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Midwest Momentum
Stories from the Midwest Start-Up community.
Midwest Momentum
Eddie Pauline - Unveiling the Breakthroughs in Ohio's Biotech Ecosystem
Get ready to unlock the potential of Ohio's biotech landscape with Eddie Pauline, the beacon of Ohio Life Sciences, who joins us to share a year's worth of transformative moments and insights. We're getting a front-row seat to the breakthroughs reshaping the industry—like legislative wins of Duchenne's Muscular Dystrophy inclusion in newborn screening. Plus, we're celebrating the collaborative efforts ensuring the vibrancy of Ohio's life sciences workforce, laying out the welcome mat for top-tier talent to thrive in the Buckeye State.
This journey with Eddie isn't just about applauding the headliners of Ohio biotech; it's an exploration of the undercurrents that power success. We spotlight the industry pacesetters and the smaller powerhouses that are breaking the glass ceiling with FDA approvals and pioneering medical devices. The conversation also navigates the challenges companies face and the strategies that are turning those obstacles into opportunities. This episode is your chance to understand the intricate dance of advocacy, policy, and innovation that's catapulting Ohio to the forefront of the life sciences sector.
Time to hustle America, Roll up our sleeves and make dreams happen. Midwest Momentum brings you stories of CEOs, startups, product development and founders doing whatever it takes to make their big idea happen. Here's Midwest Momentum host Michelle Gatchel. Michelle Gatchel.
Speaker 2:So here we are, and we are at the end of 2023 and I asked Eddie Pauline to come back from Ohio Life Sciences just to talk about the year that was and what we have to look forward to, and, eddie, thanks so much for joining me.
Speaker 3:Well, happy to be here again. I am getting over a little bit of some kind of cough, so I apologize. I feel like I'm a little raspy today. It's really from all of the excitement occurring at Ohio Life Sciences.
Speaker 2:Yeah.
Speaker 3:The reason for the raspy voice.
Speaker 2:Well, for people that don't know what Ohio Life Sciences is, let's start by just telling us what that is.
Speaker 3:Sure, sure. We are the trade association, the industry association for the life science and biotech community here in the state of Ohio. We pitch ourselves as an organization that convenes the industry, that advocates for the industry and tries to accelerate the growth of the industry. Companies, institutions, professional services firms join the association. You join because you have an interest in the overall health of the industry and you need your association to help support kind of those broad issues and opportunities that you believe may either positively impact the growth of the industry or negatively impact it.
Speaker 3:So over the last year we have really firmed up some of the programming that we offer members and have made some real specific investments in our advocacy efforts, making sure that this industry is well represented at the state house, primarily to ensure that, as lawmakers are considering different policies, making different investments that they're thinking about the opportunity that the life sciences provides the state of Ohio.
Speaker 2:Yeah, and on a national level, what's your correlating association?
Speaker 3:So Ohio Life Sciences is part of something called the Council of State Bio Association, csba. So we there's 46 other state bio associations and we convene periodically to talk about best practices and in common issues.
Speaker 3:All of us are state affiliates of bio. At the international level, bio is our sort of national advocacy group for the industry. They do a lot of federal lobbying big organization. We also have a similar relationship with an organization called pharma, so they represent the pharmaceutical industry, and then we have a similar relationship with a national group called ADVEMED. These are all based in DC. Advemed represents medical devices.
Speaker 2:Okay, so let's talk about Ohio specific. Has there been legislation this year that you guys were really watching?
Speaker 3:Yeah, I mean I think that the our work at the state house is there's a wide range of things that we're working on. There's responding to new policy that is being introduced. So, for example, we were advocating to have a Duchenne's screening a newborn screening for Duchenne's muscular dystrophy, added to the newborn screening panel. It's state legislated. We were successful in helping get that done.
Speaker 2:Nice.
Speaker 3:The reason that's important is because Serepta Therapeutics, which is now based here in Ohio has a treatment for Duchenne's that we'd like to ensure is accessible to any newborns that may. Yeah for that that deadly.
Speaker 2:And where? Where are they located in Ohio?
Speaker 3:Serepta has a giant facility at Easton. Oh, okay 85,000 square foot research and development facility right there at Easton. They're actually expanding right now, adding another 54,000 square feet, so it's a nice job.
Speaker 2:Nice job, pretty big operation.
Speaker 3:There are a lot more jobs coming to Ohio. Great part about Serepta is that they they're actually headquartered in Boston, but the growth and opportunity that they see here in Ohio you know, I believe may eventually attract that company to be to be headquartered here. So we're excited to continue to see Serepta grow. Yeah, there's other policy issues right now floating in the state house. One that we're watching is a biomarker bill, so similar to the newborn screening making making biomarker testing sort of part of the standard of care where that would be a reimbursable insurance.
Speaker 3:We're watching a copay accumulator bill, so this is a practice where there's some disagreement between the payers and the PBMs about industry couponing and either sending that directly to patients or lowering the cost and other other types of situations. So closely watching that bill, trying to get that bill introduced for a forevote that didn't happen so we're gonna have to wait till 2024 to really campaign extra hard to to get that across the finish line we're part of a coalition of 85 other organizations that would like to see that, to see that past yeah, are there certain committees that you end up in?
Speaker 3:primarily health. Yeah is, the is a key committee for us and of course finance. So on that side. You know we're trying to introduce some proactively introduce some things, some policy that will help the industry. So, for example, as part of the operating budget last year, ohio Life Sciences received some funding for our workforce development effort.
Speaker 3:This is a comprehensive plan that will help strengthen the pipeline of life science workers in the state, introduce young people to the industry, making sure that they realize there's some lucrative career opportunities there, and help us recruit employees from from other states to come work here in Ohio. So we got that plan funded by the, by the state of Ohio, which which really is I mean, it's it's sort of a transformational type funding for this organization from the state, allowing us to be able to move forward with that initiative. We are also wanting to see the state of Ohio offer a SBIR matching grant. There's about 32 other states that match these these grants.
Speaker 3:So if you're a entrepreneur and you are successful in getting a grant, from the federal government and you live in Kentucky or Illinois or Michigan, you're gonna receive matching dollars from your state. This is a huge benefit to those young entrepreneurs who need every dollar they can get to grow their business yeah, here in Ohio we don't have that, so to be surrounded by states that do, puts us at a disadvantage. Yeah, you're a young entrepreneur why not do? That in Kentucky or West Virginia rather than here, where you're not getting at that match so we see that as an opportunity for Ohio to be more competitive yeah in our inner working on a bill that would that would make that a reality for us.
Speaker 2:I'm imagining a lot of industries would be interested in that yes yeah, we, we will.
Speaker 3:Our idea is that we would create a matching fund for winners of grants from the. Nih, which are typically more life science related yeah, see how that goes and and and grow from there. Ohio receives about it fluctuates but two to four million dollars in awards annually over the last ten years, so we think that this money could be really important to support that type of activity, but encourage more applications to be to be submitted okay.
Speaker 2:Do you already have to be established in Ohio, or could I have this great idea, thinking about moving Ohio and apply for it? You could do that, okay, yeah so we can bring more people in we.
Speaker 3:We should be able to attract more people with these types of things.
Speaker 2:Yes, okay, that's why we think that it's really important.
Speaker 3:Yeah, so the other thing we want to do is is try to figure out how do we, how do we encourage even more kind of basic life science research, support faculty and researchers. That are institutions that are dabbling in the life sciences? So we think having a fund again small, small fund, maybe a couple million dollars to award some Life science grants to people that need to get going. Yeah, and again giving them a head start, putting them in a situation when then it becomes easier to apply for bigger dollar awards is really important.
Speaker 3:So we feel, as the association we should, we should take on that responsibility.
Speaker 2:Would that be for state universities as well as private?
Speaker 3:Yeah, we'd have some discretion there, but any, any Research that we deem again life science related, biotech related, it could also come from individuals, we would be able to make that type of investment.
Speaker 2:Okay, that sounds very cool. Yeah, a lot of this is about money.
Speaker 3:The states that are winning in this industry are Investing yeah we just we need to see Ohio if we want to be competitive in this. We need to see Ohio continue to invest, so we're very appreciative of the Initial investment in the workforce development effort, but we see more opportunity to to make some strategic investments and some of the things that I was just talking about.
Speaker 2:So let's talk about some specific companies here in Ohio. Large too small, yeah, they are making impact right now.
Speaker 3:Yeah, yeah, we we've. We have a slew of them. You know our In central Ohio. We're particularly excited about the growth of our Gene and cell therapy community. Yeah a lot of the manufacturing facilities that have been that have emerged over the last couple years Are are doing. Great Many people may have seen the headline about forge biologics. Yeah, purchased by a Japanese company for $620 million, you know to start that company just a few years ago to having that type of Event occur is really impressive and the exciting thing is that that will only allow forge to continue to grow.
Speaker 3:So I'm excited to see what what those dollars will do to To expedite that growth and sure up that business model. We of course have andolin biosciences. That's a spin out of nationwide Children's Hospital Again another Contract development manufacturing organization. They just had a big win the other day where a company, big biotech called ultra genics has selected them to help manufacture a treatment for San Felipe disease.
Speaker 3:That oh no we did deadly rare rare disease condition. But having An Ohio company attract a brand like that to be doing business here is just very impressive. Yeah, amplify bio spin out of Patel again their new Albany 300,000 square foot facility. Continuing to raise money. And now? Have gotten into a Really interesting opportunity as a service, basically hoteling, creating a hoteling model for some of their available wetlap space.
Speaker 3:Oh, it's a huge, yeah, huge contribution to Helping grow the life sciences community here. So they may have a couple hundred thousand and not a couple hundred thousand, but Let me say thousands of square feet of wetlap space in that facility where people can come in and and in grow their companies.
Speaker 1:So those are.
Speaker 3:Those are three examples of some excitement here in In central Ohio on the smaller business size. We've had some really exciting updates from you know some companies, very small companies Clarematics in Versa which is doing some, some eye work. You know they're Achieving some so critical clinical trial approvals and results. That's exciting. Serepto therapeutics. I mentioned already, they had their big FDA approval for their Duchenne treatment.
Speaker 3:So we just see a lot of growth in the rare disease environment here Since an adi, with a trick, your medical device firm and enable injections again continuing to grow. Enable Just got a huge endorsement from the FDA. So their drug, their wearable drug, administration advice device is a Kind of a game changer in terms of drug delivery. You know, I think we'll see exciting things happen in that for that company in 2024 very cool.
Speaker 4:Yeah.
Speaker 3:Yeah.
Speaker 2:Png. They do anything bio.
Speaker 3:Png used to do more yeah. Not as much now but you know, perhaps perhaps I could change. Yeah, if they decide to yeah but I I think I mean it's a, it's an interesting point. I think an opportunity here in Ohio is to continue to figure out how we Get our big anchor institutions to recognize the importance of investing in this really exciting industry. Yeah, you know. For example, you have Kroger with their Kroger Health. Kroger Health is getting into the clinical trial business.
Speaker 2:That's huge.
Speaker 3:So you already have a density of expertise in Southwest Ohio on clinical research organizations MedPACE, of course which is growing like gangbusters. They're going to be hiring 1,500 people in the next five years.
Speaker 2:Nice.
Speaker 3:Cincinnati location. Cti continues to grow, so as Kroger now gets into this clinical trial business, it's only going to draw more attention to sort of the why Ohio story. Yeah, what's going on in Ohio and we're excited to do our part to drive awareness to that and sort of amplify these success stories.
Speaker 2:Yeah, I love the diversifying of companies because it's hard to get the money to start a bio type of a business Correct. And if you already have a nice egg, if you will, to help you get started in that area, all the more better and faster.
Speaker 3:Yeah, I mean biotech is it costs more to build a biotech company. It takes longer and I think, traditionally Ohio. It's just a new thing for Ohio.
Speaker 2:Yeah.
Speaker 3:Ohio is a little bit more comfortable, used to investing in real estate and tech and some other things where the startup costs may be a little less, the time to return is shorter.
Speaker 2:Yeah.
Speaker 3:Biotech's different, and the great part about what's happening here, though, is that we've had more success stories. You can point to Mike Triplett's company, myonexus that was bought by. So you got a spin out from children's Myonexus, mike and his team grew. The company Myonexus was just purchased by Serrepta.
Speaker 2:Oh, Ohio still.
Speaker 3:Dr Luis Rodino-Claypak at Myonexus said hey, I'm not moving to.
Speaker 3:Boston. So that's what drew Serrepta to Ohio. So you had a great exit for the founders and investors of Myonexus who kept that money here. I mean, mike has now started a couple more biotechs Serrepta's here now. That ripple effect is huge. It's huge and I think there's more opportunities to create that Cover my Meds very similar. We'll sort of count that as a life science play, a digital health play. But Cover my Meds was bought by McKesson. I've shared this story a lot but we convened a meeting of some digital health leaders probably over a year ago now maybe 10, 12 people in the room. Half of them used to work at Cover my Meds.
Speaker 3:So this ripple effect, this flywheel effect, that occurs is performed by variousDYR 했습니다 dogs. It's really important to driving, driving growth.
Speaker 2:Yeah, what states are known for biotech right now?
Speaker 3:I mean, I think you know the capitals of biotech would be you know, I'll say cities okay. Boston, you know, san Diego, san Francisco, Go back to state, state level. North Carolina with our TP. A lot of great activity there. Boston, or Pittsburgh, has grown its biotech community. So we have some work to do to Continue to compete with with those locations to our colleges foster majors to go that way out route increasingly yeah, and and that is evident in the, and that's been incentivized by Jobs Ohio through its investment in the innovation districts.
Speaker 3:So, Ohio has three innovation districts one in Cleveland, columbus and Cincinnati. All of the anchor institutions in these innovation districts are our health and life science companies and institutions yeah. Cleveland Clinic, ohio State, each one children, cincinnati children's. So all of the innovation districts, in our view, have a health and life science theme to them and as part of that investment the Jobs Ohio made, it's incentivizing the universities to develop a stronger pipeline of life science talent and hire faculty hire researchers that are Life science oriented yeah, so I think, that investment will Get even more traction in the next year or so we're gonna do our part to help market that, that opportunity and help people understand what these innovation districts really are.
Speaker 3:Mm-hmm look like. What's the opportunity there? Our organization will hopefully be Living in one of these innovation districts or have a footprint in all three of them at some point in 2024. So I think that that innovation district Investment is gonna create Even more energy around this, this really important industry.
Speaker 2:Yeah, I'm just curious. You mentioned the fact that researchers you could bring you know companies can hire these people or or fostering them. Is there, are there collaborations with other states on specific biotech, like If that makes sense, right, um?
Speaker 3:I mean sure, well, yeah, I mean I, it's pretty competitive is it mm-hmm?
Speaker 2:It's pretty competitive, okay, yeah so we're gonna keep our ducks right here in a row.
Speaker 3:I think we want to see. We want to see more the the our research institutions, the universities have, our children's hospitals have really strong pipelines of new life science tech. It's really critical that when that tech is ready to spin out, do we have the right mix of funding, talent in space For those companies to grow here in Ohio. Right now. We need to do better. Yeah, because right now what happens is that these things Spin out and if they cannot quickly Solve for, any one of those issues.
Speaker 2:They're gonna go oh next door, where they are.
Speaker 3:Yeah, go to Boston. They're gonna go chase money in Sanford's it wherever New York. Chicago. So, and we've got lots of examples of People leave missed opportunities. Yeah, companies that have grown and turned into really successful biotechs that Started at nationwide children's or clinic or, as it were. So you know, if we want to be All that, we can be here, we need to ensure that we've got those boxes checked Can.
Speaker 1:I raise money here, Can I find the?
Speaker 3:people that can lead my company here and cannot find space to grow Again, we're doing a little bit better but more work to be done. Yeah this is where we, as an association, want to help Continue to educate the state of Ohio on why this is important and increasingly make sure that we, as a state, as the three C's. Are out there across the country, Making people aware of what's, of what's here.
Speaker 2:You know this is not this is a success stories that are already happening Exactly.
Speaker 3:Yeah, the Midwest modesty is not necessarily helpful when it comes to what we're trying to do right now right right. So we want to talk about Midwest momentum.
Speaker 2:Yes, not.
Speaker 3:Midwest or modesty. Yes you know, we as an association will have a big pavilion, for example, at the bio international convention. Our teams headed out with with some colleagues at Jobs Ohio to the JPM healthcare conference to talk about what opportunities exist here. We've been at the Alliance for Genitive Medicines meeting on the Mesa talking about bragging about Ohio. So the education, internally and externally is is really important right now, you know what is? Our unique. What are our unique assets and capabilities that will attract people here is telling a stronger story about that.
Speaker 2:I Love this. We can tell stories and podcasting, of course you know, but so I'm curious. One last kind of storyline question is with all of the Potential that we have here in Ohio, are there specific I mean I know the, the industries that you mentioned you guys cover, but for next year, are there specific industries you really are targeting to get here?
Speaker 3:Yeah, I mean, I think what we? We want to continue to Develop our story around gene and cell therapy. I think you'll see us spend more time talking about our medical device expertise across the state. If you look at Cincinnati, for example, with Ethicon, atricure, naval injections, teleflexes are now you've got a really interesting density of device manufacturers that.
Speaker 4:That they're there for a reason.
Speaker 3:I mean they're there because there's some really smart people and good talent in the in the region that you know could go to head-to-head with any other business out there. There was a statewide coalition led by nationwide Children's Hospital and Ohio State. That helped land a really cool.
Speaker 3:Federal opportunity called a it's. It's called the Midwest pediatric device consortium, and this will establish Ohio institutions as a resource for Entrepreneurs and vendors across the country to come here and help develop their their medical device. So it's a seven million dollar grant that will attract even more money in position Ohio experts as people that can help Help get more pediatric devices to market. Nice, such a huge opportunity for us. Anytime you win federal attention like that it's a good thing.
Speaker 3:And we believe that can lead to other other interesting opportunities for the medical device industry here.
Speaker 2:Awesome. Well gosh, we have talked about so much and I'm really excited about Life sciences here in Ohio.
Speaker 3:Yeah.
Speaker 2:I think the story is awesome and it's just gonna keep growing.
Speaker 3:Yeah, I, I agree. We're gonna be continuing to do our part to again advocate for convene, promote the industry and you know hoping that 2024 is a big year for for all the industries that we represent.
Speaker 2:Yeah Well, thanks for joining me.
Speaker 3:Absolutely appreciate it.
Speaker 1:Thanks for listening to Midwest momentum on your favorite podcast site and great radio stations across Ohio like WWCD 92.9 in Franklin looking at Delaware counties, and WDLR Herden, delaware Union and Marion counties.
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