Press Release
Contact: Robert Albright |
Phone: 919-549-7500 ext.123 |
Reports Show Potential of NC's Biotech Industry
Biotech 2003 Conference Offers Best Insight into State's Biotech Environment
May 15, 2003, Research Triangle Park, NC — A low-cost operating environment and strong intellectual capital give North Carolina an edge in biotechnology, but recent industry reports also urge proactive steps to nurture industry development in the future. In advance of Biotech 2003, scheduled for May 21, 2003 at the RTP's Sheraton Imperial Hotel, the Council for Entrepreneurial Development (CED) collected information on the state's life science industry indicating the sector's regional economic impact.
Completed by corporate relocation counsel The Boyd Company, the most recent study entitled “Annual Operating Costs of Biomedical Facilities in North America” reports North Carolina's relative low cost environment in which to run a biotech company. Looking at 48 cities across North America, the study analyzed the major costs most pivotal to operating biomedical and related industry operations - including the costs of skilled labor, facility lease rates, utilities, corporate travel, and other occupancy cost factors, as well as the number of workers with advanced degrees in live sciences.
Thirty-two cities were found to be more operationally expensive than Raleigh-Durham with an annual operating cost for biomedical facilities estimated at $8.72 million. Operating costs at comparative cities ranged from $7.95 million (Montreal) to $12.1 million (San Jose). Other biotech centers with higher operating costs than Raleigh-Durham included San Francisco, Boston, Atlanta, Austin, Chicago and Seattle. [1]
In addition, a number of other recent studies characterized the strength of North Carolina and the Research Triangle's biotech economies as follows:
- North Carolina's life sciences industry currently comprises approximately 150 life sciences firms that employ more than 18,500 people. [2]
- North Carolina lays claim to the world's largest vaccine facility (Wyeth Vaccines), biologics manufacturing facility (Biogen), plasma-based products facility (Bayer) and intravenous solutions facility (Baxter). It also has North America's largest enzyme production plant (Novozymes) and one of the world's largest contract biologics manufacturers (Diosynth). [3]
- North Carolina is fourth in the United States in total research dollars awarded from the National Institutes of Health (NIH) and National Science Foundation (NSF). California, Massachusetts and Maryland are the only states that receive more research funding. [4]
- Despite the state's success in developing the biotech industry over the past 20 years, competition is stiff and growing from states across the country. California, Michigan, Texas and Virginia are a few of the states investing millions and, in some cases, billions of dollars to retain their existing life sciences companies and attract new investment. [5]
- The Brookings Institution ranked the Research Triangle among the leading nine regions in the nation for biotechnology because it possesses the two key ingredients necessary for growth: strong research, and the ability to convert that research into commercial activity. The region's biotechnology patents increased from 27 in the period from 1975 to 1979, to 204 between 1980 and 1989, and 796 in the 1990's. [6]
- The Research Triangle receives more than $469 million annually in financial support from the National Institutes of Health (NIH) alone, with the University of North Carolina at Chapel Hill and Duke University ranking among the top 15 institutions that receive funding from the NIH (UNC-CH at #13 and Duke at #15). [7]
- Firms in the Triangle region have 29 life sciences products in various FDA test phases, targeting diseases ranging from Alzheimer's to heart disease to cancer and oncology. [8]
CED President Monica Doss said she's encouraged by North Carolina's current biotech strengths as indicated by the recent reports, but expressed reserved optimism about the future.
“We've all been buoyed by North Carolina's continued inclusion as one of the nation's top five regional biotech economies, but we find ourselves at somewhat of a critical juncture,” said Doss. “Smart business and policy decisions that encourage a favorable capital environment, including renewal of the Qualified Business Venture tax credit, are vital to maintain industry leadership; and we've got to be persistent in our university and Biotech Center infrastructure investments as well.”
Biotech 2003: Fusing Science, Technology, and Business Leadership is presented by CED, the North Carolina Biotechnology Center, the North Carolina Biosciences Organization (NCBIO) and the Biotechnology Industry Organization (BIO). The conference will pinpoint the state's global impact on life sciences and will offer insight into the future of the area's flagship industry. http://www.cednc.org/biotech/
About CED: The Council for Entrepreneurial Development, located in Research Triangle Park, NC, is a private, non-profit organization formed in 1984 to stimulate the creation and growth of high-impact companies in the greater Research Triangle region. As the largest entrepreneurial support organization in the nation with more than 4,000 members representing 1,100 entrepreneurial companies, financiers and professional firms, CED provides education, mentoring and capital formation resources to new and existing high-growth entrepreneurs. www.cednc.org
About the North Carolina Biotechnology Center: The North Carolina Biotechnology Center is a private, non-profit corporation funded primarily by the state's General Assembly. Its mission is to provide long-term economic and societal benefits to North Carolina by supporting biotechnology research, business and education statewide. www.ncbiotech.org
About the North Carolina Biosciences Organization: NCBIO is a trade organization promoting the development of the biosciences industry in North Carolina. NCBIO provides cost-effective, organized legislative and advocacy efforts on behalf of the industry at the state and federal levels.
About the Biotechnology Industry Organization: The Biotechnology represents more than 1,000 biotechnology companies, academic institutions, state biotechnology centers and related organizations in all 50 U.S. states and 33 other nations. BIO members are involved in the research and development of healthcare, agricultural, industrial and environmental biotechnology products. www.bio.org
###
Footnotes:
- [1] The Boyd Company, Annual Operating Costs of Biomedical Facilities in North America, March 2003.
[2] North Carolina Biotechnology Center, Quick Facts: North Carolina's Biotechnology Industry (May 10, 2003).
[3] Ibid.
[4] Peter Pellerito, A Blueprint for Life Sciences Industry Growth In the Research Triangle Region, commissioned by the Research Triangle Regional Partnership (RTRP), the North Carolina Biotechnology Center, North Carolina BioSciences Organization and PricewatershouseCoopers LLP (February 2003), at 4.
[5] See Supra, A Blueprint for Life Sciences Industry Growth In the Research Triangle Region, at 5.
[6] Joseph Cortright and Heike Mayer, Signs of Life: The Growth of Biotechnology Centers in the U.S. - Regional Profiles: Raleigh-Durham, The Brookings Institution Center on Urban and Metropolitan Policy, (June 2002).
[7] Ibid.
[8] See Supra, A Blueprint for Life Sciences Industry Growth In the Research Triangle Region, at 6.