Market Information
United States

Biotechnology Sector Profile:
USA (New England)

May 2002

Christine Sarkisian
Business Development Officer
Canadian Consulate General
3 Copley Place, Suite 400
Boston, MA 02116
Tel.: (617) 262-3760
Fax: (617) 262-3415
E-mail: Boston.Commerce@dfait-maeci.gc.ca
Internet: http://www.boston.gc.ca

Market Overview

The Canadian Consulate General in Boston covers the five New England States of Maine, Massachusetts, New Hampshire, Rhode Island and Vermont and the islands of St. Pierre et Miquelon. In New England, life sciences is a key industry sector, as is information technology. The largest state in terms of population and economic infrastructure is Massachusetts, where health-related services (including biotechnology and medical devices) are expected to be one of the thriving industries for the next several years. Not only is the industry group fundamentally non-cyclical, but Massachusetts is also the nation's top beneficiary of National Institutes of Health (NIH) funding-reaching over $2.4 billion1 in 2001 alone. Massachusetts remains one of the most important innovation centres in the U.S. due to the presence of top learning institutions and of key venture-capital (VC) funds. It also boasts the largest concentration of biotechnology companies in the world, with more than 300 companies.

Opportunities

In terms of life sciences prospects, the development and commercialization of new and innovative drugs remain the focus of the region's biotechnology industry. Massachusetts receives a high percentage of federal funds for research, and is home to many of this nation's leading research centres and hospitals. Opportunities exist for partnerships with large, medium and small firms conducting research primarily in the areas of genomics, proteomics and development of therapeutics, diagnostics and vaccines.

With the high concentration of venture funds in the region, Canadian companies can also seek venture funding in the region, while being aware that some venture capitalists may have suffered losses over the last months that have shaken their exuberance and made them more cautious. They are now asking for more equity and solid near-future prospects of revenues. Many local VC firms have now ventured into the Canadian market and discovered excellent reasons to invest.

Market Access Considerations

There are no barriers to access to potential research, development, or marketing and distribution partners. Companies planning to sell products in the U.S. should research and plan for necessary approvals of the U.S. Food and Drug Administration (USDA). Approaching the VC market is best accomplished through well-connected intermediaries.

Major Competition

Companies from around the world look to the Boston area as a hub of biotechnology expertise, research and funding. Venture capitalists are looking for the newest ideas in biotechnology, regardless of where they originate.

Other Useful Information Sources/Web Sites

Massachusetts Biotechnology Council: http://www.massbio.org

International Northeast Biotechnology Corridor: http://www.NEBioCorridor.org

Massachusetts Medical Device Industry Council: http://www.massmedic.com

For detailed market reports about this sector, please visit http://www.infoexport.gc.ca.