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UF SID MARTIN
FLORIDA
BIODATABASE
State of the Industry Report | Fall 2014
INDUSTRY GROWTH
At a time when national biotechnology
industry growth is slowing, Florida’s
biotechnology industry has grown
by more than 75 percent over the
past six years with a 10 percent
increase in 2013. The state is currently
home to 241 biotechnology companies,
according to a new report by the
University of Florida’s BioDatabase.
In contrast, Ernst & Young and Nature
Biotechnology reports indicate that the
U.S. biotechnology sector has shown a
much slower growth rate of 34 percent
over the same period, with an actual
decrease of 1 percent between 2012
and 2013.
Florida’s bioscience industry has
grown more since 2004 than in all
previous years combined, with an
unprecedented acceleration of new
companies being founded in the last
several years. More than 10 percent
of the nation’s biotechnology
companies now reside in Florida.
The state’s two largest biotech
segments are: Therapeutics (38 percent)
and Diagnostics (11 percent) with
approximately two-thirds of Florida
companies currently having a product
being sold in the marketplace. There
are 46 publicly held companies, with
almost half being traded on either the
NYSE or NASDAQ exchanges. It takes
an average of 12 to 15 years for a biotech
300
Growth of Florida
Biotech Companies
250
Number of Florida Biotech Companies
Founded in Each Interval
200
Total Number of Florida Biotech
Companies
150
100
50
0
7
8
4
3
1
86
01
92
3
99
89
95
00
010 -201
00
198
198 84-19 7-19 0-19 3-19 96-1
-20 2-2 05-2 08-2
1
9
1
Pre
9
01
8
0
19
2
0
0
19
0
19
19
2
199
2
198
199
2
company to develop and commercialize
a research discovery.
The Florida biotechnology industry
is located primarily in four areas: the
Southeast region of Miami, Fort
Lauderdale and Boca Raton (40
percent of companies), the Tampa
Bay/St. Petersburg region (25 percent
of companies), the North Central
region including Gainesville and
Alachua (18 percent of companies)
and the East Central region of greater
Orlando (10 percent of companies).
The respective percentage of companies
in each area has remained nearly the
same since 2008.
the Florida BioDatabase are
characterized by having an original
research and development core that
generates new product discoveries,
and does not include the numerous
biomedical companies that are
involved only in manufacturing
and/or distribution of products.
It is important to note that
biotechnology companies tracked by
Sid Martin Biotechnology Incubator at the University of Florida | FLORIDA BIODATABASE State of the Industry Report | Fall 2014 | page 1 of 4
In 2013, Florida enjoyed its best year for life
sciences venture capital (VC) funding since 2007.
VENTURE FUNDING
In 2013, Florida enjoyed its best year
for life sciences venture capital (VC)
funding since 2007. The state’s
companies closed 19 life science deals
(the same as in 2012), but attracted
$179 million in VC investments,
representing a 73 percent increase in
venture capital over 2012.
While Florida compared to other
states has seen considerably less money
raised in terms of absolute dollars, the
percentage growth of VC funding for
its biomedical industry continues to
outpace national trends. Data from
the National Venture Capital
Association revealed a 2 percent drop
in life science funding nationwide
(a figure that includes both the
biotechnology and medical device
segments) as well as a 3 percent
decrease in the number of venture
capital deals in 2013.
California and Massachusetts are the
country’s largest in terms of volume of
life science funding deals and intensity
of capital. California experienced an 8
percent increase in life science venture
Florida Life Science
Venture Funding ($M)
Med Device
Biotech
180
160
140
120
100
80
60
40
20
0
2008
2009
2010
dollars from 2012 to 2013, while
Massachusetts saw its life science
venture funding decrease 13 percent
during the same period.
The U.S. life sciences sector attracted
approximately $6.7 billion in total VC
dollars per year in 2012 and 2013. Both
California and Massachusetts together
have accounted for approximately
$4.4 billion dollars allocated to the life
science sector in each of the last two
years, an amount that equates to 65
2011
2012
2013
percent of the total U.S. life science
venture dollars.
Immunocytochemical photography by
Dr. Gerry Shaw, CEO of UF Sid Martin
Biotechnology graduate company EnCor
Biotechnology.
Sid Martin Biotechnology Incubator at the University of Florida | FLORIDA BIODATABASE State of the Industry Report | Fall 2014 | page 2 of 4
REGIONAL TRENDS
Venture capital firms invested $511
million from 2008 to 2013 in Florida’s
life science industry. About 98 percent
of those dollars can be attributed to
the four regions detailed below. The
majority of Florida venture-funded
biotech companies were in a later stage
of development and had an established
revenue stream, or were close to
placing a product in the marketplace.
Early-stage biotech companies
continue to struggle with venture
funding.
v
Alachua/Gainesville
Alachua County-based life science
companies attracted 25 percent of
the state’s total life science venture
capital funding in the six year span
from 2008 to 2013. The region closed
15 deals or $129.4 million in venture
investment. Approximately 92 percent
of these dollars are directly attributable
to University of Florida technology.
Two Alachua County companies
utilizing UF technology were
responsible for one-third of the
region’s total life science venture
dollars over the past year. These were
iron overload treatment company
Sideris Pharmaceuticals and gene
therapy company Applied Genetics
Technology Corporation (AGTC).
Sideris closed a $32 million Series
A round: the largest single Florida
biotech venture deal in 2013. (Note:
Sideris’ operations at that time
included facilities in Boston, MA
and Gainesville, FL).
AGTC received almost $29 million
in venture dollars last year. This UF
Sid Martin Biotechnology Incubator
graduate has been one of the most
Other 2%
Tampa Bay /
St. Petersburg 16%
Regional Florida
Life Science Venture
Funding, 2008 – 2013
(Total = $511M)
South
Florida 35%
Greater
Orlando 22%
Alachua /
Gainesville 25%
successful Florida biotech companies
in raising venture funding ($88
million) over the life of the company.
AGTC went on to close a $50 million
initial public offering this past March.
South Florida
South Florida life science companies
accounted for 35 percent of life science
funding or $179 million, from 2008 to
2013. The region closed 38 deals –
the most life science venture capital
deals in the state. Orthopedic medical
device company Orthosensor raised
more than $55 million while immunotherapeutics company Altor Bioscience
received over $19.5 million.
One of the most successful life science
exits in Florida occurred in December
2013, when orthopedic company Mako
Surgical was acquired by Stryker for
$1.65 billion.
$112 million (or 12 deals). A significant
portion of these funds were directed to
LensAR, a medical device company developing one of the latest laser systems
used primarily in ophthalmic surgery.
The company’s femtosecond technology has received venture funding
exceeding $76 million since 2009.
Tampa Bay/St. Petersburg
The Tampa Bay/St. Petersburg region
brought in 16 percent of the state’s life
science venture capital dollars from
2008 to 2013. The region closed 15
deals and attracted $81.6 million
in venture funding. Dollars were
invested among a variety of companies
including over $12 million going to
point-of-care diagnostics firm Rapid
Pathogen Screening, along with another $7.7 million invested in diagnostics
company Informed DNA, which
provides genetic testing and analytics.
Greater Orlando
The greater Orlando area garnered
22 percent of Florida’s life science
venture capital investments over
the past six years, totaling just over
Sid Martin Biotechnology Incubator at the University of Florida | FLORIDA BIODATABASE State of the Industry Report | Fall 2014 | page 3 of 4
ABOUT THE FLORIDA BIODATABASE
(FloridaBioDatabase.com)
Established in 2007, the Florida
BioDatabase is one of the most
comprehensive biotechnology
resources in the state. Co-founded and
managed by the University of Florida’s
Sid Martin Biotechnology Incubator,
the searchable public database tracks
all Florida biotechnology companies
with active research and development
activity. The BioDatabase defines a
biotechnology company according
to the Ernst & Young guidelines that
include core R&D and involve the
use of modern biological techniques
to develop products or services for
human health care, animal health care,
agricultural productivity, food
processing, renewable resources,
industrial manufacturing, and
environmental management.
The Florida BioDatabase does not
include healthcare services companies,
medical device companies without
a bio component or biomedical
companies that are involved only in
manufacturing and/or distribution of
products. The BioDatabase strives to
do comprehensive and accurate data
collection which includes resources
listed in the reference section of this
report as well as (but not limited to)
Florida technology incubator
updates, SEC Form D filings and
various business news journals (statewide and national including the WSJ,
Bloomberg, etc.).
Florida BioDatabase Editor
Michael A. Schmitt, MD
Dr. Schmitt has been tracking Florida
biotech companies for the past seven
years as a co-founder of the Florida
BioDatabase. With over a decade of
experience in clinical and research
medicine, he currently functions as a
life science analyst and consultant.
Dr. Schmitt was the primary author
of the 2003 Japanese External Trade
Organization’s report on Florida’s
biotech companies. An alumni of both
the University of Pennsylvania and
Johns Hopkins University, Dr. Schmitt
holds an MD as well as a Master of
Public Health with concentrations in
healthcare management, epidemiology
and behavioral sciences. He is trained
in ophthalmology and preventive
medicine.
SID MARTIN BIOTECHNOLOGY INCUBATOR at the UNIVERSITY OF FLORIDA
Sid Martin Biotech brings promising
research discoveries to the marketplace.
The incubator opened its doors in
1995 as one of the first biobusiness
incubators in the United States. In
2013, the program won three first-place
international incubation awards. Its
companies have attracted more than
$1.2 billion in equity investment,
contracts, grants, and M&A activity.
In the last two years alone, Sid Martin
companies have seen a $113 million
acquisition, a $50 million IPO and
a $350 million government contract
award. The University of Florida’s
Office of Technology Licensing has
helped create over 150 new companies,
mostly bioscience, in the last
thirteen years.
External References
CONTACT US:
Ernst & Young, Beyond Borders: Global
Biotechnology Report, 2014; National Venture
Capital Association Report, Venture Capital Updates, 2014; Nature Biotechnology, Public Biotech
2013, Vol. 32, July 2014; Pricewaterhouse Coopers
MoneyTree Report, Life Sciences Updates, 2014;
University of Florida Sid Martin Biotechnology
Incubator, Florida BioDatabase, August 2014.
Sid Martin Biotechnology Incubator
12085 Research Drive
Alachua, FL 32615
386.462.0880 tel | 386.462.0875 fax
The Sid Martin Biotech incubator’s 40,000
sq. ft. lab complex is located 20 minutes
north of UF’s main campus in Gainesville,
www.sidmartinbio.org
Sid Martin Biotechnology Incubator at the University of Florida | FLORIDA BIODATABASE State of the Industry Report | Fall 2014 | page 4 of 4