Commentary: Techlink- 'B' is for biotech in MBA program

Daily Record, The (Baltimore), Aug 8, 2005 by Shelly Schwartz

They may get prepped in marketing tactics and resource allocation, but business school grads have a lot to learn when it comes to keeping life sciences firms afloat.

Indeed, the typical course load for a master's degree in business administration principally arms students with the tools needed to manage the financial operations of a large corporation.

Pharmaceutical and biotechnology firms, however, are a breed apart - requiring expertise in raising capital, regulatory approval processes, and a working knowledge of the science and technology behind the products and processes. For those looking to enter the life sciences field, the post-graduation learning curve can be great.

Enter: the Healthcare Business Association (HBA) at the University of Maryland's Robert H. Smith School of Business in College Park.

The student-run club, now in its fifth year, offers MBA candidates first-hand exposure to the bio/pharma industry - one of the largest work sectors in Maryland, with 83,000 employees, according to the state's Department of Labor, Licensing and Regulation. Through conferences, partnerships with private industry and collaborative events with other on-campus programs, the Healthcare Business Association provides educational seminars and networking opportunities to tomorrow's work force.

The idea is to help MBA students understand the issues facing these industries and to recognize that MBA students are needed to help sustain these industries, said association president Anuj Desai, a 2006 MBA candidate.

The 35-member program, which was broadened this year to include the health care consulting arena, is divided into two focus areas - venture capital for biotechnology firms and health care technology. Both are able to draw from the university's extensive existing resources.

On issues related to startup firms - raising capital, for example - the club works closely with the school's Dingman Center for Entrepreneurship, which helps small Maryland-based tech and biotech firms find their footing.

Last year, the center helped fund the Healthcare Business Association's venture capital conference. Members this year also will be invited to Dingman Center seminars.

According to Desai, Maryland's biotech industry is largely composed of small companies. In these less-established ventures, flexibility is key for those hired for their MBA credential.

You're going to be doing everything from business development to marketing plans, he said. At a larger company, you'd have a more specific role.

Hollie Kephart, marketing manager for Innovative Biosensors Inc. in College Park, agrees.

The 2004 Smith School graduate and one-time member of the Healthcare Business Association said smaller ventures, such as her pathogen detection company, require employees to adapt to change and to delve into areas your job title doesn't necessarily imply.

In that respect, I think organizations like HBA really provide a supplemental education, she said. And certainly this is a great location to have this program, this area being a biotech hotbed.

Biotech booms

Presently, the Maryland biotechnology industry is growing by 5 percent a year - both in number of new companies and employees, according to MdBio Inc., a nonprofit trade group in Frederick that works with the Healthcare Business Association. Some 360 biotech firms have significant operations in the state. The majority of these companies, about 55 percent, reside in Montgomery County.

It's so important that business students have an appreciation for the unique aspects of the biotechnology industry if they are interested in being a part of it, said MdBio President C. Robert Eaton. These include companies that are very capital-intensive and highly regulated.

For instance, it can take from 10 to 15 years to move one product from concept to market - to the tune of $800 million to $1 billion.

The Biotechnology Industry Organization in Washington reports the U.S. biotech industry spent $17.9 billion on research and development in 2003 alone, the most recent year for which data are available. Nationally, the sector employs nearly 200,000 workers.

Eaton notes that many of Maryland's biotech firms need a solid management team to help attract capital investment, the leading industry obstacle.

Members of the Healthcare Business Association - who have gone on to work for big-name pharmaceutical and biotech firms including New York-based Pfizer Inc.; Amgen Inc. in Thousand Oaks, Calif.; and Gaithersburg-based MedImmune Inc. - are also able to tap into the burgeoning field of health care technology - an issue of growing importance for hospitals and the managed care arena.

The Healthcare Business Association club uses the University of Maryland's new Center for Healthcare Information and Decision Systems. The center is designed to research, analyze and recommend solutions related to information and decision technologies in the health care system.

There's a need to incorporate technology into health care to bring down costs and improve patient care, Desai said. A lot of pharmaceutical companies and big consulting firms are partnering with Smith School to understand how this technology can be implemented in hospitals.