Tax strategies 12/20/2024

Key insights
The IRS has proposed a change to Form 6765 — the form used to claim the R&D tax credit — that would introduce a new layer of complexity and require detailed project information to substantiate claims.
Although the current changes are still in proposed form, the IRS is expected to finalize them before the start of the upcoming tax year 2024 filing season.
While the increased reporting obligations on Form 6765 are new and will surely require additional time to comply with, such information should always be part of a well-documented R&D tax credit study.
Are you up on the latest R&D tax credit changes?

Consult an Advisor

Despite the federal research and development (R&D) tax credit being well known for its complexity and subjectivity, the tax return reporting requirements have been surprisingly straightforward.

For as long as most practitioners can remember, Form 6765, Credit for Increasing Research Activities, has been less than two full pages and solely focused on the quantitative aspects of the credit claim for originally filed tax returns.

Proposed changes to Form 6765, however, will significantly change R&D tax credit reporting beginning with tax year 2024.

What’s changing with R&D tax credit reporting?
Increased documentation requirements for R&D tax credits started to swell in late 2021 when the IRS announced new procedures for R&D refund claims on amended tax returns. This was viewed by many as the agency’s opening salvo to ferret out erroneous and aggressive R&D tax credit claims through heightened pre-audit documentation. Following this shift, changes to Form 6765 to reflect enhanced documentation procedures for current year claims were all but assured.

The IRS first proposed changes to Form 6765 in September 2023 when it also sought comments from taxpayers. A revised form was then released in June 2024. While the new draft form walked back some of the more onerous requirements from round one, it still represents a fundamental change in how taxpayers must document and report their R&D credits from a qualitative and quantitative perspective.

New Section G reporting
The most notable addition to Form 6765 is Section G, which requires several categories of info pertaining to the taxpayer’s business components (i.e., the products, processes, etc. for which the credit is being claimed). These include:

The name or identifier of the business component;
Business component type;
Description of the information sought to be discovered with respect to each business component;
The amount of direct research, supervision, and support wages for each business component; and
The amount of supply, leased computing, and contract research expense for each business component.
In response to feedback, the IRS reduced the number of business components that must be reported on Section G. As currently proposed, taxpayers should report 80% of their total qualified research expenses (QREs) in descending order per business component, but no more than 50 business components in total. However, taxpayers will need to list the total number of business components being claimed on Line 37 of Section E.

Section G transitional relief and exemptions
Section G will be optional for all filers for tax year 2024. The IRS says this will allow taxpayers time to transition to the Section G format. Thereafter, the new section will be mandatory, except in limited circumstances.

To reduce administrative burdens for certain taxpayers, the IRS will exempt the following from Section G reporting:

Qualified small business taxpayers (defined under IRC Section 41(h)(1)&(2)) making a payroll credit election for their R&D tax credit, and
Taxpayers that have (i) total QREs not exceeding $1.5 million, (ii) gross receipts not exceeding $50 million, and (iii) claimed their R&D credit on an originally filed return.
Other changes
Other important additions and questions on the draft form include:

A separate line item specifically for officer wages being claimed,
Whether the taxpayer acquired or disposed of a major portion of a trade or business during the tax year, and
Whether any portion of QREs were determined using the IRS ASC 730 Directive.
What’s next with R&D tax credit reporting and how to prepare?
Although the current changes are still in proposed form, the IRS is expected to finalize them before the start of the upcoming tax year 2024 filing season. Additionally, the IRS will need to issue revised instructions for Form 6765 to reflect the new changes.

Section G will require the most effort to complete for taxpayers subject to it. For companies that choose not complete Section G for tax year 2024, they should plan for the changes and begin compiling the required information since it’ll be mandatory for tax year 2025. While the increased reporting obligations on Form 6765 are new and will surely require additional time to comply with, such information should always be part of a well-documented R&D tax credit study.

How CLA can help with R&D tax credit reporting
CLA’s R&D Tax team works with companies of all sizes to document and claim their R&D tax credits. Contact your CLA professional to learn how we can assist you navigate and implement the new Form 6765 reporting requirements while enhancing your overall credit benefit.

Grow Florida’s Health Care Workforce

Legislation Reduces Regulatory Hurdles and Makes Key Investments to Increase Access and Incentivize Innovation

Tallahassee–Florida Senate President Kathleen Passidomo (R-Naples) joined Senator Colleen

Burton (R-Lakeland), Chair of the Senate Committee on Health Policy and Senator Gayle Harrell

(R-Stuart), Chair of the Senate Appropriations Committee on Health and Human Services, to

announce the Senate’s Live Healthy proposal. The Live Healthy package of legislation for the

2024 Legislative Session is designed to grow Florida’s health care workforce, increase access,

and incentivize innovation.

“Access to health care is important at every phase of life. Insurance does not guarantee access, as

even Floridians with great insurance face barriers to care. Live Healthy is a robust package of

policy enhancements and strategic investments that will help make sure Florida’s health care

workforce is growing at the same pace as the rest of our great state,” said President Passidomo.

“Live Healthy will expand Florida’s health care workforce with new opportunities for education,

training and retention. This includes enhancing partnerships between our hospitals and Florida

colleges and universities that train health care workers, as well as more residency slots and

creative loan repayment options that drive providers to underserved areas. We want to make sure

our medical school graduates stay in Florida, and also attract more out-of-state residents – not

only for their residencies, but to build their lives and medical practices right here in our

communities,” continued President Passidomo. “We are also funding provider increases that

incentivize our health care workers to continue serving in needed fields like mental health, labor

and delivery, and helping Floridians with disabilities.”

“In recent years, Florida laws have been updated to ensure health care practitioners are able to

serve patients to the highest extent of their training. We can never replace the critical role of a

physician or specialist; however, medicine – like any other industry – evolves and innovates.

Live Healthy maintains rigorous training requirements, but removes regulatory barriers that can

get in the way of quality care for patients,” said Senator Burton. “Through Live Healthy, we are

expanding sites for clinical training to include more rural, remote, or other locations difficult to

access, expanding the role of medical school graduates who have passed the licensing exam and

are waiting to be placed in a residency, and reducing barriers for autonomous nurse midwives,

while ensuring quality care for mothers and babies.”

“Free-market principles show us that the private sector can innovate in ways government could

never imagine. What government can do is facilitate the exploration and implementation of

innovative technologies and delivery models that increase efficiency, reduce strain on the health

care workforce, improve patient outcomes, expand public access to care, and reduce costs for

patients and taxpayers without impacting the quality of patient care,” said Senator Harrell. “Our

Health Care Innovation Council will convene experts on the delivery of health care to examine

solutions to improve the delivery and quality of health care in our state and develop a loan

program to support implementation of innovative solutions.”

“We know that our hospital emergency rooms are the most expensive real estate in our state.

Live Healthy will help streamline emergency departments by creating partnerships with

Community Health Centers and other primary care settings so care that is urgently needed, but

not life threatening, can be handled outside of the hospital emergency room in a more efficient

and appropriate setting,” said President Passidomo. “Live Healthy also expands access to

preventative health screenings to ensure early diagnosis and better management of chronic

disease for all Floridians.”

Full content found here: https://flsenate.gov/PublishedContent/Offices/2022-2024/President/Documents/LiveHealthyProposaltoGrowFloridasHealthCareWorkforce.pdf

November 13, 2023 in BME News

The J. Crayton Pruitt Family Department of Biomedical Engineering has achieved its highest-ever ranking in the latest U.S. News & World Report’s annual evaluation of the nation’s leading undergraduate biomedical engineering programs.

UF BME has ascended to the No. 10 position, a notable improvement from its No. 13 ranking in 2022 among public programs. This elevated ranking underscores the widespread respect that department chairs across the country hold for UF’s biomedical engineering program.

“We take immense pride in being recognized by BME leaders as one of the premier undergraduate programs in the United States,” expressed Dr. Lee Murfee, Associate Professor & Associate Chair for Undergraduate Studies. “It’s incredibly satisfying to focus on our students and to have this focus recognized by others.”

Dr. Sarah Furtney, Instructional Associate Professor, Undergraduate Coordinator & J. Crayton Pruitt Family Term Fellow, attributes this surge in rankings to a steadfast commitment to students, research, community partnerships, and engaged alums. “Our success is rooted in a proactive, inclusive mindset that permeates everything we do,” she emphasized.

The department focuses on delivering exceptional learning experiences, offering robust career development opportunities, and increasing interactions with its esteemed faculty.

“It’s truly gratifying to be acknowledged among our peer institutions for the remarkable accomplishments emerging from our department,” expressed Department Chair Dr. Cherie Stabler. “Our growing reputation is a testament to the caliber of our faculty, students, and staff.”

Furthermore, Murfee credits the rise of industry and clinical innovation opportunities for students as instrumental in elevating the impact of the department. Students benefit from proximity to experts in ten engineering departments and collaborations with the Colleges of Medicine, Dentistry, Veterinary, and Pharmacy, along with the state’s top-ranked hospitals, all within a short walking distance.

Today, the Biden-Harris Administration is releasing a new action plan to rapidly and equitably expand biotechnology and biomanufacturing education and job training programs in the United States. The action plan accompanies the second round of the Administration’s Investing in America tour, where President Biden, Vice President Harris, First Lady Jill Biden, Cabinet members, and Senior Administration Officials will visit communities benefitting from the historic levels of private sector investments mobilized by the President’s Investing in America Agenda. Since the beginning of the Biden-Harris Administration, private companies have announced $470 billion in manufacturing and clean energy investments, including in biomanufacturing.

Biomanufacturing—the use of biological systems to produce goods and services at commercial scale—is a critical aspect of advanced manufacturing that can drive new, sustainable alternatives across industries. These innovations can unlock new solutions in health, climate change, clean energy, food security, agriculture, supply chain resilience, and national and economic security. America is a global leader in biomanufacturing. The action plan will help propel continued investment in the nation’s bioeconomy and maintain America’s leadership in this sector by preparing more Americans for these jobs—many of which do not require a four-year college degree—and build a diverse pipeline that includes women, people of color, people living in rural communities, and others underrepresented in emerging fields.

Last September, as part of his Investing in America agenda, the President signed an Executive Order to ensure the United States is harnessing the full potential of biotechnology and biomanufacturing to create good-paying jobs at home, build stronger supply chains, and deliver results for the American people. Bolstering, expanding and diversifying the nation’s bioworkforce is critical to this work.

The action plan being announced today builds on the steps the Administration has already announced to strengthen America’s bioworkforce. As part of the Investing in America Advanced Manufacturing Workforce Sprint announced in May, the Administration is working with employers, unions, and other stakeholders—such as the Manufacturing USA Institutes—to expand pre-apprenticeships, Registered Apprenticeships, and career and technical education (CTE) programs at the secondary and postsecondary level for biomanufacturing occupations.

The Administration is already beginning to implement today’s action plan. This includes the following:

• The National Science Foundation (NSF), the Department of Energy, and the Department of Agriculture will take action to expand partnerships with Historically Black Colleges and Universities (HBCUs), Tribal Colleges and Universities (TCUs), and Minority Serving Institutions (MSIs).
• The Department of Education will create cross-sector collaborations through the Unlocking Career Success Initiative and launch a professional learning series focused on bioworkforce needs and role of K-12 schools and postsecondary institution.
• The Department of Labor (DOL) is prioritizing advanced manufacturing—including biomanufacturing—in key grant programs, such as the State Apprenticeship Expansion Formula grant.
• The Department of Commerce (DOC) will support a National Institute for Innovation in Manufacturing Biopharmaceuticals pilot program designed to attract high school students into biopharmaceutical manufacturing career pathways.
• NSF, in partnership with DOL, DOC, and other agencies, will convene a forum to build alignment on recognized competency models, development of new competency models where needed, and exploration of credentialing mechanisms for the bioworkforce.

###

June 22, 2023 01:23 PM Eastern Daylight Time

TAMPA, Fla.--(BUSINESS WIRE)--Men’s health issues continue to be a concern in the United States, where men generally live six years fewer than women. The leading cause of death of men in the US is heart disease¹ and one of the biggest contributing factors to heart disease is hypertension, which affects a high percentage of men (50%) in the US².

During Men’s Health Month, Smart Meter, the leading supplier of devices and data for the remote patient monitoring (RPM) sector, would like to encourage all men to take control of their health, especially those with high blood pressure. In a recent survey of more than 200 people who suffer from hypertension, it revealed that a majority (53%) would test their blood pressure more consistently if they knew the reading was being sent to their physician.

According to American Heart Association research³, “real-time monitoring programs can reduce systolic blood pressure (SBP) and diastolic blood pressure (DBP) significantly, compared to traditional self-monitoring. This can lower the incidence of hypertension-related acute events, cutting costs of hospital stays and ER visits.”

“Any resource that aids or encourages hypertension patients to self monitor is incredibly valuable in the efforts to control the disease,” said Dr. Bill Lewis, a leading telehealth consultant. “By using a remote patient monitoring (RPM) system with cellular-enabled devices that send readings immediately to a provider, patients know their test results are being viewed and tracked regularly. In one study of home monitoring⁴, 25% of patients were able to stop using hypertensive drugs.”

With Smart Meter’s proprietary cellular-connected iBloodPressure^® systems, the measurement is transmitted instantly to the patient’s physician via our exclusive AT&T IoT private data network that ensures reliability, security, and privacy every time. The new iBloodPressure Plus features blood pressure zone visual indicators to show the patient whether they are in a healthy range or a dangerous range. In addition, it offers voice assistance to provide results to people with disabilities and guide them to successfully complete their blood pressure test.

“The ability to track key factors that can lead to heart disease is now easier than ever with our iBloodPressure systems,” said Casey Pittock, Smart Meter’s CEO. “Our cellular technology means that the patient isn’t required to do anything after the test. We have seen firsthand the positive impact on patient outcomes when our iBloodPressure monitors are used with an RPM program.”

About Smart Meter, LLC

Smart Meter is the number one supplier of Remote Patient Monitoring ("RPM") solutions to a nationwide network of SmartPartners™ who are transforming patient care and today are used by over 200,000 patients in the US. Millions of vital health data readings are reliably delivered across our secure platform, enabling SmartPartners to provide real-time, better-informed health care. Our proprietary, patient-friendly, cellular, FDA-registered monitoring devices are connected to an exclusive AT&T IoT Private Data Network to ensure an engaging patient experience for improved adherence. For more information, visit SmartMeterRPM.com

¹ Leading Causes of Death – Males – All races and origins – United States, 2018 | Minority Health | CDC
² Facts About Hypertension | cdc.gov
³ remote-patient-monitoring-guidance-2019.pdf (heart.org)
⁴ Antihypertensive treatment based on blood pressure measurement at home or in the physician's office: a randomized controlled trial - PubMed (nih.gov)

Contacts

Keith Tolbert
keith.tolbert@iglucose.com
336-509-8024

Equinoxe® Planning App and ExactechGPS® Shoulder navigation allowed minimized glenoid reaming, more accurate and precise glenoid baseplate and screw placement compared to conventional instrumentation, with a low complication rate

New Studies Demonstrate Benefits of Using Preoperative Planning and Navigation in Shoulder Surgery (Photo: Business Wire)

January 09, 2023 09:00 AM Eastern Standard Time

GAINESVILLE, Fla.--(BUSINESS WIRE)--Exactech, a developer and producer of innovative implants, instrumentation, and smart technologies for joint replacement surgery, announces publication of two new studies that show positive clinical outcomes using the Equinoxe® shoulder preoperative Planning App and ExactechGPS® shoulder intraoperative navigation system.

“We started Blue Ortho with the objective of providing a navigation system that truly makes a difference for surgeons and patients in arthroplasty”

Tweet this

The first new study, Implications of Navigation System Use for Glenoid Component Placement in Reverse Shoulder Arthroplasty¹ (Kida H et al.), is published in Nature’s Scientific Reports. The authors researched the use of ExactechGPS® for glenoid baseplate and screw placement with reverse total shoulder arthroplasty compared to use of conventional instrumentation. The study demonstrated that GPS navigation provided surgeons greater control and helped them more accurately and precisely reproduce their preoperative plan.

“I am very honored to be able to publish our study about the ExactechGPS navigation system,” said study author Atsushi Urita, MD, Ph.D. (Dokkyo Medical University). “Our results showed that the GPS navigation system allowed for greater accuracy and precision implanting the baseplate as compared to conventional instrumentation, with better execution of our preoperative plan for both version and inclination. GPS navigation also allowed for the use of more augmented baseplates, which minimized glenoid reaming to preserve patient glenoid bone. Finally, GPS navigation provided real-time monitoring of screw direction, which resulted in the use of longer screws compared to cases with conventional instrumentation.”

The second paper, High Intraoperative Accuracy and Low Complication Rate for Computer Assisted Navigation of the Glenoid in Total Shoulder Arthroplasty² (Larose G et al.) is published in the Journal of Shoulder and Elbow Surgery. The authors retrospectively analyzed 16,723 navigated cases with the ExactechGPS system and demonstrated that 98% of cases were completed as planned, with minimal deviation in glenoid version, glenoid inclination, and glenoid positioning relative to the preoperative plan. The authors reported a very low complication rate associated with the use of the navigation system and concluded the system is safe and effective, with only 0.05% of patients experiencing coracoid bone fracture after tracker fixation.

Previous studies have also demonstrated that GPS provides verified placement accuracy within +/-2mm and 2 degrees of the preoperative plan^3,4, better glenoid fixation^3-6 and improved two-year minimum clinical outcomes compared to non-navigated groups, including improved range of motion and reduced postoperative complications, revision rates and adverse events.⁷

The GPS system was developed and is manufactured by Blue Ortho, an Exactech company. “We started Blue Ortho with the objective of providing a navigation system that truly makes a difference for surgeons and patients in arthroplasty,” said Anthony Boyer, Blue Ortho President and CEO. “We sought to design a system that was easy to use and seamlessly integrated with Exactech’s implants and instruments to offer the best possible surgeon experience. After 13 years of development and continuous improvement, we could not be more proud to see the level of adoption of this technology, where >40% of Exactech’s shoulders and >20% of Exactech’s knees are implanted worldwide using GPS navigation. We are also proud of the positive clinical experience, as demonstrated by the outcomes detailed in those two studies.”

Added Exactech’s Senior Vice President of Extremities, Chris Roche, “GPS is the first and only shoulder navigation technology that connects the preoperative plan with real-time intraoperative instrument guidance – and verifies implant placement. GPS navigation is a true competitive advantage for Exactech, and more importantly, it is beneficial to our surgeon customers and their patients. We are proud of the results demonstrated by these two new studies, which highlight the real clinical value created by this differentiated orthopedic technology solution.”

Download the Equinoxe Planning App at www.AISurgeon.com and explore all of Exactech’s Active Intelligence technologies at www.AIExactech.com.

¹Kida, H. et al. Implications of navigation system use for glenoid component placement in reverse shoulder arthroplasty. Sci Rep. 2022 Dec 7;12(1):21190. doi: 10.1038/s41598-022-25833-8.
²Larose, G. et al. High Intraoperative Accuracy and Low Complication Rate for Computer Assisted Navigation of the Glenoid in Total Shoulder Arthroplasty. JSES. In press. 2022.
³Jones R. et al. Accuracy and precision of placement of the glenoid baseplate in reverse total shoulder arthroplasty using a novel computer assisted navigation system combined with preoperative planning: A controlled cadaveric study. JSES Seminars in Arthroplasty. 2020 May;30(1):73-82.*
⁴Nashikkar P. et al. Role of intraoperative navigation in the fixation of the glenoid component in reverse total shoulder arthroplasty: a clinical case-control study. J Shoulder Elbow Surg. 2019 Sept.;28(9):1685-1691.
⁵Nashikkar P. et al. Computer navigation re-creates planned glenoid placement and reduces correction variability in total shoulder arthroplasty: an in vivo case-control study. J Shoulder Elbow Surg. 2019 Dec;28(12):e398-e409.
⁶Roche C. et al. Impact of screw length and screw quantity on rTSA glenoid fixation for two different sizes of glenoid baseplates. JSES Open Access (JSESOA-D-19-00048R1).*
⁷Greene A. et al. Two-year clinical outcomes of total shoulder arthroplasty performed with a computer navigated surgery system. Presented at CAOS 2022.
^{*In vitro (bench) test results may not necessarily be indicative of clinical performance.}

About Exactech

Exactech is a global medical device company that develops and markets orthopaedic implant devices, related surgical instruments and the Active Intelligence® platform of smart technologies to hospitals and physicians. Headquartered in Gainesville, Fla., Exactech markets its products in the United States, in addition to more than 30 markets in Europe, Latin America, Asia and the Pacific. Visit www.exac.com for more information and connect with us on LinkedIn, Vumedi, YouTube, Instagram and Twitter.

The Equinoxe Planning App is used exclusively with the Equinoxe Platform Shoulder System and its comprehensive glenoid and humeral solutions. ExactechGPS and the Equinoxe Planning App are manufactured by Blue Ortho, a subsidiary of Exactech, and distributed by Exactech.

Contacts

Nancy Walsh
Director, Marketing Communications
nancy.walsh@exac.com

New Report Outlines Best Practices in Bioscience Economic Development Initiatives

June 8, 2020

The Biotechnology Innovation Organization (BIO) today released new data on the bioscience industry in the United States.

The new report, The Bioscience Economy: Propelling Life-Saving Treatments, Supporting State & Local Communities, analyzes the bioscience industry’s economic footprint, the significant role of small- and mid-sized companies, and the industry’s response to the COVID-19 pandemic.

“For years, this report has put a spotlight on the immense impact America’s bioscience industry has on the economy, job creation, and economic output. Now, as we endure the Coronavirus pandemic, it is encouraging to see industry at record strength as it took on the threat,” said Pete Pellerito, BIO Senior Policy Adviser for Federal and State Economic Development and Technology Transfer Initiatives.

“The bioscience industry has a strong track record of near continuous growth and will be more important than ever to help end the pandemic and rebuild our global economy,” said Ryan Helwig, Principal and Project Director with TEConomy Partners.

The state-by-state industry assessment is the ninth in a biennial series, developed in partnership by TEConomy and BIO, and studies the state of the U.S. bioscience industry and its associated innovation ecosystem at the national, state, and metropolitan area levels.

The report includes individual fact sheets for all 50 states, the District of Columbia and Puerto Rico, which can be found alongside the full report and interactive map at www.bio.org/jobs.

###

September 30, 2019

JUPITER, FL — The launch of the Florida campus of Scripps Research has produced an economic impact of $3 billion since the nonprofit biomedical institute opened an East Coast branch 15 years ago, Scripps Research Executive Vice President Douglas A. Bingham announced Monday.

Bingham said total impacts from the Scripps Research expansion to Florida have been substantial. Florida scientists have contributed to promising scientific and medical advances in areas of great medical need, including cancer, muscular dystrophy, ALS, Parkinson’s, addiction and multiple sclerosis. Further, Scripps Research scientists have made fundamental discoveries that have advanced humanity’s understanding of the brain, including learning, memory, and neurodegenerative diseases including Alzheimer’s. 

“Cumulatively since 2004, every dollar invested in Scripps Florida has returned $6. Beyond that, our presence has seeded and attracted other local life science research and development companies,” Bingham said. “Expansion Therapeutics, Excovery and Beacon Pharmaceuticals, not to mention the Max Planck Florida Institute for Neuroscience, exist in Palm Beach County because of its initial investment in Scripps Research.”

The industry standard IMPLAN (Economic Impact Analysis for Planning) model was used for the economic impact study. It relied upon expenditures by the Florida campus as its input. The $3 billion figure represents a fairly conservative multiplier of 2.42, said San Diego-based academic research institute consultant Cary Thomas, MBA/CMA, who performed the analysis. More than $1.2 billion has been directly spent by the Florida institute through the 15-year period, Thomas said.

The IMPLAN model considers direct spending on wages, services and supplies, and then calculates indirect spending by businesses in the company’s supply chain, and induced spending by workers on items such as real estate, meals, taxes, insurance and other items. 

“We know the full impact is even greater than the IMPLAN study shows,” Thomas said. “There are technology advances and spin-off companies, and the impact of those developments were not included in the study of Scripps Florida’s economic impact.”

Scripps Research spinoff company Expansion Therapeutics, for example, raised $60 million to develop innovative therapies for conditions including ALS and muscular dystrophy in 2017 and 2018, spending not reflected in the study.

Another spinoff, Xcovery, now based in Palm Beach Gardens, developed an anti-cancer compound, Ensartinib, which is being investigated for the treatment of ALK-positive non-small cell lung cancer. It recently completed enrollment for phase 3 clinical trials. That impact is likewise not included in the study. Founder Chris Liang, PhD, was one of the first scientists recruited to Scripps Research’s Florida campus in 2004.

Marking Scripps Research’s 15^th anniversary in Florida, in addition to the IMPLAN economic analysis study, Scripps Research looked back at the intellectual property created from its discoveries. That analysis reveals a total of 162 clusters of patent applications have been filed on technology developed at the Jupiter campus, with each cluster containing 1-6 separate patent applications.

Bingham noted that Palm Beach County students at many levels have benefited from the institute’s presence, a value likewise not reflected in the economic impact analysis.

“Our undergraduate internship program has enabled more than 300 Florida Atlantic University Honors College STEM majors to conduct their theses work and gain valuable lab experience.” Bingham said. “Our Kenan Fellows internship program has enabled 177 Palm Beach County high school students and 24 science educators to gain lab experience alongside our scientists, as well. The impact of that experience on the lives of those participants really cannot be measured.”

Business of Medicine: 'It’s an exciting time for the life sciences in Florida' 

By Jeff Zbar  – Correspondent, South Florida Business Journal

Apr 5, 2019, 6:00am EDT

When Nancy K. Bryan arrived as president and CEO of BioFlorida in 2013, she brought a career in commercial life sciences involving primary care, biologics and specialty markets.

Whether with major pharmaceutical companies like Merck and GlaxoSmithKline, or specialty pharmaceuticals and startup biotech firms, she developed, launched and commercialized such household names as Zantac and Levitra; major biologics like Tysabri; and “orphan drugs” for rare diseases, like Valstar for bladder cancer and Supprelin LA for central precocious puberty.

In this interview, Bryan explores the state’s growing biotech and health care space – and how pharmaceutical R&D companies, technology firms, universities, investors and South Florida’s growing population have turned itinto a leading biotech market.

You came to Florida from New Jersey. What made you think this would be a good place for you to be? Prior to this position, I had over 25 years of experience in the industry with major biopharmaceutical companies and startup biotech. Having the opportunity to head up BioFlorida was particularly attractive, as it gave me a way to leverage my experience and help support the growing ecosystem in Florida.

Six years later, how has that worked out? It’s really exceeded my expectations. I’m really impressed, not only with the progress of the industry, but with the potential for innovation and growth, both statewide and in South Florida. It’s an exciting time for the life sciences in Florida. It’s a strong and major economic driver of the state. Data shows that the industry now consists of nearly 6,200 establishments and research organizations that support 87,000 direct and 290,000 total jobs in Florida, and contributes $31 billion in economic impact. We’re seeing growth that is outpacing the nation – double-digit growth in the research and biopharmaceutical sector, and Florida’s total industry employment is growing at almost twice as fast as it is nationwide.

South Florida has biotech companies, health care technology firms, and universities. What did you see when you arrived – as far as how the sector collaborates – and how has that changed? There’s significant collaboration throughout the state. If you look at it in total, it’s an ecosystem all working together and including your biopharmaceutical and medical technology companies. We have world-class research universities and hospitals, and you also have some of the nation’s most highly regarded research institutes [including Max Planck Florida Institute for Neuroscience and Scripps Florida], incubators and accelerators. They all work together to form that life sciences ecosystem. The assets in the state of Florida and South Florida are really impressive. If you look at the research being done in the institutes, as well as the universities, there’s a lot of promising technology, a lot of research being done inunmet needs including cancer, Alzheimer’s, diabetes that will make a significant impact.

Specific to South Florida, what areas of biotech are strongest – and what’s up and coming? In the South Florida market, it’s very diverse. You’ve got your established medical technology and you’ve got your more emerging research in regenerative medicine, oncology and neurosciences. South Florida is also strong in marine biotechnology. And then, if we’re looking at the other side of the spectrum, the more established commercial side, South Florida attracts Latin America headquarters, and it also has an emerging health innovation sector, including what I refer to as health IT, supporting the hospitals. You’ve got lots of different factors working together. You’ve got the medical technology side that is looking at different ways to reduce pain, for example. That’s supplemented by some of the ongoing research on opioid substitutes and methods for reducing addiction.

We have a large population, from children to seniors, so how is the sector touching all components of the health care continuum? One of the reasons why Florida is one of the leaders in clinical trial providers is because of the population of this state. The disease population, the elderly, but also healthy volunteers. Florida is No. 2 in the nation for clinical trial providers. Another area of expertise in the South Florida region is RNA technology that’s looking at disease areas like muscular dystrophy, which could be a real breakthrough therapy. There have been a lot of examples of recent growth spanning from research to commercialization. Just recently, we’ve seen FDA approvals from TherapeuticsMD, which is a leading women’s health company; Catalyst Pharmaceuticals, an orphan drug company; and Sensus Healthcare, which recently introduced a robotic radiation oncology system. These products and technology can be transformative.

You alluded a moment ago to the education side. Health care networks and providers stress the importance of education for keeping the workforce robust, but also having graduate students and interns. Some employers fear a “brain drain” of graduates leaving the market. How would you characterize the education/workforce opportunities here and the collaborative nature between them? How have they changed since your arrival? We call that the myth. The talent does exist within the state. What everyone has to work hard on is actually matching the talent. BioFlorida takes a role in that. We have a program called Career Connections, and we do that in South Florida. We will be introducing other programs in the Gainesville and Tampa regions, as well, where we try to highlight the opportunities that are available within the state for the folks who are here.

Some entrepreneurs have said investors have overlooked opportunities here in Florida. How would you characterize the investment market? The investment opportunities are plentiful in South Florida. The whole ecosystem is built on the legacy of companies like Coulter, Cordis and Ivax. And if you combine that with the university and institute R&D base and the local CEO talent, I think you have lots of good opportunities in Florida to invest. If you look at the data in 2017 and 2018, South Florida boasted noteworthy life science deals. What we’ve seen in the past few years is that there’s a growing momentum and an interest in investment in Florida life sciences. … We’re seeing an increased angel group within the state and increase participation. You have the Innovation Summit in Tampa Bay, and angel groups like Florida Next and Florida Funders. You have eMerge Americas, which is hosted in South Florida. So I think you’re seeing more of an interest in investments in Florida.

What excites you about this market? What excites me is the fact that there is such significant potential to leverage the existing ecosystem to continue the momentum and drive future growth. And the impact of that serves not only to benefit in terms of economic contribution, but it will bring treatment advances to improve the lives of patients worldwide. That’s why we’re all here: to make a difference in and improve the health of people. We’re really establishing Florida as a life-science hub.

Institute for Commercialization of Florida Technology Delivers Nearly $1.4 Billion Economic Impact

Impacts Increased Significantly Due to Funded Companies’ Growth

Gainesville and Boca Raton, FL – October 18, 2018  – The Institute for Commercialization of  Florida Technology (the Institute) announced today results of a new study conducted by The Washington Economics Group, Inc.^® (WEG), a boutique economic consulting firm led by nationally recognized business economist Dr. J. Antonio (Tony) Villamil. The study measured economic impacts of the Institute during FY 2017-18 to update prior years’ studies, and concluded that the organization’s impact increased significantly as more companies continued to raise investment capital, create jobs, and bring innovative products to market.

The Institute supports new companies that create clean jobs in knowledge-based industries that are driving the global economy. By providing seed and early-stage funding, the organization enables businesses to develop and launch products in key industries, including life sciences, information technology, homeland security and defense, logistics and distribution, and manufacturing. Highlights of the new study include:

"The economic impacts of the Institute increased again in 2018, marking the seventh year of growth and positive results for Florida’s economy,” said Dr. Tony Villamil, founder and senior advisor of The Washington Economics Group, Inc. “The organization supports the creation of an innovation and technology-driven economy in Florida, which is a key goal of the State's Economic Development Strategy, with positive outcomes including increases in high-wage employment in 21st century knowledge industries, household income for Florida's residents, and fiscal revenues to the State, all resulting from economic activity created by the Institute." 

 “Institute-funded companies are delivering an excellent return on the State’s investment in early-stage innovation companies, as they continue to raise private investment capital and create jobs in multiple industry sectors throughout Florida,” said Renee Finley, Institute Board Chair. “The resources provided by the Institute and its subsidiary, the Florida Technology Seed Capital Fund, have enabled many of Florida’s most promising companies to gain the traction and visibility they need in order to reach critical milestones and bring new products to market, and we are proud of the profound impact they are having not only in Florida, but globally as well.”  

About the Institute

Formed by the Florida Legislature in 2007, the Institute for Commercialization of Florida Technology is a non-profit organization that works with research partners to leverage a $2.5B+ research base and form investable companies that create clean jobs in new industries that are driving the global economy. Through the generosity of mentors, advisors and donors, the Institute provides company building services, and seed funding through the Florida Technology Seed Capital Fund, to promising Florida startups. Seventy-two companies have been funded to date, and the Institute’s overall economic impact through June 30, 2018 was nearly $1.4 billion.  

About the Washington Economics Group, Inc.^®

Founded in 1993 in the City of Coral Gables, The Washington Economics Group is a boutique economic consulting firm specializing in comprehensive economic solutions for businesses. WEG engages a limited number of clients each year in order to ensure the best client experience within premiere areas of specialization, and possesses expertise in the economies of Florida, the U.S., Latin America as well as the global economy and emerging markets.

Contact: George Goodno / 202-962-6660

National Bioscience Industry Report Shows 
$2T Economic Impact, Accelerated Venture Capital Investment & Job Growth

Boston, MA (June 5, 2018) -  A study released today at the  BIO International Convention shows that the U.S. bioscience industry has reached $2 trillion in annual economic impact while maintaining accelerated venture capital investment and job growth numbers. Among U.S. technology sectors, the bioscience industry has held a leading position as an economic driver and job generator.

The report, Investment, Innovation and Job Creation in a Growing U.S. Bioscience Industry 2018, finds U.S. bioscience firms directly employ 1.74 million people, a figure that includes more than 273,000 high-paying jobs created since 2001. The average annual wage for a U.S. bioscience worker reached $98,961 in 2016. These earnings are more than $45,000 greater, on average, than the overall U.S. private sector wage. The report further shows that since 2014, the bioscience industry has grown by 4.4 percent with four of its five major subsectors contributing to this overall job gain.

For the first time, the biennial report includes a full assessment of the economic impact of the bioscience industry and finds its total economic impact on the U.S. economy, as measured by overall output, totaled $2 trillion in 2016. This impact is generated by the direct output of the bioscience industry combined with the indirect (supply chain) and induced (employee spending) impacts. The industry and its associated economic output support 8 million jobs throughout the entire U.S. economy through both indirect and induced effects.

"This report highlights the enormous economic impact delivered by our industry. This strong performance is due to the vital and wide-ranging collaborations between industry partners, universities, and policymakers that provides a business climate that supports the development of innovative bioscience products and high paying jobs," said Jim Greenwood, President and CEO of the Biotechnology Innovation Organization."

The report also takes the pulse of the broader U.S. innovation ecosystem for bioscience companies and finds it advancing with positive results. The U.S. is experiencing strong gains in bioscience venture capital funding, growth in patents, a recent ramp-up in bioscience-related university R&D expenditures and increasing research funding from the National Institutes of Health (NIH).

"The bioscience industry is vital to the U.S. not only as an innovation engine that is improving lives, but also as a major economic driver that is consistently generating high-quality jobs and significant economic output across the nation," said Ryan Helwig, Principal and Project Director with TEConomy Partners.

The state-by-state industry assessment is the eighth in a biennial series, developed in partnership by TEConomy and BIO, presenting data on national, state, and metropolitan area bioscience industry employment and recent trends.

Additional highlights from the industry economic analysis include:

• The industry is a major economic driver and is well distributed across U.S. states and cities:
  • 41 states experienced net job growth in the biosciences between 2014-2016
  • 38 states and Puerto Rico have an employment specialization in at least one bioscience subsector
  • 213 of 383 U.S. metropolitan areas have at least one bioscience specialization

Highlights from the analysis of the innovation ecosystem for the bioscience industry include:

• Strength in recent venture capital and patenting trends:
  • Venture capital investments have reached new highs. More than $66 billion in venture capital was invested in bioscience companies during the 2014 through 2017 period, including a new annual high in 2017 at $20 billion invested.
  • Innovation continues to drive the biosciences, since 2014 the U.S. has increased patent totals in bioscience-related technology classes by nearly 5 percent, or 1.6 percent per year, on average. 2017 had a total of nearly 27,000 patents awarded to U.S. inventors, another new high.
• Growth for academic biosciences R&D in 2016
  • After several years of concerns raised about the declining and/or flat NIH research budgets and the subsequent effects on academic and other research, NIH funding is back on the rise. There have been budget increases sustained each of the last three years.
  • Across America's colleges and universities, the pace of R&D spending in bioscience-related research areas has increased. Following a 1.5 percent decline in 2015, academic R&D expenditures in the biosciences increased 5.5 percent to $42 billion in 2016.

The TEConomy/BIO report includes individual profiles for all 50 states, the District of Columbia and Puerto Rico, and can be found on the BIO website at bio.org/jobs2018.

About BIO

BIO is the world's largest trade association representing biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations. BIO members are involved in the research and development of innovative healthcare, agricultural, industrial and environmental biotechnology products. BIO also produces the BIO International Convention, the world's largest gathering of the biotechnology industry, along with industry-leading investor and partnering meetings held around the world. BIOtechNOW is BIO's blog chronicling "innovations transforming our world" and the BIO Newsletter is the organization's bi-weekly email newsletter. Subscribe to the BIO Newsletter.

About TEConomy

TEConomy Partners, LLC is a global leader in research, analysis, and strategy for innovation-based economic development. Today we're helping nations, states, regions, universities, and industries blueprint their future and translate knowledge into prosperity. The Principals of TEConomy Partners include the authors of the prior Battelle/BIO State Bioscience Development reports, published since 2004. For more information, please visit http://www.teconomypartners.com.

By Mark Schlueb

Thursday, June 29, 2017

Companies that grew up in the University of Central Florida’s business incubators sustained 4,710 jobs and added more than $725 million to the region’s gross domestic product in the past two years, according to a newly released economic impact study.

The report found that the seven UCF-operated incubators spread over Orange, Seminole, Osceola and Volusia counties are job-creating engines whose client companies had a $1.3 billion impact on sales in the region from July 1, 2014, to June 30, 2016.

“The goal of the UCF Business Incubation Program is to nurture these start-up companies to the point where they are able to grow and survive on their own. We have been very successful at that, and that success translates to new jobs in our community and economic growth throughout the region,” said Tom O’Neal, associate vice president of UCF’s Office of Research & Commercialization.

The UCF incubator program was formed in 1999 to help early-stage businesses grow into financially stable companies. Clients benefit from office space and shared office resources in one of the incubator buildings; strategic business advice and coaching; frequent seminars and workshops; as well as help with budgeting, accounting, intellectual property and legal questions.

Since the program’s inception, UCF incubators have helped nearly 400 companies in a broad range of sectors, including simulation, clean energy, digital media, transportation and many more.

The study, which was conducted by Vernet Lasrado, assistant director of the Office of Research & Commercialization, was commissioned by the Florida High Tech Corridor. It examines the economic activity of the program’s current clients, as well as those that have graduated or left the program since it was launched but remain in the region, and quantifies their combined impact on the local economy during the two-year study period.

The study found that firms associated with the incubator program:

• Sustained 4,710 jobs in the Orlando and Daytona Beach regions as of June 30, 2016, including both direct and indirect employment.
• Had a $725 million total impact on the region’s gross domestic product.
• Had a $1.3 billion total impact on regional sales.

The incubators receive funding from UCF, the Florida High Tech Corridor Council, Orange, Osceola, Seminole and Volusia counties, and the cities of Apopka, Kissimmee, Orlando and Winter Springs.

The study also concluded the program is a good deal for the local governments and organizations that support it. The incubators received $4.9 million in funding during the two-year study period, while incubator clients’ business activities generated more than $36 million in state and local taxes during the same period. In short: For every $1 of public investment, an estimated $7.41 was returned in taxes.

“There is no denying the remarkable success of the UCF Business Incubation Program – not only as a very productive creator of new jobs in high technology and other quality industries, but also as a model for focused and cost-effective economic development,” economic advisor William H. Owen, who reviewed the study, wrote in its forward.

The report is available here:  https://incubator.ucf.edu/wp-content/uploads/2015/04/UCFBIP_EconomicImpactStudy_051617.pdf