California Biomedical Industry - California Healthcare Institute

2011 California Biomedical Industry ReportConclusionAs demonstrated by the metrics, features and findings presented in this report, California’s biomedical industry plays asignificant and crucial role in the state.It represents the vanguard of innovation. California leads the country as well as the world in innovative therapeuticcompounds and technologies. The state’s institutions continue to pioneer ways to improve public health. Firms in the stateare devising, improving and introducing new therapies, therapeutics, devices, tools and diagnostics everyday to address thechanging and often critical needs of patients everywhere. The first biotechnology company was founded and continues tothrive in California. Today, our industry is in the forefront of emerging fields, such as personalized medicine, nanotechnologyand stem cell research.The cutting edge research and development work in California continues to attract substantial amounts of governmentgrants and venture capital funding. Although both sources reached a plateau — remaining essentially flat through 2009 ascompared to 2008 — there are some hints that venture capital is returning to the biomedical industry. A handful of initialpublic offerings (IPOs) were undertaken in 2010, and the industry saw an increased number of acquisitions as well. As thesetransactions show financial benefit, other investors are poised to again step forward.Life sciences organizations depend on an educated workforce drawn from a wide range of disciplines and functions. Theseprofessionals require specialized training and expertise, attributes that many are able to strengthen through employersupportedcontinuing education. The state’s companies and educational bodies have stepped up to ensure that workforcedevelopment is available and robust at the state’s community and four-year colleges and universities. Moreover, educatorsand employers alike are reaching out to engage school aged children in math and science and to guide the next generation ofCalifornia innovators toward careers in engineering, science, technology and medicine.In the current climate, perhaps the industry’s most critical contribution is to the economy. The state’s academic andindependent research institutions and its biopharmaceutical, diagnostics, medical device and wholesale trade companiesemploy hundreds of thousands of Californians directly — and sustain the businesses and augment the incomes of countlessothers. Its jobs are typically well-compensated and fulfilling. The tax contributions to the state’s operations are significantand multiply through the income, property and sales taxes paid by individual employees. In comparison to California’s otherflagship industries — aerospace, IT and motion pictures, for instance — the biomedical industry has proven more resilient. Itretained the largest percentage of jobs among the group in the recent economic downturn.Because the biomedical industry in California contributes so much to the economy and public health, policymakers havea clear interest in continuing to support the life sciences. Industry leaders from the 2011 CEO Survey have pointed toopportunities to make our business environment more friendly and what this means in terms of tax policy, regulation,technology transfer, environmental regulation and tort reform. All this and more will be the subject of vibrant discussionbetween industry and policymakers. Clearly, California will benefit from an expansion of life sciences research anddevelopment and manufacturing and stability at all levels of the state’s education system.California and its residents have worked very hard for decades to build the most innovative and productive biomedicalindustry in the world. That industry has introduced and continues to pursue new therapies and approaches to improvingpatient outcomes, public health and quality of life the world over. It also continues to give back to the state. It is a componentof the state’s economy and, indeed, its legacy that keeps on giving. At this critical juncture, let us commit to ensuring that italways will.David Gollaher, Ph.D. Gail Maderis Tracy LefteroffPresident and CEO, President and CEO Partner, National Life SciencesCHI-California Healthcare Institute BayBio PricewaterhouseCoopers LLP100 | California Biomedical Industry 2011 Report