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Lining Up For A Break

Biotech Companies Hunker Down To Claim 50% Tax Break For Investors

June 27, 2009|By Gus G. Sentementes , gus.sentementes@baltsun.com

The mood in the conference among the companies was jovial. Early on, the various executives hashed out a basic set of rules to make sure people would keep a representative in the building, and not just put their name on a list and leave. Hughes ordered three pizzas for about a dozen people in the room in the late afternoon. And he told them that they could use the facility's exercise room and showers during their stay.

Company officials said they planned on organizing relief shifts, where they would be spelled by fellow employees and other representatives so they wouldn't lose their spots in line. People expected to sleep in the room overnight. The first company in line was BioMarker Strategies LLC, a Baltimore-based company developing testing for tumor cells.

Since its inception three years ago, the tax credit program has given out $18 million to investors, for a total of $36 million in investments in 36 companies, according to DBED. With investors and venture capitalists holding on more tightly to their money, company officials said they're facing a tough climate this year and the tax credit for their investors will help.

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David S. Block, president and chief executive officer of Gliknik, a start-up specializing in drug therapies for cancer and auto-immune disorders, said Maryland's biotech tax credit program was probably the best in the country for fueling the industry.

"Even with the 50 percent tax credit, it's still 10 times harder than last year to raise money," said Block, who was fourth in line.

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