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Health care VC hits new Indiana low in 2011

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Well, that was a dud.

Last year turned out to be one of the worst in recent Indiana history for health care venture capital investment, according to data compiled by BioEnterprises, a life sciences business development group based in Cleveland.

Nine Hoosier companies landed money last year, the same as in 2010. But the total amount landed was just $14.1 million, the lowest amount of venture capital flowing to Indiana’s health care sector since BioEnterprises began tracking such deals in 2005.

In 2010, Indiana companies attracted $25.1 million and, in 2007—the peak year for the entire region—the state pulled in a whopping $135.6 million.

“Midwest biotechs are suffering from the national venture industry's shift away from early-stage biotech investing,” said Baiju Shah, CEO of BioEnterprise, in a prepared statement. But investors are putting more money into health information technology companies, along with the Midwest’s typical staple: medical-device makers.

“Venture investors are drawn by both providers and payers searching for health IT applications that can improve effectiveness and efficiency of their enterprises," Shah said.

Across all 11 states BioEnterprises tracks, life sciences venture investing rose 10 percent last year, to nearly $810 million. A total of 178 companies raised money, up from 161 the year before.

Indiana wasn’t the only area feeling pain . Michigan and western Pennsylvania both suffered big declines in life sciences venture funding, with Michigan posting its lowest total since 2005 and western Pennsylvania posting its lowest total since 2007.

Minnesota led all states with $223 million in venture investments, flowing mainly to the state’s bevy of medical-device firms. Missouri also saw a big increase last year in venture investing.

Indiana’s totals may be dampened because one of the nine companies receiving money, BioCritica Inc., did not disclose the amount it received. However, the point may be somewhat moot. BioCritica’s business plan—to reinvigorate Eli Lilly and Co.’s sepsis drug Xigris—fell flat when a new clinical trial of the drug caused Lilly to pull it from the market.

BioCritica CEO David Broecker has since joined Indianapolis-based Harlan Laboratories Inc.

The other Indiana companies that received money last year included:

— Indianapolis-based Wellfount Corp., $6 million from Michigan-based Arboretum Ventures

— Fort Wayne-based BioPoly LLC, a subsidiary of Schwartz Biomedical, $2.5 million from undisclosed investors

— Indianapolis-based FAST Diagnostics, $2.25 million from angel investors

— Carmel-based Dormir Inc., $2 million from undisclosed investors

— Brownsburg-based Biologics Modular, $750,000 from undisclosed investors

— Indianapolis-based Symbios Holdings, $300,000 from undisclosed investors

— West Lafayette-based BioSciences Vaccines, $150,000 from Purdue University’s Emerging Innovations Fund

— Indianapolis-based Aarden Pharmaceuticals, $100,000 from the Indiana Seed Fund, overseen by Indianapolis-based BioCrossroads

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  1. Now if he'd just stay there...

  2. Daniel - what about the many US citizens who do NOT follow what the Bible teaches? The Hindus, Jews, Muslims and others who are all American citizens entitled to all rights as Americans?? This issue has NOTHING to do with "What the Bible says..." Keep all Churches separate from State! Pence's ongoing idiocy continues to make Indiana look like a backwards, homophobic state in the eyes of our nation. Can't we move on to bigger issues - like educating our kids?

  3. 1. IBJ should link to the referenced report. We are in the age of electronic media...not sharing information is lazy. Here is a link http://www.in.gov/gov/files/Blue_Ribbon_Panel_Report_July_9_2014.pdf 2. The article should provide more clarity about the make-up of this panel. The commenters are making this item out to be partisan, it does not appear the panel is partisan. Here is a list of the panel which appears to be balanced with different SME to add different perspectives http://www.in.gov/activecalendar/EventList.aspx?view=EventDetails&eventidn=138116?formation_id=189603 3. It suggests a by-pass, I do not see where this report suggests another "loop". 4. Henry, based on your kneejerk reaction, we would be better off if you moved to another state unless your post was meant as sarcasm in which case I say Well Done. 5. The article and report actually indicates need to improve rail and port infrastructure in direct contradiction to Shayla commentary. Specifically, recommendation is to consider passenger rail projects... 6. People have a voice with their elected officials. These are suggestions and do not represent "crony capitalism", etc. The report needs to be analyzed and the legislature can decide on priorities and spending. Don't like it, then vote in a new legislature but quit artificially creating issues where there are none! People need to sift through the politics and provide constructive criticism to the process rather than making uninformed comments in a public forum based on misinformation. IBJ should work harder to correct the record in these forums when blatant errors or misrepresentations are made.

  4. Joe ... Marriage is defined in the Bible ... it is mentioned in the Bible often. Marriage is not mentioned once in the US or Indiana Constitution ...

  5. Daniel - Educate me please: what does the Bible have to do with laws? If the government wasn't in the business of marriage to begin with, then it wouldn't have to "define" marriage at all. Marriage could be left as a personal, religious, or otherwise unregulated action, with no ties to taxes, legal status, etc. Then people could marry whomever they want, and all this silliness would go away. Remember to vote Libertarian in November.

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