California Biomedical Industry - California Healthcare Institute

California Biomedical Industry2009 Report

Defining California’sBiomedical Industry• Academic research• Biopharmaceuticals• Diagnostics• Laboratory services• Medical devices• Wholesale tradeCalifornia Biomedical Industry 2009 Report 1

California BiomedicalIndustry Highlights• Total biomedical companies: 2,042• Total estimated revenue:$74.5 billion• Total estimated employment: 271,000• Overall biomedical average wages: $75,000• Total NIH grants awarded:• Total estimated VC investment:• Estimated private investmentin R&D:$3.2 billion$4.3 billion$28.2 billionCalifornia Biomedical Industry 2009 Report 2

EmploymentHighlightsCompanies makingmedical devices,instruments anddiagnosticsrepresent 41%of the sector.California Biomedical Industry 2009 Report 3

Robust WagesHighlightsAverage industrywage of $75,000outpaced by80% the estimatedannual wage ofall occupationsin the state.California Biomedical Industry 2009 Report 4

Employment GrowthHighlightsBetween 2003 and2007, the industryadded approximately23,000 jobs and grewat an annual averagerate of 1.76%.California Biomedical Industry 2009 Report 5

Leading High-Tech EmployerHighlightsThe biomedicalsector employssignificantly morepeople thanaerospace andmotion picturescombined.California Biomedical Industry 2009 Report 6

Industry Committed to California• 53% expect to increase workforce in next two years• 51% expanded in-state R&D capacity in 2007;35% expect to expand R&D activities• 41% expect to increase California manufacturingworkforce within next two years; 53% expandedin-state manufacturing capacity in 2007; 49% planto expand in-state manufacturing activitiesCalifornia Biomedical Industry 2009 Report 7

Is California MissingOpportunities?HighlightsWhile committedto operating inCalifornia,biomedical firmsare expandingoperations,employment,revenues and taxdollars in otherstates and countries.• 56% expanded outside of California• 34% expect to expand manufacturing outside ofthe state in the next two yearsCalifornia Biomedical Industry 2009 Report 8

Biomedical CompaniesSupport EducationHighlightsA highly skilledworkforce is key tothe success of thebiomedical industryin California.• Amgen Scholars• Bayer’s Making Science MakeSense• Biogen Idec Community Lab• Biotech Partners• Cedars-Sinai Youth Employmentand Development Program• Discovery Science Center• Elementary Institute of Science• Eugene and Ruth RobertsSummer Student Academy• Genentech Foundation• Genentech Foundation forBiomedical Sciences• High Tech High• Inner World Discovery• Life Sciences SummerInstitute• Pfizer Education Initiative• Preuss School• Science Matters• Skyline CollegeBiomanufacturing TrainingPartnership• United Negro CollegeFund/Merck ScienceInitiative• Alliance/Merck CienciaHispanic Scholars Program• Merck Index Women inChemistry ScholarshipsCalifornia Biomedical Industry 2009 Report 9

Investing in R&D• Public biomedical companies that are doingbusiness in California invested an estimated$28.2 billion in the research and development ofnew products in 2007 for unmet medical needs.California Biomedical Industry 2009 Report 10

Venture Capital InvestmentHighlightsVenture capitalinvested inCalifornia lifesciences increasedto $4.3 billion, upfrom $3.2 billionin 2006.California Biomedical Industry 2009 Report 11

Life Sciences Investment by SectorHighlightsIn the first threequarters of 2008,California’sbiomedicalcompaniescompleted 238deals valued at$3.1 billion. Thatcompared to 228deals worth $3.2billion in the sameperiod 2007.Venture capital investment in California lifesciences companies first quarter 2006 to thirdquarter 2008, by sectorCalifornia Biomedical Industry 2009 Report 12

California’s BiopharmaceuticalPipelineHighlightsCaliforniacompanies havealmost 900 productsin the pipeline, 452of which are beingevaluated in clinicaltrials.California Biomedical Industry 2009 Report 13

Cancer a Major Focusof Medical InnovationHighlightsAbout one third(32%) of theproducts inCalifornia’spipeline targetcancer.California Biomedical Industry 2009 Report 14

Molecular Diagnostics aGrowing Field in California• Evolution of personalized medicine• Continued advances reduce healthcare costs andtreatment times• Conflicts in dual regulatory pathwayneed to be resolved• Fair reimbursement essential forcontinued innovation in the stateCalifornia Biomedical Industry 2009 Report 15

Orange CountyMedTech Cluster• Total estimated employment: 29,000• Total estimated wages andsalaries paid:$2.2 billion• Average wage: Nearly $76,800• Percentage of total Californiabiomedical workforce: 11%• Statewide ranking:ThirdCalifornia Biomedical Industry 2009 Report 16

Real EstateHighlights“Once we getthrough this crisis,California will stillbe a great locationfor life sciencesoperations.”·Joel Marcus, AlexandriaReal Estate Equity• Mission Bay– 303 Acres– By 2011: 13 lab and office facilities in 2.7 million sf– Four campuses around UCSF• Genentech– Leadership in Energy and Environmental Design– Recycled materials– Water conservation– Landscaping with native plants– Alternative transportation encouraged•Arena– Solar panels– Energy efficient buildingCalifornia Biomedical Industry 2009 Report 17

California Leading theNation in NIH Grant FundingHighlightsCalifornia’sacademicresearchers haveconsistentlyreceived more NIHfunds than anyother state.California Biomedical Industry 2009 Report 18

California’s Share ofTotal NIH GrantsHighlightsCalifornia’sacademic researchcenters lead thenation in grantfunding andcommercial licensingagreements.California Biomedical Industry 2009 Report 19

Ten Largest NIH GranteeInstitutes in CaliforniaHighlightsTen of the 15Californiainstitutions receivingthe largest amountof NIH fundingwere universities.California Biomedical Industry 2009 Report 20

Government Funding FuelsSmall Business GrowthHighlightsThe state receivedthe largest numberof NIH SBIR andSTTR awards (315)and largest amountof funding($115 million)in U.S.California Biomedical Industry 2009 Report 21

The California Institute forRegenerative Medicine (CIRM)HighlightsCIRM well preparedfor task ahead.• 50+ peer-reviewed publications• One group has moved into clinical trials• Global leadership in stem cell science• 165 scientists have received grants totaling$343 million• 12 capital projects in the works worth$271 millionCalifornia Biomedical Industry 2009 Report 22

California Leads the World inLife Sciences InnovationHighlightsRebuilding theindustry willdemand a level ofeconomic andpolitical ingenuitycommensuratewith the creativitythat originallyinspired us.• Biomedical industry’s essential value = humanhealth + enterprise• Continued success depends on governmentinvestment in basic research, ready access tocapital, fair reimbursement for innovation• Workforce development and education mustbe a priorityCalifornia Biomedical Industry 2009 Report 23