the future of life sciences in new jersey: public policy challenges and opportunities ispe nj...
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THE FUTURE OF LIFE SCIENCES IN NEW JERSEY:
PUBLIC POLICY CHALLENGES AND OPPORTUNITIES
ISPE NJ Supplier Showcase 2013September 12, 2013
Dean J. ParanicasPresident and Chief Executive OfficerHealthCare Institute of New Jersey
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NJ-based trade association for research-based life sciences companies
25 members, including many of the world’s largest biopharmaceutical and medical technology companies
WHAT IS HINJ?
Represents the life sciences in Washington and Trenton
Advocacy organization promoting patient access, innovation and industry-NJ economic synergy
HINJ
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Working together with labor leaders and elected officials
to pursue policies that protect patients around the world while
PROTECTING JOBS HERE IN NEW JERSEY
WWW.HINJ.ORG
WHAT IS HINJ?
Industry’s economic impact on NJ
Business model and market forces
A competitive playing field
Need for a vibrant “Innovation Ecosystem”
TODAY’S PRESENTATION 4
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“MEDICINE CHEST OF THE WORLD”
NJ/NY one of nation’s largest life sciences clusters
Life sciences is NJ’s largest industry sector
13 of world’s top 20 biopharmaceutical companies
11 of world’s top 20 medical technology companies
Industry nerve center global, North American or US HQ’s or significant presence
LIFE SCIENCES IN NEW JERSEY
6DRIVING NEW JERSEY’S ECONOMY
NEW JERSEY’S LIFE SCIENCES $24.2 billion economic impact* 51,000+ full-time employees* 60,000 indirect jobs* $8.4 billion in R&D spending* $8.1 billion in purchasing from NJ
vendors** $700 million in capital construction* $161 million in contributions to NJ
charities* $961 million in taxes and rebates paid
in NJ* 501 biopharma products in
development* 79 med tech new product applications*
* Source: 2011 HINJ Economic Impact Report** Source: We Work for Health 2012
Why New Jersey?
Opportunities to collaborate with each other Most talented life sciences workforce in the
world Multiple research universities Access to capital markets Transportation hub: world-class airport, ports,
surface transportation Comprehensive and specialized vendor
support Communities of interest Quality of life
DRIVING NEW JERSEY’S ECONOMY 7
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More than 5,000 vendors located throughout NJ
Represent 60,000 spin-off jobs in NJ* Purchase more than $8.1 billion worth of
goods and services annually** Organized into New Jersey Life Sciences
Vendors Alliance (NJLSVA) – Approximately 700 members
* Source: 2011 HINJ Economic Impact Report** Source: We Work for Health 2012
DRIVING NEW JERSEY’S ECONOMY – LIFE SCIENCES VENDORS
www.njlifesciencevendoralliance.org
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75% of health-care spending for chronic disease
Medicine represents 10.1% of the cost of health care
84% of all prescriptions are for generics medications
Medication non-adherence costs $300 billion per year
MARKETPLACE DYNAMICS
5/5,000 compounds enter a clinical trial
ONLY 1/5 approved for market
10-15 years and $1.5 billion to develop and commercialize drugs
Patent clock starts from compound discovery
RESEARCH AND DEVELOPMENT
$50 billion spent on R&D IN 2011 $8.4 billion spent in NJ
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Evolving industry business model• Financial constraints• Consolidation• Changing dynamics
New Jersey’s continued visibility as a life sciences leader• Increasing competition for
industry investment
Volatile political environment
Perception of industry as a “cash cow”• Plug federal budget gaps• Absorb revenue reductions
“NEW REALITY” INDUSTRY DRIVERS
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Sequestration
Medicare Part D Rebates
IPAB
Importation
ACA Implementation
FDA
Key National Issues
THE INDUSTRY’S FUTURE
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Intense competition from other states/countries for life sciences investment (a highly coveted industry)
Where will the industry invest its next dollar(s)?
New Jersey? California? Massachusetts? North Carolina? Ireland? Singapore?
SUSTAINING NEW JERSEY’S LEADERSHIP
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HINJ works closely with NJ’s federal and state lawmakers to ensure an attractive US and NJ investment climate
Adverse impacts on life sciences disproportionately affect NJ due to industry concentration (e.g., Medicare Part D rebates, medical device tax)
SUSTAINING NEW JERSEY’S LEADERSHIP
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Life Scienc
es
* Source: Jones Lang LaSalle “Life Sciences Cluster Report,” 2011
“Innovation Ecosystem”
SUSTAINING NEW JERSEY’S LEADERSHIP
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Why is Restructuring New Jersey Health Sciences Education Important?
“New Jersey must develop a structure to foster better collaboration between its businesses and its institutions of higher education. With better cross-pollination between public and private research, New Jersey’s economy could launch more creative entrepreneurship and more beneficial commercialization.”
─Report of the Governor’s Task Force on Higher Education-Dec. 2010
RESTRUCTURING NEW JERSEY HEALTH SCIENCES EDUCATION
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WHAT’S INVOLVED?
RESTRUCTURING NEW JERSEY HEALTH SCIENCES EDUCATION
Rutgers Biomedical and Health Sciences
From UMDNJ
From Rutgers
Cancer Institute of New Jersey
Graduate School of Biomedical Sciences
New Jersey Medical School Rutgers School of Dental
Medicine (formerly New Jersey Dental School)
School of Health Related Professions
School of Nursing School of Public Health University Behavioral
Health Care Robert Wood Johnson
Medical College of Nursing Ernest Mario School of
Pharmacy Institute for Health, Health
Care Policy and Aging Research
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CHALLENGES OPPORTUNITIES Rutgers’
attractiveness as a partner
Convincing companies to choose Rutgers
Integration hurdles
Enhanced competitiveness
Jobs and economic growth
More innovative new products
IMPLICATIONS FOR NEW JERSEY
RESTRUCTURING NEW JERSEY HEALTH SCIENCES EDUCATION
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KEY TAKEAWAYS
The outlook:PROMISING
NJ continues to be a leader in the life sciences
Life sciences is NJ’s most important industry sector
Industry investment in NJ is continuing
State is taking necessary measures to compete
Higher ed restructuring holds great promise for NJ’s life sciences
Federal issues will be carefully monitored
IN CONCLUSION…