The biomedical industry in Northeast Ohio is healthy and growing.
According to a recent report released by local nonprofits BioEnterprise and Team Northeast Ohio, the biomedical industry in Northeast Ohio grew 59% between 2000 and 2016 to become a $5.6 billion industry.
As recently reported in Crain’s Cleveland Business and other area publications, BioEnterprise President and CEO Aram Nerpouni says the growth comes not only from acquisition activity, but also from an increase in the number of companies deciding to remain in Northeast Ohio to grow their biomedical businesses.
This is a marked departure from the region’s long dependence on other industries – notably manufacturing, automotive and steel – and a promising sign of further investment and diversification in medical devices, pharmaceuticals and health care technology. Funding in health care IT and software and services companies more than doubled between 2015 and 2016. In fact, Northeast Ohio health care startup businesses raised almost $200 million in investments last year, according to the BioEnterprise Midwest Healthcare Growth Capital Report.
At Skoda Minotti we have also noticed the increase in biotech activity. There has been a marked increase in financial compliance inquiries, which is great news for the industry. Financial compliance requirements are driven by federal and state grants to these organizations, or by investor reporting requirements.
Further, we have noted an improvement in our biotech clients’ understanding of available grants, and the quality of business plans for fundraising. The resurgence – or at least notoriety – of Northeast Ohio sports, the arts, universities, the Convention Center (“Med Mart”), business incubators and housing have made this region a destination for entrepreneurs. And just as important, as Mr. Nerpouni suggests, is the retention of valuable resources—human capital, investment dollars and intellectual property.
We may be biased in our glorification of the business environment in Northeast Ohio, but numbers don’t lie. We see our client base in Life Sciences and Innovation expanding both in number of clients and the growth of those clients. We are optimistic that ideas and dollars will continue to grow in our region.
Skoda Minotti provides a wide range of services to the unique biotechnology industry. Our Life Sciences & Innovation experts work with both private and public companies – ranging from start-up to well-established businesses – in finding adequate capital investments or funding opportunities; managing increasing regulatory compliance requirements; satisfying investor demands; and identifying markets for products and services.
For more information, please contact Paul Etzler, CPA, CGMA, at email@example.com or 440-449-6800.