snapshot 2018 industry - new england venture capital ... · illinois2 ,359 3,057 2,770 17% -9% utah...

Snapshot Snapshot 2018 Industry 2018 Industry

August 2018 MassBio.us/Industry-Snapshot

with support from

Industry Employment ........................................................................................................................2Massachusetts Biopharma Industry Employment .............................................................................3 10 and 1 Year Employment: Biotech Research & Development .......................................................410 and 1 Year Employment: Biopharma Manufacturing .....................................................................5 Largest Biopharma Industry Employers in Massachusetts, 2018 ......................................................6 Biopharma Econmic Impact, 2017 ......................................................................................................7 Life Sciences Lab Inventory Growth ..................................................................................................8 Industry Geography ...........................................................................................................................9 Investment in the Industry .............................................................................................................10 Top NIH-Funded States: by Total Funding and Per Capita, 2017 ....................................................11 Top NIH-Funded Independent Hospitals, 2017 ..............................................................................12 Top Massachusetts NIH-Funded Higher Education and Research Institues, 2017 ............................13 Venture Capital Investment: Biopharma ..........................................................................................14 Venture Capital Investment: Life Sciences ......................................................................................15Top 15 VC Financing in Massachusetts, 2017 ..................................................................................16Top VC Financings in Massachusetts, 2018 (Jan-Jul) .......................................................................17Lead Investor Location for Massachusetts Companies, 2017* (percent of dollar amount) .............18Geography of Biopharma Venture Capital Investment, 2017 .........................................................19Massachusetts IPOs, 2017 ...............................................................................................................20Massachusetts IPOs, 2018 (Jan-July) ................................................................................................21Geography of Companies with IPOs, 2017 ......................................................................................22

Drug Development Pipeline ..........................................................................................................23Massachusetts Drug Development Pipeline & Trials by Phase ........................................................24Massachusetts Pipeline by Therapeutic Area ...................................................................................25Massachusetts Pipeline by Medical Indication .................................................................................26Changing the Lives of Patients .........................................................................................................27Appendix / What’s in a Number? .....................................................................................................28

2018 Industry Snapshot

Industry Employment

Industry jobs grew by 28% in the last 10 years and by 4.3% in one year.

28%Growth

Over 10Years

Massachusetts BiopharmaIndustry Employment

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

Industry Employment

PAGE 3

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

54,280 54,829 55,342 56,097 56,461 57,643 60,45963,967 67,046

69,941

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

10 and 1 Year EmploymentBiotech Research & Development

Massachusettsbiotech R&Dgrew by 4%since 2016.

State 2008 2016 201710 Year Change(08-17)

1 Year Change(16-17)

California 21,249 34,212 39,203 84% 15%

Massachusetts 26,439 34,366 35,768 35% 4%Maryland 10,223 8,688 15,351 50% 77%Pennsylvania 14,586 12,493 13,413 -8% 7%New Jersey 9,334 14,065 12,976 39% -8%New York 2,817 6,291 8,856 214% 41%North Carolina 7,331 8,511 8,578 17% 1%Washington 2,679 3,779 7,149 167% 89%Texas 4,522 4,929 5,437 20% 10%Florida 1,185 2,883 2,868 142% -1%Illinois 2,359 3,057 2,770 17% -9%Utah 1,408 2,475 2,238 59% -10%Indiana 1,336 1,945 2,180 63% 12%Missouri 4,697 3,939 1,928 -59% -51%Arizona 759 1,550 1,576 108% 2%

Industry Employment

PAGE 4

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

10 and 1 Year EmploymentBiopharma Manufacturing

State 2008 2016 201710 Year Change(08-17)

1 Year Change(16-17)

California 43,035 50,456 52,125 21% 3%New Jersey 37,957 22,846 22,335 -41% -2%North Carolina 18,787 20,656 20,770 11% 1%New York 20,971 19,504 20,435 -3% 5%Illinois 18,534 20,102 19,778 7% -2%Pennsylvania 22,294 17,885 18,105 -19% 1%Indiana 18,822 17,862 18,080 -4% 1%Puerto Rico 22,556 14,921 14,376 -36% -4%Texas 10,077 11,652 11,994 19% 3%

Massachusetts 9,581 10,264 10,072 5% -2%Maryland 6,097 7,247 8,333 37% 15%Michigan 8,209 8,429 8,104 -1% -4%Utah 4,672 6,590 6,882 47% 4%Florida 5,440 5,741 6,131 13% 7%Missouri 5,078 5,600 5,845 15% 4%

Employment at Massachusetts companies focused on biopharma manufacturing has grown by 5% since 2008.

In the same period, the biomanufacturing jobs in the US as a whole declined by more than 24,000, an 8% decrease.

Industry Employment

PAGE 5

Sources: MassBio Membership Reports & Surveys; Boston Business Journal Book of Lists, 2018

Largest Biopharma IndustryEmployers in Massachusetts, 2018

Sanofi continues to be the largest biopharma employer in Massachusetts.

Industry Employment

Rank Company Employees14 Alkermes 77615 Alnylam 75216 Moderna 66617 Merck 60018 Sunovion Pharmaceuticals 59619 Foundation Medicine 51620 Amgen 50021 Ironwood 48022 GE Healthcare Life Sciences 47123 Tesaro 41524 AstraZeneca 40025 Bristol-Myers Squibb 400

PAGE 6

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

BiopharmaEconomic Impact, 2017

Industry Employment

69,941Employees

$149,731Average Annual Wage

$10.4 BillionTotal

MA-Based Wages

PAGE 7

Life Sciences Lab Inventory Growth

Industry Employment

Sources: Colliers Meredith & Grew, Life Science Review, 2007-2015; CBRE 2016- 2018

Over 12 million square feet of commercial lab space has been added to Massachusetts in the last 10 years, an increase of 71%.

200917 million

square feet

201829 million

square feet

PAGE 8

IndustryGeography

Industry Employment

Source: MassBio Membership Reports

The life sciences industry continues to grow across the Commonwealth.

West Worcester/1-495

Northeast

128/Suburbs

Boston Cambridge

Core

SouthcoastSouth Shore &

Cape

Worcester/I-49550+ biotech companies, WPI, UMass-Worcester, and 16 other colleges.

WestHome of UMass-Amherst and 21 other colleges. This area is known as The Knowledge Corridor.

128/SuburbsThe immediate western suburbs include 75+ biotech companies, 15 colleges, 3 million square feet of lab space.

SouthcoastStrong med device and

biopharma manufacturing capacity, with numerous land sites in BioReady®

communities and 10 colleges.

Boston-CambridgeMore than 500 biotech companies, 5 of the top 6 hospitals in the U.S.,

and 48 colleges.

Northeast50+ biotech

companies, 2 million+ square feet of lab space,

UMass-Lowell and 11 other colleges.

PAGE 9

Investment in the Industry

Top NIH-Funded States:by Total Funding & Per Capita, 2017


More than 10% of all NIH funding went to Massachusettsorganizations in 2017.

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

Total NIH Funding

State Funding

California $3,946,354,973Massachusetts $2,716,744,336New York $2,386,044,645Pennsylvania $1,672,904,696Maryland $1,611,922,948North Carolina $1,245,779,004Texas $1,160,644,529Washington $998,183,675Illinois $805,534,710Ohio $754,319,250

Funding Per Capita

MA MD RI CT WA PA NC NY MN CA

$396

$266

$161 $146 $135 $131 $121 $120 $100 $100

PAGE 11

Top NIH-FundedIndependent Hospitals, 2017


Five of the top six NIH-funded independent hospitals are in Massachusetts.

Massachusetts receives 57% of all NIH funding to Independent Hospitals.

Please note:NIH lists university-operated hospitals separately.

Organization City State Awards Funding

Massachusetts General Hospital Boston MA 812 $394,465,880 Brigham and Women's Hospital Boston MA 571 $390,450,002 Vanderbilt University Medical Center Nashville TN 463 $259,711,413 Boston Children's Hospital Boston MA 345 $157,591,678 Dana-Farber Cancer Institute Boston MA 219 $144,653,313 Beth Israel Deaconess Medical Center Boston MA 240 $130,821,684 Children's Hospital of Philadelphia Philadelphia PA 224 $126,040,263 Cincinnati Children's Hospital Medical Center Cincinnati OH 290 $121,343,846 St. Jude's Children's Research Hospital Memphis TN 105 $76,186,324 Cedars-Sinai Medical Center Los Angeles CA 123 $55,740,921 New York State Psychiatric Institute New York NY 104 $49,171,819 Seattle Children's Hospital Seattle WA 101 $43,676,764 National Jewish Health Denver CO 58 $33,057,950 Rhode Island Hospital Providence RI 81 $29,540,878 Boston Medical Center Boston MA 60 $28,258,629 Massachusetts Eye and Ear Infirmary Boston MA 55 $24,747,234 McLean Hospital Belmont MA 70 $24,048,862 Roswell Park Cancer Institute Corporation Buffalo NY 55 $22,820,055 Henry Ford Health System Detroit MI 38 $22,709,684 Children's Hospital of Los Angeles Los Angeles CA 43 $21,868,818 Tufts Medical Center Boston MA 38 $18,365,897

Source: NIH, Research Portfolio Online Reporting

PAGE 12

Top MA NIH-Funded Higher Education & Research Institutes, 2017


Massachusetts centers of Higher Education and Research Institutes received $1.25 billion in 2017.

Organization Awards Funding

Harvard Medical School 415 $213,715,633 University of Massachusetts Medical School 332 $154,428,281 Boston University Medical Campus 265 $134,198,969 Harvard School of Public Health 192 $127,640,164 Broad Institute, Inc. 88 $125,297,044 Massachusetts Institute of Technology 260 $110,825,963 Harvard University 141 $68,731,183 Tufts University Boston 137 $54,412,496 Boston University (Charles River Campus) 120 $38,129,718 Northeastern University 82 $33,142,938 University of Massachusetts Amherst 78 $30,564,774 Brandeis University 71 $27,736,226 Joslin Diabetes Center 36 $22,971,910 Whitehead Institute for Biomedical Research 38 $16,819,784 Boston College 34 $15,420,007

Source: NIH, Research Portfolio Online Reporting

PAGE 13

Venture Capital Investment:Biopharma


Venture investment in Massachusetts biopharma companies was $3.1 billion in 2017.

In the first two quarters of 2018, Massachusetts biopharma companies raised $2.7 billion.

37% of all biopharma VC dollars went to Massachusetts companies in 2017.

Source: PwC Money Tree Report Biopharma includes biotechnology, drug discovery, drug development, and pharmaceuticals/drugs.

$3.1 billion

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

$3,500,000,000

$3,000,000,000

$2,500,000,000

$2,000,000,000

$1,500,000,000

$1,000,000,000

$500,000,000

$-

PAGE 14

Venture Capital Investment:Life Sciences


Combined with biopharma, all life sciences companies in Massachusetts raised$3.6 billion in venture capital investment in 2017.

Source: PwC Money Tree Report Biopharma includes biotechnology, drug discovery, drug development, and pharmaceuticals/drugs.Other Life Sciences includes disease diagnostics, drug delivery, drug manufacturing, medical devices & equipment, medicalequipment & supplies, medical info & pharmaceutical distribution & wholesale.

$430 million

$3.1 billion

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

$3,500,000,000

$3,000,000,000

$2,500,000,000

$2,000,000,000

$1,500,000,000

$1,000,000,000

$500,000,000

$-

PAGE 15

n Biopharma n Other Life Sciences


Source: EvaluatePharma®, Aug 2018 Note: Excluding PIPE numbers.

Company Financing ($ million)

Investment Round

Cullinan Oncology 150 Series ARubius Therapeutics 120 Series ASemma Therapeutics 114 Series BNeon Therapeutics 106 Series BIntarcia Therapeutics 104 Series IHomology Medicines 84 Series BCodiak Biosciences 77 Series CKSQ Therapeutics 76 Seed CapitalKaleido Biosciences 65 Series UndisclosedRelay Therapeutics 63 Series BLifeMine Therapeutics 55 Series AReplimune 55 Series BTango Therapeutics 55 Series ADeciphera Pharmaceuticals 52 Series CSpero Therapeutics 52 Series CTranslate Bio 51 Series C

Top 15 VC Financings inMassachusetts, 2017

PAGE 16


Company Financing ($ million)

Investment Round

Moderna Therapeutics 500 Series UndisclosedTCR2 Therapeutics 125 Series BKaleido Biosciences 101 Series CConstellation Pharmaceuticals 100 Series UndisclosedGeneration Bio 100 Series BRubius Therapeutics 100 Series BBeam Therapeutics 87 Series ACompass Therapeutics 70 Series ACentrexion Therapeutics 67 Series DFogPharma 66 Series BAkero Therapeutics 65 Series ANimbus Therapeutics 65 Series C

Source: EvaluatePharma®, August 2018

Top VC Financings in Massachusetts, 2018 (Jan-Jul)

PAGE 17

Top VC Financings in Massachusetts, 2018 (Jan-July)


Sum of MA biotech companies receiving VC dollars in 2017; limited to lead investors (excluding undisclosed investors and/or amounts and existing shareholder rounds). In cases of co-led rounds, award amounts are equally divided.Source: EvaluatePharma®, August 2018

US-based investors outside of Massachusetts led 60% of the investment into Massachusetts-based biopharma companies in 2017.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Series A

Series B

Series C

Series D

n Massachusetts n Rest of the US n Outside of the US

PAGE 18

Top 15 VC Financings inMassachusetts, 2017


Cambridge-based companies received 62% of all biotech venture investment in the state.


Lexington$129

Cambridge$1,835

All others$326

Waltham$242 Woburn

$97

Boston$320

Location of venture-backed companies ($ million)

PAGE 19

Massachusetts IPOs2017


There were 12 IPOs from Massachusetts biotech companies in 2017.48% of all US-based biotech IPOs in 2017 were from Massachusetts companies.

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

PAGE 20

Massachusetts IPOs2018 (Jan-July)


There have been 15 IPOs from Massachusetts biotech companies from January through July of 2018.39% of all US-based biotech IPOs from January to July of 2018 were from Massachusetts companies.

Note: Figures refer to “offer amounts” (investment secured) at time of IPO. Source: Nasdaq.comPAGE 21

Geography of Companieswith IPOs, 2017


Location of Companies with IPOsIn 2017, 50% of all Massachusetts biotechs that went public were located in Cambridge.


Cambridge6

Waltham3

Newton1

Boston1

Burlington1

PAGE 22

Drug Development Pipeline

Massachusetts Drug DevelopmentPipeline & Trials by Phase


The Massachusetts drug development pipeline includes 44 candidates pending FDA approval.

Only Massachusetts-headquartered company pipelines are included. Source: EvaluatePharma®, August 2018

• 2,116 MA Drug Candidates* • 16% of US Pipeline • 6% of Global Pipeline

377

999

500

196

44

Pre-Clincal Phase I Phase II Phase III Filed

PAGE 24

Massachusetts Pipeline byTherapeutic Area


Only Massachusetts-headquartered company pipelines are included. Source: EvaluatePharma®, August 2018 Percent of total drug candidates

Oncology continues to bethe most frequently researched therapeuticarea in Massachusetts.

Only Massachusetts- headquartered companies are included.

Cancer, 35%

All Others, 17%

Skin, 2%

Cardiovascular, 3%

Blood, 3%

Respiratory, 4%

Musculoskeletal, 5%

Sensory organs, 5%

Immunology, 6%

Infections, 9%

Neurology, 11%

PAGE 25

Massachusetts Pipeline by Medical Indication (Top 25)


Massachusetts researchers are currently researching and developing products for patients with over 400 different medical indications.

Only Massachusetts-headquartered company pipelines are included.


Medical IndicationNumber of

Investigational Drugs

% of all Investigational

DrugsGeneral cancer indications 232 8.30%Solid tumour indications 161 5.76%Undisclosed 82 2.93%Other neurological indications 79 2.83%Other immune indications 54 1.93%General blood malignancies 46 1.65%Cystic fibrosis (CF) 45 1.61%General inflammatory disorders 45 1.61%Other metabolic indications 42 1.50%Breast cancer 41 1.47%Duchenne muscular dystrophy 41 1.47%Alzheimer's disease 36 1.29%General bacterial indications 35 1.25%Amyotrophic lateral sclerosis (ALS) 31 1.11%Non-small cell lung cancer (NSCLC) 31 1.11%Leukaemia, acute myeloid (AML) 30 1.07%Non-Hodgkin lymphoma (NHL) 29 1.04%Ovarian cancer 29 1.04%Melanoma 28 1.00%Gram negative infections 27 0.97%Other musculoskeletal disorders 25 0.89%Pancreatic cancer 25 0.89%Parkinson's disease 25 0.89%Diabetes, type II (maturity onset) 24 0.86%Glioblastoma multiforme 24 0.86%

PAGE 26

Changing the Lives of Patients


Massachusetts-headquartered companies have developed therapies that treat

patient populations of up to

264,450,000 patientsIN THE UNITED STATES

1,989,571,000 patientsAROUND THE WORLD

PAGE 27

Appendix Why use the QCEW? QCEW data is comprised of employment and wages from unemployment insurance (UI) tax reports submitted by employers and is augmented by both BLS worksite reports and the Annual Re-filing Survey (ARS), which surveys one quarter of all private-sector establishments each year. The QCEW data is available on a more timely basis than the CBP and is directly related to the state’s ES-202 data, providing an additional, ongoing corroborative source.

What is considered “biopharma” employment?Using the North American Industry Classification System (NAICS), with which QCEW data is reported, MassBio has determined that several NAICS classifications can be considered part of the biotechnology and pharmaceutical industry. However, only in certain cases can the industry claim 100% of any one NAICS code. MassBio determined that a percentage of some industry classifications could be used in estimating overall industry employment. In some cases, the percentage determination for certain industry codes was based on reports developed by other organizations. The following NAICS codes are utilized:

NAICS 3254: Pharmaceutical MFG, including Biologics (100%)NAICS 541714 Research and Development in Biotechnology (except Nanobiotechnology) (100%)NAICS 541715 Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology) (27% in 2017 and beyond, 22% for 2016 and prior.)NAICS 541713 Research and Development in Nanotechnology (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%)

As of 2017 data, NAICS 541711, Research and Development in Biotechnology and NAICS 541712, R&D in Physical, Engineering, and Life Sciences (except biotech) have been replaced by 541714 and 541715 respectively. NAICS 541715 was created from parts of the previous NAICS 541711 and NAICS 541712 and now stands alone in the 2017 data.

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

PAGE 28

What’s in a Number?

As the premier source of information on life sciences in Massachusetts, MassBio tracks industry statistics over time and issues an

overview Industry Snapshot each year.

For more information, contact

Elizabeth SteeleVice President, Programs & Global Affairs

[email protected]

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MassBio.org • 617.674.5100300 Technology Square, 8th Floor Cambridge, MA 02139

snapshot 2018 industry - new england venture capital ... · illinois2 ,359 3,057 2,770 17% -9% utah...

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