Chairman's Letter

This is an exciting time for biotechnology as we see a growing number of new diagnostic tests and treatments helping patients in need while breakthroughs are continuing daily in our laboratories.

And yet, this is a challenging time. Decisions being made on Capitol Hill and Beacon Hill will have a tremendous impact on the life sciences industry for years to come. Some proposals will encourage even more innovation, allowing the sector to grow and thrive while others threaten our forward momentum.

Together, through the Massachusetts Biotechnology Council, our voice is being heard. We are reaching policy makers.

Significantly, Gov. Deval Patrick, House Speaker Salvatore DiMasi, and Senate President Therese Murray put forth a $1 billion Life Sciences Initiative, which is currently being debated in the legislature.

We strongly support this initiative, its concepts, priorities and proportional allocation of spending and benefits. It sets aside $500 million for capital spending. Another $250 million would be used for grants and financing to encourage companies to grow and add jobs. The plan also includes $250 million in tax credits and incentives.

The initiative also contains key changes to the tax code that will make our state more appealing to those here, as well as those considering a move. This plan would:

  • Eliminate the mathematical test to prove R&D status.
  • Eliminate "entity discrimination", which denies existing tax benefits to partnerships and LLCs.
  • Create a mechanism to redeem earned but unused tax credits.
  • Extend the NOL carry forward from 5 to 15 years.
  • Exempt sales tax on bricks and mortar used in life sciences R&D and manufacturing.

While we work to pass this significant initiative, we will stand against measures that threaten the best interests of the public and our industry. There are a number of proposals this legislative session that would restrict sales and marketing activities and make it much more difficult to access prescriber and de-identified patient data. The MBC will continue to vigorously oppose this sort of legislation through testimony and education.

We will also continue to support efforts of The Massachusetts Biotechnology Education Foundation to improve science education throughout the state. This past summer, for example, 125 high school science teachers and administrators completed the foundation's BioTeach Biotech boot camps, which train teachers how to implement three biotechnology courses as part of their science curriculum. Workforce development is an ongoing concern of the MBC, and the MBEF is an extremely important program that facilitates interest in science careers. I look forward to working closely with you as we shape our agenda and pave the way for innovation in Massachusetts,

Sincerely,

Mike Webb Board Chair, Massachusetts Biotechnology Council President and CEO, Ascent Therapeutics

Also see Robert K. Coughlin's Letter from the President or learn more About the MBC.