Snapshot 2018 Industry
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2018 Industry Snapshot Industry Employment ........................................................................................................................ 2 Massachusetts Biopharma Industry Employment .............................................................................. 3 10 and 1 Year Employment: Biotech Research & Development ........................................................ 4 10 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 Institutes, 2017............................ 13 Venture Capital Investment: Biopharma ........................................................................................... 14 Venture Capital Investment: Life Sciences ....................................................................................... 15 Top 15 Venture Capital Financings in Massachusetts, 2017 ............................................................ 16 Top Venture Capital Financings in Massachusetts, 2018 (Jan-July) ................................................. 17 Venture Capital Investment by Lead Investor Location, 2017 ......................................................... 18 Venture Capital Investment by Company Location, 2017 ................................................................ 19 Massachusetts IPOs, 2017 ................................................................................................................ 20 Massachusetts IPOs, 2018 (Jan-July)................................................................................................. 21 Geography of Companies with IPOs, 2017....................................................................................... 22 Drug Development Pipeline ........................................................................................................... 23 Massachusetts Drug Development Pipeline & Trials by Phase......................................................... 24 Massachusetts Pipeline by Therapeutic Area.................................................................................... 25 Massachusetts Pipeline by Medical Indication.................................................................................. 26 Changing the Lives of Patients ......................................................................................................... 27 Appendix / What’s in a Number?...................................................................................................... 28
Industry Employment
Massachusetts Biopharma Industry Employment
54,280 54,829
55,342
Industry Employment
56,097 56,461 57,643
60,459
63,967
67,046
69,941
Industry jobs grew by 28% in the last 10 years and by 4.3% in one year.
28% Growth Over 10 Years
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Source: Privately owned companies, U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW); MassBio
page 3
10 and 1 Year Employment Biotech Research & Development
Massachusetts biotech R&D grew by 4% since 2016.
State California Massachusetts Maryland Pennsylvania New Jersey New York North Carolina Washington Texas Florida Illinois Utah Indiana Missouri Arizona
Industry Employment
21,249
34,212
39,203
10 Year Change (08-17) 84%
26,439 10,223 14,586 9,334 2,817 7,331 2,679 4,522 1,185 2,359 1,408 1,336 4,697 759
34,366 8,688 12,493 14,065 6,291 8,511 3,779 4,929 2,883 3,057 2,475 1,945 3,939 1,550
35,768 15,351 13,413 12,976 8,856 8,578 7,149 5,437 2,868 2,770 2,238 2,180 1,928 1,576
35% 50% -8% 39% 214% 17% 167% 20% 142% 17% 59% 63% -59% 108%
2008
2016
2017
1 Year Change (16-17) 15% 4% 77% 7% -8% 41% 1% 89% 10% -1% -9% -10% 12% -51% 2%
Source: Privately owned companies, U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW)
page 4
10 and 1 Year Employment Biopharma Manufacturing
Employment at Massachusetts companies focused on biopharma manufacturing has grown by 5% since 2008. In the same period, the biomanufacturing jobs in the U.S. as a whole declined by more than 24,000, an 8% decrease.
Industry Employment
California New Jersey North Carolina New York Illinois Pennsylvania Indiana Puerto Rico Texas
43,035 37,957 18,787 20,971 18,534 22,294 18,822 22,556 10,077
50,456 22,846 20,656 19,504 20,102 17,885 17,862 14,921 11,652
52,125 22,335 20,770 20,435 19,778 18,105 18,080 14,376 11,994
10 Year Change (08-17) 21% -41% 11% -3% 7% -19% -4% -36% 19%
Massachusetts Maryland Michigan Utah Florida Missouri
9,581 6,097 8,209 4,672 5,440 5,078
10,264 7,247 8,429 6,590 5,741 5,600
10,072 8,333 8,104 6,882 6,131 5,845
5% 37% -1% 47% 13% 15%
State
2008
2016
2017
1 Year Change (16-17) 3% -2% 1% 5% -2% 1% 1% -4% 3% -2% 15% -4% 4% 7% 4%
Source: Privately owned companies, U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW)
page 5
Largest Biopharma Industry Employers in Massachusetts, 2018
Industry Employment
Sanofi continues to be the largest biopharma employer in Massachusetts.
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13
Company Sanofi Shire Biogen Novartis Pfizer Takeda Vertex Quest Diagnostics Charles River Laboratories MilliporeSigma Parexel International EMD Serono AbbVie
Employees 4,800 3,050 2,443 2,333 2,200 2,000 1,600 1,550 1,446 1,300 1,125 1,039 911
Rank
Company
Employees
14 15 16 17 18 19 20 21 22 23 24 25
GE Healthcare Life Sciences Alkermes Alnylam Moderna Merck Sunovion Pharmaceuticals Foundation Medicine Amgen Ironwood Tesaro AstraZeneca Bristol-Myers Squibb
792 776 752 666 600 596 516 500 480 415 400 400
Sources: MassBio Membership Reports & Surveys; Boston Business Journal Book of Lists, 2018
page 6
Biopharma Economic Impact, 2017
69,941
Employees
Industry Employment
$149,731 Average Annual Wage
$10.4 Billion Total MA-Based Wages
Source: Privately sector, U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW)
page 7
Life Sciences Lab Inventory Growth Over 12 million square feet of commercial lab space has been added to Massachusetts in the last 10 years, an increase of 71%.
Industry Employment
2018
2009
29 million square feet
17 million square feet
Sources: Colliers Meredith & Grew, Life Science Review, 2007-2015; CBRE 2016- 2018
page 8
Industry Geography
Industry Employment
The life sciences industry continues to grow across the Commonwealth.
Worcester/I-495
50+ biotech companies, WPI, UMass-Medical School, and 16 other colleges.
Northeast
Northeast West
Worcester/ 1-495
Boston Cambridge Core 128/Suburbs
West
Home of UMass-Amherst and 21 other colleges. This area is known as The Knowledge Corridor.
128/Suburbs
The immediate western suburbs include 75+ biotech companies, 15 colleges, 3 million square feet of lab space.
Southcoast South Shore & Cape
50+ biotech companies, 2 million+ square feet of lab space, UMass-Lowell and 11 other colleges.
Boston-Cambridge
More than 500 biotech companies, 5 of the top 6 hospitals in the U.S., and 48 colleges.
Southcoast
Strong med device and biopharma manufacturing capacity, with numerous land sites in BioReadyÂŽ communities and 10 colleges.
Source: MassBio Membership Reports
page 9
Investment in the Industry
Top NIH-Funded States: by Total Funding & Per Capita, 2017
Investment in the Industry
More than 10% of all NIH funding went to Massachusetts organizations in 2017.
Total NIH Funding State California Massachusetts New York Pennsylvania Maryland North Carolina Texas Washington Illinois Ohio
Funding $3,946,354,973 $2,716,744,336 $2,386,044,645 $1,672,904,696 $1,611,922,948 $1,245,779,004 $1,160,644,529 $998,183,675 $805,534,710 $754,319,250
Source: NIH, Research Portfolio Online Reporting, U.S. Census Bureau
Funding Per Capita
$396
$266 $161
MA
MD
RI
$146
$135
$131
CT
WA
PA
$121
$120
NC
NY
$100
$100
MN
CA page 11
Top NIH-Funded Independent 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
Investment in the Industry
City
State
Awards
Funding
Massachusetts General Hospital Brigham and Women's Hospital
Boston Boston
MA MA
812 $394,465,880 571 $390,450,002
Vanderbilt University Medical Center Boston Children's Hospital Dana-Farber Cancer Institute Beth Israel Deaconess Medical Center Children's Hospital of Philadelphia Cincinnati Children's Hospital Medical Center St. Jude's Children's Research Hospital Cedars-Sinai Medical Center New York State Psychiatric Institute Seattle Children's Hospital National Jewish Health Rhode Island Hospital Boston Medical Center Massachusetts Eye and Ear Infirmary McLean Hospital Roswell Park Cancer Institute Corporation Henry Ford Health System Children's Hospital of Los Angeles Tufts Medical Center
Nashville Boston Boston Boston Philadelphia Cincinnati Memphis Los Angeles New York Seattle Denver Providence Boston Boston Belmont Buffalo Detroit Los Angeles Boston
TN MA MA MA PA OH TN CA NY WA CO RI MA MA MA NY MI CA MA
463 345 219 240 224 290 105 123 104 101 58 81 60 55 70 55 38 43 38
$259,711,413 $157,591,678 $144,653,313 $130,821,684 $126,040,263 $121,343,846 $76,186,324 $55,740,921 $49,171,819 $43,676,764 $33,057,950 $29,540,878 $28,258,629 $24,747,234 $24,048,862 $22,820,055 $22,709,684 $21,868,818 $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 Harvard Medical School University of Massachusetts Medical School Boston University Medical Campus Harvard School of Public Health Broad Institute, Inc. Massachusetts Institute of Technology Harvard University Tufts University Boston Boston University (Charles River Campus) Northeastern University University of Massachusetts Amherst Brandeis University Joslin Diabetes Center Whitehead Institute for Biomedical Research Boston College
Investment in the Industry
Awards 415 332 265 192 88 260 141 137 120 82 78 71 36 38 34
Funding $213,715,633 $154,428,281 $134,198,969 $127,640,164 $125,297,044 $110,825,963 $68,731,183 $54,412,496 $38,129,718 $33,142,938 $30,564,774 $27,736,226 $22,971,910 $16,819,784 $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.
Investment in the Industry
$3,500,000,000
$3.1 billion
$3,000,000,000 $2,500,000,000 $2,000,000,000 $1,500,000,000 $1,000,000,000 $500,000,000 $-
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Source: PwC Money Tree Report Biopharma includes biotechnology, drug discovery, drug development, and pharmaceuticals/drugs.
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.
Investment in the Industry
$3,500,000,000 $3,000,000,000
$430 million $3.1 billion
$2,500,000,000 $2,000,000,000 $1,500,000,000 $1,000,000,000 $500,000,000 $-
2008
2009
2010
2011
2012
n Biopharma
2013
2014
2015
2016
2017
n Other Life Sciences
Source: PwC Money Tree Report Biopharma includes biotechnology, drug discovery, drug development, and pharmaceuticals/drugs. Other Life Sciences includes disease diagnostics, drug delivery, drug manufacturing, medical devices & equipment, medical equipment & supplies, medical info & pharmaceutical distribution & wholesale.
page 15
Top 15 Venture Capital Financings in Massachusetts, 2017
Company Cullinan Oncology Rubius Therapeutics Semma Therapeutics Neon Therapeutics Intarcia Therapeutics Homology Medicines Codiak Biosciences KSQ Therapeutics Kaleido Biosciences Relay Therapeutics LifeMine Therapeutics Replimune Tango Therapeutics Deciphera Pharmaceuticals Spero Therapeutics Translate Bio
Financing ($ million) 150 120 114 106 104 84 77 76 65 63 55 55 55 52 52 51
Investment in the Industry
Investment Round Series A Series A Series B Series B Series I Series B Series C Seed Capital Series Undisclosed Series B Series A Series B Series A Series C Series C Series C
Source: EvaluatePharmaÂŽ, Aug 2018 Note: Excluding PIPE numbers.
page 16
Top Venture Capital Financings in Massachusetts, 2018 (Jan-July)
Company Moderna Therapeutics TCR2 Therapeutics Kaleido Biosciences Constellation Pharmaceuticals Generation Bio Rubius Therapeutics Beam Therapeutics Compass Therapeutics Centrexion Therapeutics FogPharma Akero Therapeutics Nimbus Therapeutics
Investment in the Industry
Financing ($ million)
Investment Round
500 125 101 100 100 100 87 70 67 66 65 65
Series Undisclosed Series B Series C Series Undisclosed Series B Series B Series A Series A Series D Series B Series A Series C
Source: EvaluatePharmaÂŽ, August 2018
page 17
Venture Capital Investment by Lead Investor Location, 2017
US-based investors outside of Massachusetts led 60% of the investment into Massachusetts-based biopharma companies in 2017.
Investment in the Industry
Series A
Series B
Series C
Series D 0%
10%
20%
30%
40%
n Massachusetts
50%
n Rest of the US
60%
70%
80%
90%
100%
n Outside of the US
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: EvaluatePharmaÂŽ, August 2018
page 18
Venture Capital Investment by Company Location, 2017
Cambridge-based companies received 62% of all biotech venture investment in the state.
Investment in the Industry
Location of venture-backed companies ($ million)
All others $326
Boston $320
Cambridge $1,835
Waltham $242
Lexington $129 Woburn $97
Source: EvaluatePharmaÂŽ, August 2018
page 19
Massachusetts IPOs 2017
Investment in the Industry
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 IPOs 2018 (Jan-July)
Investment in the Industry
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. page 21 Note: Figures refer to “offer amounts� (investment secured) at time of IPO. Source: Nasdaq.com
Geography of Companies with IPOs, 2017
Investment in the Industry
Location of Companies with IPOs In 2017, 50% of all Massachusetts biotechs that went public were located in Cambridge.
Boston 1
Cambridge 6
Waltham 3
Newton 1
Burlington 1 Source: EvaluatePharmaÂŽ, August 2018
page 22
Drug Development Pipeline
Massachusetts Drug Development Pipeline & Trials by Phase
The Massachusetts drug development pipeline includes 44 candidates pending FDA approval.
999
Drug Development Pipeline
• 2,116 MA Drug Candidates • 16% of US Pipeline • 6% of Global Pipeline 500 377
196 44 Pre-Clincal
Phase I
Phase II
Phase III
Filed
Only Massachusetts-headquartered company pipelines are included. Source: EvaluatePharma®, August 2018
page 24
Massachusetts Pipeline by Therapeutic Area
Oncology continues to be the most frequently researched therapeutic area in Massachusetts.
Drug Development Pipeline
All Others, 17%
Cancer, 35%
Skin, 2% Cardiovascular, 3%
Only Massachusetts-headquartered companies are included.
Blood, 3% Respiratory, 4% Musculoskeletal, 5% Sensory organs, 5% Neurology, 11%
Immunology, 6% Infections, 9% Only Massachusetts-headquartered company pipelines are included. Source: EvaluatePharmaÂŽ, August 2018 Percent of total drug candidates
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. Source: EvaluatePharmaÂŽ, August 2018
Medical Indication General cancer indications Solid tumour indications Undisclosed Other neurological indications Other immune indications General blood malignancies Cystic fibrosis (CF) General inflammatory disorders Other metabolic indications Breast cancer Duchenne muscular dystrophy Alzheimer's disease General bacterial indications Amyotrophic lateral sclerosis (ALS) Non-small cell lung cancer (NSCLC) Leukaemia, acute myeloid (AML) Non-Hodgkin lymphoma (NHL) Ovarian cancer Melanoma Gram negative infections Other musculoskeletal disorders Pancreatic cancer Parkinson's disease Diabetes, type II (maturity onset) Glioblastoma multiforme
Drug Development Pipeline Number of Investigational Drugs 232 161 82 79 54 46 45 45 42 41 41 36 35 31 31 30 29 29 28 27 25 25 25 24 24
% of all Investigational Drugs 8.30% 5.76% 2.93% 2.83% 1.93% 1.65% 1.61% 1.61% 1.50% 1.47% 1.47% 1.29% 1.25% 1.11% 1.11% 1.07% 1.04% 1.04% 1.00% 0.97% 0.89% 0.89% 0.89% 0.86% 0.86%
page 26
Changing the Lives of Patients
Drug Development Pipeline
Massachusetts-headquartered companies have developed therapies that treat patient populations of up to
265 million patients IN THE UNITED STATES
2 billion patients AROUND THE WORLD
page 27
Appendix
What’s in a Number?
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
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 Steele Vice President, Programs & Global Affairs Elizabeth.Steele@massbio.org
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