North Carolina’s Life Sciences Cluster

Impact of the North Carolina Biotechnology Center

21 August 2013

Mark Lombard, MBA Program Director, Bioscience Industrial Development North Carolina Biotechnology Center

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

North Carolina, USA

• Place – 3 major research universities in a 30 mile radius – Ecosystem of supportive organizations, risk capital,

entrepreneurial culture

• People – Collaboration among visionary business, academia, gov’t leaders – Attract and retain scientific and business talent

• Programs – Company creation, attraction, retention, expansion programs – Innovative workforce development programs

• Patience – North Carolina Biotechnology Center: 30 years – Research Triangle Park: 50+ years

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

Life Sciences in North Carolina

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

Brazil and North Carolina

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

Brazil and North Carolina

Sao Paulo (2012) • Population: 41,901,219

• Density: 170/km2

• GDP (2010) – US$615M

– US$15,322 per capita

• Machinery, auto and aviation, services, finance, textiles, oranges, sugar cane, coffee, life sciences

North Carolina (2012) • Population: 9,752,073

• Density: 83/km2

• GDP (2010) – $407M

– $42,884 per capita

• Cotton, tobacco, hogs, chickens, textiles, furniture

• Finance, advanced mfg, IT, life sciences

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

Sao Paulo and North Carolina

BIOTECHNOLOGY IN NORTH CAROLINA

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

Global Challenges

• Human/Animal health

• Food availability & security

• Energy

• Environmental sustainability

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

Biotechnology: Heal, Fuel, Feed the World

Biotech in NC – Large and Diverse

• 3rd Largest Life Science Cluster in the US

– Medical Devices & Diagnostics

– Contract Research & Manufacturing

– Biopharma

– Agricultural Biotech

58%21%

21%

560+ Companies60,000+ Employees

R&D

CRO/Testing

Mfg/Prod

Biotech in NC – Fastest Growing

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

Spe

cial

izat

ion

Growth Rate

• Average salary - $78,348

– Nearly double the state’s private sector average

• 3.6 additional jobs for each biotech job

• 226,000 total jobs

Biotech in NC – High Impact Jobs

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

• Direct biotechnology sector revenues $41.2 billion

• Employee compensation $12.7 billion

• State and local revenues $1.92 billion

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

Biotech in NC – Annual Economic Impact

THE NORTH CAROLINA BIOTECHNOLOGY CENTER

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

To provide long-term economic and societal benefits to North Carolina through support of biotech research, business, education and strategic policy statewide.

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

NCBiotech – Mission

• State-funded, private, non-profit corporation

• Portfolio of programs – Research

– Business

– Education

– Economic Development

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

NCBiotech – What We Do

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

NCBiotech – Programs

Ideas

Research Support

Company Creation and Growth

Statewide Econ Devel

Products, Companies and Jobs

Education, Networking and Other Programs

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

NCBiotech – Programs

Ideas

Research Support

Company Creation and Growth

Statewide Econ Devel

Products, Companies and Jobs

Education, Networking and Other Programs

• Grant funding for:

– New research ideas

– Build capacity – equipment/faculty

– University/Company research projects

• $98 million granted

• $4 to $70 leveraged

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

Research Support

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

NCBiotech – Programs

Ideas

Research Support

Company Creation and Growth

Statewide Econ Devel

Products, Companies and Jobs

Education, Networking and Other Programs

Company Creation and Growth: NCBiotech Loan Program

• $50K - $250K low interest loans • ROI = $117 per $1 loaned

NORTH CAROLINA BIOTECHNOLOGY CENTER

Notable Recent Successes

$96 million acquisition

$25 million IPO

BioKier $1.7 million seed financing

Up to $1.6 million grant

Advanced Liquid Logic Microfluidics Lab Instruments

• 2003: $50,000 CFG

• Aug-2004: Company founded

• May-2005: $15,000 BDL – 1 employee

• Sep-2005: $72,600 SBR – 3 employees

• Sep-2006: $160,000 SGL – 6 employees

• Jun-2009: $220,500 SGL – 24 employees

• 2011: Launched products for newborn screening, genomic sample prep

• 2011-2013: NCBiotech VC events in Palo Alto, Boston, NYC

• Aug-2012 : $100,000 IFP

• Jul-2013 : $96M acquisition by Illumina – 80 employees

– All loans repaid in full + interest and warrants

– >$50 million follow-on funding before acquisition

• Introductions to bankers and investors, NCBIP, Library, Jobs Board, NCBiotech Partnering 2011-2013, Corporate Communications

Heat Biologics Cell-based Cancer Immunotherapy

• 2008: Company founded in FL

• Aug-2011: Recruited to NC

• 2011-2012: Assistance with investor pitch

• 2011-2012: NCBiotech VC events in Palo Alto, Boston

• Nov-2011: $225,000 SGL - 2 NC employees – Repaid in full with interest + warrants

• Apr-2012: Industrial Internship Program

• Apr-2013: $5 million VC round

• Jul-2013: $25 million IPO – NASDAQ:HTBX – 5 NC employees

• Investor introductions, partner introductions, foundation introductions, BATON, Library, Corporate Communications, NCBiotech Partnering 2012, BIO Pavilion

BioKier “Medicinalize” Gastric Bypass for Diabetes

• Nov-2008: Company founded

• Oct-2010: Emerging Company Preview

• Oct-2010: $250,000 SRL – 2 employees

• Oct-2012: Pitch Scrub

• Nov-2012: SEBIO Presentation

• Apr-2013: Southeast Venture Philanthropy Summit

• May-2013: $250,000 SGL – 3.5 employees

• Jul-2013: $1.7 million Broadview Ventures, AHA

• Investor introductions, NCBIP, Corporate Communications, Library, NCBiotech Partnering 2011-2013, LSBDP, Biotech Forums

Eboo Pharmaceuticals Opioid Modulators for CNS Diseases

• Feb-2012: Company founded

• May-2012: $30,000 CIL – 2 NC employees

• Jun-2012: Introduction to Biogen IDEC

• Jul-2012: SBIR letter of support, recommended MJFF

• Oct-2012: Introductions to CEO candidates

• Nov-2012: Advice on business plan, investor pitch

• Dec-2012: Emerging Company Preview

• Feb-2013: Facilitated meeting with Eli Lilly

• Apr-2013: Southeast Venture Philanthropy Summit

• Jun-2013: Up to $1.6M grant Michael J. Fox Foundation

• BATON, Corporate Communications, Library

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

NCBiotech – Programs

Ideas

Research Support

Company Creation and Growth

Products, Companies and Jobs

Education, Networking and Other Programs

Statewide Econ Devel

Statewide Offices

– Research Triangle Park – Eastern (Greenville) – Southeastern

(Wilmington)

– Western (Asheville) – Greater Charlotte – Piedmont Triad

(Winston-Salem)

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

Since July 2010 • 21 projects • 1,754 employees

Ripple effects: • 7,803 total jobs • $490 million in payroll • $59 million in state and

local revenues • $2.0B in economic activity

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

Economic Development

• BIO 2004 in San Francisco – Chiron

• 2006: project announced • 2009: plant opens • 2012: production begins • 2012: $36M expansion • 2013: $60M expansion • Today: >$1B invested, 700

employees, will grow to 1000

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

Economic Development Novartis Vaccines

• Early 2010: introduced by Canadian Consulate

• Mid 2010: DARPA, ARE

• Late 2010: construction begins

• Mid 2012: 10M flu doses in one month

• 2013: Acquired by Mitsubsihi in a $357M deal

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

Economic Development Medicago

• 2011: Sequenom (molecular diagnostics) – 242 jobs, $19M investment

• 2012: Aerocrine (asthma diagnostics) – 45 jobs

• 2013: bioMerieux: (in vitro diagnostics) – 44 jobs, $44M investment

• 2013: Syngenta (agricultural biotech) – 150 jobs, $94M investment

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

Economic Development Recent Announcements

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

NCBiotech – Programs

Ideas

Research Support

Company Creation and Growth

Statewide Econ Devel

Products, Companies and Jobs

Education, Networking and Other Programs

• 1900+ teachers trained

• 50,000 students reached each year

• $7M in grants for lab equipment & new courses

• 8,000+ BioWork manuals distributed to colleges

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

Workforce and Education

• Industry-driven biopharma manufacturing training and education

• Emerging and existing labor

• BTEC

– 82,500 SF; $60M

– $12.5M equipment

– cGMP pilot plant

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

Biomanufacturing Workforce NCBIOIMPACT

• High-profile conferences

• Hamner Conference Center – 30,000 guests annually

• Networking groups – More than 3,000 attendees

• Biotech Library

• NCBiotech Job Network

• And much more

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

Networking and Community

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

Looking Ahead

Supportive Ecosystem

• Place – 3 major research universities in a 30 mile radius – Ecosystem of supportive organizations, risk capital,

entrepreneurial culture

• People – Collaboration among visionary business, academia, gov’t leaders – Attract and retain scientific and business talent

• Programs – Company creation, attraction, retention, expansion – Innovative workforce development programs

• Patience – North Carolina Biotechnology Center: 30 years – Research Triangle Park: 50+ years

N O R T H C A R O L I N A B I O T E C H N O L O G Y C E N T E R

Life Sciences in North Carolina

Thank You

Mark Lombard Program Director, Bioscience Industrial Development North Carolina Biotechnology Center