A look inside the Massachusetts Life Science Industry • Winter 2014-2015

VENTURE CAPITAL FUNDING PUBLIC OFFERINGS

© 2014 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

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www.cbre-ne.com

GREATER BOSTON BioView

SOURCES:

• Ernst and Young Beyond borders: unlocking value – Global biotechnology report 2014• MassBio Snapshot 2014

Life Sciences Group

• PwC Money Tree Report, August 2014• Bizjournals.com/Boston

PRE-CLINICALR&D Activities = Lab SpaceHigh volume of scientists (biochemistry; chemistry;

toxicology)

PHASE INo space needs changeAlways outsourced to

CROs. Preclinical is continuing in parallel

PHASE IIPaper Activities =

Office SpaceRegulatory, safety, clinical,

data mgmt., statistical

PHASE IIISignificant growth to support future

needs prior to FDA approval = Office Space

Office staffing increases to nearly 500 people per drug while preclinical work drops off

PHASE IVStaff transferred internally to upcoming

Phase II-III projects depending on pipeline = Reallocation of Space

Home-based sales force; marketing; business development

Staffing needs dependent on number of drugs in development. The more drugs, the more staff required.

CLINICAL DEVELOPMENT PROCESS & EMPLOYMENT

495

495

95

95

95

95

95

95

90

90

90

9090

95

95

95

95

93

93

93

93

93

293

93

93

495

190

190

495

495

495

495

290

290

395

395

395

395

2

128

128

128

128

128

24

3

3

3

3

24

24

9

99

9

2

22

2

3

3

1

1

1

1

1

1

1

146

146295

295

195

195

195

140

140

1

84

84

2

101

101

16

16

293

89

89

6

6

125

SalisburyAmesbury

W. Newbury

Newburyport

Newbury

Rowley

Ipswich

EssexHamilton

Manchester

Wenham

Danvers

PeabodyLynnfield

Wakefield

Saugus

Ston

eham

Melrose

MaldenRevere

Manchester

Concord

Nashua

Reading

N. Reading

Wilmington

Burlington

Concord

Sudbury

Framingham

Natick

Ashland

Holliston

Sherborn

Medway

Franklin

Wrentham

Plainville

N. Attleboro

Attleboro

Mansfield

EastonW. Bridgewater

E. Bridgewater

Bridgewater

Raynham

Taunton

Berkeley Lakeville

FreetownRochester

Marion

Wareham

Bourne Sandwich

Mashpee

Falmouth

Barstable

Middleborough

DightonRehoboth

Swansea

Fall River

Westport Dartmouth

New Bedford

Acushnet

Fairhaven

Seekonk

Brockton

Norton

Foxborough

Sharon

Stoughton AvonNorfolk

Walpole

Millis

Wellesley

Needham

Westwood

Norwood

Dedham Quincy

Randolph

Holbrook

Abington

Whitman

Hanson

Halifax

Plympton

Kingston

PlymouthCarver

Rockland Hanover

Pembroke

Duxbury

Marshfield

BraintreeWeymouth

Hingham

Norwell

Hull

Cohasset

Scituate

Milton

Canton

Dover

Medfield

Wayland Weston

Lincoln

Acton

MaynardStow

Hudson

Marlborough

Southborough

Westborough

Grafton

Northbridge

UxbridgeDouglas

Sutton

Millbury

Auburn

Oxford

WebsterDudleySouthbridge

Charlton

Sturbridge

HollandWales

Monson

Brimfield

BrookfieldWarrenPalmer

Ware

Hardwick

New Braintree

Oakham

Rutland

Barre

PetershamNew Salem

Philipston

Athol

Orange

WarwickRoyalston

Winchendon

Templeton

Gardner

Spencer

N. BrookfieldW. Brookfield

Leicester

Holden

Sterling

Princeton

Leominster

Fitchburg

Ashby

Ashburnham

Westminster

Hubbardston

W. Boylston

Paxton

Millv

ille

Blackstone

Cumberland

Lincoln

Central Falls

PawtucketN. Providence

E. Providence

BarringtonWarren

Bristol

Portsmouth

Tiverton

Little Compton

N. Kingston

E. GreenwichW. Greenwich

Exeter

Richmond

Voluntown

SterlingPlainfieldCanterbury

Putnam

Thompson

Pomfret

BrooklynHamptonChaplin

ScotlandWindham

Lebanon

FranklinSprague

Griswold

Preston

NorwichBozrah

Colchester

Salem

Columbia

CoventryMansfield

AshfordWillingtonTolland

Stafford

Eastford

Woodstock

Union

Middletown

Jam

esto

wn

Cranston

Woonsocket

N. Smithfield

Smithfield

Burrillville

Gloucester

FosterScituate

CoventryW. Warwick

Warwick

Upton

Milford

Hopedale

Mendon

Bellin

gham

Hopkinton

Bolton

Boylston

Shrewsbury

Northborough

Berlin

Carlisle

Billerica

Woburn

Arlington

Newton

Broo

kline

Medford

Salem

Swampscot

Nahant

Lynn

Marblehead

Beverly

Rockport

Gloucester

Merrimac

Haverhill

Groveland

N. Andover

Tewksbury

Lawrence

Methuen

Dracut

Lowell

Chelmsford

Tyngsborough

HudsonHollisBrookline

RindgeNew Iswich Mason

WiltonTempleSharon

Greenville

Hancock

Greenville

Francestown

Barrington

Antrim

Nelson

Stoddard

Sullivan

Gilsurn

Surrey

Alstead

AeworthLempster

GoshenUnity

Newport

Newbury

Bradford

Sutton

Warner

Webster

ChichesterEpsom

Pittsfield

Barnstead

Strafford

Farmington

Deerfield

Northwood

Allenstown

Barrington

RochesterBerwick

Wells

Kennebunk

York

Newington

S. Berwick

N. Berwick

Pembroke

Boscawen

Canterbury

Loudon

Marlow

Washington

Windsor

Hillsboro

Henniker

Deering

Peterborough

Jaffrey

FitzwilliamRichmond

Swanzey

Troy

Marlborough

Keene RoxburyHarrisville

Dublin Lyndeborough

New Boston

WeareDunbarton

Bow

Goffstown

Hooksett

Mount Vernon

Milford

Amherst

Bedford

Pelham

WindhamSalem

Atkinson

Exeter

Epping

Fremont Brentwood

Raymond

Candia

NottinghamLee Durham

Stratham

Greenland

Newmarket

Newfields

Madbury

Dover

Elliot

Kittery

Portsmouth

Rye

N. Hampton

HamptonHampton Falls

SeabrookHampstead

Derry

Auburn

Chester

Sandown DanvilleKingston Kensington

E. Kingston

Plaistow

Londonderry

LitchfieldMerrimack

Westford

Littleton

Boxborough

Harvard

Lancaster

DunstablePepperell

LunenburgShirley

Groton

Ayer

Townsend

Andover

Boxford

Topsfield

Middleton

Georgetown

Worcester

Providence

Bedford

Lexington

Waltham

Watertown

Boston

Cambridge

Route 128 West

Worcester/495

3.9 MSF

11.6 MSF

5.2 MSF

MAJOR LIFE SCIENCE CLUSTERS

For the first time since 2008, the Global IPO market experienced a flurry of biotech companies announcing an initial public offering —50 biotech companies debuted in 2013 raising $3.5B, a 300% increase from 2012 and the highest point since 2000.

Through October 2014, Massachusetts has seen 15 biotech companies go public, setting an annual record for the Commonwealth.

COMPANYAMOUNT RAISED

AKEBIA THERAPEUTICS $100M

TOKAI PHARMACEUTICALS $97.2M

ZAFGEN $96M

UNIQURE $91M

DICERNA PHARMACEUTICALS $90M

ELEVEN BIOTHERAPEUTICS $90M

SAGE THERAPEUTICS $90M

CONCERT PHARMACEUTICALS $84M

COMPANYAMOUNT RAISED

HISTOGENICS $65M

OCULAR THERAPEUTIX $65M

GENOCEA BIOSCIENCES $66M

FLEXION THERAPEUTICS $65M

CERULEAN PHARMA $59.5M

RADIUS HEALTH $52M

MINERVA BIOTECHNOLOGIES $32.7M

ALDEYRA THERAPEUTICS $12M

IPOs ACROSS THE UNITED STATES (2013-JULY 2014)

= Cambridge = Other MA Communities

37 24 9 6 5CALIFORNIA

MASSACHUSETTS

NEW JERSEY

PENNSYLVANIA

NEW YORK

Opens drug discovery lab at One

Kendall Square (2001)

Occupies over 315,000 SF at One

Kendall Square (2011)

Pfizer

20,000 SF

315,000 SF

Occupies 10, 12, 14 and 15

Cambridge Center

Completes two new buildings, 17 Cambridge Center & 225

Binney Street, adding 500,000+ SF, making its

Cambridge footprint 1+ MSF

Founded out of the Whitehead Institute for Biomedical Research

(MIT) (1998)

Square footage has grown to 300,000 SF

at 301 Binney Street

Moves headquarters

to Cambridge at 100 Tech Square (2002)

Employs 2,000 and occupies over 1 MSF

in Cambridge

O

600K

1.2M

Home-grown biotech company

resides at 26 Lansdowne Street

Completes construction of build-to-suit at 125 & 75 Binney Street, totaling

407,000 SF

98,000 SF

407,000 SF

567,000 SF

1,000,000 SF

40,000 SF

600,000 SF

20,000 SF

300,000 SF

138,000 SF

800,000 SF

250,000 SF

Early 2000s Today1,000,000 SF

800,000 SF

91,500 SF

Formerly Genzyme, builds

“Genzyme Center” at 500 Kendall (2000)

Sanofi acquired Genzyme and has 600,000 SF in Cambridge in addition

to its footprint in Framingham

Two Locations: Lab space at 75 Sidney and office space at 350 Massachusetts Avenue

In the midst of constructing a 250,000 SF build-to-suit

at 300 Mass Ave, making its Cambridge footprint 800,000+ SF

Has one lab location at

620 Memorial Drive

Completes 610 Main Street (cardiovascular, metabolic,

and endocrine diseases)

(230,000 SF)

Headquarters relocated and

construction begins at 65 Hayden Avenue in

Lexington, MA

Recently acquired by Merck; Currently

employs 900 and has five drugs in its

pipeline

100,000 SF

415,000 SF500,000 SF

TOP 5 MA VC FINANCINGS (2013 - 90 total biotech deals)

TOTAL LIFE SCIENCES INVESTMENT

$1.84B74%

$2.5B

BIOTECH

Q2 2014

Boston Venture Capital funding trails only San Francisco in total deal value raised.

DICERNA PHARMACEUTICALS

SERIES C • $60M

JOUNCE THERAPEUTICS

SERIES A• $47M

ZAFGEN

SERIES E • $45M

INTARCIA THERAPEUTICS

$200M

PROTEUS DIGITAL HEALTH

$119.5M

Even excluding these two deals, the biotech industry still jumped 40% in investment

dollars since the beginning of 2014.

TOP DEALS IN Q2 2014 - NATIONWIDE

BY LOCATION

$500M+

Growth in overall VC funding increased year-over-year in the second quarter of 2014 with 1,114 deals, totaling $13B. Year-over-year this represents an 11% increase in the number of deals and an 85% increase in value.

$400M invested in Cambridge-

based biotechsinvested in biotech companies

in other MA communities

MODERNA THERAPEUTICS

SERIES B • $110M

KARYOPHARM THERAPEUTICS

SERIES A, B • $67.2M

2.8 MSF

Moving HQ to Lexington Technology Park. Continues

to be a leader in global pharmaceutical

products

Acquired TKT in early 2000s and

absorbed their footprint at 28 Osborne

180,000 SF