"Fostering Massachusetts' life science ecosystem", Dr. Susan Windham-Bannister, President and CEO of the Massachusetts Life Sciences Center (MLSC).

Investing in the State of Innovation

Presented to the MIT Startup Exchange Workshop

February 26, 2015

Developing and Maintaining the World’s

Leading Life Sciences Ecosystem:The Massachusetts Life Sciences Center

Strategy and Programming Overview

2

The Massachusetts

Life Sciences

Initiative and the

Role of the MLSC

3

What is the Massachusetts Life Sciences

Initiative?

A 10-year, $1 billion initiative to invest in the state’s life sciences

sectors, enacted by the Massachusetts legislature in June 2008.

The Initiative is administered by the Massachusetts Life Sciences

Center (MLSC), which serves as the “hub” of the state’s life

sciences community.

Encourage life sciences innovation through investments in good science and good business

Strengthen and protect Massachusetts’ global leadership position in the life sciences

Accelerate the commercialization of promising treatments, therapies and cures

Create jobs and drive economic development

Goals of the Life Sciences Initiative:

4

What Life Sciences Sectors are Targeted

by the MLSC?

Biotechnology Diagnostics PharmaceuticalsMedical Devices Bioinformatics

Primary Sectors

Science, Technology, Engineering, Math (STEM)

AND…..

• Administration

• Animal Husbandry/Care

• Advertising and

Communications

Skills

• Sales and

Marketing

• Finance

• IT

• Legal and

Regulatory

• Logistics

Management

• Project

Management

5

Annual appropriation Included in the Massachusetts Legislature’s state budget

The MLSC has the most “discretion” over the use of these funds

Annual authorization

Authorized by the MA

Executive Office of

Administration and Finance

Used to award tax incentives

and credits

Annual share of Massachusetts’

bond capacity

Determined by the MA Executive

Office of Administration and Finance

Used for capital and

infrastructure projects

The MLSC is Funded from Three Sources

• 10 Years

• $1 Billion

Investment

6

The MLSC is a Public-Private Partnership,

Governed by a Multi-Disciplinary Board of Directors*

• Secretary of Housing and Economic Development

Jay Ash

• Secretary of Administration and Finance

Kristen Lepore

• President of the University of Massachusetts System

Robert Caret, Ph.D.

• A researcher involved in the commercialization of biotechnology,

pharmaceuticals or medical diagnostic products

Lydia Villa-Komaroff, Ph.D., Director and CSO, Cytonome/ST

• A physician licensed to practice medicine in the Commonwealth and

affiliated with an academic medical center

Edward Benz, M.D., President & CEO, Dana-Farber Cancer Institute

• A person with financial expertise in the life sciences

Peter Parker, President, BioInnovation LLC, Co-Founder, LabCentral

• A CEO of a Massachusetts based life sciences corporation

Adelene Perkins, Chair, President and Chief Executive Officer of Infinity

Pharmaceuticals, Inc.

*Board membership as of January 2015

7

A “Blue Ribbon” Multi-disciplinary Scientific

Advisory Board* Guides Investment Decisions

CHAIR: Harvey F. Lodish, Ph.D., Whitehead Institute and Massachusetts Institute of Technology (MIT)

Academia

James J. Collins, Ph.D., Massachusetts Institute of Technology

John M. Collins, Ph.D., Center for Integration of Medicine & Innovative Technology (CIMIT)

Robert D’Amato, M.D., Ph.D., Center for Macular Degeneration Research , Harvard Medical School and Boston Children’s Hospital

Glenn R. Gaudette, Ph.D., Worcester Polytechnic Institute (WPI)

Judith Lieberman, Ph.D., Immune Disease Institute, Boston Children’s Hospital and Harvard Medical School

Lita L. Nelsen, Massachusetts Institute of Techonolgy

Barbara Osborne, Ph.D., UMass Amherst

Guillermo Tearney, M.D., Ph.D., Harvard Medical School, Harvard-MIT Division of Health Sciences and Technology (HST) and Massachusetts General Hospital

David Walt, Ph.D., Tufts University School of Medicine

Philip Zamore, Ph.D., UMass Medical School

Frederick J. Schoen, M.D., Ph.D. Professor Harvard Medical School

Industry

James Barry, Ph.D., Inspire MD, Inc.

Dalia Cohen, Ph.D.,ALN Associates

José-Carlos Gutiérrez-Ramos, Ph.D.,Pfizer

Dale Larson,Draper Laboratory

Alan Smith, Ph.D.,CBE, FRS, Genzyme (Retired)

Alison Lawton

Board of Directors for Cubist Pharmaceuticals and Verastem Inc.

Venture Capital

Kevin Bitterman, Ph.D.,Polaris Venture Partners

T. (Teo) Dagi, M.D., M.B.A.,Queens University Belfast & Broadview Ventures

Andrew Jay, DMD,Siemens Venture Capital

Henry KayBoston Harbor Angels

Carmichael Roberts, Ph.D., M.B.A., North Bridge Venture Partners

Lauren Silverman, Ph.D.,Novartis Option Fund

Frederick Jones, M.D.Broadview Ventures

Entrepreneurs

Alison Taunton-Rigby, Ph.D. ,RiboNovix, Inc.

Hillel Bachrach

Viztech & UltraSPECT

*SAB membership as of January 2015

8

The MLSC’s Strategy is to Invest in Innovation

Capacity

What is Innovation Capacity?“The ability to produce and commercialize a flow of innovative technology over

the long term.”Furman, Porter and Stern, 2002

“Geographies with high innovative capacity usually develop faster economically,

attract highly skilled populations, and experience rising incomes and trade.”(Harvard Business School 2001)

Why Invest in Innovation Capacity?

• Optimal role for the public sector

• All stakeholders and regions benefit from the investment

Create GrowDevelop Sustain

9

How is the MLSC Implementing the Strategy?

A Portfolio of Investments That Target Key Enablers of Life Sciences

Innovation Capacity

Collaboration• Biomanufacturing Roundtable

• International Collaborative

Industry Program (ICIP)

• International Partnership

Assistance Portal

• Neuroscience Consortium

• Universal Partnership Program

(UP)

Translational Research

• Co-operative Research Grants

Infrastructure

• Equipment and Supply Grants to

Middle, Voc Tech and Public

High Schools

• New Spaces for Research,

Training, Business Incubating,

Biomanufacturing and

Computing

Workforce Development

and Job Growth

• Grants to Community-Based

STEM Programs

• Internship Challenge Program

• Tax Incentives

Entrepreneurship

• Grants for Business Plan

Competitions

• Milestone Achievement Program

(MAP)

• Accelerator Loan Program

• Small Business Matching Grant

Program (SBMG)

Think

BIG

10

Investments Also Coalesce the Massachusetts

Life Sciences “Cluster” into an “Ecosystem”

Massachusetts has a high

concentration of

universities, research

hospitals, skilled workers,

entrepreneurs, mature

companies and investors

In a high-performing

innovation ecosystem

these components work

well individually and

together!

11

MLSC Investments are Revving Up the

Massachusetts Life Sciences Ecosystem

Collaboration

K-12 STEM

Programs

Translational

ResearchAdvanced and Bio-

Manufacturing

Leverage:

Internships Tax Incentives

Early Stage Companies and

Entrepreneurship

Voc Tech and High

School Equipment

Capital Projects in

Academic Institutions

12

MLSC Investments are Well-Distributed

Across the Commonwealth

Lab Central Incubator

Cambridge

$10 Million

Translational Center for the Cure of

Diabetes

Joslin Diabetes Center

Boston

$5 Million

Center for Personalized Cancer Treatment

UMass Boston

Boston

$10 Million $55 Million In

Greater Boston

Massachusetts Accelerator

for Biomanufacturing

Fall River

$25.6 Million

Center for Regenerative Biology

Marine Biological Laboratory

Woods Hole

$10 Million

$43 Million in

Southeast and South Coast

Life Sciences Consortium of the

North Shore

Beverly

$5 Million

Mass Medical Device Development

Center (M2D2) Expansion

UMass Lowell

Lowell

$4 Million$23 Million in

North Shore

New Science Center

Framingham State University

Framingham

$3 Million

Wastewater Treatment Facility

Town of Framingham

$12.9 Million

$16 Million in

Metrowest

Albert Sherman Center

UMass Medical School

Worcester

$90 Million

Gateway Park

Biomanufacturing Education

and Training Center

Worcester

$5.15 Million $111 Million in

Central MA

Commonwealth Computational

Cloud for Data Driven Biology

Mass Green High Performance

Computing Center (MGHPCC)

Holyoke

$4.5 Million

Three New Translational Science Centers

UMass Amherst

Amherst

$95 Million

Healthcare Informatics &

Technology Innovation Center

Baystate Med. Ctr.

Springfield

$5.5 Million

$119 Million in

Western MA

*

*

Strengthened core competencies that are unique to each region build

innovation capacity statewide

13

MLSC Investments Also Span Disease Areas

14

The MLSC’s Impact

15

MLSC Investments Have Funded the Creation

of New Research Space

Since 2007, over five million square feet of commercial lab space

have been added to the state’s inventory

Source: Colliers Meredith & Grew, Life Science Review, 2007-2013

Courtesy of MassBio Industry Trade Association 2014

16,064,000

17,021,00018,437,000

2007 2009 2011 2013

18,687,000

2014

21,204,000

MLSC investments have helped fund 1.5M sq. ft. of this

new research space since 2008

16

MLSC Investments Have Funded Business

Incubating and Biomanufacturing Spaces

$5M MLSC grant to WPI for a

Biomanufacturing Education

and Training Center (BETC) in

Worcester; industry matches to

date are $50M

$13.7M MLSC grant to the

Town of Framingham for

wastewater management

enabled Genzyme to build a

$410M Fabry manufacturing

facility

$10M MLSC grant to build

Lab Central in Kendall

Square; industry and VC

matching investment to date

is $30M

17

Biogen Idec Cambridge

MLSC Tax Incentives Have Contributed to

Significant Company Growth in MA

Shire Lexington

PerkinElmerWaltham

CubistLexington

18

The MLSC Has Accelerated the Pace of New

Company Arrivals and Expansions in MA

19

MLSC Investments Helped Lead Massachusetts

Out of the Economic Recession

0

5

10

15

20

MLSC Targeted Sectors Massachusetts

Employment Growth in MLSC Targeted Sectors (2006-2012)

20

MA Now Ranks #1 in Total Life Sciences

Employment On a Per Capita Basis

17,363

Massachusetts

9,477

Pennsylvania 1.8X higher than in Pennsylvania

9,524

California 1.8X higher than in California

5,744

Florida 3.0X higher than in Florida

13,592

New Jersey 1.3X higher than in New Jersey

7,392

New York 2.3X higher than in New York

Total Life Sciences Employment, per One Million Population by U.S.

State 2010-2012

21

The Life Sciences Sectors are Now a Major Part

of the Massachusetts Economy

Total Massachusetts Life Sciences Employment:

113,678

Life Sciences Employment By Sector: 2010-2012

22

533.8

447.0

345.6325.4

265.9

222.5206.2

164.5

124.8 122.0 115.7 113.7 111.4

86.4 84.2

46.8

0.0

100.0

200.0

300.0

400.0

500.0

600.0

* Excluding Life Sciences

Employment in the Life Sciences is Now as

High as the State’s Entire Construction Industry

Employment by Major Employment Sector (in 000's)

Massachusetts 2010-2012

23

The Life Sciences Initiative Has Made MA an

International Target for Investment and Growth

Sources: MassBio, membership reports, survey, Boston Business Journal Book of Lists, 2013

Over half of

our 21 leading

biopharma

companies

employ 1,000

or more

workers

Nearly one-

third of our

leading

companies had

little or no

presence in MA

before 2004!

Rank # Company Jobs

1 Genzyme (Sanofi) 4,600

2 Pfizer 2,600

3 Biogen Idec 2,300

4 Novartis 2,100

5 PAREXEL International 2,000

6 Covidien 1,800

7 Hologic 1,775

8 EMD Millipore 1,756

9 Shire 1,500

10 Thermo Fisher Scientific 1,450

Vertex 1,450

12 Millenium Takeda Oncology 1,204

13 AstraZeneca 948

14 Charles River Laboratories 930

15 Abbot Laboratories 850

16 EMD Serono 704

17 Nova Biomedical 700

18 Cubist 638

19 Sunovion Pharmaceuticals (DS) 593

20 Merck 500

21 Bristol-Myers Squibb 400

24

Global Leaders are Moving Their U.S.

Headquarters to MA

GE Healthcare Life

Sciences Moves to

Marlborough HQ (8/20/14)

Healthcare Giant

Baxter International

Is Moving to

Cambridge (8/27/14)

Shire to Move US HQ and 500 Jobs to

Greater Boston (11/19/14)

Shire to Buy NPS Pharmaceuticals for

$5.2 Billion and Considering Moving

Many of NPS’s 400 Employees to its

Lexington Campus (1/1/15)

Pfizer completes move of

research unit to

Massachusetts (9/8/11)

Merck KGaA moving

US base to Billerica,

Millipore deal also

expected to bring new

jobs to state (3/4/10)

Amgen enters

heavyweight fray for

Kendall Square's few

remaining blocks of

space (8/19/14)