Texas Biotechnology Industry Report

Transcription

1 Texas Biotechnology Industry Report Office of the Governor Economic Development & Tourism

2 Contents Overview Medical Devices... Pharmaceuticals Biomedical Research. Agricultural & Animal Biotech Environmental Tech & Biofuels Texas at the BIO International Convention The State of Texas and the Texas Healthcare and Bioscience Institute, an industry advocacy group, work to promote the advancement of the state s biotechnology industry by exhibiting at the annual Biotechnology Industry Organization (BIO) International Convention. A Texas delegation of government officials, community representatives, and industry leaders hosts a booth and meets with biotech business leaders from around the world.

3 Biotechnology in Texas The Biotechnology Industry As home to over 3,400 biotechnology manufacturing and R&D firms, Texas is one of the leading biotech states in the country. More than 88,500 workers are employed in biotech-related sectors in Texas, and dozens of global biotech companies, such as Novartis, Abbott, and Medtronic, have major operations in the state. A concentration of highly trained biotech workers, multiple top-tier research institutions, and a top-ranked business climate all strengthen the state s status as a biotechnology leader. B iotechnology is technology based on biology which harnesses cellular and molecular processes to develop products that help improve the health of humans and the planet. People have used the biological processes of microorganisms for more than 6,000 years to make and preserve food products. Modern biotech provides breakthrough tools to combat diseases, increase crop yields, and develop cleaner energy sources. Because of the breadth of biotechnology activities, the field actually encompasses many related industries, from medical, to chemical, to agricultural. Within the North American Industry Classification System (NAICS), the federal standard for classifying businesses, biotechnology spreads across the ten subsectors listed below. Number of biotech workers in Texas: 88,550 In 2010, approximately one out of every 15 U.S. biotechnology establishments was in Texas, according to the U.S. Bureau of Labor Statistics (BLS). Irvingbased Kimberly Clark, Dallas-based Celanese, and San Antonio-based Kinetic Concepts, all on the 2011 Fortune 1000 list, are among the largest biotechrelated companies headquartered in the state. The total economic impact of the biotechnology industry in Texas in 2009 was estimated at $75 billion, according to the Texas Healthcare & Bioscience Institute, an industry association. Additionally, for every biotechnology job created, another 2.3 jobs were created elsewhere in the Texas economy. Biotechnology Subsectors Research and Development in Biotechnology Research and Development in Physical, Engineering, and Life Sciences Pharmaceutical and Medicine Manufacturing Medical Equipment and Supplies Manufacturing Electromedical Apparatus Manufacturing Analytical Laboratory Instruments Manufacturing Medical and Diagnostic Labs Testing Laboratories Pesticides, Fertilizer & Other Agricultural Chemical Manufacturing Other Basic Organic Chemical Manufacturing 1

4 OVERVIEW Top Life Sciences Companies in Texas Selected firms with corporate management, research, or manufacturing facilities in the state Sources: D&B, US FDA, company websites 2

5 OVERVIEW State Government Initiatives Business Incentive Programs In 2003, the Texas Legislature passed legislation authorizing the $295 million Texas Enterprise Fund (TEF), a deal closing fund created to attract businesses and new jobs to Texas. The Legislature reauthorized the TEF most recently in As of April 2012, the TEF had awarded over $98.1 million to biotechnology-related projects. The table on page 4 details these projects and the 11,451 jobs they have committed to create. In 2005, Gov. Rick Perry and the Texas Legislature passed legislation authorizing the $200 million Texas Emerging Technology Fund (TETF) to promote and finance technological innovations across multiple industries, including biotechnology. The TETF was reauthorized most recently in Seven Regional Centers of Innovation and Commercialization (RCICs) were created to help administer the TETF program. To date, $ million from the TETF have been awarded for biotechnology-related projects, with $ million going to commercialize start-up companies and $ million awarded to universities or university-related consortiums. For biotechrelated TETF award details, see Appendix 1. $1.27 billion Amount invested by venture capital (VC) firms from in 152 Texas biotech and medical device companies. (PricewaterhouseCoopers) annually. The Legislature most recently reauthorized the program in Stem Cell Regulation In April 2012, the Texas Medical Board approved new guidelines for the use of experimental stem cell therapies. The guidelines stipulate that the stem cell procedures are done for research only, that they receive approval from a public or private institutional research board, and that patients sign consent forms. Texas joins other states such as California, New York, and Illinois in the enactment of rules governing stem cell research. Education & Research Investments In 2005, the Texas Legislature established the Texas Science, Technology, Engineering and Mathematics (T-STEM) Initiative. Modeled on national STEM programs, T-STEM focuses on educating and graduating more Texas students in STEM fields critical for maintaining a skilled, competitive state workforce. T-STEM is part of the Texas High School Project and aims to more closely align high school curriculums with admission requirements for competitive colleges. Under the initiative, 51 T-STEM Academies have been created, serving approximately 15,000 students 3

6 OVERVIEW Company Texas Enterprise Fund Biotechnology-Related Awards City Description Jobs Award (Millions) Baylor College of Medicine Houston Bovine gene-mapping project N/A $2.0 Becton, Dickinson & Co. Cardiovascular Systems San Antonio Global professional services for medical devices 296 Pearland Arterial disease medical devices manufacturing facility 100 Ferris Manufacturing Fort Worth Medical products manufacturing 100 $.45 G-Con, LLC Bryan Pharmaceutical manufacturing 408 $3.0 Grifols, Inc. Hanger Orthopedic Group San Marcos Plasma testing laboratory & fractionation plant 190 Austin Headquarters relocation of orthotic and prosthetic patient care services firm 236 Medtronic, Inc. San Antonio Diabetes division expansion 1,384 $6.0 Scott & White Memorial Hospital Texas Institute for Genomic Medicine (TIGM) & Lexicon Genetics The University of Texas Health Science Center at Houston, M.D. Anderson, & G.E. Healthcare Cancer Research Institute and other Temple 1,485 research initiatives College Station & Houston Houston Genome mapping and knockout mouse cell line library The Center for Advanced Diagnostic Imaging 5,000 2,252 $1.56 $0.6 $0.5 $1.5 $7.5 $50.0 $25.0 TOTAL 11,451 $98.11 Texas $3 Billion Cancer Initiative Texas leads the nation in its commitment to the war on cancer. In June 2007, Gov. Rick Perry signed a law creating the Cancer Prevention and Research Institute of Texas (CPRIT), which dedicated $3 billion in state bond money to cancer research over ten years. CPRIT also received an appropriation of $450 million from the Texas Legislature for fiscal years Since 2010, CPRIT has funded 387 awards worth over $670 million for cancer research, commercialization, and prevention. Together with matching funds obligated by grant recipients, more than $900 million has been invested in Texas' endeavor to change the face of cancer. CPRIT award recipients include Texas academic institutions, nonprofit organizations, and private companies. CPRIT has become one of the nation s largest cancer grant providers, second only to the National Institutes of Health (NIH). In March 2012, CPRIT awarded $20 million for a Houston-area pre-commercialization center to incubate promising oncology-focused technologies, as well as three Scholar in Cancer Research awards to attract top investigators in oncology research to Texas. 4

7 Employment OVERVIEW Texas Biotech Workforce Texas is home to over 3,400 firms involved in biotechnology-related manufacturing, scientific research, and laboratory analysis. These firms employ more than 88,500 workers at an average annual salary of nearly $74,000. The table on page 6 provides a snapshot of the Texas biotechnology industry as of third quarter (Q3) The state has seen overall increases in the number of biotechnology firms and average annual wages as well as a slight decrease in employment since a year prior, in Q In 2010, Texas ranked No. 2 among all U.S. states for the number of life and physical scientists employed, with 48,850, according to the National Science Foundation (NSF). Additionally, in 2008, Texas ranked No. 3 nationally for employed science, engineering, and health doctorate holders, with 39,900, according to the NSF. Texas Biotech-Related Employment 5-Year Trends Source: Texas Workforce Commission Private sector employment only. Data from third quarter of each year. 5

8 OVERVIEW In Q3 2011, 36% of Texas biotech-related workers were engaged in medical and testing labs (NAICS 6215 and 54138), 24% in scientific R&D (NAICS and ), 17% in devices and equipment manufacturing (NAICS , , and 3391), 12% in agricultural and other basic organic chemical manufacturing (NAICS and 3253), and 11% in pharmaceutical and medical manufacturing (NAICS 3254). From Q to Q3 2011, the most recent five years of available data, biotechnology employment in Texas increased by 1.3% (see graph on previous page). The medical and diagnostic clinics segment saw continuous employment increases each year during that period, while testing labs and electromedical apparatus manufacturing experienced the greatest overall employment increases, each rising more than 13% between 2007 and Despite the impacts of the national economic downturn, the biotech sectors as a whole saw an overall employment upturn in Texas in Texas Biotech Sectors by Total Workers Source: Texas Workforce Commission Biotechnology Employment in Texas Third Quarter 2011 Sector (Industry Code) Employees Firms Average Annual Wage Medical and Diagnostic Labs (6215) 18, $56,628 R&D in Physical, Engineering, and Life Sciences (541712) 16, $88,920 Testing Laboratories (54138) 13, $63,388 Medical Equipment and Supplies Manufacturing (3391) 11, $50,492 Pharmaceutical and Medicine Manufacturing (3254) 9, $84,032 Other Basic Organic Chemical Manufacturing (32519) 7, $115,128 R&D in Biotechnology (541711) 4, $88,452 Pesticides, Fertilizer, and Other Agricultural Chemical Mfg. (3253) 2, $76,700 Electromedical Apparatus Manufacturing (334510) 2, $78,208 Analytical Laboratory Instruments Manufacturing (334516) 1, $75,140 TOTALS 88,550 3,465 $73,934 Source: Texas Workforce Commission 6

9 Medical Devices shipments exceeded $4.3 billion, with manufacturers making total capital investments of over $100.3 million, according to the U.S. Census Bureau. Additionally, international exports of medical devices from Texas increased 10% in 2011 to $2.2 billion. Emerging Technology and Venture Capital T exas has a major medical device industry, and some of the biggest players in the business are here. More than one dozen Fortune 500 medical device giants have manufacturing or major corporate operations in the state, including Abbott Laboratories, Johnson & Johnson, Medtronic, GE, Stryker, Cardinal Health, St. Jude Medical, Becton Dickinson, Thermo Fisher Scientific, and Agilent Technologies. These companies and many others have created a large medical device workforce in the state. Approximately 800 firms employ more than 15,200 workers in this sector, and as a result, Texas is one of the top 10 states in the nation for number of medical device workers. In the highly advanced subsector of electromedical instrument manufacturing, employment in Texas increased nearly 11% from , despite the intervening recession. A wide range of medical products are developed and produced in Texas, from surgical sutures and bandages to molecular biology kits and medication delivery systems. While a broad spectrum of medical specializations are served by Texas device companies, the state has developed several unique clusters. Among these are ophthalmology, orthopedics, cardiology, diagnostics, and wound care. These clusters are explored on pages In 2010, the total value of Texas medical equipment Since 2005, the Texas Emerging Technology Fund (TETF) has invested over $70 million in medical device-related startups. Funded companies have developed a wide range of technologies, including implants, imaging equipment, and diagnostic tools. See Appendix 1 for a complete listing. Over the six-year period , venture capital (VC) firms invested approximately $568 million in 96 Texas medical device and equipment companies, according to consulting firm PricewaterhouseCoopers. Fifteen of those investment deals occurred in 2011 alone, with a total of almost $60 million invested in Texas medical device companies that year. Wound Care Supply Firm Relocates from Illinois to Texas In December 2011, wound care company Ferris Manufacturing announced plans to relocate its corporate headquarters (HQ) from a Chicago suburb to Fort Worth, Texas. The company received a $450,000 Texas Enterprise Fund award from the state to incentivize its new HQ, medical product manufacturing facility, and distribution center. The project is expected to generate $5.5 million in capital investment and 100 new jobs in Texas. Privately owned Ferris manufactures and distributes multiple lines of Polymem advanced wound care dressings. 7

10 MEDICAL DEVICES Workforce Concentrations The map below identifies the state s Workforce Development regions with above-average specializations in medical equipment manufacturing. The highlighted regions are not the only areas in Texas where workers in this sector can be found, but rather represent areas with the greatest concentrations relative to the size of the local labor force. This analysis compares the portion of each Texas region s workforce employed in the sector to the portion of the entire U.S. workforce employed in that sector. The comparison provides a ratio that measures how intensively a certain region is specialized in this industry, and ranks it as moderate, above average, or high. Medical Devices & Supplies Manufacturing North Central Region Medical Equipment Mfg. Dallas County Ophthalmic Goods Mfg. East Texas Surgical Instrument Mfg. Heart of Texas Medical Supplies Mfg. Concentration Moderate Above Average High Concho Valley Medical Supplies Mfg. Alamo Region Medical Supplies Mfg. Capital Region Surgical Appliance Mfg. Data: Texas Workforce Commission, Q Merit Medical Locates R&D and Manufacturing Facility in Pearland In October 2011, Utah-based Merit Medical Systems announced plans for an 18,000 sq. ft. research and manufacturing facility in Pearland, Texas, which will employ an estimated 220 workers. Merit selected Pearland after a multi-state site search and is the second medical manufacturing facility to locate in Pearland, following on the heels of Cardiovascular Systems in Merit Medical is a global firm that develops and manufactures proprietary disposable medical devices used primarily in cardiology, radiology and endoscopy. 8

11 MEDICAL DEVICES Texas Medical Device Clusters Orthopedics Key Products: Spinal, extremity, bone/tissue implants Key Companies: The Austin region is home to more than 15 spinal and extremity orthopedic firms, anchored by the spine division of Fortune 1000 device maker Zimmer. Other orthopedic leaders in the region include DJO Surgical, Hanger Orthopedic, and Integra LifeSciences. Additonally, multiple bone and tissue grafting firms, including Zimmer Orthobiologics and BME, are located in the Austin-San Antonio corridor. Further north, the Dallas/Fort Worth region is home to the U.S. HQ of Dutch orthopedic firm OrthoFix. Cardiology Key Products: Catheters, surgical instruments, prosthetic heart valves Key Companies: The Houston metro area is a hub of cardiology R&D and startups and is the location of established cardiovascular device firms like Merit Medical and Cardiovascular Systems, both located in the suburb of Pearland. In the Dallas/Fort Worth region, Allen-based Atrion Corp. and Plano-based Argon Medical Devices manufacture instruments for cardiovascular surgery. In Austin, prosthetic heartvalve manufacturer On-X Life Technologies is part of that metro area s growing cardiology sector. Diagnostics Key Products: Cell cultures, laboratory equipment, clinical chemicals Key Companies: Austin is home to a cluster of cutting edge diagnostics firms, including Luminex, Agilent Technologies, Asuragen, and Thermo Fisher Scientific, while the nearby San Antonio s diagnostics cluster is anchored by Becton Dickinson s corporate service center and Fujirebio Diagnostics facility in Seguin. The Houston and Dallas/Fort Worth regions are also home to major diagnostic product makers, including Fortune 500 giants Thermo Fisher Scientific in Houston and Abbott Laboratories in Irving. Wound Care Key Products: Electromedical wound equipment, mattress systems, skin dressings, bandages Key Companies: Dallas/Fort Worth s concentration of wound care firms is lead by Healthpoint Biotherapeutics, a maker of treatments for acute, chronic, and burn-related wounds. Medical supply firms in the region include wounddressing makers Brady Corp., Winfield Laboratories, and new arrival Ferris Manufacturing. San Antonio is also home to an established wound care cluster, which includes Fortune 1000 firm KCI, and wound and burn R&D organizations Rochal Industries and the National Trauma Institute (NTI). 9

12 MEDICAL DEVICES Major Companies Top 10 Medical Device & Equipment Companies with Texas Operations By Parent Company Global Revenues Company Name Primary Location Specialization Sales (Millions) Ethicon (Johnson & Johnson) San Angelo Surgical supplies $65,030 Alcon Research (Novartis) Houston Ophthalmic products $59,375 Abbott Laboratories Irving Diagnostics $38,850 Flextronics Plano Contract design services $28,679 Medtronic San Antonio Diabetes mgmt. $15,933 Thermo Fisher Scientific Austin Diagnostics $11,725 Stryker Flower Mound Operating room equipment $8,307 Becton Dickinson & Co. San Antonio Diagnostics, drug delivery $7,828 Agilent Technologies Cedar Creek (Austin) Diagnostics $6,615 St. Jude Medical Plano Neurology $5,611 Representative sample only. Sources: Dun & Bradstreet, company websites Texas Focuses on Eye Care Products Manufacturing Texas is home to a large cluster of ophthalmic goods manufacturers that produce eye care devices and medical supplies. The percentage of the Texas workforce employed in the ophthalmic goods sector is 20% higher than the national average, and these workers are particularly concentrated in the Dallas/ Fort Worth region. Leading firms in this cluster are highlighted below. Fort Worth & Houston Lens care products and surgical disposables Dallas Contact lenses and lens coatings Waco Lens care products Lewisville Eyeglass lenses Garland Lens processing supplies, such as tints and anti-reflective coats Allen Contact lens disinfection cases, and ophthalmic balloon catheters Rosenberg Optical tools, surgical supplies, and contact lens accessories Bedford Contact lenses 10

13 Pharmaceuticals in the nation for number of pharmaceutical manufacturing workers. In 2010, the total value of Texas pharmaceutical shipments exceeded $4.7 billion, with manufacturers making total capital investments of nearly $100 million, according to the U.S. Census Bureau. I n addition to the many global pharma companies that have set up operations in Texas, such as Sanofi, Colgate, Reckitt Benckiser, and Allergan, Texas has also fostered homegrown pharmaceutical successes like Fort Worth s ophthalmic leader Alcon and Healthpoint Biotherapeutics. These companies and many others have created a large pharmaceutical manufacturing workforce in the state. Approximately 125 firms employ more than 9,500 workers in this sector, and as a result, Texas is one of the top 10 states Texas is also a leading pharmaceutical research state. In April 2012, Texas ranked second nationally for number of clinical trials, with more than14,000 studies underway, according to the National Institutes of Health (see map below). In addition, many of the world s leading clinical trial and contract research firms have operations in the state, including PPD, Covance, Quintiles, Chiltern, Premier Research, and INC Research all of which have locations in Austin. Since 2005, the Texas Emerging Technology Fund (TETF) has invested over $130 million in pharmaceutical-related startups. Funded companies have developed a wide range of technologies, including treatments for cancer, liver disease, and obesity. See Appendix 1 for a complete listing. Clinical Trials by State, April 2012 Texas ranks No. 2 Source: NIH ClinicalTrials.gov 11

14 PHARMACEUTICALS Workforce Concentrations The map below identifies the state s Workforce Development regions with above-average specializations in pharmaceutical manufacturing. The highlighted regions are not the only areas in Texas where workers in this sector can be found, but rather represent areas with the greatest concentrations relative to the size of the local labor force. This analysis compares the portion of each Texas region s workforce employed in the sector to the portion of the entire U.S. workforce employed in that sector. The comparison provides a ratio that measures how intensively a certain region is specialized in this industry, and ranks it as moderate, above average, or high. Pharmaceutical & Medicine Manufacturing Tarrant County Consumable Pharmaceuticals Mfg. Concentration Moderate Above Average High Alamo Region Consumable Pharmaceuticals Mfg. Capital Region Biological Product Mfg. Consumable Pharmaceuticals Mfg. Data: Texas Workforce Commission, Q Novartis Subsidiary Expands in Fort Worth In September 2011, Alcon Laboratories, a subsidiary of Switzerland-based Novartis, announced an expansion to its research operations in Fort Worth, Texas. Alcon expects to invest approximately $11 million and add 750 jobs. Alcon, which is based in Fort Worth, develops, manufacturers and markets surgical equipment and devices, pharmaceuticals, and vision care products. Novartis, a global pharmaceutical giant, purchased Alcon in 2010 to expand its ophthalmic product offerings. At the time of the purchase, Alcon was the world s largest eye care products company. 12

15 PHARMACEUTICALS Major Companies Top 10 Pharmaceutical Companies with Operations in Texas by Parent Company Global Revenues Company Name Primary Location Specialization Sales (Millions) Alcon (Novartis) Fort Worth Ophthalmics $59,380 Genzyme (Sanofi) San Antonio Oncology $47,090 Colgate Oral Pharmaceuticals Dallas Dental care $16,730 Reckitt Benckiser Fort Worth Respiratory care $15,030 Allergan Waco Ophthalmics $5,420 Lonza Houston Viral vectors $3,000 PPD Austin Pharmaceutical R&D $1,470 Galderma Laboratories Fort Worth Dermatology $1,400 Virbac Fort Worth Veterinary care $759 ALK-Abello Round Rock Allergies $424 Representative sample only. Sources: Dun & Bradstreet, company websites Allergan Expands in Waco In 2011, specialty pharmaceuticals giant Allergan announced the second major expansion to its Waco, Texas, manufacturing facility in nine years. The project is expected to bring $10 million in investment and 100 new jobs to the Waco region. Allergan first located in Waco in 1989 and began producing eye care products at its manufacturing plant. The facility s 2003 expansion consolidated the company s North American manufacturing operations, and the Waco plant s product line now includes skin care products for acne and psoriasis. California-based Allergan is a Fortune 500 company with a diverse array of pharmaceutical, biological, and medical device products. Roche Forms Cancer Partnership with the State of Texas In 2011, Swiss pharmaceuticals giant Roche announced a strategic partnership with the statefunded Cancer Prevention and Research Instiof Texas (CPRIT) to accelerate the development of promising oncology-related cancer research projects. Under the partnership, CPRIT and Roche will collaborate to identify ventures and technologies from academia and early stage projects in Texas that have the potential to strengthen Roche s R&D portfolio. Both will provide financial support to the new ventures. Switzerland-based Roche is one of the world s largest pharmaceuticals and diagnostics companies with 2011 sales of $47.4 billion. 13

16 PHARMACEUTICALS Life Technologies Austin Plant Named One of Ten Best in North America In 2011, IndustryWeek magazine named Life Technologies plant in Austin, Texas, one of the Top Ten Plants in North America, making it the first biotechnology facility to win the prestigious award. IndustryWeek noted the plant's 94% reduction in production documentation errors, 41% improvement in gross margins since 2007, $4.2 million in productivity improvements in 2010, and the successful 2009 transfer of the company s Molecular Biology product line from another site as reasons for the honor. Life Technologies is a Fortune 1000 biotechnology company based in California. The company s Austin facility, which employs approximately 200 workers, produces laboratory equipment and biological products under the Ambion, Applied Biosystems, and Invitrogen brand names. Texas-Made Pharmaceutical Products A wide variety of consumable pharmaceuticals and pharmaceutical products are manufactured in Texas. Below are a few examples of leading products, ranging from Alcon and Allergan s eye care products to Reckitt Benckiser s Mucinex, one of the world s leading over-the-counter expectorants. Opti-Free eye care Falcon glaucoma treatments Refresh eye care products Mucinex expectorant ProClude desensitizing paste Duraphat fluoride varnish Allclenz and Curasol wound care products MirVana mirna isolation kit 14

17 Biomedical Research blood, pathology, imaging, diagnostics, and device testing facilities. These laboratories employ more than 32,200 in Texas. Major laboratory firms in the state include Lab Corp s Esoterix subsidiary and Spanish biological product firm Grifols. R esearch and development (R&D) is the lifeblood of the biotechnology industry. In Texas, the R&D pipeline is supplied in part by the state s vast network of public universities and health-related institutions, which invest heavily in R&D and intellectual property generation. In fiscal year 2010 alone, Texas public institutions of higher education expended over $2.5 billion on medical and life sciences research, accounting for 61% of all higher education R&D expenditures in the state. Public investment in biotechnology research is complemented by the state s substantial cluster of private sector R&D activity. Texas is home to 850 private scientific R&D firms that employ more than 21,300 workers. Many of the largest private biotechnology R&D firms in the world have operations in Texas, including PPD, Covance, Quintiles, Chiltern, Premier Research, and INC Research. These firms have helped make the state a hub of clinical trials and other breakthrough research. In the Austin and San Antonio regions, the percentage of the workforce employed in private-sector scientific R&D is more than 30% above the national average, while in the Houston area, the percentage of the workforce employed by specialty hospitals is more than four times the national average. In addition to R&D facilities, Texas has more than 2,000 medical and testing laboratories, which include Texas is also a leader in cancer research. Major institutions in this field include MD Anderson Cancer Center in Houston, Scott & White Healthcare Cancer Research Institute in Temple, and Texas Oncology and Mary Crowley Cancer Research Centers, both based in Dallas. Additionally, the Cancer Prevention and Research Institute of Texas Texas Ranks in Top Tier for Biotech Doctorates Among U.S. states with institutions granting biotech-related doctorates, Texas achieved the following rankings for one-year degree totals (National Science Foundation 2009): #1 for Agricultural Sciences/Natural Resources doctorates (85 degrees conferred) #2 for Health Sciences doctorates (142 degrees conferred) #3 for Life Sciences doctorates (816 degrees conferred) #3 for Biological/Biomedical Sciences doctorates (589 degrees conferred) (CPRIT), a state-funded initiative, has been instrumental in expanding Texas cancer research, particularly in the areas of prevention and cures. See page 4 for more CPRIT details. 15

18 BIOMEDICAL RESEARCH OVERVIEW Texas Places Five Research Medical Schools in Top 100 In 2012, U.S. News & World Report ranked the nation s top 100 research medical schools. Texas achieved the following rankings: #20 UT Southwestern Medical Center at Dallas #21 Baylor College of Medicine #55 UT Health Science Center at Houston #67 UT Health Science Center at San Antonio #83 Texas A&M Health Science Center Texas Universities and Innovation In the school year, Texas conferred more than 6,700 degrees from heath-related institutions, a 9% increase over the previous year, according the Texas Higher Education Coordinating Board (THECB). In 2010, the University of Texas (UT) ranked No. 2 nationally for the number of patents earned by a university, up from No. 5 in 2009, according to The Patent Board, an independent patent research firm. UT saw a 22% increase over the previous year, jumping ahead of Stanford University and the California Institute of Technology (Cal Tech). From , 1,329 pharmaceutical-related utility patents were issued in Texas for Class 424: Drug, Bio-Affecting and Body Treating Compositions, according to the U.S. Patent and Trademark Office. This pharmaceutical patent class is one of Texas strongest areas of patent activity. Biomedical R&D at Texas Universities by 2010 Expenditures Institution University of Texas (UT) M.D. Anderson Cancer Total R&D (Millions) $547 Baylor College of Medicine-Houston $428.9 UT Southwestern Medical Center at Dallas $395.3 UT Health Science Center at Houston (UTHealth) $240.7 UT Health Science Center at San Antonio $185.2 UT Medical Branch (UTMB) at Galveston $156.8 Texas A&M Health Science Center (HSC) $78.1 Texas Tech University HSC $50.8 University of North Texas HSC $39.8 UT Health Center at Tyler $14.3 TOTAL $2,137 Source: Texas Higher Education Coordinating Board Source: Texas Higher Education Coordinating Board (THECB) 16

19 BIOMEDICAL RESEARCH Research Centers Texas is home to top-ranked biotechnology and medical research institutions, federally designated centers, innovative research collaborations, and some of the world s largest medical complexes. A number of the most ambitious Texas medical center expansions are a result of the U.S. Department of Defense s (DoD) 2005 military base realignments across the nation, which consolidated military medical facilities in San Antonio. A sampling of military, university, and private medical research facilities are profiled regionally on the following pages. The map below provides a broad snapshot of some of the state s major medical-related research centers and nine medical schools. Texas Medical Schools & Selected Medical Research Centers Due to space limitations, not all institutions are included. 17

20 BIOMEDICAL RESEARCH HOUSTON/GULF COAST The Texas Medical Center (TMC) in Houston is the world s largest medical center with over 71,500 students and 93,500 employees, housed on over 1,000 acres. The TMC annually conducts $1.2 billion in research and has a yearly economic impact of $14 billion on the region. Its 50 member institutions, comprised of Texas Medical Center Complex World s Largest Medical Center Keeps Growing in Houston hospitals, schools, and other specialty institutions, include Baylor College of Medicine, UT M.D. Anderson Cancer Center, UT Health Science Center, the University of Houston, Rice University, Texas A&M University Health Science Center, The Methodist Hospital, and Texas Children s Hospital. The TMC plans $7.1 billion in capital investment through 2014, including the $1 billion Baylor Clinic and Hospital. TMC member Texas Children s Hospital recently completed its $1.5 billion expansion, begun in 2010, which included the Jan and Dan Duncan Neurological Research Institute. Downtown Houston In January 2012, the Shriners Hospital for Children-Galveston became the TMC s 50th member institution. UTHealth Ranks as Nation s 7th Largest Medical School Located in Houston s TMC, the University of Texas Health Science Center at Houston (UTHealth) is the largest of the state s nine medical schools and focuses primarily on graduate education and research. Has over 10,000 faculty, staff, students, and residents, and educates more healthcare professionals than any other Texas institution Conferred more than 1,270 degrees and spent almost $261.2 million for research in FY 2011 BCM Top Ranked for R&D The Baylor College of Medicine (BCM) in Houston, located in Houston s TMC, is the state s only private medical school. Has over 11,600 faculty, staff, students, and residents, with research support of $400 million Ranked as one the nation s top 25 medical schools for research by U.S. News & World Report in 2011 Ranked 2nd nationally in federal funding for R&D in the biological sciences at universities by the National Science Foundation 18

21 BIOMEDICAL RESEARCH UTMB Focuses on Infectious Disease Research The University of Texas Medical Branch (UTMB) at Galveston was established in 1891, making it the oldest of UT Systems four medical schools. UTMB has developed a strong program in infectious disease research with several facilities devoted to that field. Has over 13,600 faculty, staff, and students, with total research expenditures of $156.8 million in FY 2010 Became a member of Houston s Texas Medical Center in 2010 Serves as one of the nation s 11 federal Regional Centers of Excellence for Biodefense and Emerging Infectious Diseases Research (CBEID), for the Western Region. The CBEID at UTMB Galveston was established by the National Institutes of Health (NIH) in The CBEID serves as the lead institution for participating academic institutions in the Western Region, a five-state area that includes Louisiana, Arkansas, New Mexico, and Oklahoma. One of the nation s two National Biocontainment Laboratories is located at UTMB. The Galveston National Laboratory (GNL) was established with grants awarded by the NIH s National Institute of Allergy and Infectious Diseases (NIAID). The GNL conducts research to develop therapies, vaccines, and diagnostic tests for naturally occurring emerging diseases such as SARS, West Nile encephalitis, and avian flu, as well as for microbes that might be employed by terrorists. In 2003, the UTMB CBEID was awarded a $110 million NIH grant to establish the Robert E. Shope Laboratory, a Biosafety Level 4 facility. The lab opened in 2004 and is the first full-sized facility of its kind in the nation to be located on a university campus. M.D. Anderson Announces New Cancer Research Center In November 2011, Gov. Rick Perry announced the creation of the Institute for Applied Cancer Science (IACS) at The University of Texas (UT) M.D. Anderson Cancer Center and the recruitment of 25 scientists from Harvard University to M.D. Anderson. The IACS will focus on research, drug discovery, and translational medicine, integrating academic and pharmaceutical science to develop innovative medicines and therapies. UT is committing $75 million over five years to help run the new institute. The Methodist Hospital System Expands Research Arm Since 2004, the Methodist Hospital Research Institute (MHRI) has overseen interdisciplinary scientific activity for The Methodist Hospital System. The MHRI is a member of the Texas Medical Center, with $100 million in annual research expenditures and over 1,500 researchers. The institute experienced the doubling of its NIH research funding from 2011 to In May 2011, MHRI announced the recruitment of renowned cancer geneticists Dr. Nancy Jenkins and Dr. Neal Copeland, with the help of funding from the state cancer initiative CPRIT. In October 2010, the Institute opened a new 440,000 sq. ft. facility solely dedicated to research. 19

22 BIOMEDICAL RESEARCH NORTH TEXAS Southwestern Medical District Expansions The Southwestern Medical District (SMD) in Dallas is a 387-acre medical complex that is home to world-class biomedical research organizations employing over 26,800. Member institutions include University Hospital-St.Paul, University Hospital-Zale Lipshy, Children s Medical Center Dallas, and Parkland Health & Hospital System. Planned SMD expansions include new Parkland hospital facilities, a new $800 million state-of-the-art University Hospital, and a Children s Medical Research Institute. One of the world s top academic medical centers, the University of Texas Southwestern Medical Center (UTSWMC), is also located at SMD. UTSWMC alone employs about 11,400 and trains nearly 4,600 students annually. Ranked No. 20 for best U.S. research medical schools in 2012 and No. 6 in six specialty-care areas by U.S. News & World Report Its Harold C. Simmons Cancer Center is a National Cancer Institute designated cancer center, a distinction held by only the top-tier cancer centers nationwide UTSWMC has four actively working Nobel Laureates, more than any other U.S. medical center University of North Texas Leads Osteopathic Research The Texas College of Osteopathic Medicine (TCOM) is located at the University of North Texas HSC in Fort Worth. It is the state s only osteopathic medical school. Has over 1,385 students and faculty members Approximately 65% of TCOM's graduates practice primary care medicine, helping reduce the state and nationwide shortage Ranked as one of the nation's top 50 medical schools for primary care by U.S. News & World Report TCOM s Osteopathic Research Center is a national research program that studies the clinical effectiveness of osteopathic manipulative medicine 20

23 BIOMEDICAL RESEARCH SOUTH TEXAS UTHSC at San Antonio Spurs Local Biotech Industry The University of Texas Health Science Center (UTHSC) at San Antonio is one of the UT System s four medical schools. Has over 9,800 employees and students in four cities, including San Antonio, Harlingen, Edinburg, and Laredo Managed $228 million in annual research related activities in FY 2010 Opened the new $150 million South Texas Research Facility in October The 188,000 sq. ft. building will house up to 20 lab teams, working in areas ranging from regenerative medicine to cancer research. Military Medical System Grows in San Antonio In September 2011, U.S. Air Force and Army officials activated the San Antonio Military Health System (SAMHS), which provides oversight for all military treatment facilities and the healthcare needs of approximately 230,000 Department of Defense (DoD) beneficiaries in the San Antonio area. SAMHS healthcare services are provided by the San Antonio Military Medical Center (SAMMC), a Level 1 trauma center and the DoD s largest inpatient hospital; Wilford Hall Ambulatory Surgical Center (WHASC), which is the DoD s largest outpatient ambulatory surgery center; 19 primary care clinics; and over 100 specialty services. San Antonio Thrives as Hub of Private Sector Scientific R&D Since 1947, San Antonio s Southwest Research Institute (SwRI) has provided contract R&D services to industrial and government clients across industries, which today include biotechnology and medicine. SwRI s headquarters facility employs over 3,000 workers and occupies approximately two million square feet of office and laboratory space across 1,200 acres. SwRI s 2011 revenues exceeded $580 million and, in 2011, the organization dedicated $6.1 million to fund its internal research programs separate from contract client projects. The Texas Biomedical Research Institute, SwRI s sister institution located on an adjacent 200 acre campus, is one of the world s leading independent biomedical research institutions. Texas Biomed has a nearly $55 million annual budget and employs over 400 people. The institute is home to the Southwest National Primate Research Center and the world s largest colony of baboons for biomedical research; the nation s only privately owned biosafety level 4 laboratory; and the AT&T Genomics Computing Center, the world's largest computer cluster devoted to human genetic and genomic research. 21

24 BIOMEDICAL RESEARCH CENTRAL TEXAS Texas A&M s National Center for Therapeutics Manufacturing Opens Spring 2012 is the inaugural semester for Texas A&M University s National Center for Therapeutics Manufacturing (NCTM), a firstin-class biopharmaceutical GMP (Good Manufacturing Practice) manufacturing facility and interactive academic training center. The NCTM was built in collaboration with UT s M.D. Anderson Cancer Center (MDACC) as part of a major joint research initiative on cancer announced in May 2010 between NCTM and MDACC. A $50 million Texas Emerging Technology Fund award in 2009 helped establish the NCTM. NCTM facility in College Station, Texas UT Austin Biotech Institutions The University of Texas at Austin (UT Austin) is one of the nation s largest universities and one of Texas three Tier One research universities. UT Austin has a number of biotechnology-related divisions, institutes, and centers. Selections are highlighted below. T1-3D was created to coordinate and commercialize the university s translational therapeutic and diagnostic research efforts. The resulting products are developed by partnerships between UT Austin medical researchers and private companies. The IRC, previously known as the Neuroscience Imaging Center, received a $3.5 million TETF award in 2007 to establish a center to study cognitive brain functions using MRI technology. The new facility s grand opening was in May Established in 1993, the ICMB is a multidisciplinary center of excellence for biotechnology whose goal is to promote cell and molecular biology research and education. The Institute conducts fundamental research into the basic processes of living cells and tissues, which is crucial to future advances in medicine and biotechnology. 22

25 BIOMEDICAL RESEARCH Biotech Collaborative in Bryan-College Station In June 2011, the Texas A&M University System (TAMU), in conjunction with The Research Valley Partnership, unveiled the One Health PLUS Biocorridor, a master planned center for education, research, development, commercialization, and the production of pharmaceuticals and vaccines in Bryan- College Station, Texas. Anchored by TAMU, one of the nation s top research institutions, the Biocorridor intends to become the nation s premier destination for the discovery of new therapies, pre-clinical trials, and manufacturing all in one location. The Biocorridor s interdisciplinary collaborations and research will encompass humans, animals, and plants. Participating Biocorridor research facilities include the TAMU Health Science Center, the TAMU College of Veterinary Medicine and Biomedical Sciences (CVM), TAMU AgriLife, the Texas Engineering Extension Service, the TAMU Institute for Preclinical Studies (TIPS), TAMU Institute for Genomic Medicine (TIGM), and TAMU s National Center for Therapeutics Manufacturing (NCTM). Bioscience Research Complex in Temple Over the past ten years, the city of Temple has built a unique health and bioscience industry cluster around local academic, medical, and research facilities. In 2003, the Temple Health and Bioscience District (THBD) was created through unique state legislation and the approval of local citizens. The THBD s Cancer Research Institute (CRI) opened in 2005, as part of a joint development agreement with Scott & White (S&W). Led by renowned cancer researcher Dr. Arthur Frankel, the CRI has attracted other leading researchers. The Texas Bioscience Institute (TBI) opened in 2006 to prepare students to enter the bioscience and medical industries. The Institute was created with funding from the U. S. Department of Labor, the city of Temple, and S&W. In 2007, the expansion of the TAMU HSC College of Medicine brought a new campus and fouryear medical school to Temple and Scott & White Memorial Hospital (SWMH). In December 2007, the State of Texas announced a $7.5 million TEF grant to SWMH to increase critical research initiatives and generate nearly 1,500 jobs during the next decade. In February 2009, the State of Texas announced a $5 million TETF grant to recruit leading scientist Dr. Darwin Prockop as the founding director of TAMU HSC College of Medicine s Institute for Regenerative Medicine at S&W. The Institute uses adult stem cells to develop new therapies. In February 2010, the Temple Bioscience Accelerator was created to develop new bioscience companies in the region. Beginning in summer 2012, the THBD will sponsor the THBD Scholars Research Program, with $4,000 awards going to five undergraduate students for positions in the SWMH, the TAMU HSC College of Medicine - Temple Campus, and the Central Texas Veterans Healthcare System. 23

26 BIOMEDICAL RESEARCH WEST TEXAS El Paso Home to Texas Newest Medical School The Paul L. Foster School of Medicine at Texas Tech University Health Sciences Center at El Paso (PLFSOM) opened in 2009, making it the state s newest medical school. Has over 1,700 faculty and staff members Is the only four-year medical school on the U.S./Mexico border and operates a Border Health Research program Centers of Excellence in Cancer, Infectious Diseases, and Neurosciences have received funding from CPRIT and the NIH Partners include the William Beaumont Army Medical Center (WBAMC) at Fort Bliss TTUHSC Leads Medical Training and Research in West Texas The Texas Tech University Health Sciences Center (TTUHSC) is based in Lubbock with satellite campuses in Abilene, Amarillo, El Paso, Lubbock, Odessa, and Dallas/Fort Worth. TTHUSC system includes two medical schools, two nursing schools, a pharmacy school, a graduate school of biomedical sciences, and a school of allied health sciences Has trained over 10,000 health professionals to date TTHUSC s Clinical Research Institute was established in 2010 to conduct clinical, epidemiological, and educational research. Ongoing studies span the fields of aging, cancer, reproduction, genetic diseases and rural health EAST TEXAS World-Class Pulmonary Research in East Texas The University of Texas Health Science Center at Tyler (UTHSCT) is a world-renowned center of pulmonary and infectious disease treatment and research. Employs over 800 people, with more than 20 outpatient clinics, a hospital, and an emergency care center Its graduate medical education programs with residencies in family medicine and occupational medicine provide doctors for the Northeast Texas region Offers residency programs in family medicine and occupational medicine, as well as master s degree programs in biotechnology and environmental science Is the program sponsor of a residency program in internal medicine at Good Shepherd Medical Center in Longview Partner to the Heartland National TB Center, which is located at the Texas Center for Infectious Disease in San Antonio and is one of the nation s four regional training and medical consultation centers for tuberculosis. 24

27 Animal & Agricultural Biotech Texas Research Centers Texas has been at the forefront of agricultural research for over 100 years. Today, Texas A&M University still graduates more students in agricultural-related fields than any institution in the nation. Below are four leading research centers in the state. A nimal biotechnology focuses on the genetic improvement of domesticated animal species, including cloning, selective breeding, artificial insemination, and genetic engineering. Crop biotechnology research is centered on increasing yields by making plants stronger and more resistant to pests and environmental stresses, as well as by developing biopesticides, herbicides, and other crop protections. Texas is the nation s No. 1 cotton producer and 86% of the state s cotton crop is genetically modified. -U.S. Dept. of Agriculture Texas is a natural choice for agricultural biotechnology business as the nation s leading producer of cattle and cotton and the No. 3 overall producer of agricultural products, behind California and Iowa. The Lone Star State is also home to world-class agricultural education and research facilities, particularly through the Texas A&M and Texas Tech University Systems, as well as established agricultural feedstock and chemicals manufacturing industries concentrated in the Texas Panhandle and Gulf Coast regions. In 2011, 3,000 or approximately one out of every 12 U.S. agricultural feedstock and chemicals industry employees worked in Texas. Texas A&M Univ., Texas AgriLife Research, Dept. of Animal Science Texas A&M s Dept. of Animal Science has achieved national and international prominence as the largest and most complex department of animal science in the nation. Currently, disciplines within the department include reproductive physiology, animal breeding and genetics, food science, microbiology, equine science, dairy science, animal nutrition, and meat science. Texas Tech Univ., Animal & Food Sciences Dept., Burnett Center for Beef Cattle Research Since 1984, Texas Tech University scientists working at the Burnett Center have contributed extensively to human knowledge of beef cattle feeding and management. Major research areas have included animal growth and composition, beef cattle nutrition, and the environmental sustainability of cattle production. Texas A&M Univ., College of Veterinary Medicine and Biomedical Sciences The college focuses on six signature programs: infectious diseases, genomics, toxicology and environmental medicine, cardiovascular sciences, neurosciences, and reproductive biology. Research includes the college s Biomedical Genomics group, which, for more than 25 years, has led to the most robust animal genomics programs in the world. Texas A&M Univ., Dept. of Soil and Crop Sciences The department works to develop technologies to sustain environmentally sound and economically profitable production systems and to promote the wise use and management of soil, plant, and water resources. 25

28 AGRICULTURAL & ANIMAL & AGRI BIOTECH Agribusiness Industry Leaders Invest in Texas Cotton R&D Because Texas is the nation s largest producer of cotton, the state is a natural location for the R&D operations of Fortune 500 agribusiness firm Monsanto. In fact, the Missouri-based company has four facilities located in Texas, including a research farm outside of Lubbock and testing Monsanto s Cotton Breeding & Tech. Center centers in Haskell and Corpus Christi. In December 2010, Monsanto opened its newest Texas facility, the $10.5 million Texas Cotton Breeding and Technology Center, in Lubbock. Monsanto s new research megasite exemplifies its commitment to the Texas cotton industry and to developing varieties adapted to the region, which produces 60% of the nation s cotton. Cotton is big in Texas, said Ted Crosbie, Vice President for Global Plant Breeding at Monsanto. That s why we built this megasite in Lubbock. This will be our main cotton breeding center. Monsanto, however, is not the only global agricultural biotech firm in Lubbock. Since 1998, German conglomerate Bayer has operated its CropScience division s cotton research headquarters in Lubbock. The site focuses on providing cotton growers with products to meet global demand for cotton fiber. The company maintains a state-of-the-art R&D lab, two breeding stations, a seed processing plant, and supports two of its global cotton seed brands, Stoneville and FiberMax, in Lubbock. Both Monsanto and Bayer CropScience have developed cotton R&D partnerships with Texas universities, including two of the state s leading research institutions, Texas Tech University (TTU) and Texas A&M University s Texas AgriLife Research. Monsanto offers technology internships to TTU students, and, in 2009, donated 4,000 cotton molecular markers and associated information to Texas AgriLife Research for R&D and breeding purposes. Bayer CropScience and TTU have been working together on developing new cotton technology. See collaboration details below. Texas Tech Leads in Cotton Agricultural Genomics R&D In February 2006, the Texas Emerging Technology Fund (TETF) announced a $1.9 million investment in Texas Tech University to help support its new Cotton Functional Genomics Center (CFGC). The TETF award played a key role in the university s recruitment of Dr. Thea Wilkins, one of the world s premier cotton geneticists. Dr. Wilkins currently serves as Director of the CFGC at TTU s Department of Plant and Soil Science (DPSS) and has generated millions of dollars in competitive research funding from the National Science Foundation, the U.S. Department of Energy, and the USDA since In August 2009, Texas Tech and Bayer CropScience signed an exclusive licensing agreement for CFGC s new cotton technology. In May 2010, Bayer announced a $7.5 million contribution to TTU s DPSS to support new research initiatives and facilities development. Through the 100% grant matching Texas Research Incentive Program, this represents a $15 million total contribution to TTU. 26

29 Environmental Tech & Biofuels Texas ranks No. 1 nationally for biodiesel production -U.S. Energy Information Administration (EIA) E nvironmental biotechnology and biofuels are transforming many industrial processes to better conserve and sustain natural resources, ensure food and water safety, utilize crop residues for feed stocks and energy sources, and assist mature industries such as food processing, public water systems, and petrochemicals to become more competitive. Biofuels and biomass are playing an increasingly important role in Texas and the nation s energy mix. Renewable biofuels, including ethanol and biodiesel, can be created from nonfood biomass such as algae, lumber scrap, switchgrass, animal waste, and agricultural residues like corn husks. Texas Is Home to the Nation s Largest Biodiesel Plant Houston-based Renewable Biofuels, Inc. operates the largest biodiesel plant in North America, RBF Port Neches, in Port Neches, Texas. Opened in 2008, the plant has a total refining capacity of 180 million gallons per year. Building on the state s strong agricultural and forestry production base, Texas researchers and businesses are investing in new renewable energy technologies to maintain the state s position as the nation s energy capital. Research in Texas ranges from exploring new methods to convert nonfood stock materials to investigating ways to turn algae into biofuels. In FY 2010, Texas institutions of higher education spent $216.8 million on environmental sciences R&D, according to the Texas Higher Education Coordinating Board. Additionally, the Texas Emerging Technology Fund (TETF) has invested over $23 million to date into environmental and biofuels-related projects. See Appendix 1 for a complete listing. Biofuels in Texas Ethanol and biodiesel are alternative fuels defined by their feedstock. Biodiesel can be produced from vegetable or animal oils that are processed into an alcohol ester, while ethanol can be produced from corn and sugar cane, which are fermented and turned into alcohol. Since Gov. Rick Perry laid out plans for a statewide bioenergy initiative in 2007, Texas has focused on developing alternative fuels from woody grasses and other plants, rather than food crops like corn. As the nation s No. 3 agricultural production state and home to a large forest and cattle industry, Texas is rich in biomass resources and well positioned as a major biofuels producer. In 2011, Texas ranked No. 1 nationally with eight biodiesel refineries providing nearly 330 million gallons of annual production capacity, according to the U.S. Energy Information Administration. The majority of these biofuel manu- 27

30 ENVIRONMENTAL BIOFUELS BIOTECH & BIOFUELS facturing facilities are located in the Houston, Southeast Texas, Dallas/Fort Worth, and West Texas Panhandle regions. The U.S. Department of Agriculture s National Institute of Food and Agriculture (NIFA) awards research grants to support the development of sustainable bioenergy. In the first quarter of 2012, the NIFA awarded more than $1 million in bioenergy grants in Texas to extend separate studies at Texas A&M and Rice Universities. Texas Biofuels Incentives and Regulation The Texas Tax Code offers a biofuel tax of 20 cents per gallon exemption ( and ). Biodiesel or ethanol blended with taxable diesel, that is identified when sold or used as a biodiesel or ethanol fuel blend, is exempt from the diesel fuel tax. Texas Bioenergy Startups Take Root Houston-based Terrabon, Inc., recipient of a 2010 TETF investment of $2.75 million to commercialize its biofuel technology, has proceeded to earn accolades and business success. In July 2011, Terrabon was awarded a $9.5 million contract to produce renewable jet fuel for the U.S. Department of Defense. Then, in fall 2011, Terrabon s biofuel technology was voted the year s most transformative technology and the company was ranked #19 on the Hottest Companies in Bioenergy by Biofuels Digest, a respected industry publication. In 2010, the Texas Emerging Technology Fund also invested $1 million in Photon8 Inc., which genetically enhances the fuel-producing properties of algae and develops extraction technology. The Brownsville, Texas-based company is working in partnership with the University of Texas at Brownsville and Texas Southmost College to produce low cost biofuels from algae. The company is currently developing a pilot production plant. UT Houses One of World s Largest Algae Collections Housed at UT Austin, UTEX The Culture Collection of Algae (UTEX) maintains one of the world s largest algae collections, with approximately 3,000 strains. UTEX supplies algae strains globally for research, biotech development, water quality assessment, and a variety of other purposes. In 2011, the Texas Commission on Environmental Quality (TCEQ) introduced new state guidelines allowing biodiesel to be blended at any ratio into any compliant fuel. This means former limitations, such as requirements to use more additives within the biodiesel and producers having to report blending requirements, have ended. Texas biodiesel producers are now exempt from paying the excise tax, even when the biodiesel is blended with conventional diesel. UTEX is overseen by Dr. Jerry Brand (pictured), a professor in molecular cell and developmental biology at UT Austin. 28

31 Appendix 1: Texas Emerging Technology Fund Biotech Awards Company/ Entity 1 st Detect Houston City Industry Segment Project Description Medical Devices - Biodefense AdviTech San Antonio Medical Devices Algae Bio Fuels Consortium Portable chemical detector for security and medical diagnostics Vision products to combat spatial disorientation, vertigo & motion sickness Funding (in Millions) Pecos Biofuels Bioenergy from algae $4.025 America Stem Cell San Antonio Biopharmaceuticals Animal Innovations Apaxis Medical (FKA SEMMT) AuricX Pharmaceuticals Azaya Therapeutics Bellicum Pharmaceuticals Amarillo Veterinary Medical Technology Bone marrow stem cell transplant enzyme technology for cancer and other disease treatment $1.8 $2.5 $2.5 Animal injection technology $1 Houston Medical Devices Left ventricular assist device (LVAD) implantation $1 Houston San Antonio Houston Pharmaceuticals Biomedicine - Nanohealth Biomedicine Biopharmaceuticals Develop and commercialize a drug compound to treat antibiotic resistant infections, like MRSA Azaya Liposome Encapsulated Radiation Therapy (ALERT) for cancer treatment $1 $1.045 Cancer vaccine $1.45 Bio2 Medical San Antonio Medical Devices Temporary inferior vena cava filter catheter $1 Blue Box Health Houston Medical Devices Technology for home-health chronic disease management CardioSpectra San Antonio Medical Devices Fiber-optic cardiac catheter $1.35 Castle Biosciences Chipotle Business Group Convergen LifeSciences Friendship Arlington Austin Biomedicine Medical Devices Environmental Health Nanohealth Biopharmaceuticals Biomarker-based cancer detection system $1 $1 Water safety testing $1 Targeted nanomolecular cancer therapies $4.5 Corhythm San Antonio Medical Devices Implantable treatment for atrial fibrilliation $3.1 CorInnova College Station Medical Devices Heart therapy device $.5 Cormedics Houston Medical Devices Heart therapy device $1 CryoPen Corpus Christi Medical Devices Cryosurgical device freezes unwanted tissue $2 DentLight Richardson Medical Devices Dental medical devices $1 Diabetica Solutions (FKA Xilas Medical) San Antonio Medical Devices Diabetic foot products $1 DNATriX Houston Biopharmaceuticals Genetically-modified virus for cancer therapy $1 Endothelix Houston Medical Devices Cardiovascular test $1 Ensysce Biosciences Houston Biomedicine - Nanohealth EQMA Waco Biofuels FE3 Medical San Antonio Medical Devices Carbon nanotube/sirna cancer therapeutics $1.5 CAFOs (Concentrated Animal Feeding Operations) feedstock to ethanol Trans-dermal drug patch to deliver iron for treating iron-deficiency anemia $.25 $2.8 29

32 TEXAS EMERGING TECHNOLOGY TECHNOLOY FUND Company/ Entity Gradalis City Industry Segment Project Description Dallas Funding (in Millions) Cancer therapeutics $1.75 Halsa Pharmaceuticals Houston Pharmaceuticals Clinical obesity drug development $1 InView Technology Austin Food Safety - Biodefense High-performance cameras that operate outside the visual range (infrared, ultraviolet, and terahertz) Laser Tissue Welding Humble Medical Devices Surgical therapy $.16 LaserGen Inc. Houston Biomedicine DNA sequencing technology $.1 Leonardo BioSystems Houston Biopharmaceuticals Biomedicine- Nanohealth Medical Devices $1.5 sirna cancer therapeutics $2.5 MacuCLEAR Plano Pharmaceuticals Optical therapeutics $1.7 MicroTransponder Dallas Medical Devices - Nanohealth Neurostimulation pain management $1.38 MicroZAP Lubbock Food Safety Microwave food sterilization technology $1.5 Mirna Therapeutics Molecular LogiX Austin The Woodlands Biopharmaceuticals Biomedicine Biopharmaceuticals MicroRNA therapeutics cancer treatment $5 Genetically engineered therapeutic cancer treatment $.79 Monebo Austin Medical Devices Heart health assessment $.5 Mystic Pharmaceuticals Nano3D Biosciences NanoMedical Systems Inc. NanoSpectra Biosciences National Trauma Institute (NTI) Net.Orange Neuro Resource Group Cedar Park Houston Austin Houston San Antonio Irving Plano Pharmaceuticals- Medical Devices Nanohealth - Pharmaceuticals Medical Devices - Nanohealth Medical Devices - Nanohealth Health Sciences Health Information Technology Health Information Technology Medical Devices Neurolink San Antonio Medical Devices Specialty pharmaceuticals & ophthalmic and intranasal drug delivery systems $ dimensional in vitro cell culturing $1 Personalized nanochannel drug delivery systems $3.5 Oncologic imaging detection using nanoparticles $1.25 Civilian and military trauma research $3.8 Heath care information management software $1.9 Commercialization of InterX products technology for post-operative acute pain management Brain implant system to monitor brain activity and directly deliver drugs to treat brain seizures Noninvasix Galveston Medical Devices Hemoglobin monitor $1 Oncolix Houston Pharmaceuticals OnTrack Imaging Flower Mound Veterinary Medical Technology Development of a non-chemotherapy drug for treatment of ovarian cancer $1.5 $3.2 $2.4 Ultrasound imaging system for horses $1 Ortho Kinematics Austin Medical Services Spine function testing $1.5 OrthoAccel Houston Medical Devices Orthodontics $.75 Palmaz Scientific Dallas Medical Devices SESAME stent $3 Patton Surgical Austin Medical Devices Abdominal-based laparoscopic surgery $3 30

33 TEXAS EMERGING TECHNOLOGY FUND Company/ Entity City Industry Segment Project Description Funding (in Millions) Photon8 Brownsville Biofuels Algae-based biodiesel fuel $1 PLx Pharma Houston Pharmaceuticals Non-steroidal Anti-Inflammatory Drugs (NSAIDs) $2 Pronucleotein Biotechnologies Pulmotect Quantum Logic Devices San Antonio Houston Georgetown Environmental Health Biomedicine - Biodefense Nanohealth Medical Devices RadioMedix Houston Pharmaceuticals Receptor Logic Austin Biomedicine Resonant Sensors Salient Pharmaceuticals Arlington Houston Medical Devices Nanohealth Pharmaceuticals Food and water safety testing products using DNA aptamer sequences to detect pathogens Stimulated Innate Resistance (StIR) against inhaled pathogens Nanoelectronics medical diagnostic technology $.6 Manufacturing radiopharmaceuticals to diagnose and treat diseases, including cancer, through positron emission tomography (PET) T-cell mimic receptors antibodies technology to treat cancer and other diseases $1 $1 $2.8 Optical biochemical sensors $.6 Treatment of cancer-related side effects caused by disease, chemotherapy, or radiation Savara Austin Pharmaceuticals Pulmonary cancer therapeutics $1.9 ScanTech Sciences Houston Environmental Health Food sterilization technology $2 Seno Medical San Antonio Medical Devices Laser optical for cancer scanning $2 SeprOx Shape Memory Therapeutics Smart Imaging Technologies Smartfield The Woodlands College Station Houston Lubbock Medical Devices Pure oxygen technology device $1 Medical Devices Cerebrovascular aneurism treatment $1 Environmental Health Agricultural Technology Speer Medical Devices San Antonio Medical Devices Stellarray Austin Medical Devices Nanohealth Environmental Health Automated water-borne pathogen detection system $1 Real-time irrigation row crop sensor $1 Non-invasive continuous vital sign monitor for pre-hospital use $2 $2 $2.5 Medical products sterilization & medical imaging $.75 Sunrise Ridge Algae Houston Biofuels Algae feedstock for bioenergy $.25 Terapio Austin Pharmaceuticals Treatment and prevention of hand-foot syndrome $1.7 Terrabon Texas A&M System Texas A&M System Texas A&M System Texas A&M Health Science Center (HSC) Bryan, Houston College Station College Station College Station Temple Biofuels Conversion of non-food biomass into biofuels $2.75 Biofuels BioEnergy Alliance $5 Biomedicine Medical Devices - Biomedicine Regenerative Medicine - Biomedicine National Center for Therapeutics Manufacturing (NCTM) $50 Texas Institute for Preclinical Studies (TIPS) $6 Institute of Regenerative Medicine at Scott &White $5 31

34 TEXAS EMERGING TECHNOLOGY FUND Company/ Entity Texas State University Texas Tech University Texas Therapeutic Institute City Industry Segment Project Description San Marcos Lubbock Houston Health Sciences Medical Devices Agricultural Biotechnology Pharmaceuticals - Biomedicine Funding (in Millions) Center for Multifunctional Materials $4 Agricultural genomics R&D (recruited Dr. Wilkins) $1.9 A consortium of UTHSC Houston, MD Anderson, and UT Austin to develop and commercialize medical discoveries, especially pharmaceuticals Thrombovision Houston Medical Devices Platelet measuring device $1.5 $6 University of Houston University of North Texas HSC University of Texas at Austin University of Texas HSC University of Texas HSC University of Texas HSC University of Texas at Tyler ViroXis Houston Fort Worth Austin Houston Biomedicine - Pharmaceuticals Health Information Technology - Biodefense Health Sciences Medical Devices Biomedicine - Nanohealth Institute of Biomedical Research & Center for Nuclear Receptors and Cell Signaling (recruited Dr. Jan-Ake Gustafsson) Center for Commercialization of Fluorescence Technology Imaging Research Center (FKA Neuroscience Imaging Center) Biomedical nanotechnology R&D (recruited Dr. Mauro Ferrari) Houston Health Sciences Center for Translational Injury Research $5 San Antonio Tyler San Antonio Health Sciences Medical Devices Environmental Health Biopharmaceuticals Animal imaging research center for drug and medical device testing Texas Allergy, Indoor Environment and Energy (TxAIRE) Institute $5.5 $2.27 $3.5 $2.5 $4.1 $3.75 Botanically-based therapies for dermal viruses $2.5 Visualase Houston Medical Devices Image-guided laser technology for cancer therapy $.75 Vital Art and Science Richardson Medical Devices ZS Pharma Fort Worth Pharmaceuticals Home-based device to monitor vision for patients with macular degeneration and diabetic retinopathy Oral sorbent to remove toxins in the treatment of kidney and liver disease TOTAL $ M $1 $2 32

35 Appendix 2: Selected Industry Resources Biodiesel Coalition of Texas (BCOT) at A non-profit association website with statewide biodiesel industry information, links, and more. BioHouston at A Houston non-profit association s website with regional biotechnology business resources. BioMed SA at A San Antonio non-profit association s website provides information about regional biomedical resources. Biotechnology Industry Organization (BIO) at A U.S. biotechnology industry association website with statistics, reports, charts, links, and more. Cancer Prevention and Research Initiative of Texas (CPRIT) at The CPRIT website contains information about this state agency including grant project details. The Center for Life Sciences Technology (CLiST) at The website of this Houston-based Center, housed at the University of Houston, provides information on regional resources and news. International Service for the Acquisition of Agri-Biotech Applications (ISAAA) at A non-profit international association website with global information on genetically modified biotechnology crops. Medical Devices Manufacturers Assn. (MDMA) at A U.S. industry association website with medical devices news, resources, and links. National Biodiesel Board (NBB) at A national trade association offering industry news, biodiesel plants data, statistics, papers, links, and much more. National Institutes of Health (NIH) at The U.S. government agency website includes many reports and statistics. National Science Foundation (NSF) at This U.S. government agency funds much of the nation s basic research and publishes many reports and statistics on its website. The Pharmaceutical Research & Manufacturers of America (PhRMA) at The major U.S. pharmaceutical industry association s website with news and industry information. Renewable Fuels Association (RFA) at A U.S. industry association website with biorefinery locations data, industry production statistics, and much more. State Energy Conservation Office (SECO) at The Texas Comptroller of Public Account s SECO website offers information focused on cost-effective clean energy technologies in Texas, funding and incentives, SECO programs, and much more. Texas Bio Corridor Alliance at A non-profit organization formed to support and promote the life sciences along I-35 in Texas, from San Antonio to Dallas/Fort Worth. Texas Department of Agriculture Bioenergy A Texas state agency website with information and data resources on Texas bioenergy. Texas Emerging Technology Fund (TETF) at The Texas Office of the Governor s TETF program website area providing TETF awards information, program contacts, news, and more. Texas Healthcare & Bioscience Institute (THBI) at THBI serves as an advocate and resource for the Texas biotechnology industry and legislators. Texas Industry Profiles website at This Texas Workforce Commission website contains the 2005 Texas industry cluster reports, including Biotechnology and Life Sciences, Regional Location Quotients data at and much more. USDA s Economic Research Service (ERS) website at The ERS is the primary source of U.S. Department of Agriculture (USDA) economic information and research. Its website provides a wealth of data, including some international statistics. 33

36 Office of the Governor Economic Development and Tourism PO Box 12428, Austin, TX