Economic I mpact for
Massachusetts
The Massachusetts Biotechnology Council (MBC)
is a non-profit association for Massachusetts
biotechnology industry.
The MBC advances common goals of the
Massachusetts biotechnology industry by:
• Strengthening industry community & collaborations
• Influencing legislative and regulatory policies
• Building connections and support with stakeholders
Massachusetts Biotechnology Council
Source: Ernst & Young, Beyond Borders: The Global Biotechnology Report 2002;
Feinstein Kean Healthcare, BIO Editors & Reporters Guide.
Profile of National Industry
• United States Biotechnology Industry
– 1,500 biotechnology companies (300 are public)
– Employing 200,000 people
– $17 billion invested in biotech in 2003
– 190 products on the market
– 50 products are under review at FDA and 300 are in
Phase III
Source: Massachusetts Technology Collaborative, 2002 Index of the Massachusetts Innovation Economy, 2003, MassBiotech 2010
report, MBC, 2002; MISER, 2003.
• Massachusetts
– Over 300 biotech (71 public) companies employing
approximately 30,000 individuals
– Pharmaceutical products sector is state’s 4th largest
exporter - July 2003
– Nearly 90 clinical trials underway in Q1 2004
Profile of State I ndustry
Areas of Biotech Research
• Cancer
• Arthritis
• Parkinson’s
• Central Nervous System
• Diabetes
• Cardiovascular
• Tissue Repair
• Autoimmune
• Asthma
• Genomics/Proteomics
• Diagnostics
• Bioinformatics
• Biodefense
• Biological Devices
• Nanotechnology
• Psoriasis
• Cystic Fibrosis
• Vaccines
• HIV/AIDS
• Rare Disorders
• Brain
• Mental Health
• Infectious Diseases
• Xenotransplantation
• Stem Cells
• Marine/Agricultural Biotech
• Transgenic Animals, Fish, and Plants
• Industrial
• Environmental Remediation
Geographic Distribution of Massachusetts
Biotech Employment in 2001
Worcester
Woods Hole
Beverly
Danvers
Wilmington
West Bridgewater
Wareham
Fall River
Devens
Boxborough
Billerica
Agawam
Ashland
Bedford
Boston
Brighton
Cambridge
Canton
Charlestown
Framingham
Franklin
Hopkinton
Lexington
Marlborough
Maynard
Medford
Milford
Natick
Needham
Newton
Northborough
Norwood
Rockland
Waltham
Watertown
Wellesley
Westborough
Woburn
Number of employees
1,000
500
100
Andover
Source: Massachusetts Biotechnology Council, BCG Value Science Center
Life Sciences Cluster Composed of
Diverse and I nterconnected Segments
HEALTH CARE
Hospitals
Providers
Payers
HMOs
Public health
organizations
Patients
PUBLIC INSTITUTIONS
State officials
Local officials
Quasi-publics
Public agencies
Community-based
organizations
EDUCATION
Universities
Community colleges
K-12 schools
OTHER SERVICES
Law firms
Real estate
IT firms
Accountants
Construction
Medical devices
BIOTECH
Human therapeutics
Agricultural biotech
Marine biotech
Environmental biotech
Pharmaceuticals
Diagnostics
Biodevices
SPECIALIZED
SUPPLIERS
Lab/ bio supplies & equip.
Platform & tools companies
Contract manufacturing
Bioinformatics
CROs
BASIC RESEARCH
Academic research labs
Academic medical centers
FUNDING ENTITIES
Government grants
Venture capital firms
Financial institutions
Competitive Advantage
Massachusetts Companies Cite Universities and Talent as Primary
Sources
Source: MBC, BCG Biotech 2010 project interviews
Average allocation of 100 points across potential sources of Massachusetts advantage
“We started here because our founders
come from Massachusetts universities.
We stay here because the best people
are here.”
Others Agree, MA is the Place to Be
• Milken Institute Report: New England is #1US Biotech
cluster
• Venture Capital: In Q2 2004 MA received most
investment of any region according to MoneyTree
• The state receives highest NIH dollars per capita.
$2.1B in 2004 through 5,386 awards. (CA received
$3.0B)
• Companies relocate here: Novartis, Merck, Pfizer,
AstraZeneca, Amgen, Abbott Laboratories plus many
smaller firms
Massachusetts Biotech I n-State
Capabilities
(1) Clinical development structure in state
(2) Commercial manufacturing only
Note: Sample is 134 human therapeutics companies
Source: Massachusetts Biotechnology Council Survey 2002, BCG analysis
Commercial Research
Development
(
1)
Manufacturin
g
(2)
108
57
8
9
10
7
26
11
15
3
23
2
24
Mass.
companies
Out-of-state
companies
with Mass.
locations
Activity in Massachusetts
Activity outside Massachusetts
Opportunity to Create Nearly 100K
J obs in Massachusetts by 2010
Note: 2001 baseline: 30K biotech jobs and ~70K indirect jobs= ~100K total jobs
Source: Bio E&Y 2000 Report; MBC 2002 survey; BCG Analysis; Economic Model
Massachusetts share of U.S. biotech jobs
1991-2010
Mass. share of
biotech jobs (%)
Lose ground
• Mass. share
erosion continues
Increase share
• Mass. strengthens
its number 2
position
Unleash potential
• Mass. closes gap
with Calif.
1
2
3
~150K new jobs
~90K new jobs
~20K new jobs
0
2
4
6
8
10
12
14
16
18
20
1991 1996 2001 2005 2010
The Threats to MA Success
• Macroeconomic limits: Increased rationing worldwide
through queues, adoption delays and price controls.
• Scientific freedom limits: Stem cell research
restrictions. Human gene therapy restrictions. Etc.
• Research pipeline gaps: Basic research transition to
therapeutic research. Human clinical trial capacity.
• Downstream pipeline gaps:
bio-manufacturing, commercial operations
The MA Pipeline is Springing Leaks
Basic
Research
Therapeutic
Candidate
Lead
Optimization
Pre-Clinical
Regulatory
Review
Regulatory
Approval
Clinical
Trials
Biomanufacturing
Clinical Trials
Commercial
Tech Transfer/
Company Formation
VC funding moved downstream
NIH funding has not
NC & Foreign locations
MA Med Centers run relatively few
CROs mostly elsewhere
Partner out
Clinical
Adoption/
Marketing
Should We Care about the Leaks?
Basic
Research
Therapeutic
Candidate
Lead
Optimization
Pre-Clinical
Regulatory
Review
Regulatory
Approval
Clinical
Adoption/
Marketing
Clinical
Trials
Biomanufacturing
Clinical Trials
Commercial
Tech Transfer/
Company Formation
Future product pipeline at risk
Construction & Manufacturing jobs
Spread wealth beyond 495 belt
Help hospitals remain solvent
Improve patient access to best therapies
Value to being close to the clinic
Substantial service sector jobs
Commercial jobs
Control economic destiny
How Might We Patch the Pipe?
Basic
Research
Therapeutic
Candidate
Lead
Optimization
Pre-Clinical
Regulatory
Review
Regulatory
Approval
Clinical
Adoption/
Marketing
Clinical
Trials
Biomanufacturing
Clinical Trials
Commercial
Tech Transfer/
Company Formation
Therapy focused research:
Shared animal model facility
Translational medicine
Disease centric institutes
$3B CA Stem Cell initiative
$1B IL Stem Cell proposal
$1B FL biotech VC funding
$0.8B WI biotech initiative
$0.3B FL Scripps incentive
$0.05B MA Tech fund
Expedited permitting (passed)
Shared mfg. facility for trials, teaching, dev.
Smart incentives for full mfg sites.
Leverage community & western centers
Innovative IRB & patient monitoring
Faculty & administration focus
Become more acquisitive
Our History Shows the Risk
• Henry Ford moved from Cambridge (640 Memorial
Drive) to Detroit
• Shoes and Textiles moved South, then overseas
• Lyndon Johnson moved the NASA Space Center from
Kendall Square to Houston
• Minicomputers & workstations were out competed by
California and Texas
• Time will tell on IT off-shoring and Telecomm
The Benefits are Large
• Up to 100K, even 150K new jobs
• Move the economic, not just research, center of
Biotech to MA
• Provide MA residents with the best access to the best
medicines in the world
• Add over $250M in state & local tax revenue (Milken
Institute assuming doubling of current job base)
Success Demands Collaboration
HEALTH CARE
PUBLIC INSTITUTIONS
EDUCATION
OTHER SERVICES
BIOTECH
SPECIALIZED
SUPPLIERS
BASIC RESEARCH
FUNDING ENTITIES
Biotech’s Downstream
Economic I mpact for
Massachusetts
Mark Trusheim
Board Member & Treasurer
Massachusetts Biotechnology Council
doc_268702769.ppt
Massachusetts
The Massachusetts Biotechnology Council (MBC)
is a non-profit association for Massachusetts
biotechnology industry.
The MBC advances common goals of the
Massachusetts biotechnology industry by:
• Strengthening industry community & collaborations
• Influencing legislative and regulatory policies
• Building connections and support with stakeholders
Massachusetts Biotechnology Council
Source: Ernst & Young, Beyond Borders: The Global Biotechnology Report 2002;
Feinstein Kean Healthcare, BIO Editors & Reporters Guide.
Profile of National Industry
• United States Biotechnology Industry
– 1,500 biotechnology companies (300 are public)
– Employing 200,000 people
– $17 billion invested in biotech in 2003
– 190 products on the market
– 50 products are under review at FDA and 300 are in
Phase III
Source: Massachusetts Technology Collaborative, 2002 Index of the Massachusetts Innovation Economy, 2003, MassBiotech 2010
report, MBC, 2002; MISER, 2003.
• Massachusetts
– Over 300 biotech (71 public) companies employing
approximately 30,000 individuals
– Pharmaceutical products sector is state’s 4th largest
exporter - July 2003
– Nearly 90 clinical trials underway in Q1 2004
Profile of State I ndustry
Areas of Biotech Research
• Cancer
• Arthritis
• Parkinson’s
• Central Nervous System
• Diabetes
• Cardiovascular
• Tissue Repair
• Autoimmune
• Asthma
• Genomics/Proteomics
• Diagnostics
• Bioinformatics
• Biodefense
• Biological Devices
• Nanotechnology
• Psoriasis
• Cystic Fibrosis
• Vaccines
• HIV/AIDS
• Rare Disorders
• Brain
• Mental Health
• Infectious Diseases
• Xenotransplantation
• Stem Cells
• Marine/Agricultural Biotech
• Transgenic Animals, Fish, and Plants
• Industrial
• Environmental Remediation
Geographic Distribution of Massachusetts
Biotech Employment in 2001
Worcester
Woods Hole
Beverly
Danvers
Wilmington
West Bridgewater
Wareham
Fall River
Devens
Boxborough
Billerica
Agawam
Ashland
Bedford
Boston
Brighton
Cambridge
Canton
Charlestown
Framingham
Franklin
Hopkinton
Lexington
Marlborough
Maynard
Medford
Milford
Natick
Needham
Newton
Northborough
Norwood
Rockland
Waltham
Watertown
Wellesley
Westborough
Woburn
Number of employees
1,000
500
100
Andover
Source: Massachusetts Biotechnology Council, BCG Value Science Center
Life Sciences Cluster Composed of
Diverse and I nterconnected Segments
HEALTH CARE
Hospitals
Providers
Payers
HMOs
Public health
organizations
Patients
PUBLIC INSTITUTIONS
State officials
Local officials
Quasi-publics
Public agencies
Community-based
organizations
EDUCATION
Universities
Community colleges
K-12 schools
OTHER SERVICES
Law firms
Real estate
IT firms
Accountants
Construction
Medical devices
BIOTECH
Human therapeutics
Agricultural biotech
Marine biotech
Environmental biotech
Pharmaceuticals
Diagnostics
Biodevices
SPECIALIZED
SUPPLIERS
Lab/ bio supplies & equip.
Platform & tools companies
Contract manufacturing
Bioinformatics
CROs
BASIC RESEARCH
Academic research labs
Academic medical centers
FUNDING ENTITIES
Government grants
Venture capital firms
Financial institutions
Competitive Advantage
Massachusetts Companies Cite Universities and Talent as Primary
Sources
Source: MBC, BCG Biotech 2010 project interviews
Average allocation of 100 points across potential sources of Massachusetts advantage
“We started here because our founders
come from Massachusetts universities.
We stay here because the best people
are here.”
Others Agree, MA is the Place to Be
• Milken Institute Report: New England is #1US Biotech
cluster
• Venture Capital: In Q2 2004 MA received most
investment of any region according to MoneyTree
• The state receives highest NIH dollars per capita.
$2.1B in 2004 through 5,386 awards. (CA received
$3.0B)
• Companies relocate here: Novartis, Merck, Pfizer,
AstraZeneca, Amgen, Abbott Laboratories plus many
smaller firms
Massachusetts Biotech I n-State
Capabilities
(1) Clinical development structure in state
(2) Commercial manufacturing only
Note: Sample is 134 human therapeutics companies
Source: Massachusetts Biotechnology Council Survey 2002, BCG analysis
Commercial Research
Development
(
1)
Manufacturin
g
(2)
108
57
8
9
10
7
26
11
15
3
23
2
24
Mass.
companies
Out-of-state
companies
with Mass.
locations
Activity in Massachusetts
Activity outside Massachusetts
Opportunity to Create Nearly 100K
J obs in Massachusetts by 2010
Note: 2001 baseline: 30K biotech jobs and ~70K indirect jobs= ~100K total jobs
Source: Bio E&Y 2000 Report; MBC 2002 survey; BCG Analysis; Economic Model
Massachusetts share of U.S. biotech jobs
1991-2010
Mass. share of
biotech jobs (%)
Lose ground
• Mass. share
erosion continues
Increase share
• Mass. strengthens
its number 2
position
Unleash potential
• Mass. closes gap
with Calif.
1
2
3
~150K new jobs
~90K new jobs
~20K new jobs
0
2
4
6
8
10
12
14
16
18
20
1991 1996 2001 2005 2010
The Threats to MA Success
• Macroeconomic limits: Increased rationing worldwide
through queues, adoption delays and price controls.
• Scientific freedom limits: Stem cell research
restrictions. Human gene therapy restrictions. Etc.
• Research pipeline gaps: Basic research transition to
therapeutic research. Human clinical trial capacity.
• Downstream pipeline gaps:
bio-manufacturing, commercial operations
The MA Pipeline is Springing Leaks
Basic
Research
Therapeutic
Candidate
Lead
Optimization
Pre-Clinical
Regulatory
Review
Regulatory
Approval
Clinical
Trials
Biomanufacturing
Clinical Trials
Commercial
Tech Transfer/
Company Formation
VC funding moved downstream
NIH funding has not
NC & Foreign locations
MA Med Centers run relatively few
CROs mostly elsewhere
Partner out
Clinical
Adoption/
Marketing
Should We Care about the Leaks?
Basic
Research
Therapeutic
Candidate
Lead
Optimization
Pre-Clinical
Regulatory
Review
Regulatory
Approval
Clinical
Adoption/
Marketing
Clinical
Trials
Biomanufacturing
Clinical Trials
Commercial
Tech Transfer/
Company Formation
Future product pipeline at risk
Construction & Manufacturing jobs
Spread wealth beyond 495 belt
Help hospitals remain solvent
Improve patient access to best therapies
Value to being close to the clinic
Substantial service sector jobs
Commercial jobs
Control economic destiny
How Might We Patch the Pipe?
Basic
Research
Therapeutic
Candidate
Lead
Optimization
Pre-Clinical
Regulatory
Review
Regulatory
Approval
Clinical
Adoption/
Marketing
Clinical
Trials
Biomanufacturing
Clinical Trials
Commercial
Tech Transfer/
Company Formation
Therapy focused research:
Shared animal model facility
Translational medicine
Disease centric institutes
$3B CA Stem Cell initiative
$1B IL Stem Cell proposal
$1B FL biotech VC funding
$0.8B WI biotech initiative
$0.3B FL Scripps incentive
$0.05B MA Tech fund
Expedited permitting (passed)
Shared mfg. facility for trials, teaching, dev.
Smart incentives for full mfg sites.
Leverage community & western centers
Innovative IRB & patient monitoring
Faculty & administration focus
Become more acquisitive
Our History Shows the Risk
• Henry Ford moved from Cambridge (640 Memorial
Drive) to Detroit
• Shoes and Textiles moved South, then overseas
• Lyndon Johnson moved the NASA Space Center from
Kendall Square to Houston
• Minicomputers & workstations were out competed by
California and Texas
• Time will tell on IT off-shoring and Telecomm
The Benefits are Large
• Up to 100K, even 150K new jobs
• Move the economic, not just research, center of
Biotech to MA
• Provide MA residents with the best access to the best
medicines in the world
• Add over $250M in state & local tax revenue (Milken
Institute assuming doubling of current job base)
Success Demands Collaboration
HEALTH CARE
PUBLIC INSTITUTIONS
EDUCATION
OTHER SERVICES
BIOTECH
SPECIALIZED
SUPPLIERS
BASIC RESEARCH
FUNDING ENTITIES
Biotech’s Downstream
Economic I mpact for
Massachusetts
Mark Trusheim
Board Member & Treasurer
Massachusetts Biotechnology Council
doc_268702769.ppt