community update 12.12

Community Update12.12.14

© LifeScience Alley 2014 2

LifeScience Alley is…

Improving the operating environment for life science companies

The largest state-based trade association serving the life sciences in the U.S.

Nearly 700 members, in industries employing more than 300,000 people


Leading the conversation with…

Public PolicyInformation & Intelligence

Member Service


More than 10,000 referrals and introductions per year Training & networking to

foster community growth and professional

development

Facilitating industry-level problem solving in a neutral environment

Member Service


Thought leadership gatherings

Organizing research around community/industry needs

Delivering actionable information & intelligence to business leaders

Information & Intelligence


Removing barriers to your industry

Coordinating with industry partners

A solutions-based agenda for shaping policy to benefit the life sciences

Public Policy


Discount Purchase Program


INDUSTRY NUMBERS & TRENDS

OUR COMMUNITY


Minnesota Community by the #’s

• Overall 48,000 jobs, 1,600 companies

• #1 per capita and #2 overall medical device cluster in U.S.

• Large and Growing diagnostics cluster in U.S.

• Rapidly growing bio/pharma cluster 54% last 10 years


Employment Trends: Flat/Slightly Up

• Industry bottom Q3 2009

• Q3 2011 back to pre-recession high

• Stability in largest device firms, growth in medium and startup


Minnesota and National Medtech Job Change

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

0

0.2

0.4

0.6

0.8

1

1.2

0 0 0 0 0

1

0 0 0 0

Series1 Series2


2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20130

10

20

30

40

50

60

1718

1112

18

1415

52

44

2827

35

48

35

New Companies

New Life Science Company Formation by Year source: MN DEED/QECW


MN Medical Device Average Annual Wage

20092010

20112012

20132014

$80,130.36 $86,195.19 $86,773.32 $87,928.86$97,505.94


Device Employment Growth ‘02-’12• Minnesota: 18.8%

• Massachusetts: 1.8%

• California: 1.2%

• Texas: -10.4%


• Minnesota: 58%

• California: 11%

• Texas: 11%

• Massachusetts: 8%

Biopharma Employment Growth ‘02-’12


Investment Trends: Improving

2009 2010 2011 2012 2013 2014 YTD0

50

100

150

200

250

300

350

400

450

320

221

264

215

332

393


OPPORTUNITIES FOR GROWTH

THE MINNESOTA MARKETS


Historical growth in Minnesota has been driven by these sectors:

• Cardiac Rhythm Management• Vascular (cardio, endo, peripheral)• Orthopedic

Core/Mature Markets


Future growth will be driven by emerging markets:

• Neuromodulation• Drug delivery• Cell therapy • Diagnostics• Health IT

Emerging Markets


• Reduces risk of disruption to established cluster

• Evolving health care marketplace will demand new types of innovation

Minnesota has a multi-decade history and world leading companies already.

Why does diversification matter?


Pharmaceutical industry is growing rapidly; nearly 5,000 employees:

• Major firms Upsher-Smith, Perrigo, ANI Pharmaceuticals, Bio-Techne/R&D Systems

• Device-based drug delivery is growing

• CNS Strength aligns drug and device sector (neuromod) in MN.

Growth of Bio/Pharma


Minnesota has leadership potential in regenerative medicine:

• Major firms National Marrow Donor Program, Biovest, ATMI, Baxter, Mayo Clinic & University of Minnesota

• Bridges medical device and biotechnology

Regenerative Medicine/Cell Therapy


Value of diagnostics is rapidly increasing:

• Major firms Beckman Coulter and DiaSorin

• Draws on engineering, chemistry, and biology skill set in the state

Diagnostics


“The Valley knows tech but not healthcare.

Boston Knows healthcare but not tech.

Only Minnesota has both.”

– Local Health IT CEO

Health IT/Services


Already large cluster, needs to establish identify

• Major firms Optum, Wolters Kluwer, McKesson, Ability Networks

• Low capital intensity = ease of startup

• Attracting interest from coastal VC’s

Health IT/Services


Major payor and provider organizations + consumer expertise

• Minnesota is unique: Mayo, UHG, Target

• Large tech industry – Oracle, IBM, Microsoft and startups

Health IT/Services


Major challenges:

• Moving out of medtech shadow

• Translating good ideas into purchased products

Health IT/Services


EMERGING TRENDSTrends


OUR WORK TO SUPPORT YOUR SUCCESS

OPERATING ENVIRONMENT


Slow device approval process harms Minnesota more than anywhere:

• Highest per capita # medtech employees• Highest per capita PMA filings

In response LifeScience Alley led the effort to create the Medical Device Innovation Consortium (MDIC).

www.MDIC.org

FDA Reform


Minnesota is responsible for ~25% of the tax:

• MN delegation united in repeal (only state)• Opportunity in broader tax reform

discussion• Need your continued involvement

LifeScience Alley is leading efforts toward repeal.

Medical Device Tax


Our community has challenges and opportunities, like any other.

LifeScience Alley is committed to leading the conversation in

improving your environment so that your work can be more

successful.

How We Can Help


“There are few places in the world like Minnesota, where

entrepreneurs, doctors, business leaders, government officials, professors, and others have done so much together to advance mankind’s ability to take care of itself. This comes from a rare willingness on the part of our scientists and hospital directors to work with industrial leaders and entrepreneurs to innovate and launch new medical products and systems that result in healthcare cost reduction for the world.”

- Lee Berlin, Founding Chairman, LifeScience Alley in 1984

30 Years Later

community update 12.12

Documents

lifescience alley

community growth

minnesota markets

minnesota community

device employment growth

future growth

historical growth

biopharma employment