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What’s next for Biotech? 2014: An Epic year for MA Biopharma $1.2 billion $1.18 billion 58,000 7 FDA Approvals 40 % Venture Capital IPOs 10-year Employment Growth 1,434 Drug Candidates In Development MA Biopharma Industry Employment Employment in the industry has grown 9-10 times faster than state and national growth rates for all employment.* 57,642 54,280 54,829 55,342 56,097 56,462 51,518 46,117 43,904 41,128 40 % *4.8% MA 10-year employment growth, all industries 4.1% U.S. 10-year employment growth, all industries 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW); MassBio 7-Year Employment Performance: Biotech Research & Development* Massachusetts has more employment classified as Biotechnology Research and Development than any other state.* *NAICS 541711: Research and development in biotechnology. This classification has only existed for the last seven years. 2007 2013 =/-% Massachusetts 24,656 28,042 13.7% California 19,134 24,196 26.5% Pennsylvania 16,902 10,854 -35.8% Maryland 10,154 8,014 -21.1% New Jersey 8,567 9,362 9.3% North Carolina 7,042 7,080 0.5% Michigan 4,670 2,678 -42.7% Missouri 4,262 3,437 -19.4% Texas 4,229 4,861 14.9% Ohio 2,696 3,100 15.0% New York 2,679 4,119 53.8% Washington 2,499 3,602 44.1% Connecticut 2,452 2,963 20.8% Illinois 2,403 2,963 23.3% Indiana 1,277 1,657 29.8% Florida 737 2,370 221.6% Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW) Biopharma Manufacturing Employment, 2013 Massachusetts is also a leading state in biopharma manufacturing, with 1 out of 5 jobs in the industry involved in manufacturing. With over 600,000 liters of mammalian cell culture manufacturing capacity in the region*, Massachusetts in this type of biologics manufacturing expertise. *Including two factories in RI and NH Source: Analysis by Elisabeth Reynolds, MIT Industrial Performance Center, Data from Bioprocess Technology Consultants. Venture Capital Investment Venture investment in MA rose to a record $1,202 billion in 2014. Investment in Massachusetts Biotech Companies, 2005-2014 $1,400,000,000 $1,200,000,000 $1,000,000,000 $800,000,000 $600,000,000 $400,000,000 $200,000,000 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: EvaluatePharma® 2014 Massachusetts IPOs 18 IPOs for Massachusetts companies in 2014 – twice as many as the previous record year of 2013. $100 M* $65 M $12 M $32.7 M $59.5 M $65 M $84 M $61 M $90 M $52 M $90 M $90 M $65 M $91 M $66 M $96 M *Figures refer to “offer amounts” (investment secured) at time of IPO Source: Nasdaq.com, BioSpace Top NIH-Funded Independent Hospitals, 2014 Eight of the top 14 NIH-funded independent hospitals are in Massachusetts. Please note: NIH lists Universityoperated hospitals separately. ORGANIZATION MASSACHUSETTS GENERAL HOSPITAL BRIGHAM AND WOMEN'S HOSPITAL CHILDREN'S HOSPITAL CORPORATION DANA-FARBER CANCER INST CHILDREN'S HOSP OF PHILADELPHIA BETH ISRAEL DEACONESS MEDICAL CENTER CINCINNATI CHILDRENS HOSP MED CTR ST. JUDE CHILDREN'S RESEARCH HOSPITAL NEW YORK STATE PSYCHIATRIC INSTITUTE SEATTLE CHILDREN'S HOSPITAL BOSTON MEDICAL CENTER CEDARS-SINAI MEDICAL CENTER TUFTS MEDICAL CENTER MCLEAN HOSPITAL CITY BOSTON BOSTON BOSTON BOSTON PHILADELPHIA BOSTON CINCINNATI MEMPHIS NEW YORK SEATTLE BOSTON LOS ANGELES BOSTON BELMONT STATE MA MA MA MA PA MA OH TN NY WA MA CA MA MA AWARDS 770 558 301 207 192 240 251 89 99 84 85 76 45 81 FUNDING $349,524,060 $319,409,432 $122,949,506 $122,652,215 $112,146,779 $108,156,442 $97,854,412 $48,650,426 $46,903,956 $39,068,563 $38,130,340 $34,423,825 $27,737,457 $25,413,803 Source: NIH, Research Portfolio Online Reporting Drug Development Pipeline, by Phase The MA drug development pipeline remains strong. 535 1,384 drug candidates in development 6% of the global pipeline 12% of the U.S. pipeline 452 Massachusettsheadquartered company pipelines only included. 164 160 64 9 Research Project Pre-Clinical Phase I Phase II Phase III Filed Source: EvaluatePharma®, July 2014 Massachusetts Pipeline by Therapeutic Area Gastro-Urinary, 2% Respiratory, 2% Dermatology, 1% Blood, 3% Endocrine, 3% Cardiovascular, 3% Gastro-Intestinal, 4% Oncology 35% Therapeutic Area Candidates Oncology 487 Systemic Anti-infectives 222 Central Nervous System 196 Other 102 Sensory 62 Musculoskeletal 75 Gastro-Intestinal 51 Cardiovascular 48 Endocrine 42 Blood 34 Gastro-Urinary 24 Respiratory 27 Dermatology 14 Total 1384 Musculoskeletal 5% Sensory 5% Other 7% Central Nervous System 14% Systemic Antiinfectives 16% Source: EvaluatePharma®, May 2014 Largest Industry Employers in MA, 2013 Genzyme, a Sanofi company, has long been the largest employer in the industry in Massachusetts. Since 2013, several companies have significantly increased in employment, including PerkinElmer, AbbVie, and Amgen. 1 Genzyme, a Sanofi Company 4,356 15 PerkinElmer 850 2 Biogen Idec 2,800 16 AbbVie 700 3 PAREXEL International 2,800 18 Sunovion Pharmaceuticals (DSP) 650 4 Pfizer 2,700 19 Cubist 638 5 Novartis 2,100 20 Merck 500 6 Hologic 1,800 21 Bristol-Myers Squibb 400 7 Shire 1,500 22 Lantheus 375 8 Vertex 1,450 23 Alkermes 325 9 Thermo Fisher Scientific 1,400 24 New England Biolabs 280 10 EMD Millipore 1,261 25 Organogenesis 274 11 Millennium: Takeda Oncology 1,204 26 Cell Signaling 270 12 Charles River Laboratories 960 27 Immunogen 270 13 AstraZeneca 900 28 Ironwood 260 14 EMD Serono 855 29 Sanofi 250 15 Nova Biomedical 855 30 Amgen 250 Sources: MassBio Membership Reports & Surveys; Boston Business Journal Book of Lists, 2013 Recent Drug Approvals for MA Companies Alproliz: For the treatment of hemophilia B Entyvio: For treatment of adults with ulcerative colitis and Chrohn’s Disease. Sirextro: For treatment of acute bacterial skin and skin structure infections Plegridy: For the treatment of relapsing forms of multiple sclerosis Cerdelga: For treatment of adults with the Type 1 form of Gaucher disease Lemtrada: For the treatment of relapsing multiple sclerosis Zebraxa: To treat adults with complicated intra-abdominal infections (cIAI) and complicated urinary tract infections (cUTI). Source: CenterWatch Changing the Lives of Patients More than 160 drugs have been commercialized by current Massachusettsheadquartered companies. Massachusetts-headquartered companies have developed therapies that focus on patient populations of 232,434,000 patients IN THE UNITED STATES 1,507,722,000 patients AROUND THE WORLD Sources: Developed from multiple sources including EvaluatePharma®, emedicine medscape, NCBI, CDC Life Sciences Lab Inventory Growth Current Construction Completed in 2013-14 MA has added 5,140,009 square feet of lab space since 2007. 21,203,999 s.f. 16,063,990 s.f. Vertex, Boston Novartis, Cambridge Pfizer, Cambridge Longwood Center, Boston 2007 2014 Biogen Idec, Cambridge Alexandria Center, Cambridge Source: Colliers Meredith & Grew, Life Science Review, 2007-2013, CBRE - NE BioView, 2014 Does $65 per square foot in Kendall Square mean we’re finished? Boston beckons Still some room to grow in Kendall Watch the Inner Suburbs Alewife, Watertown, Medford, Somerville and . . . Concentration & Competitive Price Points Top 10 communities by number of biopharma companies* Cambridge (130) Boston (41) Worcester (34) Waltham (29) Lexington (28) Woburn (25) Watertown (16) Bedford (15) Marlborough (10) Beverly (10) There are 130 biopharmas in Cambridge . . . and over 400 more outside of Cambridge Where Next? More Communities, More sophistication, Greater Appetite, Greater Opportunities BioReady® Communities