2 0 1 1 A n n u A l R e p o R t

The life sciences and the Washington Biotechnology & Biomedical Association (WBBA) had another productive year in 2011. While it remains a time of extraordinary challenge and opportunity, there is a great deal of momentum toward building a thriving life sciences sector in Washington. We are a sector which contributes sig- nificantly to economic vitality, educational excellence and improved health for all.

Despite a slow recovery in the broader economy, job growth in the life sciences has increased and continues to be one of the fastest growing job sectors in the state.

The WBBA continues to look for ways to add value to our members, and help do our part to grow life sciences in Washington. In 2011, our commercialization efforts helped more than 50 new life science startups get off of the ground, WINGS (Washington’s MedTech Angel Network) helped fund several new MedTech compa-nies, and our Venture Investment & Partnering (VIP) Forums brought organizations like Merck’s Global Health Innovation Fund and Bayer, as well as other VIP attendees to Seattle. In addition, many of our key initiatives to recruit, retain and develop the talent needed for our ecosystem are paying dividends. Last but not least, the WBBA’s Purchasing Programs have helped our members save millions of dollars. We are also working to ensure that all of your employees know that they are members of the WBBA as well, through our “You Are a Member” campaign.

We grew our collaborations this year to support our members and to increase public awareness about the life sciences’ strength in Washington. We continue to reach out globally. We had more members of foreign delegations at Life Sciences Innovation Northwest (LSINW) than ever before. Along with some of our members, we accompa-nied the Governor on her Trade Mission to France and Germany where we met with numerous potential strategic partners, signed a memorandum of understanding and helped to increase the awareness that Washington is a global hub for life science excellence. I was also very honored to be elected Chairman of the Board of the Council of State BioScience Associations (CSBA). This is a great opportunity and will help continue to shine the spotlight on Washington’s life science ecosystem and draw more potential investors and partners.

As we head into 2012, the economy remains uncertain and we continue to face many challenges and associated risks. Still, the opportunities for life sciences in Washington remain strong. In partnership with our members, we will persist in our focus to support and help grow one of the state’s most important economic drivers.

WBBA’s mission is “to support the translation of Innovation to Realization…from breakthrough discoveries to better health solutions.” Together, we help fulfill our mission. Thank you for your continued support. We look forward to a healthy and successful 2012!

Sincerely,

Letter from the President & WBBA Chair 2012 objectives

• translational research and commer-cialization support — continue to help research institutes and life science organizations start, grow and succeed.

• Access to Capital — through WINGS, VIP Forums and access to non-dilutive funding and research grants.

• talent — maintain, grow and develop initiatives to recruit, retain and develop the talent needed to grow life sciences in Washington.

• policy — increase the awareness of the importance of the life sciences as we support and help develop strong policy at the state and federal level — policy that maintains and increases Washington’s life science sector.

• purchasing power — helps preserve our members’ precious resources by offering the most competitive purchasing programs in the industry.

• life Science Innovation northwest — continue to grow LSINW as one of the most important, must attend, life science events in the nation.

• exceptional educational events and forums — continue to offer those that showcase and educate our members about our unique ecosystem.

• Membership — continue to grow our membership and increase involvement from more employees within member organizations.

• Spotlight — continue to shine the national and international life science spotlight on Washington’s thriving life sciences community.

Chris E. Rivera, President Thomas J. Clement, Chair

In Washington, 2,979 full-time equivalents (Fte) work in global health:

• 1,676 FTE in the South Lake Union IPZ• 325 FTE in the Bothell IPZ

Biotech Growth in South lake union exceeded expectations

A study released in March 2011 reports that biotech development in South Lake Union from 2004–2010 exceeded the most optimistic projections of the City of Seattle, both in square footage developed and in increased life sciences jobs, than the scenario predicted by Dr. Paul Sommers in 2004.

Washington Global Health 2011 — Strategic Mapping portfolio

“Washington is home to world leaders in global health research, funding and delivery, many of whom are located in South Lake Union.” Fifty-five Washington organizations collectively conduct global health work in 156 countries, including the United States. Those organizations are 35 nonprofits, and 20 businesses and public entities. Currently these organizations conduct 2,503 global health projects and initiatives, and employ nearly 3,000 people in Washington.

“ Washington state’s life sciences community has some of the best researchers and organizations developing some

of the greatest advancements in the field. While our state has seen tremendous growth in this industry, we know

there’s incredible possibility for further growth. By expanding our life sciences industry — we are not only creating

good jobs for Washingtonians, we are ultimately creating a healthier state and world.” — Governor Christine Gregoire

Life Sciences Driving Washington’s Innovation Economy

Spokane4 FTE

Whitman235 FTE

Clark2 FTE

Kittitas 1 FTE

Benton29 FTE

King2,381 FTE

Snohomish326 FTE

Kitsap1 FTE

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

JanOctJulApr AprJanOctJulAprJanOctJulAprJanOctJulyAprJan

2007 2008 2009 2010 2011

Washington Life Sciences Employment Total Washington Employment

Rela

tive

Per

cent

Cha

nge

in J

obs

For more information: www.seattle.gov/economicdevelopment | www.wghalliance.org | www.washbio.org

Life Sciences Job Growth vs. Total Employment

Source: ”Trends in Washington’s Life Sciences Industry 2007-2011” by the Washington Research Council

WBBA’s Commercialization efforts encom-pass multiple programs and partnerships focused on increasing access to capital and facilitating the transition from inno-vative discovery to commercial realization.

WInGS (the Washington Medical technology Angel network)

WINGS was born out of the WBBA in 2010 to close the gap in early stage funding and accelerate the translation of medical technology innovation from the lab bench to patients. Since WINGS’s inception:

• 86 medical technology opportuni-ties have been screened by the 20+ member screening committee.

• 19 companies have presented at seven WINGS Investor Meetings.

• WINGS Angels have invested $1.7M in six Washington companies, and have brought in an additional $1.2M through “friends of WINGS.”

VIp (Venture Investment & partnering) Forums

The WBBA brings high quality venture investors and strategic partners to Seattle to showcase promising life science companies and research oppor-tunities in the region. In 2011, WBBA hosted five VIP Forums: BioWa, Inc., J&J COSAT, Takeda Ventures, Merck GHI and Bayer HealthCare. More than 45 one-on-one meetings between local organiza-tions and visiting VIPs took place. VIP Forums have evolved to include a spon-sored presentation by each VIP to allow for increased opportunities to network with local companies and research groups.

Commercialization Consulting

WBBA offers pro bono consulting to early forming life science companies. More than 55 early stage companies and life science entrepreneurs sought WBBA support in 2011—see data at right. Historically, approximately 30 percent of these startups raise capital and hire management.

lifesciencestartup.com

Powered by WBBA, lifesciencestartup.com is an integrated resource for early stage life science entrepreneurs in Washington state. Whether you are in the process of company formation, raising money, or need advice, we have you covered with up-to-date community-contributed information. The site will be enhanced in 2012 to support MedTech exportation. www.lifesciencestartup.com

Commercialization

Startup Overview

type of Company

Of 55 unique company consults through 3rd quarter, 2011:

• 62% MedTech

• 24% Biopharma

• 11% InfoTech

• 3% CleanTech

Stage of Company

Of 55 unique company consults through 3rd quarter, 2011:

• 53% Emerging

• 27% Growth

• 20% Idea Stage

Intellectual property (Ip) Drives Innovation

Of 49 companies*:

• 43% IP Developed In-House

• 31% IP Licensed

• 26% Portfolio Includes In-House IP Plus Licenses

*20 percent license technology from Washington research institutions

“ A strong and growing life

sciences industry is critical for

Washington state’s workers

and economy. We have so

many great innovators in

Washington state — and I

am going to keep working to

make sure they get the sup-

port they need to succeed.”

— Senator Patty Murray

talent Creation through education

WBBA, working with a coalition of busi-nesses and organizations led by the Puget Sound Regional Council, was instrumental in passage of two higher education bills. These bills came out of recommendations from the Governor’s Higher Education Task Force upon which Chris Rivera served. One bill provided for tuition flexibility and accountability measures for Washington colleges and universities. The other bill established the Opportunity Scholarship Act to assist both low- and middle-income students in pursuing a college education. The first scholarships will be made in December 2011.

Joint Innovation policy

WBBA, the Technology Alliance and the Washington Technology Industry Association have come together as an Innovation Coalition. It is our shared innovation community which creates economic opportunity and enhances the quality of life for citizens across the state. The focus of the shared policy agenda includes:

• A public education system focused on achievement and accountability

• Robust research and commercialization programs

• A business climate that nurtures innovative, entrepreneurial companies

Increased Conversations with elected officials

• WBBA members and Chris Rivera testified before State Legislative Committees regarding economic development, higher education, and product stewardship.

• Conversations regarding the strength of Washington’s life sciences and federal issues were held with Senator Patty Murray and Congressmen Jay Inslee, Dave Reichert, and Adam Smith.

• WBBA/Life Sciences Discovery Fund Annual Open House was attended by many state and federal elected officials.

• Tours of numerous companies were hosted for both state and federal legislators and staff.

• Participated in both the BIO Fly-In and the AdvaMed Fly-In and met with many members of our federal delegation.

leading the leaders

WBBA with its partners Greater Spokane Incorporated, Inland Northwest Health Services and Washington State University hosted the 4th Annual Life Sciences Lead- ership Summit 2011. More than 80 leaders from across the state gathered to discuss strategies to grow Washington’s life sciences and enhance competitiveness.

WBBA’s Career Center

New to the WBBA website in 2010, the Career Center hosted nearly 9,000 online job searches between January 1 and September 30, 2011. Those searches led to more than 136,500 views of individual job openings, and job seekers were able to apply for hundreds of life sciences jobs. Posted positions and individual job views both increased by more than 50 percent when comparing the first six months of 2010 to 2011.

Governor’s trade Mission to France and Germany

Last year it was China, this year Chris Rivera and WBBA members joined Governor Gregoire on her Trade Mission to France and Germany. The delegation met with numerous potential strategic partners, signed a memorandum of understanding and helped increase the awareness that Washington is a global hub for life science excellence.

lSInW 2011 — Record Breaking

WBBA’s 12th Annual Life Science Innovation Northwest (LSINW) broke all records. On March 2, 2011 WBBA launched the biggest ever LSINW at its new venue — the Washington State Convention & Trade Center. Nearly 1000 attendees from 20 states, Washington D.C. and 15 countries including Australia, Canada, China, Denmark, Germany, India, Japan, Poland and the United Kingdom attended the conference.

Attendees were treated to two days of panel discussions, a state-of-the-industry report by G. Steven Burrill, LSINW Co-Host and CEO of Burrill & Company, and a keynote address by James C. Greenwood, President and CEO, Biotechnology Industry Organization (BIO).

exceptional life Science programs

WBBA delivered even more noteworthy life science programs than ever — featuring 35 educational, business development and networking events.

Significant Achievements

“ What an illuminating experience it was to go to the stem cell and

regenerative medicine panel event a couple weeks ago! the panel

members were phenomenal. We were a rapt audience!”

— Lincoln Vanderveen, Congressman Reichert staff member

the next 50 — Celebrating the 50th Anniversary of the Seattle World’s Fair in 2012

WBBA participates on a business and community consortium creating a six-month celebration meant to generate forward momentum on community strengths in several areas including: science and technology, global health, learning, sustainability, commerce and the innovation economy, and civic action. Life Science Innovation Northwest takes place July 11–12, 2012, to highlight science and technology, and global health.

Global Health nexus 2012

Global Health Nexus, Seattle — an initia-tive of the Washington Global Health Alliance (WGHA) in partnership with Prosperity Partnership and WBBA — has been working to bring the Seattle region’s global health com munity together to build a platform for enhanced collaboration, public awareness, and action.

Collaboration

“ We see our relationship with the WBBA as an opportunity to further

integrate our service offerings into the local life Sciences community,

as well as being a conduit for InteRtoX to contribute to the community

through volunteer services offered by the WBBA.”

— Richard C. Pleus, Ph.D., Founder and Managing Director, INTERTOX

“ At Samepage, we are delighted to

be part of the WBBA family! In the

first month of our membership, we

benefited from extensive network-

ing, commercialization consultation

services, and the opportunity to

present the Samepage platform

at a WBBA VIp Forum.” — Paul

Ciechanowski, MD, MPH, Founder and

Chief Consultant, Samepage Health

“ We’d been members for 7 years, and during that time found our

membership to be extremely beneficial. I regret that we’d let it lapse

for several years, but are now back in the fold, and eager to reconnect

with other members.” — Beth Anderson, CEO & Co-Founder, Arkitek Studios

“ Many of Washington state’s

small biotech companies are

leaders in developing the

health care cures of tomor-

row. Medical innovation is a

key way to lower health care

costs, which also helps pro-

tect and create high-paying

jobs and bring critical new

drugs to market.”

— Senator Maria Cantwell

CeRB

The University of Washington Center for Commercialization (C4C), WBBA and WGHA were awarded a Governor’s grant to increase medical technology and global health exports from Washington state in order to create more private sector jobs. The project complements the National Export Initiative under the Obama administration. Benefits to companies include: 10 case studies to be completed by April 2012, ongoing direct assistance to companies through July 2012. Also in July, a content section about MedTech exporting will go live on lifesciencestartup.com, during The Next Fifty Global Health Month.

WBBA & Grow Seattle

WBBA is a Grow Seattle Business Partner with the City of Seattle Office of Economic Development (OED). OED is focused on retaining and growing existing businesses to support new entrepreneurs and economic growth. To that end OED has prioritized service through direct contact with individual businesses as a way to support their growth. WBBA provides business retention and expansion assis-tance to Seattle life sciences companies as part of its Grow Seattle partnership.

You Are a Member!

In 2011, WBBA launched our “You Are a Member” campaign to help inform employees of member companies that they are also WBBA members. Many of the WBBA’s benefits and offerings apply to the individual, and through this effort we seek to further engage the life sciences community.

Member posters are distributed at WBBA events.

Our team now offers meet-and-greet opportunities to introduce member company staff to WBBA events, offerings, and volunteer opportunities.

2011 Core & Institution Membership Survey

How Has the WBBA Helped Your organization?

“ Excellent conference on comparative effectiveness opened up opportunities for research collaboration.”

“ LSINW was a great event that brought together people in the industry. The most important aspect is unifying this interdisciplinary community.”

How Have You and/or Your organization Benefited From WBBA Membership?

• 90% Established new relationships through networking events

• 75% Learned more about the life sciences industry

• 30% Saved money through WBBA’s Purchasing Solutions Program

Membership

Current Member types

• 48% Core – Companies researching and/ or developing life science products

• 34% Associate – Life sciences service providers

• 9% Affiliate – Organizations sharing an interest in supporting life sciences

• 7% Institution – Research institutions including universities and nonprofits • 2% Investor – Life sciences investors

Member Companies number of employees

• 49% 10 or less

• 22% 11 to 50

• 29% 51+

Current Core and Institution Member types

• 49% Biopharma

• 26% Medical Technology

• 13% Research Institution

• 5% IT-based Life Sciences

• 5% Other

• 2% Global Health

WBBA Members Saved Millions using our purchasing program

Our members have purchased over $30 million in goods and services from WBBA pur-chasing partners, in the process, saving nearly $5 million directly to their bottom lines.

200 companies are currently benefiting from WBBA’s cost savings Purchasing Solutions Program.

“ the life science sector has almost limitless potential for innovation

and therefore amazing job creation. that is why we must preserve

and fight for current and future investments in the industry.”

— Congressman Jay Inslee

WBBA teamChris e. RiveraPresident

patti McKinnell DavisDirector, Public Affairs

Kathleen postonDirector, Administration

Danah AbarrBusiness Development Manager

Darcy JacobsonEvent Manager

Christiana DelloRusso, phDCommercialization Associate

Brenda StavCommunications Associate

Cole BasquéExecutive Assistant

Chris porterCommercialization Consultant

Board Membersexecutive Committee

thomas Clement — Chairthong Q. le — Vice ChairKevin F. Kelly — SecretaryMargaret McCormick, phD — TreasurerJack naganerik nilssonGregory SesslerMartin Simonettitodd Simpsonterrence J. Sweeney Chris e. Rivera — President

Board of Directors

norman Beauchamp, MDD. William Brady, Jr.Michelle BurrisCathryn Campbell, JD, phDJeff Chamberlain, ex officiolisa CohenChristopher J. elias, MD, MpHH. perry Fell, phDDon Foster, phDAlan D. Frazierthomas FritzMitchell H. Gold, MDJames Gore

Stephen M. Graham, JDDouglas R. Hansmann, phDJohn F. HarrisJames B. Hendricks, phDlee Huntsman, phDMichael HutchingsBruce Jackson, ex officioterry Johnson, phDAllan Jones, phDJim KarkaniasJames KatzaroffColleen KerrGary Kocher, ex officioMinh leJim lisbakkenSylvia liu, ex officioGustavo Mahler, phDtim Martineric Meierulrich Mueller, phDJens u. Quistgaard, phDerick Rabinslisa G. Shaffer, phDKathleen K. SmithKen Stuart, phDRonald thomasCarl WeissmanJoseph p. Whitford

2011 Chairman’s CircleAmgenFenwick & West llplilly uSA, llCWells Fargo Insurance Services

2011 platinum leadersAlexandria Real estate equities, Inc.Dendreon CorporationFairmont olympic HotelGilead Sciences, Inc.novo nordisk Inflammation Research Centerperkins Coie llpphilips ultrasoundpraxair Specialty Gases and equipmentStoel Rives llpuniversity of WashingtonvcfoWashington State university

2011 Gold leadersAirgas Specialty Gas DivisionAllen Institute for Brain ScienceBattelle pacific northwest DivisionBDoBenaroya Research Institute at Virginia MasonBill & Melinda Gates FoundationBioMed Realty trustBnBuilders, Inc.Cardiac Science CorporationClark nuber p.S.CMC Biologics Inc.Cooley llpDlA piper uS llpernst & Young llpFedexFred Hutchinson Cancer Research CenterGraphica, Inc.Inland northwest Health Services (InHS)Institute for Systems BiologyK&l Gates llpKelley Imaging SystemsKibble & prenticeKpMG llpMedIntellibasenBBJphysio-Control, Inc.premera Blue Crosspuget Sound Blood Center and programSeattle Children’s Research InstituteSeattle Genetics, Inc.Sellen Construction CompanySightlifeSilicon Valley BankSkanska uSA Building Inc.SonoSite, Inc.Spiration, Inc., olympus Respiratory AmericaSwedish Research Division at Swedish

Health Servicesturner Construction CompanyVWR Scientific productsZymoGenetics, a Bristol-Myers Squibb Company

Connect with WBBA

www.washbio.org

1551 Eastlake Ave E, Suite 300

Seattle, Washington 98102

206.732.6700

W W W . W A S H B I o . o R G

thank you for your leadership and sponsorship!

please visit us at www.washbio.org.Home to Washington’s life Sciences community.