Maryland?s biotech and bioscience industry is poised to grow stronger and become an even more important sector of the state?s economy, according to two recent reports.
The industry could top $4 billion in future revenue ? and that?s just for the publicly traded biotech firms in Maryland, said Rene Salas, a partner with the life sciences division of Ernst & Young.
“In 2006, revenues for the publicly traded biotech companies in Maryland are projected at $2 billion,” Salas said.
He added that the biotech industry is fairly young in Maryland, which could mean mergers and consolidations as the industry weeds out the marginal players.
“Most of the private biotech companies will develop either through acquisitions or going public,” Salas said.
“Three companies were formed in just the past 12 months.”
As part of its annual biotech report, called “Beyond Borders,” Ernst & Young, a global business accounting, research and advisory firm, said 2005 was the best year yet for the biotech industry.
“The collective revenues of the world?s publicly traded biotech companies grew by 18 percent 2005, reaching an all-time high of $63.1 billion, and crossing the $60 billion threshold for the first time,” the report released last week said.
The Mid-Atlantic region, which includes Maryland, Virginia and the District of Columbia, has 19 publicly traded biotech companies.
The 19 companies had combined revenue of $1.6 billion in 2005, which was down about 5 percent from 2004. The Mid-Atlantic biotech companies have a market capitalization of about $15 billion.
Although Maryland has 19 public biotech companies, it has more than 350 biotech companies.
Efforts by Johns Hopkins and the University of Maryland, Baltimore County, to develop the industry are fueling growth, officials with the Maryland Chamber of Commerce said. Biotech parks have been established near the universities.
And Baltimore has become a hot spot for biotech, according to a report by the Greater Baltimore Committee, which cited development of the East Baltimore Life Sciences Technology Park near Johns Hopkins University as an example.
