the biotechnology enterprise the state of the industry · biotech industry vital statistics 4...
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The Biotechnology EnterpriseThe Biotechnology Enterprise
The State of the IndustryThe State of the Industry
Edward Penhoet, Ph.D.
Dean, School of Public HealthUniversity of California at Berkeley
Founder, Chiron Corp.
November 17, 2000
State of the Industry_2000 21 University of California, Berkeley
The Biotechnology Enterprise
The Benefits of BiotechnologyThe Benefits of Biotechnology
Vital Statistics/Industry TrendsVital Statistics/Industry Trends
Blurring of the Borders Between Biotech and PharmaBlurring of the Borders Between Biotech and Pharma
Geographical ClusteringGeographical Clustering
Universities Remain the Driver for BiotechnologyUniversities Remain the Driver for Biotechnology
Information and the Customization of MedicineInformation and the Customization of Medicine
Healthy Long-Term OutlookHealthy Long-Term Outlook
State of the Industry_2000 22 University of California, Berkeley
Benefits of Biotechnology
4 A virtually safe blood supply
4 Cure for anemia
4 Reduced spread of hepatitis
4 Saving lives after heart attacks
4 Slowing the progression of multiple sclerosis
4 Better quality of life for diabetics
4 Longer life for cancer patients
4 Reducing the Debilitating Effects of Rheumatoid Arthritis
4 Slowing the Progression of HIV Infection
4 Improved outcomes for Chronic Hepatitis C
State of the Industry_2000 23 University of California, Berkeley
The Biotechnology Enterprise
The Benefits of BiotechnologyThe Benefits of Biotechnology
Blurring of the Borders Between Biotech and PharmaBlurring of the Borders Between Biotech and Pharma
Geographical ClusteringGeographical Clustering
Universities Remain the Driver for BiotechnologyUniversities Remain the Driver for Biotechnology
Information and the Customization of MedicineInformation and the Customization of Medicine
Healthy Long-Term OutlookHealthy Long-Term Outlook
Vital Statistics/Industry TrendsVital Statistics/Industry Trends
State of the Industry_2000 24 University of California, Berkeley
Biotech Industry Vital Statistics
4 Market capitalization of the biotechnology industry at the endof 1999 was $312 billion
4 1999 estimated sales of all biotech products Ñ $18 billion
4 1999 sales by biotech industry Ñ $13.4 billion
4 $9.9 billion spent on research in 1998
4 Top five biotech companies spent $121,400 per employee onR&D compared with $30,600 at the top five pharma companies
Source: Biotechnology Industry Organization.
State of the Industry_2000 25 University of California, Berkeley
Biotech Industry Vital Statistics
4 U.S. continues to dominate
4 1,283 biotechnology companies
4 373 publicly-traded biotechnology companies
4 Total employees: Greater than 150,000
Source: Biotechnology Industry Organization.
State of the Industry_2000 26 University of California, Berkeley
Four Generations of Biotechnology Products
4 Recombinant DNA
¥ Insulin, hGH, EPO, αÐ, βÐ and γ-interferon, IL-2, t-PA, PDGF,vaccines etc.
4 Monoclonal antibodies
¥ ReoPro, Rituxan, Herceptin etc.
4 Small molecule compounds
¥ Viracept, Agenerase etc.
4 Gene therapy
State of the Industry_2000 27 University of California, Berkeley
Biotech Products Two Decades of Progress
InsulinGrowthHormone I
α-InterferonOKT3Antibody
Hepatitis BV vaccine I
IntegrilinRefludanProvigilThyrogenVitravene
EnbrelHerceptinLYMErixRemicadeRotaShieldSimulectSynagisThymoglobulin
DepocytLuxiqNeoTectTamifluTargretinUnadex
HextendNabi-HBNovoSevenOntakWellferon
Pre-1986 1986 1998 1999. . . . . . . . . . . . . . . . . . .
TPAEPOHCV TestGCSFIL-2DNAseβ-Interferon
State of the Industry_2000 28 University of California, Berkeley
Biotech Industry Trends Sales Increase
Top Five U.S. Biopharmaceutical Companies by Worldwide SalesTop Five U.S. Biopharmaceutical Companies by Worldwide Sales
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
1997 1998 1999
U.S.($ Millions)
Source: Sales figures; Burrill & Company.
Amgen
Genentech
Chiron
GenzymeBiogen
State of the Industry_2000 29 University of California, Berkeley
Biotech Industry Trends Valuations Increase
Top 10 Biopharmaceutical Companies Ranked byMarket Capitalization
Top 10 Biopharmaceutical Companies Ranked byMarket Capitalization
U.S.($ Billions)
Source: Market cap figures; Burrill & Company.
$0
$10
$20
$30
$40
$50
$60
$70
1997 1998 1999
Amgen
GenentechImmunex
Biogen
MedimmuneChiron
MillenniumAffymetrix
IDEC Pharma
HGS
State of the Industry_2000 30 University of California, Berkeley
Biotech Industry Trends Submissions to FDA Increase
Biotech INDs/IDEs Compared to TotalBiotech INDs/IDEs Compared to Total
0
100
200
300
400
500
600
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Total INDs/IDEs Received
Biotech INDs/IDEs
Source: CBER; Burrill & Company.
State of the Industry_2000 31 University of California, Berkeley
The Biotechnology Enterprise
The Benefits of BiotechnologyThe Benefits of Biotechnology
Vital Statistics/Industry TrendsVital Statistics/Industry Trends
Geographical ClusteringGeographical Clustering
Universities Remain the Driver for BiotechnologyUniversities Remain the Driver for Biotechnology
Information and the Customization of MedicineInformation and the Customization of Medicine
Healthy Long-Term OutlookHealthy Long-Term Outlook
Blurring of the Borders Between Biotech and PharmaBlurring of the Borders Between Biotech and Pharma
State of the Industry_2000 32 University of California, Berkeley
Blurring of the Borders Between Biotech and Pharma
Pharma companies become lifePharma companies become lifesciences companiessciences companies
We are committed to providinganswers that matter in medicine,life sciences and healthcare.
American Home ProductsCorporation is a global leader invaccines, biotechnology, andanimal health care.
AVENTIS PHARMA.AVENTISÑA new world leader
State of the Industry_2000 33 University of California, Berkeley
Genzyme
Gilead
MedImmune
Cephalon
Blurring of the Borders Between Biotech and Pharma
Biotech companies become fullyBiotech companies become fullyintegratedintegrated
Genentech
Amgen
Chiron
Immunex
Biogen
State of the Industry_2000 34 University of California, Berkeley
Blurring of the Borders Between Biotech and Pharma
4 Combinatorial chemistry now deployed broadly
¥ Affymax, Alanex etc.
4 Small molecule capabilities in biotech companies
¥ Chiron, Vertex, Biogen, Pharmacopeia, Axys etc.
4 Pharma companies relying more heavily on biotech partnerships
4 Pharma companies investing in internal protein therapeuticsdevelopment
4 Pharma companies become life science companies
State of the Industry_2000 35 University of California, Berkeley
The Biotechnology Enterprise
The Benefits of BiotechnologyThe Benefits of Biotechnology
Vital Statistics/Industry TrendsVital Statistics/Industry Trends
Blurring of the Borders Between Biotech and PharmaBlurring of the Borders Between Biotech and Pharma
Universities Remain the Driver for BiotechnologyUniversities Remain the Driver for Biotechnology
Information and the Customization of MedicineInformation and the Customization of Medicine
Healthy Long-Term OutlookHealthy Long-Term Outlook
Geographical ClusteringGeographical Clustering
State of the Industry_2000 36 University of California, Berkeley
Biotechnology Reliant on Local Resources, especially Research Universities
Picture source: http://www.pigparadise.com/
State of the Industry_2000 37 University of California, Berkeley
Geographical Clustering
State of the Industry_2000 38 University of California, Berkeley
California Has Most Developed Cluster of Biotech Companies
4 California leads the nation with greater than 33% of allbiotechnology companies
4 California biotech companies account for 45,000 highly-skilledjobs at an average salary of $65,800
4 California universities, federal laboratories, and privateinstitutions account employ an additional 41,000 people
4 80% of California biotech companies plan to expand in the nexttwo years
4 88% of biotech companies anticipating growth intend to grow inCalifornia
State of the Industry_2000 39 University of California, Berkeley
Pharmaceutical Companies Seek to Capitalize on California Biotechnology
4 Novartis founds Novartis Research Institute in San Diego
4 Novartis takes major equity stake in Chiron
4 Roche heavily invested in Roche Biosciences as well asGenentech
4 Pfizer heavily invested in Agouron and Gene Networks throughParke-Davis/Warner Lambert acquisitions
4 Merck acquires Sibia
4 Bayer locates Worldwide Biotech Headquarters in Berkeley
State of the Industry_2000 40 University of California, Berkeley
The Biotechnology Enterprise
The Benefits of BiotechnologyThe Benefits of Biotechnology
Vital Statistics/Industry TrendsVital Statistics/Industry Trends
Blurring of the Borders Between Biotech and PharmaBlurring of the Borders Between Biotech and Pharma
Geographical ClusteringGeographical Clustering
Information and the Customization of MedicineInformation and the Customization of Medicine
Healthy Long-Term OutlookHealthy Long-Term Outlook
Universities Remain the Driver for BiotechnologyUniversities Remain the Driver for Biotechnology
State of the Industry_2000 41 University of California, Berkeley
Intellectual Assets, Capital, and Infrastructure Drive Biotech Clusters
4 Universities essential for biotechnology growth
¥ Nearly one-third of Bay Area biotech companies are spin-offs from academic research institutions
¥ Two-thirds of Bay Area biotech companies have researchagreements with California academia
¥ Universities continue to train skilled scientific personnel
State of the Industry_2000 42 University of California, Berkeley
Bay Area Biotechs Founded by University Faculty & AlumniBay Area Biotechs Founded by University Faculty & Alumni
Universities Essential to Biotechnology
0
10
20
30
40
50
60
70
Stanford UC-SanFrancisco
UC-Berkeley
UC-Davis LawrenceBerkeleyNational
Labs
UC-SantaCruz
Source: California Healthcare Institute; San Jose Mercury News, February 10, 2000.
State of the Industry_2000 43 University of California, Berkeley
Molecular Engineering at Berkeley An interdisciplinary approach
Molecular Biology
Physics
Chemistry
Bioengineering
State of the Industry_2000 44 University of California, Berkeley
Biomedical & Health Sciences An Integrated Approach
Public Health
Molecular and Cell Biology
Genomics
Neuroscience
Cancer Research
State of the Industry_2000 45 University of California, Berkeley
Neuroscience The Final Frontier of Modern Biomedicine
Geneticists, psychologists,vision scientists, computerscientists, and other expertsworking together tounderstand the brain
State of the Industry_2000 46 University of California, Berkeley
The Biotechnology Enterprise
The Benefits of BiotechnologyThe Benefits of Biotechnology
Vital Statistics/Industry TrendsVital Statistics/Industry Trends
Blurring of the Borders Between Biotech and PharmaBlurring of the Borders Between Biotech and Pharma
Geographical ClusteringGeographical Clustering
Universities Remain the Driver for BiotechnologyUniversities Remain the Driver for Biotechnology
Healthy Long-Term OutlookHealthy Long-Term Outlook
Information and the Customization of MedicineInformation and the Customization of Medicine
State of the Industry_2000 47 University of California, Berkeley
Explosive Development of New Information
4 Human Genome project
4 Genetic analysis of disease
4 Pathological mechanisms
4 Gene expression in normal and pathological states
¥ New metrics
¥ Diagnostic and therapeutic monitoring
¥ Gene therapy
State of the Industry_2000 48 University of California, Berkeley
Individualized Information and Metrics Will Drive Clinical Practice
Optimized andCustomizedPrevention &
Treatment
Genetic Profile
Genetic Expression
Infectious AgentGenodynamics
Immune Competence
Social/Family Data
Epidemiological Data
State of the Industry_2000 49 University of California, Berkeley
Data Mining, Informatics, and Information Portals Fuel Better Targeting ofMedical Advances
4 Celera, Gene Logic, Incyte, etc.Data Mining andInformation
4 NetGenics, DoubleTwist, etc.Bioinformatics Software
4 Affymetrix, Caliper, ACLARA, Orchid, etc.Tool Companies
4 Millennium, HGS, Axys ÐPPGx etc.Pharmacogenomics
The Internet
State of the Industry_2000 50 University of California, Berkeley
The Biotechnology Enterprise
The Benefits of BiotechnologyThe Benefits of Biotechnology
Vital Statistics/Industry TrendsVital Statistics/Industry Trends
Blurring of the Borders Between Biotech and PharmaBlurring of the Borders Between Biotech and Pharma
Geographical ClusteringGeographical Clustering
Universities Remain the Driver for BiotechnologyUniversities Remain the Driver for Biotechnology
Information and the Customization of MedicineInformation and the Customization of Medicine
Healthy Long-Term OutlookHealthy Long-Term Outlook
State of the Industry_2000 51 University of California, Berkeley
Positive Trends for Biotechnology
4 High visibility in Washington
¥ Expanded funding for NIH
¥ New FDA guidelines for biologicals
¥ Continued pressure for accelerated drug approvals
4 Consolidation of healthcare purchasing and testing
¥ Less infrastructure required for effective marketing
4 Increasing awareness and activism about personal health issues
¥ Concern over infectious diseases
¥ Employer recognition for value in prevention
¥ Premium for reduction of risk
¥ Third largest use of the Internet
4 Baby boomers have both money and political clout to sustainquality of life
State of the Industry_2000 52 University of California, Berkeley
Biotechnologies for the 21st Century
4 Genetic analysis4 Expression Analysis
Diagnostics
4 Therapeutic vaccines for cancer and infectiousdiseases
ImmunoTherapy
4 Explosion of new targets for drug discoveryGenomics
4 DNA¥ Direct transfer¥ Vector mediated¥ Live virus
Nucleic AcidTherapy GeneTherapy
4 RNA¥ Anti-sense¥ Ribozymes¥ RNA ligands
4 Nervous system repair4 Immune reconstitution
Cell-BasedTherapies
4 Tissue regeneration
Pharmaco-genomics
4 Customization of medicine4 Rational patient selection for clinical trials
Proteomics 4 High-throughput validation of gene products
4 Integrated therapies
The Biotechnology EnterpriseThe Biotechnology Enterprise
The State of the IndustryThe State of the Industry
Edward Penhoet, Ph.D.
Dean, School of Public HealthUniversity of California at Berkeley
Founder, Chiron Corp.
November 17, 2000