Bio inOhio Facts and Stats 6/2009

BioOhio Update

John F. Lewis Jr.

6-18-09

An Ohio Thomas Edison Center

© 2009 BioOhio

hallo

bonjour

shalom

konnichiwa

Nihao

Anyohaseo

päivää

Fáilte

Hola

© 2009 BioOhio

Ohio, more than you know…

• 7th largest state with 11.5 million people

• 4th in the nation for biotech Industry strength

• Within 1 day drive of 61% of USA, 50% Canada

• Highly educated workforce

> 150 colleges and universities

© 2009 BioOhio

Ohio More than you know…

• 7th largest state with 11.5 million people

• 4th in the nation for biotech Industry strength

• Within 1 day drive of 61% of USA, 50% Canada

• Highly educated workforce

> 150 colleges and universities

© 2009 BioOhio

The Original Biotechnologies

© 2009 BioOhio

What is Bioscience?

…a broad sector, including:

•Pharmaceuticals•Genomics •Diagnostics •Medical devices & equipment•Bioinformatics•Biomedical imaging•Biomaterials•Clinical Research Organizations•Environmental•Regenerative medicine•Research and development & Testing Labs•Agricultural bioproducts•Healthcare Informatics•Nutraceutical/Food

© 2009 BioOhio

AgriculturalFeedstock & Chemicals

Agricultural processing

Basic organic chemicals

Ethyl alcohol mfg.

Organic fiber mfg.

Fertilizers

Pesticides and other agricultural chemicals

Medicinal & botanicals

Pharma-ceutical preparations

Diagnostic substances

Biological products

Drugs & Pharmaceuticals

Medical Devices & Equipment

Laboratory apparatus & furniture

Surgical, medical, dental, ophthalmic & analytical instruments & equipment

Irradiation apparatus & electromedical equipment

Hospitals

Specialty hospitals

University medical

research hospitals

Clinical research institutions

Research, Testing, &Medical Laboratories

Biological research

Commercial medical

research

Testing laboratories

Medical laboratories & diagnostic imaging centers

Product-Oriented Service -Oriented

Bioscience Subsectors

© 2009 BioOhio

Why Listen to me?• We want to give you > business, help create

regional jobs, give you all > visibility, > bio linkages with rest of the state, more wins– but we need your help!!!

• Licensed attorney in Ohio 1987• 18 years international and TBED experience• Lived in 3 countries, traveled to >50

– VC in Caribbean, Medical/Pharma/Opto Asia

• Started offices, JV’s in Korea & China, closed one in PRC

• Since 2001 been with BioOhio– Helped raised more than $1 billion

© 2009 BioOhio

Our History

• 1987 Edison BioTechnology Center (EBTC)

• 2001 Moved HQS to Columbus

• 2002 Omeris

• 2007 BioOhio

© 2009 BioOhio

Our History

• Founded in 1987 as the Edison BioTechnology Center, BioOhio (formerly Omeris) is a non-profit organization designed to build and accelerate bioscience industry, research, and education in Ohio

• Headquartered in Columbus, with affiliates around the state

© 2009 BioOhio

Be Proud…Be Strategic

“ Ohio is one of the best places in the world to optimize the growth of your bioscience company because we can imbed you in an asset base, 1141 companies and growing; We are a partner that allows you to maximize any or all phases of your business strategy”

© 2009 BioOhio

*Total Ohio bioscience establishments are 1141 (March 1, 2009)

© 2009 BioOhio

Large Ohio Bioscience Companies

• Procter & Gamble Pharmaceuticals www.pgpharma.com

• Ethicon Endo-Surgery (J&J)www.ethiconendo.com

• Cardinal Health www.cardinal.com

• Battelle Memorial Institute www.battelle.org

• STERIS www.steris.com

• Philips Medical Systems www.medical.philips.com

• Abbott Nutrition (Ross Laboratories) http://abbottnutrition.com/

• Chemical Abstracts www.cas.org

• Mettler-Toledowww.mt.com

• Invacarewww.invacare.com

…and lots of emerging and mid sized companies

http://www.pgpharma.com/

http://www.ethiconendo.com/

http://www.cardinal.com/

http://www.battelle.org/

http://www.steris.com/

http://www.medical.philips.com/

http://abbottnutrition.com/

http://www.cas.org/

© 2009 BioOhio

3 cities in the top 40 Biotech locations in USA

#4 in biotechnology industry strength 2008State City Rank

OH Cleveland-Akron 20

Columbus 22

Cincinnati 28

All three cities rank higher than the 100 city average in Research grant awards in Bio-

Sciences

$637 Million in NIH Awards in 2008!

© 2009 BioOhio

Direct Commercial Bioscience Economic Impact Summary

© 2009 BioOhio

Central Ohio Regional Impact

© 2009 BioOhio

Northeast Ohio Regional Impact

© 2009 BioOhio

Southwest Ohio Regional Impact

© 2009 BioOhio

West Central Ohio Regional Impact

© 2009 BioOhio

Southeast Ohio Regional Impact

© 2009 BioOhio

Northwest Ohio Regional Impact

© 2009 BioOhio

Total Bioscience Funding 2004-2007

© 2009 BioOhio

Top Employers

© 2009 BioOhio

NAICS

© 2009 BioOhio

Ohio is ranked 8th nationally in total patents issued and has more than every country in the world except for Japan, Germany, and the UK

2001-2008: Ohio's Bioscience Patents by Type

Drugs

Surgery

Prosthesis

ProteinsMolec BioImmunology

Food

Steril ization

Living Organims

Synthetic Materials

Organic Chem Other

8%

17%

25%

3%6%6%

27%

6%

3%

© 2009 BioOhio

Fantastic Hospitals

• 2008 US News and World Report found 14 top hospitals in Ohio– Cleveland Clinic 4th best hospital in the nation and Top Heart

Center in the country for 14 straight years– Rainbow Babies Children’s Hospital (Cleveland) 2nd in neonatal care– 4 pediatric hospitals ranked in the Top 15– 6 of the top 50 Endocrinology Centers, most in the nation– 6 top 50 Orthopedic centers– 3 top 50 adult cancer centers,

• Child Magazine ranked Nationwide Children’s Hospital (Columbus) as the #1 facility for pediatric emergency care in 2007

• Thomson Reuters National Top 100, which measures hospital reliability, ranked 10 Ohio hospitals, second most in the nation in 2008– Most ranked facilities in the nation over the last five years

© 2009 BioOhio

16% of all clinical trials in the US are conducted in Ohio

0

200

400

600

800

1000

1200

1400

1600

1800

2000

IN MI NC MA OH PA

Total Active Clinical Trials In the U.S. was 10604 as of June 2009One clinical trial may be conducted in more than one state

Source:www.clinicaltrials.gov

TOTAL

phase IV

phase III

phase II

phase I

© 2009 BioOhio

Distribution of Active Clinical Trials

by Disease

As of June 2009

© 2009 BioOhio

Now 63 Ohio Health Care Venture Funds…More than 100 have invested

into Ohio bioscience companies

1. Adena Ventures

2. Akron ArchAngels Network

3. Alpha Capital Partners

4. Arboretum Ventures

5. Athenian Ventures

6. Battelle Ventures

7. Blue Chip Venture Company

8. Blue Point Capital

9. Bridge Investment Fund

10.Case Technology Ventures

11.Charter Life Sciences

12.Chrysalis Ventures

13.CID Equity Partners

14.Cincinnati Children's Tomorrow Fund

15.CincyTech Ventures

16.Cleveland Clinic Innovations

17.Core Network

18.Draper Triangle Ventures

19.Early Stage Partners

20.Edgewater Capital

21.Entrepreneurs “E” Fund

22.Everett Partners

23.Fletecher Spaght

24.Fort Washington Capital

25. Foundation Medical Partners

26. Frantz Medical Ventures

27. Glengary Ventures

28. GLIDE Fund

29. iNetwork BioOpportunity

30. Innovation Fund of LCCC

31. Isabella Capital

32. JumpStart

33. Kadima Partners

34. Miami Valley Ventures

35. Morgenthaler Ventures

36. Mutual Capital

37. NCIC Capital

38. NCT Ventures

39. North Coast Angels

40. Oakwood Medical

41. Ohio Tech Angels I, II & III

42. Portal Capital

43. Primus Capital

44. Queen City Angels

45. Radius Ventures

46. Redwood Holdings

47. Reservoir Ventures

48. River Cities Capital Funds

49. Riverside Capital

50. Rivervest Capital

51. Soin International

52. RMS Investments

53. Rocket Ventures

54. Southern Ohio Creates Capital

55. Summit Health Ventures

56. Sycamore Partners

57. Talisman Capital

58. TechColumbus TechGenesis

59. TechColumbus RCF

60. Teton Capital

61. Triathlon Medical Ventures

© 2009 BioOhio

Business Climate Improved

• Jobs and Progress Plan

• 10-year, $5 billion investment in Ohio’s highways

• Tax Reform 21 percent income tax reduction Eliminating property taxes on investments in

machinery and equipment No business tax on products exported out of Ohio First $1 million of gross receipts tax-free

• Lawsuit Reform

• Third Frontier $1.6 billion

• Ohio’s Bipartisan Jobs Stimulus Plan $1.57 billion ($100 million, $50 million, $250 million)

© 2009 BioOhio

Tax Reform

© 2009 BioOhio

• Cardiovascular

• BioPharma

• BioPolymers

• Biomedical Imaging

• AgBio

© 2009 BioOhio

Ohio Ranks 4th in the Nation in Biotech Strength in the latest

report

© 2009 BioOhio

Ohio – National Top 10

AdvaMed

© 2009 BioOhio

Ohio claims its 3rd Governor's Cup in a row, 06-08, for the most new or expanded capital projects, thanks to the Strickland Administration's focus on taking steps necessary to be competitive, even in a challenging

economic environment

© 2009 BioOhio

BioOhio’s Balanced Strategyindustry growth, resource optimization, community

building

Company & Capital

Formation

Company Attraction & Expansion

Member / Trade

Association Industry Function

Bioscience Workforce & Education

© 2009 BioOhio

BioOhio Strategic Elements

1. Industry Function:• Membership• Fact Sourcing• Networking • Branding• Advocacy

2. Asset-based Company Attraction & Expansion

3. Workforce & Education

4. Company & Capital Formation

© 2009 BioOhio

BioOhio Statewide Board• John A Bantle, II, PhD, Vice President - Research, Wright State University• Timothy G. Biro, CEO - MORK Process; Partner, Ohio Innovation Fund & Reservoir Ventures• Greg Blackmore, Sr. Vice President and Group President, Life Sciences - STERIS• Rathindra Bose, PhD, Vice President for Research & Creative Activity - Ohio University• Mark A. Collar, Chairman - Third Frontier Advisory Board• Mark J. Coticchia, VP Research and Technology Management - Case Western Reserve• Sandra J. Degen, PhD, Vice President for Research - University of Cincinnati• Anthony J. Dennis, PhD, President & CEO - BioOhio• Paul DiCorletto, Chairman - Lerner Research Institute (Cleveland Clinic)• Kevin Driscoll, PhD, Exec Director, Global Health Care Connect & Develop-Procter & Gamble• John Fisher, Executive Vice President - Ohio Farm Bureau Federation• Mike Hooven, President & CEO - Enable Medical Technologies• Peter G. Kleinhenz, General Partner - CID Equity Partners• Barbara Kunz, President - Health & Life Science Global Division Battelle• Thomas J. Murphy, President & COO - Ben Venue Laboratories• John M. Rice, PhD, Managing Partner - Triathlon Medical Ventures• David R. Scholl, PhD, President & CEO - Diagnostic Hybrids• James A. Scozzie, PhD, Senior Vice President - BioEnterprise• Arnold W. Strauss, MD, Director - Cincinnati Children’s Research Foundation• Caroline Whitacre, PhD, Senior Vice President for Research - The Ohio State University

© 2009 BioOhio

By-The Numbers, then & nowYear 1991 2001 2008/2009

Number of bio entities in Ohio

170 352 1141 (3.2X) 2009

University R&D expenditures

$285 million

$481 million

$1.1 billion (2.3X)

New Company starts ≈12 12 69 per year (5.8X) 2004-08

Private capital raised for new starts

Unknown $14 million

$189 million (13.5X)

$473 million

IPO/Acquisitions 2008

Bioscience Capital sources (in State)

4 8 63 (7.9) 2009

BioOhio (EBTC) membership

52 86 280 (3.3X) 2009

© 2009 BioOhio

Your Member OrganizationYour Trade Association / Your Bioscience

Chamber• Marketing Ohio’s Collaboration & Partnership

Opportunities• New Website launched July 2008• Trade Missions (Japan, Taiwan, China, USA, Germany, Israel)• Various Publications• LinkedIn• News Ticker, Webinars, Newsletters and much more

• Networking• BioOhio• BIO Mid America Venture Forum• PhRMA events• AdvaMed events• AgBio events• National BIO events• Regional Affiliate events

• Advocacy (National & Ohio)• SBIR Legislation, Patent Reform• Drug Pricing and importation• Stem cell research / Human Cloning• Bioscience workforce training• Third Frontier funding strategies

© 2009 BioOhio

Ohio Bioscience Growth Report & Magazines

Company & Capital Formation

www.biostart.org

www.bioenterprise.com

www.techcolumbus.org

www.ohiou.edu/biotech

www.rgp.org

www.ci.akron.oh.us

© 2009 BioOhio

What do our Incubators / Accelerators do?

• Collaborations with universities, established companies, and start-up companies; national and international collaborations

• Business development to help established and startup companies make contacts and pursue success

• Management support for startup companies, “portable executives,” “entrepreneurs in residence” until the company operates on its own

• Professional Services referrals to attorneys, accountants, regulatory expertise and others who understand the technology, the startup company environment, international business

• Access to Capital helping startups find investors, and helping investors find companies to invest in

© 2009 BioOhio

Attraction & Expansion• Regional Partners – more than 50

– Monthly phone calls and e-mail updates

• Program Operations– Finished an attraction brochure– Workforce/Talent recruitment remains #1 issue

• Global Cardiovascular Innovation Center (GCIC)– Relationship and Partnership growing and functioning well– Supply Chain directory

• Expansions– Site Selection Magazine “Governor’s Cup” 3 years in a row– Area Development Magazine Silver Shovel Award– 112 Bioscience expansions or new facilities 06-08

• OEDA/TeamOhio relationship • Israel, Taiwan, Finland, Ireland, Hungary, China, Germany

© 2009 BioOhio

Workforce & Education

• Community College Partnerships. Coordinating the efforts of Ohio’s 2 year college’s to provide comprehensive programs in support of bioscience industry expansion, e.g. introduction of manufacturing content

• Proposals Submitted. Submitted NSF & DOL proposals seeking additional funding in support of biomanufacturing industry expansion

• Blue Ribbon Panel. Invited participant on national 50 member NSF panel to set standards for education bio-technicians. Report published August 2008; www.aacc.nche.edu/ateprogram

• Career Fairs. Held 3rd annual Ohio Bioscience Career Fair in November 2008, and rolling out regional events during 2009

• Job awareness & Community Outreach. Entered into partnership with the Society for Manufacturing Engineers Educational Foundation to address improving bio-manufacturing image

© 2009 BioOhio

Workforce & EducationIn Progress & Planned

• Proposals. – Will submit BioOhio led NSF-ATE proposal, and partner in Lakeland CC led NSF-ATE proposal focused on

outreach and awareness in northeast Ohio. – Engage consulting group to secure additional federal funds– Continue to push proposal to develop a comprehensive workforce strategy for Bio in Ohio

• Job Awareness & Community Outreach. Work with SME Educational Foundation and others (Indianapolis WIB, MichBio) to implement a comprehensive plan for Ohio/Indiana/Michigan then expand to midwest, and possibly nationally

• Career Fairs. Hold annual Ohio Bioscience Career Fair, and support/initiate others. Lakeland CC will hold NE Ohio bioscience career fair November 5, sponsored by BioOhio.

• Community College Partnerships. Continue to enhance and roll out bioscience workforce support program in partnership with OBOR

• Strategy. Continue working with State (OBOR, ODOD, ODE) to develop comprehensive biosciences “Industry Sector” workforce strategy

© 2009 BioOhio

Bioscience Jobs

Agricultural Feedstock & ChemicalsDrugs & PharmaceuticalsMedical Devices & EquipmentResearch, Testing, & Medical Laboratories

33%

25%

8%

33%

Distribution of Bioscience Employment by Subsector

Source: Battelle calculations based on Bureau of Labor Statistics, QCEW program data from the Minnesota Implan Group. Data include Puerto Rico.

• Research & Testing 20,565 companies

• Medical Devices 15,190 companies

• Drugs & Pharmaceuticals 2,589 companies

• Ag Feedstock & Chemicals 2,111 companies

© 2009 BioOhio

Bioscience Wage Trends

• The biosciences offer high-paying, quality jobs across a range of occupations

• Bioscience workers earn $26,772 more than the average U.S. private sector wage, with all four subsectors above the national average

• Since 2001, real (inflation-adjusted) earnings are up 6.4% for bioscience workers, compared to just a 1.4% increase for private sector

Drugs & Pharmaceuticals 79,303$ Finance & Insurance 69,889$ Total Biosciences 65,775$ Research, Testing, & Medical Laboratories 65,414$ Agricultural Feedstock & Chemicals 63,383$ Professional, Scientific, & Technical Services 62,411$ Information 60,530$ Medical Devices & Equipment 56,449$ Manufacturing 47,705$ Construction 40,297$ U.S. Total Private Sector 39,003$ Transportation & Warehousing 38,758$ Real Estate & Rental & Leasing 37,167$ Health Care & Social Assistance 36,606$ Retail Trade 24,337$ Source: Battelle calculations based on Bureau of Labor Statistics, QCEW

program data from the Minnesota Implan Group.

Data include Puerto Rico.

U.S. Average Annual Wages per Employee, 2004

© 2009 BioOhio

AgBio• Ohio is home to the world’s largest soup factory (Campbell’s)

• Ohio is home to the world’s largest ketchup factory (Heinz)

• Ohio is home to the world’s largest pizza plant (Pillsbury)

• Ohio is home to the world’s largest yogurt plant (Dannon)

• Ohio is home to the country’s largest fructose plant (Cargill)

• More Swiss cheese is produced in Ohio than in Wisconsin

• Center for Innovative Food Technology • 935 food processing facilities • Ohio Agricultural Research & Development Center

© 2009 BioOhio

Ohio’s Agricultural

Output

$79.6 Billion

Ohio’s Chemicals,

Plastics, Rubber

Materials Output $49

Billion

Ohio BioProducts Innovation Center

© 2009 BioOhio

Ohio BioProducts Innovation Center

Bio-Derived Feedstocks

Monomers and Resins

Bio-Polymers andBio-Product System

Solutions

• Soybean Oils

• Next Gen Soybean OilsSoy Proteins

• Corn based carbohydrates/sugars

• Polyacids

• Polyols

• Monomers

• Oligomers and Resins

• Specialty Compounds

• Coatings, Binders, Toners• Adhesives and Sealants• Composites • Solvents, Plasticizers• Lubricants • Surfactants, Cleaners• Fertilizer Systems

© 2009 BioOhio

Bio-Informatics

• Genechips (shown)

• Genetic Databases

• Tissue Databases

• www.osc.edu

• www.daytaohio.com

© 2009 BioOhio

3-D Bioreactor - Mass Production of Embryonic

Stem • Problem: • Limited ES cell lines and

supplies for regenerative medicine and other biomedical applications

• Solution: in vitro expansion

• 2-D Cell culture: labor intensive (frequent sub culturing) and expensive (growth factors; surface coating)

• Need: Better and cheaper 3-D culturing method in bioreactor with controlled environment

© 2009 BioOhio

Genetically Modified Organisms

• Opportunity

– Improved pest and disease resistance

– Better economics

– Less use of chemicals Challenge

• Challenges– Fear of the unknown

– Misunderstanding

– Scientists not attending to social issues

© 2009 BioOhio

74

Sources of Capital

• Bootstrapping– Who will benefit from

your success? • FF&F

– Find enthusiastic supporters in your personal network

– Put your own money in (investors want to see this commitment)

• Angels– Looking to make money,

but also hope to get involved and add value

• Grants – Lots of free and cheap

money out there

• Venture / Private Equity– Care about making a

return on investment– Often do not have time or

ambition to get to involved

• SBA / Banks – Always take debt before

equity, but often difficult as they require security (receivables, assets…)

© 2009 BioOhio

Pitching

• 10 slides, 20 minutes, 30 Point font

• Differentiate for different audiences

• Investor

• Sales Prospect

• Partner Prospect

• B to B

• Problem• Solution• Business Model• Your Magic• Mktg/Sales• Competition• Mgmt Team• Financial Projections• Current Status – The

Ask

An Ohio Thomas Edison Center

Let me know how we can help you!

John F. Lewis Jr.Vice President

[email protected] x7

Bio inOhio Facts and Stats 6/2009

Health & Medicine

Transcript of Bio inOhio Facts and Stats 6/2009