Out-of-State Investment Driving Growth In the Ohio Life Sciences

Despite economic challenges due to inflation and other pressures, out-of-state investors drove growth in the life sciences statewide in the first quarter of 2024.

Twenty-six life sciences companies raised $271 million in the first quarter of the year, according to our new member investor report, with specialties ranging from medical devices to kidney transplants to clinical trials. That figure includes $126 million in medical devices, $116 million in therapeutics and $29 million in healthcare business and software.

While investments are flowing more slowly than normal because of a challenging economic environment — inflation, interest rates, global security and the upcoming U.S. presidential election — multiple life sciences companies in Ohio have successfully raised funds through initial public offerings.

Our report measures the success and opportunity in Ohio’s rapidly growing life sciences sector. Businesses and investors are facing a challenging economic environment, but challenging times have led to some of our society’s best breakthroughs and most successful companies. We should be proud that this kind of lifesaving work is well underway in Ohio and that it will continue no matter how difficult the economy might be.

I'm impressed by the fact that this growth is occurring all across our state from Cleveland to Columbus to Cincinnati. Companies in smaller cities also saw great success — including Akron, Aurora, Beavercreek and Middlefield. 

We also note four national trends to watch in the life sciences:

1. Artificial intelligence, which has the potential to accelerate drug development and to quickly advance consumer-focused digital health companies.

2. Glucose monitoring, which is expanding to include non-insulin dependent diabetics and pre-diabetic patients.

3. Obesity, which sees an expanding market through weight loss drugs and startups developing improvements in treating side effects. 

4. Neuromodulation, including the treatment of overactive bladder and GI conditions.

The report is available on our Life Sciences Investment page, and as a direct download.

Hope you find value in our member investor report, let me know how you think we can improve the next iteration of it!

Sincerely,

Eddie