Biotechnology in North Carolina

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1 Biotechnology in North Carolina UNC-DoD Roundtable Bio-supported Products and Systems for the National Defense September 16, 2004 Kenneth R. Tindall, Ph.D. Sr. V. P. for Science and Business Development North Carolina Biotechnology Center

September 16, 2004 Kenneth R. Tindall, Ph

2 The Potential of Biotechnology Agriculture Medicine Environment Biodefense Other Photograph by: Steve Brown & Carl A. Sharif - NYT Pictures

3 North Carolina Biotechnology Center Established by the State in 1981 Chartered as a private, non-profit corporation in 1984 FY $12.5 million budget 38-member board of directors 55-member staff Offices in the RTP, Winston-Salem and Ashville

4 Mission To provide long-term economic and societal benefits to North Carolina by supporting biotechnology research, business and education statewide

5 North Carolina Biotechnology Center Goals Strengthen North Carolina s academic and industrial biotechnology research capabilities Work with business, government and academia to move biotechnology from research to commercialization in North Carolina Foster North Carolina s industrial development Inform North Carolinians about the science, applications, benefits and issues of biotechnology Enhance the teaching and workforce-training capabilities of North Carolina s educational institutions Establish North Carolina as a preeminent international location for the biotechnology industry

development Inform North Carolinians about the science, applications, benefits and issues of biotechnology Enhance the teaching and

6 Operating Philosophies Remain non-partisan Do not conduct laboratory research Enhance instead of duplicate Leverage resources Partner with others

7 Leveraging Resources Through Partnerships Universities Community Colleges NC Dept. of Agriculture NC Dept of Commerce NC DHHS NC BIO CED SBTDC Service Providers Federal Agencies

8 The Process of Technology Development

9 Center Support of Research and Innovation Invested $50+ million in NC public and private universities Funded recruitment of 47 faculty Sponsored 447 research projects

10 Center Support of Education and Training Prepared 1,100 high school teachers in 98 NC counties Funded 102 teaching, training programs Created BioWork course to train entry level bioprocess technicians

Funded 102 teaching, training programs Created

11 Center Support of Biotechnology Business Provided $14.5 million to 86 companies Set up $26 million venture capital fund Invested $2 million in 15 venture capital funds Recruited major biotech companies

venture capital fund Invested $2 million in 15

12 Biotechnology Industry Companies Sales ($B) Employees North Carolina 180 $4 21,000 United States 1,466 $30 194,600

13 Biotech in North Carolina biotechnology & related companies 77 CROs Estimated 37,000 employees total Estimated $10 billion in total revenue

14 Major Biotech Companies in NC Ajinomoto Bayer CropScience BD BASF Bayer Biologicals Biogen Idec biomerieux Diosynth Eisai Eli Lilly GlaxoSmithKline Merck Novo Nordisk Novozymes Syngenta Wyeth Vaccines

15 Major CRO and Testing Companies In North Carolina Analytical Sciences Bespak Cardinal Health Cato Research DSM Catalytica Family Health International Inveresk Research LabCorp Parexel International PharmaResearch PPD Quintiles Transnational RTI

Family Health International Inveresk Research LabCorp

16 North Carolina s World-Class Life Science Community Vision is required It takes leadership government, academia and industry The result is a strong base of life science assets in NC Recognized globally as leading life science community NC #3 US biotech state (Ernst & Young, 2004) Triangle #3 biotech metro area (Milken Institute, 2004) #1 in Biotech Human Capital & Biotech Workforce

Recognized globally as leading life science community NC #3 US biotech state (Ernst & Young,

17 North Carolina s World-class Life Science Community Global recognition - continued One of only five states that are large and specialized in at least two life-science sub-sectors (Battelle, 2004) Drugs and Pharmaceuticals / Ag and Chemicals North Carolina ranked #1 in U.S. New Biotechnology Companies Established (U.S. Department of Commerce, 2003) N.C. s Research Triangle is one of nine biotech clusters in the U.S. that dominate the industry (Brookings Institution, 2002)

North Carolina ranked #1 in U.S. New Biotechnology Companies Established 1997-2001 (U.S. Department of Commerce, 2003) N.

18 2002 Brookings Institution Report Nine Clusters Account for: 3/4 of biotech firms started in last decade 3/5 of all NIH research spending 2/3 of all biotech patents $8 of every $9 of venture capital invested in biopharmaceutical companies

NIH research spending 2/3 of all biotech patents $8 of

19 2002 Brookings Institution Report Requirements for Success Biomedical research infrastructure Venture capital for commercialization Experienced management (KRT)

20 New Jobs Across North Carolina A Strategic Plan for the Future of Biotech in NC Requested by Governor Easley Governors Hunt and Martin Steering Committee Co-Chairs Broad participation from nearly 120 North Carolinians representing industrial, academic, government and community partners from throughout the state Fifty-four strategies recommended Three areas of immediate priority identified Target biomanufacturing Create and attract biotechnology start-up companies Develop biotechnology statewide

academic, government and community partners from throughout the state Fifty-four strategies recommended Three areas of

21 Biomanufacturing in North Carolina A High-Growth Industry 16 biomanufacturing companies > 4,500 employees High-paying jobs: - $25,000 entry level / $50,000 after 5 years 10% job growth since 1990 Strong growth expected

22 Biomanufacturing Companies in NC Ajinomoto AlphaVax Archer Daniels Midland Bayer Biogen Idec Biolex Corn Products Intl. Diosynth (Akzo Nobel) Embrex Greer Laboratories KBI BioPharma Merck (pending) Merix Bioscience MWG Novozymes Wyeth Vaccines

23 Biomanufacturing in North Carolina Biomanufacturing and Pharmaceutical Training Consortium Partners - Industry, UNC system, NCCU, NCSU, NCCCS, NCBIO, NCBC, Golden Leaf, Inc. $64.5 million investment BTEC: GMP-like facility at NCSU BRITE: Biomanufacturing and related science programs at NCCU BioNetwork: Specialized training at community colleges across state

25 Knowledge-based Industry Developing a knowledge-based industry like biotechnology requires a knowledge-based approach: Requires strong research funding and a well developed process for technology transfer Requires strong life science and technology-specific knowledge among entrepreneurs, company management and within financial institutions Nature of life science sector necessitates interaction with a diverse group of players: Universities (research) Funding sources (financing) Existing industry (collaboration) Community Colleges (workforce training) Government (infrastructure)

Biotechnology Works in North Carolina

N O R T H C A R O L I N A : T H E S TAT E O F M I N D S Biotechnology Works in North Carolina 2 NORTH CAROLINA: THE STATE OF MINDS North Carolina Biotechnology Center 15 T.W. Alexander Drive Post Office