Biotechnology Industry and Initiative Update

1. Biotechnology Industry and Initiative Update EWD EDPAC February 3, 2011 Jeffery O’Neal State Director - Biotechnology Initiative Economic and Workforce Development California Community Colleges

2. Biotechnology isAdvanced tools of biology used by many industries, new and traditional • Agricultural • Pharmaceutical • Environmental • Energy • Law enforcement • Military

3. Law Enforcement/Military • CSI • DNA typing of felons • Huge database • Military • DNA typing of soldiers • 911 and battlefield victims

4. 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

5. 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

6. 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

7. Agriculture (0 88% of Cotton 91% of Soybean 85% of Corn

8. Stem Cell Research in California • 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.

9. Stem Cell Therapies Under Development • Regenerating nerve/brain tissue • Spinal cord injuries • Parkinson’s disease • Alzheimer’s disease • Regenerate muscle tissue • Heart muscle tissue damaged by heart attack • Regenerate other specialized cells such as • Pancreas and kidney cells • Blood cells in people compromised due to chemotherapy • Bone growth for void fill and non-union fractures

10. Stem Cell Therapies Beating heart cells Regenerated nerve cells

11. 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

12. Biotechnology as a california employment engine

13. 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

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

15. 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

16. 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.

17. 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.

18. The Biotechnology Initiative • Economic and Workforce Development Program • California Community Colleges • Biotechnology Initiative Current 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. Number of Students in Biotech Programs is Growing

25. 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

26. 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

27. 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

28. 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

29. Biomanufacturing

30. Pasadena Biosciences Incubator • Operated by the community college in collaboration with the city of Pasadena • Incubated 16 companies with 5 successful ‘graduates’

31. Pasadena Biosciences Incubator Expansion To 10, 000 sg ft in 2010 -new 2011 expansion planned

32. Exemplary Programs LA Trade Tech College – ARRA funded Fast 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

33. 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

34. Exemplary Programs Displaced Nummi workers to Ohlone College program Working 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

35. Exemplary Programs

36. Exemplary Programs

37. 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.

38. 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.

39. 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