massbio industry snapshot 2017files.massbio.org/file/massbio-industry-snapshot-2017.pdf · 10 and 1...

Industry Snapshot 2017

with support from

Massachusetts BioPharma Industry Employment

Industry jobs grew by 28% in the last 10 years and by4.8% since2016.

Source: Privately owned companies, U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW); MassBio

51,51854,280 54,829 55,342 56,097 56,461 57,643

60,45963,026

66,053

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

28% growth over 10

years

Massachusetts has more employment classified as Biotechnology Research and Development than any other state.

Biotech R&D employment grew by 9% in 2016.

Source: Privately owned companies, U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW)

10 and 1 Year Employment: Biotech Research & Development

2007 2015 2016

10 Year

Growth

(2007 - 2016)

1 Year

Growth

(2015 - 2016)

Massachusetts 24,565 31,469 34,366 40% 9%

California 19,134 29,616 34,212 79% 16%

New Jersey 8,567 13,799 14,065 64% 2%

Pennsylvania 15,902 10,453 12,493 -21% 20%

Maryland 10,154 8,003 8,688 -14% 9%

North Carolina 7,042 7,804 8,511 21% 9%

New York 2,679 5,571 6,291 135% 13%

Texas 4,229 4,689 4,929 17% 5%

Missouri 4,262 3,595 3,939 -8% 10%

Washington 2,499 3,430 3,779 51% 10%

Illinois 2,403 3,435 3,057 27% -11%

Florida 737 2,760 2,883 291% 4%

Michigan 4,670 2,751 2,737 -41% -1%

Delaware 0 2,891 2,594 n/a -10%

Ohio 2,696 3,616 2,545 -6% -30%

10 and 1 Year Employment: BioPharma Manufacturing

Massachusetts biopharma manufacturing has grown by 12.3% since 2007.

In the same period, the biomanufacturing jobs in the US as a whole declined by more than 20,700, a 6.5% decrease.

Source: Privately owned companies, U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW)

2007 2015 2016

10 Year

Change

(2007 - 2016)

1 Year

Change

(2015 - 2016)

California 43,971 47,986 50,456 15% 5%

New Jersey 42,256 22,353 22,846 -46% 2%

North Carolina 19,224 21,684 20,656 7% -5%

Illinois 18,654 19,662 20,102 8% 2%

New York 21,731 19,176 19,504 -10% 2%

Pennsylvania 22,107 17,698 17,885 -19% 1%

Indiana 19,525 17,455 17,862 -9% 2%

Puerto Rico 24,551 13,749 14,921 -39% 9%

Texas 9,904 11,140 11,652 18% 5%

Massachusetts 9,139 10,616 10,264 12% -3%

Michigan 8,255 8,686 8,429 2% -3%

Maryland 6,220 7,277 7,247 17% 0%

Utah 4,566 6,252 6,590 44% 5%

Florida 5,077 4,996 5,741 13% 15%

Missouri 5,204 5,194 5,600 8% 8%

Total US 317,178 290,472 296,408 -7% 2%

Largest BioPharma Industry Employers in Massachusetts, 2017

Sources: MassBio Membership Reports & Surveys; Boston Business Journal Book of Lists, 2017

Sanofi Genzyme continues to be the largest employer in the industry in Massachusetts.

Rank Company Employees

14 Alkermes 656

15 Sunovion Pharmaceuticals 602

16 Alnylam 608

17 Foundation Medicine 600

18 Merck 600

19 Moderna 550

20 Amgen 500

21 GE Healthcare Life Sciences 471

22 Tesaro 415

23 AstraZeneca 400

24 Bristol-Myers Squibb 400

25 Ironwood 375

Rank Company Employees

1 Sanofi Genzyme 5,000

2 Shire 3,040

3 Biogen 2,443

4 Novartis 2,333

5 Pfizer 2,200

6 Takeda 2,000

7 Vertex 1,600

8 Quest Diagnostics 1,550

9 Charles River Laboratories 1,446

10 MilliporeSigma 1,300

11 Parexel International 1,125

12 EMD Serono 1,039

13 AbbVie 911

66,414 employees

$138,768 average annual wage

$9,216,168,893 total MA-based wages

Source: Private sector, U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW)

BioPharma Economic Impact, 2016

2008

Sources: Colliers Meredith & Grew, Life Science Review, 2007-2015; CBRE 2016-2017

2017

28.2 million square feet

16.7 million square feet

New facilities in 2017

Over 11 million square feet of commercial lab space has been added to Massachusetts in the last ten years, an increase of 68%.

Arsenal Street, Watertown

Hartwell Ave, Lexington

Life Sciences Lab Inventory Growth

Industry Geography

The immediate western suburbs include 75+ biotech companies,

15 colleges, 3 million s.f. of lab space.

128/Suburbs

50+ biotech companies, WPI, UMass-Worcester, and 16

other colleges.

Worcester/I-495

50+ biotech companies, 2 million+ s.f. in lab space, UMass-Lowell and 11 other

colleges.

Northeast

Home of UMass-Amherst and 21 other colleges. Area known as The Knowledge

Corridor.

West

Strong med device and biopharma manufacturing

capacity, with numerous land sites in BioReady® communities

and 10 colleges.

South Coast

250+ biotech companies, the top 4 NIH-funded hospitals

in the U.S., and 48 colleges.

Boston-Cambridge

The life sciences industry continues to grow across the Commonwealth.

Source: MassBio Membership Reports

Investment in the Industry

Top NIH-Funded States:by Total Funding and Per Capita, 2016

Massachusetts continues to outpace other states in terms of NIH funding per capita, and ranks second in total NIH dollars.

Source: NIH, Research Portfolio Online Reporting, U.S. Census Bureau

Total FundingFunding Per Capita

State Funding

California 3,686,026,589$

Massachusetts 2,572,549,176$

New York 2,205,949,608$

Pennsylvania 1,570,151,520$

Maryland 1,465,624,060$

North Carolina 1,154,347,750$

Texas 1,097,661,190$

Washington 952,837,210$

Il l inois 818,027,921$

Ohio 734,159,508$

US 24,592,574,895$

Top NIH-Funded Independent Hospitals, 2016

Source: NIH, Research Portfolio Online Reporting

Five of the top 6 NIH-funded independent hospitals are in Massachusetts.

Please note: NIH lists university-operated hospitals separately.

Organization City State Awards Funding

Massachusetts General Hospital Boston MA 796 364,981,379$

Brigham and Women's Hosptial Boston MA 570 349,521,979$

Vanderbilt University Medical Center Nashville TN 459 241,415,324$

Children's Hospital Corporation Boston MA 331 147,762,034$

Beth Israel Deaconess Medical Medical Center Boston MA 256 132,229,333$

Dana-Farber Cancer Institute Boston MA 217 128,050,993$

Cincinnati Children's Hospital Medical Center Cincinnati OH 267 111,850,379$

Children's Hospital of Philadelphia Philadelphia PA 201 111,253,000$

St. Jude's Children's Research Hospital Memphis TN 99 71,090,742$

Seattle Children's Hospital Seattle WA 102 50,107,892$

Cedars-Sinai Medical Center Los Angeles CA 107 47,454,095$

New York State Psychiatric Institute New York NY 99 42,984,276$

National Jewish Health Denver CO 56 32,869,336$

Rhode Island Hosptial Providence RI 76 29,152,940$

McLean Hospital Belmont MA 74 27,927,109$

Roswell Park Cancer Institute Corporation Buffalo NY 73 27,887,985$

Boston Medical Center Boston MA 67 27,152,542$

Children's Hospital of Los Angeles Los Angeles CA 41 20,236,544$

Massachusetts Eye and Ear Infirmary Boston MA 47 19,813,390$

Tufts Medical Center Boston MA 38 19,794,122$

Top Massachusetts NIH-Funded Non-Profits, 2016

Massachusetts non-profits are significant recipients of NIH funding.

Organization Awards FundingHarvard Medical School 373 195,160,545$

University of Massachusetts Medical School 344 153,892,824$

Boston University Medical Campus 254 135,953,012$

Harvard School of Public Health 183 123,090,691$

Massachusetts Institute of Technology 243 107,764,386$

Broad Institute, Inc. 70 101,382,185$

Harvard University 128 59,588,836$

Boston University Charles River Campus 114 52,974,467$

Tufts University Boston 138 52,485,856$

Northeastern University 67 30,770,724$

Brandeis University 74 26,432,078$

University of Massachusetts Amherst 77 23,764,960$

Joslin Diabetes Center 39 23,085,705$

New England Research Institutes 6 18,682,487$

Whitehead Institute for Biomedical Research 42 18,316,392$

Source: NIH, Research Portfolio Online Reporting

$-

$500,000,000

$1,000,000,000

$1,500,000,000

$2,000,000,000

$2,500,000,000

$3,000,000,000

$3,500,000,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

BioPharma

Venture investment in Massachusetts biopharma companies was $2.9 billion in 2016.

In the last three years, Massachusetts biopharma companies received just under $7 billion in venture capital.

Venture Capital Investment: BioPharma

Source: PwC Money Tree ReportBioPharma includes biotechnology, drug discovery, drug development, and pharmaceuticals/drugs.

$2.9 billion

Other Massachusetts life sciences companies raised $430 million in venture capital 2016.

Combined with biopharma, all life sciences companies in Massachusetts raised $3.3 billion in venture capital Massachusetts 2016.

Venture Capital Investment: Life Sciences

Source: PwC Money Tree ReportBioPharma 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

$-

$500,000,000

$1,000,000,000

$1,500,000,000

$2,000,000,000

$2,500,000,000

$3,000,000,000

$3,500,000,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

BioPharma Other Life Sciences

$2.9 billion

$430 million

Top 15 VC Financings in Massachusetts, 2016

Source: EvaluatePharma®, July 2017Note: Excluding PIPE numbers.

CompanyInvestment

($ million)Financing Round

Moderna Therapeutics 451.4$ Series Undisclosed

Intarcia Therapeutics 215.0$ Series I


C4 Therapeutics 73.0$ Series A

Kala Pharmaceuticals 68.0$ Series C

Oncorus 57.0$ Series A

Relay Therapeutics 57.0$ Series A

Fulcrum Therapeutics 55.0$ Series A

Goldfinch Bio 55.0$ Series A

Morphic Therapeutic 51.5$ Series A

Vedanta Biosciences 50.0$ Series Undisclosed

Entasis Therapeutics 50.0$ Series B

Magenta Therapeutics 48.5$ Series A

Proclara Biosciences 47.0$ Series E

Yumanity Therapeutics 45.0$ Series A

Top 10 VC Financings in Massachusetts, 2017, Q1 & 2

Source: EvaluatePharma®, July 2017

CompanyInvestment

($ million)Financing Round


Rubius Therapeutics 120.0$ Series A

Neon Therapeutics 70.0$ Series B

Tango Therapeutics 55.0$ Series A

Deciphera Pharmaceuticals 52.0$ Series C

Spero Therapeutics 51.7$ Series C

Translate Bio 51.0$ Series C

Solid Biosciences 50.0$ Series C

Evelo Biosciences 50.0$ Series B

Magenta Therapeutics 50.0$ Series B

Lead VC Location for Massachusetts Companies, 2016* (percent of dollar amount)

Source: EvaluatePharma®, September 2017

Massachusetts-based VCs provided over 71% percent of Series A funding and 68% of Series B funding for biotechslocated in Massachusetts in 2016.

*Sum of MA biotech companies receiving VC dollars in 2016; 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.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Series C

Series B

Series A

Massachusetts Rest of the US Outside of the US

Geography of BioPharma Venture Capital Investment, 2016

Location of venture-backed companies ($ million)

More than half of all Massachusetts biotechs receiving venture capital were located in Cambridge in 2016. Those Cambridge-based companies received 59% of all biotech venture investment in the state.


Massachusetts IPOs, 2016

Note: Figures refer to “offer amounts” (investment secured) at time of IPO. Source: Nasdaq.com

$147 MM

$50 MM

$52 MM

$11 MM

There were 8 IPOs from Massachusetts biotech companies in 2016.

30% of all US-based biotech IPOs were from Massachusetts companies.

$72 MM

$70 MM

$50 MM

$91 MM

Massachusetts IPOs, 2017 Q1-3

Note: Figures refer to “offer amounts” (investment secured) at time of IPO. Source: Nasdaq.com

$101 MM

$75 MM

$56 MM

$90 MM

$125 MM

There have been 5 IPOs from Massachusetts biotech companies in the three quarters of 2017.

38% of all US-based biotech IPOs in the three quarters of 2017 were from Massachusetts companies.

Geography of Companies with IPOs, 2016

Location of Companies with IPOs

In 2016, 56% of all Massachusetts biotechs that went public were located in Cambridge.


Drug Development Pipeline

Massachusetts Drug Development Pipeline & Trials, by Phase

The MA drug development pipeline includes 20 candidates pending FDA approval.

Source: EvaluatePharma®, Sept 2017

1,896 MA Drug Candidates*19% of US Pipeline9% of Global Pipeline

*Only Massachusetts-headquartered company pipelines are included.

Massachusetts Pipeline by Therapeutic Area

Source: EvaluatePharma®, Sept 2017Percent of total drug candidates.

Oncology continues to be the most frequently researched therapeutic area in Massachusetts.

Only Massachusetts-headquartered companies are included.


Massachusetts Pipeline by Medical Indication (Top 25)

Massachusetts researchers are currently researching and developing products for patients with over 380 different medical indications.


Medical Indication# of

Investigational Drugs

% of all

Investigational DrugsGeneral cancer indications 192 11.40%Solid tumour indications 147 8.73%Other neurological indications 73 4.33%Undisclosed 66 3.92%Other immune indications 49 2.91%General inflammatory disorders 42 2.49%General blood malignancies 41 2.43%Duchenne muscular dystrophy 39 2.32%Breast cancer 38 2.26%Alzheimer's disease 38 2.26%Cystic fibrosis (CF) 35 2.08%Diabetes, type II (maturity onset) 32 1.90%Leukaemia, acute myeloid (AML) 31 1.84%General bacterial indications 30 1.78%Other musculoskeletal disorders 29 1.72%Non-Hodgkin lymphoma (NHL) 27 1.60%Other metabolic indications 27 1.60%Amyotrophic lateral sclerosis (ALS) 27 1.60%Melanoma 26 1.54%Ovarian cancer 26 1.54%Multiple sclerosis (MS) 26 1.54%Gram negative infections 26 1.54%Non-small cell lung cancer (NSCLC) 23 1.37%Diabetes, type I (juvenile onset) 23 1.37%Multiple myeloma 22 1.31%


New Drug Approval for Massachusetts Companies, 2016 & 2017 Q1-3

*Only Massachusetts-headquartered company approvals are included.Source: EvaluatePharma

Xtampza ER, Collegium Pharmaceutical: an extended-release, abuse-deterrent, narcotic analgesic for the treatment of chronic pain

Zinbryta, Biogen and AbbVie: to treat multiple sclerosis

Viekira XR, Enanta Pharmaceuticals & AbbVie: for the treatment of genotype 1 chronic hepatitis C

Exondys 51, Sarepta Therapeutics: treat patients with Duchenne muscular dystrophy

Zinplava, Merck & University of Massachusetts: To reduce the recurrence of Clostridium difficile infection in patients aged 18 years or older

Intrarosa, AMAG Pharmaceuticals: for the treatment of moderate to severe dyspareunia due to menopause

Spinraza, Biogen: To treat children and adults with spinal muscular atrophy (SMA)

Zejula, TESARO: For the maintenance treatment for recurrent epithelial ovarian, fallopian tube or primary peritoneal cancers

Ocrevus, Biogen: To treat patients with relapsing and primary progressive forms of multiple sclerosis

Tymlos, Radius Health: To treat osteoporosis in postmenopausal women at high risk of fracture or those who have failed other therapies

Rituxan Hycela, Biogen and Genentech: for subcutaneous injection for the treatment of adults with specific blood cancers

IDHIFA, Agios Pharmaceuticals: To treat relapsed or refractory acute myeloid leukemia

Mavyret, Enanta Pharmaceuticals: To treat adults with chronic hepatitis C virus

Duzallo, Ironwood Pharmaceuticals: For the treatment of hyperuricemia in patients with uncontrolled gout

2016

2017 Q1-3

Innovative Research

Massachusetts Clinical Trials Granted Expedited Review Designations

Source: EvaluatePharma®, September 2017Expedited includes Fast Track, Accelerated Approval, Breakthrough Therapy, and QIDP.

10 clinical trials from Massachusetts headquartered companies received expedited reviewdesignationsfrom the FDA in the first half of 2017.

6

8

12

16

11

10

0

2

4

6

8

10

12

14

16

18

2012 2013 2014 2015 2016 2017 Q1&2

Massachusetts Clinical Trials Granted Expedited Review

Massachusetts Clinical Trials Granted Expedited Review Designations

28% of all clinical trials granted expedited review designations in the first half of 2017 were from Massachusetts headquartered companies.

21%

14%

23%22%

16%

28%

17%

10%

13%14%

10%

17%

0%

5%

10%

15%

20%

25%

30%

2012 2013 2014 2015 2016 2017 Q1&2

Massachusetts Share of Expedited Clinical Trials in Development

Massachusetts Share of the US Massachusetts Share of the World

Source: EvaluatePharma®, September 2017Expedited includes Fast Track, Accelerated Approval, Breakthrough Therapy, and QIDP.

Massachusetts Clinical Trials Granted Fast Track Status


8 clinical trails from Massachusetts headquarter companies received Fast Track designation in the first half of 2017.

5

6

8

14

9

8

0

2

4

6

8

10

12

14

16

2012 2013 2014 2015 2016 2017 Q1&2

Massachusetts Products in Development Granted Fast Track Status

Massachusetts Clinical Trials Granted Fast Track Status

35% of all clinical trials granted Fast Track designation in the first half of 2017 were from Massachusetts headquartered companies.

22%

19%

26% 26%

18%

35%

18%

14% 14%

17%

12%

21%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2012 2013 2014 2015 2016 2017 Q1&2

Massachusetts Share of Fast Track Designations



16

2526

34

26

15

0

5

10

15

20

25

30

35

40

2012 2013 2014 2015 2016 2017 Q1&2

Massachusetts Products in Development Granted Orphan Designation

Massachusetts companies weregranted 26orphan drugdesignations 2016.


Orphan Designations for Massachusetts Clinical Trials

Massachusetts companies received 12% of all orphan designations in the US, and 6% globally, in the first half of 2017.

9%

11%

10% 10%

11%

12%

4%

5% 5% 5%

6%6%

0%

2%

4%

6%

8%

10%

12%

14%

2012 2013 2014 2015 2016 2017 Q1&2

Massachusetts Share of Orphan Designations in Development


Orphan Designations for Massachusetts Clinical Trials


FDA Approved Products for Orphan Designations

One orphan drug approved by the FDA was from a Massachusetts headquarter company in 2016.

0

1

2

3

4

2012 2013 2014 2015 2016

Approved Orphan Drugs by Massachusetts Companies*

*Products are counted by the number of different orphan designations they were approved to treat. Note: there were no approvals for orphan designations in the first half of 2017.


15%

10%

16%

11%

25%

4% 4%

7%5%

20%

0%

5%

10%

15%

20%

25%

30%

2012 2013 2014 2015 2016

Massachusetts Share of Approved Orphan Drugs by Massachusetts Companies*


Approved Products for Orphan Designations

25% of orphan drugs approved from US based companies in 2016 were from Massachusetts headquarter companies.

*Products are counted by the number of different orphan designations they were approved to treat. Note: there were no approvals for orphan designations in the first half of 2017.


Changing the Lives of Patients

Sources: Developed from multiple sources including EvaluatePharma®, August 2017, emedicine medscape, NCBI, CDC, 2017

Massachusetts-headquartered companies have developed therapies that treat patient populations of up to

264,450,000 patients 1,989,571,000 patientsIN THE UNITED STATES AROUND THE WORLD

Questions?

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 SteeleSenior Director, Economic Development & Global Affairs

[email protected]

mailto:[email protected]

Appendix

Please note: The PcW Moneytree Report that is used for overall venture capital

investment statistics changed its source in 2017. As a result, we have updated the

historical venture capital investment numbers to reflect this change.

Prior to 2012, MassBio used two different federal sources for employment data. In

order to present more consistent employment data on a more timely basis, we no

longer use County Business Patterns (CBP) data of the U.S. Census Bureau but rely

primarily on the U.S. Bureau of Labor Statistics, Quarterly Census of Employment and

Wages (QCEW) for this data.

As a result, historical employment data found in the 2012 -2015 Snapshots vary from

that found in past reports. Though the historical annual employment figures vary by

about 5% between the 2012 Snapshot and those of past years, the trend lines are

very similar.

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’s in a Number?

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 541711: Research and Development in Biotechnology (100%)

NAICS 541712: R&D in Physical, Engineering, and Life Sciences (except biotech) (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%)

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. MassBio also tracks employment for “green

biotechnology” classifications: 325199. 325221, 311222, and 311223. However, the QCEW does not reveal

employment data for these categories beyond minimum ranges, so this data is not included in the

employment figures presented in this Snapshot nor is it factored in comparisons with other states.

What’s in a Number?

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