"Fostering Massachusetts' life science ecosystem", Dr. Susan Windham-Bannister, President and CEO of the Massachusetts Life Sciences Center (MLSC). Presented at Better innovation in biotech, part of MIT Startup Exchange cluster workshop series on 2/26/15, see http://startupexchange.mit.edu/startupexchange/html/index.html#viewOpportunity/51

1. 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. 2
The Massachusetts
Life Sciences
Initiative and the
Role of the MLSC

3. 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. 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. 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. 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. 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 Kay
Boston 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. 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. 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. 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. 11
MLSC Investments are Revving Up the
Massachusetts Life Sciences Ecosystem
Collaboration
K-12 STEM
Programs
Translational
Research
Advanced and Bio-
Manufacturing
Leverage:
Internships Tax Incentives
Early Stage Companies and
Entrepreneurship
Voc Tech and High
School Equipment
Capital Projects in
Academic Institutions

12. 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. 13
MLSC Investments Also Span Disease Areas

14. 14
The MLSC’s Impact

15. 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
17,021,000
18,437,000
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. 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. 17
Biogen Idec
Cambridge
MLSC Tax Incentives Have Contributed to
Significant Company Growth in MA
Shire
Lexington
PerkinElmer
Waltham
Cubist
Lexington

18. 18
The MLSC Has Accelerated the Pace of New
Company Arrivals and Expansions in MA

19. 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. 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. 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. 22
533.8
447.0
345.6
325.4
265.9
222.5
206.2
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. 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. 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)