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  • We’re growing in numbers and in size number of employees employed by biotech in MA continues to increase steadily
  • We’re growing in numbers and in size number of employees employed by biotech in MA continues to increase steadily
  • We’re growing in numbers and in size number of employees employed by biotech in MA continues to increase steadily
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    1. 1. Janice T. Bourque President & CEO Massachusetts Biotechnology Council MassBiotech 2010 BioStrategy Seminar Series Thursday, September 18, 2003
    2. 2. Massachusetts Biotechnology Council <ul><li>The Massachusetts Biotechnology Council is a non-profit industry association for Massachusetts biotechnology. </li></ul><ul><li>The MBC advances common goals of the Massachusetts biotechnology industry by: </li></ul><ul><ul><li>Providing joint activities and services </li></ul></ul><ul><ul><li>Influencing legislative and regulatory policies </li></ul></ul><ul><ul><li>Strengthening industry community & collaborations </li></ul></ul><ul><ul><li>Building public support for biotechnology </li></ul></ul>
    3. 3. National Biotechnology Industry <ul><li>United States </li></ul><ul><ul><li>1,457 biotechnology companies (342 are public) </li></ul></ul><ul><ul><li>Employing 191,000 people </li></ul></ul><ul><ul><li>$28.5 billion revenue in 2001 </li></ul></ul><ul><ul><li>Life Sciences accounts 13% of GDP, by 2013 expected to be 22% </li></ul></ul><ul><ul><li>$3.7 billion invested in biotech in 2002 </li></ul></ul>Source: Ernst & Young, Beyond Borders: The Global Biotechnology Report 2002;Feinstein Kean Healthcare.
    4. 4. MA Biotechnology Industry <ul><li>Massachusetts </li></ul><ul><ul><li>Over 280 biotech (53 public) companies employing approximately 30,000 individuals. </li></ul></ul><ul><ul><li>$835 million in life sciences-related venture capital investments in 2001 </li></ul></ul><ul><ul><li>Over 122 colleges and universities </li></ul></ul><ul><ul><li>The Massachusetts Biotechnology Council (MBC) is the oldest and second largest biotechnology association in the world. </li></ul></ul><ul><ul><li>Biotech accounted for half of the new industrial jobs created in Massachusetts during the past six years. </li></ul></ul><ul><ul><li>Biotech accounted for 27% of $8.5 billion spent by Massachusetts public companies on R&D, 15% of venture capital funds raised, and 18% of the patents filed. </li></ul></ul><ul><ul><li>Massachusetts has 8% of the world’s clinical pipeline. </li></ul></ul><ul><ul><li>The state receives highest NIH dollars per capita. </li></ul></ul><ul><ul><li>$572.8 million invested in biotech in 2002. </li></ul></ul>Source: Massachusetts Technology Collaborative, 2002 Index of the Massachusetts Innovation Economy, 2003, MassBiotech 2010 report, MBC, 2002.
    5. 5. MassBiotech 2010 Report <ul><li>The Massachusetts Biotechnology Council (MBC), with the assistance of The Boston Consulting Group (BCG), conducted a study of the Massachusetts biotechnology industry and the broader life-sciences economic cluster. </li></ul><ul><li>Report available - </li></ul>
    6. 6. Life Sciences Cluster Composed of Diverse & Interconnected Segments HEALTH CARE Hospitals Providers Payers HMOs Public health organizations Patients PUBLIC INSTITUTIONS State officials Local officials Quasi-publics Public agencies Community-based organizations EDUCATION Universities Community colleges K-12 schools OTHER SERVICES Law firms Real estate IT firms Accountants Construction Medical devices BIOTECH Human therapeutics Agricultural biotech Marine biotech Environmental biotech Pharmaceuticals Diagnostics Biodevices SPECIALIZED SUPPLIERS Lab/ bio supplies & equip. Platform & tools companies Contract manufacturing Bioinformatics CROs BASIC RESEARCH Academic research labs Academic medical centers FUNDING ENTITIES Government grants Venture capital firms Financial institutions
    7. 7. Competitive Advantage MA Companies Cite Universities & Talent as Primary Sources Source: MBC, BCG Biotech 2010 project interviews Proximity to major universities Availability of scientists Strength of partner industries Proximity to other biotech companies Quality of life Availability of skilled technicians Availability of spouse jobs Leg./ reg. environment Cost of labor Other Personal Quality supplier base Average allocation of 100 points across potential sources of MA advantage “ We started here because our founders come from Massachusetts universities. We stay here because the best people are here.” Weather
    8. 8. Geographic Distribution of MA Biotech Employment in 2001 Worcester Woods Hole Beverly Danvers Wilmington West Bridgewater Wareham Fall River Devens Boxborough Billerica Agawam Ashland Bedford Boston Brighton Cambridge Canton Charlestown Framingham Franklin Hopkinton Lexington Marlborough Maynard Medford Milford Natick Needham Newton Northborough Norwood Rockland Waltham Watertown Wellesley Westborough Woburn Andover Source: Massachusetts Biotechnology Council, BCG Value Science Center Number of employees 1,000 500 100
    9. 9. Growth by Number of Companies +69% +16% +12% +16% +24% Source : Massachusetts Biotechnology Council Biotech Companies in MA
    10. 10. Biotech Employment in MA Growth by Number of Employees +58% +8% +40% +27% +28% Source : Massachusetts Biotechnology Council
    11. 11. MA Biotech Employment Outpacing Total Industrial Job Growth (K) (K) Massachusetts Industrial Jobs Massachusetts Biotechnology Jobs 1% per year 10% per year Source : Massachusetts Division of Employment and Training
    12. 12. Biotech is a Growth Engine for MA (1) Base SIC 2833-36, 3826, 8731 adjusted for individual companies Source: PWC Money Tree Survey; BCG Value Science Center; United States Patent and Trademark Office classes 424, 435, 514, 532-570, 800 Venture-capital funds raised by Massachusetts biotechnology companies 16% per year R&D spending by Massachusetts biotechnology companies (1) 22% per year Biotechnology patents granted to Massachusetts companies and universities 16% per year ($M) (K) (K)
    13. 13. MA Companies Own Over 8% of Global Clinical Development Pipeline State Note: State attribution based on headquarters location of product’s primary owner (1) Pipeline includes large and small molecule drugs, diagnostic tests and biodevices Source: Biospace Clinical Competitive Intelligence Systems (CCIS) database, September 2002 Number of products in pipeline 17.5% 8.1% 7.5% 7.3% 5.4%
    14. 14. Number of FDA-Approved MA Biotech Products Expected to More Than Double by 2005 Expected growth of FDA-approved Massachusetts Biotechnology products 2002 2005 2010 ~40 ~90 ~130 Development phase Phase I Phase II Phase III Approval pending Current number of products 63 73 48 23 Probability of success (1) 21% 31% 59% 91% Time to market (1) ~6 years ~5 years ~3 years ~1 year Expected output 13 compounds by 2008 23 compounds by 2007 28 compounds by 2005 21 compounds by 2003 <ul><li>Based on average figures for new chemical entities (NCEs); BCG analysis; Tufts Center for the Study of Drug Development </li></ul><ul><li>Source: Biospace CCIS database; “A Revolution in R&D,” BCG, November, 2001; BCG analysis </li></ul>
    15. 15. MA Biotech In-State Capabilities (1) Clinical development structure in state (2) Commercial manufacturing only Note: Sample is 134 human therapeutics companies Source: Massachusetts Biotechnology Council Survey 2002, BCG analysis Commercial Research Development (1) Manufacturing (2) 108 57 8 9 10 7 26 11 15 3 23 2 24 MA companies Out-of-state companies with MA locations Activity in Massachusetts Activity in outside Massachusetts
    16. 16. Opportunity to Create Nearly 100K Jobs Note: 2001 baseline: 30K biotech jobs and ~70K indirect jobs= ~100K total jobs Source: Bio E&Y 2000 Report; MBC 2002 survey; BCG Analysis; Economic Model MA share of U.S. biotech jobs 1991-2010 MA share of biotech jobs (%) <ul><li>Lose ground </li></ul><ul><ul><li>MA share erosion continues </li></ul></ul><ul><li>Increase share </li></ul><ul><ul><li>MA strengthens its #2 position </li></ul></ul><ul><li>Unleash potential </li></ul><ul><ul><li>MA closes gap with CA </li></ul></ul>1 2 3 ~150K new jobs ~90K new jobs ~20K new jobs
    17. 17. Industry Challenges & Opportunities <ul><li>Big Pharma moving to the state </li></ul><ul><li>Keeping more pilot plant manufacturing in state </li></ul><ul><li>State marketing campaign </li></ul><ul><ul><li>Massachusetts It’s All Here </li></ul></ul><ul><li>Political engagement </li></ul><ul><li>Increased interactions with Washington </li></ul><ul><ul><li>NIH </li></ul></ul><ul><ul><li>CDC </li></ul></ul><ul><ul><li>FDA </li></ul></ul><ul><ul><li>Department of Defense </li></ul></ul>
    18. 18. MBC Initiatives <ul><li>Economic Development </li></ul><ul><ul><li>“ Team” Massachusetts approach </li></ul></ul><ul><ul><li>Physical A&E </li></ul></ul><ul><ul><li>Permitting & Zoning </li></ul></ul><ul><ul><li>Site Identification </li></ul></ul><ul><ul><li>Community Outreach & Networking </li></ul></ul><ul><li>Education </li></ul><ul><ul><li>Science standards </li></ul></ul><ul><ul><li>Teacher training </li></ul></ul><ul><ul><li>High school lab equipment </li></ul></ul><ul><li>Workforce Training </li></ul><ul><ul><li>Project Management </li></ul></ul><ul><ul><li>Clinical Trials for Doctors </li></ul></ul><ul><ul><li>Biotech 101 </li></ul></ul>
    19. 19. MBC Initiatives <ul><li>Technology Transfer </li></ul><ul><ul><li>Improving process </li></ul></ul><ul><ul><li>Addressing conflicts of interest </li></ul></ul><ul><li>Clinical Trials </li></ul><ul><ul><li>Expansion of # and type of clinical trials in MA </li></ul></ul><ul><li>Policy/Public Affairs </li></ul><ul><ul><li>Stems cells </li></ul></ul><ul><ul><li>Permitting </li></ul></ul><ul><ul><li>Tax policy </li></ul></ul><ul><ul><li>Price controls </li></ul></ul><ul><ul><li>Restrictive access to therapies </li></ul></ul><ul><li>Communications </li></ul><ul><ul><li>Public understanding of biotech </li></ul></ul>
    20. 20. Janice T. Bourque President & CEO Massachusetts Biotechnology Council MassBiotech 2010 BioStrategy Seminar Series Thursday, September 18, 2003