. Herzog, VABIO executive director. “Virginia had an outstanding group competing for the national title and we are very pleased that Riley Ennis will be representing Virginia and the United States at the International Competition.”

“Two years ago, I couldn't have imagined arriving at the point of being selected as a U.S. National Finalist and now a competitor in the International BioGENEius Challenge in Washington DC,” continued Mr. Ennis. “I have developed an innovative cancer vaccine that harnesses the innate abilities of the human body in order to battle cancer, without deleterious side effects or invasive procedures. I was able to take my project to the next level of pharmaceutical relevance with the help of experts in the biotechnology field, who helped me file for a provisional patent, and start RC Molecular Innovations: a biotechnology company focused on the development of this vaccine platform technology.”

“We are so proud of Riley, Prasannappa and Venkatesan,” said Dr. Martin Chapman, chairman of C-BEF and president of Indoor Biotechnologies in Charlottesville, Virginia. “All three of the winners of the Virginia BioGENEius Challenge who competed for the U.S. National title are outstanding students and will be a credit to the industry in the days ahead.”

Also competing in the U.S. National BioGENEius Challenge from Virginia were:

Prasannappa Rithvik, Age 17, Thomas Jefferson High School for Science and Technology, Fairfax County: “Investigating wingless-mediated signaling in class specific dendrite morphogenesis.”
Venkatesan Radha, Age 14, York High School, York County: “Study of over expression of C-MET Receptor Tyrosine Kinase signaling in liver cancer.”

The International BioGENEius Challenge competition will be held June 27, at the 2011 Biotechnology Industry Organization (BIO) International Convention in Washington, D.C. The BIO International Convention is the largest global event for the biotechnology industry attracting approximately 15,000 attendees each year. The convention attracts the biggest names in biotech, offers key networking and partnering opportunities and provides insights and inspiration on the major trends affecting the industry. Winners of the competition will be announced at the June 28th keynote luncheon session featuring Virginia Governor Robert McDonnell, Maryland Governor Martin O’Malley and former British Prime Minister Tony Blair.

The panel of judges will include scientists, researchers, educators and key members of the biotechnology industry and academia. Judges will select the top four winners from 14 U.S. National, Western Australia, and Canada finalists. The first place winner of the BioGENEius Challenge will receive $7,500; second place will receive $5,000; third place will receive $2,500 and fourth place will receive $1,000. Each remaining participant will receive an honorable mention award and $500.

At the Local, U.S. National and International competitions, students are evaluated on the quality of their research and display, as well as on their responses to questions relating to their scientific knowledge and potential commercial applications of their research.

Biotech breakthrough: Industry emerging in Central Va.

2011-06-20T14:39:00.001-04:00

They research the drugs and machines that are in your future to diagnose ailments, cure ills, ease your pain and reattach your limbs.

They are the increasing number of biomedical companies being created, researched, financed and grown in Central Virginia, many an offshoot of research and development being conducted in laboratories of the University of Virginia.

About 15 percent of Virginia’s estimated biomedical/technology companies reside in the Charlottesville area and the segment of the region’s economy is slowly growing to become an important community asset area officials say.

Click here to read the complete article by Bryan McKenzie in The Daily Progress.

Business Rx: Tau Therapeutics

2011-06-20T14:20:00.002-04:00

Tau Therapeutics article in The Washington Post today.

Andrew Krouse was working at the University of Virginia when he learned about a revolutionary technology his neighbor, a professor of medicine, was developing that could be the key to cancer treatment. Not long after, Krouse joined the team and is now president and chief executive of Tau Therapeutics, a life-sciences company based in Charlottesville that is developing a nontoxic pill it believes can stop cancer and block the side effects of chemotherapy and radiation.

The pitch

Krouse

“Our clinical priority for the technology we licensed from U-Va. is a program we call Interlaced Therapy. It promises to significantly enhance the efficacy of chemotherapy in a number of serious cancers. It works by halting the dividing cancer cells so that standard chemotherapies are more powerful. We have patented and received orphan drug designation on a drug that was on the market for hypertension and are repositioning this drug for the treatment of cancer. By taking our nontoxic drug in a sequential combination with a standard chemotherapy, we hope to minimize chemotherapy’s terrible side effects and greatly enhance the effectiveness of these therapies. There’s also the potential to overcome drug resistance.

Click here to read the complete article in The Washington Post.

Paul B. Ferrara, pioneer of DNA use, dies at 68

2011-06-01T09:24:00.002-04:00

Paul B. Ferrara, 68, the former head of Virginia's forensic-science laboratory who helped pioneer the use of DNA as a crime-fighting tool in the U.S., died Monday.

His wife, Dale Lynn Ferrara, said Tuesday that her husband died of complications of cancer Monday morning at their home in Chesterfield County. She said funeral and other arrangements have not yet been set.

Mr. Ferrara retired at the end of 2006 after 21 years as director of the state Department of Forensic Science, where he was credited with recognizing the forensic potential of DNA and then winning the resources to exploit it.

He began his career in 1971 and held doctoral degrees from Syracuse University and the State University of New York. He was a distinguished professor of forensic science at Virginia Commonwealth University.

A high point in his career began in the mid-1980s when he and others at his lab learned about a new tool then called "genetic fingerprinting." In a 2006 interview with the Richmond Times-Dispatch, Mr. Ferrara said they realized, "My God, we have to implement this.'"

"We just knew intuitively … that it's going to change the way police conduct investigations, collect evidence, how prosecutors and defense attorneys are going to approach their cases," he said.

In September 1987, a private New York laboratory, Lifecodes, offered to train two of Mr. Ferrara's scientists so Virginia could establish the first state DNA laboratory in the country.

Mr. Ferrara fought for roughly $300,000 from the state and, in March 1989, Virginia opened the first state DNA laboratory capable of performing DNA fingerprinting. The FBI had started its limited DNA laboratory operations just four months earlier.

That same year the state forensics laboratory also became the first to create a DNA database of previously convicted sex offenders. In 1992, the state became a pilot state for a national DNA databank.

A "cold hit," or match, from the state databank resulted in a first conviction in 1994. The laboratory's work, in addition to catching many criminals, has also cleared people wrongly convicted of crimes.

"I don't know a single person that does not think highly of Paul. That's something to say," said Peter Marone, the current director of the department.

Mr. Ferrara hired Marone as a forensic serologist in 1978. An independent agency and not a part of law enforcement, the forensic laboratory went through several iterations before becoming a department six years ago.

Marone said that in addition to his forensic-science accomplishments, Mr. Ferrara established strong working relationships with the General Assembly and with all the different gubernatorial administrations over the years.

"He never promised pie in the sky. It was always, 'You give us this — we can do that,'" Marone said.

The career of Dr. Marcella Fierro, who retired as the state medical examiner in 2008, overlapped that of Mr. Ferrara's.

"Paul made Virginia a better, safer place to live by leading and directing a laboratory whose work protected the innocent as well as convicting the guilty. I am saddened to hear the news. We had lunch a few weeks ago, and he looked so well," she said.

Fierro said Mr. Ferrara built the premier state forensic lab in the country. "It had innumerable firsts, all of which required considerable leadership when you have to persuade people to do something that has not been done before," she said.

"I used to admire him incredibly because he would get money and staff. I could try for here and hereafter and not get any," Fierro said.

"And," she said, "He's a nice guy."

Peter Neufeld, a cofounder of the Innocence Project, in New York, said of Mr. Ferrara, "He preached the gospel of DNA, both to convict and exonerate with extraordinary exuberance and the criminal justice system will be indebted for that contribution."

In addition to his wife, Mr. Ferrara's survivors include three sons, Mark S. Ferrara of Oneonta, N.Y., Paul G. Ferrara of Des Moines, Iowa, and Anthony D. Ferrara of Richmond; two brothers, Richard Ferrara of Davie, Fla., and James Ferrara of San Francisco; a sister, Mary Wyatt of The Villages, Fla.; and a grandson.

By Frank Green
Richmond Times-Dispatch

Health Diagnostic Lab Wins VABIO Company of the Year

2011-05-26T21:23:00.001-04:00

Congratulations to Health Diagnostic Laboratory (HDL) of Richmond, winner of the 2011 Virginia Bioscience Company of the Year Award. The award, presented May 26 at a special reception at the Pfizer Consumer Products Research Laboratory in Richmond, recognizes the biotech or medical device company that has distinguished itself from its peers with strong overall performance and best exemplifies the innovative spirit of the Virginia life sciences community.

Mark Herzog, executive director of VABIO, presented the award to Tonya Mallory, CEO of HDL.

The Virginia Bioscience Company of the Year Award was presented by the Virginia Biotechnology Association and sponsored by the law firm Cooley LLP and Pharmaceutical Researchers and Manufacturers of America.

Del. Scott Lingamfelter Wins Virginia Bioscience Award

2011-05-25T14:51:00.005-04:00

The Virginia Biotechnology Association (VABIO), today announced that L. Scott Lingamfelter, a member of the Virginia House of Delegates from Woodbridge, received the Virginia Bioscience Legislative Leadership Award for his exemplary efforts on behalf of the bioscience industry during the 2011 Session of the Virginia General Assembly.

“Delegate Lingamfelter played a key role in the passage of legislation to match Small Business Innovation Research (SBIR) awards and to protect and fund Virginia’s commitment to the Commonwealth Research and Commercialization Fund (CRCF),” said Mark A. Herzog, executive director of VABIO. “The CRCF is designed to spark early-stage commercialization and job creation in high-growth, high-wage technologies such as biotechnology.”

The Virginia Biotechnology Association has only recognized a handful of state legislators with this special distinction.

“Technology, and biotechnology in particular, will be a major component of a vibrant Virginia economy going forward,” said Delegate Lingamfelter in a statement following the award presentation. “ I'm glad to have played a small part in working with the Governor and leaders with an economic vision for Virginia by advancing legislation that will attract and grow more high-tech companies to Virginia.”

The SBIR program, signed into law by President Reagan in 1982, is the largest innovation program in the United States. SBIR offers competition-based awards to stimulate technological innovation among small private sector businesses with significant commercial applications. Many famous, high-tech firms, such as Qualcomm, first got their start via this important program. These awards are extremely competitive; historically only about 15% of all Phase One applications are approved.

“The Virginia SBIR Match Program was first created in 2009 but no funding had been provided,” said Mr. Herzog. “We are grateful to Delegate Lingamfelter and his colleagues in the General Assembly for including the $2 million in the 2012 budget.”

Previous recipients of the award include: Delegate Steve Landes of Weyer’s Cave; Delegate Mark Sickles of Fairfax; Delegate John O’Bannon of Henrico; Delegate Sam Nixon of Chesterfield, Delegate Joe May of Loudoun and Senator Mark Herring, also from Loudoun.

The Virginia Biotechnology Association (VaBIO) is the statewide non-profit organization that promotes the scientific and economic impact of the life sciences industry in the Commonwealth of Virginia. Approximately 200 biotechnology, pharmaceutical and medical device companies are based in Virginia, mainly clustered around universities in Blacksburg, Charlottesville, Richmond, Norfolk and Northern Virginia. For more information about the impact of the bioscience industry in Virginia, please visit www.vabio.org.

Building On A Firm Foundation

2011-05-24T10:53:00.005-04:00

A new R&D tax credit, among other programs and projects, could help Virginia reach the upper echelon of life sciences states.

All across the Commonwealth of Virginia, biomedical innovators are pursuing a shared passion to help their fellow citizens live longer, healthier lives. These dedicated researchers, in nearly 200 biotechnology and medical device firms clustered around research universities such as the University of Virginia, Virginia Commonwealth University, George Mason University and Virginia Tech, are expanding the frontiers of modern medicine. They are pioneering new drugs, more effective therapeutics and life-saving medical devices. According to a new study by Miami-based Archstone Consulting, there were more than 1,500 active clinical trails conducted last year by Virginia researchers on new drugs, including those targeting cancer, diabetes, HIV/AIDS, mental health disorders and respiratory diseases.

In addition to the National Science Foundation (NSF) and biopharma companies with facilities in Virginia such as Pfizer, Merck, Novozymes, Abbott Laboratories, Boehringer Ingelheim, Teva Pharmaceuticals, ATCC and SRI International, the Commonwealth is also home to one of the most advanced bioscience research institutes in the world. The Janelia Farm Research Campus of the Howard Hughes Medical Institute (HHMI) opened in October 2006. Located on a 689-acre (279-hectare) property in Northern Virginia, the unique, world-class biomedical research complex represents a $500-million investment by HHMI, one of the largest biomedical research philanthropies in the world. Several hundred of the world's top researchers from diverse disciplines use emerging and innovative technologies to pursue biology's most challenging problems.

Clearly, biotechnology has asserted itself as a vital contributor to Virginia's economic growth.

According to the Battelle/BIO State Biosciences Initiatives 2010 report, from 2001 to 2008, bioscience employment in Virginia grew by 23 percent, compared to 6-percent total growth statewide and 3.5-percent across all sectors in the U.S. Between 2001 and 2008, the number of Virginia bioscience companies grew by 55 percent, in contrast to 18-percent growth in the private sector statewide, and 14 percent across the U.S.

In Virginia, bioscience organizations directly employ more than 20,000 people. Indirectly — through biomedical suppliers, vendors and services-related companies — more than 80,000 jobs are dependent on Virginia's life science industry. All told, Virginia's biopharmaceutical and device sector generated products and services valued at more than $13 billion in 2008.

New Tools Help, But Stronger Educational Focus Will Help Keep Up With the Neighbors

Founded in 1607 by a venture-backed company in London, Virginia has always been a welcoming home for entrepreneurs and start-up companies. That continues today as private investors recognize the long-term value of Virginia's robust biotechnology industry. Between 2004 and 2009, Virginia biotechnology companies attracted $405 million worth of venture capital. That puts Virginia in the top 20 nationally (19th).

Underlying this hopeful news are some potentially worrisome issues. Like many states, Virginia's educational requirements need to be reviewed, particularly to get more students prepared for careers in the science, technology, engineering and mathematics (STEM) fields. A state's concentration of STEM graduates generally is considered to be a bellwether of its future ability to compete for jobs and economic growth, especially in the global economy. In fact, a recent study notes that Virginia is one of only 17 states without a biology requirement for high school graduation (biology is one of three laboratory options).

Indeed, bioscience research provides fertile soil to nurture ideas from seedlings to useful products and services. And on the surface, Virginia's biotech sector seems to match up well in terms of the percentage of research-and-development activity taking place at state academic institutions. In fiscal year 2008, Virginia ranked 17th in the nation in the amount of academic research and development dollars spent on biosciences. Of the $70.55 billion in academic funding, more than $550 million was allocated to biosciences research in Virginia.

That's good enough to place Virginia in the top 20, but it also indicates how far the Commonwealth has to go. Virginia is bookended by two states — North Carolina and Maryland — that rank fifth and sixth in the nation, respectively. In short, state policy-makers and the research community must take action now to gain full advantage of future growth in the life sciences industry.

Seeking to capitalize on the growing nucleus of innovative research-based companies, Virginia Gov. Robert F. McDonnell earlier this year signed into law the Virginia Refundable Research & Development Tax Credit, which recognizes the enormous upfront expenses emerging advanced technology companies typically absorb during the arduous journey of bringing cutting-edge products and services to market. Virginia is now one of only a handful of states that provides a refundable credit that gives cash-strapped bioscience companies more elbow room to pursue their innovative ideas, without having to worry quite as much about meeting expenses before revenue comes rolling in. These "pre-profitable" biotech firms are eligible for up to a 15-percent tax credit or refund of their "qualified" R&D expenses, and up to 20 percent if they partner with Virginia's public or private universities.

The new legislation complements the Virginia Innovation Investment Act, enacted by the General Assembly in 2010. That initiative rewards Virginians who invest in advanced technology companies with a 100-percent exclusion from capital-gains taxes if an investment is made in the next three years.

And that is not all. Virginia also matches SBIR awards, provides aggressive tax credits for angel investors, has a state-funded seed-stage investment program and a stable corporate tax rate of only 6 percent. All of this in a state that consistently ranks first or second as the best place for business in America.

Virginians themselves have plenty of cause for optimism about the impact of biotechnology on their lives. Those sanguine sentiments go far beyond new tax policies and investment, as pivotal as those elements continue to be. Biotechnology-driven advances are saving lives or managing debilitating diseases everyday for millions around the world.

Like their counterparts nationally, these are the ideals that animate the ambitious, innovative and driven people who are the face of Virginia's burgeoning life sciences cluster.

Mark A. Herzog
The Site Selection Life Sciences Report

Hopewell's Osage Bio Energy Plant For Sale

2011-05-24T10:50:00.001-04:00

The nation's first major barley-to-ethanol factory has been put up for sale before it ever fully opened in Hopewell.

Osage Bio Energy on Monday cited "unfavorable market conditions" as the reason for its decision to sell the company and its Appomattox ethanol plant in Hopewell.

The company said it will not start production at the plant. Osage said it will lay off all but a "core group" of the plant's 55 employees as it seeks to sell the property.

Heather Scott, a spokeswoman for Osage, declined to say how many employees would remain.

Osage's key investor, the private-equity firm First Reserve Corp. of Greenwich, Conn., decided to sell the company and its assets, Scott said.

"We are very hopeful this is still a great thing for Virginia and Hopewell," Scott said. "It will just be transitioned to a potential new owner that will come in and run this company and produce ethanol."

Osage, founded in 2007, planned to make ethanol for gasoline blends used in local markets.

The company started construction in 2008 on the $160 million plant, located on a 55-acre parcel in Hopewell. The plant was only in production for several days before a fire in September 2010 caused by a mechanical failure interrupted production.

Scott said Monday that the fire was not connected to the decision to the sell the plant.

The plant was expected to bring up to $2 million a year in tax revenue for the city of Hopewell.

"The city is pleased that the new plant has been constructed," City Manager Ed Daley said. "This is a major investment in our community. We are anxious for the sale to be completed so operations can begin."

Daley said he did not know all the components of the plant or what else other than ethanol could be produced there if a buyer could not be found.

The company had planned to produce up to 65 million gallons of ethanol at the plant, using up to 30 million bushels of barley a year, much of it from farmers in Virginia.

Osage obtained barley through Perdue AgriBusiness, which contracts with farmers to grow the crop. "Perdue is responsible for the receipt of the grain, so they will work with the growers on that," Scott said.

By: John Reid Blackwell
Richmond Times-Dispatch

New Patent Expands Keraderm's Portfolio

2011-05-10T16:46:00.001-04:00

A Blacksburg company has received its fourth patent in pursuit of a lighted device that treats nail and skin infections.

The patent, granted April 5, expands Keraderm Corp.'s portfolio of three patents and broadens the company's hold on its technology, CEO William Cumbie said.

Keraderm is developing a medical device for the dermatology market. The new patent covers "a different way to generate the light," Cumbie said.

Cumbie said the patent could be thought of as an additional picket in a protective fence the company is building around itself. For technology protection, "you want to build a fence. This is just one more panel that we're putting on the fence," he said.

To advance its commercialization goals, Keraderm is conducting clinical trials and could have results by the end of the year, Cumbie said. The early stage company based at the Virginia Tech Corporate Research Center has yet to generate revenue, but has garnered investments of about $4.5 million, Cumbie said.

Some of the money came from NewVa Capital Partners, a fund through which the Virginia Tech Foundation, Carilion Clinic and Third Security support firms in the NewVa region of Southwest Virginia.

It will take additional money to bring the lighted treatment device to market, though the amount depends on the approach, Cumbie said.

The company contends that drugs are ineffective in curing fungal nail infections, which are embedded in the nail, but that its microbe-destroying light has yielded results. The light penetrates the nail and either kills the infectious microbes or renders them incapable of reproducing, the company told the U.S. Patent and Trademark Office.

Keraderm is hoping the same or similar technology can be proven to combat infections of the skin.

By Jeff Sturgeon
The Roanoke Times

Biotech Is Making Life Better In Virginia

2011-05-10T16:44:00.001-04:00

Op-Ed by Mark Herzog, printed in the Virginia Gazette and the Daily Press

Virginia's bioscience leaders met this week in Williamsburg to discuss the opportunities and challenges facing health care, public policy and biomedical innovation in the commonwealth. For more than 20 years, biomedical innovators across our state have pursued a shared passion to help their fellow citizens live longer, healthier lives.

All across the commonwealth, dedicated researchers in nearly 200 biotechnology and medical device firms are expanding the frontiers of modern medicine. They are pioneering new drugs, more effective therapeutics and life-saving medical devices

Virginia companies have developed nearly 80 marketable biotechnology products, with another 50 or so undergoing the arduous process of clinical trials.

Clearly, biotechnology has asserted itself as a vital contributor to Virginia's economic growth.

According to the Battelle/BIO State Biosciences Initiatives 2010 report, from 2001 to 2008, bioscience employment in Virginia grew by 23 percent, compared to 6 percent total growth statewide and 3.5 percent across all sectors in the U.S.

In Virginia alone, biotechnology organizations directly employ more than 20,000 people. Indirectly through suppliers, vendors and services-related companies, Virginia's biotechnology industry employs nearly 80,000 people. All told, Virginia's biotech sector generated products and services valued at more than $13 billion in 2008.

Underlying this hopeful news are some potentially worrisome issues. Like many states, Virginia's educational requirements need to be reviewed, particularly to get more students prepared for careers in the science, technology, engineering and mathematics (STEM) fields. A state's concentration of STEM graduates generally is considered to be a bellwether of its future ability to compete for jobs and economic growth, especially in the global economy. In fact, a recent study notes that Virginia is one of only 17 states without a biology requirement for high school graduation (biology is one of three laboratory options).

On the surface, Virginia's biotech sector seems to match up well in terms of the percentage of research and development activity taking place at state academic institutions like the College of William and Mary, Eastern Virginia Medical School and Old Dominion University. In fiscal year 2008, of the $70.55 billion in total academic funding nationwide, more than $550 million was allocated to biosciences research in Virginia.

That's good enough to place Virginia in the top 20, but it also points up how far the commonwealth has to go. Virginia is bookended by two states — North Carolina and Maryland — that rank fifth and sixth in the nation, respectively. In short, state policy-makers and the research community must take action now to gain full advantage of future growth in the life sciences industry.

Seeking to capitalize on the nucleus of innovative research-based companies, Gov. Robert F. McDonnell earlier this year signed into law the Virginia Refundable Research & Development Tax Credit, which recognizes the enormous upfront expenses emerging advanced-technology companies typically absorb during the arduous journey of bringing cutting-edge products and services to market.

The refundable aspect of the tax credit gives cash-strapped bioscience companies more elbow room to pursue their innovative ideas without having to worry quite as much about meeting expenses before revenue comes rolling in.

The new legislation complements the Virginia Innovation Investment Act, enacted in 2010. That initiative rewards Virginians who invest in advanced technology companies with a full exclusion from capital-gains taxes if an investment is made in the next three years.

Biotechnology-driven advances are saving lives or managing diseases every day for millions around the world. Biotech treatments have increased life expectancy for cancer patients by three years since 1980. Three years may not sound like much, but if you're a parent it can seem like a new lease on life — it may be just enough time to watch a grandchild graduate from college or walk a daughter down the aisle on her wedding day.

Like their counterparts nationally, these are the ideals that animate the ambitious, innovative and driven people who are the face of Virginia's burgeoning biotechnology cluster.

Herzog is the executive director of the Virginia Biotechnology Association.

Virginia Tech Proposes 5 New Degrees

2011-04-12T15:02:00.001-04:00

The engineering, biological science and nanotechnology degrees would help students interested in higher-level science fields better prepare for graduate school.

And, the degrees could initiate new partnerships with the Virginia Bioinformatics Institute at Tech. There, laboratory scientists work cooperatively with high-level computer programmers and other scientists to produce new cancer treatments, among many other sponsored research projects.

Developed in consultation with alumni who work in real estate, that degree proposal would incorporate studies in engineering, agriculture and business, among other elements. If it is ultimately offered, the degree is expected to allow students to take advantage of a housing market rebound, Wubah said.

It is also thought that graduates of the program would be well-positioned in the field because officials found that about "25 percent of Northern Virginia real estate is controlled by Hokies," Wubah said.

All the new proposed degrees would emphasize interdisciplinary studies and undergraduate research -- two major areas of focus at Tech.

In fact, research and interdisciplinary elements will be required for any new undergraduate programs, Wubah said.

"Siloed programs ... are not the future," he said. "The major problems we face ... can't be solved in one discipline. If you take energy, water. Solving those problems takes understanding beyond one discipline."

Requiring biology students, for example, to also take a course in physics and another in chemistry produces graduates who are aware of how other scientific disciplines affect their own field.

"They will have an area they will focus on. But we want them to think laterally," Wubah said.

Wubah came to Tech in 2009 from the University of Florida, where he served as associate provost for undergraduate academic affairs. Since his arrival, he has adopted a review system for new degree proposals similar to one used by graduate school Dean Karen DePauw.

Under this system, concept plans for new degrees are reviewed first by the dean, and then by a committee system within the university. Market research and a detailed explanation of how the degree will prepare students for academia or the work force are required.

If approved by the University Council and the board of visitors, the plan then goes to the State Council of Higher Education for Virginia, and in some cases the Southern Association of Colleges and Schools, for final approval.

From start to finish, implementation of new degrees normally takes about three years, Wubah said.

Both the undergraduate and graduate offices keep and monitor a prioritized list of new program proposals that is reviewed on an annual basis.

Since 2004, the graduate school has used the same process to add 11 new doctoral and master's degrees, as well as certificates and dual degree programs, DePauw said.

Since coming to Tech in 2002 from Washington State University, DePauw has nurtured a resurgence of graduate education at Tech. That resurgence has been instrumental in boosting Tech's overall goal of increasing funded research contracts, as well as helped foster the university's diversity and equity goals.

DePauw echoed Wubah's comments on the importance of an interdisciplinary approach to new degree development, saying she has watched the trend grow in importance over the past 20 years.

Research and science have not been the only areas of focus for the grad school, however. DePauw pointed to the creation of a doctorate in rhetoric and writing and Master of Arts in foreign languages, cultures and literature, and creative technologies.

Research and STEM (science, technology, engineering and mathematics) remain the primary focus of Tech's growth, however.

Increasing research funding has been a signature goal of President Charles Steger's administration, and it has become more important as the university looks to high-tech companies, federal agencies and others for grant money to help offset declining state funding.

Officials say that outside money helps fund salaries, erect buildings and buy laboratory equipment, among other benefits.

By: Tonia Moxley
Roanoke Times

2011 Virginia State Science Fair Awards for Biotechnology

2011-04-06T16:16:00.002-04:00

The Virginia Biotechnology Association (VABIO) in conjunction with the Chesapeake Bioscience Education Foundation presented awards at the 2011 Virginia State Science and Engineering Fair on Saturday, April 2, 2011, at Old Dominion University in Norfolk. The volunteer judges studied the abstracts prior to their arrival at the Fair and then voted on the top ten projects to interview one-on-one. Photos from the competition are available here.

"Once again, the students' projects amazed the judges. It was hard to choose among so many excellent projects," said Mark Herzog, VABIO executive director.

After talking with each of the students, the judges made their final selections:

First Place: Charlotte Nina Keeley and Emily Jane Keeley
“Creating a SmartBandage: A Nanoparticle-Embedded Polymer to Detect Local Oxygen Levels in Wounds” (ENT007)
Category: Engineering: Materials and Bioengineering
Region: Charlottesville

Second Place: Choonh-Seoup Youn
“Regulation of Telomerase Activity in Prostate Cancer Cell by a Novel Protein, DEK” (CMI003)
Category: Cellular – Molecular Biology
Region: Fairfax

Third Place: Benjamin Tyler Cobb and John Conor Moran
“Identification of Novel Stress – (Cortisol) Dependent Cisplatin Resistance in Lung and Breast Cancer Cells” (CMT002)
Category: Cellular - Molecular Biology
Region: Fairfax

Thank you to our VaBIO Judges:
David Anderson, Vice President Scientific Affairs, Lyotropic Therapeutics, Inc.
Martin Chapman, President, Indoor Biotechnologies, Inc.
Michael Francis, Research Associate, LifeNet Health
Mark Herzog, Executive Director, Virginia Biotechnology Association
Eugene Maurakis, Director of Science Education, Science Museum of Virginia
Roy Ogle, Director of Regenerative Medicine, LifeNet Health
Gary Pekoe, Founder, Arkios Biodevelopment International
Patrick Sachs, Research Associate, LifeNet Health

The winners are eligible to be considered for the 2011 Virginia BioGENEius Challenge team that will compete at the national challenge in June at the BIO Convention in Washington, DC.

Local News Video: New Biotech Labs for Charlottesville

2011-03-29T08:26:00.004-04:00

The historic former home of Coca-Cola in Charlottesville is getting a new high-tech future. Monday morning, the city announced a major development will fill the space on Preston Avenue with labs and research companies. This project is a first for the city.

Citycampus Biotechnology Center will begin transforming the 72-year-old former soda bottling plant into state-of-the-art labs. The city and Virginia Biotechnology Association presented the plans Monday morning.

Citycampus Center will be the first fully-equipped wet lab space in Charlottesville - labs where researchers can test chemicals, drugs, and biological materials. Indoor Biotechnologies Incorporated is buying the building from Coke and will be the lead tenant in Citycampus.

The United Kingdom based company sells allergy and asthma products and services around the world.

Indoor Biotechnologies President Martin Chapman said, "If we provide space for expansion, we can clearly develop more of that industry and hopefully recruit biotech companies to come from other parts of the state, which would be terrific."

The project to rehabilitate the 1939-era Coca Cola building will cost Indoor Biotechnologies $3-$5 million and will take about two years to finish. At full-build out, the facility will create 110-150 high-tech, high-paying jobs.

The city expects the project will keep UVA research spin-off companies in Charlottesville.

Click here for the video link: http://www.nbc29.com/category/175568/video-landing-page?clipId=5701013&autostart=true

Insmed Regains NASDAQ Compliance

2011-03-22T13:46:00.001-04:00

Insmed Incorporated (Nasdaq CM: INSMD), a biopharmaceutical company, today announced that it has received notification from The NASDAQ Stock Market that it has regained compliance with the minimum $1.00 per share bid price requirement.

To regain compliance with the bid price rule, Insmed was required to maintain a minimum closing bid price of $1.00 per share or more for a period of at least 10 consecutive business days. On March 16, 2011, the closing price of Insmed's common stock was $5.02 per share, the tenth consecutive business day the stock price had closed above $1.00 per share. The NASDAQ Capital Market has indicated that this matter in now closed.

Insmed will continue to trade on The NASDAQ Capital Market.

March 21, 2011
citybizlist

ADial Pharmaceuticals, Led by UVA Profs, Raises $4.1M

2011-03-22T13:42:00.001-04:00

According to an SEC filing, ADial Pharmaceuticals, L.L.C., developer of medications to treat addictions, completed a $4.1 million offering.

The company was founded by Prof. Bankole Johnson, who serves as president and chairman.

Dr. Johnson is Alumni Professor and Chairman of the Department of Psychiatry and Neurobehavioral Sciences at the University of Virginia. He is well-known for his discovery of compounds that have been effective in the treatment of alcoholism. Professor Johnson also received national media attention for his appearance in the Home Box Office (HBO) original documentary feature, "Addiction", which won the prestigious Governors Award, a special Emmy Award, from the Academy of Television Arts and Sciences.

Dr. Johnson is named in the filing, along with CEO William B. Stilley and CFO John F. Riccardi; and directors Robert S Capon, Mike L. King, Ming D Li, and Wendy L Yarno.

Capon, King and Li are all members of the University of Virginia faculty. Capon was also the co-founder and former CEO of Charlottesville-based Adenosine Therapeutics.

March 16, 2011
citybizlist

Virginia To Start Using Familial DNA Searches for Criminals

2011-03-21T10:49:00.001-04:00

Governor Bob McDonnell announced today that the Virginia Department of Forensic Science (DFS) has developed the capability to perform a technique known as familial DNA searching. This application will expand DFS’ ability to assist in criminal investigations by searching its DNA database for a person or persons who may be closely related to an unknown individual, not in the database, whose DNA has been identified on an item of crime scene evidence and consequently is being sought as a suspect in a specific crime.

“It is vital that our law enforcement agencies have every available tool at their disposal to protect public safety and investigate the most violent crimes in the Commonwealth,” said Governor McDonnell. “This new technology will allow forensic experts to develop leads otherwise unavailable to law enforcement officers that can expedite the identification of criminals in certain cases and can get these offenders off the streets before any further loss of life or injuries to citizens occur.”

Familial DNA searching is currently being used in California and Colorado to provide law enforcement investigators leads to possible criminal suspects, and was instrumental in the 2010 capture of a murder suspect in California’s “Grim Sleeper” cases. The computer software required to perform a familial search of profiles in Virginia’s databank of convicted offender and arrestee DNA samples was developed by and provided to DFS without cost by the Office of Denver District Attorney Mitch Morrissey. The acquisition of the Denver software and the DFS laboratory personnel’s review to validate its suitability for searching Virginia DNA databank profiles followed requests from several local prosecutors to consider applying the technology to a number of unsolved crimes that occurred in the Commonwealth.

Virginia law requires that persons convicted of or arrested for certain specified crimes provide a sample of their DNA for inclusion in the state databank of DNA profiles. In a typical search of the database, a match is determined if a DNA profile in the databank is essentially the same as a DNA profile found on crime scene evidence. If a typical search does not result in a match, it is possible that a familial search could identify one or more database profiles that bear a strong similarity to the crime scene profile, suggesting that the persons who provided the DNA may be related. Further DNA analysis can be conducted to determine the likelihood of a family relationship before the names of potential relatives are provided to law enforcement officials for investigation. The success of identifying a lead to the perpetrator of an unsolved crime depends upon a parent, child, or sibling of the perpetrator having previously provided a DNA sample by law as a convicted offender or arrestee.

“I am grateful for the assistance the Commonwealth has received from Denver District Attorney Mitch Morrissey and his staff, and I am enormously proud of the effort undertaken by the Virginia Department of Forensic Science to put this technology in place,” said Governor McDonnell. “As always, DFS has proceeded with the care and deliberation required to ensure confidence in its results and the highest level of service to the law enforcement agencies of the Commonwealth. Familial DNA searching, which must be used cautiously and sparingly, provides another important tool to assist law enforcement in some of their most difficult and heinous cases where the safety of the public remains a concern.”

DFS has issued a policy for considering requests from law enforcement officials to conduct familial DNA searches in cases involving unsolved violent crimes against persons where other investigative leads have been exhausted and critical public safety concerns exist. In such a case, if crime scene evidence has yielded a DNA profile suitable for searching and law enforcement officials and prosecutors commit to further investigation if a potential relative is identified, the DFS director will direct that a familial DNA search be performed in accordance with departmental scientific protocols.

Commonwealth Biotechnologies removes board chairman

2011-03-16T10:03:00.001-04:00

Commonwealth Biotechnologies Inc. said it has removed its board chairman after he urged shareholders to support his own reorganization plan for the company, which is operating under Chapter 11 bankruptcy protection.

The Chesterfield County-based research and development company said in a statement Tuesday that its board voted March 11 to remove William Guo as chairman and as a director of the company.

Guo, an entrepreneur in China who founded the pharmaceutical company VenturePharm Group, filed various submissions with the Securities and Exchange Commission on March 9, March 11 and again on March 14.

In the filings, Guo urged shareholders to support a reorganization plan that would make him the sole director of the company at a salary of $1. His letter to shareholders claimed that the company's co-founder and chief executive officer, Richard Freer, was unqualified to serve as CEO. He called for a shareholders' meeting in late March.

The company said in a statement Tuesday that Guo's filings were "unauthorized" and were "replete with factual errors, misleading comments and baseless allegations."

The company said its board of directors demanded that Guo retract the statements and inform the Securities and Exchange Commission that the filings were unauthorized. He declined to do so, according to the statement by the company.

Guo also called for the company to delay the sale of its 32,000-square-foot building at 601 Biotech Drive in Chesterfield. Instead, Guo said he wants to cut the company's administrative expenses and pay off its unsecured debt partially with common stock and partially with cash from the sale of its only remaining operating unit, Mimotopes Pty Ltd., a drug discovery and research business in Australia.

A phone message left Tuesday at Commonwealth Biotechnologies seeking comment was not returned. A U.S. representative for Guo listed in the SEC filings said Guo was not available for comment Tuesday.

Commonwealth Biotechnologies provides research services to the biotech industry. Founded nearly 20 years ago by four Virginia Commonwealth University scientists, it was the first business to occupy space in the Virginia Biotechnology Research Park in Richmond in 1994.

In 1999, two years after it sold stock publicly, it moved to a new headquarters and laboratory building in Chesterfield.

After reporting millions of dollars in annual net losses since 2006, the company announced plans last year to sell its assets, pay off its debts and seek a merger partner.

It filed for Chapter 11 bankruptcy protection in January to protect itself from creditors and to halt a foreclosure auction of its building.

The company's plan is to sell its assets and make itself a shell company. It would then seek to complete a "reverse merger" by finding a privately owned company seeking to become public by acquiring a shell business with stock that is already publicly traded.

By: John Reid Blackwell
March 16, 2011
Richmond Times-Dispatch

Daily Progress: VA Needs to Focus on Biotech

2011-03-08T16:58:00.003-05:00

In the University of Virginia, our Charlottesville region possesses one of the nation’s top teaching hospitals and one of the nation’s top business schools. For these reasons and more, our area already is doing well in biotech entrepreneurship.

But it could be positioned for even greater growth.

And the commonwealth as a whole would be smart to better support this important and growing industry, for the sake of economic and humanitarian advancement.

Biotech is a special industry, says Mark Herzog, executive director of the Virginia Biotechnology Association — both in its promise and in its needs.

Some of the most exciting innovations in science are occurring in this field, including in such areas as potential cures for cancers and bioremediation of pollution. When this research comes to fruition, the gains for humanity will be enormous.

Already, quality and longevity of life are being immensely improved by biotech advances.

Although biotech scientists generally pursue their research for love rather than riches, the economic benefits from biotech also can be substantial. And it is economic benefit to the community, more than to the individual, that brings the biggest payoff.

Biotech firms need highly trained workers, who can be highly paid for their special skills, and that money helps feed the local economy.

Biotech firms need support businesses — from accountants, to attorneys (working through red tape can take years) to advertising experts (to market successful products). Spinoff and support firms also contribute to the economy.

†Biotech firms also have special needs. In addition to specially trained workers, they also need specialized facilities, particularly wet labs. It is far more expensive to build these facilities than to construct typical office or manufacturing space.

Higher startup costs unfortunately often combine with delayed return on investment. It can take 20 years to bring a new drug to market — 20 years of meticulous research, testing and adhering to government regulations.

The rewards from biotech research can be huge — equally, the risks. Although some “angels” are attracted expressly to the excitement of bioscience, many venture capitalists don’t understand the unusual realities of the industry, or are unwilling to accept its uncertainties.

That means funding for promising new fields of research can be hard to come by.

It’s also why the statistic cited in the March 6 editorial is so important. Virginia is not just 50th, but 52nd — behind even Puerto Rico and the District of Columbia — in categories tracking changes in the amount of grant money our companies are able to attract from the National Institutes of Health. Even when public money is available, Virginia is doing a relatively poor job of pulling it in.

That’s just one measure of success, but it tells a vital part of the story.

Other states are forging ahead in biotech research — in fact, they are so far ahead that our own young scientists are leaving to pursue careers elsewhere.

With its nationally ranked universities, its ties to the defense industry and its proximity to Washington, Virginia could be — should be — a leader in bioscience. But Virginia must determine to capitalize on those resources and determine to add to them.

The risks of inaction are high; the rewards of success, virtually unlimited.

Editorial By The Daily Progress, Published: March 08, 2011
http://www2.dailyprogress.com/news/2011/mar/08/va-needs-focus-biotech-ar-891518/

Va Should Position For Growth

2011-03-07T10:37:00.002-05:00

The greater Charlottesville region is home to more than 17 percent of the state’s biotech companies, based on information from the Virginia Bioscience Directory.

It contains more than 20 percent of the state’s bioscience equipment companies, nearly 18 percent of its medical device companies and nearly 17 percent of its bioenergy companies.

That’s a pretty good record — and it doesn’t even include firms in nearby Waynesboro and Staunton.

And it all adds to the local economy.

With much of this innovation sparked by the University of Virginia, the region is doing well in comparison with other parts of the state. But more could be accomplished.

And significantly more could be accomplished statewide if the commonwealth’s leadership would bring state policies up to speed in this emerging tech field.

That’s the view of Virginia Biotechnology Association Executive Director Mark A. Herzog. He was in Charlottesville last week for a biotech conference and took time out to speak with The Daily Progress editorial board. And he made a strong case for increased public support of biotechnology startups and homegrown companies.

First, a snapshot of where Virginia stands today in comparison with other states:

“When’s the last time you saw Virginia at the bottom of anybody’s list?” Mr. Herzog asked.

Well, there we are: Not just 50th, but 52nd — behind even Puerto Rico and the District of Columbia — in categories tracking changes in the amount of grant money our companies are able to attract from the National Institutes of Health. The figures from a Batelle study show that Virginia actually lost ground in those categories from 2004 to 2009.

It’s just one small part of the overall picture — but it’s a dramatic one, and deserves attention.

Here’s another startling statement: “We’ve become an incubator for other states’ bio industries,” says Mr. Herzog.

Too often, our people — UVa post-docs, for instance — cannot remain in the commonwealth because the jobs aren’t here, and the jobs often aren’t here because the venture capital for exciting new startup companies comes from out of state.

In other words, Virginia might be producing brilliant researchers who have world-class ideas for new medical drugs or new biofuels, but we are not always providing an environment that allows them to develop their ideas and take them to market. We are not completing the loop. And when they must export their ideas elsewhere, Virginia experiences the ill effects of brain drain and lost economic opportunities.

Clearly, the Charlottesville region isn’t doing too badly, with its relatively high percentage of biotech companies. But imagine how much more powerful that economic engine could be if the state provided the right tools for growing it.

Some of the world’s most exciting — and humanitarian — innovations are occurring in this field. And Virginia should position itself to be an integral part of these advances.

The Daily Progress

VA Assembly Honors Henrietta Lacks

2011-02-23T16:25:00.001-05:00

From the Virginia Pilot:

Va. legislators honor woman whose cancer became a cure

After six decades of obscurity, Henrietta Lacks was honored Tuesday by the Virginia General Assembly for the revolutionary advances in medicine made possible by her harvested cancer cells.

Watching from the gallery were surviving family members, many of whom lack health insurance as biomedical companies make millions from her legacy.

A doctor from the medical school where the saga began acknowledged that the case raises difficult issues of medical ethics.

Lacks was born in 1920 and raised by her grandfather on a tobacco farm in Clover, a crossroads in Halifax County where her ancestors had toiled as slaves. She married in 1941 and moved to Baltimore.

In 1951, she died of cervical cancer at Johns Hopkins Hospital, where doctors – following the common practice of the day – had taken samples of her tumor without asking permission of Lacks or her family.

The cells, it turned out, had an incredible ability to divide and replenish themselves indefinitely, creating a line that has been used worldwide in medical research. HeLa cells, as they are known – an abbreviation of Lacks’ first and last names – contributed to the invention of the first effective polio vaccine by Jonas Salk and treatments for cancer and AIDS.

Lacks’ family didn’t learn the full story of her monumental contribution to medicine until publication last year of the widely praised book “The Immortal Life of Henrietta Lacks” by Rebecca Skloot.

They listened Tuesday as Del. Jeion Ward, D-Hampton, sponsor of a resolution commemorating Lacks in observance of Black History Month, called her story “a source of pride and celebration not just for African Americans but for all mankind.”

Among those at the presentation and a news conference was Lacks’ son David Lacks, 63, a part-time truck driver in Baltimore with no health insurance.

He and other family members have struggled to make sense of a system in which corporate medicine benefited handsomely from their ancestor’s legacy while they scraped by.

“It would be nice if we could get some compensation,” he said.

Dr. Daniel Ford, vice dean for clinical investigation at Johns Hopkins, said “it has taken too long for Johns Hopkins to recognize the contribution of Henrietta Lacks.”

But any financial payment to the family by the hospital would be a “bad precedent,” Ford said, noting that Johns Hopkins gave the cells away to other researchers. It now pays $100,000 a year to companies that produce HeLa cells for research at Hopkins.

The compensation issue is “a very complicated question,” he said. “As a society we’re all still trying to work that out.”

http://hamptonroads.com/print/590040

Is Randal J. Kirk Biotech's Best Investor?

2011-02-23T09:43:00.002-05:00

"This morning, Forest Laboratories announced plans to buy anti-depressant maker Clinical Data for $30 per share, plus a $6 dollar payout contingent on sales of the company’s drug, Viibryd. I wanted to get this story — a portrait of Clinical Data’s main backer, billionaire investor R.J. Kirk — out as quickly as possible.

The print story, which I wrote with Robert Langreth, will appear in the next issue of Forbes magazine. The deal pays out less than Clinical Data’s $33.90 closing price on Friday, but still locks in plenty of gains for Kirk, who has been backing the company for years. The full magazine story appears below." - Matthew Herper

Grand Plans

Investor Randal J. Kirk became very rich making small improvements to old drug classes. Now he and partner Thomas Reed want to change the world.

Biotechnology produces few billionaires. The high costs of drug development mean that most early investors no longer own big stakes by the time a medicine finally gets to market. Randal J. Kirk, a Virginia biotech investor whose net worth FORBES estimates at $2.2 billion, upends this rule. Instead of spreading his bets and taking profits early like most venture capitalists, Kirk bets big on a few small companies and stays the course until a product gets to market. He reaped $1.2 billion in 2007 when he sold his New River Pharmaceuticals and its attention deficit disorder drug to Shire for $2.6 billion. His next big score could come from his biotech company Clinical Data, whose antidepressant Viibryd was approved in January. Its shares have doubled this year on speculation that Kirk will soon sell to a big drug company desperate for new products. Kirk, with common stock, convertible notes and warrants, is sitting on a 52% stake worth over $600 million. [Note: Clinical Data today announced plans to sell to Forest.]

But Kirk says everything he has done in the past pales next to the potential of his latest project: Intrexon, a secretive research-stage company that is working on the hot new field of synthetic biology—basically genetic engineering on steroids. Kirk and his investment fund, Third Security, have poured $200 million into the closely held 180-person company based in Blacksburg, Va., which has no drugs on the market.

“I’ve been a biotech investor for 27 years, and Intrexon is by far the best thing I’ve ever seen,” says Kirk, 56, who raises falcons and composes electronic music on a 7,200-acre cattle farm in rural Pulaski County, Va. He likens Intrexon to “the Google of the life sciences” and predicts that in a decade it could become “the largest, most significant company” in its burgeoning field.

Today’s biotech industry makes modest genetic tweaks to living cells—adding or deleting single genes so bacteria will produce insulin or corn will resist pests, for example. Synthetic biology aims to make much more radical changes and reengineer living cells from the ground up. One goal is to make protein drugs far more cheaply and efficiently than is possible today. Another is to transform living cells into tiny molecular factories to make everything from gasoline to construction materials. Some scientists even want to create entire new life forms from scratch.

Lots of big scientific names are working in synthetic biology, which so far has produced lots of hype and headlines but few practical breakthroughs. Gene jockey J. Craig Venter, known for sequencing the first human genome in 2000, leads a company called Synthetic Genomics that has a $300 million deal with ExxonMobil to make designer biofuels.

Intrexon has released few details about which products it is pursuing. Its lead drug is only at the earliest stage of human trials. It is so obscure that three prominent synthetic biology researchers contacted by FORBES—including Venter—said they had never heard of it. Kirk shrugs. Among other colossal ambitions, he wants to revitalize the troubled field of gene therapy, make dozens of inexpensive protein drugs and produce better genetically engineered crops that will benefit consumers, not just farmers. The company is also working on biofuels, designer enzymes, bioplastics and unspecified consumer products. Keeping the work secret is part of the plan, Kirk says. “If we were in the business of publishing, we could get the cover of Science magazine any issue we wanted,” he boasts.

The scientist behind Kirk’s mystery company is the 45-year-old molecular geneticist Thomas Reed. He founded Intrexon in 1998 while still completing his Ph.D. and postdoctoral work in cardiovascular genetics at the University of Cincinnati. “I think of him as the Henry Ford of DNA,” says Kirk. “We are all living in his dream.”

By Robert Langreth and Matthew Herper
Forbes Online

Genzyme CEO on How Biotech Grew in Boston

2011-02-16T08:21:00.001-05:00

Henri Termeer quote on how biotech grew in Boston:

"Genzyme and other Boston biotech companies, like Biogen and Genetics Institute, grew here, Termeer told me, because of the presence of top-notch universities and venture capitalists with money to invest. One thing that wasn't here: big pharma companies. Their absence allowed Genzyme and others to hire the best scientists and product development people, and point them at audacious goals. "It was a magnificently pioneering time," Termeer said. The biggest pharmaceutical companies were focused on making "enormous money with small, incremental improvements on their products," and then hawking those improvements with their "enormous marketing power." That created a vacuum in which Genzyme and a handful of other big biotechs grew."

(from the Boston Globe)

Chesterfield Business Tests Building Systems

2011-02-14T14:28:00.002-05:00

Bill Wassum's hunch about adding a niche service to C&W Tesco Inc.'s operations in 2003 has paid off.

"I saw it on the horizon," he said about providing the service, called building-systems commissioning, that ensures building systems such as lighting, plumbing and heating, ventilation and air conditioning operate together as intended.

"No one was doing it in this area. I thought we should go after it."

Adding the niche service has meant hiring more workers and increasing sales at the Chesterfield County-based business.

Twenty employees — eight in the past three years — have been hired since 2003. "And we are keeping them busy," Wassum said.

The company, which also provides testing and balancing of building systems, grew 300 percent in sales between 2003 and 2009.

Much of that growth came from adding building-systems commissioning services. But part of the increased revenue is a result of the company's in-house training program, Wassum said.

"We have positioned ourselves trainingwise and philosophywise to take advantage of the market. We have worked hard on seeing problem jobs to the finish."

Bob Randall, energy manager for Stafford County Public Schools who also did testing and balancing of HVAC systems for 20 years, describes C&W Tesco as "an old-school company."

"They do very good quality work, and they are very easy to get along with," he said.

Bob Fagel, senior project general manager for Centennial Contractors Enterprises Inc. in Reston, looks to C&W Tesco to resolve issues he might have regarding building systems. Centennial is working on a contract at Fort Lee.

"They are very professional in everything they do with us," Fagel said. "We look at them as part of our team when it comes to working on mechanical projects with the government. They are very much responsible for some of the success we have had here at Fort Lee."

Providing employee training is key for C&W Tesco, Wassum said.

"We have a class for employees every two weeks. We teach from the technician's training manual," he said. "We have managed to certify all but six employees."

Certification will become even more important in the years ahead. The National Environmental Balancing Bureau and the Associated Air Balancing Council will require that every job have at least one certified technician on site beginning in 2012, Wassum said.

"We have been doing that since 2003," he said.

Ray Burroughs, estimator for Atlantic Constructors in Chesterfield, uses C&W Tesco for tough projects. "They are reliable, and their estimating is always on time," he said. "They provide quality proposals."

C&W Tesco's clients include federal, state and local governments as well as retail, commercial and industrial companies. The firm does 90 percent of its work in Virginia but has taken jobs across the country and also in Warsaw, Poland.

"We are certified worldwide," Wassum said.

He thinks biotechnology will become a growing market for C&W Tesco, which recently became involved with the Virginia Biotechnology Association.

The biotechnology corridor from Tidewater through Charlottesville is a big market for testing, he said.

Two of the company's employees recently completed classes offered by the National Science Foundation in a type of biotechnology testing. They also have taken classes in the testing of fume hoods, which can detect toxic gases.

"We are currently getting our certification in that," Wassum said.

The company is exploring the market demand for its biotechnology services overseas.

"We will go anywhere that we are qualified to do the work," Wassum said.

Wassum started the company in 1983 with Carol Comstock as C&W Air Balancing, providing testing and balancing of HVAC systems. Comstock left C&W in 1984.

Tom Howard became an owner in 1995 after C&W merged with his Virginia Test & Balance company. John Papazian did the same in 2004 when his company, Tesco, merged with C&W, and the company changed its name to C&W Tesco.

By Joan Tupponce
Richmond Times-Dispatch

WVA Steps Up Recruiting Efforts

2011-02-14T14:01:00.003-05:00

Maryland and Virginia are always competing with each other for big-name technology companies to locate to their states.

Now, West Virginia may be jumping into the fray.

A West Virginia economic development organization has hired CSC, a Falls Church, Va.-based IT solutions and services firm, to bring more biometrics companies to the state. And the organization recently devised a plan to increase its bioscience industry.

CSC, which usually gets hired to provide tech solutions and services to commercial and government customers, will spend the next 18 months developing a biometrics and identity program for TechConnectWV, a not-for-profit group that’s trying to bring more technology companies to West Virginia.

The program, which is being run by CSC’s Identity Labs in Fairmont, W. Va., is expected to advance the state’s identity management industry and spur job growth, intellectual property development and sustainable business.

Much of the work will be done with the newly formed Biometrics Innovation Institute Program, which is also working to accelerate the biometrics industry in West Virginia. As part of this contract, CSC will help put together a grants program to help give the industry a jumpstart.

TechConnectWV will also work on growing the bioscience industry in West Virginia. The organization’s plan is to continue growing academic-based research, advance biotech clusters by strengthening bonds between research universities and industry, improve the biotech workforce and enhance the infrastructure to help entrepreneurs grow their businesses.

Washington-area economic development leaders aren't too worried just yet.

Virginia officials, in fact, say they welcome the competition from its westward neighbor. The Virginia Biotechnology Organization even helped launch the Bioscience Association of West Virginia in 2009.

"A growing and vibrant life science industry in the Mountaineer State is beneficial to her neighbors as it means more companies, more research dollars and a wider pool of talented workers here in the Mid-Atlantic region," said Mark Herzog, executive director of the Virginia Biotechnology Association.

When it comes to competing with big biotech hubs around the country, three states are better than one, according to Herzog.

"This is critical if Maryland, Virginia and West Virginia hope to compete with the larger clusters in Boston and San Francisco," he said.

West Virginia is ripe for a biometrics industry with the presence of several government biometrics programs, including the Defense Department’s Biometrics Task Force/Biometrics Fusion Center, the FBI’s Criminal Justice Information Services division and the National Science Foundation’s Center for Identification Technology Research.

West Virginia's biotech industry grew 23.2 percent between 2001 and 2008, with 160 bioscience companies calling West Virginia home, according to figures from the Biotechnology Industry Organization.

Virginia, however, had 981 bioscience companies, growing 55.2 percent between 2001 and 2008, according to BIO.

Maryland’s industry grew 43.6 percent with 1,271 companies.

CSC says its clout in the industry and global reach could help immensely.

"Drawing on our broad range of identity experience with public and private sector clients worldwide and our unique understanding of the West Virginia biometrics community, CSC is ideally suited to provide the insight and expertise needed to successfully implement this program," said Aaron Fuller, president of CSC’s North American Public Sector Enforcement, Security and Intelligence Group.

The company did not reveal how much TechConnectWV is paying for its work on this endeavor. CSC has had a West Virginia presence for nearly seven years.

The company relocated its Identity Labs from Camp Hill, Penn., to West Virginia in 2008 to be closer to the federal government’s presence in the I-79 High Technology Corridor.

By Tania Anderson
dcTechSource.com

EVMS Creates Living Rendition of the Google Logo

2011-02-14T13:43:00.004-05:00

Hypothesis: it is possible to create "living art" using live bacteria that have absorbed food colouring

This amusing video shows how cell biology professor Dr Edward Johnson and his PhD student, Clayton Wright, from the Eastern Virginia Medical School were able to grow a 'living' Google logo in their microbiology lab as part of the Demo Slam competition.

This video reminds me of my undergraduate years when I was working towards my degree in microbiology. One of the experiments I did was to culture phospholuminescent bacteria from the gills of fish captured in the Puget Sound. After I had a pure culture, I decided I wanted to have some fun by drawing a picture, entirely of bacteria, on a petri plate. After the bacteria multiplied, that picture glowed in the dark. Like the scientists in the video, my "bacterial artwork" worked beautifully on the first try.

How the "Living Google Logo" experiment was done: E. coli bacteria BL21 LysS is a laboratory strain that is harmless to humans but very useful for growing specific genes used in studies of cancer and AIDS. These bacteria are commonly used as microscopic factories to produce millions of copies of these genes which are then used in experiments.

To do this experiment, the scientists placed the bacteria into four small test tubes containing growth medium and added a small amount of common commercially available food colourings, one colour per tube for each of the four Google colors. After culturing the bacteria for four hours in the colored medium, investigator Clayton Wright used a sterile Q-tip to "plate" each population of the colored E. coli onto a Petri dish containing bacterial growth medium in agar. (Agar is a starch that hardens -- similar to gelatin -- to support growth of organisms like bacteria on a solid platform.) Clayton placed the bacteria on the agar surface in the Google logo style.

The scientists' primary concern was that the colouring would diffuse out from the bacterial colonies and not make a coherent Google logo. But after an overnight incubation, they found that did not happen. The coloring stayed with the bacteria quite well, and the Google logo grew out very nicely. They anticipated having to repeat this experiment many times to get it right, but it came out beautifully on the first try.

From: Punctuated Equilibrium

MD & VA in Top Three AP Scores

2011-02-09T12:48:00.000-05:00

The top 10 states with the greatest proportion of their seniors from the class of 2010 having at least one successful AP experience were: Maryland (26.4 percent), New York (24.6 percent), Virginia (23.7 percent), Connecticut (23.2 percent), Massachusetts (23.1 percent), California (22.3 percent), Florida (22.3 percent), Vermont (21.8 percent), Colorado (21.4 percent) and Utah (19.2 percent). More: http://multivu.prnewswire.com/mnr/collegeboard/47746/

One question with Joe Meredith, president of the Virginia Tech Corporate Research Center

2011-01-31T11:43:00.001-05:00

Do you have to be a rocket scientist to run the Virginia Tech Corporate Research Center?

Considering his educational background, you'd expect Joe Meredith would spend his days designing high-tech weapons systems, space shuttles and manned missions to Mars.

A bachelor's degree in aerospace engineering from Virginia Tech. A master's degree in aeronautics, astronautics and engineering science from Purdue University. A doctorate in industrial and systems engineering from Virginia Tech.

But for the past 18 years, Meredith's design work has dealt mostly with business plans and lease contracts as president of the Virginia Tech Corporate Research Center.

During his tenure, the center has grown to include 27 buildings with about 1 million square feet of space on a 120-acre campus. It is home to 140 private companies that employ more than 2,200 people. VT Knowledge Works, an incubator program at the center, is working with more than 50 startup companies. In September, the center was named the 2010 Outstanding Research/Science Park by the Association of University Research Parks.

So do you have to be a rocket scientist to run the Corporate Research Center?

"Gosh, I hope not, or I'll never be able to retire. I don't know that the aeronautics has had any benefit. I do think having a technical education has allowed me to develop stronger relationships in the park with companies that have managers who are technologists. It's easier to develop rapport if you think you have the same technical background.

"One of my educational experiences was at Defense Systems Management College [a U.S. government school for Department of Defense weapons systems program managers]. So I did have a number of business-related courses. Even though I don't hold a business degree, I got a little more business education than other engineering students.

"The CRC promotes two strategies: starting up and recruiting early stage companies as well as attracting large companies. At Newport News Shipbuilding [his previous employer; now Northrop Grumman], I was what is known as an 'intrapreneur' ... an entrepreneur working within a large company. When they had either new products or new divisions that they were interested in setting up, I had the opportunity to develop business plans and try to develop consensus to launch that initiative and raise money within the company to do that.

"Even as an intrapreneur I had to raise money within the company to launch a venture I was trying to launch. That gave me an appreciation of the challenges that an entrepreneur faces, and gave me insight into how large companies think. It gave me the experience to both encourage startups and attract major companies to the CRC.

"By having an engineering degree, you signal to the world that you're pretty much an analytical, logical thinker. As a result, people perceive me as predictable.

"Risk and your approach to risk are two different things. Engineers approach risk for risk minimization and predictable outcomes. I'm not going to do anything wild and crazy and out of the box. As an engineer, I hope people find me to be more approachable and more dependable."

By Michael Hemphill, special to The Roanoke Times

Richmond study recommends support for biotech park

2011-01-24T10:37:00.002-05:00

An economic-development study prepared for the city of Richmond calls for enhancing the Virginia BioTechnology Research Park and redeveloping the former Armstrong High School on North 31st Street into a training and education center.

In addition, the study recommends a redevelopment initiative in which the city would identify and assemble up to 200 acres for a new technology or industrial park or corridor.

"The best opportunities for such a redevelopment initiative lie south of the James River, especially in the Manchester area and along Commerce Road," a team of consultants concluded in the Comprehensive Economic Development Strategy study.

The 134-page report, which has been approved by the federal Economic Development Administration and is a prerequisite for federal funding, cites the area's access and proximity to rail, Interstate 95, the Port of Richmond and land that could be made available for development.

While directed largely toward federal initiatives, the study emphasizes projects that support the development of work-force skills, as well as jobs in "knowledge-based industries, such as the life sciences and biotechnology sector."

To that end, the study suggests that the city join with state and local partners to seek federal grant funding to support the proposed Virginia Life Sciences Commercialization Center at the BioTechnology Research Park downtown.

As envisioned, the center would include wet and dry lab facilities, offices and space for light assembly. In addition, the city could seek federal assistance to start a revolving loan fund focused on small- and medium-size businesses in the life-sciences sector.

Further, the study calls for redeveloping the former Armstrong High School into a modern training center.

Mayor Dwight C. Jones' administration said the center would mesh with revitalization efforts for the Nine Mile Road and 25th Street corridor, as well as support institutions such as J. Sargeant Reynolds Community College, Bon Secours Richmond Health System and VCU Medical Center.

The high school was closed in 2004, when Armstrong merged with John F. Kennedy High School. The merged school, on Cool Lane, retained the Armstrong name.

The study was prepared by TIP Strategies of Austin, Texas, with help from the Hill-Christian Consulting Group of Richmond, through a yearlong process that included input from business and civic leaders.

The Hill-Christian Consulting Group is led by Sheila Hill-Christian, who worked as Richmond's chief administrative officer under then-Mayor L. Douglas Wilder, as well as a volunteer leader of Jones' transition. She also worked briefly as a paid consultant to the Jones administration and now represents the city on the GRTC Transit System's board of directors.

The Jones administration said it pushed to complete the $164,250 study after the city was on the verge of losing $105,000 in federal grant funds received from 2005 to 2007 to help cover the study's costs. The remaining costs were covered by the city.

In a rushed vote, the city council agreed last month to submit the study to the federal Economic Development Administration. At the time, council members said the Jones administration had not provided enough time to review the document.

Council members also have expressed frustration that the Jones administration has not had a dedicated, full-time director of economic development for the past 15 months. Peter H. Chapman, deputy chief administrative officer for economic and community development, has been serving as interim director while the position has been advertised.

In a statement, the Jones administration said Chapman's department has restored the city's credibility among economic-development stakeholders, including the Economic Development Administration.

"We are truly excited that another important avenue of funding will be opened up to Richmond as a result of completing this strategy," the Jones administration said.

By Will Jones
Richmond Times-Dispatch

Fast-growing firm expands at biotech park

2011-01-20T15:51:00.001-05:00

The fastest-growing company in the Virginia BioTechnology Research Park opened an expanded office and laboratory space Wednesday.

Since it was founded in 2009, Health Diagnostic Laboratory Inc. has grown from a staff of 11 people to about 180 employees. Its revenue reached about $70 million in 2010, said Tonya Mallory, the company's co-founder and chief executive officer.

The company still is hiring and expects to reach a total employment of about 210 this year.

"We're adding about a half a body a day," Mallory joked at a ribbon-cutting ceremony Wednesday for the company's expanded 42,000-square-foot office and lab space in the park's Biotech Eight building, which was shell space before HDL Inc.'s $4.2 million expansion.

"It's quite amazing what we have been able to accomplish," Mallory said. "We're glad to be in the city." She said all but a few of the people the company has hired are from Virginia.

The company's rapid growth is unusual for biotechnology, where firms often take years to develop products and grow beyond a handful of employees, or reach profitability.

HDL has tapped into growing demand in the health-care market, providing diagnostic services for physicians to help them with early detection of health conditions such as heart disease and diabetes.

The company's growth is a milestone in the park's 16-year history, said Robert T. Skunda, the park's chief executive officer.

The 34-acre park in downtown Richmond is home to 66 private sector firms, nonprofits, research institutes and government laboratories.

Biotechnology advocates hope that the General Assembly will pass legislation during the current session to spur more investment in biotechnology firms.

The Virginia Biotechnology Association backs legislation that would provide a refundable research and development tax credit for companies.

Two bills have been introduced that would provide a tax credit to Virginia companies amounting to 15 percent of the cost of qualified research and development expenses. As an added incentive to invest, the credit would increase to 20 percent if the research is conducted in partnership with a public college or university in Virginia.

"Certainly, I think it would be a help to many early-stage companies that we see here at the research park," Skunda said.

Companies would be able to apply for a refundable credit even if they are not profitable, said Mark Herzog, executive director of the Virginia Biotechnology Association.

Herzog said the credit would help companies obtain capital to reinvest in their businesses.

"In this economic environment, it is incredibly hard for many life sciences companies to obtain the capital they need to continue to make investments in equipment, clinical trials and people," Herzog said. He said 38 other states have a similar tax credit for research and development.

Mallory, the HDL chief executive, said a tax credit would help the firm expand its 10-person research and development staff.

By John Reid Blackwell
Richmond Times-Dispatch

Pixel Optics emPower featured on "Live! with Regis and Kelly

2011-01-18T14:25:00.003-05:00

Roanoke-based Pixel Optics, a company presenter at Mid-Atlantic Bio in 2008, was featured this morning on "Live! with Regis and Kelly". In a segment about the latest in technology, the Pixel Optics emPower, the world’s first electronic focusing prescription eyewear, was shown by technology expert, Leo Laporte.

NIH Board Approves New Translational Institute

2010-12-09T11:57:00.001-05:00

National Institutes of Health Director Francis Collins said that his agency took a "bold step" yesterday when a senior working group voted to create a new NIH center that will focus on advancing translational medicine and therapeutics (TMAT), and which will have major implications for the National Center for Research Resources.

The new national center will be tasked with supporting, fostering, and catalyzing TMAT research and serving as a resource for the business sector, and it will do so by taking over several of NCRR's current programs, the TMAT Working Group of NIH's Scientific Management Review Board (SMRB) agreed yesterday.

"This is a momentous occasion," Collins, who aims to have the center funded by the 2012 fiscal year, told the group after the vote.

"The creation of a new center is not something that has happened at NIH very often," Collins said, explaining that the TMAT center arose out of the scientific need for new approaches and avenues for getting medicine from the lab to the clinic more swiftly and cost-effectively.

The new entity will have three central responsibilities, according to a TMAT working group report that outlines the new center.

The center will develop and provide infrastructure for translational medicine, and will support the development of new diagnostics and therapeutics, TMAT Working Group Chair Arthur Rubinstein explained in an SMRB meeting yesterday.

The TMAT center will foster new and innovative strategies for TMAT research, including strengthening and streamlining the therapeutic development process. It also will be a catalyst and a resource for collaborations and partnerships, seeking to use the strengths of NIH and the extramural research community, government, academia, and the private sector.

The working group developed the proposal at Collins' behest, who asked SMRB in May to consider what an effective translational medicine program might look like and to identify any programs, networks, or resources at NIH that could be used to start such a center.

One of the places that the group found these existing resources was at NCRR. According to their recommendations, that center's Molecular Libraries Program (MLP - which includes the Molecular Probe Production Centers Network and the NIH Chemical Genomics Center), the Therapeutics for Rare and Neglected Diseases Program (TRND), and the Clinical and Translational Science Awards program all would be relocated into the new center. The working group also agreed that the partnership with the Food and Drug Administration, the NIH-FDA Regulatory Science Initiative, would fall under the domain of the new center.

NCRR Director Barbara Alving told the TMAT Working Group yesterday that the creation of the new TMAT center "will require that NCRR actually turn into something else."

"This is a consideration that involves not just NCRR but also the grantees, stakeholders, and other centers," said Alving, who called NCRR "a center for centers" that is "essential for the research conducted by our R01 grantees."

She said that the objectives of TMAT "cover just a range" of NCRR's portfolio, adding that the center funds the purchase and development of transformative technologies and animal models, and provides training and opportunities for minority institutions.

Alving advised the group that a financial impact report will need to be conducted, and that SMRB and NIH in general will need to "engage in dialogue with stakeholders, academic health centers, other centers at NIH, and the public," among others.

"NCRR is a unique institution," Mark Lively, a member of NCRR's National Advisory Research Council, told the group yesterday during a phase of the SMRB meeting when the floor was open for public comments.

"Its research significantly affects all aspects of our programs. If you didn't have an NCRR, you'd probably find that you need to invent it," he added. "The members of the council urge you to proceed with caution."

He added that there are many stakeholders "that we feel have not been adequately represented."

Beyond the programs that SMRB expects the new center to take over, NCRR also runs and funds the Institutional Development Awards (IdeA) program, the Shared Instrumentation Grants program, the Biomedical Technology Research Centers, the National Primate Research Centers, the Research Centers in Minority Institution program, and others.

Collins and Rubinstein both said that many stakeholders will be consulted as the process of developing the new institute moves forward. But Collins added that he wants the process to move "with due speed."

Collins said that he has assigned two senior NIH officials to seek input from NCRR and other stakeholders and to draft a report on the potential side effects of the TMAT center plan, which would be ready in three months. He said that they would begin the process as early as today.

Because efforts to translate discoveries and research into medicine face many challenges, Collins explained, "Gradual evolution is not adequate to meet these challenges."

He suggested that what may be needed is "the equivalent of punctuated evolution to transform NIH structure," and said that addressing these challenges could result in a Cambrian explosion of new discoveries.

Lively, in his statements, reminded Collins that during that explosion a great number of organisms became extinct.

GenomeWeb Daily News

McDonnell Turns To Tobacco Commission For Help Luring Company

2010-11-30T09:51:00.001-05:00

Gov. Bob McDonnell is looking to land a California biotechnology business with the help of a commission that has been struggling to fulfill its mission of revitalizing Virginia's tobacco belt.

McDonnell made a surprise visit yesterday to the executive committee of the Virginia Tobacco Indemnification and Community Revitalization Commission, but not to talk about ways to tighten oversight of its finances in the wake of a $4 million fraud perpetrated on the panel by a former state finance secretary.

Instead, the governor was there to tell the committee that he needs the commission's help in competing for business associated with Kleiner Perkins Caufield & Byers, a Silicon Valley venture-capital company whose Greentech team includes former Vice President Al Gore.

"This is a very exciting opportunity for Virginia," McDonnell said before Commerce and Trade Secretary James Cheng cautioned him about revealing details in a public meeting.

Afterward, the executive committee met for more than two hours in closed session with representatives of the California firm but adjourned its public meeting without taking further action. Members would not discuss what kind of help the governor is seeking from a commission that handles more than $1 billion in money from a national settlement of state health claims against the tobacco industry more than a decade ago.

There was no mention in the meeting of John W. Forbes II, who was sentenced to 10 years in prison last week for defrauding the tobacco commission of more than $4 million from a grant it made to a foundation he created in 2001. Forbes, who was a member of the commission as finance secretary for then-Gov. Jim Gilmore, had promised to use the money to provide educational opportunities for undereducated residents of Southside and Southwest Virginia.

McDonnell said last week that he will work with the General Assembly "to ensure that such actions can never take place again," but he offered nothing but praise for the tobacco commission yesterday.

"Overall, the commission is well-run," he told reporters, citing the leadership of Del. Terry G. Kilgore, R-Scott, who is chairman of the panel. "But there's room for improvement."

Kilgore convened the executive committee meeting after a call from the governor about the possible economic-development opportunity in the tobacco region. The opportunity would involve state incentives, including some drawn from federal stimulus funds, in a competition with Mississippi and other states to attract the unnamed business.

"Obviously, if this is in the footprint of the tobacco commission, we would be aggressive joint venturers," said Sen. William C. Wampler Jr., R-Bristol.

McDonnell hinted publicly that part of the commission's role is the five energy research and development centers it has helped establish in the tobacco belt from Halifax to Wise County. "This fits exactly into that model," he said.

Robert T. Skunda, president and chief executive officer of the Virginia BioTechnology Research Park, said the tobacco region would be attractive for companies developing alternative sources of energy, such as biomass.

Kleiner Perkins' Greentech portfolio includes 20 alternative-energy companies. The Greentech team includes Gore, chairman of Generation Investment Management, which has allied with Kleiner Perkins.

By: Michael Martz
Richmond Times Dispatch
November 30, 2010

WHITECOAT Strategies Wins Top Honors for Video Production

2010-11-19T08:14:00.002-05:00

WHITECOAT Strategies Wins Top Honors for Video Production WASHINGTON, DC -- (Marketwire) -- 11/18/10 -- The Television, Internet and Video Association of DC (TIVA-DC) awarded WHITECOAT Strategies the gold medal for best public relations/marketing video for "New Hope for Gene Therapy... A Young Boy's Fight Against Blindness" at the annual DC PEER Awards held at the National Press Club on Saturday.

WHITECOAT Strategies produced the video for the Biotechnology Industry Organization (BIO) and it premiered during the keynote speech at BIO's 2010 International Convention in Chicago. A second version of the film was later produced for the Foundation Fighting Blindness.

"Science driven companies and organizations are more challenged then ever when it comes to differentiating themselves in an increasingly confusing media environment," said WHITECOAT Strategies' Chief Creative Officer David Welch. "We're honored to win an award doing what we love to do, telling the many amazing stories of biotechnology and science through video production. I am very proud of our amazing team, which ranges from a biochemist 3-D animator to a former med student."

The video, which highlights continued advancements in gene therapy, tells the inspirational story of Corey Haas, who was born virtually blind due to a rare genetic disease but regained his vision after undergoing a gene therapy procedure.

WHITECOAT Strategies is a Washington, DC-based multimedia communications company that specializes in integrating creative, award-winning video into proven public relations and marketing strategies and incorporating social media and earned media programs. More information is available at www.WHITECOATstrategies.com.

TIVA-DC, a not-for-profit organization, was formed to serve the needs of the growing Washington/Baltimore media production community. Recognition of the outstanding work created by area professionals is one of the most celebrated social events each year: The DC PEER Awards. The event, which is held at the National Press Club, is sponsored by TIVA-DC.

Video link: http://www.youtube.com/watch?v=H0RvTOF1fEc

Embedded Video Available: http://www2.marketwire.com/mw/frame_mw?attachid=1427486

Ignite Institute Finds a Home through New Partnership with Fox Chase Cancer Center

2010-11-17T16:27:00.001-05:00

The Ignite Institute for Individualized Health will join with Philadelphia's Fox Chase Cancer Center to launch a new Cancer Genome Institute, ending the startup Ignite's year-long search for a permanent home.

A spokeswoman for Fox Chase confirmed news of the partnership with GenomeWeb Daily News this morning.

"In establishing the Cancer Genome Institute, we are reaching for a new era in medicine, one that will engage the power of the latest molecular scanning and information technologies to transform cancer research and treatment globally," Dietrich Stephan, Ignite's president and CEO, said in a statement expected to be published today. "With its rich culture of innovation and achievement in cancer science and medicine, Fox Chase Cancer Center is the right partner at the right time for this bold venture."

Neither Stephan nor a spokeswoman for Ignite returned telephone messages left this morning.

Fox Chase Cancer Center President Michael Seiden and other officials first disclosed news of the partnership to the Philadelphia Business Journal in advance of the planned announcement. Seiden told the newspaper Stephan would play a "lead role" in organizing the new institute, and in forming partnerships to create the largest genome sequencing center in the US.

One such partnership was already announced back in January, when Ignite agreed to purchase 100 SOLiD 4 sequencing systems from Life Technologies, a deal the institute said would create the largest next-generation genomic sequencing facility in North America. At the time, the company said installation of the units would "begin in the first quarter and continue through the balance of 2010."

It is not known if Ignite will be among ABI SOLiD customers upgrading their machines from the SOLiD 4.0 to the company's recently-announced 5500 series, which will supplant the previously-announced but unavailable SOLiD 4hq.

Fox Chase has emerged as a partner five months after Stephan told GenomeWeb Daily News during an interview with editors that Ignite was on track to locate a permanent facility and begin operations at a location he declined to disclose.

The interview followed setbacks earlier this year that included the loss of much of its previously-announced funding, and subsequent collapse of original plans to open in Virginia's Fairfax County.

Stephan and the institute joined officials from Fairfax County and Virginia — including Gov. Robert McDonnell and his predecessor, Timothy Kaine — in announcing the original plan last November.

But that plan collapsed after Inova Health Systems withdrew a commitment to provide $25 million over five years to the institute, citing in a statement "the scope and scale of the project and the time needed for capital development in the current market." Inova's pullout, in turn, prompted Fairfax County to retreat from its own plan to partially finance the permanent facility by issuing up to $150 million in Fairfax County Economic Development Authority industrial revenue bonds.

From: GenomeWeb Daily News

At biotech conference, a focus on finding funding

2010-11-01T16:34:00.001-04:00

The Mid-Atlantic Bio conference has built an identity by knitting together what many see as the region's biggest biotech strength, its proximity to federal labs and regulators, with what many lament as its biggest weakness, a small investment community.

The annual event, now in its seventh year, didn't deviate from that theme last week as it brought biotech executives and investors from both sides of the Potomac together at the Bethesda North Marriott Hotel & Conference Center.

Coming off a year when venture capital across most industries sank to its lowest levels in a decade, a sense of measured enthusiasm seemed to prevail as the numbers posted so far in 2010 show a slow return to pre-recession levels.

"I definitely sense an uptick in optimism," said Mark Herzog, executive director of the Virginia Biotechnology Association. His organization organized the event, along with the Mid-Atlantic Venture Association and the Tech Council of Maryland.

"It's been a very tough couple of years in the community, there are a lot of companies that have struggled to get bank loans and bridge funding to keep their business going," he said.

Biotechnology and life science companies present high-risk opportunities for investors even in the best economic conditions. Research, clinical trials and regulatory reviews are cash intensive and time consuming with the promise of returns often years away.

Most of the event's speakers and panels centered on ways to chip away at that reality, either by finding new streams of funding or speeding up the Food and Drug Administration approval process.

Taking the stage Friday, industry leaders James Greenwood, president and chief executive of the Biotechnology Industry Organization, and John Castellani, president and chief executive of the Pharmaceutical Research and Manufacturers of America, suggested tax credits and reduced capital gains taxes could spur investment.

About 24 hours earlier, Joshua Sharfstein, the FDA's principal deputy commissioner, fielded criticisms cloaked as questions about the agency's approval requirements and emphasis on safety data. Sharfstein said regulatory science "really needs to grow in concert with biomedical research" so that a balance is found between breakthrough medicines and safety.

Several top chief executives were brought in to offer business advice, including Martine Rothblatt, chief executive of United Therapeutics. She discussed public ownership. Then came a question many in the audience likely wanted to know: What do you look for in a corporate partner?

"What we ask ourselves internally is, will this be a force multiplier for United Therapeutics? Will this extend our reach, extend our revenues, extend our pipeline?" Rothblatt said.

Many of the policy discussions ran concurrently with 10-minute pitch sessions from company executives seeking investments.

One was Alan Klein, executive vice president of development at Rockville-based Sequella. The company is poised to begin trials of a tuberculosis drug in Africa by year's end, but needs funding to advance other products in development.

"Most of the companies here had to be very careful in how they got through the last couple of years," Klein said in an interview. "The private markets were either closed or close to closed ... so hopefully they're opening back up."

By Steven Overly
Washington Post

Shrinking U.S. Biotechnology Sector Lost 25% of Companies in Past 3 Years

2010-10-06T10:19:00.001-04:00

One hundred publicly traded biotechnology companies in the U.S. have been acquired or ceased operations since the end of 2007, a 25 percent drop in the number of active companies, a report said.

Companies have struggled to raise funds from public offerings and acquisitions haven’t filled the void, said John Craighead, managing director for investor relations and business development of the Biotechnology Industry Organization, a Washington-based trade group. While acquisitions of biotech companies grew to 55 in 2008 from 40 in 2007, the number fell to 38 last year and to 21 so far this year, Craighead said.

The estimated 294 public companies that remain in the biotechnology industry are in a better cash position than they were at the end of 2008, when 45 percent of companies had less than a year’s worth of funds available. Today, only 25 percent of companies have such limited resources, according to data released today by BIO.

“The biotech industry is significantly smaller than it was three years ago,” Craighead said during a presentation at the group’s annual investor meeting in San Francisco.

Since August 2009, 13 biotechnology companies have gone public and the share prices of 12 of the companies fell by an average of 20 percent once they began trading, Craighead said. The offerings were priced 30 percent below the company’s initial goals, he said.

Among surviving publicly traded companies with at least one year of cash, 40 percent have cut staff, 11 percent have issued debt and 7 percent have sold assets, Craighead said.

Rob Waters
October 5, 2010
Bloomberg

Surprise Visitor at VABIO's "Bio on the Bay"

2010-09-24T21:34:00.003-04:00

It was a beautiful day in Virginia Beach. Even with temps in the '90's, the breeze off of the Chesapeake Bay was fantastic. The Virginia Biotechnology Association sponsored a networking cruise for board members and special guests from the life science community in the Commonwealth. We even had a surprise visitor to make the day even more memorable! Our special thanks to Governor and Mrs. McDonnell for stopping by. From left to right: Jeannie Schuelke, Maureen McDonnell, Governor McDonnell, Mark Herzog and Skip Scheulke.

Thanks to all of our guests for joining us on our 2010 Chesapeake Bay cruise.

Great Short Video About Roanoke, VA

2010-09-13T12:05:00.000-04:00

Building On Biosciences

2010-09-07T09:27:00.004-04:00

Industry leaders see the newly opened Virginia Tech Carilion Research Institute as a key to cultivating the region's economic growth in biomedicine, biotechnology and health care.

Biomedical and biotechnical jobs led the region in growth last year, outpacing all other sectors.

The trend for growth is expected to continue, according to an analysis by the Roanoke Valley-Alleghany Regional Commission.

"The industry is fast becoming a strong and regionally significant engine for growth and prosperity," the report said.

Expanding on the region's growth in biosciences is partly tied to the maturation of the Virginia Tech Carilion Research Institute, which officially opened Wednesday with little fanfare.

The study showed that from 2006 to 2009, the region's overall rate of employment decreased 5 percent. However, employment in the biomedical and biotechnical sector increased nearly 8.9 percent during the same time.

"It's been quite dramatic in terms of the data," said John Hull, regional economic development manager for the commission and the person responsible for analyzing the trends for the report. "Things are happening here that aren't happening elsewhere."

Even as the sector has been identified as a significant area of economic growth potential nationally, the region's growth outpaced the nation's. Nationally, employment between 2006 and 2009 remained nearly stagnant, decreasing 0.29 percent, according to the report.

Building on the region's development in the biosciences means continuing to focus attention on things such as the new research institute, Hull said.

But for some in the community, the institute has seemingly taken a back seat to its partner the Virginia Tech Carilion School of Medicine, which began classes in August.

"We've heard a lot of talk about the medical school, but we hadn't heard a lot of people talking about the research institute," said Cory Donovan, executive director of the NewVa Corridor Technology Council. "A lot of people didn't know anything about it."

Donovan and other business leaders are looking to change the relative low profile of the institute, because they are convinced the institute is a key to the cultivating the region's economic growth in biomedicine, biotechnology and health care.

"People are just realizing that this is a huge opportunity and this is where a lot of the growth and job opportunities and economic development is going to come from," Donovan said.

In July, Donovan sought to galvanize the technology community about the potential by giving the podium to the research institute's executive director during the NCTC's monthly breakfast gathering.

It was a record crowd of nearly 150 people. After the presentation the hotel conference room was buzzing.

Michael Friedlander had been in his position as executive director of the institute for only six weeks and yet he had sparked an enthusiasm among the crowd that native business executives have long tried to elicit.

"We just got a glimpse of the future of Roanoke, and it's exciting," said Mary Miller, president of Blacksburg-based Interactive Design and Development Inc.

Friedlander ended his talk pleading for community support.

"We need community involvement," he said. "We can't do this in isolation."

An immediate response came in the form of a line as attendees with business cards in hand waited to speak to him.

Miller, who is also president of the NCTC board, said the institute allows the region to import an intelligence base that can help to stimulate more work force opportunities.

From research to business

Friedlander describes his vision for turning research into business opportunities in two waves.

First, he said he wants to concentrate during the next five years on attracting researchers and scientists to the institute.

"So in the first two to three years, it is rather unlikely that you will see things mature to a running business," Friedlander said. "I'm not saying it couldn't happen; it just doesn't happen that often."

But he noted that the researchers being recruited already are developing technology and working on projects that could be ready to move into a commercialization phase. And he said he expects to see a few spinoff companies within five years.

He has already started to build relationships with people who can help take research and transform it into a business.

One area he has already homed in on is the connections to the region's technology businesses. Donovan said a week hasn't gone by when he hasn't spoken to Friedlander. Friedlander said he has already turned to the technology community in his recruitment efforts to populate the institute with scientists to show them that there are valuable relationships that can be built.

Once spinoffs are identified, the second wave is to establish businesses in Blacksburg and Roanoke.

In Blacksburg, Friedlander said he would ideally make use of the existing Virginia Tech Corporate Research Center. But Friedlander also has a vision for developing a similar business research park in Roanoke.

"I think it is going to make sense that we are going to have to look for some sort of site in Roanoke," he said. "I don't know what form it will take yet."

He listed off possibilities of partnerships with the city or building a satellite to the Corporate Research Center.

Learning from others

It took two decades to build the Corporate Research Center into a campus with 27 buildings and 140 tenants. Currently there are about 2,200 employees working at the Blacksburg site.

The goal now is to double the size, adding 28 new buildings. A request for proposals is currently out as the center looks for a contractor to lead the expansion efforts, said Joe Meredith, president of the center.

"The expectation is it is not going to take two decades to double it," he said. "The goal is to grow the park as large and as rapidly and as diverse as possible."

The Corporate Research Center intentionally seeks out businesses in a variety of fields, but about a third of the park is populated with biotechnology companies.

Expanding the local economy is among the reasons for the park, but Meredith said he doesn't have any data on the impact the center has had in Blacksburg or the region.

He noted that they are in the midst of collecting data for an economic impact study that will be part of a larger study conducted by Virginia Tech. He didn't know when that information would be presented or have a comment on what might be found.

Other research parks, however, have established goals for achieving economic growth.

Piedmont Triad Research Park in Winston-Salem, N.C., currently employs about 925 people in 55 companies. Its collective annual payroll is more than $50 million.

The park was first conceived in the 1980s, said Doug Edgeton, the park's president. In the early 1990s development began, and in 2001, Wake Forest University Baptist Medical Center took control.

It's taken $49 million in investments in land and infrastructure to develop the park, but the plan is to expand it over the next two decades into a place that supports 27,000 jobs and produces an annual tax base of $150 million, Edgeton said.

"These are 60-year projects," he said. "It takes 40 years before there is actual traction. ... It is a journey and takes a lot of perseverance."

Edgeton is also executive vice president for Medical Center administration.

Making connections

The connections between local scientists and business leaders are paramount for any of these parks to succeed.

Edgeton said the Piedmont Triad Research Park spent nearly a decade trying to attract other companies to its new park, with no success.

"We spent a lot of money on this and did not land a single company," he said. "So everything has been startups. We learned the future is really going to be dictated and driven by how smart we are in developing our own [businesses]."

The same will likely be true for Roanoke, as the hope is to develop businesses out of the research institute. Later, that development could help attract other companies to the region, but those close to the project agree that it has to start with a focus on the local research.

Still, as more communities, both large and small, have tried to capture the economic potential behind biosciences, the competition has stiffened. Identifying venture capitalists to support emerging companies has become increasingly difficult in recent years.

In a June report, the Council for American Medical Innovation said venture capital for biosciences fell 28.8 percent from 2008 to 2009. The report also noted that the number of public biotechnology companies fell 25 percent from January 2008 through January 2010.

The recession and nation's overall economic conditions were a factor, the report said, but not the only reason. The report also cited concerns about strengthening the education pipeline for new scientists.

Along with identifying venture capital, Friedlander and Edgeton both said finding high quality chief executive talent is paramount to successful business development.

By: Sarah Bruyn Jones
The Roanoke Times
September 5, 2010

Two New Organizations Join VaBIO this week

2010-09-01T16:17:00.002-04:00

The Microbe Company, located in Christiansburg, and the University of Virgina Patent Foundation have just become the newest members of VaBIO. Please join us in welcoming them and watch for more information about them in our next newsletter.

BioForward (WI) Rebrands

2010-08-23T09:28:00.000-04:00

Biotech firms seek strength in numbers

Group holds first gathering since name, leadership change

By Kathleen Gallagher of the Journal Sentinel

Aug. 22, 2010 |(0) Comments

The organization that represents Wisconsin's biotech industry will hold its first annual conference Wednesday since changing its name and hiring a new leader.

BioForward, previously known as the Wisconsin Biotech and Medical Device Association, expects about 300 biotech industry executives to attend the conference Wednesday at the Madison Marriott West.

BioForward's major pushes are to enhance member services and to broaden the organization's membership to include more agriculture and energy companies, said Bryan Renk, who became BioForward's executive director in October.

"If we can't add value to Wisconsin's biotech industry, either we're not doing our job or we're not doing it the right way," Renk said.

The conference will include a keynote speech from Jim Greenwood, president and chief executive of the Biotechnology Industry Organization. The conference will also include discussions about personalized health care, biofuels, funding opportunities and other topics.

It will also feature one-on-one partnering meetings between industry executives and big biotech and pharmaceutical companies, as well as representatives from Manitoba, Canada.

Manitoba and Wisconsin signed an economic cooperation agreement in October 2009, and Manitoba has been looking to develop more partnerships with state companies and institutions.

The conference comes at a challenging time for the biotech industry: It is grappling with a leaner, more aggressive venture capital community. Backlogs clog the U.S. patent office. The Food and Drug Administration's pace of regulation remains an issue, as does its handling of rapidly emerging technologies like DNA sequencing. And Congress has yet to reauthorize funding for the Small Business Innovation Research grants that start-ups in the biotech industry rely on to grow.

Many of those challenges present opportunities as well, said Tom Still, president of the Wisconsin Technology Council.

"Wisconsin's biotech industry continues to be a bright spot in terms of company creation and job creation," Still said.

Wisconsin increased the number of biotech industry jobs in the state by 15.8% from 2001 through 2008, on par with averages for biotech industry growth nationally, according to the Battelle/BIO State Bioscience Initiatives 2010 report, which was released in May by the consulting firm Battelle and the Biotechnology Industry Organization.

Total private sector jobs in Wisconsin increased by 2.1% during the same period, compared with 3.5% nationally, the report says.

There are about 400 biotech companies in Wisconsin, Renk said. BioForward has 270 members, half of them companies and the other half service providers, financiers and others, he said.

Among the agricultural and energy companies that have joined the organization in the past year are General Mills Inc., Monsanto Co. and Virent Energy Systems Inc., Renk said.

BioForward has also added Kathy Collins to its staff. Collins, former technology development consultant and finance manager at the Wisconsin Department of Commerce, will bolster BioForward's efforts to work with early-stage entrepreneurs and help them develop collaborative partnerships earlier with bigger companies, Renk said.

Also during the past year, BioForward has formalized and strengthened its lobbying efforts and is working on a study of the economic impact of state biotech companies and a compensation survey, he said.

Interim Report of VA Governor's Technology Subcommittee

2010-08-12T08:21:00.002-04:00

Technology Subgroup Interim Report: After hearing presentations and reviewing materials, subgroup members determined that the Commonwealth has many programs in place to help small businesses, but it lacks significant programs and policies directed specifically at early stage high growth, tech-based companies. These are the type of 21st Century companies that will drive innovation and future economic growth, and sustainable jobs, in the Commonwealth.

Presentations from VEDP/SRI and material from the Commonwealth Innovation Index being conducted by the ten Regional Technology Councils and CIT identify unique and common industry clusters. For instance, energy and green technology industry clusters are being pursued in about all of the regions, while an industry like bioscience has greater emphasis and opportunities in Richmond and Charlottesville because of the early investments in those areas. At the same time, each region has a unique opportunity for many of the same reasons. For instance, the Lynchburg area, or Region 2000, is focused on the nuclear and wireless industries. Again, these studies are exploring many innovative opportunities within these clusters; however, they are also surfacing many gaps that are impeding these regions, and in turn, the Commonwealth, from taking full advantage of the greater benefits of a tech-based Innovation Economy.

The two primary gaps that need to be addressed are the access to capital, including investments and tax credits, and commercialization of research and technology, the two areas in which the subgroup is investing most of its time discussing. The aforementioned industry clusters, coupled with the economic downturn or transformations in some areas, are attracting energetic entrepreneurs of early stage, innovative, high growth companies. These are companies with unique intellectual properties on the early stage of the innovation continuum between an angel investment and more serious institutional, or Series, investments. Because of their unique nature, even in good economic conditions, these entrepreneurs have difficulty finding seed investments from the private and public sectors in Virginia. Today, the flat economy and frozen capital markets have only exacerbated the problem.

Vision Strategies:

Virginia must deploy existing and develop new technology industry and resources to position itself to create future technology-based economic development opportunities that spur sustainable job growth. We must promote the use of technology to help us solve many of the challenges we face as a Commonwealth, such as smart transportation solutions, a cleaner environment, more efficient health care delivery and increased educational opportunities for all citizens and the lasting effect on long-term economic stability.
Approach:
I. This subgroup will examine existing programs and initiatives currently offered within the Commonwealth, while analyzing potential changes and enhancements, using best practices from industry and other sources inside and outside the Commonwealth.
II. This subgroup will focus their evaluations and recommendations in those areas that foster innovation and technology-based economic development strategies.

Strategies:
I. Reaffirm financial support for sustainable or increased funding for CIT GAP Fund and tax credits for early stage companies.
II. R&D Strategy - look at ways to establish a statewide research and development strategic plan that clearly articulates the research direction, investment requirements, expected quantitative and/or qualitative returns and obstacles to resolve.
III. Assess which sectors of biotechnology and information technology Virginia is currently positioned to develop and consider strategies to maximize opportunity within those sectors.
IV. Accelerate Broadband Deployment: Update the Commonwealth Broadband mapping and
development plan to address the gaps in coverage in all localities.

V. One major area that can and will lead to job creation is the implementation of electronic medical records. This is a major initiative that should be considered to see how Virginia can position itself to take full advantage of updating these records.
VI. Consider how we can attract advanced technology early stage investors to Virginia.
VII. Examine how Virginia can implement a refundable R&D tax credit targeted at advanced technology companies, especially those that sponsor research with Virginia universities.
VIII. Increase the number of investors who apply for the Angel Investor Tax Credit through effective marketing of the program.
IX. Consider how increase biotechnology infrastructure including additional Bioscience "wet-lab" development.
X. Examine the Technology Business Commercialization Programs (Business Incubator Program).
XI. Streamline and simplify the technology transfer process at Virginia institutions.
XII. Provide outline for all-up Chief Executive marketing/public relations campaign to promote Virginia’s assets around job creation and viability for formation of new, organic businesses.
XIII. Modeling and Simulation: Examine ways to grow the modeling and simulation center at Old Dominion University, review opportunities and complementary research that will expand additional centers throughout the Commonwealth.

Initial Ideas and Recommendations:

Capital Formation

The Commonwealth has some limited programs with limited funding available to assist these entrepreneurs, but the subgroup agrees that it needs to do more. Specifically, members are reviewing:

• A refundable R&D tax credit targeted at advanced technology companies, especially those that sponsor research with Virginia universities. This tax credit is used in 38 states.
• An advanced technology jobs convertible loan fund for high-growth, advanced technology companies based in the Commonwealth.
• Increase the angel investor’s tax credit.
• Increased funding for the CIT GAP Funds, which has invested $3.8 million since 2004 to help 39 companies that then attracted another $51 million in private investments – a 13 to one leverage.
• A “VentureVirginia” program to increase venture capital investment that generates funds with tax credits to insurance companies that expedite payment of their state taxes due in 2015. The concept is being advanced in Maryland, Tennessee, and Texas, and is similar to the Small Business Investment Company Credit offered by Delegate Merricks in the 2010 Session.
• Programs to attract advanced technology early stage investors to Virginia by investing in a special life sciences, clean energy, medical devices, or other technology services venture capital fund or “fund of funds” that would be matched by private venture capital.
• A relocation fund to attract innovative, high growth technology companies from other states to Virginia.
• The need to audit and improve existing marketing programs to increase the number of applications for the Angel Investor Tax Credit.
R&D Strategy, Commercialization and Tech Transfer
In addition to addressing the capital formation “gap,” the subgroup is also focusing on the need to improve the Commonwealth’s Research and Development strategies and investments, as well as the commercialization of university research. In 2008 Virginia ranked 16th nationally in R&D expenditures. To improve this national rank, Virginia must execute on its recent decision to develop a long-term strategic R&D plan that is integrated with a capital investment plan that is not limited to just new facilities, as has been done in the past. For instance, as the Commonwealth’s Chief research Officer, the Secretary of Technology must establish a comprehensive strategy that includes
• The work being conducted by the Innovation and Entrepreneurship Investment Authority to establish a statewide research and development strategic plan.

• Streamlining university developed intellectual property licensing and commercialization to reduce inherent barriers to university/industry collaboration.

• Establishing an immediate emphasis on energy research, commercialization and new company formation.

• Coordinating existing transportation-sector initiatives and encourage development of alternative product and service offerings through research, commercialization and new company formation.

• Reprogramming and investing in the Commonwealth Research and Commercialization Fund (CRCF) to serve as an incentive for new and improved commercialization programs.

As this new approach to R&D planning generates innovation and marketable solutions, the Commonwealth will need to improve technology commercialization to enhance the transition of these discoveries from the research lab to the market place. Specifically, the subgroup is reviewing:
• The need to streamline and simplify the technology transfer process at Virginia institutions by creating incentives that reward policies and programs that simplify contractual and financial negotiations while providing reasonable remuneration for researchers and value based pricing for industry.
• A Virginia version of “San Diego CONNECT” to link entrepreneurs, capital, talent and technologies available for commercialization in the Commonwealth.
• A strong focus on research and investments in alternative energies and green technologies, and the expansion of modeling and simulation activities across the Commonwealth.
Wetlabs and Incubators
Another primary focus of the subgroup is the expansion of wetlabs and incubators has long been supported by previous state commissions and policy groups to enhance Virginia’s competitiveness in life sciences. It recognizes the unique profile and nature of this industry, its specialized facility needs and reality that without state participation to mitigate risk, Virginia will be unable to create the product (i.e., commercial facilities) necessary for creating viable life science industry clusters. Expanding wetlabs would allow Virginia to attract companies by having product “in place” rather than just showing prospects raw land which will add 12-15 months to the occupancy timeline. It also allows Virginia to compete with other states implementing various types of loan and lease guarantee or grant programs for biotechnology facilities.
The subgroup is also reviewing the idea of a comprehensive program to create a network of “knowledge-based” industry incubators and commercialization centers around the Commonwealth – both university-affiliated and independent. Oftentimes, knowledge-based businesses are often founded by scientists, engineers and other technology-oriented individuals who may have had little or no experience in starting a business or in dealing with business challenges. This is frequently in contrast with companies started out of general business incubators which often are founded by individuals who have either started businesses before, or who have been in the business world for some time. While the recommendations and principles advocated apply to both types of incubator programs designed to foster high technology business formation and growth in the Commonwealth, subgroup members strongly recommend targeting any new funds to those incubators with sound business plans that demonstrate a strong return on investment.
Broadband
To get to the Innovation Economy, broadband access is crucial. While there continues to be a focus on Southside and Southwest Virginia, the Virginia Tobacco has invested more than $100 million for broadband infrastructure build out in those areas. In addition, recent grants from the America Recovery and Reinvestment Act (Stimulus Funding) will expand broadband infrastructure in Allegheny, Page and Nelson Counties, Blacksburg and Bedford, Buggs Island Telephone, and the Mid-Atlantic Broadband Cooperative in Southside Virginia. Currently, CIT is investing $1.8 million of stimulus funding in broadband data collection and mapping activities and $500,000 for broadband planning activities over a two-year period in Virginia, bringing the total grant award to approximately $2.3 million. CIT is the designated entity for the state of Virginia. Twenty-six proposals have been submitted to the National Telecommunications and Information Administration for Round II funding. The subgroup will continue to work with Karen Jackson, Deputy Secretary of Technology, to determine additional recommended actions.
Health IT
The subgroup fully supports recommendations by the McDonnell Administration transition to invest more in health information technology. According to transition documents, a first step is to begin to digitize all medical records. As a start, the Governor should require that all state employees’ health records be digitized. This would send a signal to the private sector that Virginia is ready to engage in public-private partnerships to expand the use of health IT, lowering the cost of healthcare delivery while creating economic development opportunities and jobs.
Already, an initiative is underway to expand the use of electronic health records (EHR). Earlier this year, the Virginia Healthcare Quality Center and CIT won a $12 million co-operative agreement from the U.S. Department of Health and Human Services and its Office of the National Coordinator for Health IT to implement the expansion of electronic health records (EHR) for nearly 2300 priority primary care providers in Virginia by February 6, 2012. These providers are defined as urban and rural practices with less than 10 healthcare providers. Currently in Virginia these practices have less than a 10% adoption of EHR. This program will help improve healthcare and reduce costs in Virginia, while creating Health IT jobs across the State.

On June 15, Virginia HIT, the federally designated Regional Extension Center for Virginia, in partnership with the Center for Innovative Technology, announced its preferred partners to work with primary care physicians across the Commonwealth (including pediatricians and obstetricians/gynecologists). These three partners — Allscripts, athenahealth, and MDLand — will provide a Software as a Service (SaaS) solution to approximately 2,300 physicians to meet EHR certification requirements for Meaningful Use. Additional services will include education, technical, and implementation resources.
As important as this initiative is, the subgroup strongly believes that the Commonwealth should pursue so many of the other opportunities inherent in a strategic health IT program. Given the cluster of many large and small businesses, as well as non-profit organizations, that are engaged in health IT, coupled with their proximity to and strong contractual relationships with federal agencies, Virginia is well positioned to be a leader in this field. To further explore this area, members will consult with the Secretary of Health Services, VEDP and others on additional health IT and telemedicine initiatives and opportunities, such as personalized medicine, point-of-care diagnostics, computational technologies, data interchange and other innovations that are revolutionizing the healthcare industry.
Modeling and Simulation
The subgroup recommends the continued development of modeling and simulation technologies in the Commonwealth. Since its founding in 1994, the industry has seen significant growth take place, becoming a $640 million industry employing over 5,000 people with an average salary of $83,000 each year. The subgroup advocates a number of action items, such as examining opportunities for pilot and/or demonstration projects using modeling and simulation with Virginia state government agencies as well as working to attract a federal Modeling and Simulation Lab in Virginia.
Marketing
Although the subgroup is advocating these additional measures, members agree that much more needs to be done to market existing tools to entrepreneurs and investors. Members will recommend suggestions on ways that the Governor’s office can celebrate entrepreneurs and innovation, and also initiate an audit of existing materials and tools to enhance their efficacy.
At its last meeting on July 9, the subgroup heard reports from officials from VEDP and the Secretary of Technology’s office on programs and initiatives covering tech-based economic development and broadband.

Members also reported on areas in which they were charged with developing ideas, again, primarily capital formation; R&D and commercialization; wetlabs and incubators; health IT and broadband; and marketing. The initial ideas and recommendations are mentioned above, and the group agreed to further refine ideas in the coming weeks.

Next Steps:

In addition to honing overall ideas and recommendations, the subgroup agreed that more information is needed in the areas of Health IT and broadband access. In addition, the subgroup began discussing the use of local technology zones that use tax breaks and other incentives to attract innovative high growth technology companies. Qualified businesses locating or expanding operations in a zone may receive local permit and user fee waivers, local tax incentives, special zoning treatment or exemption from ordinances. Once a local technology zone has been established, incentives may be provided for up to 10 years. Each locality designs and administers its own program.

A preliminary review shows that technology zones have been adopted in the counties of Arlington, Bedford, Caroline, Culpeper, Frederick, Halifax, Henry, Roanoke, Rockingham, Russell, Smyth, Spotsylvania, Stafford and Warren; the cities of Buena Vista, Charlottesville, Falls Church, Franklin, Fredericksburg, Harrisonburg, Lynchburg, Manassas, Newport News, Roanoke, Suffolk and Winchester; and the towns of Front Royal in Warren County, Kilmarnock in Lancaster County and Marion in Smyth County. Members and staff will conduct additional research into the use of the technology zones and how they can be linked to other federal and state programs, and consult with staff from the Secretaries of Health and Technology to determine what needs it can best address in the areas of health IT and broadband. These issues will be the primary points of discussion at the subgroup’s next meeting on August 11.

The four members of the subgroup are:

• Anne Gavin - State Government Affairs Regional Manager, Microsoft
• Mark Herzog - Executive Director, Virginia Biotechnology Association
• Caren Merrick - Co-founder, Webmethods
• Bob Skunda - President and CEO, Virginia Biotechnology Research Park

Since the initial meeting of the Commission, members have met twice – June 2 and July 9 in Fredericksburg - to review transition and other documents that outlined statewide technology-based economic development programs and gaps. They also heard more detailed presentations from VEDP, CIT, and the office of the Secretary of Technology on the history and status of broadband activities across the Commonwealth. The subgroup identified several areas on which to focus that will have the greatest impact on tech-based economic growth. Members are very cognizant of the economic and budgetary challenges facing the Commonwealth, and therefore, they are reviewing existing programs that need greater coordination, marketing, and enhancement. The Subgroup is also reviewing successful tech-based economic development programs from other states that could be adopted for use in the Commonwealth.

Subgroup members also recognize the value of reaching out to stakeholders for comments, and have identified the following organizations:

The Virginia Technology Alliance and the Ten Regional Technology Councils; Virginia Biotechnology Association ; Association of University Technology Transfer Managers (AUTM); Virginia Business Incubation Association; Virginia Active Angel Investor Network; Mid-Atlantic Venture Association; National Venture Capital Association

VCU's MDx Lab May Debut Next-Gen Sequencing in One Year

2010-07-29T09:18:00.001-04:00

The molecular diagnostics lab at Virginia Commonwealth University is about a year away from using a next-gen sequencing platform on clinical samples, according to its director.

Andrea Ferreira-Gonzalez, who is also chair of the school's Division of Molecular Diagnostics, Department of Pathology, said the lab is "working with" Illumina, and is testing certain clinical applications of the Roche 454 FLX platform installed at VCU's DNA Core Facilities.

Speaking after her presentation at this year's AACC annual meeting, held here this week, she said her lab is researching Illumina's Genome Analyzer for targeted re-sequencing applications by studying 50 genes linked to cardiomyopathy.

She also said the lab is using Roche 454's pyrosequencing-based instrument to genotype infectious diseases, noting she is keen on the platform "because you can sequence longer fragments" of DNA.

Saying her lab is "still working on issues like quality control," Ferreira-Gonzalez said she thinks it will begin running patient samples on the machines in one year — "with luck."

She noted that "we can use next-generation sequencers to perform whole-genome scans in the laboratory today, but we have nowhere to store" the data such machines are notorious for yielding.

The lab, based in VCU's Richmond, Va., campus, currently uses a pair of capillary electrophoresis platforms — an ABI 310 and 3100 — which she said can be used to confirm mutations detected by other methods and are the "gold standard" for mutation detection and histocompatibility typing (though she did quip that the 310 "belongs in a museum").

"DNA sequencing is undergoing a revolution … [but the 310 and 3100] are bread-and-butter technologies that we use every day," she said during her presentation.

Ferreira-Gonzalez also said she predicts that third-generation sequencers will make their way into clinical labs in three to five years.

"The technology is moving very fast, and I think it's going to take some time for us to catch up," she said.

Greg Tsongalis, director of the molecular pathology lab at Dartmouth College's Hitchcock Medical Center, agreed. Tsongalis, who presented at the same session, told me after Ferreira-Gonzalez's talk that his own lab isn't ready to invest in a second-generation sequencer because technologies continue to evolve.

"You don't want to spend that kind of money if something better may be around the corner," he said.

By Kirell Lakhman
Genome Web

Funds Hard To Come By On Proposed Tech Tax Break

2010-07-27T11:59:00.003-04:00

Funds hard to come by on proposed tech tax break
By Bill Flook, Washington Business Journal

Rep. Chris Van Hollen, D-Md., and four other members of Congress are proposing to carve out a new tax break for investing in government-funded technology startups — the latest in a series of local, state and federal incentives meant to steer private money toward technology and biotechnology ventures.

Van Hollen’s bill, introduced July 15, would provide a 25 percent credit for an equity investment in a company that has already qualified for a federal research and development grant program for small businesses. Under the legislation, the credit’s value would be limited to half the size of the Small Business Innovation Research award, and capped nationally at $500 million.

“Clearly there is a big appetite for this around the country,” Van Hollen said. “I think it’s going to be very well received because it’s targeted at areas that need a boost right now and can add significant value.”

But the bill — like much of the new legislation that spends federal tax dollars — could run afoul of a growing aversion to Congress for new spending that’s not balanced by cuts. That fear of adding to the deficit has played out in several high-profile struggles on the Hill, most recently over extending the stimulus package’s jobless benefits. And finding those needed reductions or revenue is tougher after the passage of the health reform bill, which gobbled up what were considered to be most readily available offsets.

“We will identify an offset,” Van Hollen said.

Reps. Dutch Ruppersberger, D-Md., Allyson Schwartz, D-Pa., Betty McCollum, D-Minn., and Jared Polis, D-Colo., joined Van Hollen in introducing the bill — dubbed the Innovative Technologies Investment Incentive Act. It is pending in the House Ways and Means Committee, on which Van Hollen sits.

Linking the tax break to the SBIR award is smart, said Don Rainey, a general partner with Vienna-based venture capital firm Grotech Ventures, “because it takes all those federal dollars that will be spent anyway, and causes more private dollars to complement that investment.”

“Startups tend to create more startups, particularly successful ones,” he said. “People go into a startup, see its success, learn what you need to do and they start companies.”

The legislation is modeled partly off Maryland’s highly sought-after biotech tax credit, which state lawmakers increased to $8 million this year. Montgomery County also put in place an analogous local tax credit based on the state program, and — like Van Hollen — remains unsure of how to pay for it. Gov. Martin O’Malley wants to raise $100 million in venture capital funds for biotechnology by offering deferred tax credits to insurance companies.

In Virginia, lawmakers this year passed a bundle of tech-friendly tax breaks. The largest, a new long-term capital gains tax exclusion, will mean that investors who back tech startups within the next three years will be exempt from paying state capital gains once that company is sold or goes public.

The venture capital world is slogging through a time of uncertainty, with fewer dollars flowing into venture capital funds, but with more, and bigger, deals taking place.

Nationally, venture capitalists invested $6.5 billion in the second quarter of 2010, up from $4.2 billion in the same period the year before, according to a quarterly report from PricewaterhouseCoopers LLP. Clean tech, biotech, information technology and software investments all showed signs of recovery. Still, venture capital funds raised a dismal $1.9 billion in the second quarter, the lowest level since the third quarter of 2003.

BIO Podcast with VaBIO Director Mark Herzog

2010-07-21T14:56:00.002-04:00

Podcast with Mark Herzog, Executive Director of Virginia Biotechnology Association

BIOtech-Now recently spoke with Mark Herzog of VaBIO, check out the podcast here. Additionally, Herzog shared the latest on biotech in Virginia in the Q&A below.

The Virginia Biotechnology Association (VaBIO) is the premier statewide non-profit organization that promotes the scientific and economic impact of the life sciences industry in the Commonwealth of Virginia. More than 300 biotechnology, equipment, pharmaceutical and medical device companies are based in Virginia, mainly clustered around universities in Blacksburg, Charlottesville, Richmond, Norfolk and Northern Virginia. VaBIO will be co-hosting the 2011 BIO International Convention in Washington, DC on June 27-30.

What areas of bioscience are currently most active within your state?

Herzog: The greatest concentration of companies, approximately 34%, is located in Northern Virginia. The greater Richmond region is second with 30%, the Charlottesville area with 15%, Western Virginia with 14% and the balance located in Hampton Roads. Based upon surveys conducted of Virginia’s biotech companies, 47% are focused on therapeutic products and 14% on diagnostics. The focus of the remaining companies is divided among areas of concentration such as biodefense, bioinformatics and agricultural biosciences.

Are there currently any state-level legislative barriers to economic development you are working to overcome?

Herzog: Access to capital and wet-lab space for commercialization activities. Thanks to bipartisan support from our new Governor Bob McDonnell, the Senate Democrats and the House Republicans, Virginia took bold steps in 2010, despite a massive budget deficit. The Governor will be signing new legislation that will exclude from capital gains taxes all income from investments in biotech and device firms in Virginia. We also were successful in winning $3 million to incentivize the development of commercial wet-lab space. Funding was also made available to increase the Angel Investor tax credit and recapitalize the “Gap Fund” that invests taxpayer dollars in technology companies. The total bioscience package is nearly $30 million for the biennium.

Is there another state or specific initiative that you look to as a model for your efforts?

Herzog: North Carolina has been a great role model. They built a broad consensus before attacking the issues and that paid off for them. We in Virginia have been trying to follow that approach—start with the foundation of bipartisan legislative support, build on small successes and then use the momentum to go after the big initiatives.

How is your organization engaging in social media to educate and engage audiences?

Herzog: Yes, we have always been able to connect with our CEOs but seemed to miss the opportunity to connect with individuals at all levels in our industry. Social media has provided a great tool to connect with everyone from the bench to the C-Level Suite.

When is your annual meeting? Anything new or exciting you’d like to promote?

Herzog: We will be holding our 6th annual joint conference with Maryland at the 2010 Mid-Atlantic Bio Conference, October 27-29 at the North Bethesda Marriott. We are very excited to be working on the final details to have the opening activities on campus at the National Institutes of Health (NIH). It will be a fantastic new offering to our attendees.

PA Borrows $30M for Vaccine Center

2010-07-08T06:24:00.002-04:00

$600 million allocated for Pa. economic projects
Wednesday, July 07, 2010
By Tom Barnes, Post-Gazette Harrisburg Bureau

HARRISBURG -- An $830 million vaccine-producing "biodefense center," to be built somewhere in Allegheny County, is getting a $30 million boost from a statewide capital construction bill that Gov. Ed Rendell plans to sign today in Pittsburgh.

Legislation for an additional $600 million in borrowing for economic development projects, known as the Redevelopment Assistance Capital Program, was enacted last week as part of the new state budget for fiscal 2010-11. The bill contains $30 million to help the University of Pittsburgh Medical Center compete with other states to create a vaccine-producing center, which the bill calls a "state-of-the-art biologics manufacturing facility."

Mr. Rendell is coming to the Connelley School today to sign the economic development bill. All of the RACP projects are legitimate uses of state funds and will be matched with private money, he said Tuesday as he signed the new $28 billion state budget for 2010-11.

Rendell spokesman Gary Tuma said the federal biodefense contract involves "development of an on-demand flu vaccine."

"We will be competing with other states," he said. "It will mean quite a few jobs for the region if it comes" to Allegheny County. One possible site is the old Pittsburgh airport terminal.

"It was important for the state to show support for the project and put in some state money," he added.

The $30 million is just a small start for the proposed UPMC biodefense center, which would need $580 million in federal funds plus $250 million from UPMC itself. It would be overseen by the federal departments of Defense and Health and Human Services.

Last summer UPMC made a pitch to a congressional panel to create such a large-scale vaccine production center. Federal officials think the development of such vaccines is a necessary step in defending America against bioweapons attacks by terrorists. The proposed center would have eight vaccine-producing units, with staff and resources to develop vaccines to counter various threats from hazardous bioweapons.

Mr. Specter and U.S. Rep. Jason Altmire said UPMC would have a "unique advantage," since it's one of the nation's largest medical centers and is close to the University of Pittsburgh, which has a Center for Vaccine Research. The center would likely create 1,000 well-paid, high-tech jobs and another 6,000 spinoff jobs.

A number of Allegheny County Democratic legislators are listed as sponsors for the biologics facility, including state Sens. Jim Ferlo, Wayne Fontana and Jay Costa, plus Reps. Jake Wheatley, Dom Costa, Chelsa Wagner, Dan Frankel, Joe Preston, Paul Costa and Harry Readshaw.

"All the projects in the RACP bill that governor will sign today are important and some will create hundreds of high-paying jobs," said Jay Costa. "While the state's $30 million investment pales in comparison to the federal and private investment, these state capital dollars will leverage three to four times of the investment and create new jobs."

Read more: http://www.post-gazette.com/pg/10188/1070851-454.stm#ixzz0t5LX1opu

Pfizer might get incentives to keep research center in Richmond

2010-06-29T22:39:00.000-04:00

Pfizer might get incentives to keep research center in Richmond
By Staff Reports | Times-Dispatch
Published: June 29, 2010

City officials are planning to offer incentives to Pfizer Inc. for keeping its research and development center with more than 300 jobs in Richmond.

Executives with Pfizer and city officials reiterated the company's decision to maintain the facility in Richmond at a news conference this afternoon.

Peter Chapman, Richmond's deputy chief administrative officer and interim director of economic and community development, said city officials will present a package of incentives to City Council for approval within a few weeks. He declined to provide financial details but described the incentives as "modest and measured."

He said Pfizer also would preserve a certain number of jobs as part of the deal.

Pfizer announced in May that it would end production at its Henrico County manufacturing plant in two to three years, eliminating about 550 local jobs.

Production of over-the-counter health products such as Chap Stick, Dimetapp, Robitussin, Anbesol and Preparation H will be moved elsewhere, but the company said it planned to keep its consumer research center on Sherwood Avenue in Richmond.

Bode Technology Launches RFID System to Track DNA Evidence

2010-06-11T15:49:00.003-04:00

Bode Technology, one of the world's largest DNA analysis firms, is piloting an RFID system it developed to manage DNA evidence as it passes through a supply chain, that includes storage and analysis in the laboratory. If the pilot—held at the company's Virginia lab—goes well, Bode Technology plans to deploy the system for 50,000 or more pieces of evidence annually as they move through the company's facility. To date, says Randy Nagy, Bode's sales and marketing VP, the system is reducing the time spent manually recording information about the specimens and their movement through the site, and provides a better, more accurate record of where each specimen has been, and who has been handling it.

The company is marketing the system, known as Bode-RFID, to law-enforcement agencies, for use in tracking physical evidence such as weapons, as well as DNA evidence. This, Nagy says, is being done in order to create and maintain an electronic record of a sample's movement from a crime scene through testing and storage, with data that could be used in a courtroom if the courts, for example, required proof of where the evidence had been, and when. The system is designed to be flexible (it can be set up to track evidence at specific locations chosen by a user, such as at a crime scene or storage area, or in off-site labs). What's more, it can act as a module to the existing Laboratory Information Management (LIM) system Bode sells, which stores and manages data regarding evidence for municipal, state and federal agencies.

When evidence is gathered, it is typically placed in a paper bag, box or DNA kit, and a unique reference number is assigned to that specimen, either printed in the form of a bar code on an adhesive label attached to the bag, or manually written on the bag using a marker. Approximately 40 percent of law-enforcement agencies currently employ bar-coded labels, while the rest utilize the manual, handwritten method. Often, a law-enforcement official creates a paper manifest with the same reference number, along with details related to that specimen. That manifest then accompanies the specimen when it is shipped to a forensics company, such as Bode, or to an in-house laboratory. The law-enforcement official at the crime scene—and, afterward, the agency or lab staff members handling the evidence—typically put their initials on the paperwork to provide a trail documenting which personnel worked with those samples. Multiple pieces of evidence are often recorded on a manifest, in order to link specimens from the same crime scene, such as several articles of blood-stained clothing. This system is time-consuming, however, and in the case of handwritten reference numbers, there is always the risk that an agency employee creating the manifest could transpose the numbers or otherwise make mistakes.

Another shortcoming with the manual system, according to Andrew Singer, Bode Technology's senior product manager, is that workers handling the sample may fail to add their initials to the evidence or paper manifest. Consequently, it is not always clear who has been handling a particular sample. In other cases, a piece of evidence can go unnoticed—in the trunk of a car, for instance—but if an RFID system were used at the time that evidence was collected, that type of error would be documented electronically, because a record would be stored in the back-end system indicating the date and time a specimen was gathered, along with any subsequent procedures that may have occurred, including receipt into storage or movement to a lab for testing.

Bode Technology watched RFID technology prices drop, and the demand for such a solution increase, until last year, when it determined that an RFID solution would be saleable. At that point, the firm developed Bode-RFID, which includes the company's existing LIM system, as well as its RFID-based software (developed in partnership with RFID Global Solution), to interpret RFID numbers as they are read, along with the location and time of read events—all of which is then stored in the LIM system. Bode-RFID will also provide hardware such as tags, readers and printers, according to customers' specific needs.

Bode Technology decided to first test the system at its own site in Virginia, in order to gather time-saving metrics. Last week, employees began tagging and tracking all new evidence coming from a handful of customers—government agencies that agreed to have their samples tagged and tracked while at the company's facility. Initially, only Bode Technology will use the RFID read data for its own purposes—to automate the tracking of each specimen's arrival, testing and storage, as well as who handled that evidence at any given time. However, that information could also be requested from the agencies in the event, for instance, that it is required for a trial.

When specimens arrive, they contain a printed reference number or a bar-coded ID number, along with information about the specimens printed as text on the paper bag or box in which they are contained. Bode's staff have several options for storing that data in the back-end system. In some cases, an agency sends an electronic manifest to the company prior to the samples' arrival. When that occurs, the electronic manifest provides Bode Technology with details regarding the sample, including the case number, a list of other pieces of evidence linked to that case, the agency that had sent it, and the specific testing required. Workers can then open the electronic manifest on the LIM system and enter information about the carrier (such as Federal Express) and the time and date of its arrival, or scan the carrier's bar-coded label on the item's packaging using a handheld Motorola MC9090 to create a record of that item being received.

In either case, an Avery Dennison ultrahigh-frequency (UHF) Gen 2 RFID tag is then printed and encoded with a unique ID number on a Zebra Technology printer, and attached to the paper envelope or box in which the specimen is stored, thereby linking the RFID number with the sample it is attached to. If no electronic manifest is sent to Bode Technology before the sample's arrival, the company's staff inputs all of the information printed on the packaging or paper manifest accompanying the specimen, again encodes an RFID label and affixes it to the specimen's envelope or box. If the agency had used an RFID-enabled handheld device at the crime scene, attaching an RFID tag to a piece of evidence as it was gathered, and then reading the tag at the scene, Bode's employees could simply read that tag when the specimen arrives at the facility. Bode-RFID software enables a user to read the RFID tag, view an electronic manifest of the evidence, and then follow instructions in a drop-down box to indicate the event that is occurring, such as receiving the specimen from the carrier.

The sample is then moved into the evidence room, where it is stored while not being tested. As it passes through the doorway into the evidence room, it passes through a portal built by Jamison Door and containing an Impinj RFID reader. The ID number is transmitted to the LIMS on Bode's back-end server via a cabled connection, indicating it has arrived at the evidence room. LIMS can then determine the direction in which the tag is moving, based on its location and the data related to its last read. All information is automatically exchanged between the Bode-RFID software and the LIMS, Nagy says.

In addition, each employee wears an RFID-enabled badge, the ID number of which is also read, thereby indicating which employee brought a particular item into or out of the evidence room.

When an item is checked out by a DNA analyst, it again passes through the evidence room's portal and is then taken to the laboratory, where a desktop or handheld reader is used by the staff each time the evidence changes hands. If there are multiple bags of evidence connected with a specific case number, information about the additional evidence related to a specific item is also stored in the LIMS. All of these pieces of evidence are tied together in both the RFID software and the LIMS.

If a DNA analyst goes home for the day before finishing with a particular piece of evidence, he or she can take it to the temporary evidence room within the laboratory, where another RFID reader portal captures the ID numbers of the specimen's tag and the employee's badge, indicating when it was moved into the storage area, and by whom. This security measure, Nagy explained, is intended to track which individuals had the evidence when it came and went, as well as track which personnel had access to specimens stored in the room while it was there. The sample can then be removed again the next morning for further testing.

If Bode's staff require a specific piece of evidence, they can utilize the Motorola handheld reader that they carry into an evidence room or through the lab, and receive an audible alert when it comes within range of the ID number being sought, with the alerts getting louder and more frequent as the reader approaches the tag in question.

Prior to using the RFID system, Bode Technology's staff would manually input data in order to create a record of each item's arrival. The company maintained a written record of what occurred for such events as a lab worker analyzing the specimen, or an item being placed in the evidence room. Seeking specimens was more time-consuming, Nagy says, since they had to be searched for visually, without the aid of the handheld reader. "RFID will save a few seconds in completing each transfer," he states, "and records will be more legible, including the records provided to our customers, which will look more professional."

The electronic data stored for each specimen as it moves through Bode Technology's facility, Nagy says, "will better show who had access to all evidence during the time that it was at Bode. The expectation is that this will help improve the already high level of trust our customers have in Bode, and how we handle their evidence."

To date, Bode has incorporated the portal system only in its primary evidence room, as well as in the room within its lab used for temporary evidence storage. However, Singer says, other forensics companies or agencies could have the technology incorporated throughout their facilities, to track movement through the buildings and between departments.

Eventually, Nagy says, as the time-savings and improved accuracy are proven, Bode Technology hopes to begin tagging all evidence upon arrival, and then track each specimen as it moves through the evidence rooms and laboratory.

Although there are currently no agencies using this system, Nagy notes, Bode Technology is in discussions with many agencies about the prospect of doing so. This fall, as funding is granted to many agencies from the federal government to increase efficiency, Nagy hopes Bode will begin installing the solution with some of the company's customers. The system is commercially available now, he says, and can be used to track not only evidence, but also case files related to that evidence.

By Claire Swedberg
RFiD Journal

Biologists Tackle Cells' Identity Crisis

2010-06-07T09:52:00.002-04:00

Ever since biologists learned how to grow human cells in culture half a century ago, the cells have been plagued by a problem of identity: many commonly used cell lines are not actually what researchers think they are.

Cell-line misidentification has led to mistakes in the literature, misguided research based on those results and millions wasted in grant money. Last year, Nature described the situation as a scandal.

But a universal system for determining the identity of cell lines may now be in view. Next month, a working group led by the American Type Culture Collection (ATCC), a nonprofit biological repository based in Manassas, Virginia, that stores 3,600 cell lines from more than 150 species, plans to unveil standardized protocols for verifying the identity of cultured cells using DNA fingerprinting. Labs worldwide — including repositories such as the ATCC itself — would use the protocols to determine whether a breast-cancer line, for instance, did come from breast tissue. The group also plans to create a public database, which the National Center for Biotechnology Information in Bethesda, Maryland, has agreed to host, to store DNA profiles of validated lines, allowing researchers to compare their own cell cultures with the ATCC's reference lines.

"I really think it's fantastic progress," says Rolf König, director of the Tissue Culture Core Facility at the University of Texas Medical Branch in Galveston.

Misidentification can happen when faster-growing cells contaminate cultures of slower-growing cells in the same lab, or when researchers simply mislabel a specimen. One particularly robust cell line called HeLa, the first human cell line grown in the lab, has contaminated dozens of other lines without researchers' knowledge2, and there are many other examples where melanoma cells and ovarian cells, for example, have been mistaken for breast cells. In this month's Nature Reviews Cancer3, the ATCC consortium notes that one group has published around 20 papers since 1988 in which they incorrectly use a line called Int-407 as a model of normal intestinal cells.

The working group, composed of representatives from academia, government and industry, as well as from other cell repositories, advocates verifying cells' identities by comparing their DNA in regions where short stretches of three to five bases are repeated. Closely related cells are likely to have the same number of repeats; comparing these snippets at several different positions in the DNA sequence provides an overall estimate of relatedness.

Forensics applications, such as paternity testing and identifying crime victims, already use the technique. But cell lines often come from tumour tissue, in which DNA mutates at a higher rate than normal, making a 100% match between cells unlikely. Instead, the consortium suggests, cells that match at 75% or above can be considered to be the same. The group has now developed and tested a standardized procedure for extracting DNA from cells, doing the fingerprinting and interpreting the results.“Without policing, many investigators may not be motivated to do the necessary tests.”

Many researchers already use DNA fingerprinting to test their cell lines, notes Steve Oglesbee, director of the tissue-culture facility at the Lineberger Comprehensive Cancer Center of the University of North Carolina in Chapel Hill. The ATCC and other repositories have already established fingerprints for some of the most commonly used lines. "We're recommending that investigators authenticate from the beginning, and do it at least at the very end, and if they feel the need even during the work process," he says. Having a universally accepted approach will allow different facilities to compare their cell lines with each other, he adds.

Fingerprinting has its limits, cautions Michael Johnson, a cancer researcher at Georgetown University in Washington DC. "Just because a cell fingerprints out as the same [as another cell] doesn't mean they will behave the same," he says, noting that a cell's properties can also be affected by the way it has been grown, the number of times it has been cultured anew and small genetic changes that wouldn't show up in a fingerprint test. One classic example, he notes, is an immortalized breast cell line called MCF10A, which can form organized hollow structures similar to those found in mammary tissue; MCF10A cells currently distributed by ATCC do not do this nearly as efficiently.

Cell Solution

He worries that, useful though it would be, a database such as the one ATCC proposes "in some sense creates a false sense of security" about the "official version" of a cell line. Being able to keep track of a cell line's lineage — where it was derived — could be as important as ascertaining its DNA fingerprint, he adds.

Others note that researchers will probably need an extra push to embrace the ATCC protocols. About half a dozen journals, including Wiley's International Journal of Cancer and journals published by the American Association for Cancer Research, have begun demanding that researchers authenticate their cell lines before they publish their work. And Nature has endorsed efforts to make verification easier and cheaper for researchers, pledging to require it once funders acknowledge the need and provide the necessary financial support1. "Without the policing by journal editors and granting agencies," says Gertrude Buehring, a virologist at the University of California, Berkeley, "many investigators may not be motivated to do the necessary tests to authenticate the cell lines used for their research."

Alla Katsnelson
Nature News

RichTech Honors the Area’s Greatest Tech Firms and Folks

2010-05-13T11:21:00.002-04:00

RichTech held its 15th Annual Awards Gala this evening, honoring the best local companies and leaders that drive Central Virginia’s technology-based economy.

“During the last year we’ve watched the economy turn brighter, and so too have Central Virginia’s technology companies. Businesses are stronger and more efficient, good talent is getting hired, and clients locally and nationally are being well-served by the slick tech companies that call the Richmond area home,” said Chip Farmer, Executive Director of RichTech.

“Altogether, the companies that make up RichTech have come together and strengthened our organization as one that stimulates and connects innovative, creative and technical people.”
During the past year, RichTech – formerly the Greater Richmond Technology Council – has revamped its brand, logo and website. It has also updated its membership structure to allow more individuals to join, and reached out to peer groups across the region to promote the cause of supporting innovation and creativity throughout the local technology community.

More than 500 people attended the Technology Stars gala, held at the Greater Richmond Convention Center. The awards are structured in a way that recognize individual accomplishments, corporate wins, non-profit success stories, innovators in their field, and small business triumphs.

“This is RichTech’s 15th year of celebrating innovation, perseverance, and investment in the future of our region and beyond,” said Margaret E. “Lyn” McDermid, Senior Vice President of Information Technology and Chief Information Officer at Dominion and RichTech Chair. “It has been exciting and encouraging to watch our companies grow and strengthen. Tonight we honor the value of technology in our community through these very deserving nominees and award winners.”

The award winners are:

IBM Community Catalyst Award: Mark Herzog This is Herzog’s 10th year as executive director of the Virginia Biotechnology Association. Through his work at VaBIO and the organizations that support it, new technology discoveries are being made in Virginia in medicine and healthcare, the environment and energy. The award recognizes an individual or organization that has made a significant impact on the growth of technology in this region, and/or the advancement of Greater Richmond as a center for technology innovation.

Computer Resource Team Educator Award: Richmond Area Program for Minorities in Engineering (Virginia State University & Virginia Commonwealth University) This pre-college program prepares "new-century engineers" to to gain experiences and target a conceptual understanding of science and technology topics in order to develop workforce skills. The award recognizes an educator or school program that provides exceptional technology leadership and encourages students to pursue higher education or training in engineering, math, and the sciences.

Cherry Bekaert & Holland Emerging Company Award: TBL Networks TBL Networks designs, implements, and supports Cisco IT systems as well as data center infrastructure. The company also provides ongoing troubleshooting, support, and maintenance. The award recognizes a local technology company that has demonstrated recent growth in revenues and/or employees - a company whose recognized accomplishments and prospects demonstrates the ability to achieve commercial success.

The PLANIT Technology Group Technology Builder Award: Altria Client Services Information Systems (IS) team ALCS Information Services provides the full range of IT services and solutions as an internal shared services organization. The group was ranked by Computerworld in its “100 Best Places to Work in IT” survey, ranking No. 1 in Virginia and No. 26 nationwide in 2009. The award recognizes an institution or organization that delivers technology solutions and/or services to internal or external clients that drive business or operational efficiencies.

The VACO Technology Innovation: Financial & Professional Services Award: Capital One Capital One is a diversified bank that offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients. A Fortune 500 company, Capital One has approximately 44 million customer accounts and is one of the nation's most recognized brands. The award recognizes a company or organization whose use of new or existing technology in finance and professional services vertical creates or significantly enhances new processes, methodologies and/or services for their or others benefit.

The Cisco Systems & Packet360 Technology Innovation: Healthcare Award: MedVirginiaMedVirginia has deployed cutting-edge health information exchange technology in a national manner and is garnering headlines across the U.S. for its ability to expedite the Social Security disability determination process. The award recognizes a company or organization whose use of new or existing technology in the healthcare vertical creates or significantly enhances new processes, methodologies and/or services for their or others benefit.

The CSC Leasing Technology Innovation: Manufacturing, Distribution and Retail Award: Owens & MinorOwens & Minor, Inc., is a leading distributor of national name-brand medical and surgical supplies. The company serves its 4,500 healthcare provider customers from 55 distribution centers located strategically throughout the U.S. Owens & Minor's customers include acute-care hospitals, group-purchasing organizations, integrated healthcare systems and the federal government. The award recognizes a company or organization whose use of new or existing technology in manufacturing, distribution and/or retail creates or significantly enhances new processes, methodologies and/or services for their or others benefit.

2010 RichTech Chairman’s Award sponsored by Altria: Scott McKay, CIO and Senior Vice President, Genworth FinancialThrough his steadfast involvement with not only RichTech but VirginiaFIRST, the Science Museum of Virginia, and the Virginia Technology Intern Program, McKay continues to leave a long-term positive impact throughout our community. By working on all of these programs, he engages young people at every stage—from their years in early education through to their years in a university, inspiring them to pursue high-tech careers. The Chairman’s Award is presented annually to an individual or organization that has made a significant impact on the growth of technology in this region, and/or the advancement of Greater Richmond as a center for technology innovation. The award recognizes results that are the product of great leadership, great execution, great process implementation, great innovative ideas, and great talent.

RichTech

McDonnell puts jobs commission to work

2010-05-06T10:49:00.001-04:00

Virginia can't rest on its pro-business reputation and must be more aggressive in marketing its assets and competing for jobs, state leaders said Wednesday.

"This is a top priority for what faces our people right now," Gov. Bob McDonnell told members of his Economic Development and Jobs Creation Commission.

McDonnell called the state's 7.4 percent unemployment rate "absolutely unacceptable" and said: "It's nice that it's a couple of percentage points below the national average, but that doesn't make you feel good when you go to Martinsville and see 20 percent of the people unemployed."

McDonnell's 64-member commission is charged with making recommendations on improving the state's business climate, improving economic development programs and incentives, and considering additional legislative and policy changes.

The full commission will hold public meetings in July and September before delivering recommendations to McDonnell in October. The commission is co-chaired by Lt. Gov. Bill Bolling and Bob Sledd, the governor's unpaid senior economic adviser. The panel includes Cabinet members, legislators and business leaders.

McDonnell won legislative support for a package of economic development incentives that he said will give him "more tools than any other governor has had to tell the Virginia story."
Additional steps are needed to keep Virginia competitive with other states and other countries, administration officials said.

"The reality is, we became a little bit complacent," said Sledd, adding that Virginia lags behind other states in attracting jobs in growing industry sectors such as biotechnology and advanced manufacturing.

The Roanoke Times© May 6, 2010
By Michael Sluss

Free Lance Star: VA State Senator Houck Fights PDL for Mental Health Drugs

2010-04-20T09:39:00.002-04:00

HOUCK FIGHTS CHANGE TO MEDICATION CATEGORIZATION
By Chelyen Davis
The Free-Lance Star

Once again, mental health advocates are fighting against a governor trying to save money on psychotropic medications.

One of Gov. Bob McDonnell's proposed budget amendments would add psychotropic medications--such as antidepressants and anti-anxiety medications--to the state's "preferred drug list" for Medicaid.

The term "preferred drug list" pretty much means "cheaper drugs." It's a set, limited list of medications that doctors under the program are supposed to prescribe--such as generic versions of brand-name drugs. Any drug not on the list isn't supposed to be prescribed to a patient unless a doctor can show that the patient has already tried a drug on the list with poor results. But mental health advocates argue that when it comes to mental illnesses, those poor results can be as extreme as suicide.

Sen. Edd Houck, D-Spotsylvania, and Del. Riley Ingram, R-Hopewell, held a press conference yesterday in Richmond with mental health advocates to say they will oppose that amendment when lawmakers return to Richmond tomorrow to deal with the governor's amendments to bills.

McDonnell isn't the first governor to propose this: Governors Tim Kaine and Mark Warner before him also did so. Houck said he fought those proposals as well.

"We've had this same battle, seems like each governor listens to his budget people and fails to really hear the voices of people who advocate or treat mentally ill patients," Houck said.

When Kaine proposed it, it was estimated to save the state $1.5 million a year. McDonnell's version would save about $1 million a year.

McDonnell proposes grandfathering in current Medicaid patients who are receiving psychotropic drugs, so the change wouldn't affect them. But Houck said that's not good enough.

"It's always put in terms of cost savings to use the drugs on the PDL list," he said. "What they fail to realize is the real, tragic results that can come from trying patients on a medication to see if it works. With mental illness, it can have life-ending affects, and that's just not acceptable."

Houck said there aren't that many psychotropic medications out there, and the cheaper ones also tend to be the older, less-effective ones. Newer drugs are more effective but are costlier.

"There's a whole new generation of psychotropic medications," he said. "In fact, the treatment of mental illness has changed over the years because the medications have improved so much."

Fredericksburg Free Lance Star
http://fredericksburg.com/News/FLS/2010/042010/04202010/542270

Governor McDonnell Names Biotech Appointees to Jobs Commission

2010-04-20T09:17:00.003-04:00

Three bioscience industry representatives, all members of the Virginia Biotechnology Association, were named by Governor McDonnell to his Economic Development and Jobs Creation Commission: R.J. Kirk, CEO of Third Security; Robert Skunda, CEO of the Biotech Park in Richmond and Mark Herzog, executive director of VaBIO.

Governor McDonnell Announces Members of Governor’s Economic Development and Jobs Creation Commission

RICHMOND – Virginia Governor Bob McDonnell today announced the members of the Governor’s Economic Development and Jobs Creation Commission created by the his Executive Order Number One, issued moments after he took the Oath of Office on January 16th. Keeping in mind the unprecedented economic difficulties facing Virginia families and businesses, the highest unemployment rate in decades and the ever increasing competitiveness of the global economy, the Commission will work to put forth bold and innovative ideas addressing these significant challenges. The Commission is scheduled to have its first meeting in May, and will complete its initial report to the Governor by October 16, 2010. Lieutenant Governor Bill Bolling, who serves as Virginia’s first-ever Chief Jobs Creation Officer, and Bob Sledd, the Governor’s Senior Economic Advisor, will serve as Co-Chairs of the Commission.

“The foremost priority of our Administration is job creation. Economic opportunity and free enterprise are the bedrock of a stable and prosperous Commonwealth. Virginia is home to abundant resources, fiscal responsibility boundless human potential and the entrepreneurial spirit instrumental to a robust economic recovery,” said Governor McDonnell. “The work of this Commission is to create more opportunities for good paying work for all Virginians. I look forward to the ideas and solutions that this Commission will put forward to help create new jobs, spur economic development and ensure this is a ‘Commonwealth of Opportunity’ for all Virginians.”

Lieutenant Governor Bolling remarked, “Governor McDonnell and I have been clear in our commitment to do everything we can to get Virginia’s economy moving again and create jobs. We accomplished a great deal with part one of our Jobs and Opportunity Agenda during this year’s legislative session, but there is more work to be done. Over the coming year, the Governor’s Economic Development and Jobs Creation Commission will help us craft part two of our Jobs and Opportunity Agenda. By looking for additional ways to make Virginia a more competitive state and invest in proven economic development and job creation programs, we can strengthen our reputation as the most pro-business state in America, and secure the capital investment and jobs we need to provide the people of Virginia with greater economic security.”

Bob Sledd, the Governor’s Senior Economic Advisor, noted, “I took this job to help create good jobs for Virginians. That is the focus of this Administration and the work of this Commission. Every state and every nation is engaged in a fierce competition to attract capital, jobs and economic development. As Virginians we cannot afford to lose. The private sector creates jobs, but public policy plays a major role in creating an environment that makes job creation easier or tougher. Our goal is to put in place the policies that will free our job-creators and entrepreneurs to grow and be successful, to innovate and expand. When they can do that, Virginians will find the good paying jobs that they deserve and upon which our future prosperity depends.”

Members of Governor’s Economic Development and Jobs Creation Commission
Co-Chairmen:
Lieutenant Governor Bill Bolling
Bob Sledd, Governor’s Senior Economic Advisor

Members:
Jim Cheng, Secretary of Commerce and Trade
Todd Haymore, Secretary of Agriculture and Forestry
Lisa Hicks-Thomas, Secretary of Administration
Gerard Robinson, Secretary of Education
Ric Brown, Secretary of Finance
Doug Domenech, Secretary of Natural Resources
Jim Duffey, Secretary of Technology
ean Connaughton, Secretary of Transportation
Don Banker, CEO & Owner Banker Steel, Lynchburg
Steve Baril, Partner, Williams Mullen, Richmond
John Biagas, CEO, Bay Electric, Newport News
Tom Brock, Retired Vice President, General Electric, Roanoke
Del. Kathy Byron, Co-Owner of B&B Presentations, Bedford
Mel Chaskin, Chairman, Virginia-Israeli Advisory Board, Clifton
Christine Chmura, President, Chmura Economics and Analytics, Richmond
Del. Barbara Comstock, McLean
Dr. Deborah DiCroce, President, Tidewater Community College, Chesapeake
Helen Dragas, President and CEO, The Dragas Companies, Virginia Beach
James W. Dyke, Partner, McGuireWoods LLP; Chairman, Greater Washington Board of Trade
Joe Funkhouser, President, Coldwell, Banker and Funkhouser Realtors, Harrisonburg
Lisa Gable, Executive Director, Healthy Weight Commitment Foundation, Fauquier
Anne Gavin, State Government Affairs Regional Manager, Microsoft, Reston
Tom Godfrey, President, Colonna’s Shipyard, Norfolk
Julia Hammond, State Director, National Federation of Independent Business, Richmond
Ann Heidig, President, Virginia Wineries Association, Spotsylvania
Mark Herzog, Executive Director, Virginia Biotechnology Association, Richmond
Del. Matthew James, Director, Peninsula Council for Workforce Development, Portsmouth
Donna Johnson, President, Virginia Agribusiness Council, Richmond
Kenneth S. Johnson, Founder, Johnson Inc., Richmond
Pat Jones, Vice-President and General Manager, Kings Dominion, Richmond
Quintin Kendall, Director of Government Affairs, CSX Transportation, Richmond
Del. Terry Kilgore, Chairman of the Tobacco Commission, Gate City
Andrea Kilmer, Vice President, ESG Enterprises, Virginia Beach
Randall Kirk, Chief Executive Officer, Third Security, Radford
John Langlois, President, Tele-Video Productions, Virginia Beach
Bob Leber, Director, Workforce Development, Northrop Grumman, Newport News
Chris Lloyd, Sr. Vice President, McGuireWoods Consulting, Richmond
Frank Longaker, President, National Business College, Roanoke
John Luke, CEO, MeadWestVaco Packaging, Richmond
Bengt Lundgren, Manager, Swedwood, Danville
Del. Danny Marshall, Danville, Small businessman
Mike Melo, President, ITA International, Newport News
Caren Merrick, Co-founder, Webmethods, Reston
Donna Morea, President, US, Europe and Asia, CGI and Chair, Northern Virginia Technology Council
Christofer Mowry, President, Babcock and Wilcox Nuclear Energy, Lynchburg
Dakshay Patel, Managing Member, American Enterprises, Richmond
Julien Patterson, CEO, Omniplex Worldwide, Chantilly
Sen. Phil Puckett, Vice President First Bank & Trust Company, Tazewell
Harold Pyon, Supervisory Patent Examiner, U.S. Patent and Trademark Office, Fairfax
Mike Quillen, Founder and CEO, Alpha Natural Resources, Abingdon
Daphne Reid, TV and Film Actor, Co-Owner, New Millennium Studios, Petersburg
Brenda Robinson, President and CEO, Environmental Solutions, Inc., Richmond
Richard Sharp, Managing Director, V-Ten Capital Partners, Richmond
Sudhakar Shenoy, Chairman and CEO, IMC, Fairfax
Bob Skunda, President and CEO, Virginia Biotechnology Research Park, Richmond
Steve Smith, CEO, Food City, Bristol
Don Storey, Owner, Quality Tech Services, President and CEO, govtips.biz, Norfolk
Bruce Thompson, CEO, Gold Key/PHR Resorts and Hotels, Virginia Beach
Fred Thompson, Chief Administrative Officer, Thompson Hospitality, Herndon
Brett Vassey, President and CEO, Virginia Manufacturers Association, Richmond
Sen. Frank Wagner, President and CEO, Davis Boat Works, Virginia Beach
Michel Zajur, President, Hispanic Chamber of Commerce, Richmond

Responsibilities of Governor’s Economic Development and Jobs Creation Commission

Identify impediments to and opportunities for job creation; Review how other states and foreign countries are attracting jobs and how Virginia could replicate and improve upon those initiatives; Review the agencies’ role in job creation and make recommendations on how those efforts can be better coordinated to ensure unparalleled efficiency and effectiveness; Make recommendations on new investments and changes to the tax and regulatory environment in the Commonwealth to maintain and increase the Commonwealth’s standing as the best place to do business in the United State of America; Evaluate the current programs and investments designed to develop the workforce and attract and retain businesses in Virginia, and make recommendations on their effectiveness and need for improvement; and Assist the Cabinet and the Virginia Economic Development Partnership to identify and target industries and businesses to recruit to Virginia.

Ignite Institute loses major funding partner

2010-04-05T16:27:00.002-04:00

Ignite Institute for Individualized Health, a medical center startup hailed to be an economic development coup for Fairfax County, has lost one of its biggest sources of funding after Inova Health System’s board voted to pull out of the partnership.

But Ignite Institute’s founder said Inova’s decision doesn’t detract from his effort to launch the ambitious medical research institute, which was touted to bring nearly 500 world-class scientists to a newly built campus in the next five years to study personalized medicine.

“Ignite is absolutely going to launch and we’re on track to do so,” said Dietrich Stephan, president and CEO of Ignite Institute and originator of the idea.

Inova, which was one of the founding partners of the institute, said it could no longer back the venture after it ran into delays in raising additional funding.

“The money that they needed for the scope and scale for what was being proposed for the Ignite Institute was challenging at best,” said Tony Raker, a spokesman with Inova. “With the economic conditions, it became more of a challenge.”

Ignite had said it needed at least $150 million to start construction on a new campus. Inova had committed to pitch in $25 million, and Virginia had bestowed another $3 million from its Governor’s Opportunity Fund in an incentive grant. Just this week, Virginia Gov. Bob McDonnell signed into law another measure that frees $22 million for such a research institute, so long as it creates 415 jobs, through $5.5 million annual chunks available starting July 2011.

Ignite had said it planned to hire its first 100 scientists by the end of this year. It’s taking up temporary quarters in the Center for Innovative Technology building, while longer-term lab space is being built out in the next wing of the Herndon building.

Inova leaders had said the original plan to invest the $25 million in the institute was also based on Ignite’s ability to assemble a total $100 million, including the state commitments. Stephen M. Cumbie, Inova Health System board’s chairman, had said the team had come close to another potential $25 million grant from a national technology company that he wouldn’t name.

“But there was a change of CEOs and a pullback, and again a lot of this was being driven by the economy,” Cumbie said. “That and other prospects didn’t materialize.

“We were certainly concerned about starting down that road without the capital being raised,” Cumbie added. “The plan we felt great about. Dietrich is a world-class scientist, there’s no question about that. We had a lot of faith in him.”

With a key medical center partner leaving the table and a brutal economy still leaving wide budget deficits in its wake, Fairfax County leaders said they also can no longer support a multimillion-dollar bond that they had been considering to help locate Ignite Institute in a permanent residence in the county.

“Fairfax County has never before entertained even the idea of purchasing a building in partnership with an institute,” said Sharon Bulova, chairwoman of the Fairfax County Board of Supervisors. “For us, this was a very major consideration and therefore for us, there was a lot of risk associated with it, especially during this time. … Unfortunately, it just turned out not to be possible.”

But Stephan said he’s still collecting a syndicate of national partners and funders for the venture, describing these latest moves as a “reshuffling.” Ignite recently bought new gene sequencing equipment, making it the largest concentration outside of Asia to help scientists decipher through genes a patient’s predilection toward certain diseases.

“It’s mission-critical to maintain momentum,” Stephan said. “This is the future of medicine. Literally. Personalized, preventative medicine is the solution to our health care crisis today. It needs to be in the greater Washington area because of policy decisions. It will absolutely happen.”

Though, these are serious setbacks in an initiative that was grandly announced in mid-November at a press conference with two governors and a host of state, county and Inova leaders as an “accelerator” of the county’s infant biotech sector.

“I’m really disappointed that this didn’t work out, but I’m hopeful that something will come back, maybe in a different iteration,” Bulova said. “Everyone was very excited, very optimistic, and really thought that it could happen. And the harsh reality is that it was just a rough time to try to do something as ambitious as the Ignite proposal.”

Vandana Sinha
Washington Business Journal

Washington region bets big on biotech

2010-04-05T13:08:00.002-04:00

State and local leaders are betting billions of dollars in subsidies, tax breaks, loans and grants to biotech capitalists in the hopes of cashing in on a worldwide bio-boom.

But the industry's volatility has some worried that taxpayer dollars are being gambled on a dangerous roll of the dice.

"It's very much a crapshoot -- even with great science," said John Carroll, executive editor of FierceBiotech, a daily Web newsletter that monitors the industry. "On the upside, of course, biotechnology provides a great number of great jobs at high pay. And that's why so many economic development officials are eager to attract them."

Governments on both sides of the Potomac River are doubling down on life science research.

With the National Institutes of Health, the Food and Drug Administration and Johns Hopkins University calling it home, Maryland is consistently ranked as one of the top five states for biotech research. Virginia has rolled millions into the sector for more than a decade.

In 2008, Maryland Gov. Martin O'Malley promised to set aside $1.1 billion for the industry. This year, the General Assembly is weighing legislation that would require the state's pension fund to invest in Maryland bioscience companies.

Montgomery County, the fertile crescent of Maryland biotech, is lobbying for a law that would allow the county to buy biotech stocks with taxpayer money. The County Council approved a new tax credit for biotech firms, and Executive Ike Leggett has created a task force to expand the county's research industry. Nearly one-quarter of the county's economic development funds are dedicated to the life sciences industry.

County officials are considering a multibillion-dollar "Science City" project in the Gaithersburg-Potomac-Rockville area that promises to bring up to 76,000 biotech jobs to the area.
Some officials are worried that it's too many eggs in a fragile basket.

"If we invest in a company and they fall flat, we lose," said state Sen. Rob Garagiola, D-Poolesville.

Virginia Gov. Bob McDonnell signed legislation giving tax breaks to biotech investors. And he approved awarding $22 million in grants to the Ignite Center, a genetic research center that being built in Fairfax County.

The potential rewards are endless.

In the first decade of this century, the biotech industry saw more than $295 billion worth of mergers and acquisitions, according to Carroll's FierceBiotech. Among the big winners was Gaithersburg's MedImmune, which AstraZeneca acquired for more than $15 billion in 2007.
But the perils are just as big.

"For every person who goes down the right path, there's going to many more that went down the wrong path," said Andy Bauer, a regional economist with the Federal Reserve Bank of Richmond. "Whenever you have an industry driven by innovation, it's going to go in fits and starts."

Of the decade's mergers, only 18 percent of the targeted companies were making money, FierceBiotech analysts found.

In the first three months of the year, drug companies alone cut more than 26,000 jobs, according to analysts at Chicago outplacement firm Challenger, Gray & Christmas.

Last week, GenVec, a Gaithersburg biotech firm, saw its stock lose three-quarters of its value when it said it was canceling trials of a drug that was supposed to help fight pancreatic cancer. Its shares closed at 73 cents on Nasdaq Thursday, after a months-long run-up to $3.35. GenVec had borrowed $125,000 from Montgomery County.

For some, that's a bad sign.

"Since when is our county government serving as the chump of last resort for businesses too shaky to get off the ground through conventional means?" Montgomery County Civic Federation leader Peggy Dennis asked.

By: Bill Myers
Washington Examiner - Staff Writer
April 4, 2010

Obama Admin Seeks Input on Commercialization of University Research

2010-03-31T16:14:00.002-04:00

The Office of Science and Technology Policy and the National Economic Council have issued a request for information (RFI) on how best to encourage the commercialization of university research and on whether proof of concept centers are an effective tool in early-stage commercialization. The RFI asks for models, strategies and metrics that can help universities contribute to economic development. Responses are due by April 26.
Read the request for information:http://www.gpo.gov/fdsys/pkg/FR-2010-03-25/pdf/2010-6606.pdf

Governor Signs Bioscience and Technology Bills

2010-03-31T14:36:00.001-04:00

From 2010 Bioscience Legislation Bill Signing

Flanked by Democratic and Republican lawmakers and Northern Virginia technology and business leaders, Governor Bob McDonnell today signed into law a number of bills from his successful "Jobs and Opportunity" legislative agenda that received broad bipartisan backing in the recent General Assembly session. The signing ceremony was held at the Center for Innovative Technology and Northern Virginia Technology Council in Herndon.

McDonnell's "Jobs and Opportunity" legislative agenda consisted of measures designed to spur job creation and promote economic development in Virginia. The bills signed today included tax deductions on capital gains derived from investments in technology, energy, biotech and science-based companies operating in the Commonwealth; granting temporary business licenses to individuals who already have a business license or certification from another state; broadening the allowable uses of the Governor's Development Opportunity Fund to assist in attracting major employers to the Commonwealth; designating the head of the Virginia Economic Development Partnership as CEO; and establishing a biotech research performance grant program.

Speaking about the bill signing, Governor McDonnell stated The number one job of our Administration is to help create good jobs for the citizens of Virginia. We will do that by investing in proactive policies that help private sector companies expand and grow in the Commonwealth. The states that help lead this country out of this economic downturn will be those that move aggressively to promote job creation and make it easier for entrepreneurs and business owners to be successful. That is what we are doing in Virginia. The bills we are signing today gained broad bipartisan support because job-creation and economic development are bipartisan objectives. I thank the legislative leaders from both parties who helped carry this legislation, and the members of the Virginia technology and business communities who advocated effectively for its passage."

McDonnell also used the bill signing to comment on budget amendments successfully advanced by the Administration to further assist in the job-creation effort, "We also successfully promoted changes in the introduced budget to invest more in critically important economic development tools. These include the CIT GAP Fund which will provide critical and immediate first financing for 20 new early-stage companies, and position Virginia as a leader in next-generation company formation in the areas of technology, biosciences, and energy. We expanded funding for Virginia's wet labs so that they can increase lab space to the benefit of growing biotechnology companies. And working together we continued to fund the Virginia Leaders in Export Trade (VALET) Program and provided additional funding for the DBA Loan Guarantee Program which helps finance small businesses at a time when credit markets are tight."

Lawmakers joining the Governor this afternoon included Senator Mark Herring (D-Loudoun); Senator Janet Howell (D-Fairfax); Senator Walter Stosch (R-Henrico); Delegate Dave Albo (R- Fairfax); Delegate Tom Rust (R- Fairfax); Delegate Tim Hugo (R- Fairfax); Delegate Barbara Comstock (R- Fairfax); Delegate Mark Sickles (D- Fairfax); Delegate Rich Anderson (R-Prince William); Delegate Joe May (R-Loudoun); Delegate Jackson Miller (R-Prince William) and Delegate Mark Keam (D-Fairfax). Among the many leaders from the Northern Virginia technology and business communities in attendance were Bobbie Kilberg, President and CEO of the Northern Virginia Technology Council; Pete Jobse, President and CEO of the Center for Innovative Technology; Mark Herzog, Executive Director of the Virginia Biotechnology Association; John Backus, Managing Partner of New Atlantic Ventures; Spencer Williamson, President and CEO of Intelliject LLC; and Michael Grisham the President of GPB Scientific.

Speaking about his bill to grant an income tax deduction for capital gains derived from investments in technology, science-based or bio-tech start ups in Virginia, Senator Mark Herring remarked, "This legislation tells Virginia investors that if you support the entrepreneurs in this dynamic sector of our economy, state government will support you. Science, technology and biotech-based jobs are good-paying and fast-growing, and we must take every action possible to make sure they are created in the Commonwealth. This legislation will encourage more investors to put their private capital to work creating good work for Virginians."

Medicare agency adds ex-Va. official, plans reorganization - The Hill's Blog Briefing Room

2010-03-11T07:39:00.000-05:00

Virginia's Marilyn Tavenner Joins CMS...

Medicare agency adds ex-Va. official, plans reorganization
By Jeffrey Young
The Centers for Medicare and Medicaid Services (CMS) has tapped a former top health official from Virginia for a senior leadership position and plans its first structural reorganization in nearly 10 years.

Marilyn Tavenner, who was secretary of Health and Human Resources in the administration of then-Virginia Gov. Tim Kaine (D) from 2006 until Gov. Bob McDonnell (R) took office this year, has joined CMS as principal deputy administrator, a newly created position that makes Tavenner the second-ranking official at the agency -- and the Obama administration's most senior appointment to the agency.

Prior to her tenure under Kaine, Tavenner was a nurse and an executive at the Hospital Corporation of America, where she ran two facilities in suburban Richmond and served as chairwoman of the Virginia Hospital Association and a trustee at the American Hospital Association.

Obama, however, has yet to nominate anyone to serve as administrator of CMS. The agency has not had a confirmed chief executive since Mark McClellan resigned in Oct. 2006. President George W. Bush's last nominee for CMS administrator, Kerry Weems, served on the job in an acting capacity for more than a year but the Senate never took action on his confirmation. Since Obama took office, CMS's chief operating officer Charlene Frizzera, a veteran civil servant, has been acting administrator.

Medicare agency adds ex-Va. official, plans reorganization - The Hill's Blog Briefing Room

Delegate Steve Landes Wins “Virginia Bioscience Legislative Leadership Award”

2010-03-11T07:28:00.002-05:00

Richmond, VA--- The Virginia Biotechnology Association (VaBIO), today announced that Steve Landes, a member of the Virginia House of Delegates from Augusta County, won the Virginia Bioscience Legislative Leadership Award for his exemplary efforts on behalf of the biotechnology and medical device industry in the Commonwealth.

“Delegate Landes receiving this award will not surprise anyone who knows Steve or is familiar with his legislative achievements in support of economic development and job creation,” said Mark A. Herzog, executive director of VaBIO. “Our members are generally small start-up companies that are attempting to turn a discovery in a lab into a usable treatment for disease or suffering. These companies face huge challenges and it helps to know that we have a legislator like Delegate Landes who understands the challenges small technology businesses face every day.”

The Virginia Biotechnology Association has only recognized a handful of state legislators with this special distinction.

“The technology industry in Virginia knows that Steve Landes takes the time to understand the complexity of the development process for new drugs or technologies,” continued Herzog. “If it means new, high growth jobs for the community, Delegate Landes always goes above and beyond the call of duty.”

The Virginia Biotechnology Association (VaBIO) is the statewide non-profit organization that promotes the scientific and economic impact of the life sciences industry in the Commonwealth of Virginia. Approximately 300 biotechnology, pharmaceutical and medical device companies are based in Virginia, mainly clustered around universities in Blacksburg, Charlottesville, Richmond, Norfolk and Northern Virginia.

According to a recent study by Archstone LLC, the bioscience industry has a profound impact on the state’s economy:
• According to a study in 2006, the bioscience industry supported nearly 80,000 direct and indirect jobs in the Commonwealth.
• The value of the industry’s products and services was approximately $12.6 billion in 2006.
• The biopharmaceutical industry grew by 8.1% between 1996 and 2006.
• The industry paid employees about $1.8 billion in wages in 2006, resulting in $81.6 million in state taxes and $433.3 million in federal taxes.
• Biopharmaceutical employees paid, on average, $4,091 in state taxes, compared to the much more modest $1,501 paid by the average worker.
• In 2008, Virginia’s biomedical researchers conducted nearly 1,900 clinical tests of new medicines, including 678 trials for cancer drugs, 102 tests for heart disease medicines, 232 rare disease treatment trials and 80 tests for HIV/AIDS drugs.

For more information, please visit www.vabio.org.

US House GOP Whip Eric Cantor on Biotech

2010-03-08T14:36:00.002-05:00

"Simply put, we have to stop borrowing and spending so much money! As government shrinks, the private sector will grow, creating droves of new jobs. Think of the biotech park right across the street and the growth engine it has been for our region, and think of the potential there that remains untapped."

Capital Gains Exclusion on Technology Investments Goes to VA Governor

2010-03-08T13:56:00.004-05:00

The Virginia Biotechnology Association's (VaBIO) legislation to provide incentives for investments in biotech and other advanced technology companies is on the way to Governor Robert McDonnell's desk for signature. VaBIO and NVTC, the Northern Virginia Technology Council, are encouraging the Governor to amend the bill with an "emergency clause" so that it will take immediate effect upon his signature. Otherwise, there would actually be an unintended disincentive to invest until July 1st.

This legislation will make Virginia the most welcoming home for advanced technology companies seeking capital for growth. The new law will exclude capital gains from state taxes for all investors--private, angels, venture funds, and corporations, as long as the investment was made in a qualified, biotech or advanced technology firm. Our congratulations to the Virginia Bioscience Legislative Caucus for championing this legislation and to our two chief patrons, Senator Mark Herring (D-Loudoun) and Delegate Sam Nixon (R-Chesterfield). The concept was also highlighted by Governor McDonnell's Transition Team before taking office. Here are the details:

Bill Summary: Income taxes; recognition of income from capital gains. Grants an income tax deduction for any income taxed as a long-term capital gain for federal income tax purposes or any income taxed as investment services partnership interest income, on or after January 1, 2011, that is related to a qualified investment in a technology and science start-up business having a principal office or facility in the Commonwealth and less than $3 million in annual revenues in the fiscal year prior to the investment. The deduction would relate to investments made between July 1, 2010, and June 30, 2013.

HB 523 (Delegate Nixon)
http://leg1.state.va.us/cgi-bin/legp504.exe?101+sum+HB523
SB 426 (Senator Herring)
http://leg1.state.va.us/cgi-bin/legp504.exe?101+sum+SB428

DNA Co. Intrexon Raises $17.4M

2010-03-08T10:28:00.002-05:00

Biotech company Intrexon Corporation raised $17.4 million in Series D shares, according to an SEC filing. A group of 40 investors took part in the equity offering.

Housed at the Virginia Tech campus in Blacksburg, Va., Intrexon is developing DNA control systems to enhance the safety and efficacy of existing and emerging biological therapeutics.
Named in the filing were executive officers Randal J. Kirk, chief executive officer and chairman of the board; Thomas Reed, Ph.D., founder & chief science officer; Sunil Chada, Ph.D., senior vice president, translational medicine; Rick Sterling, chief financial officer; Ronald B. Herberman, M.D., chief medical officer - oncology; and Robert Beech, senior vice president, corporate development & communications. Directors named were Cesar L. Alvarez; Steven Frank; Larry Horner; Dean J. Mitchell; and Burton Sobel M.D.

While specific investors are not identified in the filing, Intrexon has reported $35 million in Series C-2 investment in previous years from New River Management, managed by Third Security, LLC., and NewVa Capital Partners, LP.

SEC filing: http://tinyurl.com/ye5lkq6.

By Citybizlist Staff'
Citybizlist Washington D.C.
March 5, 2010

Gauze is good for Newport News firm

2010-03-08T10:14:00.003-05:00

A Newport News company whose bread-and-butter is developing high-tech wound-healing products had two major announcements in February, including receiving substantial funding that could help it capture a share of the defense industry in addition to its pursuits in the consumer realm. Soluble Systems LLC announced it received $800,000 in federal funding to conduct a clinical study of its flagship product, TheraGauze.

Congress approved the funding from the 2010 Defense Appropriations Bill with the hope that TheraGauze can be proven to be a successful new battlefield wound dressing.

TheraGauze, which the company manufactures in Hampton, is a complex piece of gauze that has the ability to sense and respond to moisture within a wound. If part of a wound needs less moisture, the product can absorb it. If part of the same wound needs extra moisture to promote healing, the gauze helps produce that moisture, jump-starting or speeding up the healing process. The company calls this its proprietary Skin Moisture Rebalancing Technology.

The science behind TheraGauze came to be in the late '90s when Dr. Guy Levy, a local dentist, now the company's chief technology officer, secured a patent for a polymer intended to help combat dry mouth in Levy's dental patients.

Levy and attorney Allan Staley, now the company's president, "ultimately discovered [the polymer] had a lot more attributes than originally anticipated," Staley said.
Without getting into its patented chemical specifics, the polymer seems to magically know how to handle moisture in a wound. From there a wound-care dressing was developed and the two brought in CEO Kerry McCarter, a former Johnson & Johnson exec.

Finally in late 2007, after raising $5.9 million, Soluble Systems was able to bring TheraGauze to market. It's manufactured in a high-tech clean room in the facilities of the Arc of the Virginia Peninsula, a group that helps put individuals with developmental and other disabilities to work.
In addition to studying its moisture capabilities, one of the goals of the Department of Defense-funded study will be to further confirm the product's ability to deliver antibiotics to a wound, particularly serious wounds and infections seen in battle.

The study will take place at multiple sites including Eastern Virginia Medical School in Norfolk, Harvard Medical School, Johns Hopkins Medical Center and The University of Cincinnati Medical Center.

The study will begin later this year and will run for about two years, Staley said, and more funding will be sought from DOD to supplement the initial $800,000. It sought $4 million for the study initially.

The other big news for Soluble Systems came when it received notice that it was granted trademark protection on its skin graft product known as TheraSkin.

TheraSkin refers to cryogenically preserved grafts of human skin that are applied to wounds that are not healing properly. The technology behind this product provides important skin elements such as cytokines and collagen to and around the wound to jump-start the healing process.

TheraSkin was launched in 2009 after the company secured a partnership with Virginia Beach-based organ procurer LifeNet for its supply of human skin.

"We were looking to expand our product line and wanted to create a synergistic product expansion," Staley said. "[TheraGauze and TheraSkin] work together as part of the wound solution."

That combination of products, and a few more undisclosed Thera-brand ideas up its sleeve, gives Soluble Systems reason to be excited for the future.

The company employs 22 workers, including a sales force that calls on 10 major markets all over the U.S.

It is approaching $1 million in annualized sales, Staley said, with a target of just under $2 million in total sales for 2010.

It's in the midst of raising a second round of private capital, some of which will come from local investors, though its track record now allows it to look elsewhere for funding.

The money will be used to expand its sales efforts into 20 markets with 65 sales reps over the next five years.

Its biggest challenge, Staley said, remains competing with its multinational competitors and getting the Thera-brand and Soluble Systems names out there. The market in which TheraGauze competes is ripe with competition. TheraSkin, however, has just two main competitors, Staley said, both of which use bioengineered tissue rather than actual human skin.
TheraGauze has been plugged into the industry distribution chain and is available to consumers by the box or the case with a prescription.

A 2-inch-by-2-inch piece of the gauze runs about $8. The price goes up for larger versions.
Soluble Systems hopes to one day sell TheraGauze as an over-the-counter product.

It has been selling TheraSkin to customers such as VA hospitals since the fall.

The big question - what's the end game for Soluble Systems?

The biotechnology industry is a frontier for venture capital, acquisition or even going public.
For now, "we're looking to grow a company - to build a company here in Virginia," Staley said. "We'd like to employ more than 22 people."

Availability of private capital and a disdain toward public offerings will keep an IPO off the table for now, he said.

"It truly is an exciting opportunity to build this company and help the patient population to heal better and faster," Staley said, "and ultimately provide a solid return for our investors."

By Michael Schwartz Inside Business

Anti- Embryonic Stem Cell Language in VA House Budget

2010-03-01T09:51:00.002-05:00

From the Richmond Times-Dispatch:

"Two perennial amendments pushed by anti-abortion legislators also found their way into the House committee's budget bill.

A language amendment would prohibit state funding of embryonic-stem-cell research but would permit entities that conduct such research, without using state money, to receive state funding. State funding of research using aborted fetuses would be prohibited.

A second language amendment would prohibit the distribution of state money to Planned Parenthood Federation of America, or any affiliate. Very little general-fund money is given to the organization. Planned Parenthood says none of that money goes to abortions.

Similar amendments have failed in past sessions."

VA Senate Rejects Governor's Econ Dev Plan- Except Biotech!

2010-02-23T10:21:00.002-05:00

Washington Post: "Legislative and budgetary measures designed to create jobs are Republican Gov. Bob McDonnell's top priorities for the current legislative session. So it may be no great surprise the Democratic-led Senate Finance Committee declined to include most of his package in the budget it passed Sunday."

"Senators noted they did include funding for a new biotech center in Northern Virginia, as endorsed by McDonnell. And they passed a variety of tax credits and other bills that McDonnell wanted for job creation, each of which has budgetary impact."

For more click here.

New biotechnology scholarship available at NOVA :: Northern Virginia Community College

2010-02-16T11:05:00.000-05:00

Northern Virginia Community College is accepting applications for a new scholarship sponsored by Rividium, Inc. The Rividium Biotechnology Scholarship will provide $3,000 per year for two years for a student who plans to enroll full time in NOVA’s Biotechnology Program beginning in fall 2010.

To be eligible, applicants must be graduating from a local high school this year, have a minimum 3.0 grade point average and qualify for financial aid as determined by the Free Application for Federal Student Aid (FAFSA).

The biotechnology associate degree program prepares graduates for employment in entry-level positions as laboratory, research or manufacturing technicians at biotechnology and pharmaceutical companies. Coursework covers basic scientific principles in biology and chemistry and emphasizes laboratory techniques and procedures.

The application deadline is March 15. To access the application, click here.

For more information, call Ia Gomez at 703-530-8255."

VA Del. Chris Peace: Support Capital Gains Exclusion for Biotech in Virginia

2010-02-08T15:10:00.005-05:00

"Encouraging innovation and technology: Former Secretary of Commerce and Trade Bob Skunda along with the executive director of the Virginia Biotechnology Association, Mark Herzog, have brought nearly 60 businesses to the Virginia BioTechnology Research Park in downtown Richmond. These businesses have diversified our marketplace and made the region attractive to those who wish to explore the cutting edge of research and development. The park's businesses include life science companies, research institutes, and government laboratories -- and employ close to 2,000 people. In order to aide our statewide competitiveness in this sector -- as well as attract more scientists, engineers, and researchers who bring additional jobs to the commonwealth -- Del. Sam Nixon and Sen. Mark Herring (HB523/SB 428) introduced the Virginia Innovation Investment Act, which is a capital gains exclusion on income earned from a qualified investment in an advanced technology company in Virginia. There is a three-year window for the investment to be made. This bill will incentivize individuals and corporations to make investments in Virginia businesses that would not otherwise have occurred."

Click here for the full story from the Richmond Times Dispatch.

Flashback: John Crowley from "Extraordinary Measures" in Virginia

2010-02-05T10:28:00.000-05:00

John Crowley, the man who started a biotech company with the express purpose of saving his own kids suffering with Pompe's Disease, was a keynote speaker at the 2004 Virginia Biotechnology Summit in McLean. His story has been made into the Hollywood film "Extraordinary Measures" starring Harrison Ford and Brendan Fraser. The photo is from his speech he made to the audience that night at the banquet.

For more pictures from the event, click here.

HGS CEO Cites Virginia as Success in Growing & Attracting Biotech

2010-02-05T09:50:00.003-05:00

Tom Watkins, CEO of Human Genome Sciences and the chairman of the Maryland Life Sciences Advisory Board, commented recently on Maryland's economic development plan and competition from other states:

"We have to be realistic," he said, pointing out that it is a 10-year plan. "Other states, such as Virginia, are being aggressive in growing and attracting biotechnology companies. So we have to be forward-looking."

H. Thomas Watkins
CEO, Human Genome Sciences
January 29, 2010

http://www.gazette.net/stories/01292010/businew175358_32548.php

Biotechnology Is Part of Jobs and Opporunities Agenda

2010-02-01T10:25:00.008-05:00

In a column published in the Augusta Free Press yesterday, Lt. Governor Bill Bolling referenced biotechnology as a part of the administation's jobs and opportunities agenda.

"We will be able to invest in a number of strategic programs that are designed to improve Virginia’s ability to attract enhanced manufacturing facilities, become the East Coast’s energy leader and assert our position as a great place for biotechnology and life sciences companies."

Read the column here.

VaBIO Hosts "Extraordinary Measures" Movie Night in Richmond

2010-01-28T10:45:00.000-05:00

The Virginia Biotechnology Association rounded up nearly a dozen members and friends January 27 in Richmond to see the new Harrison Ford biotech -themed movie "Extraordinary Measures" about John Crowley's fight to save his kids suffering from Pompe's Disease. Next week we plan to do the same in Charlottesville!

Virginia Gov. McDonnell proposes more biotech funding

2010-01-27T09:27:00.001-05:00

Virginia Gov. Bob McDonnell made biotech initiatives a visible part of a job creation agenda he unveiled Tuesday.

His list of economic development action items includes removing a $3 million cap on certain equity and debt investment tax credits and raising the amount to $5 million in fiscal year 2011.

McDonnell also wants $2 million in fiscal 2011 funding for a business incubator program that would serve biotech companies.

He has expressed support for a bill already introduced that would create an exemption from the capital gains tax for income related to certain angel, corporate or venture investments in science and technology startups, a key issue for young biotech companies that are in a constant search for funding.

In addition, the new governor said he would invest $3 million in bioscience wet lab facilities over the next two years. In a move initiated by former Gov. Tim Kaine, the state is already awarding $3 million from the Governor’s Opportunity Fund to the Ignite Institute, a new nonprofit medical research organization, and the Center for Innovative Technology to build roughly 20,000 square feet of new lab space in the CIT’s Herndon building.

McDonnell’s plans for Ignite include $22 million in total funding for the nonprofit through the next five years, as long as Ignite agrees by June 30 to fulfill its pledge to create 415 jobs and invest $200 million in its future campus in Fairfax County.

The funding, announced by Kaine in an economic development gathering with Fairfax County leaders late last year, will be divided into four $5.5 million chunks. Under McDonnell’s proposal, the first $5.5 million chunk will be awarded in fiscal 2012, starting July 1, 2011.

Ignite, which needs to raise roughly $100 million more to help make the planned institute successful, also received a $25 million funding commitment from another major partner, Inova Health Systems.

Washington Business Journal
Vandana Sinha
January 26

VA Gov McDonnell: $7.5 Million for Biotech Program

2010-01-26T07:14:00.001-05:00

Governor Bob McDonnell Lays Out Details on Job-Creation Investments; Identifies Existing Funding and Spending Cuts to Offset Cost

Senate Finance Chair Colgan and House Appropriations Chair Putney Join Senator William Wampler to Carry Governor’s Job Creation Measures

RICHMOND- Virginia Governor Bob McDonnell today announced that leading Republican and Democratic lawmakers will carry the budget amendments necessary to implement the job-creation proposals he outlined in his Address to the Joint Houses of the General Assembly last Monday. In the Senate the amendments will be carried by ranking Senate Finance Committee member William Wampler (R-Bristol) and Finance Committee Chairman Senator Charles Colgan (D- Prince William). The amendments in the House will be brought forward by Appropriations Committee Chairman Delegate Lacey Putney (I-Bedford). McDonnell further announced that he has identified existing funding and specific spending cuts to offset the cost of each new job-creation proposal.

In last Monday’s speech to the General Assembly, McDonnell called for greater investments in state programs that spur job-creation and economic development in the Commonwealth. The Governor noted, “Yes, we face a difficult budget cycle. The budget that I have inherited is dire, and it is unbalanced. We begin with nearly a billion dollar annual shortfall based on tax hike proposals that both parties have rejected. More spending cuts must be made. But even in the toughest of times – even now – we must have the vision and the foresight to invest in our future.”

Lieutenant Governor Bill Bolling, Chief Jobs Creation Officer, commented, “I am delighted to join Governor McDonnell and legislative leaders in supporting this aggressive jobs and opportunity agenda. These proposals will enable us to re-prioritize economic development in Virginia and invest in programs that help create jobs for Virginia families. This is the most important issue currently facing our state, and it deserves our full attention. These legislative initiatives and financial investments will send a message that we are serious about getting Virginia’s economy moving again and enable us to reach out to businesses all across the country and all around the world an encourage them to make Virginia their home.”

Speaking today about the Governor’s job-creation legislation, Senator Charles Colgan stated, “The need to create new jobs for Virginians is pressing, not partisan. The proposals made by the Governor represent smart investments in the Commonwealth’s future. I am confident that we will find broad bipartisan support for them.”

Delegate Lacey Putney remarked, “We all know who creates jobs: men and women in the private sector. We also know that government can either make their lives easier, or get in their way. These ideas will facilitate job creation and economic development. They are exactly what a smart state should be doing in a tough time.”

Senator William Wampler added, “The citizens of my Senate district, like all Virginians, are reeling from some of the toughest economic times in many years. If Richmond will give them the resources to get to work rebuilding our economy, they will. These efforts will result in real jobs and a real return on investment. I applaud the Governor for finding cuts equal to each investment he is asking the Commonwealth to make. That is fiscally responsible government.”

Delegate Kirk Cox (R-Colonial Heights), who serves as Vice-Chairman of the House Appropriations Committee, will help Delegate Putney in this effort. He commented, "This is a comprehensive approach that addresses all of the critical areas of much needed economic development for Virginia. We are committed to work together - Republicans and Democrats, House and Senate - to make this happen."

McDonnell is calling for $50 million in new investments over the next biennium. The Governor is proposing:

· More than doubling the Governor’s Opportunity Fund in FY 2011 by increasing the state commitment by $12.1 million

· Committing $5 million in FY 2011 to a state industrial mega-site fund to attract new employers

· Using $2 million over the biennium to establish state economic development offices in major growth markets in China, India and the United Kingdom

· Supporting the fast growing bio-technology and life sciences industry by removing the $3 million cap on the Qualified Equity and Subordinated Debt Investment Tax Credit and raising it to $5 million in FY 2011; Investing $3 million in bioscience "Wet Lab" Facilities over the biennium; Utilizing $2 million to reestablish funding for the Business Incubator Program in FY 2011; Providing income tax exemption for qualified investments by technology and science startup companies in FY 2012 (cost $500,000)

· Increasing state funding for the Virginia Tourism Corporation by $3.6 million in each year of the biennium, and state funding for the Governor’s Motion Picture Opportunity Fund by $2 million in FY 2011

· Depositing the Wine Liter Tax attributable to Virginia Wine into the Wine Promotion Fund ($1.5 million over biennium)

· Improving Virginia’s business assistance services by increasing funding for the Loan Guarantee Program by $1 million in FY 2011; Continuing funding for the Business One Stop Program, cost of $1 million over the biennium; Increase the appropriation for the Virginia Jobs Investment Program by $6.5 million in FY 2011

The fiscal impact of the Governor’s investments will be offset by utilizing existing revenue sources and cutting some expenses. Specifically:

· $21 million will be available through increased revenue from Virginia’s tax amnesty program

· $500,000 from the elimination of a capital outlay contingency reserve

· $4 million by not filling vacant positions at the Department of Correctional Education

· $1.2 million by deferring equipment purchases at the Department of Corrections

· $25 million will be available through the phase-in of VRS employer contribution rate increases included in the introduced budget bill with one-half of the increase being recognized in FY2011 and the full increase being recognized in FY2012

· $5 million will come from an offset of state funding with additional federal grant funding for food stamp program administration