The Life Sciences Discovery Fund — an investment vehicle used to fund early-stage biotechnology and life science research in the state of Washington — will be phased out over the next two years after funding for the program was cut from the state’s budget.
In an interview with GeekWire, Life Sciences Discovery Fund executive director John DesRosier said that the funding woes will hurt the early-stage biotechnology and life sciences industry in the state.
“The kind of funding that we supply really, there aren’t many sources for it especially in the state of Washington. Both promising projects at startup companies as well as things trying to emerge out of the university or places like Fred Hutch,” DesRosier said. “There’s just not going to as much money there for them to try to transition that into the commercial world.”
The fund has an active portfolio of about 50 active grants, and those grants will remain intact.
“We will just be working to wind those down and see that the work is completed under those grants,” he said. But starting July 1, the Life Sciences Discovery Fund will no longer make new grants.
Ironically, the decision by the state legislature comes after the State of Oregon agreed to commit $200 million in state funds to the Oregon Health & Science University, part of a bigger $1 billion effort that includes $500 million from Nike chairman Phil Knight.
WBBA president Chris Rivera made one last final plea to save the Life Sciences Discovery Fund on Tuesday morning at the Life Science Innovation Northwest conference in Seattle.
“There has been a request to sweep $11 million from their budget into the general fund,” said Rivera. “If you are interested in having the governor veto that, please send an email to the governor’s office.”
Rivera added that they do not plan to quit, despite the setbacks with the state legislature.
“We will not give up,” said Rivera, adding that they will continue to work to find a sustainable model for the Life Sciences Discovery Fund.
If Gov. Jay Inslee vetoes the provisions that would push $11 million from the fund into the general fund, the Life Sciences Discovery Fund would have enough money to continue making grants through the next year.
“The state’s been fighting this budget crisis for the fifth straight year now so we’ve been through this before and it’s just unfortunate that the legislators have to make a decision between education or innovation, or healthcare or innovation, it’s really too bad that it’s come to that,” said DesRosier. “But I understand the position they’re in where they have to make though decisions, but we’ve said that we represent a pretty small fraction of the state budget and what we fund and what we do is really forward looking into the future. It’s important to have a high-quality educational system but it’s also important to make sure that those kids when they finish their studies are going to have jobs and that’s part of what our grants do.”
Previously on GeekWire: Funding for Life Sciences Discovery Fund at risk, again, despite program’s success
