Presentation from BIO's Patrick Kelly about findings from the Battelle report and other compelling rationale for bio in Alabama.

1. Bioscience Industry Overview
Patrick Kelly
Biotechnology Industry
Organization

2. 2
Defining the Biosciences
The biosciences are a diverse group of industries and activities with
a common link—they apply knowledge of the way in which plants,
animals, and humans function. The sector spans different markets
and includes manufacturing, services, and research activities. By
definition, the biosciences are a unique industry cluster and are
constantly changing to incorporate the latest research and
scientific discoveries.

3. Bioscience industry employment continued
to grow, even during the first year of the
recession
3
BioscienceSubsector 2008
Establishments
Changein
Establishments,
2001–08
Changein
Establishments,
2007–08
2008
Employment
Changein
Employment,
2001–08
Changein
Employment,
2007–08
Agricultural Feedstock&Chemicals 2,440 16.0% 6.4% 114,793 1.9% 4.6%
Drugs &Pharmaceuticals 2,771 6.4% 2.0% 311,882 2.3% -2.3%
Medical Devices &Equipment 15,227 0.4% 1.6% 435,509 2.0% 2.4%
Research,Testing,&Medical Laboratories 27,154 57.7% 6.1% 558,140 46.1% 2.1%
TotalU.S.Biosciences 47,593 28.3% 4.4% 1,420,324 15.8% 1.4%

4. 4
The total employment impact:
8 million jobs
• The full impact of the biosciences goes beyond the
direct level of employment and earnings presented in
the report
• By applying national and state employment
multipliers, we are able to quantify the broad “ripple
effect” of adding bioscience jobs on the greater
economy
• On a national basis, 5.8 additional jobs are created for
every 1 new bioscience job

5. Bioscience sector continues to be a
source of high-wage jobs
Drugs & Pharmaceuticals 93,378$
Finance and Insurance 85,274$
Research, Testing, & Medical Laboratories 80,785$
Total Biosciences 77,595$
Professional, Scientific, and Technical Services 74,354$
Agricultural Feedstock & Chemicals 72,279$
Information 70,780$
Medical Devices & Equipment 63,606$
Manufacturing 54,392$
Construction 49,014$
U.S. Total Private Sector 45,229$
Real Estate and Rental and Leasing 43,239$
Transportation and Warehousing 42,969$
Health Care and Social Assistance 42,150$
Retail Trade 26,181$
U.S. Average Annual Wages per Employee, 2008
• The overall bioscience sector
paid average annual wages of
$77,595 in 2008, $32,366 more
than the average annual wage of
the total U.S. private sector.
• Real earning for bioscience
industry workers have increased
by 10.1% since 2001, compared
with 3.2% for the U.S. private
sector
5

6. How are we doing in the current
economic climate?

7. Bioscience employment
greatly outpaced national employment growth
from 2001–2008
7
85
90
95
100
105
110
115
120
2001 2002 2003 2004 2005 2006 2007 2008
U.S. Bioscience Industry
U.S. Total Private Sector
-
100,000
200,000
300,000
400,000
500,000
600,000
Agricultural
Feedstock&
Chemicals
Drugs &
Pharmaceuticals
MedicalDevices&
Equipment
Research, Testing, &
Medical
Laboratories
2001 Employment
2007 Employment
2008 Employment

8. +1.6%
+38.8%
-60%
-40%
-20%
0%
20%
40%
Financials
Telecom
Energy
Industrials
Utilities
Materials
HealthCare
Technology
Cons.Disc.
Cons.Staples
NBI
BTK
%returnsinceOct9th,2007
(Source: BIO, Factset, Sept. 27th, 2010)
Biotech Sector Performance
Since 2007

9. 0
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CumulativeTotalofUSIPOs
2010 US IPO “WINDOW”
2009 2010
Cumberland IPO
August 2009
2011 2012 2013

10. 0
10
20
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70
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CumulativeTotalofUSIPOs
…How it ended last time around:
2003
2004
2005
2006
2007

11. States continue to invest in bioscience
development despite state fiscal challenges
States are:
• Focusing on the agricultural, biotechnology,
bioenergy and bioproducts industry subsectors
• Implementing new programs to build R&D
capacity and advance commercialization of
research discoveries
• Addressing the need for early-stage capital
• Enacting tax policies that are supportive of the
bioscience industry
11

12. Report Conclusions
• The bioscience industry is a diverse and rapidly growing sector that
is contributing significantly to national, state and regional economies
• The industry continued to add employment during the first year of the
recession and the financial performance of public bioscience
companies through 2009 was positive
• But continued bioscience development is not guaranteed
– States face difficult fiscal times
– Federal fiscal woes threaten NIH funding
– The recession has negatively impacted the availability of venture
capital for bioscience firms
– K-12 math and science education remains a significant concern
• State and national policymakers have a key role to play in ensuring
that these challenges are addressed in order to allow the U.S. to
continue to be a world leader in the biosciences.
Battelle/BIO State Biosciences Initiatives
2010
12

13. A look at Alabama
Through the Battelle Report

14. Alabama’s Scoresheet
Top 25 ranking

15. Bioscience Industry in Alabama
Total Bioscience Industry:
Establishments: 557
Employment: 10,146
Multiplier: 3.71
Total Employment: 37,634
Avg. Salary: $55,916

16. R&D Expenditures

17. Clinical Trial Activity

18. Venture Investment

19. Patent Activity

20. Talent Base

21. 21
Conclusions
• Fiscal climate has put significant pressure on industry and
state governments and will continue to be challenge for
the foreseeable future
• States and regions increasingly aware of industry needs
and are implementing policies and programs to support
industry growth
• Alabama has significant bioscience assets that are highly
coveted. The state should insure that it is doing as much
as possible to encourage industry development and
retention.