Transcript No Slide Title

Biotechnology Industry and
Initiative Update
EWD EDPAC
February 3, 2011
Jeffery O’Neal
State Director - Biotechnology Initiative
Economic and Workforce Development
California Community Colleges
Biotechnology is
Advanced tools of biology used by many
industries, new and traditional
 Agricultural
 Pharmaceutical
 Environmental
 Energy
 Law enforcement
 Military
Law Enforcement/Military
 CSI
 DNA typing of felons

Huge database
 Military


DNA typing of soldiers
911 and battlefield victims
Law Enforcement/Military/Environment
 Plants that detect explosives and landmines
 “Sentinel Plants”
 Can react to levels 1/100th of what a dog can sniff.

Can detect explosives and toxic chemicals
Environment
 Tracking endangered species by DNA typing
 Environmental clean up

Bacteria that “eat” oil spills
 Detection of pathogens in the
environment/food supply
 Rapid detection of “weaponized” microbes
Biotech in the Pharmaceutical Industry
 US Data:
 Of revenues from top-selling 100 drugs: 28% are biotech origin
 Four of the top-selling 15 drugs are biotech origin, accounting
for 22% of revenues = $12.7 Billion, they are:


Enbrel
$3.4B Protein
Neulasta
$3.1B Protein
chemo
 Epogen
$3.1B Protein
chronic renal failure
 Remicade
$3.1B MAb
Disease

Rheumatoid arthritis, psoriasis
Boost white blood cells when doing
EPO-alpha: boost red blood cells in
Rheumatoid arthritis, psoriasis, Crohn's
Agriculture
(0
88% of Cotton
91% of Soybean
85% of Corn
Stem Cell Research in California
•California is on the leading edge due to creating CIRM
(proposition 71)
•Many companies relocated to California or established
an office here
“I’m a big believer in stem cell research. This
revolutionary science has the potential not only to
improve the human condition, but it can also improve
California’s economy.”
Former GOVERNOR ARNOLD SCHWARZENEGGER
By 2010, a recent economic study projects CIRM’s
funding will have generated at least an additional $100
million in new tax revenue for the state.
Stem Cell Therapies Under
Development
Regenerating nerve/brain tissue
Spinal cord injuries
Parkinson’s disease
Alzheimer’s disease
Regenerate muscle tissue
Heart muscle tissue damaged by heart
attack
Regenerate other specialized cells such as
Pancreas and kidney cells
Blood cells in people compromised due to
chemotherapy
Bone growth for void fill and non-union
fractures
Stem Cell Therapies
Beating heart cells
Regenerated nerve cells
Personalized Medicine
 (Pharmacogenomics)


Medicines selected based on your genetic
profile
Less trail and error, less problem with adverse
drug reactions


Clarinex vs Allegra
Considered a high growth technology
 Personal genomics companies

Get you genetic profile for as little as $500

Google and Microsoft investing heavily in this
technology
BIOTECHNOLOGY AS A CALIFORNIA
EMPLOYMENT ENGINE
CHI Biomedical Industry Report 2011
“Biotechnology Lags Only Computers as California’s
Largest Technology Employer”
Has Suffered Less in Recent Downturn
First recent employment drop, by 4% from 2009 to 2010
Biotechnology Lags Only Computers as California’s Largest
Technology Employer; Has Suffered Less in Recent
Downturn
California Employment by Technology Sectors 2008
300,000
250,000
200,000
150,000
275,615
273,559
163,392
100,000
159,306
117,539
50,000
73,135
-
% Change March 2008 to March 2009:
NA
-0.9%
-7.6%
-5.3%
-5.2%
-1.0%
California Healthcare Institute, PriceWaterhouse Coopers:
California Biomedical Industry 2010 Report
Biotechnology is a Major Driver of California Employment—
Influencing up to 4% of the State’s Workforce
 Two data sources:
 California Healthcare Institute & PriceWaterhouseCoopers
 Battelle/BIO State Bioscience Initiatives 2010
California Healthcare
Institute/Price Waterhouse
Coopers
Total Estimated Employment 2008
Average Annual Wage per Employee 2008
Estimated Part- or Full-Time CA Workers Employed Because of
Life Science Industry 2008 (Multiplier)
274,000
$
75,000 $
783,000
Battelle/BIO
221,096
93,149
866,363
2011 California Biomedical Industry Report
Eighty percent of biomedical company CEOs in California report that their
companies have been courted by other countries, state governments or
regional economic development associations in the past year, according to
survey findings included in the 2011 California Biomedical Industry Report,
published today by the California Healthcare Institute, BayBio and PwC.
Sixty-seven percent of CEO respondents said that within five years, another
country could conceivably recreate the ecosystem that has made the U.S.
the leading biomedical region in the world.
Sixty percent believe that another state could recreate the ecosystem that
has made California the leading biomedical region in the U.S.
Yet the survey found surprising consensus of confidence in the state's
ongoing attractiveness to the biomedical industry, with many CEOs planning
to increase jobs, manufacturing, research and development operations within
California versus elsewhere.
2011 California Biomedical Industry Report
For the first time in the report's 17-year history, nearly twice as many
biomedical CEOs said they intend to increase manufacturing within
California (41 percent) versus outside the state (21 percent) over the next
two years.
Sixty-eight percent of CEOs said they expected to expand the overall size
of their workforce within California, while only 31 percent planned to
increase workforce levels outside the state.
Seventy-eight percent of CEOs surveyed said that they maintained or
expanded R&D operations within California over the past year, and 88
percent plan to do so over the next two years.
The key reasons cited for locating in California were the availability of a
highly skilled, entrepreneurial workforce and California's culture of
innovation, anchored by leading research universities.
The Biotechnology Initiative
 Economic and Workforce Development Program
 California Community Colleges
 Biotechnology Initiative
Current structure
 Four centers around the state
 San Diego – Miramar College
 LA/Orange – Pasadena City College
 SF Greater Bay Area – Ohlone College
 Sacramento – American River College
 Statewide Initiative Director, and two Hubs
 Expanding affiliate centers? – College of Canyons,
Fullerton College
Primary Goals of the Biotechnology
Initiative
 Direct Services to Industry

Serve the industry with quality training and technical
assistance
 Capacity Building

Assist the colleges to develop and maintain capacity to
deliver training, and improve their responses to advances in
technology and shifting industry needs
 Career Pathway Improvement
 Help build the pipeline of workers/students interested
in careers in the biotechnology industry
Regional Biotechnology Centers vs
Local Colleges
 Biotechnology Initiative Centers
 Workforce development
 Direct training to incumbent industry workers
 Often short courses for a specific skill upgrade

Develop and encourage model programs
 Innovative curriculum development

Faculty development


Workshops for faculty
Improving Career Pathways – outreach to k-12
 Local Community Colleges
 Student courses – pre-service (typically for credit)
 Local workforce development
Biotechnology Centers Services
08-09 fiscal yr
 742 employers received services by the Centers
 Over 126 specialized training events (industry focused)
 Over 15,000 high school students participated in
laboratory experiences
California Community Colleges
 110 community colleges

27 Colleges with degree programs or
certificates in biotechnology

23 Colleges offering stand-alone biotech
courses
 www.cccbiotech.org
Programs Respond to Local Workforce Needs
 Biomanufacturing focused programs

Solano, Ohlone, CCSF
 General laboratory skills

American River, San Diego Miramar
 Stem cell culture

Pasadena City, CCSF
Number of Students in Biotech
Programs is Growing
2,200
Number of Biotech TOP Code Students in CA Community
Colleges (completed over 12 units)
2,038
2,000
1,800
1,600
1,526
1,400
1,200
1,202
1,000
Fall 2007
Fall 2008
Fall 2009
Near Term Pay for Biotech Graduates
 One year after graduation median income for biotech
students rank 16th of 95 fields (2002-2003 academic year)
 $39, 275 - Biotechnology and Biomedical Technology
 $29,494 - Median for all fields (for 95 fields of study)
 Biotech salaries typically in top 20% of cc grads
Issues of Transparency to Business
 Often descriptions of programs not there or
buried on campus web sites



Some listed under Biotech, some under
Biological Sciences
Not always clear what skill sets students learn
Message often tailored to student
www.cccbiotech.org
One Portal to Access Biotechnology Training
at Community Colleges
 All Colleges listed on website


Description of program
Link to college web site
 Specific buttons/messages for industry,
faculty and students
 www.cccbiotech.org
Create Community with Faculty Around the
State
 “All Hands” meetings North and South


Exchange ideas, best practices, technology
updates – industry speakers
Sponsor CC faculty at CSU conference and
other networking events –Personalized
Medicine World Conference
 Webinar series for faculty on topics of interest
and research results

Launching this month
Biomanufacturing
Pasadena Biosciences Incubator
 Operated by the community college in
collaboration with the city of Pasadena

Incubated 16 companies with 5 successful
‘graduates’
Pasadena Biosciences Incubator
Expansion
To 10, 000 sg ft in 2010
-new 2011 expansion planned
Exemplary Programs
LA Trade Tech College – ARRA funded
Fast track to work In collaboration with local WIBs
- Process technician
 Five weeks at the colleges
 10 to 15 week paid internship at company
 Students screened by WIB
 Targeting displaced workers

First cohort
 100% completion - 30 started - 30 completed
 Many placed

60 now in the pipeline
Exemplary Programs

San Diego Accelerated Program - ARRA
 Accelerated Biotech Program with bridge for
displaced and underemployed workers.
 Three semester program, in collaboration with WIB.


First cohort graduated this spring
60% have found full-time jobs
 One employer asked for more graduates

Lori – formerly homeless, single mother
Exemplary Programs
Displaced Nummi workers to Ohlone College
program
Working in collaboration with local WIBs and job
counselors from Nummi
 Variety of local companies interested in
graduates
Hosted Senate Select Committee on Biotechnology
hearing on workforce in October
 UC, CSU and CC testified – facilities tour and
conversation with students
Exemplary Programs
Exemplary Programs
Challenges
 Biotechnology programs are expensive

Increasing pressure to increase enrollments or
run less expensive classes
 Students are often underprepared

Two thirds of students entering California
community colleges assess below college
level in Math, English or both.
Summary





A number of colleges around the state offer
biotechnology courses or programs
Biotechnology enrollments are growing
Biotechnology graduates tend to earn more than
average for all cc graduates
Local programs respond to local workforce needs
There is increasing pressure on biotechnology
programs due to the expense and relatively lower
enrollments.
The Economic and Workforce
Development Program
 Mission:
 We invest in California's economic growth and global
competitiveness through industry-specific education,
training and services that contribute to a highly skilled and
productive workforce.
 Ten Initiatives
 Important to California’s economic growth

www.cccewd.net