Presentation is loading. Please wait.

Presentation is loading. Please wait.

Biotechnology in the Midwest: A Perspective from a Blues Aficionado Michael S. Rosen, MBA, ePrairie Biotech Columnist.

Similar presentations


Presentation on theme: "Biotechnology in the Midwest: A Perspective from a Blues Aficionado Michael S. Rosen, MBA, ePrairie Biotech Columnist."— Presentation transcript:

1 Biotechnology in the Midwest: A Perspective from a Blues Aficionado Michael S. Rosen, MBA, ePrairie Biotech Columnist

2 Rosen Background Academics –B.A.: Beloit College, International Relations –MBA: University of Miami, International Business –Postgrad studies: Sophia University (Japan); Universidad Tecnica Federico Santamaria (Chile) –Lecturer, International Management, Lake Forest Graduate School of Management Work Experience: 30 years pharma/biotech/ag –Big Pharma/Big Ag ( 20 years) Pfizer (10 years/6 countries): marketing/sales Bristol-Myers (2 years): business development Searle/Monsanto (8 years/3 countries): general mgmt –Biotech (10 years) PharmaMar (Spain): CEO Endorex Corp. (Chicago): CEO Barbeau Pharma (Chicago): CEO

3 Rosen Background Other Activities: IBIO: first vice-chairman and co-founder Immune Cell Therapy (cancer vax): chairman Microbial Cellulose Technologies: board of directors Efoora: board of directors ePrairie: biotech columnist Lived in: –Japan –U.K. –Italy –Spain –5 L.A. countries PASSIONS: –1970 Fender Telecaster/ 1968 Fender Super Reverb Amp –1998 Gibson Les Paul –1980 Guild Acoustic

4 What is Biotech A culture? – an extension of the rock culture of the 1960’s A science? – genetic engineering – recombinant DNA The future of the pharmaceutical industry? ALL OF THE ABOVE!!!!!!!!

5 History of Biotech 1953 : Structure of DNA: Crick/Watson 1958: DNA made in test tube 1965: Fusion of mice and human cells 1966: Genetic code cracked 1969: Synthesis of an enzyme 1971: Synthesis of first gene 1972: DNA of humans 99% similar to chimps 1972: First genetic engineering: Cohen/Boyer 1974 NIH forms RAC to monitor DNA experiments 1975: First monoclnal antibodies 1977: First expression of human gene in bacteria 1978: Human recombinant insulin produced

6 The Start of an Industry Pivotal cities: late 1970’s – San Francisco (Genentech/Cetus) – Los Angeles (Amgen) – Chicago (E. Goldwasser/UC- EPO) – Geneva (Biogen starts) – Boston (Genetics Institute) Pivotal events: – Cetus and Genentech go public raise $108 M and $36 M in IPO

7 Why is Biotech a Growth Industry? Healthcare – Aging of populations in U.S., Europe and Japan Baby Boomers = 30% of U.S. population – Many diseases still unconquered: Cancer, HIV, Alzheimers, Diabetes – New Diseases: SARS, Prion, West Nile Virus, Obesity – Need for Personalized Medicine Drugs don’t work in 40% of population – Chronic Diseases (75% of all HC costs)

8 Why is Biotech a Growth Industry? Agriculture – replacement of old “dirty” industries, e.g. agrochemicals/pesticidies – improved food productivity from same amount of land –Utilization of land not currently arable – Use of agricultural products for fuel and plastics (bio-refineries)

9 Why is Biotech a Growth Industry? Industry – improved productivity of current processes – environmental cleanup – apply same technology used in medicine to chemistry for industry

10 The Biotech Revolution Environment & Petroleum Food Industry Pharma Industry Agricultural Industry BIOTECH Medical Device Industry Diagnostics Industry Nanotech

11 Largest Pharmaceutical Companies (2003) CompanyRevenue (B) 1. Pfizer (U.S.)$ Johnson & Johnson(U.S.) GlaxoSmithKline (U.S./U.K.) Sanofi-Aventis (French) Novartis (Swiss) Roche (Swiss) Merck (U.S.) Bristol-Myers Squibb (U.S.) Abbott Labs (U.S.) Astra-Zeneca (British/Swedish) 18.8

12 Worldwide Pharmaceutical Market (2003) MarketSales(B)Share Growth U.S.$ %+11% Europe % +8% Japan % +2% Asia % +9% Latin Amer % Mid.East/Africa %17% Canada 9.8 2%12% TOTAL $ %+9%

13 Largest Biotechnology Companies (2003) Company Revenue (B) 1. Amgen (U.S.) (16)$ Genentech (U.S./ Swiss) (29) Serono (Swiss) (39) Chiron (U.S.) (43) Genzyme (U.S.) (45) 1.7

14 Major Product Categories (2001) CategorySales(B)Share Growth Anti-ulcerants$19.56% +14% Cholesterol reducers 18.95% +22% Antidepressants 15.95% +20% Anti-rheumatics 10.93% +16% Calcium channel block 9.93% +4% Anti-psychotics 7.7 2% +30%

15 Biotech in the United States (2003) 1473 COMPANIES 314 publicly-traded 1473 COMPANIES 314 publicly-traded

16 Biotech in the United States (2003) $311 billion market cap $39.2 billion in annual sales $17.9 billion in R&D expense $311 billion market cap $39.2 billion in annual sales $17.9 billion in R&D expense

17 Biotech in the United States (2003) 370 biotech drugs/vaccines in clinical trials 198,300 people employed 37 biotech drugs/new indications approved by FDA (2003) 370 biotech drugs/vaccines in clinical trials 198,300 people employed 37 biotech drugs/new indications approved by FDA (2003)

18 Major Biotech Centers in the United States Emerging Biotech Centers Midwest Biotech Centers (300+ companies)

19 Biotech Profile in the Midwest (8 states) 2003 TotalPublic Total Companies (estimated) Michigan Illinois Wisconsin Iowa Missouri Indiana Minnesota Ohio 30 3

20 Biotech Profile in the Midwest Biotech Profile in the Midwest Life Science Industry EmploymentTotal Jobs - California101,298 - New Jersey 93,214 - Illinois 57,930 - New York 39,140 - Pennsylvania 37,639 - Minnesota 31,356 - Indiana 29,541 - Massachusetts 25,388 - North Carolina 21,707 - Ohio 17,298 - Michigan 16,789 - Wisconsin 8,530 - Maryland 7,944 Total Midwest (6 states) 161,444 Source: Dunn & Bradstreet

21 Leading Midwest Biotech Companies (value >$100 M) CompanyStateFocusMkt.Cap (M) MGI PharmaMinnesotaCancer$1,886 KV PharmaMissouriDrug Delivery 880 Bone Care intern.WisconsinBone Disease 472 SurModicsMinnesotaDevice 416 Northfield LabsIllinoisBlood 286 Possis MedicalMinnesotaDevice 284 Third Wave Tech.WisconsinGenomics 278 StereotaxisMissouriDevice 260 Endocardial Sol.MinnesotaDevice 256 NeoPharmIllinoisCancer 199 BioSanteIllinoisDrug Delivery 166 NeogenMichiganNutraceutical 157 Orphan MedicalMinnesotaOrphan Drugs 119 Synovis Life Tech.MinnesotaDevice 110 ImmTech Int.IllinoisInfectious Diseases 105

22 National Institute of Health (NIH) Support to Midwest Institutions National Institute of Health (NIH) Support to Midwest Institutions Funding $ Millions - Illinois473 - Ohio444 - Michigan390 - Missouri367 - Wisconsin253 - Minnesota282 - Indiana141 - Iowa136 TOTAL 8 States $ 2,486 Source: IMPAC, 2000

23 Biotech in Illinois Champaign-Urbana Chicago Carbondale East St. Louis

24 Biotech Profile in Illinois Companies - Chicagoland - Downstate (Champaign/Carbondale/Springfield) Jobs Market Valuation $1+ billion $3+ billion

25 2001 Merger of Two Associations IBIO Chicago Biotech Network & Illinois Biotechnology Industry Organization BIO State Representative 25+ members State Agencies & Big Pharma Advocacy Program Ag/Food Biotech “Grass roots” Networking 200 members Seminars & Conferences Information “clearinghouse” Human Health Biotech CBN

26 2001 Merger of Two Associations IBIO Chicago Biotech Network & Illinois Biotechnology Industry Organization CBN SYNERGY 225+ Members BIO State Chapter State & Local Representation Advocacy Program Human/Ag/Food Biotech

27 IBIO Services that facilitate growth: “Breakfast series” at Universities “Biotech bootcamp” and competence seminars Annual Illinois (Midwest)Investor forum: IBioMarketplace Job Fair Legislative presence in Springfield and Washington Midwest Biotech initiatives: Indiana, Ohio, Michigan, Wisconsin, Missouri, Iowa, Minnesota, and Illinois BIO- 2006: CHICAGO

28 IBIO An organization focused on helping Illinois’ biotech industry grow Connecting building blocks already in place Office/lab facilities: Chicago Tech Park Labor: Graduates of world class educational institutions and local skilled workforce Capital: “Angel” investors, venture capital firms and state/local grants

29 Chicago Technology Park Biotech incubator located in Illinois Medical District (3 miles west of downtown) 650,000 square feet of lab and office space on 56 acre campus 30 emerging companies $20 million in SBIR and state challenge grants $35 million in CTP revenues

30 Biotech in Midwest: Issues Lack of “anchor” biotech company in region Most local companies at “discovery” stage Lack of biotech/pharma “serial entrepreneurs” in area Lack of “cluster” effect due to distance between states mini – “clusters” not big enough How to progress our companies up the “food chain” Other states’ incentives: Michigan, Wisconsin, New Jersey Difficult financial environment (State & City Budgets) Consolidation of big pharma & local impact.

31 IBIO Goals: Increase biotech “critical mass” in Illinois: – number of companies – progression up “food chain” Complete successful ($$/attendance/satisfaction) BIO 2006 meeting Establish Illinois as Midwest hub

32 The Biotech Job Market Direct Biotech Jobs Business Development (marketing & sales) Finance Scientists (chemistry, biology, drug delivery) Experienced CEO’s Regulatory (FDA) Indirect Biotech Jobs Venture capital (seed and early stage) Investment banking Executive search Architecture/engineering/real estate (wet labs construction) Audit firms Legal firms Information technology (scientific and drug development software)

33 Leading Midwest Life Science Companies (valuation >$1 B) CompanyStateAreaMtk. Cap (B) P&GOhioCons./Pharma$138 Eli LillyIndianaPharma 68 Abbott LabsIllinoisPharma/Diagn. 66 MedtronicMinnes.Medical Device 63 3M Minnes. Industry/Pharma 63 Dow ChemicalMich.Agroscience 42 WalgreensIllinoisDrug stores 37 GuidantIndianaMedical device 21 BaxterIllinoisDevice/Pharma 20 ZimmerIndianaMedical Device 19

34 Leading Midwest Life Science Companies (valuation >$1 B) CompanyStateAreaMtk. Cap (B) StrykerMich.Medical Device$19 Cardinal HealthOhioCRO/CMO 19 St. Jude MedicalMinn.Medical Device 13 BiometIndianaMedical Device 12 ADMIllinoisFood process. 11 MonsantoMissour.Agroscience 10 HospiraIllinoisMedical Device 5 Sigma-AldrichMissour. CMO 4 Dade-BehringIllinoisDiagnostics 2 StericycleIllinoisHospital waste 2

35 WHY THE MIDWEST LIFE SCIENCE IS DIFFERENT FROM THE EAST & WEST COASTS ? AGRICULTURE: “Breadbasket of the U.S.” MEDICAL DEVICE CAPITOL: Minnesota Medtronic ORTHOPEDIC/SURGICAL DEVICE CAPITOL : Indiana: Zimmer, Biomet, Guidant Michigan: Stryker DIAGNOSTICS CAPITAL: Illinois: Abbott, Dade-Behring Indiana: Roche NANOTECHNOLOGY CAPITOL: Illinois/Michigan

36 BIO 2006 Chicago is coming! (Expected Attendance: 25-30k persons) Catalyst for Growth: Get involved!


Download ppt "Biotechnology in the Midwest: A Perspective from a Blues Aficionado Michael S. Rosen, MBA, ePrairie Biotech Columnist."

Similar presentations


Ads by Google