by Sean R. Sedam | Staff Writer
BALTIMORE — Calling it a ‘‘sound investment,” state officials, researchers and stem cell advocates on Monday praised a plan for Maryland to invest $1.1 billion in the biotechnology industry over the next decade.
The Bio 2020 Initiative, announced by Gov. Martin O’Malley at the Johns Hopkins Institute for Cell Engineering, would create the Maryland Biotechnology Center, expand the state’s biotech investment tax credit and its technology incubator program, continue funding for stem-cell research, and increase investments in nanotechnology and the state’s venture program.
The plan will build on Maryland’s position as the home of government regulatory agencies, higher education and research centers and nearly 400 private biotechnology companies, O’Malley said.
‘‘We seek to take a giant step forward in harnessing all the potential that is already within our grasp,” O’Malley said.
‘‘Bioscience is, in many ways, the key to unlocking our future economic potential as a state,” he said. ‘‘... We are uniquely positioned among states for even greater leadership, not just within the continental United States, but within the whole world.”
The initiative, much of which will be left to the General Assembly to approve in future state budgets, would represent the largest per capita investment in the biosciences by any state, according to the governor’s office.
‘‘We know this is a sound investment,” said Del. Samuel I. ‘‘Sandy” Rosenberg (D-Dist. 41) of Baltimore. ‘‘We’re aware of the state’s strength in the life sciences.”
The program is based on early recommendations from the state’s new Life Sciences Advisory Board, which in the fall began work on a statewide strategic plan for biosciences. The board plans to issue a report this year.
H. Thomas Watkins, president and CEO of Human Genome Sciences of Rockville and chairman of the Life Sciences Advisory Board, issued a statement saying O’Malley has a ‘‘bold vision” for life sciences in Maryland.
The investment has immediate benefits for patients, said John Kellerman, president of Maryland Families for Stem Cell Research.
‘‘This funding goes a long way in retaining our current researchers, attracting future investigators, and most importantly, providing hope for possible therapies and potential cures for thousands of Marylanders living with deadly diseases and injuries,” Kellerman said.
The announcement comes on the heels of O’Malley’s trip to Israel last month, where he met with Israeli leaders and bioscience executives.
More than 30 Israeli-owned companies do life science research in Maryland, O’Malley said.
Later this week, O’Malley will fly to San Diego to attend BIO 2008, the world’s largest life sciences conference.
‘‘We have had a lot of people bragging about our biotech, but other [states’ governments] have put more of an effort into helping their industry along,” said John Holaday, former CEO of Rockville biotech EntreMed and now managing director and CEO of QRxPharma, who was attending BIO 2008 this week. ‘‘This will put us on par with what other states are doing. Hopefully the amount of money that is spent will be used to help later-stage companies, as well as startups. That’s what we need more of in Maryland.”
The initiative includes:
*A ‘‘one-stop shop” Maryland Biotechnology Center to showcase and support biotechnology innovation and entrepreneurship in Maryland, and consolidate state, academic and private-sector ventures. It would include the Maryland Technology Development Corp.’s tech-transfer initiatives, the state labor department’s regulatory functions and University of Maryland programs.
*Doubling the $6 million biotech investment tax credit in fiscal 2010 and again in 2013, which could leverage almost $50 in private investment.
*Adding $60 million to the state’s Technology Incubator Network over the next decade, leveraging $120 million in private and federal investments and growing the program by 50 percent.
*Growing Maryland’s Venture Fund, which provides challenge grants to startups and makes equity investments in more established companies, by investing $152 million by 2019, leveraging almost $2 billion in private equity.
*Spending at least $20 million a year on stem-cell research. The General Assembly approved $19 million for such research in fiscal 2009, which begins July 1.
Life science companies want to be in Maryland, said David W. Edgerley, secretary of business and economic development.
The O’Malley administration must convince the General Assembly that the initiative is worth the money, he said.
Business incubators create new jobs, buildings and tax bases for the state, he said. Tax credits spur economic activity.
‘‘It’s going to have to stand on its own merits in the legislative process,” Edgerley said of the plan. ‘‘We’re going to have to do a good job of making sure that we convince everyone that there is an adequate return in that investment. It really can pay for itself.”
