2016 industry snapshot - massbiofiles.massbio.org/file/2016-massbio-industry-snapshot.pdf · 2016...

2016 Industry Snapshot

Compiled with support from

Employment & Physical Growth

Investment in the Industry

Drug Development Pipeline

What’s in a Number?

Index

1

Employment & Physical Growth

2

MA Biopharma Industry Employment

Industry jobs grew

by 4.2% in 2015,

for total growth of

37% over ten

years.

Source: Privately owned companies, U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW); MassBio

37%

3

Massachusetts

has more

employment

classified as

Biotechnology

Research and

Development

than any other

state.*

Biotech R&D

employment grew

by 5.3% in 2015.

*NAICS 541711:

Research and

development in

biotechnology. This

classification has only

existed since 2007.

Source: Privately owned companies, U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW)

9 and 1 Year Employment Performance:

Biotech Research & Development*

Top 5 in Job Growth Since 2007

2007 2014 2015% change

2007 - 2015

% change

2014 - 2015

Massachusetts 24,565 29,897 31,469 28.1% 5.3%

California 19,134 27,123 29,616 54.8% 9.2%

New Jersey 8,567 8,574 13,799 61.1% 60.9%

Pennsylvania 15,902 9,648 10,453 -34.3% 8.3%

Maryland 10,154 8,334 8,003 -21.2% -4.0%

North Carolina 7,042 7,251 7,804 10.8% 7.6%

New York 2,679 4,924 5,571 108.0% 13.1%

Texas 4,229 4,643 4,689 10.9% 1.0%

Ohio 2,696 3,352 3,616 34.1% 7.9%

Missouri 4,262 3,541 3,595 -15.6% 1.5%

Illinois 2,403 3,560 3,435 42.9% -3.5%

Washington 2,499 3,610 3,430 37.3% -5.0%

Delaware 0 3,250 2,891 n/a -11.0%

Florida 737 2,622 2,760 274.5% 5.3%

Michigan 4,670 2,686 2,751 -41.1% 2.4%

4


Biopharma Manufacturing

Top 5 in Job Growth Since 2006

Massachusetts

biopharma

manufacturing

employment grew

by 6.3% in 2015.

MA biopharma

manufacturing has

grown by 33.6%

since 2006.

In the same

period, the U.S.

lost more than

24,000 biopharma

manufacturing

jobs, a 7.9%

decrease.

Source: Privately owned companies, U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW)

California 3,939

Massachusetts 2,672

North Carolina 2,275

Maryland 1,741

Texas 1,597

2006 2014 2015% change

2006 - 2015

% change

2014 - 2015

California 44,047 47163 47,986 8.9% 1.7%

New Jersey 40,379 27,459 22,353 -44.6% -18.6%

North Carolina 19,409 21,658 21,684 11.7% 0.1%

Illinois 19,084 18,436 19,662 3.0% 6.7%

New York 21,720 19,233 19,176 -11.7% -0.3%

Pennsylvania 22,299 17,570 17,698 -20.6% 0.7%

Indiana 19,255 17,414 17,455 -9.3% 0.2%

Puerto Rico 27,466 13,752 13,749 -49.9% 0.0%

Texas 9,543 10,677 11,140 16.7% 4.3%

Massachusetts 7,944 9,989 10,616 33.6% 6.3%

Michigan 8,956 8,813 8,686 -3.0% -1.4%

Maryland 5,536 6,969 7,277 31.4% 4.4%

Missouri 5,360 5,292 5,194 -3.1% -1.9%

Connecticut 9,404 5,147 4,950 -47.4% -3.8%

Ohio 5,332 4,984 4,724 -11.4% -5.2%

5

Largest Biopharma Industry Employers in

MA, 2015

Sources: MassBio Membership Reports & Surveys; Boston Business Journal Book of Lists, 2016

Sanofi

Genzyme

continues to be

the largest

employer in the

industry in

Massachusetts.

GE Healthcare

Life Sciences is

a new addition

to the top 25

with 540

employees

following the

opening of their

new

headquarters in

Massachusetts.

Rank Company Employees

1 Sanofi Genzyme 5,000

2 Biogen 2,900

3 Shire 2,580

4 Novartis 2,516

5 Takeda 2,228

6 Pfizer 2,200

7 Parexel International 1,396

8 Quest Diagnostics 1,350

9 Vertex 1,300

10 Charles River Laboratories 1,000

11 EMD Millipore 1,000

12 EMD Serono 836

13 AbbVie 800


14 Sunovion Pharmaceuticals 590

15 Merck 575

16 Alkermes 548

17 GE Healthcare Life Sciences 540

18 Amgen 502

19 AstraZeneca 400

20 Bristol-Myers Squibb 400

21 Merrimack 350

22 Alnylam 334

23 Immunogen 325

24 Lantheus 322

25 Ironwood 289

6

63,025 employees

$147,432 average salary

$9,292,062,129 total MA-based payroll

Source: Private sector, U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW)

Biopharma Economic Impact, 2015

7


Medical Device

Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW)

MassBio has

seen growth in

drug-device

combinations

and

diagnostics.

New this year,

MassBio looked

at the

performance of

the medical

devices sector

of the industry.

2006 2014 2015% change

2006 - 2015

% change

2014 - 2015

California 61,000 65,833 65,870 8.0% 0.1%

Minnesota 28,247 28,731 29,179 3.3% 1.6%

Florida 24,198 23,263 23,455 -3.1% 0.8%

Indiana 17,477 18,091 18,228 4.3% 0.8%

New York 20,663 17,021 17,425 -15.7% 2.4%

Pennsylvania 19,611 16,519 16,549 -15.6% 0.2%

Massachusetts 17,010 15,818 15,831 -6.9% 0.1%

Puerto Rico 14,944 14,952 14,923 -0.1% -0.2%

Illinois 12,493 13,433 14,102 12.9% 5.0%

Texas 14,521 14,008 14,029 -3.4% 0.1%

New Jersey 13,926 13,487 13,787 -1.0% 2.2%

Utah 9,190 11,617 11,904 29.5% 2.5%

Michigan 9,795 12,233 11,715 19.6% -4.2%

Wisconsin 11,637 10,862 11,015 -5.3% 1.4%

Ohio 11,904 10,691 10,683 -10.3% -0.1%

8

Largest Medical Device Employers in MA,

2015

Sources: MassBio Membership Reports & Surveys; Boston Business Journal Book of Lists, 2016


1 Philips 3,565

2 Boston Scientific 1,772

3 Thermo Fisher Scientific 1,750

4 DePuy Synthesis 1,500

5 Smith & Nephew 1,000

6 PerkinElmer 875

7 Nova Biomedical 780

8 Analogic 730

9 Hologic 586

10 ZOLL Medical 585

11 Haemonetics 570

12 Insulet 400

13 NxStage Medical 353

14 Abiomed 350

15 Cynosure 346

16 Tecomet 336

9

2007

Sources: Colliers Meredith & Grew, Life Science Review, 2007-2015; CBRE 2016

2016

25,075,230 s.f.

16,063,990 s.f.

New facilities in 2016 Over 9 million

square feet of

commercial lab

space has been

added to the

Massachusetts

market since

2007.

Of that 9

million, 4

million square

feet has been

added since

2013 alone.

Pfizer, 610 Main Street North, Cambridge

Bristol Myers Squibb, Devens

Life Sciences Lab Inventory Growth

10

Industry Geography

The immediate

western suburbs

include 75+ biotech

companies,

15 colleges, 3 million

s.f. of lab space.

128/Suburbs

50+ biotech companies,

WPI, UMass-Worcester,

and 16 other colleges.

Worcester/I-495 50+ biotech companies,

2 million+ s.f. in lab space,

UMass-Lowell and 11 other

colleges.

Northeast

Home of UMass-

Amherst and 21 other

colleges. Area known

as The Knowledge

Corridor.

West

Strong med device and

biopharma manufacturing

capacity, with numerous

land sites in BioReady®

communities and 10

colleges.

South Coast

250+ biotech companies,

the top 4 NIH-funded

hospitals in the U.S.,

and 48 colleges.

Boston-Cambridge

The life sciences

industry

continues to

grow across the

Commonwealth.

Source: MassBio Membership Reports

11

Forecasting Job Demand

*”Ancillary Sectors” is comprised of biotech-related jobs in five separate industries encompassing higher education,

healthcare, testing laboratories, and laboratory research instrumentation manufacturing

Source: Annual Job Trends Forecast 2016, MassBioEd

MassBioEd

published its first

Annual Job

Trends Forecast

to project future

job demand

trends through

May 2018.

The report

forecasts the

total increase by

May 2018 to be

4,325 new jobs,

a 6.7% increase

from May 2015.

12

Investment in the Industry

13

Top NIH-Funded States:

by Total Funding and Per Capita, 2015

Massachusetts

continues to

outpace other

states in terms of

NIH funding per

capita and ranks

second in total

NIH dollars.

Source: NIH, Research Portfolio Online Reporting, U.S. Census Bureau

Total Funding Funding Per Capita

State Funding

California $3,474,161,367

Massachusetts $2,424,537,355

New York $2,046,827,937

Pennslyvania $1,500,310,007

Maryland $1,292,799,651

North Carolina $1,055,162,620

Texas $1,004,412,330

Washington $885,339,570

Illinois $735,888,006

Ohio $670,051,590

US $22,821,341,439

14

Top NIH-Funded Independent Hospitals, 2015

Source: NIH, Research Portfolio Online Reporting

The top 4 and 5 of

the top 6 NIH-

funded

independent

hospitals are in

Massachusetts.

Only one

independent

hospital receiving

over $100 million

in NIH funding is

not located in

Massachusetts.

Please note:

NIH lists university-

operated hospitals

separately.

Organization City State Awards Funding

Massachusetts General Hospital Boston MA 769 $350,848,744

Brigham & Women's Hospital Boston MA 539 $333,214,883

Children's Hospital Corporation Boston MA 319 $137,431,827

Dana-Farber Cancer Inst. Boston MA 220 $125,295,828

Children's Hospital of Philadelphia Philadelphia PA 202 $114,023,148

Beth Israel Deaconess Medical Center Boston MA 236 $112,741,707

Cincinnati Childrens Hosp Med Ctr Cincinnati OH 257 $98,324,805

St. Jude Children's Research Hospital Memphis TN 94 $66,612,466

New York State Psychiatric Institute New York NY 93 $44,789,229

Cedars-Sinai Medical Center Los Angles CA 95 $41,464,366

Seattle Children's Hospital Seattle WA 84 $38,150,472

National Jewish Health Denver CO 56 $35,256,665

Boston Medical Center Boston MA 78 $30,632,865

Roswell Park Cancer Institute Corp Buffalo NY 67 $28,371,593

McLean Hospital Belmont MA 83 $26,164,845

15

Top Massachusetts NIH-Funded Non-Profits, 2015

Source: NIH, Research Portfolio Online Reporting

Massachusetts

non-profits are

significant

recipients of NIH

funding.

ORGANIZATION AWARDS FUNDING

Harvard Medical School 381 $182,207,074

Broad Institute, Inc. 64 $138,387,917

University of Massachusetts Medical School 325 $131,445,732

Harvard School of Public Health 188 $123,457,982

Boston University Medical Campus 238 $122,486,803

Massachusetts Institute of Technology 257 $100,256,843

Harvard University 121 $55,490,602

Tufts University Boston 127 $46,963,860

Boston University (Charles River Campus) 112 $37,356,161

Brandeis University 80 $27,769,696

Northeastern University 57 $20,512,090

University of Massachusetts Amherst 67 $19,181,224

Whitehead Institute for Biomedical Research 40 $19,078,604

National Bureau of Economic Research 27 $14,042,432

Boston College 27 $12,786,584

Josline Diabetes Center 33 $12,483,350

16

MA Seed-Stage Funding, Annual, 2000-2016*

*Through Q2 2016

Source: PWC MoneyTree Historical Data

In 2015,

MassBio raised

concern over the

decline in long-

term averages

for seed-stage

funding.

We have seen a

turnaround in

2015 and 2016,

a promising sign

for future

industry growth

potential.

17

Venture

investment in MA

rose to a record

$2.1 billion in

2015, an all-time

high.

Massachusetts

receives 28% of

all VC dollars in

biotech in the

U.S.

Source: PwC Money Tree Report

Investment in Massachusetts Biotech Companies, 2006-2015

Venture Capital Investment

18

Top 15 VC Financings in MA, 2015

Source: EvaluatePharma®, July 2016

CompanyInvestment

($ million)Financing Round

Moderna Therapeutics $450 Series D

Editas Medicine $120 Series B

Gritstone Oncology $102 Series A

Syndax Pharmaceuticals $80 Series C

Chiasma $70 Series E

Intellia Therapeutics $70 Series B

WAVE Life Sciences $66 Series B

Dimension Therapeutics $65 Series B

Voyager Therapeutics $60 Series B

UNUM Therapeutics $60 Series B

Ra Pharmaceuticals $59 Series B

Jounce Therapeutics $56 Series B

Constellation Pharmaceuticals $55 Series Undisclosed

RaNA Therapeutics $55 Series B

Neon Therapeutics $55 Series A

19

Top 10 VC Financings in MA, 2016*


*Through Q2 2016

CompanyInvestment

($m)Financing Round

C4 Therapeutics $73 Series A

Kala Pharmaceuticals $68 Series C

Vedanta Biosciences $50 Series Undisclosed

Entasis Therapeutics $50 Series B

Yumanity Therapeutics $45 Series A

Homology Medicines $43.5 Series A

Syros Pharmaceuticals $40 Series Undisclosed

Synlogic $40 Series B

Tarveda Therapeutics $38 Series C

Scholar Rock $36 Series B

20

Lead VC Location for MA Companies, 2015* (percent of dollar amount)

*Sum of MA biotech companies receiving VC dollars in 2015, narrowed down to lead investors

(excluding undisclosed investors and/or amounts and existing shareholder rounds)


Massachusetts

-based VCs

invested over

$596 million

into MA

biotechs,

representing

25% of the

total

investment.

Massachusetts

-based VCs

provided 79%

of the total

Seed Capital

and 49% of

Series A

funding for MA

biotechs in

2015.

21

Massachusetts IPOs, 2015

$86 M

Source: Nasdaq.com, BioSpace

Note: Figures refer to “offer amounts” (investment secured) at time of IPO

$4 M

$40 M

$147 M

$55 M

$60 M

$70 M

$65 M

$134 M There were 13

IPOs from

Massachusetts

companies in

2015.

$72 M

$102 M

$101.8 M

$70 M

22

Massachusetts IPOs, 2016*

Source: Nasdaq.com, BioSpace

Note: Figures refer to “offer amounts” (investment secured) at time of IPO

$147 M

$50 M

$52.8 M

$11.04

There were 7

IPOs from

Massachusetts

biotech

companies in

the first half of

2016.

$72 M

$70 M

$50 M

*Through Q2 2016

23

Geography of VC and IPOs, 2015

Location of VC-backed

Companies

Location of Companies

with IPOs

In 2015, 57%

of all

Massachusetts

biotechs

receiving

venture capital

were located

in Cambridge.

More than half

(54%) of

Massachusetts

biotechs with

Initial Public

Offerings

(IPOs) from

2015 were

located

outside of

Cambridge.


24

Drug Development Pipeline

25

Drug Development Pipeline, by Phase

The MA drug

development

pipeline includes

13 candidates

pending FDA

approval.

The number of

drug candidates

in clinical trials

has increased by

14% from 2015.

*Only

Massachusetts-

headquartered

company pipelines

are included.

1,645 MA Drug Candidates*

13% of US Pipeline

5.9% of Global Pipeline

Source: EvaluatePharma®, August 2016

26


There are 1,645

investigational

drugs being

researched in

Massachusetts,

an increase of

10% from 2015.

Only

Massachusetts-

headquartered

company pipelines

are included.

Massachusetts Pipeline by Therapeutic Area

27

MA Pipeline by Medical Indication (Top 25)

Massachusetts

researchers are

currently

researching and

developing

products for

patients with

362 different

medical

indications.

Source: EvaluatePharma®, August 2016

Medical Indication # of investigational drugs % of all activity

General cancer indications 187 11.35%

Solid tumour indications 166 10.08%

Undisclosed 72 4.37%

Other neurological indications 70 4.25%

General inflammatory disorders 56 3.40%

Other immune indications 49 2.98%

General blood malignancies 41 2.49%

Alzheimer's disease 39 2.37%

Breast cancer 38 2.31%

General bacterial indications 38 2.31%

Diabetes, type II (maturity onset) 31 1.88%

Other metabolic indications 30 1.82%

Non-small cell lung cancer (NSCLC) 29 1.76%

Ovarian cancer 29 1.76%

Leukaemia, acute myeloid (AML) 27 1.64%

Melanoma 27 1.64%

Multiple sclerosis (MS) 27 1.64%

Other musculoskeletal disorders 27 1.64%

Cystic fibrosis (CF) 27 1.64%

Non-Hodgkin lymphoma (NHL) 26 1.58%

General cardiovascular indications 26 1.58%

Duchenne muscular dystrophy 25 1.52%

Multiple myeloma 24 1.46%

Amyotrophic lateral sclerosis (ALS) 23 1.40%

General eye disorders 22 1.34%

28

New Drug Approvals for MA Companies*,

2015

*Approved drugs researched, developed or manufactured in Massachusetts

Source: CenterWatch

Orkambi; Vertex: For the treatment of cystic fibrosis

Varubi; Tesaro: For the prevention of delayed nausea and vomiting associated with

chemotherapy

Aristada; Alkermes: For the treatment of schizophrenia

Strensiq; Alexion: For the treatment of hypophosphatasia

Onivyde; Merrimack: For the treatment of metastatic pancreatic cancer following

gemcitabine-based therapy

Ninlaro; Takeda: For the treatment of treat multiple myeloma

Kanuma; Alexion: For the treatment of Lysosomal Acid Lipase (LAL) deficiency

Imlygic; Amgen: For the treatment of unresectable recurrent melanoma

29

New Drug Approvals for MA Companies*,

2016

*Approved drugs researched, developed or manufactured in Massachusetts through July 2016

Source: CenterWatch

Zinbryta; Biogen: To treat multiple sclerosis

Xiidra; Shire: To treat the signs and symptoms of dry eye disease fibrosis

30

Changing the Lives of Patients

Sources: EvaluatePharma®, August 2016

Massachusetts-

headquartered

companies have

developed 506

products that

focus on a wide

range of therapy

areas.

That includes

190 currently

marketed

products.

Approved Products by Therapy Area

Therapy Area Products

Central Nervous System 93

Dermatology 47

Respiratory 43

Gastro-Intestinal 37

Cardiovascular 35

Oncology & Immunomodulators 33

Musculoskeletal 31

Systemic Anti-infectives 21

Blood 19

Genito-Urinary 13

Sensory Organs 11

Endocrine 8

Various 115

Total 506

31

Changing the Lives of Patients

Sources: Developed from multiple sources including EvaluatePharma®, August 2016, emedicine medscape, NCBI, CDC, 2016

Massachusetts-headquartered companies have developed

therapies that focus on patient populations of

250,390,000 patients 1,821,278,000 patients

IN THE UNITED STATES AROUND THE WORLD

32


33

Please note: Prior to 2012, MassBio used two different federal sources for

employment data. In order to present more consistent employment data on a more

timely basis, we no longer use County Business Patterns (CBP) data of the U.S.

Census Bureau but rely primarily on the U.S. Bureau of Labor Statistics, Quarterly

Census of Employment and Wages (QCEW) for this data.

As a result, historical employment data found in the 2012 -2015 Snapshots vary from

that found in past reports. Though the historical annual employment figures vary by

about 5% between the 2012 Snapshot and those of past years, the trend lines are

very similar.

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.


34

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 541711: Research and Development in Biotechnology (100%)

NAICS 541712: R&D in Physical, Engineering, and Life Sciences (except biotech) (22%)

NAICS 334516: Analytical Laboratory Instrument MFG (30%)

NAICS 54138: Testing Laboratories (9%)

NAICS 622: Hospitals (4.5%)

NAICS 61131: Universities (1.9%)

NAICS 621511: Medical Testing Laboratories (100%)

NAICS 4242, Drug merchant wholesalers, is no longer included in any current or annual employment

figures. NAICS 621511, 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. MassBio also tracks employment for “green

biotechnology” classifications: 325199. 325221, 311222, and 311223. However, the QCEW does not reveal

employment data for these categories beyond minimum ranges, so this data is not included in the

employment figures presented in this Snapshot nor is it factored in comparisons with other states.


35

What is considered “medical device” 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 medical device

industry. The following NAICS codes are utilized:

NAICS 3391: Medical Equipment and Supplies Manufacturing (100%)

NAICS 334510: Electromedical Apparatus Manufacturing (100%)

NAICS 334517: Irradiation Apparatus Manufacturing (100%)


36

Questions?

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:

Jessica Roche

Director of Communications @ MassBio

617-674-5146

[email protected]

37

mailto:[email protected]

2016 industry snapshot - massbiofiles.massbio.org/file/2016-massbio-industry-snapshot.pdf · 2016...

Documents