Capital formation and public affairs top the list of priorities for
WBBA core members: financial executive named as WBBA chairman to board of directors
By Lorraine Ruff and David A. Gabrilska, industry analysts
Milestones - the critical thinking company
As war looms and
the bad taste of dot bust lingers, investors are edgy about high risk
investments; consumers are postponing the purchase of high value items such as
new automobiles. The mood of the day -- across the board -- is wait and watch.
When the executive
management of the Washington Biotechnology &
Biomedical Association (WBBA) got together to prepare the budgets for the 2003
fiscal year, the mood was equally cautious. But happily, Greg Sessler, CFO of
Redmond-based Spiration, Inc., and
the new chairman of the WBBA board of directors and Ruth Martens Scott, president of WBBA, report that
membership expansion among core and associate companies continues, and
participation in Association sponsored events is up, most particularly events
that focus on capital formation opportunities.
"We continue to enjoy sell-out crowds at our
events," said Mrs. Scott. New companies are finding that the benefits and
services that the Association offers, including the health benefits programs,
attract companies, large and small. In recent months, 15 new companies have
become members to take advantage of the attractive group health insurance rates
that are managed through the WBBA’s benefits plan broker, Acordia.
"I believe that the growth we have seen and level of participation and sponsorship
are a testament to the quality goods and services that WBBA provides to our
membership," she added. It’s simply true that membership dues are often
directly offset by the group purchasing programs WBBA provides its members.
Newly formed companies may join the Association for $100 for the first year. [Membership dues structure].
These days, though, the more compelling
reason for a company to join the WBBA is for the clout it represents in Olympia
and Washington, DC.
"It’s hard for a young company to maintain
any kind of public affairs presence," Mr. Sessler said. And these days the
stakes are high.
The Brookings Institution’s inclusion of Seattle (1) is good news, Mrs. Scott pointed out.
The bad news is that in many other regions
in the U.S. a consortium of interests -- industry, academia, and government
often led by the Chamber of Commerce and State Economic Development - are
working hard to be competitive and to attract and retain companies through
incentives. Washington State’s consortium of interests has not yet formed a
cohesive whole.
"We're very much focused on research and development in this state," she said.
However, without support in the public
policy arena, including a favorable business tax environment and with a
legislature that eschews short-term fixes in favor of long-term investment,
Washington State and its life sciences industry may miss much of the commercial
potential that should evolve from the rich research that's taking place.
"What’s required is leadership from the
Governor to bring the various public/private entities together to talk about
the future of Washington State and how we can become competitive -- not remain
competitive -- and develop a strategic vision that will provide a roadmap for
bioscience growth in Washington State," Mrs. Scott said. "We went from being
the state with the lowest unemployment to the highest, practically overnight. That
was such a surprise, but it also provided a wake-up call, and people are
scrambling to find the answers to make that correction."
Feeling the concern about the lack of
competitiveness of the business environment in Washington State, WBBA’s core
members, biotechnology and biomedical companies, reported in a recent survey
that public policy advocacy is of critical importance.
The top three priorities this year, without
question, include preserving a favorable tax environment, maintaining state
funding for higher education and ensuring that Washington residents have access to medical innovation, specifically
patient access to prescription drugs.
The tax issues have gained momentum due to the City of Seattle’s effort to tax
intellectual property over the last six months and increasing awareness
that the state’s R&D tax credit and M&E tax deferral will sunset next
year. Core member awareness has been heightened through WBBA's communication
process. In addition, core member concern about capital formation has become a
high priority to the Association’s leadership.
"When you look at our core members and
what's on their minds, clearly capital
formation is at the top of the list, even for those who are blessed with
having raised a bunch of cash during the boom years in 2000," Mr. Sessler said.
"Even those folks are focusing
intently on their ability to raise additional capital to get research to the
point where there is a return to investors."
Mr. Sessler pointed out this core member
concern helped set a new strategic initiative for the WBBA, the details of
which will be published in the next few weeks.
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Goals for 2003
By this time next year, Greg Sessler would like to count among WBBA’s successes:
- While not a one-year job, I would like to have attained some momentum toward the
facilitation of capital formation among early-stage companies.
- I would like to look back a year from now and say we have a more active member organization,
and that every organization is dedicating someone within their company or
institution to spend some time at the WBBA on the programs. The talent is
there. Ruth is the clearinghouse. She's always on top of what are the
challenges that are near-term and where do we need some resources.
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"We’re focusing on those obstacles we might
be able to remove so that it might make it easier for our member organizations
to raise capital," he said. The second annual Invest Northwest, March 10 - 11,
2003 has given WBBA some confidence that it can make an impact. This year, 65
companies have been invited to present to an expected audience of over 500.
"Invest Northwest has certainly done wonders
for giving a platform for local companies to present to investors," Mr. Sessler
said.
WBBA’s focus on capital formation influenced the selection of this
year’s board chairman. Mr. Sessler was a welcomed addition in large part due to
his financial background and the expertise that it represents to the Association.
"It's appropriate to be aware of the best of times and worst of times,"
Mr. Sessler said. "I have concern that if we don't create an environment where
we can channel capital formation to earlier-stage companies, five or ten years
from now we'll be looking back and saying we thought it was the best of times,
but we will have missed important opportunities.
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1. The Brookings Institution, Seattle,
WA biotechnology regional profile, June 2002.
2. The Brookings Institution, Brookings Institution:
Signs of Life: The Growth of Biotechnology Centers in the U.S., (PDF file 2.6 mb), June 2002.
To learn more, visit investnorthwest.org
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