1. Compiled with support from
2015 Industry Snapshot

2. Employment & Physical Growth

3. MA Biopharma Industry Employment
The industry grew by 4.9% in the highest annual growth rate for the Massachusetts industry since 2008.
38 %
Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW); MassBio

4. 8-Year Employment Performance: Biotech Research & Development*
Massachusetts has more employment classified as Biotechnology Research and Development than any other state.*
Many states have declining biotech R&D. A few smaller clusters are growing at faster rates, though still well below Massachusetts in total employment.
*NAICS : Research and development in biotechnology. This classification has only existed since 2007.
Top 5 in Job Growth
Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW)

5. 10-Year Employment Performance: Biopharma Manufacturing
Top 5 in Job Growth
Massachusetts grew in biopharma manufacturing employment by 28.4% since 2005.
In the same period, the U.S. lost 6,329 biopharma manufacturing jobs, a 2.2% decrease.
Top 5 in Percentage Growth
Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW)

6. Job Listings on MassBio.org
While MassBio.org is not a comprehensive listing of all jobs available in the industry in Massachusetts, it does provide a statistically strong sampling in determining job listing trends.
Activity thus far in 2015 outpaces every year since the site has been live.
The MassBioEd Foundation will launch a job trends and forecasting report later this year.
Average Daily Number of Job Listings, *
*2015 listing average is through July.
Source: MassBio

7. Largest Industry Employers in MA, 2014
Genzyme, a Sanofi company, has long been the largest employer in the industry in Massachusetts.
New additions to the Top 30 include Merrimack and Momenta.
Sources: MassBio Membership Reports & Surveys; Boston Business Journal Book of Lists, 2015

8. Economic Impact, 2014 60,459 employees $120,628 average salary
$7,293,035,898 total MA-based payroll
Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW)

9. 2 million+ s.f. in lab space, UMass-Lowell and 11 other colleges.
Industry Geography
Top 10
communities
by number of biopharma
companies*
Northeast
Worcester/I-495
100+ biotech companies,
2 million+ s.f. in lab space, UMass-Lowell and 11 other colleges.
60+ biotech companies, WPI, UMass-Worcester, and 16 other colleges.
180+ biotech companies, the top 5 NIH-funded hospitals in the U.S.,
and 48 colleges.
Boston-Cambridge
Cambridge (130)
Boston (41)
Worcester (31)
Waltham (26)
Lexington (25)
Woburn (24)
Watertown (16)
Bedford (14)
Marlborough (9)
Billerica (9)
West
128/Suburbs
Home of UMass-Amherst and 21 other colleges. Area known as The Knowledge Corridor.
South Coast
The immediate western suburbs include 70+ biotech companies,
15 colleges, 3 million s.f. of lab space.
Strong med device and biopharma manufacturing capacity, with numerous BioReady® land sites and 10 colleges.
*The Bureau of Labor Statistics indicates 738 biotechnology and pharmaceutical establishments in MA. For this list, MassBio used its own database and the MassBio/MHT 2014 Complete Guide, which include 431 company addresses.
Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW); MassBio/MHT Directory

10. Life Sciences Lab Inventory Growth
Close to 6 million additional square feet of commercial lab space has been added to the Massachusetts market since 2007.
Approximately 1.6 million s.f. additional lab space is under construction.
21,502,509 s.f.
Finishing in 2015
2015 New Construction
16,063,990 s.f.
Longwood Center, Boston
50-60 Binney Street, Cambridge
2007
Novartis, Cambridge
2015
GE Healthcare, Marlborough
Source: Colliers Meredith & Grew, Life Science Review,

11. Transportation

12. Primary Means of Commuting for Industry
In response to growing concern regarding transportation in Eastern Massachusetts, MassBio conducted its first annual commuting survey in March.
The survey includes 293 respondents who resided in 99 different communities.
(290 respondents)
54.8% of respondents used public transportation (rail, subway, bus) as a primary means of commuting versus 38.3% who drove exclusively to work
Source: MassBio 2015 Commuter Survey

13. Duration of Commute
56% of respondents have one-way commutes of less than one hour.
43.2% of respondents have commutes of 60 or more minutes.
For all workers in Massachusetts, the average commute is 39 minutes, according to the U.S. Census.
Source: MassBio 2015 Commuter Survey

14. Commuter Satisfaction
55% of respondents were satisfied with their commutes.
36% of respondents said they’d consider another employer for a better commute.
12% said they are ready to exit the region because of commuting issues.
103% reporting connotes limited multiple responses occurred. 273 respondents.
Source: MassBio 2015 Commuter Survey

15. Satisfaction by Primary Means of Commuting
Those using the bus or the T subway or trolley as primary means of commuting are substantially more satisfied with their commutes than those who drive or use the commuter rail. Over 70% of commuter rail users are dissatisfied with their commute.
Source: MassBio 2015 Commuter Survey

16. Venture Capital, Private & Public Investments

17. Venture Capital Investment
Investment in Massachusetts Biotech Companies,
Venture investment in MA rose to a record $2 billion in 2015, an all-time high, surpassing the 2014 record of $1.9 billion.
Source: PwC Money Tree Report

18. Top 15 VC Financings in MA, 2014
Source: EvaluatePharma®, August 2015

19. Top 10 VC Financings – 2015* * Financings through August 15, 2015.
Source: EvaluatePharma®, August 2015

20. 2014 Massachusetts IPOs
There were 17 IPOs for Massachusetts companies in 2014 – twice as many as the previous record year of 2013.
$100 M*
$32.7 M
$12 M
$65 M
$59.5 M
$61 M
$84 M
$52 M
$90 M
$90 M
$90 M
$98 M
$65 M
$57 M
$66 M
$96 M
$65 M
Note: Figures refer to “offer amounts” (investment secured) at time of IPO
Source: Nasdaq.com, BioSpace

21. 2015 Massachusetts IPOs $86 M $65 M $4 M $134 M $40 M $101.8 M $147 M
There were 12
IPOs for Massachusetts companies in 2015.
$86 M
$65 M
$4 M
$134 M
$40 M
$101.8 M
$147 M
$72 M
$55 M
$70 M
$60 M
$102 M
$70 M
Note: Figures refer to “offer amounts” (investment secured) at time of IPO
Source: Nasdaq.com, BioSpace

22. Geography of VC and IPOs: 2014-15
From August 2015, 66% of all Massachusetts biotechs receiving venture capital deals were located in Cambridge.
A majority (58%) of Massachusetts biotechs with Initial Public Offerings (IPOs) from August 2015 were located outside of Cambridge.
Location of VC-backed Companies
Location of Companies with IPOs
Source: EvaluatePharma®, August 2015

23. MA Seed-Stage Funding
In the 2014 Snapshot, MassBio highlighted a concern– the potential decline in seed-stage funding for Massachusetts biotechs.
In order to maintain the historical five year average of seed stage funding, MA companies needed to raise $199 million in 2014.
5-yr average, $152,382,480
15-yr average, $83,429,940
Source: PWC MoneyTree Historical Data

24. MA Seed-Stage Funding, Annual, 1999-2014
Actual seed financing was $20 million below that mark at $179 million.
While not an immediate red flag, prolonged declines in seed-stage funding jeopardize the Massachusetts supercluster, which is fueled by early-stage research & development.
5-yr average, $152,382,480
10-yr average, $83,429,940
2014
Source: PWC MoneyTree Historical Data

25. 2014 NIH Funding, by State Total & Per Capita
Massachusetts trailed only California in total NIH funding in 2014.
Massachusetts is a small state relative to most leading NIH-recipient states. But, with its high number of research institutions, on a per capita basis Massachusetts received twice as much NIH funding as the next closest state.
State
Funding
California
$3,410,496,236
Massachusetts
$2,364,750,629
New York
$2,069,300,604
Pennsylvania
$1,496,869,899
Maryland
$1,010,931,562
North Carolina
$991,876,570
Texas
$972,156,544
Washington
$876,933,041
Illinois
$710,197,186
Ohio
$633,220,134 US
$22,251,657,294
Per capita
Total Funding
Source: NIH, Research Portfolio Online Reporting, U.S. Census Bureau

26. Increased Funding for the NIH?
Federal lawmakers are considering increases from $1 - $2 billion for NIH for FY 2016.
However, the return of sequestration looms and, when adjusted for inflation, NIH funding for basic research has actually declined since 2003.
In constant dollars, adjusted to factor inflation, funding of NIH has decreased by 22% since 2003.
Source: Federation of American Societies for Experimental Biology, NIH Research Funding Trends, Garrison, Drehman, Campbell, 2015

27. Top NIH-Funded Independent Hospitals, 2014
Eight of the top 14 NIH-funded independent hospitals are in Massachusetts.
Please note:
NIH lists University-operated hospitals separately.
Source: NIH, Research Portfolio Online Reporting 27

28. Top Massachusetts NIH-Funded Non-Profits, 2014
Massachusetts non-profits are significant recipients of NIH funding.
Source: NIH, Research Portfolio Online Reporting

29. Drug Development Pipeline

30. Drug Development Pipeline, by Phase
The MA drug development pipeline includes 14 candidates pending FDA approval.
*Massachusetts-headquartered company pipelines only included.
1,491 MA drug candidates*
11% of US pipeline
5.5 % of Global pipeline
Source: EvaluatePharma®, August 2015

31. In the Pipeline Phase I Tazemetostat
Phase I clinical trials are aimed at proving that a drug candidate, which has proven to be safe when used on animals, can be given safely to people. These trials, which last several months to a year, usually involves a small number of healthy volunteers,
Epizyme is a Cambridge-based clinical stage biopharmaceutical company that is creating novel epigenetic therapies for cancer patients.
Tazemetostat
Tazemetostat (EPZ-6438) is intended as a treatment for patients with non-Hodgkin lymphomas, including germinal center and non-germinal center diffuse large B-cell lymphoma, primary mediastinal B-cell lymphoma (PMBCL) and follicular lymphoma.
Source: EvaluatePharma®, August 2015; Epizyme Website

32. In the Pipeline Phase III Eravacycline
Phase III clinical trials typically include 300-3,000 patients to provide a definitive assessment of how effective a drug is in comparison to existing treatments. Should a drug candidate work well in Phase III trials in treating a specific condition, its researchers can submit an application for FDA approval.
Tetraphase is a Watertown-based company focused on a synthetic chemistry technology platform that is aimed to address the global health crisis caused by antibiotic resistance.
Eravacycline
Eravacycline is in a Phase III clinical study for patients with complicated intra-abdominal infections and complicated urinary tract infections. It is a broad-spectrum intravenous and oral antibiotic for the treatment of multi-drug resistant (MDR) infections. It has been designated by the FDA as a Qualified Infectious Disease Product and eligible for priority review.
Source: EvaluatePharma®, August 2015; Tetraphase Website

33. Massachusetts Pipeline by Therapeutic Area
The 1,491 investigational drugs fall into 13 broad Therapeutic Areas.
Source: EvaluatePharma®, August 2015

34. MA Pipeline by Medical Indication (Top 25)
Massachusetts researchers are currently researching and developing products for patients with 370 different medical indications.
Source: EvaluatePharma®, August 2015

35. New Drug Approvals for MA Companies, 2014
Alprolix; Biogen; For the treatment of hemophilia B Entyvio; Millennium, The Takeda Oncology Company; For the treatment of adults with ulcerative colitis and Crohn's disease Sivextro; Cubist Pharmaceuticals; For the treatment of acute bacterial skin and skin structure infections Eloctate; Biogen; For the treatment of hemophillia A Plegridy; Biogen.; For the treatment of relapsing multiple sclerosis Cerdelga; Genzyme; For the treatment of certain adult patients with Gaucher disease type 1 Lemtrada; Genzyme; For the treatment of relapsing multiple sclerosis Zerbaxa; Cubist Pharmaceuticals; For the treatment of complicated intra-abdominal and urinary tract infections
*Approved drugs developed in Massachusetts and/or owned by companies based or with core US operations here.
Source: CenterWatch

36. New Drug Approvals for MA Companies, 2015
Orkambi; Vertex: For the treatment of cystic fibrosis Varubi: Tesaro; For the prevention of delayed nausea and vomiting associated with chemotherapy Aristada; Alkermes; For the treatment of schizophrenia Strensiq; Alexion; For the treatment of hypophosphatasia Onivyde; Merrimack; For the treatment of metastatic pancreatic cancer following gemcitabine-based therapy Ninlaro; Takeda: For the treatment of treat multiple myeloma Kanuma; Alexion; For the treatment of Lysosomal Acid Lipase (LAL) deficiency
*Approved drugs developed in Massachusetts and/or owned by companies based or with core US operations here.
Source: CenterWatch

37. Changing the Lives of Patients
More than 160 drugs have been commercialized by current Massachusetts-headquartered companies.
Massachusetts-headquartered companies have developed therapies that focus on patient populations of
232,434,000 patients ,507,722,000 patients
IN THE UNITED STATES AROUND THE WORLD
Sources: Developed from multiple sources including EvaluatePharma®, August 2015, emedicine medscape, NCBI, CDC, 2014

38. What’s in a Number?
Please note: Prior to 2012, MassBio used two different federal sources for employment data. In order to present more consistent employment data on a more timely basis, we no longer use County Business Patterns (CBP) data of the U.S. Census Bureau but rely primarily on the U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW) for this data.
As a result, historical employment data found in the Snapshots vary from that found in past reports. Though the historical annual employment figures vary by about 5% between the 2012 Snapshot and those of past years, the trend lines are very similar.
Why use the QCEW? QCEW data is comprised of employment and wages from unemployment insurance (UI) tax reports submitted by employers and is augmented by both BLS worksite reports and the Annual Re-filing Survey (ARS), which surveys one quarter of all private-sector establishments each year. The QCEW data is available on a more timely basis than the CBP and is directly related to the state’s ES-202 data, providing an additional, ongoing corroborative source.

39. What’s in a Number? What is considered “biopharma” employment?
Using the North American Industry Classification System (NAICS), with which QCEW data is reported, MassBio has determined that several NAICS classifications can be considered part of the biotechnology and pharmaceutical industry. However, only in certain cases can the industry claim 100% of any one NAICS code. MassBio determined that a percentage of some industry classifications could be used in estimating overall industry employment. In some cases, the percentage determination for certain industry codes was based on reports developed by other organizations. The following NAICS codes are utilized:
NAICS 3254: Pharmaceutical MFG, including biologics (100%)
NAICS : Research and Development in Biotechnology (100%)
NAICS : R&D in Physical, Engineering, and Life Sciences (except biotech) (22%)
NAICS : Analytical Laboratory Instrument MFG (30%)
NAICS 54138: Testing Laboratories (30%)
NAICS 622: Hospitals (4.5%)
NAICS 61131: Universities (1.9%)
NAICS : Medical testing laboratories (100%)
NAICS 4242, Drug merchant wholesalers, is no longer included in any current or annual employment figures. NAICS , Medical Laboratories, is included. Prior to 2013, we omitted Medical Laboratories, as these laboratories are health care services related, providing services to the medical delivery and patient care system, rather than the biopharma research development and manufacturing industry. We now acknowledge that Medical Laboratories are closely connected to the biopharma industry, requiring similar capacity and skills found in the biopharma industry. MassBio also tracks employment for “green biotechnology” classifications: , , and However, the QCEW does not reveal employment data for these categories beyond minimum ranges, so this data is not included in the employment figures presented in this Snapshot nor is it factored in comparisons with other states.

40. Questions?
As the premier source of information on biotechnology in Massachusetts, MassBio tracks industry statistics over time and issues an overview Industry Snapshot each year. For more information, contact: Jessica Roche Director of MassBio