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In an initiative to accelerate capital formation for biotech innovation, the Biotechnology Innovation Organization (BIO) on Jan. 7 launched the BIO Investment Council (BIC), which will increase engagement between investors and BIO members.
BIC addresses an urgent need to better align small and emerging biotech companies with the right investors in the earliest stages of their research. While overall venture capital funding into biopharmaceutical companies has remained stable, investment in clinical-stage companies has surpassed that in preclinical-stage companies for the first time in a decade.
“Private capital funding is the lifeblood of America’s small to midsize biotech innovators,” said BIO President & CEO John F. Crowley. “Today, more than half of innovative new medicines originate in small to mid-size biotech companies. Yet, despite incredible scientific progress and promise, significant challenges remain in private capital formation to support emerging companies.”
BIC will work with companies and investors to accelerate biotech investment. It will advise BIO on policies that facilitate investment in the industry and identify how broader policy decisions will uniquely impact emerging biotech companies.
BIO Board Member, Doug Dieter, Dr. P.H., Partner at Ares Management and Co-Head of Ares Specialty Healthcare, will chair the BIC. Dr. Nessan Bermingham, Operating Partner at Khosla Ventures, will serve as Vice Chair.
BIC will also play a critical role in BIO events, including the BIO Investor Growth Summit, taking place March 2-3 in Miami Beach. The summit addresses pressing issues facing our industry, such as navigating the financial landscape and tackling regulatory and policy challenges. It also provides companies and investors an opportunity to build in-person relationships with strategic partners, and offers guidance on capital formation, commercialization, reimbursement, and growth.
Accelerating investment
“Small and emerging biotech companies are facing unprecedented challenges, and through BIC, our goal is to remove barriers to accessing capital and improve the investment outlook for our sector,” said BIC Chair Dr. Dieter. “I look forward to working alongside BIO’s leadership, its members and Ness to accelerate biotech investment, drive innovation and help transform the lives of patients across the country.”
Dr. Bermingham, BIC Vice Chair, noted the importance of achieving appropriate attention for biotech innovation.
“With the launch of BIC, I am excited to engage leading investors among all major asset classes for biotechnology with the emerging innovators leading the way on cutting-edge science,” he said. “Having founded multiple companies in the life sciences sector, I know firsthand how critical it is to match the right investors with the right science.”
Crowley pointed out BIC’s alignment with BIO’s mission and lauded the possibilities it can bring.
“The launch of BIC, under the leadership of Doug and Ness, affirms our commitment as we seek to ensure biotech start-ups have the capital needed to innovate, grow, and ultimately deliver ground-breaking treatments that have enabled the US biotech to lead the world and improve the lives of millions of patients,” he said.
