Janice T' Bourque

1
MassBiotech 2010

• Janice T. Bourque
• President CEO
• Massachusetts Biotechnology Council

BioStrategy Seminar Series Thursday, September
18, 2003
2
Massachusetts Biotechnology Council

• The Massachusetts Biotechnology Council is a
  non-profit industry association for Massachusetts
  biotechnology.
• The MBC advances common goals of the
  Massachusetts biotechnology industry by
• Providing joint activities and services
• Influencing legislative and regulatory policies
• Strengthening industry community
  collaborations
• Building public support for biotechnology

3
National Biotechnology Industry

• United States
• 1,457 biotechnology companies (342 are public)
• Employing 191,000 people
• 28.5 billion revenue in 2001
• Life Sciences accounts 13 of GDP, by 2013
  expected to be 22
• 3.7 billion invested in biotech in 2002

Source Ernst Young, Beyond Borders The Global
Biotechnology Report 2002Feinstein Kean
Healthcare.
4
MA Biotechnology Industry

• Massachusetts
• Over 280 biotech (53 public) companies employing
  approximately 30,000 individuals.
• 835 million in life sciences-related venture
  capital investments in 2001
• Over 122 colleges and universities
• The Massachusetts Biotechnology Council (MBC) is
  the oldest and second largest biotechnology
  association in the world.
• Biotech accounted for half of the new industrial
  jobs created in Massachusetts during the past six
  years.
• Biotech accounted for 27 of 8.5 billion spent
  by Massachusetts public companies on RD, 15 of
  venture capital funds raised, and 18 of the
  patents filed.
• Massachusetts has 8 of the worlds clinical
  pipeline.
• The state receives highest NIH dollars per
  capita.
• 572.8 million invested in biotech in 2002.

Source Massachusetts Technology Collaborative,
2002 Index of the Massachusetts Innovation
Economy, 2003, MassBiotech 2010 report, MBC, 2002.
5
MassBiotech 2010 Report

• 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.
• Report available - www.massbiotech2010.com

6
Life Sciences Cluster Composed of Diverse
Interconnected Segments
BIOTECH Human therapeutics Agricultural
biotech Marine biotech Environmental
biotech Pharmaceuticals Diagnostics Biodevices
HEALTH CARE Hospitals Providers Payers HMOs Public
health organizations Patients
OTHER SERVICES Law firms Real estate IT
firms Accountants Construction Medical devices
BASIC RESEARCH Academic research labs Academic
medical centers
FUNDING ENTITIES Government grants Venture
capital firms Financial institutions
PUBLIC INSTITUTIONS State officials Local
officials Quasi-publics Public agencies Community-
based organizations
EDUCATION Universities Community colleges K-12
schools
SPECIALIZED SUPPLIERS Lab/ bio supplies
equip. Platform tools companies Contract
manufacturing Bioinformatics CROs
7
Competitive Advantage MA Companies Cite
Universities Talent as Primary Sources
Average allocation of 100 points across potential
sources of MA advantage
Weather
Cost of labor
Other
Leg./ reg. environment
Personal
Availability of spouse jobs
Quality supplier base
Quality of life
Availability of skilled technicians
Strength of partner industries
Proximity to other biotech companies
Availability of scientists
We started here because our founders come from
Massachusetts universities. We stay here because
the best people are here.
Proximity to major universities
Source MBC, BCG Biotech 2010 project interviews
8
Geographic Distribution of MA Biotech Employment
in 2001
Andover
Billerica
Wilmington
Bedford
Danvers
Beverly
Waltham
Devens
Woburn
Boxborough
Lexington
Maynard
Medford
Framingham
Watertown
Marlborough
Charlestown
Boston
Worcester
Cambridge
Brighton
Newton
Northborough
Natick
Westborough
Ashland
Rockland
Hopkinton
Canton
Agawam
Norwood
Milford
Wellesley
West Bridgewater
Franklin
Needham
Wareham
Fall River
Woods Hole
Source Massachusetts Biotechnology Council, BCG
Value Science Center
9
Biotech Companies in MA
Growth by Number of Companies
16
12
16
24
69
Source Massachusetts Biotechnology Council
10
Biotech Employment in MA
Growth by Number of Employees
27
40
8
28
58
Source Massachusetts Biotechnology Council
11
MA Biotech Employment Outpacing Total Industrial
Job Growth
Massachusetts Industrial Jobs
Massachusetts Biotechnology Jobs
(K)
(K)
1 per year
10 per year
Source Massachusetts Division of Employment and
Training
12
Biotech is a Growth Engine for MA
RD spending by Massachusetts biotechnology
companies(1)
Biotechnology patents granted to Massachusetts
companies and universities
Venture-capital funds raised by Massachusetts
biotechnology companies
(K)
(K)
(M)
16 per year
22 per year
16 per year
(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
13
MA Companies Own Over 8 of Global Clinical
Development Pipeline
Number of products in pipeline
17.5
8.1
7.5
7.3
5.4
State
Note State attribution based on headquarters
location of products primary owner (1) Pipeline
includes large and small molecule drugs,
diagnostic tests and biodevices Source Biospace
Clinical Competitive Intelligence Systems (CCIS)
database, September 2002
14
Number of FDA-Approved MA Biotech Products
Expected to More Than Double by 2005
Expected growth of FDA-approved Massachusetts
Biotechnology products
130
90
40
2002
2005
2010
Development phase
Current number of products
Probability of success(1)
Time to market(1)
Expected output
Phase I Phase II Phase III Approval pending
63 73 48 23
21 31 59 91
6 years 5 years 3 years 1 year
13 compounds by 2008 23 compounds by 2007 28
compounds by 2005 21 compounds by 2003

• Based on average figures for new chemical
  entities (NCEs) BCG analysis Tufts Center for
  the Study of Drug Development
• Source Biospace CCIS database A Revolution in
  RD, BCG, November, 2001 BCG analysis

15
MA Biotech In-State Capabilities
Commercial
Research
Development(1)
Manufacturing(2)
MA companies
108
57
7
9
10
8
Out-of-state companies with MA locations
15
24
26
23
3
2
11
Activity in Massachusetts
(1) Clinical development structure in state (2)
Commercial manufacturing only Note Sample is 134
human therapeutics companies Source Massachusett
s Biotechnology Council Survey 2002, BCG analysis
Activity in outside Massachusetts
16
Opportunity to Create Nearly 100K Jobs
MA share of U.S. biotech jobs 1991-2010
MA share of biotech jobs ()
150K new jobs

• Unleash potential
• MA closes gap with CA

1
90K new jobs

• Increase share
• MA strengthens its 2 position

2

• Lose ground
• MA share erosion continues

3
20K new jobs
Note 2001 baseline 30K biotech jobs and 70K
indirect jobs 100K total jobs Source Bio EY
2000 Report MBC 2002 survey BCG Analysis
Economic Model
17
Industry Challenges Opportunities

• Big Pharma moving to the state
• Keeping more pilot plant manufacturing in state
• State marketing campaign
• Massachusetts Its All Here
• Political engagement
• Increased interactions with Washington
• NIH
• CDC
• FDA
• Department of Defense

18
MBC Initiatives

• Economic Development
• Team Massachusetts approach
• Physical AE
• Permitting Zoning
• Site Identification
• Community Outreach Networking
• Education
• Science standards
• Teacher training
• High school lab equipment
• Workforce Training
• Project Management
• Clinical Trials for Doctors
• Biotech 101

19
MBC Initiatives

• Technology Transfer
• Improving process
• Addressing conflicts of interest
• Clinical Trials
• Expansion of and type of clinical trials in MA
• Policy/Public Affairs
• Stems cells
• Permitting
• Tax policy
• Price controls
• Restrictive access to therapies
• Communications
• Public understanding of biotech

20
MassBiotech 2010

• Janice T. Bourque
• President CEO
• Massachusetts Biotechnology Council

BioStrategy Seminar Series Thursday, September
18, 2003