Tag Archives: Doug Ducey

bioscience

Arizona bioscience industry producing ‘aha’ moments

AZBio Expo 2014 had “aha moments” at every turn. With over 250 entrepreneurs, innovators, business leaders, legislators, scientists and researchers in attendance, the energy was sizzling and the outlook endless. Here are just a few of the event highlights, appropriately, A to Z:

A – Access to Capital is the key. No money. No honey. Capital fuels innovation and commercialization. In the first panel discussion of the day – Funding Paths for Innovators – AZBio chief Joan Koerber-Walker engaged Mary Ann Guerra (BioAccel), Paul Jackson (Integrus Capital/Worthworm) and Kelly Slone (National Venture Capital Association) in a no-holds barred discussion. “The entire ecosystem has changed,” according to Slone. “After the tech bubble burst, available venture dollars have been virtually cut in half.” Guerra explains that only one in 100 will get angel funding – and then only one in 100 will get venture funding. We need to think of new ways to help our startup entrepreneurs get funding.” Jackson urges innovators to think like investors and offers one solution with his online valuation process, Worthworm.

B – Bridging the Gap with the 21st Century Cures Initiative. “No industry has to face the challenges we face to bring a product to market,” says Koerber-Walker. “We have new hope in the 21st Century Cures Initiative. Google it. Watch the videos, See what they are doing. There is exciting stuff happening and some of it is happening in Arizona.”

C — Cure Corridor. Scottsdale’s Mayor Jim Lane shares his pride and plans for the largest concentration of bioscience businesses in the U.S., the Cure Corridor, bounded on one side by the Scottsdale Airpark on the West, and the Fountain Hills Mayo facility on the East, “a major driver of our economy, with $2½ billion in direct economic impact and $3.5 billion in indirect impact.” According to Lane, “Health and wellness are a part of Scottsdale’s identity. We should never stop asking how we can find new answers alleviate pain, restore health and improve the quality of life.”

D – Discovery. Development. Delivery. Valley Fever Solutions CEO David Larwood shared his company’s formula for achieving success in development and funding – The Five R’s:

Right drug.
Right patient.
Right safety.
Right time. (How long before we can sell it?)
Right reimbursent.

E – Epigenetics and Personalized Medicine. Start-up company INanoBio founder and CEO Bharath Takupalli, explained that the genome sequencing market is expected to grow to $10 billion by 2020. With a unique capability to combine nanotechnology and biomedicine, his company is in the lead for building new solutions now. “We aim to develop a $100 ultrafast nanopore-based desktop sequencer – a point-of-care diagnostic” that will help change the face of healthcare, he explains.

F – Funding needs to be the focus for the future. According to a Flinn Foundation/Batelle report, “Arizona has many bioscience strengths and opportunities, but a substantial increase in private and public investment will be needed over the next decade to realize the [Flinn Foundation’s] Roadmap’s goals.” Last year, Arizona bioscience sector attracted $37 million in venture capital investment, up from $23 million from 2012, but that is only a fraction of the $9.8 billion invested nationally.

The goal is to increase the annual investment up to $40 million for seed capital in emerging companies and up to $125 million in venture capital.

G – Genomic advances hold high hopes for positively disruption. Explaining that healthcare premiums are growing at three times the rate of inflation and wages, Frederic Zenhausern, Ph.D., MBA, president of Whitespace Enterprise, says “The new era of precision healthcare (also called personalized healthcare) will provide more accessibility, transparency and health information to improve – dramatically – quality and lower cost over time.” His start-up company, based in Fountain Hills, develops methods for automating and miniaturizing the workflow processing of biological specimens.

H – Henry Ford.“I am looking for a lot of men who have an infinite capacity to not know what can’t be done,” said Henry Ford. So does Robert Penny, M.D., Ph.D., co-founder and CEO of the International Genomics Consortium and founder and CEO of Paradigm. “Phoenix has become the Grand Central Station for all the aggregating and analyzing cancer tissues. We have 10,000 tumors – and the information is publicly available. This will accelerate cancer discovery at a rate faster than ever,” he says. “This is a tidal wave that Arizona has led. Everyone in this room should be grabbing a surfboard and figuring out how to ride it.”

I – IPO: The nation’s top IPO of 2013 is right here in Chandler. With 380 percent growth in shareholder value, Insys Therapeutics, a commercial-stage specialty pharmaceutical company, ended the year with a market cap of $800 million. Darryl Baker, the chief financial officer, explained how the company, founded in 2002 by Dr. John Kapoor, was determined to discover better ways to deliver existing medications to patients. A sublingual fentanyl spray technology delivers treatments to opioid-tolerant cancer patients and holds real possibilities for better helping patients with acute pain, major burns and pediatric issues. In the R&D pipeline now is the development of a pharmaceutical cannabinoid, aimed at easing epilepsy, peripheral neuropathy and cocaine addiction.

J – Jobs: 107,000 bioscience jobs – good-paying and growing. Arizona has nearly 107,000 bioscience jobs, based on 2012 industry data, and the sector contributes an estimated $36 billion in revenue to the state’s economy, according to a study by the Ohio-based Battelle Technology Partnership Practice. Hospitals account for 83,000 of those jobs and $22 billion of the revenue. Arizona’s average annual wage in the bioscience sector is $62,775, 39 percent higher than the private-sector average, the report said. Not counting hospital jobs, the average wage for bioscience jobs jumps to $85,571. (2013 data).

K – Kalos Therapeutics is building a promising platform for future drug discovery. Start-up innovator Michael Kozlowski, OD, Ph.D., chief science officer of Kalos Therapeutics, explains that their focus on transforming the atrial natriuretic family of peptides engages a natural biochemical mechanism. This approach holds promise for people with pancreatic cancer because it results in a more complete response, reduced side effects and improved safety and a longer period of effectiveness.

L – Let’s leverage every resource, strength, collaboration and person we’ve got! Arizona’s bioscience industry is aiming to increase research revenue for institutions statewide by 69 percent over the next decade to $782 million and attract additional anchors for the sector.

M – Medtronic models aggressive, needs-focused growth. Keynote speaker Ron Wilson, vice president and general manager of the Medtronic Tempe campus made it clear that passion for people runs through his veins. Locating a small manufacturing facility here in 1973, the company’s facility today covers 30 acres, has 900 employees and generates $17 billion in revenues. How do they do it? We follow our founder’s vision still: We understand what the unmet needs are and we apply our knowledge for the good of people all over the world.”

N – Next Level. “Arizona has made unprecedented progress over the last decade in developing the talent, building research infrastructure, and growing its base. Taking it to the Next Level will require new collaborative partnerships, forward looking leaders, and aggressive investments from both the public and private private sectors to take our place in the top tiers globally,” shared Koerber-Walker. ”Now is our time. Let’s get it done!”

O – Orphans no more. Valley fever, considered an orphan disease, hits about 150,000 people a year – 60 percent live in central Arizona. Current treatments have major shortcomings, with about 60 percent of those treated being unresponsive. The result is 2,000 serious cases and 150 deaths a year. It affects pets in nearly equal proportion. David Larwood, CEO of Valley Fever Solutions, has some answers. His company is developing Nikkomycin Z (NikZ) as a dramatically superior potential cure for Valley Fever. To help raise awareness and prevention, the Arizona Board of Regents created Valley Fever Corridor project, a public health program led by University of Arizona College of Medicine’s John Galgiani, MD, who is also the chief medical officer for Valley Solutions.

P – Policymakers are on board. Gov. Jan Brewer’s time is coming to a close and it’s time to decide which candidate can bring their best to bioscience. Recognizing that the Arizona bioscience sector is growing at four times the rate of the national average, candidates Christine Jones, Doug Ducey, Fred Duval, Ken Bennett and Scott Smith shared their ideas on how to ramp up funding and revenues in 90-second videos. Koerber-Walker says, “The most important thing we can do this summer is vote in the primaries.”

Q – Cues: Here are a few Q’s for success. Some lessons learned, courtesy of Robert Penny:

Make sure you have:

Complementary skills and expertise
Trust
Interpersonal chemistry (It’s better to navigate bumps in the road with people you trust than people you don’t!)

Pick the right projects:

Big enough to be worthy of your efforts
Complex enough to need partnerships
Audacious enough to move the field

R – Remembering Polio: Can Looking Back Catapult Us Forward? How did we cure the world of polio? What did it take to conquer the most feared disease of the 20th Century? What threatens our world today and how can we continue to keep people healthy with the right vaccines, for the right person at the right time? Gaspar Laca, state government affairs director at GlaxoSmithKime, engaged David Larwood, CEO and president of Valley Fever Solutions (and a person who has been directly affected by polio) and Rep. Debbie McCune Davis, executive director of The Arizona Partnership for Immunization, in a rousing discussion of what’s happening in Arizona today, the mounting threats of the ”vaccine exemptors,” and what we need to do now. (See Vaccines.)

S – Shoes. Did you see those shoes? “Give a girl the right shoes and she can conquer the world!” Enough said.

T – Tucson’s Critical Path Institute creates new tools. A jewel in the bioscience crown – and located right here in Arizona! The Critical Path Institute (C-Path) is a breakthrough organization, creating a new movement: “consensus science.” Keynoter Martha Brumfield. Ph.D, president and CEO, shared what can be achieved when people come together with the belief that a “rising tide floats all boats.” Working to improve the unacceptable 95 percent failure rate in the testing of new drug therapies, C-Path is improving medical product development efficiencies by identifying pathways that integrate new scientific advances into the regulatory review process. Check out their Alzheimer’s clinical trial simulation tool.

U – United we stand. Mayors Jim Lane (City of Scottsdale) and John Lewis (Town of Gilbert) will join Koerber-Walker and an Arizona bioscience-business contingent next week at the 2014 BIO International Convention in San Diego (June 23-26), the world’s largest biotechnology gathering. They will surely scoop up new ideas, new connections – and with any luck, new investment!

V – Vaccines: Get ‘em! Talk about ‘em. Challenge the myths. Explain the realities. Polio. Measles. And whooping cough today. Without proper vaccinations, whooping cough (pertussis) could be the polio of our time. “As science-minded people, the best thing you can do is activate conversations about the importance of vaccinations. Here’s some help: Why immunize?

W – White Hat event brings in national investors. (Apply by July 15th.) “AZBio’s White Hat Investor’s Conference is the first ever life science specific investor conference to be held in Arizona,” says Koerber-Walker. “Kelly Slone [of the National Venture Capital Association] has been an amazing partner to bring this together along with the state bioscience association leaders from across the Rocky Mountain Southwest Region. Investors and investment firms from across the country will be here, so get involved. Even if you feel like you are not ready yet, take the leap and apply to present. “

X – “X” marks the spot for our next big gathering. Wear your White Hat! The West was won by innovators, investors, and prospectors who understood the value of discovery and accepted the challenge of investing in new frontiers. Meet a new generation of biotech and healthcare pioneers at White Hat Investors 2014, the first annual biotech and healthcare investor conference that showcases the best of the Rocky Mountain & Southwest Region.

Bioindustry Associations from across the Rocky Mountain and Southwest Region are coming together to present an opportunity for Angels, Venture Capitalists and Strategic Investors to connect with the best biotech and healthcare investment opportunities from across the Rocky Mountain & Southwest states at White Hat Investors 2014 in Phoenix, Arizona on September 17 & 18, 2014.

Presenting Companies will be selected from the region’s emerging innovator leaders in the fields of:

Diagnostics
Therapeutics
Medical Devices
Health IT

Y – Young Talent is being cultivated. We got it! With nearly 50 abstracts accepted and student presenters presenting at the Expo, Koerber-Walker got it right when she said, “These young people are going to be working on things that we can’t even begin to imagine!” Arizona’s tremendous mentoring people and organizations are sharing knowledge, support and inspiration. For example University of Arizona student Keeley Brown is destined to help the world crack the code on genetically modified foods and farming. (Her presentation was the “Epigenetic Effects of Transgenic Manipulation in Glycine Max (Soybeans).

Zzzzzzzzz – No one fell asleep at this conference! Catherine Leyen, founder and CEO of start-up RadiUp, says she comes to AZBio to stay abreast of the action, connect with like-minded people and soak up inspiration. Her verdict of AZBIO Expo 2014? Mission accomplished!

arizona.desert

Arizona land trust account tops $4 billion

The account that holds and invests money from the sale of Arizona trust land has topped $4 billion for the first time ever.

State Treasurer Doug Ducey says total assets in the state’s Permanent Land Endowment Trust Fund exceeded the $4 billion mark at the end of February.

The fund gets it cash from the sale of some of the 10 million-plus acres of land granted to Arizona at statehood in 1910 and the treasurer invests the money. Sixty percent is invested in stocks and the rest in high-grade corporate bonds and U.S. Treasury notes.

More than 90 percent of the earnings from the fund are distributed to state’s K-12 schools. In the budget year that begins on July 1, nearly $68 million will go to those schools.

Hamer - June 2011-fornewsletter

The 2012 Hammer Awards

It’s that time of year to hand out some honors for the year’s best. So it is without further ado that I bring you the Third Annual Hammer Awards.
Impact Player of the Year: State Treasurer Doug Ducey
The keeper of the state’s checkbook took down Proposition 204 in a rout, and for that Doug Ducey wins a Hammer. Before he arrived on the scene, the tax measure was poised to coast to victory with no opposition. Ducey rallied opponents to make a clear case to voters why Arizona could do better by its education system than to saddle the state with a permanent tax increase that wouldn’t advance proven reforms. Ducey hit the exacta when Proposition 118, which would help create a more reliable funding stream into the K-12 system, also passed.
Best Public Policy Effort of the Year: (tie) Personnel Reform and Competitiveness Package 2.0
Two major policy efforts in 2012 deserve Hammers.
Gov. Jan Brewer and the Legislature, led by Senate President Steve Pierce and House Speaker Andy Tobin, were firing on all cylinders in 2012 with their passage of a sweeping personnel reform package that injects a new and much needed level of accountability and professionalism into the state’s employment system. Newly appointed Brewer chief of staff Scott Smith deserves kudos for shepherding the package through the Legislature with the help of two of  the state House ’s brightest rising stars, Justin Olson and Justin Pierce.
As if that weren’t enough, though, the governor and Legislature also passed a major economic competitiveness package in 2012 that built on the gains passed in 2011. Who says you can’t have back-to-back once-in-a-generation job creation bills? This year’s wins included the state’s first ever reduction in the tax on investment income (capital gains), and it now makes Arizona more attractive from a tax standpoint to service providers who sell their services beyond the state’s borders, bringing the service sector into alignment with manufacturers. Gov. Brewer’s lead policy adviser and tax guru Michael Hunter, state Rep. J.D. Mesnard, who was honored as the Arizona Chamber’s Representative of the Year, and Arizona Commerce Authority CEO Sandra Watson all deserve a Hammer for a job well done.
Comeback Player of the Year: Matt Salmon
The Hammer goes to former and now Congressman-once-again Matt Salmon for his return to the U.S. House 12 years after he stayed faithful to his term limits pledge that he made when he was a member of the class of 1994. As someone who had the honor of spending a good chunk of his professional life working for Matt, the East Valley will be well served by its incoming congressman who, by having served three terms in the 1990s, brings to his job a perspective (and seniority) few have.
Expect Big Things: Steve Chucri
Maricopa County Supervisor-elect Steve Chucri is one to watch, so he earns the Expect Big Things Hammer. Steve is one of the most affable guys you’ll ever meet. Adding his voice to the Board of Supervisors will ensure that the needs of Maricopa County will always come before any personal political agenda. Drawing on his experience as the chief of the Arizona Restaurant Association, I expect he’ll inject a pro-business point of view into the Board’s work that will help Maricopa County grow more jobs.
Southern Arizona Star: Lea Marquez-Peterson
Lea Marquez-Peterson, the president and CEO of the fast-growing Tucson Hispanic Chamber of Commerce, wins the Hammer for her groundbreaking work to illuminate business issues for southern Arizona’s Hispanic and Spanish-speaking community. Through her work on votaaz.org, an online guide to candidates and election information, Lea is ensuring that more people than ever understand public policy’s impact on business.
I’ll Be Back: Kirk Adams
Former state House Speaker Kirk Adams may have come up short in his bid for Congress, but he’s simply too talented a leader and respected as a conservative voice to be gone from the scene long. Here’s hoping it’s won’t be too long until Kirk returns to a position of influence.
Emerging Mayor: Phoenix Mayor Greg Stanton
If I were pressed, I might be able rattle off the names of a dozen or so big city mayors around the country. Phoenix Mayor Greg Stanton gets the Hammer Award for now having clearly joined that small list of mayors whose influence exceeds the borders of his or her city. Mayor Stanton and his colleagues on the Council are doing great things in Phoenix. The Mayor has taken the lead in advancing trade with Mexico, developing a biotech hub, education and pension reform. Because of Stanton and City Manager David Cavazos, when cities around the country are looking for best practices, they’ll look to Phoenix.
Councilmen of the Year:  Sal DiCiccio and Tom Simplot
Phoenix has dramatically reduced the time it takes to get a project through the permitting process, an initiative headed up by Councilmen Sal DiCiccio and Tom Simplot.  This effort has received national attention, including from columnist George Will.
Buy this Stock: Danny Seiden
Danny Seiden, Maricopa County Attorney Bill Montgomery’s political adviser, wins the Hammer for being a stock to watch in 2013. He was on the inside of two big wins in the 2012 election cycle: the defeat of Props 204 and 121, the so-called open primary measure, all while working with Montgomery to return the office of county attorney to respectability. And to boot, he’s married to one of Arizona’s most talented women, Southwest Gas executive Ann Seiden. Buy this stock!
The Next Generation: Martinez and Romero
They’re barely old enough to rent a car, but Gretchen Martinez (formerly Conger) and Lorna Romero each wins a Hammer for representing the next generation of Arizona politics. Martinez was the successful No on 204 campaign manager while doing her day job directing advocacy efforts at the Arizona Chamber of Commerce and Industry. Romero last month was named Gov. Brewer’s director of legislative affairs, where she helps shepherd the governor’s priorities through the legislative process.
Serious Work for a Funny Man: Chris Bliss and the Bill of Rights Memorial
Professional juggler and comedian Chris Bliss wins a Hammer for his dogged determination to install monuments to the Bill of Rights in civic spaces across America. Thanks to Bliss’ work and legislation introduced by U.S. Rep.-elect Kyrsten Sinema, Arizona last week became the first state to dedicate a monument. The limestone pieces with the words of the first 10 amendments to the Constitution can be found at Wesley Bolin Plaza at the state Capitol.
Former Roommate of the Year: Steve Voeller
This is no slight to anyone else who split the rent check with me during my 20s, but Steve Voeller wins the Hammer for Former Roommate of the Year for his tireless and effective tax policy work at the state Capitol as head of the Arizona Free Enterprise Club. Steve is now headed off to serve as Sen.-elect Jeff Flake’s chief of staff. A trusted adviser for years to the senator-elect, Steve will be an excellent leader for the Flake office as he shuttles between D.C. and Arizona. The Chamber wishes him the best of luck in his new post.

Glenn Hamer is the president and CEO of the Arizona Chamber of Commerce and Industry. The Arizona Chamber of Commerce and Industry is committed to advancing Arizona’s competitive position in the global economy by advocating free-market policies that stimulate economic growth and prosperity for all Arizonans. http://www.azchamber.com/.

Sustainable Banks, Green Banking

Arizona panel recommends pension alternative

A committee that studied funding issues with Arizona’s pension system for public employees is recommending that current and former workers be allowed to move into a 401(k)-style plan as an optional alternative to fixed-benefit pensions.

The report by the pension-study committee led by state Treasurer Doug Ducey says the state should also raise the retirement age for future public employees if Arizona is interested in changing its underfunded public-pension system.

Ducey’s committee presented its report at a hearing Thursday.

The Arizona Republic reports Republican committee member Sen. Steve Yarbrough says he will seek legislative approval of some of the report’s recommendations.

flag

Heroes, Goats and ‘Pure Idiocy’

In case you’ve been living in a cave, next Tuesday is Election Day. Here are a few thoughts about some of the folks that have distinguished themselves as true leaders and others who have made us tune them out this election season.

The Heroes
 
The Treasurer

Treasurer Doug Ducey’s leadership on Proposition 204 is astonishing.  Before his involvement the tax measure was cruising to what many – including me – believed to be a double-digit win.  But now, from every poll that I have seen – including in swing districts in southern Arizona – it is behind and headed for defeat.

Treasurer Ducey has raised dollars, rallied the major chambers and small business groups and an impressive list of mayors and has articulated a clear case on the ills of what would be the state’s largest tax increase. Win, lose or draw, Treasurer Ducey should be recognized for his efforts.

The real education reformers

One of the savviest and wisest policy minds in this state, Jaime Molera, deserves praise for his gutsy opposition when Prop. 204 first hit the streets.  Also making the case for real education reform is Dr. Craig Barrett, who has made clear that 204 is rotten policy. The retired chairman and CEO of Intel delivers as effective a speech as any educational leader in the country on what it takes to improve our schools.  We all agree we need to improve our K-12 education system.  A proposal that permanently raises the state’s sales tax to the second-highest in the nation without directing dollars to proven education reforms is obviously not the answer, though.

The President and the Speaker

Steve Pierce and Andy Tobin have been paragons of leadership at the Legislature the past two years, and in the last year have led their chambers as Senate President and House Speaker, respectively.  Not only have the two championed passage of the most comprehensive set of job creation proposals in the nation, they have passed responsible budgets and moved the state past divisive issues.  As a result of their work and the vision of Gov. Jan Brewer, Arizona is now ranked as a Top-10 state from Chief Executive Magazine and rated number one by the Kauffmann Foundation’s Entrepreneurial Index.

Both President Pierce and Speaker Tobin have raised hundreds of thousands of dollars to protect viable and valuable incumbents, particularly those now thrust into more competitive districts as a result of the redistricting process.

I find it humorous that some would attack Pierce in particular on fundraising.  He has raised more than anyone in the state, perhaps ever (not counting unions; see below) for legislative races. Compare his Herculean efforts with any challenger or even the state GOP and it is obvious that any criticism is crass political posturing. But if you don’t think the president and speaker have done enough, there’s still time to write a check.

The Goats
 
The Pinal County GOP Brain Trust

Sen. Andy Biggs deserves credit for his role in shaping a strong budget this past year.  With that said, it makes no sense to listen to a few angry and misguided Pinal County GOP poobahs and change horses in legislative leadership when under President Pierce’s direction the Senate has been firing on all cylinders. The thought of replacing Andy Tobin’s steady hand with freshman Steve Smith, no matter his enthusiasm, is absurd.

What is particularly outrageous is that this call has been issued at the end of an election in an area of the state that is so hotly contested. Their time in these last precious hours before the polls close would be better spent working to ensure that candidates like Frank Pratt and TJ Shope have a seat in the House of Representatives come January.

Richard Carmona

Rich Carmona’s ad implying an endorsement from Senators Jon Kyl and John McCain is both deceitful and stupid.  Not to provide proper context from remarks made from our senators over 10 years ago is wrong.  Carmona launched his ad on the 45th anniversary of Sen. McCain being shot down over Hanoi. Instead of taking that day to thank and honor Sen. McCain, Carmona instead chose to use the senator to deceive voters.

The Carmona campaign didn’t do itself any favors when it, in response to Sens. McCain and Kyl’s anger over the ad, dismissed the senators as career politicians. The Arizona Republic nailed it in Tuesday’s editorial when it called the Carmona charge, “pure idiocy.”

Carmona left himself open for a strong counterpunch, and the senators connect in their response ad. The counter ad should be enough to put Congressman Flake over the top and into the U.S. Senate.
 
The name callers

If you want to talk about lazy language, the charges that John McComish is an extremist don’t pass the laugh test.  McComish is a business-minded, independent former chamber executive who supports jobs-friendly legislation and stands strong against the bad ideas.  And hopefully there is a price to pay for the bozos who took a page from the Carmona playbook and suggested that Sen. Jerry Lewis endorsed Russell Pearce.  For anyone awake in Arizona, you’ll recall Sen. Lewis defeated Pearce in a recall race last year. You can Google it.

Final Observations

For those not convinced that paycheck protection is urgently needed to prevent union members’ paychecks from being raided to underwrite political campaigns, one need just to look at what is going on in the Senate races involving Senators McComish and Lewis.

Some feel that appeasement works and that certain unions will play nice if left alone.  Well, after somewhere in the neighborhood of $300,000 in outside dollars -much of it union money – launched against Sen. McComish, we get a sense of how well appeasement works.

If you’re shopping for an early Christmas or Hanukkah gift for Arizona, I recommend paycheck protection legislation.

Glenn Hamer is the president and CEO of the Arizona Chamber of Commerce and Industry.