June 24, 2020

This paid piece is sponsored by South Dakota Biotech.

From homegrown biotech companies to large organizations that might be looking for new locations, there are numerous opportunities to grow the bioscience industry in South Dakota following the pandemic.

South Dakota Biotech executive director Joni Johnson is directly connected to the broader biotech community as the state affiliate for the international BIO organization and said the state and the companies here are taking on a greater profile in the bioscience world thanks to their work during COVID-19.

We learned more from her about the state of the industry and its potential to become even more of an economic driver for South Dakota.

How would you describe the state of bioscience in South Dakota today, compared to even what it was at the beginning of the year?

The beginning of 2020, the industry was plugging away and continuing to grow. Then, COVID hit, which sent our companies reeling, some in a positive way, others not. Companies like SAB Biotherapeutics, whose platform is discovering treatments for infectious disease, were thrust into overdrive. Others, like university research and those who provide products for elective surgery, hit the brakes.

COVID caused some delays in early-stage companies due to shortage of samples since elective procedures and tests stopped. However, this provided an opportunity for them to catch up on administrative duties and policies.

With a few exceptions, the industry has weathered the storm fairly well.

What has COVID-19 and related research shown about the bioscience industry in general and more specifically about South Dakota companies? Has it highlighted our strengths or showed us opportunities?

Now, more than ever, I think society has an appreciation for science innovation and the truly essential work done in the field. No longer is it considered bad or evil, rather critical for our safety and well-being. I also think society has a better understanding of how difficult treatments and vaccines are to develop and manufacture, along with the magnitude of dollars it takes to get a drug to market.

Moreover, the industry came together in ways never before seen. Companies that were typically competitors became collaborative in order to find a treatment or vaccine. The federal government removed regulatory barriers that hurt innovation while keeping strict safety standards. They also helped fund at-risk manufacturing to a handful of U.S. companies to ease the financial burden of producing their product while still in clinical trials.

These are good for people to appreciate. However, COVID has put a spotlight on supply chain issues. With much of the manufacturing done offshore, we realized how dependent we are on other countries. I believe onshoring pharmaceutical manufacturing to South Dakota is just one of the opportunities we have in light of the pandemic.

Many of our South Dakota companies found opportunities to pivot their technology to address COVID-related needs – from diagnostic testing, using their product to make hand sanitizer, using their relationships with other countries or manufacturers to help fill PPE shortages or taking advantage of their already strong relationship with federal agencies, such as the DOD, NIH and BARDA, to advance their technology.

You recently attended the virtual BIO International Convention, which normally is a huge trade show. What were your takeaways from that, specifically for South Dakota?

Although the BIO International Convention became BIO Digital this year, we still had great success. In fact, more companies were able to attend as the virtual platform allowed them greater flexibility to meet with companies across the globe right in their home office. Takeaways are biopharmaceutical companies are eager to work with emerging R&D companies no matter where they are located. Therefore, the timing is perfect for us to both grow our early-stage companies and recruit others here.

Also, the FDA has made many changes to their regulatory processes in order to fast-track a treatment and vaccine. This has allowed the agency to determine which processes are necessary and which are burdensome. Once the dust settles on COVID, the FDA intends to review their guidelines and reach out to industry to see what should stay of the regulatory process and what should go.

What kind of opportunities do you see for South Dakota to recruit talent given our enhanced profile in the industry?

Honestly, I don’t think we’ve had much trouble recruiting a workforce outside of South Dakota. In addition, our universities do a nice job of talking with Industry on where their gaps are and what programming may be beneficial to serve the workforce. Hopefully, as biotech companies continuing to grow, there will be an opportunity to keep more graduates in the state for jobs that fit their technical skill sets.

As you look toward the rest of the year, what will you be watching for in the industry? What’s next?

It will be interesting to see what changes companies keep and how they will position themselves to gain access to capital or develop new partnerships. I look for companies who are frustrated with the politics in the biotech hubs – Boston, California, Minneapolis – to consider moving to a state that is tax-friendly, business-friendly and regulatory-friendly with an eager, talented and robust workforce.