A national top-10 venture capital firm driving technology innovation and growth in Pennsylvania

The Ben Franklin Technology Partners of Northeastern Pennsylvania (BFTP/NEP) is a technology-based economic development organization that creates and retains highly paid, sustainable jobs by linking companies with experts, universities, funding, and other resources to help them prosper through innovation. BFTP/NEP’s strategy encompasses three key areas:

1. developing early-stage technology-oriented companies,

2. helping established manufacturers creatively apply new technology and business practices to achieve industry leadership, and

3. promoting an innovative community-wide infrastructure that fosters a favorable business environment for high-growth companies.

An initiative of the Pennsylvania Department of Community and Economic Development and funded by the Ben Franklin Technology Development Authority, BFTP/NEP is part of a four-member statewide Ben Franklin network that has returned $3.60 to the state treasury for every $1.00 invested in the program. Pennsylvania’s Ben Franklin Technology Partners (BFTP) have helped client companies create and retain thousands of good jobs, launch hundreds of new companies, and invent products and processes that improve the human condition. In light of its success, BFTP has earned awards for excellence in technology-based economic development from the International Economic Development Council and the U.S. Department of Commerce/Economic Development Administration, and recognition as one of the top 10 seed venture capital firms in the nation as ranked by Entrepreneur magazine.

Mark Dillon spoke with citybizlist publisher Edwin Warfield for this interview.

EDWIN WARFIELD: Could you describe the company for us?

MARK DILLON: Bio Med Sciences is a company that focuses on innovations in skin. There are three areas where we’re active. The first is wound care: this would be when you have an open wound, typically a burn injury where it is bleeding. It can get infected, it’s treated in an operating room-type environment. The second area that we work in is scar management, and that’s the later phase; once the wound is closed, there’s no opportunity for infection, but now you have scarring occurring. Particularly with burn injuries where you have wide areas scars, unlike an incisional injury, these wide area scars can be very limiting on functionality, range of motion and so forth - plus disfiguring, of course. And then the third area that we are getting into a little bit more recently is what we call “renewing technologies,” which is more in the cosmetic area for wrinkle reduction and applications of that sort, where we put an active ingredient into the product to tighten skin.

Q. What differentiates your products and technology?

A. The way that it worked out was that our very first initial product did not turn out to be very commercially viable. It looked really interesting; it was unique. I was very naïve about what marketing was going to be about. As an engineer, I didn’t have the business background. I thought, “Well, once I get the product manufactured and get regulatory approval, it will sell.” So, from that point, we moved into a new line of products in treating scars. The initial product was a wound dressing, a temporary skin replacement, and from there we moved into making products for burn rehabilitation, the process of managing scarring and restoring function, and we got a lot more traction there. That was a key turning point for the company. At one point, we licensed our technology to Pfizer and they brought it out under the Neosporin brand name. That was a great shot in the arm for us, but a few years later, Pfizer sold their consumer products division to Johnson & Johnson. We were at the time selling about $10 million a year in revenue and this product—which I thought was great—but to J&J it was not worth their time.

Q. Describe your work with Ben Franklin Technology Partners.

A. I spent the first couple of years organizing, researching, making samples, literally in a frying pan in my apartment kitchen and finally got the technology to a point, once the first few patents were issued. I was put in contact with the people here at the Ben Franklin Technology Center. As it turned out, there was some space in the old incubator building. I moved the operation there and we started off with less than 1,000 square feet and just a little tiny operation. That was enough to get us through the process development and regulatory approval process. From there, we went on to just grow. Now we’re 17,000 square feet - which is still relatively small, with 20 employees - but we’re selling to 50 foreign countries; we have about 50 patents, including the international ones; and the company is doing well. We’re healthy and profitable and paying dividends and returning the investment.

Ben Franklin was always a great sounding board. Certainly, the biggest area of contribution is in credibility of having been admitted into the program, and then resources. And so in that sense, at a very economical cost, we had the resources of a major corporation.

ABOUT OFFIT KURMAN

Offit Kurman is one of the fastest-growing, full-service law firms in the Mid-Atlantic region. With over 120 attorneys offering a comprehensive range of services in virtually every legal category, the firm is well positioned to meet the needs of dynamic businesses and the people who own and operate them. Our eight offices serve individual and corporate clients in the Maryland, Delaware, New Jersey, and Northern Virginia markets, as well as the Washington DC, Baltimore, Philadelphia, and New York City metropolitan areas. At Offit Kurman, we are our clients’ most trusted legal advisors, professionals who help maximize and protect business value and personal wealth. In every interaction, we consistently maintain our clients’ confidence by remaining focused on furthering their objectives and achieving their goals in an efficient manner. Trust, knowledge, confidence—in a partner, that’s perfect.

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Edwin Warfield, CEO of citybizlist, conducts the CEO Interviews.

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