Indiana life sciences on ‘trajectory of change’ over 25 years
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowAs Inside INdiana Business marks 25 years on television, we’re looking back at progress made in the Indiana economy, including sectors like the life sciences, an industry that has grown from around $32 billion in value to more than $80 billion.
Dr. Alan Palkowitz, president and CEO of the Indiana Biosciences Research Institute in Indianapolis, says while the state had major players such as Eli Lilly and Co. and Roche Diagnostics, as well as a strong university research presence 25 years ago, the sector hadn’t coalesced into the biotech ecosystem seen today.
Palkowitz told Business of Health Reporter Kylie Veleta developments like the 16 Tech Innovation District have changed a once listless industry.
“Going back 20 years, none of us really imagined the 16 Tech environment and what its purpose would be,” Palkowitz said. “But it wasn’t clear that there was a much interaction or even a lot of concept of creating a biotech corridor.”
16 Tech, which opened in 2020, brings together academic institutions, industry, government and community, and has become an indictor of how the progress and all four of those areas has grown the life sciences.
Palkowitz describes the last 25 years as a “trajectory of change” beyond just the big players.
“A large number of small companies have emerged. It’s attracted venture investment. We’ve seen the growth of talent base that’s supported those companies throughout the state,” he said. “Also, I think, what’s changed is universities. I think we’re seeing a new generation of entrepreneurial-minded researchers that are thinking about, ‘How do I take my research and actually apply it and move it forward towards patient impact?'”
Palkowitz believes the vision of a handful of people in the creation of initiatives like BioCrossroads in 2002 changed the destiny of Indiana’s life sciences sector.
In 2001, there were only four venture capital transactions in the life sciences for a total of $14 million. In 2022, 37 companies secured nearly $620 million in VC investment. Another major indicator of growth is university R&D now approaches the $1 billion mark, triple the amount from 2001.
“The system is primed, if you will,” Palkowitz said. “If we project forward, and all the pieces come together, I think there is no reason whatsoever that Indiana can stand shoulder to shoulder on a relative basis with the East and West Coast in the years to come. I think all the ingredients are here.”