New Jersey’s Thriving Biotechnology Industry

Debbie Hart President BioNJ

Overview

  Biotechnology Industry in New Jersey

  Next Steps to the Next Level: Challenges and Opportunities

 Early-Stage Financing  Talent  Technology Transfer  Lab Space  Continued Government Support

NJ Biotechnology Industry Overview

 New Jersey is among the leading biotechnology clusters in the U.S. and also the world.

  80 biotech companies in New Jersey in 1998

 More than 335 in New Jersey today

NJ Biotechnology Industry Overview

  Biotech Tends to Cluster   US 1 Corridor: Princeton to North

Brunswick   US Route 130: Hamilton to North Brunswick   Morris County   Bergen County   Somerset County

New Jersey Ideally Located for Biotech Research, Development and Commercialization

Convenient access to centers of government and finance in Washington and New York

International Transportation Hub with Easy Access to Europe and Asia

Why Biotech LOVES New Jersey

  Despite some consolidation and downsizing, still a unique and strong Pharmaceutical Industry base

  Opportunity for collaboration with Big Pharma   Highly Educated and Talented Workforce   Supportive State Government   Strategic Geographic Location   Access to FDA and NIH   Access to the World’s Financial Center   Centers of Academic Excellence at: Rutgers University,

Princeton University, UMDNJ, NJIT, NYC and Phila   Quality of Life

Tracking Biotech Growth in NJ

Ernst & Young BioNJ 2010 Survey:

 Number of Biotech jobs increased 50% from 2007 to 2010: from 10,000 to 15,000

 Plus Support Organizations  51% of respondents have operated in New Jersey for 5 years or less.  31% of respondents have been in business for 5 years or less.  78% anticipated hiring additional employees in 2010.  The main area of research continues to be Oncology.  New survey due in June 2012.

Life Sciences Industry an Economic Engine

Biotechnology, Medical Technology and Pharmaceutical industries collectively create:

 Operating expenditures of these industries added $23 billion to the State’s Gross Domestic Product in 2009-2010.  Work generated by operating expenditures in 2009 amounted to more than 200,000 jobs.  Capital spending in 2010 generated more than $280 million in federal, state and local tax revenues that year.  More than $7.5 billion in overall tax revenue generated by these three industries went to federal, state and local governments.

Rutgers University, March 2011

Challenge: Early-Stage Financing

  Lack of access to early stage funding consistently reported as the primary impediment

  Funders moving to the later stages of drug development life cycle as they look for

“Sure Thing”   Situation exacerbated by national economic

downturn

New Jersey Solutions to Early-Stage Funding Issues

  NOL Program   Conceived by BioNJ and instituted in 1998   Estimated to produce a 15:1 ROI   Pool reduced from $60M to $30M in 2010   Restored to $60M in 2011   Proposal to dedicate solely to biotech

New Legislative Proposals

  S-581– Angel Investor Tax Credit   Establishes credit against corporation

business and gross income taxes for investing in New Jersey emerging technology businesses

  BioNJ recommends increasing proposed tax credit from 10 to 25 percent

Challenge: Talent

  Consolidation of Big Pharma providing opportunities in Biotech

  Exciting and Preparing the Next Generations

Opportunity: Talent Solutions

  BioNJ Life Sciences Talent Network

  STEM Education Initiatives

BioNJ Life Sciences Talent Network

  BioNJ named by NJDLWD to head one of six special Talent Networks

  Industries designated as critical to NJ Economy   Life Sciences   Transportation, Logistics and Distribution   Advanced Manufacturing   Financial Services   Health Care   Technology and Entrepreneurship

BioNJ Life Sciences Talent Network

  Job Postings on Career Site   Transition Workshops   Candidate Sourcing   Networking Events   Connecting Employers with Talent   Customized Training Grants

BioNJ Life Sciences Talent Network

  www.BioNJTalentNetwork.org

  Website experiencing an increase in job postings

  Greatest demand in R&D, QA, Regulatory Affairs and Clinical Trials Management

Exciting and Preparing the Next Generation -- STEM Education

  Science, Technology, Engineering and Mathematics (STEM) Education

  A growing movement – from Rutgers Mini-MBA to Mercer County Community College, to the Biotechnology High School in Monmouth and Bergen County Academies in Hackensack

  To truly succeed, TCHS = BCA

Challenge and Opportunity: Technology Transfer

 Massachusetts and Southern California still setting the standard

 New Jersey Getting Better

Technology Transfer Solutions

  Rutgers increasing emphasis, i.e. Rutgers SuperComputer agreement with IBM

  BioNJ Translational Institute Initiative   Tech Transfer Panel at 3rd Annual BioNJ

International Biopartnering Conference, May 10-11

  NJ can incentivize companies and universities to work together

Challenge: Lab Space

  Demand for office space by Biotech companies expected to remain stable

  Demand for pre-built lab space in the 5,000 to 10,000 sq. ft. range expected to grow

  Currently available space seen as expensive and poorly located

  Lack of good space in Piscataway, Route 287-Bridgewater Corridor and Newark

Opportunity: Government Support

  Governor and Lt. Governor support of industry and identification of Biotechnology as a targeted area for growth

  Focus on making NJ more business friendly   Focus on attracting companies   A well conceived, coordinated State Plan

–  Priority Industry Clusters –  Priority Growth Investment Areas

PlanSmart Considerations

  New Jersey will remain the Medicine Chest of the World -- despite some retrenchment in Big Pharma -- in the near term.

  Biotechnology growth continues from all angles   Start-ups (Business plans vs resumes)   Spinouts from NJ Companies and Universities   Out-of-State Relocations   International US Locations

PlanSmart Considerations

 More than 20 life science companies committed to relocate to or expand in

New Jersey in 2011

 Companies following traditional clustering patterns

20 Companies in 2011

  Allergan, Bedminster   Amarin Corporation, Bedminster   Aptalis Pharma, Bridgewater   Archimedes Pharma USA, Bedminster   Bayer HealthCare, Parsippany (new corporate campus and expansion)   BioLeap, Pennington   Celsion Corporation, Lawrenceville

20 Companies in 2011

  Clearview Diagnostics, Piscataway   Ibris, Plainfield   Ipsen, Basking Ridge   LEO Pharma, Parsippany (expansion)   Novo Nordisk, Princeton (expansion)   NP Pharmaceutical, Belle Mead   Oncobiologics, Cranbury

20 Companies in 2011

  Optimer Pharmaceuticals, Jersey City (expansion)   Photocure, Princeton   ProStrakan, Bedminster   Thrombogenics, Iselin (expansion)   Veloxis Pharmaceuticals, Edison

PlanSmart Considerations

  Biotechnology industry will continue to grow

  Most growth anticipated to gravitate to existing clusters

  Conveniently located pre-built lab space is an issue/opportunity

PlanSmart Considerations

  Implications for land use/regional planning   Lab space demand   Increased traffic in congested areas

  How do you allow for growth and yet maintain the quality of life that is one of NJ’s greatest assets and attractions

Debbie Hart, President BioNJ

Whitehorse Executive Center 1255 Whitehorse-Mercerville Road

Building B – Suite 514 Trenton, NJ 08619

609-890-3185 tel • 609-581-8244 fax DHart@BioNJ.org • www.BioNJ.org