Employment in the biopharma industry grew almost 5 percent in 2014, the last full year for which we have data. This is the highest annual growth rate

Transcription

1 Thank you, Mr. Chairman, and members of the committee. I m Sarah MacDonald, Executive Vice President at MassBio, the life sciences trade association now representing over 700 member organizations. First, let me relay regrets from our CEO, Bob Coughlin, who had a prior travel commitment and could not join us today. As many of you know, there is no one more passionate about the promise of medical innovation than Bob, and he looks forward to participating at a future session. I d like to follow on Leslie s presentation with a snapshot of the industry here in Massachusetts. We are undoubtedly the world leader in life sciences, a mantle the Commonwealth took aim at just eight short years ago with the adoption of the Life Sciences Initiative. That initiative, a true partnership between government and industry, helped accelerate our trajectory of growth as an industry. It was a shot heard around the world that Massachusetts meant business when it came to medical innovation and finding cures. It worked. We top nearly every metric and have won nearly every accolade awarded over the last several years. A look at our success from MassBio s Industry Snapshot, an annual report benchmarking how we re doing: 1

2 Employment in the biopharma industry grew almost 5 percent in 2014, the last full year for which we have data. This is the highest annual growth rate for the industry since 2008, and since we re a significantly bigger industry now, the number of additional jobs is that much larger. 2

3 Massachusetts has more people employed in biotech research and development that in any other state, including California. 3

4 And our employment base is stretching beyond research. Biomanufacturing jobs grew 28.4 percent in the last 10 years, a time in which biomanufacturing jobs nationally fell. Biomanufacturing is the new manufacturing opportunity for Massachusetts. 4

5 So who are these employers? They are a mix of the companies who founded the industry here the Genzymes and Biogens as well as more recent homegrown successes like Ironwood and Merrimack. We are now also home to significant research centers for some of the world s largest companies Pfizer, Novartis and Amgen. 5

6 And hundreds of small to mid-sized growing companies spinning out of our academic medical centers and universities. 6

7 Together, that equals over 60,000 employees making good salaries and contributing 7.2 billion dollars in Massachusetts-based payroll. 7

8 While there is obviously a density of companies in Cambridge and Boston, the industry is increasingly statewide. You ve got GE Healthcare in Marlborough, AbbVie in Worcester, Millipore Sigma in Billerica, EMD Serono in Rockland. You have contract research and contract manufacturing organizations like Charles River Labs, Accuratus and PCI, setting up significant facilities in the suburbs to support this cluster. 8

9 Beyond jobs, Massachusetts biopharma companies continue to draw significant private investment. In 2015, Massachusetts companies received more than 2 billion dollars in venture capital the first time the industry has reached that mark. 9

10 We also continue to take advantage of the public markets, with 13 Massachusetts companies going to IPO in There are a handful of companies registered to go public already in 2016 and this activity continues to bring money and resources into the Massachusetts economy. 10

11 Finally, federal support for early stage research in Massachusetts is strong. Massachusetts hospitals and academic institutions receive twice as much per capita from the National Institutes of Health than any other state in the country. This is money awarded based on merit, based on strength of the research proposal, and our scientists capture more than 2.3 billion dollars a year. 11

12 So where is all that money going? To this time consuming and risky business known as medical innovation. It takes an average of 10 years and 2.6 billion dollars to bring a drug to market. Companies need resources to bring them from conducting basic research and finding a target, through the clinical trials process to ensure safety and efficacy, and then to the FDA for review and commercial launch. 12

13 While it may sound counterintuitive, as our understanding of science grows, so does the complexity of developing new medicines -- particularly as treatments are increasingly tailored to the unique needs of individual patients. Setbacks are an inherent part of this complex process and the odds of success are low -just 12 percent of drugs entering clinical trials ever making it to patients. Thousands won t even make it past the early discovery and pre-clinical testing stages. Through these setbacks, comes success. For example in the past 16 years, there were more than 100 unsuccessful attempts to develop medicines to treat Alzheimer s disease, 96 for melanoma and 167 for lung cancer. During this same period, 4 medicines were approved to treat Alzheimer s, 7 for melanoma and 10 for lung cancer. 13

14 In Massachusetts, we have almost 1,500 drug candidates in the pipeline, representing 11% of the pipeline in the U.S. and 5.5% of the global drug development pipeline. 14

15 These candidates are spread across therapeutic areas, with 37% being in oncology, 14% in CNS and 14% in anti-infectives. 15

16 And importantly, Massachusetts scientists are researching and developing products for patients with 370 different medical indications, working to find cures for conditions that range from the common-- cancer, diabetes, Alzheimer s disease to the rare cystic fibrosis, Duchenne muscular dystrophy and multiple sclerosis. 16

17 Over the past two years, Massachusetts companies have had 15 new drugs approved by the FDA. This is record pace. In fact, one in 6 drugs approved by the FDA in 2015 came from Massachusetts. 17

18 What s also apparent looking at these lists is that the leaps and bounds we have made in scientific discovery over the past several years are leading to more targeted, more effective therapies. The most cutting-edge science-- increasing use of precision medicine, biomarkers and diagnostics, gene therapies that actually eradicate the underlying genetic defect causing some diseases will benefit the overall healthcare system and in the context of lifelong healthcare expenditures, save money. 18

19 The bottom line? Companies in Massachusetts are changing the lives, sometimes saving the lives, of patients around the world. By our estimate, the 160 drugs that have been brought to market by Massachusetts companies over the years have the potential to impact 232 million people in the U.S. and 1.5 billion globally. 19

20 This is why we do what we do. And it is only possible because of commitments made across industries and by all stakeholders to create an environment that supports and rewards innovation. A commitment by investors to continue to back an overwhelmingly risky proposition. A commitment by industry to find new and better ways to advance scientific breakthroughs, to become more efficient and work more collaboratively to find cures. A commitment from government to support growth with targeted investments to help fill the gaps and build out our infrastructure. And a commitment from providers, payers and health plans to maintain access to new therapies and cures. We are excited to be a part of these conversations and over the next few months hope to dive deeper into the cost-value conversation. There are really amazing things happening in biotech in Massachusetts, and we look forward to working with the Committee and others to ensure it continues. 20

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