Snapshot. Snapshot. August MassBio.us/Industry-Snapshot

Transcription

1 2018 Snapshot Industry Snapshot August 2018 MassBio.us/Industry-Snapshot

2 with support from

3 2018 Industry Snapshot Industry Employment...2 Massachusetts Biopharma Industry Employment and 1 Year Employment: Biotech Research & Development and 1 Year Employment: Biopharma Manufacturing...5 Largest Biopharma Industry Employers in Massachusetts, Biopharma Econmic Impact, Life Sciences Lab Inventory Growth...8 Industry Geography...9 Investment in the Industry...10 Top NIH-Funded States: by Total Funding and Per Capita, Top NIH-Funded Independent Hospitals, Top Massachusetts NIH-Funded Higher Education and Research Institues, Venture Capital Investment: Biopharma...14 Venture Capital Investment: Life Sciences...15 Top 15 VC Financing in Massachusetts, Top VC Financings in Massachusetts, 2018 (Jan-Jul)...17 Lead Investor Location for Massachusetts Companies, 2017 * (percent of dollar amount)...18 Geography of Biopharma Venture Capital Investment, Massachusetts IPOs, Massachusetts IPOs, 2018 (Jan-July)...21 Geography of Companies with IPOs, Drug Development Pipeline...23 Massachusetts Drug Development Pipeline & Trials by Phase...24 Massachusetts Pipeline by Therapeutic Area...25 Massachusetts Pipeline by Medical Indication...26 Changing the Lives of Patients...27 Appendix / What s in a Number?...28

4 Industry Employment

5 Massachusetts Biopharma Industry Employment Industry Employment 54,280 54,829 55,342 56,097 56,461 57,643 60,459 63,967 67,046 69,941 Industry jobs grew by 28% in the last 10 years and by 4.3% in one year. 28% Growth Over 10 Years Source: Privately owned companies, U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW); MassBio page 3

6 10 and 1 Year Employment Biotech Research & Development Industry Employment Massachusetts biotech R&D grew by 4% since State Year Change (08-17) 1 Year Change (16-17) California 21,249 34,212 39,203 84% 15% Massachusetts 26,439 34,366 35,768 35% 4% Maryland 10,223 8,688 15,351 50% 77% Pennsylvania 14,586 12,493 13,413-8% 7% New Jersey 9,334 14,065 12,976 39% -8% New York 2,817 6,291 8, % 41% North Carolina 7,331 8,511 8,578 17% 1% Washington 2,679 3,779 7, % 89% Texas 4,522 4,929 5,437 20% 10% Florida 1,185 2,883 2, % -1% Illinois 2,359 3,057 2,770 17% -9% Utah 1,408 2,475 2,238 59% -10% Indiana 1,336 1,945 2,180 63% 12% Missouri 4,697 3,939 1,928-59% -51% Arizona 759 1,550 1, % 2% Source: Privately owned companies, U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW) page 4

7 10 and 1 Year Employment Biopharma Manufacturing Industry Employment Employment at Massachusetts companies focused on biopharma manufacturing has grown by 5% since In the same period, the biomanufacturing jobs in the US as a whole declined by more than 24,000, an 8% decrease. State Year Change (08-17) 1 Year Change (16-17) California 43,035 50,456 52,125 21% 3% New Jersey 37,957 22,846 22,335-41% -2% North Carolina 18,787 20,656 20,770 11% 1% New York 20,971 19,504 20,435-3% 5% Illinois 18,534 20,102 19,778 7% -2% Pennsylvania 22,294 17,885 18,105-19% 1% Indiana 18,822 17,862 18,080-4% 1% Puerto Rico 22,556 14,921 14,376-36% -4% Texas 10,077 11,652 11,994 19% 3% Massachusetts 9,581 10,264 10,072 5% -2% Maryland 6,097 7,247 8,333 37% 15% Michigan 8,209 8,429 8,104-1% -4% Utah 4,672 6,590 6,882 47% 4% Florida 5,440 5,741 6,131 13% 7% Missouri 5,078 5,600 5,845 15% 4% Source: Privately owned companies, U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW) page 5

8 Largest Biopharma Industry Employers in Massachusetts, 2018 Industry Employment Sanofi continues to be the largest biopharma employer in Massachusetts. Rank Company Employees 14 Alkermes Alnylam Moderna Merck Sunovion Pharmaceuticals Foundation Medicine Amgen Ironwood GE Healthcare Life Sciences Tesaro AstraZeneca Bristol-Myers Squibb 400 Sources: MassBio Membership Reports & Surveys; Boston Business Journal Book of Lists, 2018 page 6

9 Biopharma Economic Impact, 2017 Industry Employment 69,941 Employees $149,731 Average Annual Wage $10.4 Billion Total MA-Based Wages Source: Privately sector, U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW) page 7

10 Life Sciences Lab Inventory Growth Industry Employment Over 12 million square feet of commercial lab space has been added to Massachusetts in the last 10 years, an increase of 71% million square feet million square feet Sources: Colliers Meredith & Grew, Life Science Review, ; CBRE page 8

11 Industry Geography Industry Employment The life sciences industry continues to grow across the Commonwealth. Worcester/I biotech companies, WPI, UMass-Worcester, and 16 other colleges. Northeast Northeast 50+ biotech companies, 2 million+ square feet of lab space, UMass-Lowell and 11 other colleges. West Worcester/ Boston Cambridge Core 128/Suburbs Boston-Cambridge More than 500 biotech companies, 5 of the top 6 hospitals in the U.S., and 48 colleges. West Home of UMass-Amherst and 21 other colleges. This area is known as The Knowledge Corridor. 128/Suburbs The immediate western suburbs include 75+ biotech companies, 15 colleges, 3 million square feet of lab space. Southcoast South Shore & Cape Southcoast Strong med device and biopharma manufacturing capacity, with numerous land sites in BioReady communities and 10 colleges. Source: MassBio Membership Reports page 9

12 Investment in the Industry

13 Top NIH-Funded States: by Total Funding & Per Capita, 2017 Investment in the Industry More than 10% of all NIH funding went to Massachusetts organizations in Total NIH Funding State Funding California $3,946,354,973 Massachusetts $2,716,744,336 New York $2,386,044,645 Pennsylvania $1,672,904,696 Maryland $1,611,922,948 North Carolina $1,245,779,004 Texas $1,160,644,529 Washington $998,183,675 Illinois $805,534,710 Ohio $754,319,250 Source: NIH, Research Portfolio Online Reporting, U.S. Census Bureau $396 $266 $161 Funding Per Capita $146 $135 $131 $121 $120 $100 $100 MA MD RI CT WA PA NC NY MN CA page 11

14 Top NIH-Funded Independent Hospitals, 2017 Investment in the Industry Five of the top six NIH-funded independent hospitals are in Massachusetts. Massachusetts receives 57% of all NIH funding to Independent Hospitals. Please note: NIH lists university-operated hospitals separately. Organization City State Awards Funding Massachusetts General Hospital Boston MA 812 $394,465,880 Brigham and Women's Hospital Boston MA 571 $390,450,002 Vanderbilt University Medical Center Nashville TN 463 $259,711,413 Boston Children's Hospital Boston MA 345 $157,591,678 Dana-Farber Cancer Institute Boston MA 219 $144,653,313 Beth Israel Deaconess Medical Center Boston MA 240 $130,821,684 Children's Hospital of Philadelphia Philadelphia PA 224 $126,040,263 Cincinnati Children's Hospital Medical Center Cincinnati OH 290 $121,343,846 St. Jude's Children's Research Hospital Memphis TN 105 $76,186,324 Cedars-Sinai Medical Center Los Angeles CA 123 $55,740,921 New York State Psychiatric Institute New York NY 104 $49,171,819 Seattle Children's Hospital Seattle WA 101 $43,676,764 National Jewish Health Denver CO 58 $33,057,950 Rhode Island Hospital Providence RI 81 $29,540,878 Boston Medical Center Boston MA 60 $28,258,629 Massachusetts Eye and Ear Infirmary Boston MA 55 $24,747,234 McLean Hospital Belmont MA 70 $24,048,862 Roswell Park Cancer Institute Corporation Buffalo NY 55 $22,820,055 Henry Ford Health System Detroit MI 38 $22,709,684 Children's Hospital of Los Angeles Los Angeles CA 43 $21,868,818 Tufts Medical Center Boston MA 38 $18,365,897 Source: NIH, Research Portfolio Online Reporting page 12

15 Top MA NIH-Funded Higher Education & Research Institutes, 2017 Investment in the Industry Massachusetts centers of Higher Education and Research Institutes received $1.25 billion in Organization Awards Funding Harvard Medical School 415 $213,715,633 University of Massachusetts Medical School 332 $154,428,281 Boston University Medical Campus 265 $134,198,969 Harvard School of Public Health 192 $127,640,164 Broad Institute, Inc. 88 $125,297,044 Massachusetts Institute of Technology 260 $110,825,963 Harvard University 141 $68,731,183 Tufts University Boston 137 $54,412,496 Boston University (Charles River Campus) 120 $38,129,718 Northeastern University 82 $33,142,938 University of Massachusetts Amherst 78 $30,564,774 Brandeis University 71 $27,736,226 Joslin Diabetes Center 36 $22,971,910 Whitehead Institute for Biomedical Research 38 $16,819,784 Boston College 34 $15,420,007 Source: NIH, Research Portfolio Online Reporting page 13

16 Venture Capital Investment: Biopharma Investment in the Industry Venture investment in Massachusetts biopharma companies was $3.1 billion in In the first two quarters of 2018, Massachusetts biopharma companies raised $2.7 billion. 37% of all biopharma VC dollars went to Massachusetts companies in $3,500,000,000 $3,000,000,000 $2,500,000,000 $2,000,000,000 $1,500,000,000 $1,000,000,000 $500,000,000 $3.1 billion $ Source: PwC Money Tree Report Biopharma includes biotechnology, drug discovery, drug development, and pharmaceuticals/drugs. page 14

17 Venture Capital Investment: Life Sciences Investment in the Industry Combined with biopharma, all life sciences companies in Massachusetts raised $3.6 billion in venture capital investment in $3,500,000,000 $3,000,000,000 $2,500,000,000 $2,000,000,000 $1,500,000,000 $1,000,000,000 $430 million $3.1 billion $500,000,000 $ n Biopharma n Other Life Sciences Source: PwC Money Tree Report Biopharma includes biotechnology, drug discovery, drug development, and pharmaceuticals/drugs. Other Life Sciences includes disease diagnostics, drug delivery, drug manufacturing, medical devices & equipment, medical equipment & supplies, medical info & pharmaceutical distribution & wholesale. page 15

18 Top 15 VC Financings in Massachusetts, 2017 Investment in the Industry Company Financing ($ million) Investment Round Cullinan Oncology 150 Series A Rubius Therapeutics 120 Series A Semma Therapeutics 114 Series B Neon Therapeutics 106 Series B Intarcia Therapeutics 104 Series I Homology Medicines 84 Series B Codiak Biosciences 77 Series C KSQ Therapeutics 76 Seed Capital Kaleido Biosciences 65 Series Undisclosed Relay Therapeutics 63 Series B LifeMine Therapeutics 55 Series A Replimune 55 Series B Tango Therapeutics 55 Series A Deciphera Pharmaceuticals 52 Series C Spero Therapeutics 52 Series C Translate Bio 51 Series C Source: EvaluatePharma, Aug 2018 Note: Excluding PIPE numbers. page 16

19 Top VC Financings in Massachusetts, 2018 (Jan-Jul) Investment in the Industry Company Financing ($ million) Investment Round Moderna Therapeutics 500 Series Undisclosed TCR2 Therapeutics 125 Series B Kaleido Biosciences 101 Series C Constellation Pharmaceuticals 100 Series Undisclosed Generation Bio 100 Series B Rubius Therapeutics 100 Series B Beam Therapeutics 87 Series A Compass Therapeutics 70 Series A Centrexion Therapeutics 67 Series D FogPharma 66 Series B Akero Therapeutics 65 Series A Nimbus Therapeutics 65 Series C Source: EvaluatePharma, August 2018 page 17

20 Top VC Financings in Massachusetts, 2018 (Jan-July) Investment in the Industry US-based investors outside of Massachusetts led 60% of the investment into Massachusetts-based biopharma companies in Series A Series B Series C Series D 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% n Massachusetts n Rest of the US n Outside of the US Sum of MA biotech companies receiving VC dollars in 2017; limited to lead investors (excluding undisclosed investors and/or amounts and existing shareholder rounds). In cases of co-led rounds, award amounts are equally divided. Source: EvaluatePharma, August 2018 page 18

21 Top 15 VC Financings in Massachusetts, 2017 Investment in the Industry Cambridge-based companies received 62% of all biotech venture investment in the state. Location of venture-backed companies ($ million) Cambridge $1,835 All others $326 Boston $320 Waltham $242 Lexington $129 Woburn $97 Source: EvaluatePharma, August 2018 page 19

22 Massachusetts IPOs 2017 Investment in the Industry There were 12 IPOs from Massachusetts biotech companies in % of all US-based biotech IPOs in 2017 were from Massachusetts companies. Note: Figures refer to offer amounts (investment secured) at time of IPO. Source: Nasdaq.com page 20

23 Massachusetts IPOs 2018 (Jan-July) Investment in the Industry There have been 15 IPOs from Massachusetts biotech companies from January through July of % of all US-based biotech IPOs from January to July of 2018 were from Massachusetts companies. Note: Figures refer to offer amounts (investment secured) at time of IPO. Source: Nasdaq.com page 21

24 Geography of Companies with IPOs, 2017 Investment in the Industry Location of Companies with IPOs In 2017, 50% of all Massachusetts biotechs that went public were located in Cambridge. Boston 1 Cambridge 6 Waltham 3 Newton 1 Burlington 1 Source: EvaluatePharma, August 2018 page 22

25 Drug Development Pipeline

26 Massachusetts Drug Development Pipeline & Trials by Phase Drug Development Pipeline The Massachusetts drug development pipeline includes 44 candidates pending FDA approval ,116 MA Drug Candidates * 16% of US Pipeline 6% of Global Pipeline Pre-Clincal Phase I Phase II Phase III Filed Only Massachusetts-headquartered company pipelines are included. Source: EvaluatePharma, August 2018 page 24

27 Massachusetts Pipeline by Therapeutic Area Drug Development Pipeline Oncology continues to be the most frequently researched therapeutic area in Massachusetts. Only Massachusetts- headquartered companies are included. All Others, 17% Skin, 2% Cardiovascular, 3% Blood, 3% Cancer, 35% Respiratory, 4% Musculoskeletal, 5% Sensory organs, 5% Immunology, 6% Neurology, 11% Infections, 9% Only Massachusetts-headquartered company pipelines are included. Source: EvaluatePharma, August 2018 Percent of total drug candidates page 25

28 Massachusetts Pipeline by Medical Indication (Top 25) Drug Development Pipeline Massachusetts researchers are currently researching and developing products for patients with over 400 different medical indications. Only Massachusetts-headquartered company pipelines are included. Source: EvaluatePharma, August 2018 Medical Indication Number of Investigational Drugs % of all Investigational Drugs General cancer indications % Solid tumour indications % Undisclosed % Other neurological indications % Other immune indications % General blood malignancies % Cystic fibrosis (CF) % General inflammatory disorders % Other metabolic indications % Breast cancer % Duchenne muscular dystrophy % Alzheimer's disease % General bacterial indications % Amyotrophic lateral sclerosis (ALS) % Non-small cell lung cancer (NSCLC) % Leukaemia, acute myeloid (AML) % Non-Hodgkin lymphoma (NHL) % Ovarian cancer % Melanoma % Gram negative infections % Other musculoskeletal disorders % Pancreatic cancer % Parkinson's disease % Diabetes, type II (maturity onset) % Glioblastoma multiforme % page 26

29 Changing the Lives of Patients Drug Development Pipeline Massachusetts-headquartered companies have developed therapies that treat patient populations of up to 264,450,000 patients IN THE UNITED STATES 1,989,571,000 patients AROUND THE WORLD page 27

30 Appendix What s in a Number? 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. 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 (except Nanobiotechnology) (100%) NAICS Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology) (27% in 2017 and beyond, 22% for 2016 and prior.) NAICS Research and Development in Nanotechnology (22%) NAICS : Analytical Laboratory Instrument MFG (30%) NAICS 54138: Testing Laboratories (9%) NAICS 622: Hospitals (4.5%) NAICS 61131: Universities (1.9%) NAICS : Medical Testing Laboratories (100%) As of 2017 data, NAICS , Research and Development in Biotechnology and NAICS , R&D in Physical, Engineering, and Life Sciences (except biotech) have been replaced by and respectively. NAICS was created from parts of the previous NAICS and NAICS and now stands alone in the 2017 data. 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. page 28

31 As the premier source of information on life sciences in Massachusetts, MassBio tracks industry statistics over time and issues an overview Industry Snapshot each year. For more information, contact Elizabeth Steele Vice President, Programs & Global Affairs

32 MassBio.org Technology Square, 8th Floor Cambridge, MA 02139