Ohio Leads the Midwest in Biomedical Deals as Spinoffs Emerge from Healthcare Systems
For Immediate Release:
May 31, 2018
COLUMBUS – Ohio’s vibrant biomedical sector led the Midwest bioscience industry in deal flow in 2017, according to an industry group report. Innovation and healthcare excellence are triggering a growing number of healthcare spinoffs that are enhancing the state’s entrepreneurial environment and helping to transform the state’s economy.
BioEnterprise, an organization that assists bioscience companies in Northeast Ohio with growth, released in late March its Midwest Healthcare Growth Capital Report for 2017. According to the report, Ohio led the Midwest region last year with 133 deals, which raised just over $503 million in new equity investments. That was more deals than any of the 11 states in the Midwest and the third highest investment amount behind Illinois and Minnesota.
Cincinnati and Cleveland attracted $223 million and $218 million respectively, more than any other Midwestern cities except Chicago and Minneapolis. Ohio also had one of the Midwest’s largest startup exits in 2017, when McKesson Corp. bought Columbus-based CoverMyMeds for $1.1 billion.
Healthcare and related companies continue to transform Ohio’s economy. Five of the state’s 10 largest employers are in the healthcare industry. In fact, Cleveland Clinic, a national and international healthcare destination, is Ohio’s second largest private-sector employer with 49,800 employees. And Ohio’s healthcare sector is poised to grow even more in 2018.
“Ohio has world-renowned healthcare providers, highly valued startups, impressive R&D, nationally ranked medical programs, well-known healthcare companies, venture capital funding and a collaborative healthcare environment that’s hard to find anywhere else,” said Aaron Pitts, senior managing director for healthcare at JobsOhio. “Experts, innovators and thought leaders in healthcare are taking notice.”
One of the most exciting developments in Ohio during the past few years has been the growing number of spinoffs from the state’s nationally ranked health systems, including Cleveland Clinic, Nationwide Children’s Hospital in Columbus and Cincinnati Children’s Hospital. All three hospitals are known for working with established companies to come up with new discoveries and with innovative leaders to spin off new companies. For example:
- Cleveland Clinic Innovations, the commercialization arm of Cleveland Clinic, has spun off nearly 80 companies since its formation in 2000. One of those spinoffs, Cleveland HeartLab, uses unique biomarker tests to measure inflammation, a more accurate indicator of heart disease.
- Nationwide Children’s Hospital in Columbus has helped launch numerous spinoffs, including Abeona Therapeutics and AveXis, both clinical-stage companies focused on developing gene therapies to treat rare, life-threatening genetic diseases.
- Assurex Health in Mason also focuses on genetics. The biomed company, which spun out of Cincinnati Children’s Hospital, uses a genetic test to personalize medications for people with mental health disorders, including depression, anxiety, chronic pain, post-traumatic stress disorder and attention deficit hyperactivity disorder.
“Ohio has an ideal environment for healthcare companies to flourish,” Pitts said. “The record-high investments reflect the high level of innovation taking placing in Ohio as well as the state’s growing role as a healthcare leader.”
JobsOhio is a private, nonprofit corporation designed to drive job creation and new capital investment in Ohio through business attraction, retention and expansion efforts. JobsOhio works with six regional partners across Ohio: Appalachian Partnership for Economic Growth, Columbus 2020, Dayton Development Coalition, REDI Cincinnati, Regional Growth Partnership and Team NEO. Learn more at www.jobsohio.com. Follow us on LinkedIn, Twitter and Facebook.