Transcript The San Diego Life Science Cluster: A Regional

The San Diego Life Science Cluster:
A Regional Model for Global
Success
Genome BC/BC Biotech Presentation
April 29, 2003
San Diego’s Economy in Summary*
Per capita income in 2000 was $31,500 – 15th of 20
largest metropolitan areas.
Unemployment in 2000 was 3.0% (peak was in 1993 at
7.7%).
Median home price in January 2003 was $340,000 .
Fewer than 50% of residents own their homes.
*Source: SD Association of Governments
The Pre-Life Science Economy in
San Diego
Pre-1990: San Diego economy was primarily
tourism and defense based.
Early 1990s: Severe economic impacts caused
by defense cutbacks affecting aerospace, space,
shipbuilding and other military-driven industries.
By 1993 San Diego lost 58,000 jobs, 60% in
high-wage manufacturing sectors.
Life Science and San Diego’s New
Economy
Diversity in 4 major clusters that are now converging:
life science, electronics, telecom, and software.
From 1990 to 1998 high tech and life science added
over 46,000 jobs to the region – all but replacing the
defense contracting loss.
The success of the region is due to multiple factors, but
the physical environment plays a significant role.
Contributors to the Emergence of
San Diego’s Life Science Cluster
UCSD and private research institutes.
BIOCOM/san diego, UCSD-CONNECT, San
Diego Regional EDC and other associations.
Availability of a skilled workforce.
Local and state government collaboration.
Angel investment and venture capital firms.
The Emergence of Life Science –
The Role of UCSD
UC San Diego emerged in the 1980s as a biological
research powerhouse.
UCSD supported development of biotech start-ups
through an aggressive tech transfer program.
UC San Diego’s contribution:
- 3rd in U.S. in federal research grants with $351 million
in 2000.
- 150 companies formed out of UCSD research.
The San Diego Life Science
Community Today
377 companies – 38 publicly traded.
216 life science drug/therapy companies; 161
med device companies.
Market capitalization $23.7 billion.
9% of all drug revenues with product sales of
$866 million in 2000.
Currently 14 million square feet of laboratory
space is occupied by life science region-wide.
San Diego’s New Economy
IPOs increased from 1 in 1990 to 11 in 2000;
proceeds in 2000 were $981 million.
Exports were $9 billion in 1999 – a 7.4% per
year growth rate since 1993.
Venture capital investments in 2002 were $2.185
billion, a 15-fold increase from 1990.
Life Science Job Growth
From 1990 to 2000 industry employment in San Diego
grew by almost 100%, from 18,000 to 35,000 jobs.
In the same time period, salaries on average rose from
$39,000/year to $70,000/year.
Currently, life science products comprise about 7% of
employment in the region.
Life science job growth is forecasted to grow by 40%
from 2000-2010.
Life Science Company Size
57% of San Diego companies have between1-50
employees.
31% of San Diego companies have between 51250 employees.
12% of San Diego companies have more than
250 employees.
The San Diego Life Science
Workforce Today
Total life sciences payroll in 2000 in SD was $2 billion.
Approximately 7% of the workforce is on H1-B work
visas, primarily scientists.
$682 million in NIH grants awarded in 2000 – more per
capita (scientist) than any other region.
Intellectual Property is a Key Asset
for the Industry
650 U.S. and 750 foreign patent applications
filed in 2000.
100 U.S. and 300 foreign patents approved in
2000.
800 U.S. and 900 foreign patents pending as of
2000.
Disease Targets of San Diego Life
Science Companies
Cancer treatment: 26%
Immune disorders: 26%
Cardiovascular diseases: 15%
Neurological disorders/diseases: 14%
HIV/AIDS: 6%
Other: 13%
What is the Status of Product
Development?
13% in Phase III
13% in Phase II
11% in Phase I
4% IND
24% in preclinical testing
35% in research lab.
An Industry Delivering on the
Promise of Products
1995 - 100 products in clinical trials
1996 - 150 products in clinical trials
1997 - 160 products in clinical trials
1998 - 300 products in clinical trials
San Diego-based companies surveyed by
BIOCOM currently have more than 25
commercial products and 86 products in latephase clinical trials.
Commercial Products are Becoming
a Reality
Viracept® by Agouron/Pfizer is the leading HIV drug in the world
with 50% of the market.
Rituxan® and Zevalin™ by IDEC are the first monoclonal
antibody and first radioimmunotherapy for treatment of nonHodgekin’s lymphoma to be approved by the FDA.
Targretin® by Ligand treats cutaneous manifestations of
cutaneous T-cell lymphoma.
Rapid, sensitive early detection assays developed by Gen-Probe
are used by the Red Cross to screen donor blood for HIV and
Hepatitis C
When Will New Products Reach the
Market?
5% are more than 5 years away from
commercialization.
4% are from 3-5 years away.
24% are from 1-3 years away.
8% are from 6 months - 1 year away.
The Emergence of Life Science –
The Role of Associations
Cooperation and collaboration are characteristic
of San Diego as a region.
BIOCOM, SD Regional EDC, the SD Chamber of
Commerce and UCSD-CONNECT work together
on biotech and general economic issues.
Each association takes the lead in the area in its
area of strength.
The Role of BIOCOM
BIOCOM was formed in 1995 through the
merger of the SD Biocommerce Association and
the BIC.
BIOCOM membership consists of 450 life
sciences and service companies and institutions.
BIOCOM and the greater SD community
represent a system of members that drive
success of the industry.
The BIOCOM Mission
To position the greater San Diego life science
community to achieve individual and collective
success on the world stage of scientific and
technological innovation, and in the development
of products that improve global health and
quality of life.
The BIOCOM Mission
To achieve its mission, BIOCOM focuses on
creating an environment where legislative policy,
regulatory actions, resources, economic
conditions and public awareness positively
influence the growth of the industry.
The BIOCOM Vision
To be recognized by each of our members as the
most valued organization in strengthening and
enhancing their potential for success.
The Strength of Membership
Membership consists of numerous sectors
including:
Biotech, large pharma and biomed devices
Tech service
Patient care
Education and academia
Financial ventures
The BIOCOM Leadership Agenda
BIOCOM has adopted a six point Leadership Agenda:
1. Advocate responsible legislative policy.
2. Promote an effective and responsive regulatory
climate.
3. Enhance public perceptions and patient awareness.
4. Attract and educate sources of financial capital.
5. Foster expedited scientific development and
technology transfer.
6. Attract and develop critical human resources.
BIOCOM Leadership Structure
Board of Directors - max. 50 members.
Executive Committee - Officers and 6 at large
members.
Board Committees: Member Services; Capital
Development; Public Policy & Regulatory Action;
Science and Technology; Workforce and
Capability Development.
Regional Coalition Partners
San Diego Regional Chamber of Commerce
American Electronics Association
San Diego Workforce Partnership
World Trade Association
UCSD-CONNECT
The Future of Life Science in
San Diego
Fully integrated life science companies will increase.
Increased collaboration/merger to build product base.
Growing presence of “Big Pharma”, e.g. Pfizer, Merck,
Becton-Dickenson, Elan, Johnson & Johnson and
Bristol-Meyers-Squibb.
Growth of platform technologies and bioinformatics
contributing to accelerated drug discovery.
San Diego will move to manufacturing products, e.g.
IDEC’s new planned 400,000 square ft. plant.
Conclusions
Having moved from non-existence to it’s current level of
economic significance in San Diego, the life science
cluster is fulfilling it’s economic promise.
The future economic potential of life science in San
Diego is significant due to the presence of other
contributing clusters.
Partnerships between industry, government and
academia have played and will continue to play a major
role in the growth of San Diego’s life science industry.
Conclusions
BIOCOM has been a primary reason for the SD life
science industry’s success to date.
The SD life science community has critical needs that
must be met for future success, including capital,
workforce and regulatory challenges.
San Diego’s life science community must create a more
prominent position for itself on the world stage –
BIOCOM will take on this responsibility in the future as
a regional association with a global presence.