Many people assume the Medical Alley Association is just Medical Device, but this is not true. In fact, the first chairman of the association was Mr. Lee Berlin, CEO of LecTec, a transdermal drug firm.
So why would a bio or pharma company join an association that includes one of the largest medical device communities in the US? We hear 4 reasons regularly - connections to peers, public policy to advance the industry, community building to secure Minnesota's place in the bio/pharma world and cost savings from our purchasing group.
Many in the biotech and pharmaceutical community think they are the only ones! Every other company is in Cambridge or San Francisco. Through networking events and introductions Medical Alley helps you to find suppliers, partners, investors, talent and community. We even know of biotech incubators and accelerators in Minnesota!
The health industry is highly regulated. For small biotech and pharmaceutical companies, public policy can break a company but rarely do they have resources to manage issues themselves. For large companies, there is power in numbers and in having access to Medical Alley staff who know the elected officials. And things like the angel investor tax credit and refundable R&D credit help small companies stretch their resources.
Many in the biotech and pharmaceutical community in Minnesota want to see more people and companies in the state. Membership gives them a way to support their fellow startup, help in recruiting larger companies and help in recruiting/welcoming new people.
Sometimes the deal closer is cash money. We manage a $500 million/year purchasing group that includes suppliers like VWR, FedEx and CHUBB. Members save an average of $30,000/year, more than paying the cost of membership. Bio and pharma companies save even more on average – one of our members saves nearly $2 million/year!
Are you in a pharmaceutical or biotech company (member or not) and want to know more? Drop a note to firstname.lastname@example.org.
Not only do we have over 125 biotech and pharmaceutical members, they have a renewal rate of around 99%. Most of the 1% to 2% that drop out each year are startups that have closed shop. We must be doing something right! And we could be doing more – your feedback is always appreciated.