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A chat with the
head of the Virginia Bio-Technology Research Park
Related
Story:
Biotechnology keeps up its
slow, steady growth
Richmond
has long had its sights on biotechnology and over the
past decade has built a research park near the Medical
College of Virginia downtown. Robert Skunda, president
and chief executive officer of the Virginia Bio-Technology
Research Park, recently sat down with Virginia Business
Publisher Doug Forshey and talked about the industry.
What
makes biotech so attractive?
“First, it is one of those industries that has
always been referred to as a “clean” industry
— high technology, cutting edge and good-paying
jobs. It embraces all those things and when you’re
talking about “sexy” in economic development
circles, biotechnology jobs are really the kind most
often sought.
It’s
almost hard to predict where biotech may not have an
impact — the more research the more science, etc.
In that sense we are not talking about something that
does not have the potential to come true. The real question
is, “Just how big is this going to get?” And
that’s really the unpredictable thing.
“I
like to use the analogy that biotechnology as a science
is analogous to the Internet. The kind of change that
the Internet has created in commerce — and I am
not talking about dot-com companies — I am talking
about how it has changed commerce. Clearly it has been
an enabler for traditional companies to do business
in different ways, and it’s created hoards of new
companies that were never even thought of before, that
are related to doing business in a completely different
way. I think that biotechnology will have that same
kind of impact and that’s why it is so exciting
to economic developers.”
What
attracts an emerging biotech company to a research park?
“All the evidence suggests that there are really
five or six major drivers when it comes to the reasons
there are successful clusters of biotechnology.
“You
have to have some kind of an engine, usually a federal
laboratory or more frequently a major research university
— a research engine that is focused in the life
sciences, engineering and the appropriate disciplines
and technologies. You need something that is very hard
to start from scratch. We’re fortunate here that
we have an institution that has been around for 168
years.
“The
second thing the companies look for is the skilled labor
to fill the jobs. That speaks to needing the universities,
needing the whole educational infrastructure that prepares
people to take these jobs, as well as recruiting people
to take these highly specialized jobs. So why is Boston
such an acknowledged hub for biotechnology? It’s
because there are so many companies already there.
“The
third thing is a kind of entrepreneurial environment
that has all of the various kinds of supporting infrastructure
from intellectual property law firms, venture capital
and the serial entrepreneurs.
“Then you get into the kind of ubiquitous ‘quality
of life’ issues. Every community likes to think
that it has a great quality of life. I think that Richmond
really does have something to offer in this regard.”
Are
most biotech companies fairly small research organizations?
“There are a few giants in the industry that were
started several years ago, like Genentech, Amgen and
a few others. They are large publicly traded companies
and many people could not distinguish them from a traditional
pharmaceutical company, except for the fact that they
are using biological processes to formulate their health
care products rather than traditional chemical synthesis.
“But
those types of companies are really the exception and
not the rule. The rule is really still much earlier
stage companies, even at the start-up stage, coming
out with technologies being developed at these research
engines and employing, by and large, a different kind
of business model.
“You’ll
find that most of the companies in the biotechnology
industry don’t have a long-term vision and goal
of becoming a vertically integrated company, much like
the traditional pharmaceutical companies. They are not
inclined to build their own manufacturing facilities;
rather many will depend on contract manufacturing facilities
and contract research organizations to handle their
clinical trials. They
look at themselves as much more part of a network of
companies. Part of that is capital driven. The cost
of physical facilities is prohibitive. When you’re
trying to bring something in a highly regulated industry
— like anything related to health care — to
market, today the average cost of bringing a new drug
to market is pegged at $800 million and 14 years.
“The
potential of a typical start-up biotechnology
company ever going the entire distance — the whole
hundred yards — is almost unimaginable. Most of
them have an exit strategy of selling their product
or science, and that’s why today you see a merging
between traditional pharmaceutical companies and biotech
companies, to what we now refer to as biopharma. That’s
why large pharmaceutical companies also like to have
laboratories at these types of biotech parks. It enables
them to keep an eye on what’s happening on a day-to-day
basis.”
What
are the benefits of the Virginia Bio-Technology Research
Park?
“We’re not just selling real estate. What
makes us unique is our affiliation with Virginia Commonwealth
University. Here we have a major research university
that in the past decade has added a number of significant
initiatives, including a new school of engineering that
is not a traditional school of engineering but one focused
on industries of the 21st century, like micro-electronics
and biotechnology. It’s anchored in chemical engineering,
mechanical engineering, electrical engineering and bio-medical
engineering.
“The
second thing we are selling is what I describe as a
scientific community. It’s the reason that makes
this an exciting and desirable environment. Scientists
love to be around other scientists.
“The third thing is a nurturing and supportive
environment. This is especially important for the private
sector and early stage companies. We take the attitude
that the more I know about your business, the more I
can help you to ensure your success.”
Return
to Virginia Business - June 2003
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