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March 22, 2012 The Massachusetts BioReadyTM Community Campaign Presented to South Shore/Canal Regional Economic Development District About MassBio To foster a positive environment that enables each biotechnology company to achieve its full potential Advocacy for industry on Beacon Hill and Capitol Hill MBC Member Benefits Savings from 20-80% on everything from lab gases, lab equipment, supplies, office equipment, energy and much more. 110+ member meetings, 4,000 attendees State & Federal Policy Economic Development Purchasing Consortium Networking & Visibility MassBio Membership Annual Events MassBioEd Foundation Professional Development MassBioEd Courses, MassBio Committee Meetings About Biotechnology The use of biological processes to solve problems or make useful products. Biotechnology is a collection of technologies that capitalize on the attributes of cells, such as their manufacturing capabilities, and put biological molecules, such as DNA and proteins, to work for us. Pharmaceuticals are chemical-based medicines Biologic-based Medicines Biologic-based Medical Devices Biological Research Tools Biofuels, AgBio, Bio Industrials Massachusetts Biotech Timeline 1953 Double helix of DNA explained by Watson & Crick Biogen founded 1978 1980 1981 1985 U.S. Supreme Court approves patenting of recombinant life forms, Passage of Bayh-Dole Act Genzyme founded MassBio becomes the 1st biotechnology industry association Map of the human genome is completed Novartis locates Global Research HQ in Cambridge, MA 2000 2002 2003 MassBio issues Biotech 2010 Report BMS chooses to build $1b facility in Devens, MA 2006 2008 $1 B Massachusetts Life Sciences Initiative enacted The Difficult Path to Bring a Drug to Market • For every 5,000 investigational drugs that begin down the path, only 1 is successfully commercialized. 1250 1000 750 Annual Net Cash Flow • Average research and development cost of is $1 billion. Patent Filing 500 Launch Discovery (2–10 Years) Phase I Preclinical 20–80 Testing Healthy Laboratory and Volunteers Animal Testing Phase II 100–300 Patient Volunteers Phase III 1,000–5,000 Patient Volunteers FDA Review Approval 250 Market 0 5 10 -250 -500 Valley of Death 15 Massachusetts BioPharma Employment Growth 2011 49,825 2002 32,571 53% Growth Since 2002 Source: U.S. Census, County Business Patterns and MassBio formula and analysis. *2010 figure is a final estimate based on review of Massachusetts ES-202 data for 2010. 2011 figure is a preliminary estimate. Biotechnology R&D Employment According to the Bureau of Labor Statistics’ Quarterly Census of Employment & Wage (QCEW) data, Massachusetts leads the nation in biotechnology research & development employment. CA CT MA MD MI MO NJ NY NC PA WA 2007 19,134 2,452 24,565 10,154 4,670 4,262 8,567 2,679 7,042 15,902 2,499 2010 21,616 1,582 26,807 9,469 2,759 3,874 9,224 3,553 6,275 12,776 3,730 Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW) Biotech R&D Employment, 2007-2010 WA Massachusetts grew biotechnology research employment between 20072010. Massachusetts was outpaced only by California. 1231 PA -3126 -767 NC NY 874 NJ -388 657 MO MI -1911 MD -685 MA CA 2242 2482 Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW) Biotechnology Research Concentration Massachusetts holds a dominant position in terms of industry concentration in “Biotechnology Research and Development” – almost twice the concentration of jobs as the next closest state. The Massachusetts concentration did, however, decline slightly from 2009. What is a Location Quotient? 8 Location Quotients measure the concentration and strength of an industry in a region versus the nation as a whole. Location Quotients of more that 1.0 mean that the industry enjoys a greater concentration in a region versus the nation as a whole. 7 6 5 2007 4 2009 2010 3 2 1 0 CA MD MA MO NJ NC PA WA CA MD MA MO NJ NC PA WA 2007 1.22 4.1 7.32 1.56 2.15 1.75 2.71 0.87 2009 1.34 3.77 7.58 1.55 2.20 1.68 2.19 0.90 2010 1.39 3.74 7.42 1.4 2.29 1.57 2.09 1.27 Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW) Biotech R&D Employment: U.S. Counties Among leading U.S. counties in biotech R&D employment, Middlesex County in Massachusett s continues to stand out. 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 ce or W J A A J A A J A A D O C ra CA , M , N t, N , N , P s, M x, M Cla o, C lk, M y, M y, P , r x e e i r e e e ex go er am est rs ta ak ffo me at ou es ie er ss es m e n h l u l L r W M D h o E a M idd d o S m u . g C S n tg D nt San Mid St So M Sa on Mo M A , er st M N e, C r, ce N Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW) BioPharma Manufacturing Employment 2010 Only Massachusetts, Maryland, and North Carolina have grown biopharma manufacturing jobs since 2006. 9,514 2006 7,944 Massachusetts was one of only 3 states to grow biopharma manufacturing jobs between 2006 and 2010. Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW) Drug Development Pipeline August 2011 Massachusettsheadquartered companies* account for about 10% of the U.S. drug development pipeline and 5% of the global pipeline. Candidate medicines of Massachusetts-headquartered* companies, by clinical trials stage Pre-Clinical 316 Phase I 216 Phase II 275 Phase III 76 Pending Approval 14 Massachusetts-headquartered companies’ share of U.S. and Global drug development pipeline % of US % of Global Total Trials 9.41% 4.91% PC 11.00% 5.88% I 11.99% 6.43% II 8.26% 4.56% III 8.46% 3.52% PA 3.89% 1.44% * There are many drugs in development in Massachusetts by companies with headquarters located outside of Massachusetts. These candidate drugs are not included in any Massachusetts pipeline estimates found in this report. Source: MedTrack Online, Life Sciences Analytics, Inc. Massachusetts Drug Pipeline Movement: May 2010-April 2011 Between May 2010 and April 2011, 217 candidate drugs advanced in the development pipeline – from entering into preclinical trials through advancing to approval by the FDA. Preclinical Studies Phase I Pending Approval Phase III Phase II Approvals 79 57 46 20 27 PC candidates acquired by by out-of-state acquisition 16 Discontinued PC studies 12 3 16 clinical candidates acquired by out-of-state acquisition 40 terminated trials 3 Non-approvals Source: MedTrack Online, Life Sciences Analytics, Inc. Why Massachusetts? 500+ 430+ Biopharma Biotech Companies Top 5 Top 5 122 NIH funded NIH funded Research Research Hospitals Hospitals Colleges & Universities 1st in 1st in Education Level of workforce (US) Workforce Venture Capital & federal SBIR funds research per worker funds per worker Supportive Local, State Government Life Sciences Initiative Biotech Caucus Top 5 NIH Funded Hospitals in U.S., FY 2011 1. Massachusetts General Hospital ($324,620,848) 2. Brigham and Women's Hospital ($288,436,449) 3. Beth Israel Deaconess Medical Center ($131,304,171) 4. Dana-Farber Cancer Institute ($130,136,550) 5. Children's Hospital Boston ($118,512,044) Source: National Institute of Health; 2009 15 Top 5 Massachusetts NIH-funded Universities, FY 2010* 1. Harvard University $393 M 2. University of Massachusetts $196M 3. Boston University $163 M 4. Massachusetts Institute of Technology $158 M 5. Tufts University $136 M *includes ARRA funds. 16 National Institutes of Health Funding, 2010 On a NIH-funding per capita basis, Massachusetts far exceeded other leading NIHrecipient states. CALIFORNIA MASSACHUSETTS NEW YORK PENNSYLVANIA TEXAS MARYLAND NORTH CAROLINA WASHINGTON ILLINOIS OHIO $374 $3,332,378,004 $2,447,323,040 $2,001,047,954 $1,405,917,085 $1,078,078,997 $1,018,825,272 $931,973,222 $846,526,930 $732,681,496 $662,354,991 $176 $158 $139 $103 $98 $89 $56 CA MA NY PA TX MD NC WA $57 $57 IL OH Sources: National Institutes of Health, U.S. Census Bureau. Venture Capital Investment $1.071 billion invested in MA biotechs in 2011 is an historic high. $8.054 billion since 2002 Source Data: 2011 PricewaterhouseCoopers, National Venture Capital Association, MoneyTree TM Report, Historical Trend Data, and MassBio analysis. MA Share of the Biotech VC Dollar MA biotechs received 22.6% of all VC biotech financing, just below the 2010 all-time high. Source: 2011 PricewaterhouseCoopers, National Venture Capital Association, MoneyTreeTM Report, Historical Trend Data, MassBio analysis. BioPharma Industry Impact in MA The estimated average salary in the biopharma industry is 77% higher than the estimated state average salary of $53,834. $4,615,364,513 in payroll (2010) $95,628 in average salary (2010) Source: U.S. Census, County Business Patterns, MassBio estimate using 2009 base data, MassExport Center. Leading BioPharma Employers (MA), 2011 MA has benefited from the pharma industry’s embrace of biotechnology. 1. Genzyme (Sanofi) 2. Pfizer 3. Biogen Idec 4. Novartis 5. Thermo Fisher Scientific 6. Shire 7. Vertex 8. EMD Millipore 9. Parexel International 10. Millenium: Takeda Oncology 11. Charles River Laboratories 12. AstraZeneca 13. EMD Serono 14. Hologic 15. Abbott Laboratories 16. Sunovion Pharmaceuticals (DSP) 17. Nova Biomedical 18. Cubist 19. Lantheus 19. Merck 20. Bristol-Myers Squibb 4,356 2,600 2,300 2,100 1,700 1,500 1,310 1,237 1,200 1,050 970 900 850 800 750 690 631 626 550 330 320 Sources: MassBio, membership reports, survey, Boston Business Journal Book of Lists, 2011. The $1 Billion Massachusetts Life Sciences Initiative Over time, the industry demonstrated its value, commitment to the region, and promise for the future . . . and state government responded. • 10 years • $1 billion Investment Top 20 job listing categories on MassBio.org in 2011 6,223 total jobs listed in 2011 Job Listings by desired education level, 2011 HS/Vocational/Certification, 283 Associate’s Degree, 200 Master’s Degree, 717 Bachelors Degree 3,416 PhD, 797 HS/Vocational/Certificate Associate's Degree 4.5% 3.2% Master's Degree 11.5% PhD 12.8% Unspecified Bachelor's Degree 13.0% 54.9% Unspecified 810 6,223 jobs listed in 2011 Projected Job Growth by Industry and Selected Occupations Industry & Occupations “Middle skill” occupations 2008 Projected Increase Projected 2018 % increase Scientific Research 43,700 59,000 15,300 35.0 Medical Scientists, not Epidemiologists 4,400 6,970 2,570 58.4 Biological Technicians 1,920 2,530 610 31.9 Biochemists and Biophysicists 1,530 2,440 910 59.0 Computer Software engineers 1,540 2,240 700 45.5 Biomedical Engineers 470 940 470 100.6 BioPharma Manufacturing 9,590 12,100 2,510 26.2 Biochemists and Biophysicists 780 1,130 350 45.0 Biological Technicians 520 630 110 20.8 Medical Scientists, not Epidemiologists 350 510 160 44.9 Machine operators and tenders 530 640 110 20.9 Separating, Filtering, Clarifying, etc. 200 280 80 44.9 Hospitals 183,600 205,860 22,260 12.1 Medical Scientists, not Epidemiologists 1,580 2,150 570 35.9 Registered Nurses 48,860 58,190 9,330 19.1 Colleges & Universities 146,580 155,680 9,100 6.2 Medical Scientists, not Epidemiologists 910 1,160 250 27.6 Biological Sciences Teachers, postsecondary 3,110 3,400 290 9.3 Source: Massachusetts Industry-Occupation Employment Matrix, 2008-2018, MA DLWD. Biotech/Pharma Buildings EMD Serono, Rockland, MA Abbott Bioresearch, Worcester, MA AstraZeneca R&D Boston, Waltham, MA Biotech/Pharma Buildings Biotechnology Laboratory Facilities Biotechnology Manufacturing Facilities Laboratory Safety BioSafety Level 1 BioSafety Level 2 BioSafety Level 3 Suitable for work involving well characterized agents not known to cause disease in healthy adult humans and of minimal potential hazard to laboratory personnel and the environment. Suitable for work involving agents of moderate potential hazard to personnel and the environment. Suitable for work with infectious agents which may cause serious or potentially lethal disease as a result of exposure by the inhalation route. Source: Centers for Disease Control Manufacturing Safety Good Manufacturing Practice regulations (GMPs) are used by pharmaceutical and medical device manufacturers as they produce and test products that people use. In the United States, the U.S. Food and Drug Administration (FDA) has issued these regulations as the minimum requirements. • Human pharmaceutical products and veterinary products (21 CFR 210-211) • Biologically derived products (21 CFR 600 and 21 CFR 620) • Medical devices (21 CFR 820) The manufacturing or "production" area is where the drug products are actually made with the active pharmaceutical ingredients and other materials such as high-purity water or sugars and other binding/lubricating agents. Depending on the final product, the manufacturing process can be very simple or extremely complicated. Labeling in Laboratory Laboratory Instrumentation Quality assurance Quality Control Facilities Control Room Source: Learning Plus, Inc. Validation Snapshot of Lab & Plant Physical Requirements Hours of Operation Floor to Floor heights Electrical Water Sewer Gas Basic Research Facility Typical business hours 14-18' 12 KV 8-20,000 GPD Some pretreatment, use of neutralization tanks Required Process Development Facility Typical business hours 14-18' 12 KV 20,000 GDP Pretreatment using neutralization tanks Required Adequate public Pilot Manufacturing 24 hours a day, 7 days a week 18-25' 15 KV Higher volume 2,400 GPH per sewer capacity. 1,000 s.f. (approx. than research or Discharges require kill 60,000 GPD for 30 process syetems and pH K s.f. facility) facilities. pretreatment Manufacturing Fill and Finish Facility 24 hours a day, 7 days a week 20-40' 5 days of operation, 24/7 on utilities 25' minimum Varies, greater than Adequate public Pilot facility, sewer capacity. redundent supply 25 KV with often required. (1.5 Discharges require kill redundant supply M GPD for 100 k syetems and pH mfg space an pretreatment example) 12.5 KV Varies, but significantly less than mfg. facility High volume Required 30 BioReadyTM Ratings Criteria Bronze - A municipality at this level features municipal water and sewer in commercial and industrial areas, zoning allowing for biotech laboratory and manufacturing uses by special permit, and has identified a local point of contact in to assist biotech projects. Silver - A municipality meets all Bronze criteria AND allows biotech uses by right, convene Site Plan Review meetings to expedite development projects, and has identified sites for biotech uses in municipal plans or has land sites and/or buildings included in BioSites inventory at www.massachusettssitefinder.com, or is a Growth District, or has identified Priority Development Sites per Chapter 43D. Gold - A municipality meets Silver criteria plus has sites or buildings pre-permitted for biotechnology use, OR has existing buildings in which biotech laboratory or manufacturing activities are taking place. Platinum - A municipality meets Gold criteria plus has adopted the National Institutes of Health guidelines on rDNA activity as part of its Board of Health regulations, has a building or buildings that are already permitted for biotech uses and which have 20,000+ square feet available space for biotech uses OR has a shovel-ready pre-permitted land site with completed MEPA review and municipal water and sewer capacity to meet additional demand. www.massbio.org BioReadyTM Communities Map Community Guide for Biotechnology Available for download at MassBio BioReady web pages. Next Steps • • • • See BioReadyTM guidance at www.massbio.org Download Biotechnology Community Guide Take a look at the BioReadyTM survey Call with any questions: Pete Abair, 617-674-5130 [email protected] • We travel! Happy to visit your town to discuss. • When you are ready, submit a BioReadyTM Survey for your municipality • Get you BioReadyTM buildings and sites onto MassBio.org’s real estate web pages