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MiLSEA organized a grand celebration of the 15th year anniversary of a historic life science incubator
Lt Governor, Garlin Gilchrist speaking at the MLSIC 15th year anniversary organized by MiLSEA
Did you know that a building in Michigan ceased to be a concrete structure and transformed itself into a catalyst for major economic and social progress? How did that happen? It all started fifteen years ago when a small group of passionate individuals and organizations came together with a shared vision to empower entrepreneurs in the Southeast Michigan region. They converted a former corporate asset into a launch pad for entrepreneurs to pioneer trailblazing businesses solving some of society's most pressing challenges. Today, as we celebrate the 15th anniversary of Michigan Life Science and Innovation Center (MLSIC), we are proud to look back on the countless innovators who have passed through its doors and gone on to make a real difference in the world. What follows is their story. It is also MLSIC's story because they are interconnected!
History
In 2008, Pfizer closed its research and development facilities at three locations in Michigan, including the building currently known as the Michigan Life Science and Innovation Center in Plymouth. This move resulted in a tremendous setback to the local community through the loss of jobs and revenues. Roger Newton, founder of Esperion Therapeutics, however, saw things differently. He saw it as an opportunity to spur innovation in the community. Together with the late Mike Finney, then CEO of Ann Arbor Spark, they collaborated with Michigan Economic Development Corporation (MEDC), Ann Arbor Spark, and Greater Wayne Economic Development Corporation to purchase the building from Pfizer for $4.5M in May 2008. Not a bad deal if you consider that just a few years back, Pfizer had spent around $11.5M to upgrade the 60,000 sq. ft former manufacturing site into a state-of-the-art research center!
Thus, MLSIC was born as a nonprofit organization providing entrepreneurs with clean wet lab spaces, flexible leasing options, networking and mentoring opportunities with fellow innovators, ample parking space in the Detroit-Ann Arbor corridor, and access to high-tech conference rooms and office amenities, all at a reasonable cost.
"We envisioned MLSIC as more than a startup incubator. We saw it as an innovation center with a broader scope of providing hands-on support to individuals and organizations in pushing business and technology ideas to new frontiers," says Roger Newton, co-discover of Lipitor and one of the founding fathers of MLSIC.
He led the way with Esperion Therapeutics, and soon, companies such as Algal Scientific, Velesco, Lycera, and Next Gen Therapeutics pursuing drug development and providing life science services and products populated MLSIC.
MiLSEA team with the MEDC CEO, Quentin L. Messer Jr.
Impact of MLSIC
For 15 years, MLSIC has upheld its founding principles of driving innovation and socioeconomic growth in the state. So far, around 50 startups have graduated from here, which have created hundreds of jobs, attracted millions of dollars of investment, and generated a combined value of more than a billion dollars for Michigan. Several MLSIC alums have achieved successful exits as initial public offerings (IPOs) or have been acquired, with valuations ranging from a few million to over a billion dollars.
Apart from the economic impact, numerous advances in healthcare can be attributed to MLSIC alums. For instance, Esperion Therapeutics developed the drug Nexletol, which lowers LDL cholesterol levels in the blood in statin-intolerant people. A recent clinical trial of 14,000 randomized placebo-controlled study has shown that Nexletol lowers the major risk of cardiac events by 13% and reduces heart attack risk by 23%. This news is welcome to many suffering from significant side effects of statin use, the most widely prescribed medicine to prevent heart attacks.
Delphinus, another MLSIC alumnus, developed a novel breast cancer screening and detection tool called SoftVue. SoftVue is a whole breast ultrasound imaging system that uses surface tomography to produce highly detailed, 3D images of breast tissue without the need for compression and X-ray exposure associated with traditional mammography. Their technology is premarket (PMA) and approved by FDA as an adjunct to mammography for dense breast screening.
Celsee Inc., started by interns of Esperion Therapeutics, designed a unique microfluidic platform to capture rare circulating tumor cells from blood as an alternative to painful and invasive biopsies. They were awarded as one of the Top 10 Innovations in the nation by the Scientist magazine in 2015.
The residents of MLSIC serve as shining examples of crisis innovators. In 2007-2008, when Southeast Michigan was rocked by a double blow from Pfizer closure and economic downturn, former scientists from Pfizer formed startups such as Esperion Therapeutics and Velesco Pharmaceutical Services. Velesco delivers expertise in formulation and analytical method development and the manufacture of cGMP supplies to support clinical trials of new medicines.
"Velesco Pharmaceutical Services was established by former Pfizer employees who saw an opportunity to hire highly experienced pharmaceutical researchers while utilizing the assets and facilities left behind by Pfizer's departure," reports Lisa Crandall, Senior Director of Pharmaceutical R&D at Pace Analytical Life Sciences, formerly a senior scientist at Velesco.
Another company that exemplifies the ingenuity of entrepreneurs during times of adversity is RapidBio, which formed in response to the Covid 19 crisis. They began as a three-member startup in early 2020. They grew to more than 100 employees in just under two years, with MLSIC providing them the flexibility of space and access to Bio Safety level II facilities. RapidBio Covid tests were responsible for keeping our healthcare centers and schools open during the height of the pandemic.
"When Covid 19 started to spread in Michigan, test results took more than 48 hours. RapidBio reduced that time to below 20 hours from sample collection to results," reports John Cunningham, CEO of RapidBio.
The impact of MLSIC entrepreneurs transcends the geographic boundaries of Michigan and its neighboring regions. By spearheading the development and commercialization of novel technologies, they solve some of the most pressing healthcare problems and pave the way for a healthier, more prosperous society, not just today but also for tomorrow.
A Self-Sustained Ecosystem
Vibrant startup ecosystems such as the Bay area and Boulder place entrepreneurs at the heart of the system, with their leadership driving their growth. MLSIC epitomizes this concept because its foundation was built by an entrepreneur's foresight. A robust support system of mentors, investors, and consultants, and connections with the government, nonprofits, and universities, enrich the network structure of this Innovation Center. As MLSIC is entering a new phase of evolution, where it reaffirms itself as a leader of innovation in this region, we look back at what things have worked in the past and the improvements we need to keep its edge.
In 2010, two interns from Esperion Therapeutics approached its CEO, Roger Newton, with their new idea for a startup. They were recent graduates with almost no credibility and support system outside MLSIC. Roger not just mentored them but became their first investor and board member. Furthermore, Celsee founders set up their first lab at MLSIC with supplies gathered from the Esperion storage room. When they could not afford expensive lab equipment, all they had to do was ask fellow scientists at MLSIC for help. These colleagues provided them with the necessary equipment and imparted valuable training, demonstrating that knowledge transfer is an invaluable byproduct of co-tenancy. As MLSIC continues attracting new innovators, leveraging its existing network of entrepreneurs and scientists who have traversed the path before them would be wise.
This benevolent aspect of MLSIC culture is extended even to tenants who traditionally don't fit the definition of an innovative organization but fill a critical supporting role in the startup ecosystem. Take, for example, the nonprofit Michigan Paralyzed Veterans of America. Their mission is to enhance the quality of lives of veterans with spinal cord injury or disease, as well as all citizens with disabilities, by advocating for civil rights, assuring quality health care, and supporting continued recreation, research, education, and healthy living. Its Executive Director Jaclyn Kochis mentions, "Around five years ago, when we had to vacate our building in Novi, we found a new home in MLSIC. The warm embrace of the MLSIC community was nothing short of remarkable - they not only welcomed us with open arms but also extended their unwavering support during the trying times of the pandemic. Through their concerted efforts, we were able to raise funds and secure vital resources for our veteran community from hospitals and other organizations. The MLSIC community has become our family."
Fred Earl, MLSIC’s Managing Director of 17 years since its Pfizer days, echoes this family sentiment. He has often gone above and beyond his duties by taking care of MLSIC tenants by accommodating their requests, mentoring, and even sponsoring networking events out of his pocket. When asked why he does it, he gets emotional, “At MLSIC, we consider ourselves a close-knit family, and just like any family, we strive to do whatever we can to support each other.” To conclude, he recites MLSIC’s mantra, “Your company’s success is our success.”
Continuing in the same vein, we asked several MLSIC entrepreneurs about their top concerns, and they were almost unanimous in their answers. To support top-notch innovation, they said, you need: access to resources and exceptional talent. MLSIC does a great job as far as talent is concerned due to three factors. First, the location of MLSIC, roughly halfway between Detroit and Ann Arbor, makes it accessible to people from both cities. The presence of top Universities, the University of Michigan on one side and Wayne State and Karmanos Cancer Center on the other, ensures an abundant talent pool. John Cunningham, CEO of RapidBio, credits MLSIC’s unique location for their ability to scale up from just 3 to 100 skilled scientists in under two years. Second, co-tenants of MLSIC provide an excellent networking source for anyone looking for qualified workers. We heard that the cafeteria in the middle of the building is ideal for these conversations. Third, the dynamic nature of startups forms a self-sufficient feedback loop. As companies graduate or restructure out of MLSIC, they provide the labor input for new entrants looking for expansion.
Access to capital remains a big challenge for entrepreneurs fueling their startups' early and growth phases. Due to the adverse economic events of the last few years, several traditional funding sources have dried out. For instance, MLSIC can boast about producing two $500,000 grand prize winners of the world’s largest business plan competition, Accelerate Michigan: Celsee Inc. and Algal Scientific. Recently, we learned that Accelerate Michigan has been discontinued, a big blow to entrepreneurs relying on the competition as a source of funding and business exposure. Furthermore, access to private investment and debt financing has also become challenging due to the economic downturn. But all is not lost, as this gloomy picture has some bright spots.
Consider these two parallel perspectives. Geoff Horst, the founder of Algal Scientific, tells us, “Entrepreneurs need exposure to serious investors. Even an opportunity to present a five-minute pitch to a group of high-quality investors is better than extensive time spent in the company of people who cannot support your ideas or goals.” On the other side, you hear a familiar complaint from investors about the lack of quality deal flow. This issue presents a unique opportunity for MLSIC to act as a forum to convene both sides at the same table. Train and empower entrepreneurs on the one hand and curate the investors on the other hand to elevate the quality of their interaction. Small, focused meetings often provide more value to their participants than large events with no clear purpose. How well MLSIC handles such critical interactions will determine its place as a leading innovation center and serve as a guide to other ecosystem constituents.
But organizing such meetups requires capital too. As we know, there are no free lunches in this world! Fortunately, MLSIC is financially self-sufficient to conduct its everyday operations. The last four-year data from the annual reports of MEDC indicate that this center has been consistently profitable, even during the pandemic periods. Some of these profits could be used to stimulate entrepreneurial activities at MLSIC, such as pitch meetings, coaching sessions, exhibitions, and conferences. MLSIC proceedings can also be offered as grants or investments that can fill some of the gaps left by the disruption of other traditional sources of capital.
As we saw, there is a lot to celebrate the achievements of MLSIC in these last fifteen years of its existence. The triumph of MLSIC is a testament to the prescience of its founders and the resilience of its management and current residents. However, times are changing as startups face new problems in the post-pandemic era, which means the supporting structures must grow and evolve to meet the challenges. In its transition to a new period of growth and development, it will be crucial for MLSIC to build upon its past successes and embrace new opportunities to enhance its impact on the community. MLSIC entrepreneurs who have successfully navigated the challenge of building teams and commercializing breakthrough technologies offer a powerful resource for replenishing their leadership. Improvements in the operations and careful utilization of its resources to empower the entrepreneurial community will further spur innovation. With new leadership and ecosystem partnerships, innovative ideas, and a continued commitment to excellence, MLSIC can continue to be a beacon of hope and a force for positive change in the years to come for Michigan.
MiLSEA is grateful to all the honorees at the 15th Anniversary of MLSIC!
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