Biotechnology Industry and Biotechnology Industry and Initiative UpdateInitiative UpdateEWD EDPACFebruary 3, 2011

Jeffery O’NealState Director - Biotechnology InitiativeEconomic and Workforce DevelopmentCalifornia Community Colleges

Biotechnology isAdvanced tools of biology used by many industries, new and traditional

Agricultural Pharmaceutical Environmental Energy Law enforcement Military

Law Enforcement/Military

CSI DNA typing of felons

Huge database

Military DNA typing of soldiers 911 and battlefield victims

Law Enforcement/Military/Environment

Plants that detect explosives and landmines “Sentinel Plants” Can react to levels 1/100th of what a dog can sniff.

Can detect explosives and toxic chemicals

Environment

Tracking endangered species by DNA typing Environmental clean up

Bacteria that “eat” oil spills Detection of pathogens in the

environment/food supply Rapid detection of “weaponized” microbes

Biotech in the Pharmaceutical Industry

US Data:  Of revenues from top-selling 100 drugs: 28% are biotech origin  Four of the top-selling 15 drugs are biotech origin, accounting

for 22% of revenues = $12.7 Billion, they are: 

Enbrel             $3.4B    Protein          Rheumatoid arthritis, psoriasis  Neulasta         $3.1B   Protein    Boost white blood cells when doing

chemo Epogen            $3.1B    Protein     EPO-alpha: boost red blood cells in

chronic renal failure Remicade         $3.1B    MAb        Rheumatoid arthritis, psoriasis, Crohn's

Disease  

Agriculture

(0 88% of Cotton91% of Soybean85% of Corn

•California is on the leading edge due to creating CIRM (proposition 71)

•Many companies relocated to California or established an office here

“I’m a big believer in stem cell research. This revolutionary science has the potential not only to improve the human condition, but it can also improve California’s economy.”

Former GOVERNOR ARNOLD SCHWARZENEGGER

By 2010, a recent economic study projects CIRM’s funding will have generated at least an additional $100 million in new tax revenue for the state.

Stem Cell Research in California

Regenerating nerve/brain tissueSpinal cord injuriesParkinson’s diseaseAlzheimer’s disease

Regenerate muscle tissueHeart muscle tissue damaged by heart attack

Regenerate other specialized cells such as Pancreas and kidney cells Blood cells in people compromised due to chemotherapyBone growth for void fill and non-union fractures

Stem Cell Therapies Under Development

Stem Cell Therapies

Beating heart cells

Regenerated nerve cells

Personalized Medicine

(Pharmacogenomics) Medicines selected based on your genetic profile Less trail and error, less problem with adverse

drug reactions Clarinex vs Allegra

Considered a high growth technology Personal genomics companies

Get you genetic profile for as little as $500 Google and Microsoft investing heavily in this

technology

BIOTECHNOLOGY AS A CALIFORNIA EMPLOYMENT ENGINE

CHI Biomedical Industry Report 2011

“Biotechnology Lags Only Computers as California’s Largest Technology Employer”

Has Suffered Less in Recent Downturn

First recent employment drop, by 4% from 2009 to 2010

Biotechnology Lags Only Computers as California’s Largest Technology Employer; Has Suffered Less in Recent Downturn

-

50,000

100,000

150,000

200,000

250,000

300,000

275,615 273,559

163,392 159,306

117,539 73,135

California Employment by Technology Sectors 2008

% Change March 2008 to March 2009:

NA -0.9% -7.6% -5.3% -5.2% -1.0%California Healthcare Institute, PriceWaterhouse Coopers:California Biomedical Industry 2010 Report

Biotechnology is a Major Driver of California Employment—Influencing up to 4% of the State’s Workforce

Two data sources: California Healthcare Institute & PriceWaterhouseCoopers Battelle/BIO State Bioscience Initiatives 2010

California Healthcare Institute/Price Waterhouse

Coopers Battelle/BIO

Total Estimated Employment 2008 274,000 221,096

Average Annual Wage per Employee 2008 75,000$ 93,149$

Estimated Part- or Full-Time CA Workers Employed Because of Life Science Industry 2008 (Multiplier) 783,000 866,363

2011 California Biomedical Industry Report

Eighty percent of biomedical company CEOs in California report that their companies have been courted by other countries, state governments or regional economic development associations in the past year, according to survey findings included in the 2011 California Biomedical Industry Report, published today by the California Healthcare Institute, BayBio and PwC.

Sixty-seven percent of CEO respondents said that within five years, another country could conceivably recreate the ecosystem that has made the U.S. the leading biomedical region in the world.

Sixty percent believe that another state could recreate the ecosystem that has made California the leading biomedical region in the U.S.

Yet the survey found surprising consensus of confidence in the state's ongoing attractiveness to the biomedical industry, with many CEOs planning to increase jobs, manufacturing, research and development operations within California versus elsewhere.

2011 California Biomedical Industry Report

For the first time in the report's 17-year history, nearly twice as many biomedical CEOs said they intend to increase manufacturing within California (41 percent) versus outside the state (21 percent) over the next two years.

Sixty-eight percent of CEOs said they expected to expand the overall size of their workforce within California, while only 31 percent planned to increase workforce levels outside the state.

Seventy-eight percent of CEOs surveyed said that they maintained or expanded R&D operations within California over the past year, and 88 percent plan to do so over the next two years.

The key reasons cited for locating in California were the availability of a highly skilled, entrepreneurial workforce and California's culture of innovation, anchored by leading research universities.

The Biotechnology Initiative

Economic and Workforce Development Program California Community Colleges

Biotechnology InitiativeCurrent structure

Four centers around the state San Diego – Miramar College LA/Orange – Pasadena City College SF Greater Bay Area – Ohlone College Sacramento – American River College

Statewide Initiative Director, and two Hubs Expanding affiliate centers? – College of Canyons, Fullerton

College

Primary Goals of the Biotechnology Initiative

Direct Services to Industry Serve the industry with quality training and technical

assistance

Capacity Building Assist the colleges to develop and maintain capacity to

deliver training, and improve their responses to advances in technology and shifting industry needs

Career Pathway Improvement Help build the pipeline of workers/students interested in

careers in the biotechnology industry

Regional Biotechnology Centers vs Local Colleges Biotechnology Initiative Centers

Workforce development Direct training to incumbent industry workers

Often short courses for a specific skill upgrade Develop and encourage model programs

Innovative curriculum development Faculty development

Workshops for faculty Improving Career Pathways – outreach to k-12

Local Community Colleges Student courses – pre-service (typically for credit) Local workforce development

Biotechnology Centers Services 08-09 fiscal yr

742 employers received services by the Centers

Over 126 specialized training events (industry focused)

Over 15,000 high school students participated in laboratory experiences

California Community Colleges

110 community colleges

27 Colleges with degree programs or certificates in biotechnology

23 Colleges offering stand-alone biotech courses

www.cccbiotech.org

Programs Respond to Local Workforce Needs

Biomanufacturing focused programs Solano, Ohlone, CCSF

General laboratory skills American River, San Diego Miramar

Stem cell culture Pasadena City, CCSF

Number of Students in Biotech Programs is Growing

Near Term Pay for Biotech Graduates One year after graduation median income for biotech

students rank 16th of 95 fields (2002-2003 academic year)

$39, 275 - Biotechnology and Biomedical Technology $29,494 - Median for all fields (for 95 fields of study)

Biotech salaries typically in top 20% of cc grads

Issues of Transparency to Business

Often descriptions of programs not there or buried on campus web sites Some listed under Biotech, some under

Biological Sciences Not always clear what skill sets students learn Message often tailored to student

www.cccbiotech.org

One Portal to Access Biotechnology Training at Community Colleges

All Colleges listed on website Description of program Link to college web site

Specific buttons/messages for industry, faculty and students

www.cccbiotech.org

Create Community with Faculty Around the State

“All Hands” meetings North and South Exchange ideas, best practices, technology

updates – industry speakers Sponsor CC faculty at CSU conference and

other networking events –Personalized Medicine World Conference

Webinar series for faculty on topics of interest and research results Launching this month

Biomanufacturing

Pasadena Biosciences Incubator

Operated by the community college in collaboration with the city of Pasadena Incubated 16 companies with 5 successful

‘graduates’

Pasadena Biosciences Incubator Expansion

To 10, 000 sg ft in 2010 -new 2011 expansion planned

Exemplary Programs

LA Trade Tech College – ARRA fundedFast track to work In collaboration with local WIBs - Process technician

Five weeks at the colleges 10 to 15 week paid internship at company Students screened by WIB

Targeting displaced workers First cohort

100% completion - 30 started - 30 completed Many placed

60 now in the pipeline

Exemplary Programs

San Diego Accelerated Program - ARRA Accelerated Biotech Program with bridge for

displaced and underemployed workers. Three semester program, in collaboration with WIB.

First cohort graduated this spring 60% have found full-time jobs

One employer asked for more graduates

Lori – formerly homeless, single mother

Exemplary Programs

Displaced Nummi workers to Ohlone College programWorking in collaboration with local WIBs and job counselors from Nummi

Variety of local companies interested in graduates

Hosted Senate Select Committee on Biotechnology hearing on workforce in October

UC, CSU and CC testified – facilities tour and conversation with students

Exemplary Programs

Exemplary Programs

Challenges

Biotechnology programs are expensive Increasing pressure to increase enrollments or

run less expensive classes Students are often underprepared

Two thirds of students entering California community colleges assess below college level in Math, English or both.

Summary

A number of colleges around the state offer biotechnology courses or programs

Biotechnology enrollments are growing Biotechnology graduates tend to earn more than

average for all cc graduates Local programs respond to local workforce needs There is increasing pressure on biotechnology

programs due to the expense and relatively lower enrollments.

The Economic and Workforce Development Program Mission:

We invest in California's economic growth and global competitiveness through industry-specific education, training and services that contribute to a highly skilled and productive workforce.

Ten Initiatives Important to California’s economic growth www.cccewd.net