The Pittsburgh Life Sciences Greenhouse yesterday said it has awarded a total of $777,721 in grants to local researchers in hopes of stimulating commercial product development and collaboration between biotech companies and the region's universities.
Separately, the Greenhouse confirmed plans to become a "membership organization," collecting $500 each in annual dues from companies that either want to participate in its programs or want to support them.
The grants represent the first round of funding from the Greenhouse's Technology Development Fund, which awarded $277,774 of the total and its Collaborative Research Fund, which awarded $499,947.
The technology development funds are designed to help researchers examine the commercial potential of their projects. The collaborative grants, which require matching monies, are designed to bring support from more established biomedical companies to the region's universities. The winners of the technology development grants were scientists at Carnegie Mellon University, West Penn Hospital and the University of Pittsburgh.
The collaborative funds went to Renal Solutions, which is developing portable kidney dialysis machines; Immunetrics, which is working on technology to treat inflammatory diseases; SpectraGenetics LLC, which develops technology to assist doctors in selecting cancer treatments; Innovaceuticals, which develops tools to predict drug metabolism; and Verimetra Inc., which develops "smart" surgical tools.
All of the collaborative grants went to fledgling companies, most of which emerged from local university research. Greenhouse spokeswoman Charlotte Rapkin said future collaborative funding rounds would target more established biomedical companies that don't usually tap the region's universities.
The Greenhouse's interim chief executive, Don Smith, said the Greenhouse had decided to begin charging membership fees in part because it hoped to draw support beyond its core constituency of biotech start-ups.
In addition, being able to recruit members would help the Greenhouse, which was started with $33 million in state funds, to prove to foundation backers who have pledged more than $60 million in additional support that local companies find value in its programs. The foundations "wanted to see some skin in the game" from local companies, Smith said.
To avoid working in competition with or at cross purposes to other economic development organizations with similar missions, Smith said cooperative agreements have been worked out with the Pennsylvania Biotechnology Association and the Pittsburgh Technology Council. He said the statewide association will give start-ups that join the Greenhouse two free years of membership. Members of the local technology council will pay only half of the Greenhouse's normal dues.
Smith said the Greenhouse chose to make the annual dues $500 because it would demonstrate members' interest but not be burdensome to young companies.
The Greenhouse and the local tech council also have decided to collaborate in offering programs to biotech companies. Under their agreement, the tech council will form a life sciences network, replacing the biomedical network it has run in the past. The Greenhouse will provide financial support for its programs, Smith said.