Genetic Engineering & Biotechnology News

NOV1 2018

Genetic Engineering & Biotechnology News (GEN) is the world's most widely read biotech publication. It provides the R&D community with critical information on the tools, technologies, and trends that drive the biotech industry.

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6 | NOVEMBER 1, 2018 | Genetic Engineering & Biotechnology News | GEN etic Engineering & Biotechnology News Scoop the Top 10 U.S. Biopharma Clusters The Rich Get Richer in GEN's Annual Ranking of the Nation's Top Regions You can read the full article online: What makes a top-tier biopharma cluster? The standard answers involve a critical mass of resources including the brightest scientific and business minds capable of attracting public and private funding; powerhouse universities and healthcare systems, with endowments reaching into the billions; research institutes, often named for billionaire benefactors; and drug developers and tools and technology provid- ers that can translate investment into net income. Top biopharma clusters come down to dollars and cents, and more of those resources are increasingly concentrated in fewer places: "These zones repre- sent a growing erosion of geographical diversity in America's higher education system. These areas are raking in thousands of awards, worth billions, and are reinforced with billions of venture capital funding and huge amounts of new lab space," Josh Peters, a Ph.D. student in biological engineering at Massachusetts In- stitute of Technology, observed in a July 16 commentary published by the Genetic Literacy Project. GEN ranks regions based on five criteria: NIH funding—Taken from the publicly available NIH RePORT database, for the current federal fiscal year, from its start on October 1, 2017, through September 10, 2018. Venture capital (VC) funding—Taken from figures for all of 2017 and Q1 and Q2 2018, furnished by the pub- licly available PwC/CB Insights MoneyTree™ Report. Patents—Based on the number of patents containing the word "biotechnology" awarded since 1976 in namesake cities and suburbs where key companies are located. Lab space—Based on total-size-of-market figures, in millions of square feet, furnished by the commercial real estate brokerage JLL in its annual U.S. Life Sciences Outlook report for 2018—which mentioned GEN's 2017 list of Top 10 U.S. Biopharma Clusters. Jobs—Based on JLL's report. While job numbers are included in the rankings, less weight had to be given to job totals in regions where GEN has found widespread discrepancies in job figures. However, workforce size was factored in when deciding the ultimate position of a region. n 1 Boston/Cambridge ranks number-one in NIH funding (4735 awards totaling $2.457 billion), VC funding ($6.162 billion in 156 deals), and lab space (26.8 million square feet). The region is also second in patents (7565) but third in jobs with 90,566 (5% above a year ago). The recent $623 million Massachusetts Life Sciences Initiative is smaller than the $1 billion, decade-long measure enacted in 2007. Boston/Cambridge 2 Already this year, the region had 15 companies go public. The region is second in VC ($6.058 billion in 156 deals) and lab space (26 million square feet). The Bay Area leads the nation in patents (11,163), but it is fourth in NIH funding (2951 awards totaling $1.416 billion) and jobs with 74,046—but figures vary widely, from 72,663 to 127,500. San Francisco Bay Area 3 Nearly 61% of the region's jobs are in New Jersey, The two- state tandem is tops in jobs (130,393), second in NIH fund- ing (4200 awards totaling $2.067 billion), and third in lab space (22.6 million square feet, with 16.1 million square feet of the cluster's space [71%] in New Jersey). The region is fourth in VC ($1.076 billion in 40 deals) and fifth in patents (3208). New York / New Jersey 4 The region is on the way to achieving its stated goal of a top-three cluster by 2023. The region is already third in NIH funding (3103 awards totaling $1.456 billion), third in patents (4943), and fourth in lab space (with 22.5 million square feet). VC has improved to fourth with either $944.07 million or $1.1 billion in 44 deals, but employment lags (ei- ther in ninth with 41,322 jobs or sixth with 63,287 jobs). BioHealth Capital Region Maryland / Virginia / Washington, DC 5 Total life sciences employment in San Diego grew by 52% between 2001 and 2016, outperforming both Boston/ Cambridge and the San Francisco Bay Area. San Diego ranks third in VC ($1.095 billion in 52 deals), fourth in patents (4911), and ninth in NIH funding (1554 awards totaling $823.3 million), and fifth in both lab space (18 million square feet) and jobs (66,567). San Diego 6 Talk about consistency: Greater Philadelphia ranks sixth in venture capital ($772.79 million in 22 deals), NIH funding (1928 awards totaling $886.7 million), lab space (12.8 million square feet), and jobs (56,452, according to JLL, above the 48,900 direct jobs cited by Ben Franklin Technology Partners). The region places seventh in patents (1798). Greater Philadelphia 7 LA/Orange County is seventh in NIH funding (1748 awards totaling nearly $853 million) and patents (1612), but 10th in lab space (7.9 million square feet) and VC ($221 million in 21 deals). Jobs are the region's greatest strength, ranking second with 122,012 according to JLL. LABioMed is constructing an 18,000-square-foot bioscience incubator on its campus, set to open in March 2019. Los Angeles / Orange County 8 The region shines brightly in NIH funding (fifth with 1831 awards totaling $1.027 billion) but less so in patents (10th with 1124) and jobs (tied for 10th with 36,102). It ranks seventh in both lab space (12.4 million square feet) and VC ($480.71 million in 18 deals). Days before Florence ravaged North Carolina, Merck & Co., Novartis, and Pfizer were among the biopharmas that halted East Coast operations. Raleigh-Durham includes Research Triangle Park 9 Seattle's academic and research institutions have long dominated the region's biopharma cluster, which may explain why the cluster's highest ranking is in patents (sixth with 2087). Seattle ranks eighth in NIH funding (1328 awards totaling $843 million), VC ($372.41 million in 21 deals), and lab space (10 million square feet), but it is tied for 10th in jobs (36,102, according to JLL). Seattle 10 The Windy City and vicinity ranks highest in jobs (seventh with 52,668, according to JLL). This in spite of Takeda's recent anouncement to relocate its Deerfield, IL, operations to the Boston/Cambridge area. The region places ninth in VC ($332.21 million in nine deals), patents (1246), and lab space (8.8 million square feet), but lags in NIH funding (10th with 1627 awards totaling about $688.2 million). Chicagoland Alex Philippidis

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