Incubate Letter in Opposition to CT SB-13
See Incubate's letter to Connecticut legislature opposing SB-13.
Dear Governor Lamont, Speaker Ritter, Leader Rojas, Leader Candelora, President Looney, Leader Duff, Leader Kelly, Chair Lesser, Chair Wood, Ranking Member Hwang and Ranking Member Pavalock- D’Amato:
I write today on behalf of Incubate, a coalition of America’s early-stage life sciences investors, about Governor Lamont’s proposed drug pricing legislation that would implement reference pricing. We are deeply concerned that, if enacted, SB-13—which is nearly identical to the price control bill that failed in Connecticut last year—would chill the innovation taking place in Connecticut’s robust life sciences industry, harming the state’s economy and jeopardizing patient access to needed medicines.
Over the last several years, Incubate has worked diligently to ensure that federal lawmakers in Washington know how corrosive price controls would be to the American biopharmaceutical ecosystem. Our members are clear on this point: the risk capital required to develop new drugs cannot be sustained if the U.S. embraces price controls, and without capital we will no longer be the global leader in innovation that so many patients rely on.
With this in mind, we urge you to protect Connecticut’s life sciences community and reject harmful proposals like those included in SB-13.
Investors know the odds of any particular research venture succeeding are dismally low. Yet they pour money into fledgling biotechs anyway, because a single successful medicine could deliver returns that more than make up for the losses on other, failed startups. But policies like those included in Governor Lamont’s SB-13 would fundamentally alter that investment calculus. Price setting schemes like SB-13 would inevitably result in drastic cutbacks in R&D spending in Connecticut—ultimately eliminating jobs, damaging the economy, and leaving patients with fewer treatment options.
Incubate closely tracks the life sciences venture capital deals taking place across the country. In the table below, I’ve provided details on the deals that have occurred over the past year in Connecticut. Each of these transactions have not only furthered scientific discovery, but they have funneled money, jobs, and economic opportunities into the state. By rejecting SB-13, you are supporting Connecticut’s life sciences industry, the tens of thousands of constituents who rely on it for jobs, and the patients in the state for whom biopharmaceutical innovation provides much-needed hope.
Our Board of Directors, advisory board, and the hundreds of investors, entrepreneurs, and scientists in our network will continue to educate state and federal policymakers on the role of venture capital in bringing promising treatments to patients in need, and why policies like those in SB-13 are misguided.
We welcome the opportunity to discuss this policy and its damaging effects with you further. Please do not hesitate to reach out to Ashlyn@incubatecoalition.org if you have any questions or visit our website at www.incubatecoalition.org for any additional information.
Life Sciences Venture Capital Transactions, Connecticut, 2021-2022
|2.8.22||Trialjectory||Trialjectory, a Stamford-based cancer care decision-support platform, raised $20m in Series A funding. Insight Partners led and was joined by JAL Ventures and insiders Contour Venture Partners, Rho Capital and TIA Ventures.|
|7.29.21||Rallybio||Rallybio, a New Haven, Conn.-based rare disease biotech founded by ex-Alexion execs, raised $81 million in its IPO. It priced at the low end of its $13-$15 range, will list on the Nasdaq (RLYB) and had raised $213 million from firms like 5AM Ventures, Viking Global, Rise fund, F-Prime Capital Partners, Tekla Capital Management, Canaan Partners, New Leaf Venture Partners and Connecticut Innovations.|
|7.21.21||IsoPlexis||IsoPlexis, a Branford, Conn.-based developer of single-cell functional proteomics, filed for an IPO. It plans to list on the Nasdaq (ISO) and raised nearly $200 million from Connecticut Innovations, Danaher, BlackRock, Northpond Ventures, Perceptive Advisors, Spring Mountain Capital and North Sound Ventures.|
Rallybio, a New Haven, Conn.-based rare disease biotech founded by ex-Alexion execs, filed for an IPO. It plans to list on the Nasdaq (RLYB) and raised $213 million from firms like 5AM Ventures, Viking Global, Rise fund, F-Prime Capital Partners, Tekla Capital Management, Canaan Partners, New Leaf Venture Partners and Connecticut Innovations.
Healthcare Royalty, a Stamford, Conn.-based investment firm that buys royalty interests in biopharmaceuticals, filed for an IPO.
Inbox Health, a New Haven, Conn.-based patient payments startup, raised $15 million in Series A funding. Commerce Ventures led, and was joined by Vertical Venture Partners, Healthy Ventures, Collaborative Fund, Fairview Capital, CT Innovations, and I2BF Global Ventures.
Cybrexa Therapeutics, a New Haven, Conn.-based oncology biotech, raised $25 million in Series B funding from HighCape Capital and Elm Street Ventures.
Peloton Equity, a Connecticut-based private equity firm focused on growth capital investments in the healthcare industry, has raised $152.25 million for its second fund.
Hyperfine, a Guilford, Conn.-based maker of analytics software for medicine, has raised $90 million in Series D funding from GV, Nextrans, Axiom Associates, Huami, Colle Capital, LSS, and Altium Capital.
Health Enterprise Partners
Health Enterprise Partners invested in Aware Recovery Care, a Wallingford, Conn.-based in-home addiction treatment company.
Signify Health, a Norwalk, Conn.-based healthcare enablement platform backed by New Mountain Capital, filed for a $100 million IPO. It plans to list on the NYSE (SGFY) and reports a $15 million net loss on $417 million in revenue for the first nine months of 2020.
Incubate is a 501(c)(4) organization of venture capital organizations representing the patient, corporate, and investment communities. Our mission is to ensure patients continue to reap the benefits of the unrelenting innovation spurred by venture capital investment in the life sciences industry and protected by the American system of intellectual property.