Biotech Business Survey shows benefits of TDP awards.

Biotechnology Industry Organization Feb 15, 2011

Press Release Summary:

According to survey of CEOs of small biotech firms that received Therapeutic Discovery Project (TDP) awards last fall, TDP is important to viability and jobs. Survey specifically found that 4 of 5 CEOs say TDP is important to support survivability and viability of their companies; TDP funds have helped to create, on average, 6 jobs and sustain 7 jobs per company; and CEOs say more funding is needed to complete breakthrough projects and developments.

Original Press Release:

New BIO Survey: U.S. Jobs, Patients, Competitiveness Benefitting from Therapeutic Discovery Awards

WASHINGTON -- The Therapeutic Discovery Project (TDP) is important to the viability of the companies receiving a TDP award and allowed these small businesses to create or sustain jobs, according to a new survey of CEOs of small biotech firms that received Therapeutic Discovery Project awards last fall.

The survey, conducted by noted research firm Penn Schoen Berland and sponsored by the Biotechnology Industry Organization found:

Four out of five CEOs say the TDP is important to support the survivability and viability of their companies.

On average the companies that responded to the survey have 22 employees. TDP funds helped to create on average six jobs and sustain seven jobs per company.

Many CEOs say that much more funding is needed to complete breakthrough projects and developments.

Even though CEOs think more funding is necessary, they do believe that the program awards help address a spectrum of costly disorders and diseases.

About 30 percent of the CEOs of these small companies that received a TDP award reported that they have been approached to move their operations offshore. Nearly half of companies say they are more likely to keep their operations in the U.S. since the TDP award announcement.

"The Therapeutic Discovery Project awards are fostering U.S. innovation, creating and saving jobs, and helping companies accelerate progress toward new breakthroughs," said Jim Greenwood, president and CEO of the Biotechnology Industry Organization (BIO). "With the TDP, biotech companies are answering President Obama's call for investing in innovation. To maintain and strengthen our global leadership in the life sciences, this is precisely the kind of investment that should be renewed and expanded."

Greenwood was joined by Russ Herndon, president and CEO of Hydra Biosciences, a TDP awardee. Hydra Biosciences received nearly $750,000 to develop novel compounds to treat pain, inflammation, and pulmonary diseases using its expertise in Transient Receptor Potential Ion Channels.

For the full list of TDP awardees, go to http://www.irs.gov/businesses/small/article/0,,id=228690,00.html

For the results of the survey, go to http://www.bio.org/ecs/therapeutic/TDP_post_award_survey.pdf

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