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California Life
Sciences Industry
2017REPORT
Peter Claude
Partner,
Pharmaceutical &
Life Sciences
Advisory
PwC
Sara Radcliffe
President & CEO
California Life
Sciences Association
(CLSA)
Sincerely,
Jerry Brown
Governor of
California
Letter from the Governor
California has a unique history of innovation: from agriculture to the film industry to information technology to
life sciences. As a group, Californians have repeatedly devised new technologies, and better ways to use old
technologies, to solve some of the world’s most intractable problems.
As the birthplace of biotechnology, California prides itself on the innovation born in the life sciences in particular.
Genomic technologies help us detect disease, while new therapies and devices help treat them. Biofuels provide
clean, sustainable energy that will ease our dependence on foreign sources and help solve climate change. Digital
health technologies help prevent disease and give patients better tools to manage their conditions.
The California Life Sciences Association is an important partner in our efforts to foster a stronger biomedical
industry and boost job growth in California. This state is committed to supporting this critical sector, both
economically and through strong public policy. Life Sciences is a cornerstone of California’s economy and I look
forward to working with leaders in this sector as we continue to contribute to a healthier society, strengthen our
economy and advance new medical technologies.
Sincerely,
Letter to Stakeholders
When people envision a vibrant life sciences community, they think of California. It begins
with the state’s public and private research universities and institutes, which produce a
highly trained scientific workforce, invaluable insights into human biology and world-
changing research.
In some cases, these breakthroughs might be developed into a product – a drug that targets
a cancer-driving protein, for example. A pharmaceutical, biotechnology or medical device
company licenses the intellectual property, or the researchers find investors and create
their own start-up. Years and millions of dollars later, the treatment may enter the clinic
and improve patient care.
California succeeds because the state’s political, academic and business leaders are committed
to a strong life sciences ecosystem. Smart policy decisions have played a role in continued
success. Because the state has long supported higher education, California produces more
biology and engineering PhDs than any other state.
In 2004, when national policy shifted away from stem cell research, California voters
approved Proposition 71, which funded the California Institute for Regenerative Medicine
(CIRM). This commitment led to groundbreaking basic and translational research, accelerating
stem cell therapies into clinical trials and making California the epicenter for stem cell
research.
By most measures, the California life sciences industry is strong and growing. There are
3,040 life sciences companies, including industry-leading global corporations, entrepreneurial
startups and everything in-between. California’s life sciences industry directly employs
more than 287,000 people, generated $147.7 billion in revenue in 2015 and has 1,269
medicines – and even more devices and diagnostics – in the pipeline to boost patient care.
This report lays out the many strengths that define the life sciences in California, but the
work must continue. Few industries can do so much to improve quality of life. We must
continuously renew our commitment to these efforts.
Direct
Employment
Indirect and Induced
Employment
Total Direct,Indirect and Induced Jobs:
884,200
597,000287,200
Life Sciences Industry
in California,2015 (estimated)
Total revenue
Direct employment
Total wages and salaries
Average annual life sciences industry wage
Total NIH grants awarded (2016)
Total venture capital investments (2016)
Total biomedical exports
Direct federal taxes
Direct state and local taxes
$147.7 billion
287,200
$33.5 billion
$116,484
$3.6 billion
$4.4 billion
$22 billion
$10.5 billion
$5.1 billion
1
California’s life sciences community continues to grow, with
3,040 life sciences companies – 192 more than the previous
year – producing new technologies and boosting the state’s
economy. In 2015, the Golden State’s life sciences industry
employed more than 287,000 people. This highly trained
and diverse workforce helped develop novel drugs, devices
and diagnostics, while also exploring other applications,
such as leveraging biotechnology to produce sustainable
energy.
Life sciences companies have been incredibly successful.
As of September 7, 2016, 1,269 drugs from California
companies were in the FDA pipeline. In 2015, 264 new
devices developed by California companies were approved.
In addition, these companies produced more than $147
billion in revenue, received $4.4 billion in venture capital
funding, drove $22 billion in exports and paid $15.6 billion
in federal and California state and local taxes.
Academic excellence, forward-thinking public policy and
the commitment of thousands of entrepreneurs and business
leaders has translated into new ways to address some of the
world’s most severe medical conditions: cancer, hepatitis,
HIV, rare diseases and many others. These efforts help
power our economy, support job creation and improve health
for millions around the world.
California’s Unique Life Sciences Ecosystem
Top Life Sciences Employment
in California,2011 -2015
2015 2014 2013 2012
ANNUAL
COMPOUND
GROWTH
SOURCES:Bureau of Labor Statistics Quarterly Census of Employment and Wages;
2012 Economic Census; BloombergSOURCES:Bureau of Labor Statistics Quarterly Census of Employment and Wages;
2012 Economic Census
California
New York
New Jersey
Indiana
Pennsylvania
Illinois
Massachusetts
Minnesota
North Carolina
Florida
Texas
Michigan
Utah
Wisconsin
Ohio
Biopharmaceutical and Medical Device Employment
by state,2011-2015
2015 ranking
by employment
Employment growth,
2011-2015
Employees,
change from 2011
122,535
37,556
36,838
35,866
35,539
34,330
33,414
32,897
31,497
29,181
26,721
21,675
18,425
16,000
15,804
7,702
(-1,464)
(-8,473)
695
(-3,131)
2,203
1,924
(-124)
1,721
2,346
1,791
1,324
3,691
(-372)
(-693)
-8%
6%
9%
-<1%
-19%
7%
7%
2%
6%
-4%
7%
7%
25%
-2%
-4%
3
7
1
2
4
5
6
8
10
9
11
14
12
13
15
Medical
Device and
Equipment
Manufacturing
1,714
Biotechnology and
Pharmaceutical
1,326
Number of Life Sciences Companies
in California,2015
TOTAL
3,040
Medical Devices,
Instruments,
Diagnostics
0.1%
74,394
74,642
74,616
74,549
Research &
Development,
Testing Labs
3.7%
62,290
64,007
66,383
69,542
Wholesale Trade
(e.g.distribution of
pharmaceuticals or
hospital equipment)
2.9%
45,795
46,424
48,380
49,884
Biorenewables
(e.g.organic compound
mfg.,ethanol mfg.)
3.1%
3,306
3,320
3,365
3,624
Biopharmaceuticals
2.7%
44,245
45,187
47,171
47,985
Academic Research
1.7%
39,509
40,191
40,850
41,617
2
Producing Drugs, Devices, Diagnostics and
Digital Health Technologies
Even more importantly, the total number of therapies in clinical
trials continues to grow, ultimately providing more choices
for patients and physicians as they work to overcome disease.
One of the many strengths of California’s life sciences
community is its eagerness to embrace new ideas. The digital
healthsectorisonlyafewyearsold,butisshowingtremendous
potential to improve care.
Innovative digital technologies can keep congestive heart
failure patients out of the hospital, help patients comply with
their drug regimens, support treatment for PTSD and much
more. California companies lead the nation in attracting
venture capital (VC) investment for innovative digital health
technologies.
Great ideas often begin in academic labs as scientists research
human biology and look for better ways to diagnose and
treat disease: a new marker to track cancer progression; a
unique molecule that controls an aberrant protein; a digital
device that helps patients better manage their heart disease.
California’s life sciences community does an excellent job
at moving these ideas out of labs, through various regulatory
processes and ultimately to patients. In 2016, California
biopharmaceutical companies had 404 therapies in the FDA
pipeline for cancer, 134 for infectious diseases and 129 for
central nervous system disorders. Similarly, the state’s
medical device sector saw 264 products successfully through
the FDA: 10 premarket approvals (PMA), 250 510(k)
clearances and four de novo’s.
Medical Device Approvals
by companies headquartered in California,2015
SOURCE:EvaluateMedTech®,August 2016
PMA - First Approval
TOTAL: 264
10 250 4
510(k) Clearance De Novo
* 2016 data based on projection from the first two quarters
California
New York
Massachusetts
Texas
Illinois
Top 5 States for Digital Health VC Funding
2015 vs.2016*
2015 2016*
InvestmentInvestment
$2.1B
$540M
$346M
$47M
$117M
$1.6B
$730M
$392M
$231M
$198M
California Medicines by Therapeutic Area
Investigational New Drug (IND) products through Phase III clinical trials
Cardiovascular
Therapies in Pipeline TOTAL: 1,269
Miscellaneous
Genitourinary
Respiratory
Cancer
Infectious Diseases (incl.HIV)
Central Nervous System
Hormonal Systems/Nephrology*
Immune System
Musculoskeletal
Pain
Eye/Ear
Hematological
Gastrointestinal
Dermatology
Diagnostic/Imaging/Delivery
SOURCE:Biopharm Insight,INDs filed through Phase III,Sept.7,2016
*incl.Diabetes
404
134
129
70
100
69
52
41
60
53
43
39
44
16
11
4
Wearables/Biosensing
Consumer Health,Wellness1
Digital Diagnostics,Devices,Therapies
Care Management,Administration2
Analytics/Big Data
Life Sciences Tools3
Personalized Medicine
Other
Remote Patient Monitoring
Telemedicine
California Digital Health VC Investment
by category,2016*
1 Includes consumer health information,enterprise wellness,healthcare consumer
engagement and personal health tools and tracking
* 2016 data based on projection from the first two quarters
2 Includes the care coordination,general care management,hospital administration,
physician practice management,population health management,hospital CRM and
marketing and EHR/clinical workflow categories
3 Includes the life sciences commercialization tools and life sciences R&D tools categories
Investment
$384M
$361M
$312M
$189M
$131M
$90M
$61M
$59M
$36M
$20M
Bay Area**
San Diego County
Los Angeles County
Orange County
Sacramento Area***
** Includes Alameda,Contra Costa,Marin,Napa,San Francisco,San Mateo,Santa Clara and
Sonoma counties
* 2016 data based on projection from the first two quarters
California Digital Health VC Investment
by region,2015 vs.2016*
*** Includes Sacramento,Butte,El Dorado,Nevada,Placer,Solano,Sutter,Yolo andYuba counties
Investment Investment
2015 2016*
$1.6B
$53M
$375M
$72M
$2M
$1.4B
$173M
$68M
$0
$0
SOURCE:Rock Health Digital Health Funding Database
3
Driving Economic Growth
California has a strong and diverse economy, powered by
information technologies, agriculture, energy, tourism and
the life sciences. Second to life-saving products, excellent
jobs may be the biomedical community’s greatest
contribution to the state. In 2015, California life sciences
companies employed more than 287,000 people, a two
percent increase over 2014. These jobs ran the gamut from
academic research to bioengineering to wholesale trade.
Even more impressive, the industry generated 597,000
indirect and induced jobs, bringing the total to 884,200.
In addition, the average wage for California life sciences
employees topped $116,000 and total wages exceeded
$33 billion.
While biomedical growth has been historically stronger in
the San Francisco Bay Area and San Diego, new,
entrepreneurial companies are becoming more prevalent
in Los Angeles, a trend that could bode well for the region
(see Los Angeles insert).
Total Life Sciences
Employment by Cluster
as a percent of the total,2015
SOURCES:Bureau of Labor Statistics Quarterly Census of Employment and Wages; 2012 Economic Census
24%
2%
3%
13%
20%
15%
4%
1%
4%
EMPLOYEES
* Includes Alameda,Contra Costa,Marin,Napa,San Francisco,San Mateo,Santa Clara and Sonoma counties
**** Includes Imperial,Kern and San Luis Obispo counties
***IncludesMonterey,Kings,Tulare,Inyo,SanBenito,Fresno,Mono,SantaCruz,Merced,Madera,Stanislaus,Mariposa,
Tuolumne,San Joaquin,Calaveras,Alpine,Amador,Mendocino,Lake,Colusa,Sierra,Glenn,Plumas,Humboldt,
Trinity,Tehama,Lassen,Shasta,Del Norte,Siskiyou and Modoc counties
**Includes Sacramento,Butte,El Dorado,Nevada,Placer,Solano,Sutter,Yolo andYuba counties
Note: Clusters do not sum to total due to data suppression at the county level
Total Life Sciences Employment by Cluster
in California,2015
Sacramento Area**
2,592
5,874
Ventura and Santa Barbara counties
9,543
Riverside and San Bernardino counties
11,009
Other Southern California****
Other Northern California***
11,628
San Diego County 38,694
Orange County 43,327
Los Angeles County 57,174
Bay Area* 68,313
287,200TOTAL
CLUSTER
Life Sciences Employment vs.
Other High-Tech Sectors
in California,2015
Lifesciences
industry
Aerospace
Computer and
peripheral
equipment mfg.
Motion pictures
Other electronic
equipment mfg.
Internet,telecom-
munications,
data processing
76,032
147,934
163,907
192,069
412,749
287,200
California Life Sciences Wages
by sector,2015*
Academic Research
Biopharmaceuticals
Biorenewables
Medical Devices,
Instruments,
Diagnostics
Research &
Development,
Testing Labs
Wholesale Trade
TOTAL
AVG.WAGE TOTAL WAGES
$71,707
$157,352
$72,831
$95,946
$148,125
$116,484*
$2.98B
$7.55B
$264M
$7.15B
$10.3B
$33.5B
*Total average
$101,022 $5.2B
4
Attracting Major Investments
Because California companies have such a strong track
record of translating lab science into products that help
patients and consumers, the state has long been a magnet
for investment. As in past years, California was the top state
for life sciences venture capital (VC) investment in 2016*
with $4.4 billion: $3.3 billion in biotech and $1.1 billion in
medical devices. Massachusetts was second with $2.9 billion.
The life sciences are second only to software in California
for VC funding.
Across biotech, investment declined in later-stage companies,
but increased dramatically for seed stage startups. Medical
device investment also increased at seed and early stage.
VC investment in digital health in 2016* was significant at
$1.6 billion, but declined from $2.1 billion in 2015. Still,
California led the nation, more than doubling New York’s
$730 million. These investments funded wearables and
biosensors, consumer health and wellness technologies,
digital diagnostics, devices and therapies and other areas.
Mergers and acquisitions slowed considerably through early
Sept. 2016 to 46, compared to 99 in 2015. Life sciences IPOs
also declined to three, compared to 25 in 2015. These
numbers reflect weak national M&A and IPO markets.
*2016 data based on projections from the first two quarters.
Massachusetts
New York
Pennsylvania
North Carolina
Texas
Michigan
Missouri
Minnesota
Kentucky
California
Top 10 States for Life Sciences
Venture Capital Investment
2014-2016*
2016*
2015
2014
$4.43B
$2.94B
$352M
$240M
$237M
$153M
$143M
$102M
$97M
$94M
$4.51B
$2.70B
$173M
$334M
$249M
$234M
$112M
$152M
$135M
$12M
$3.90B
$2.25B
$47M
$286M
$181M
$269M
$129M
$37M
$235M
$19M
SOURCES:PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters; Rock Health Digital Health Funding Database
2014 $731M $1.37B$781M$1.91B
2014 $218M $540M$345M$614M
2014 $380M $774M$1.27B$3.57B
2014 $56M$18M$157M$373M
2016* $534M $1.17B$465M$1.38B
2015 $524M $1.45B$550M$1.49B
2016* $77M $247M$368M$531M
2015 $245M $561M$406M$802M
2016* $462M $621M$1.89B$3.93B
2015 $319M $764M$2.06B$4.76B
2016* $24M $79M$603M$1.44B
2015 $23M $60M$377M$613M
See methodology for full sector definitions*2016 data based on projection from first two quarters
California
U.S.
Venture Capital Investment, Biotech and Medical Devices
by stage,U.S.and California,2014-2016*
Seed
stage
Early
stage
Expansion
stage
Later
stage
MEDICAL DEVICESBIOTECH
$4.5B
$2.1B
SOURCES:PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters; Rock Health Digital Health Funding Database
* 2016 data based on projection from the first two quarters
Digital Health VC Investment
U.S.and California,2015 vs.2016*
$59.8B
$34.3B
$56.0B
$33.2B
$4.1B
$1.6B
2015 2016*
U.S.VC investment Calif.VC investment
TOTAL U.S.VC INVESTMENT TOTAL DIGITAL HEALTH
VC INVESTMENT
2015 2016*
Note:The Los Angeles and Orange County region is comprised of Southern California
(excluding the San Diego region),the Central Coast,and the San Joaquin Valley; the
Sacramento/Northern California region is comprised of Northeastern California; the San
Diego Region is comprised of the San Diego area;and the Bay Area and SiliconValley region
is comprised of Northern California,the Bay Area and the Northern Coastline.
Life Sciences VC Investment
in California,by region,2015 vs.2016*
2016*
2015
$7M
Los Angeles/
Orange County
Sacramento/
Northern Calif.
San Diego
Bay Area &
Silicon Valley
$0
$244M
$426M
$1.1B
$614M
$3.1B
$3.5B
5
Top 5 States Receiving NIH Grants
2015 vs.2016*
2015
California
Massachusetts
New York
Pennsylvania
North Carolina
Funding Awards
7,558
4,853
4,825
3,339
2,060
7,521
4,960
4,866
3,412
2,148
$3.40B
$2.35B
$1.99B
$1.47B
$972M
$3.58B
$2.52B
$2.15B
$1.54B
$1.07B
Note: Data excludes R&D contracts and projects funded through
the American Recovery and Reinvestment Act
*2016 data reflect awards through October 3,2016
SOURCE:National Institutes of Health
UC Berkeley
$112M
Kaiser Foundation Research Institute
$62M
UC Irvine
$125M
UC Davis
$199M
USC
$207M
Scripps Research Institute
$211M
UCLA
$379M
Stanford University
$400M
UC San Diego
$424M
UC San Francisco
$573M
Top 20 California Organizations
Receiving NIH Funding
2016*
California Institute of Technology
Sanford Burnham Prebys Medical Discovery Institute
Cedars-Sinai Medical Center
Beckman Research Institute/City Of Hope
J.David Gladstone Institutes
Salk Institute For Biological Studies
UC Santa Cruz
La Jolla Institute for Allergy and Immunolgy
Northern California Institute for Research and Education
RAND Corporation
$59M
$54M
$47M
$42M
$33M
$33M
$32M
$28M
$27M
$25M
11*
3
2 3
4
4
2
2
2
4
SOURCE:Academic Ranking of World Universities,Shanghai Ranking Consultancy
*Stanford University,UC Berkeley,California Institute of Technology,
UCLA,UC San Diego,UC San Francisco,UC Santa Barbara,USC,UC Irvine,
UC Davis and UC Santa Cruz
SOURCE:NSF/NIH/USED/USDA/NEH/NASA; Survey of Earned Doctorates,2014
Doctoral Recipients in Life Sciences Disciplines
Top 10 states,2014
Total life sciences doctoral degrees
California
New York
Texas
Massachusetts
Pennsylvania
Ohio
Maryland
Florida
North Carolina
Illinois
California’s stellar
academic prowess was
on full display with
more than 1,300 life
science doctorates
awarded in 2014.
1,318
909
904
667
627
463
459
407
451
504
2016*
Academic Excellence
California’s commitment to education is one of the engines
that drive life sciences innovation. The state boasts 11
universities in the world’s top 100, according to the Shanghai
Index. California graduated more science and engineering
PhDs in 2014 than any other state with 4,984. New York
places second with 3,125.
Educational excellence attracts government investment.
California continues to lead the nation in grants from the
National Institutes of Health (NIH): 7,521 awards for nearly
$3.6 billion, 15.4 percent of total NIH grant funding in federal
fiscal year 2016. Of the top 20 California institutions receiving
NIH grants, seven are part of the University of California
(UC) system.
California also led the country in Small Business Innovation
Research (SBIR) and Small Business Technology Transfer
(STTR) funding, receiving 381 awards, totaling $176 million.
Number of Universities in the World Top 100
Shanghai Index,2016 rankings
California
New York
Pennsylvania
Texas
Illinois
11
4
4
4
3
* Massachusetts
Maryland
Minnesota
New Jersey
North Carolina
3
2
2
2
2
Emerging Los Angeles
For years, the Bay Area and San Diego have been the two
poles of California’s entrepreneurial life sciences culture.
Despite its size and strength in entertainment, agriculture
and other sectors, Los Angeles has remained relatively
quiet. The city is starting to play catch-up and has made
huge progress in the past few years.
“We’re where San Francisco and San Diego were 20 years
ago,” says Shlomo Melmed, MD, executive vice president
of Academic Affairs and Dean of the medical
faculty at Cedars-Sinai.
Melmed points to several factors that may have
previously slowed LA’s emergence: expensive
real estate, no central research hub, few
academic medical centers. UCLA and USC
graduates have created startups – they’ve just
done it elsewhere.
“Los Angeles metro area produces more biology
graduates than any other city in America,” says
Llewellyn Cox, PhD, who founded Lab Launch, a biotech
incubator network based in Monrovia. “But all these UCLA
and USC spinouts seem to start up in San Francisco or San
Diego. Lab Launch was born out of the frustration of
watching our friends leave town to start businesses.”
This disparity has not gone unnoticed. Led by Supervisor
Mark Ridley-Thomas, the Los Angeles County Board of
Supervisors recently earmarked $3 million to fund another
bioscience incubator, LA BioMed.
Cox is excited by the general business dynamism in Los
Angeles and sees life sciences startups plugging into LA’s
existing industries, such as agriculture.
“Look at cellular agriculture,” says Cox. “The technology
is biotech but once you have a product, you’re in the food
industry, your partners are going to be food
people.”
At a different level, Cedars-Sinai has been spinning
off companies from its research for more than 30
years, developing a test to detect viruses in donated
blood, heart imaging software and therapies for
inflammatory bowel disease. Their tech transfer
has shown continuing growth.
Despite the relative dearth of startups, Los Angeles
County employs around 20 percent of California’s
life sciences workforce. Both Cox and Melmed anticipate
continued expansion.
“I think there’s going to be tremendous life science
investment in population health management: software,
accounting, patient management,” says Melmed. “Cancer
will drive it because of our large, aging population and high
cancer incidence growth rate.”
Los Angeles Spotlight
SOURCES:Bureau of Labor Statistics Quarterly Census of Employment and Wages; 2012 Economic Census
* 2016 data based on projection from the first two quarters
SOURCE:Rock Health Digital Health Funding Database
Los Angeles County Digital Health
Venture Capital Investment
2014-2016*
Investment
2015
2016*
$375M
$68M
2014 $431M
Wholesale Trade
12,858
Research &
Development,
Testing Labs
11,198
Medical Devices,
Instruments,Diagnostics
11,867
Biopharmaceuticals
8,177
Academic Research
12,450
Biorenewables
624
Total Life Sciences Employment
in Los Angeles County,2015
TOTAL
57,174
22%
14%
1%
21%
20%
22%
Average Life Sciences Wages
in Los Angeles County,2015
$73,368
Los Angeles County employed 57,174 in the life sciences fields
in 2015,a 1.7 percent increase over 2014.
The average salary for a life
sciences worker in Los Angeles
County is $73,368; California
average salary for life sciences
workers is $116,484.
Twenty percent
of California’s
287,200 life
sciences employees
work in Los Angeles
County.
Top Los Angeles County NIH Funding
2016* (excludes R&D contracts)
$760.1million*Updated through Oct.3,2016
SOURCE:National Institutes of Health
AWARDS FUNDING
TOTAL:
University of California,Los Angeles
University of Southern California
California Institute of Technology
Cedars-Sinai Medical Center
Beckman Research Institute/City Of Hope
RAND Corporation
$378.8M
$207.2M
$59.4M
$47.4M
$41.9M
$25.4M
824
400
130
105
90
55
Shlomo Melmed,MD
Keeping California on Track
The life sciences sector is an incredibly valuable asset for
California. While the focus is life-saving medical technologies,
that is hardly the limit of the industry’s impact. Researchers
and companies are also working on new ways to provide
sustainable energy and increase the world’s food supply.
The life sciences directly employ more than a quarter of a
million people in California, providing economic benefits for
communities and the state as a whole. These jobs are diffused
to communities throughout the state.
Factorintheinvestmentslifesciencescompaniesandacademic
institutions attract – through venture capital, NIH grants and
other sources – and we can see the immense value these
organizations bring to our state.
However, as strong as the life sciences enterprise may be in
California, we must never forget that this is an incredibly
competitive sector. The state must continue its longstanding
tradition of supporting world-class educational institutions
while encouraging a more business-friendly environment.
We must continue to nurture the biomedical innovation that
has made the Golden State a life sciences powerhouse.
We are committed to working with state and national
policymakers, industry leaders, patient groups and other
stakeholders to ensure that patients have access to excellent,
affordable care. That means reducing the barriers that keep
cutting-edge medicines away from patients, streamlining the
therapeutic pipeline and safeguarding intellectual property.
In addition, we must continue to support the Brain Research
through Advancing Innovative Neurotechnologies (BRAIN),
Precision Medicine and other exciting research initiatives.
By championing innovation, we can measurably improve
human health and quality of life.
SOURCES:Bureau of Labor Statistics Quarterly Census of Employment and Wages;
2012 Economic Census
AVG.ANNUAL SALARYCLUSTER
Average Life Sciences Wages by Cluster
in California,2015
Sacramento Area
$56,215
$59,893
Ventura and Santa Barbara counties
$64,500Riverside and San Bernardino counties
$73,368
Other Southern California
Other Northern California
$94,324
San Diego County
$117,099
Orange County
$138,951
Los Angeles County
$162,226Bay Area
$200,018
$116,484California average
Graphics and Design
Paul Horn
Special to CLSA
Writing
Josh Baxt
Baxt Communications
Economic Analysis
Kristen Soderberg Bernie
Manager,Health Policy
Economics
PwC
Project Team
Will Zasadny
Associate Director,Communications
California Life Sciences Association
Paula Finkbeiner
Manager,Pharmaceutical &
Life Sciences Advisory
PwC
Todd Gillenwater
EVP,Advocacy & External Relations
California Life Sciences Association
Report Authors
Sara Radcliffe
President & CEO
California Life Sciences Association
Peter Claude
Partner,Pharmaceutical &
Life Sciences Advisory
PwC
CLSA SAN DIEGO
9191Towne Centre Dr.,
Suite 450
San Diego,CA
92122
© 2016 California Life Sciences Association
www.CALifeSciencesIndustry.com
Any trademarks included are trademarks of their respective owners and are not affiliated with,nor endorsed by,PricewaterhouseCoopers LLP,its subsidiaries or affiliates.
See methodology and more at
CLSA BAY AREA
250 E.Grand Ave.,Suite 26
South San Francisco,CA
94080
CLSAWASHINGTON,D.C.
1350 I St.NW,Suite 830
Washington,D.C.
20005
CLSA LOS ANGELES
605 E.Huntington Dr.,
Suite 103
Monrovia,CA
91016
CLSA SACRAMENTO
1201 K St.,Suite 1840
Sacramento,CA
95814
California Life Sciences Association (CLSA) is the state’s
largest and most influential life sciences advocacy and
business leadership organization.With offices in
Sacramento,San Diego,South San Francisco,Los
Angeles and Washington DC,CLSA works closely with
industry,government,academia and others to shape
public policy,improve access to innovative
technologies and grow California’s life sciences
economy.CLSA serves biotechnology,pharmaceutical,
medical device and diagnostics companies,research
universities and institutes,investors and service
providers throughout the Golden State.CLSA was
founded in 2015 when the Bay Area Bioscience
Association (BayBio) and the California Healthcare
Institute (CHI) merged.Visit CLSA at
www.califesciences.org,and follow us on Twitter
@CALifeSciences,Facebook,Instagram,LinkedIn and
YouTube.
PwC’s Pharmaceutical and Life Sciences practice,part
of PwC’s Health Industries Group,is a leading advisor
to public and private organizations across the entire
health industries landscape.This group also includes
PwC’s Health Research Institute,which provides new
intelligence,perspectives,and analysis on trends
affecting health-related industries.We provide industry-
focused assurance,tax and advisory services to build
public trust and enhance value for our clients and their
stakeholders.More than 223,000 people in 157
countries across our network of firms share their
thinking,experience and solutions to develop fresh
perspectives and practical advice.For more information
visit:www.pwc.com/us/pharma.
Special Thanks to Evaluate
EvaluateMedTech®
www.evaluate.com

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CLSA & PwC 2017 CA Life Sciences Industry Report Final

  • 2. Peter Claude Partner, Pharmaceutical & Life Sciences Advisory PwC Sara Radcliffe President & CEO California Life Sciences Association (CLSA) Sincerely, Jerry Brown Governor of California Letter from the Governor California has a unique history of innovation: from agriculture to the film industry to information technology to life sciences. As a group, Californians have repeatedly devised new technologies, and better ways to use old technologies, to solve some of the world’s most intractable problems. As the birthplace of biotechnology, California prides itself on the innovation born in the life sciences in particular. Genomic technologies help us detect disease, while new therapies and devices help treat them. Biofuels provide clean, sustainable energy that will ease our dependence on foreign sources and help solve climate change. Digital health technologies help prevent disease and give patients better tools to manage their conditions. The California Life Sciences Association is an important partner in our efforts to foster a stronger biomedical industry and boost job growth in California. This state is committed to supporting this critical sector, both economically and through strong public policy. Life Sciences is a cornerstone of California’s economy and I look forward to working with leaders in this sector as we continue to contribute to a healthier society, strengthen our economy and advance new medical technologies. Sincerely, Letter to Stakeholders When people envision a vibrant life sciences community, they think of California. It begins with the state’s public and private research universities and institutes, which produce a highly trained scientific workforce, invaluable insights into human biology and world- changing research. In some cases, these breakthroughs might be developed into a product – a drug that targets a cancer-driving protein, for example. A pharmaceutical, biotechnology or medical device company licenses the intellectual property, or the researchers find investors and create their own start-up. Years and millions of dollars later, the treatment may enter the clinic and improve patient care. California succeeds because the state’s political, academic and business leaders are committed to a strong life sciences ecosystem. Smart policy decisions have played a role in continued success. Because the state has long supported higher education, California produces more biology and engineering PhDs than any other state. In 2004, when national policy shifted away from stem cell research, California voters approved Proposition 71, which funded the California Institute for Regenerative Medicine (CIRM). This commitment led to groundbreaking basic and translational research, accelerating stem cell therapies into clinical trials and making California the epicenter for stem cell research. By most measures, the California life sciences industry is strong and growing. There are 3,040 life sciences companies, including industry-leading global corporations, entrepreneurial startups and everything in-between. California’s life sciences industry directly employs more than 287,000 people, generated $147.7 billion in revenue in 2015 and has 1,269 medicines – and even more devices and diagnostics – in the pipeline to boost patient care. This report lays out the many strengths that define the life sciences in California, but the work must continue. Few industries can do so much to improve quality of life. We must continuously renew our commitment to these efforts.
  • 3. Direct Employment Indirect and Induced Employment Total Direct,Indirect and Induced Jobs: 884,200 597,000287,200 Life Sciences Industry in California,2015 (estimated) Total revenue Direct employment Total wages and salaries Average annual life sciences industry wage Total NIH grants awarded (2016) Total venture capital investments (2016) Total biomedical exports Direct federal taxes Direct state and local taxes $147.7 billion 287,200 $33.5 billion $116,484 $3.6 billion $4.4 billion $22 billion $10.5 billion $5.1 billion 1 California’s life sciences community continues to grow, with 3,040 life sciences companies – 192 more than the previous year – producing new technologies and boosting the state’s economy. In 2015, the Golden State’s life sciences industry employed more than 287,000 people. This highly trained and diverse workforce helped develop novel drugs, devices and diagnostics, while also exploring other applications, such as leveraging biotechnology to produce sustainable energy. Life sciences companies have been incredibly successful. As of September 7, 2016, 1,269 drugs from California companies were in the FDA pipeline. In 2015, 264 new devices developed by California companies were approved. In addition, these companies produced more than $147 billion in revenue, received $4.4 billion in venture capital funding, drove $22 billion in exports and paid $15.6 billion in federal and California state and local taxes. Academic excellence, forward-thinking public policy and the commitment of thousands of entrepreneurs and business leaders has translated into new ways to address some of the world’s most severe medical conditions: cancer, hepatitis, HIV, rare diseases and many others. These efforts help power our economy, support job creation and improve health for millions around the world. California’s Unique Life Sciences Ecosystem Top Life Sciences Employment in California,2011 -2015 2015 2014 2013 2012 ANNUAL COMPOUND GROWTH SOURCES:Bureau of Labor Statistics Quarterly Census of Employment and Wages; 2012 Economic Census; BloombergSOURCES:Bureau of Labor Statistics Quarterly Census of Employment and Wages; 2012 Economic Census California New York New Jersey Indiana Pennsylvania Illinois Massachusetts Minnesota North Carolina Florida Texas Michigan Utah Wisconsin Ohio Biopharmaceutical and Medical Device Employment by state,2011-2015 2015 ranking by employment Employment growth, 2011-2015 Employees, change from 2011 122,535 37,556 36,838 35,866 35,539 34,330 33,414 32,897 31,497 29,181 26,721 21,675 18,425 16,000 15,804 7,702 (-1,464) (-8,473) 695 (-3,131) 2,203 1,924 (-124) 1,721 2,346 1,791 1,324 3,691 (-372) (-693) -8% 6% 9% -<1% -19% 7% 7% 2% 6% -4% 7% 7% 25% -2% -4% 3 7 1 2 4 5 6 8 10 9 11 14 12 13 15 Medical Device and Equipment Manufacturing 1,714 Biotechnology and Pharmaceutical 1,326 Number of Life Sciences Companies in California,2015 TOTAL 3,040 Medical Devices, Instruments, Diagnostics 0.1% 74,394 74,642 74,616 74,549 Research & Development, Testing Labs 3.7% 62,290 64,007 66,383 69,542 Wholesale Trade (e.g.distribution of pharmaceuticals or hospital equipment) 2.9% 45,795 46,424 48,380 49,884 Biorenewables (e.g.organic compound mfg.,ethanol mfg.) 3.1% 3,306 3,320 3,365 3,624 Biopharmaceuticals 2.7% 44,245 45,187 47,171 47,985 Academic Research 1.7% 39,509 40,191 40,850 41,617
  • 4. 2 Producing Drugs, Devices, Diagnostics and Digital Health Technologies Even more importantly, the total number of therapies in clinical trials continues to grow, ultimately providing more choices for patients and physicians as they work to overcome disease. One of the many strengths of California’s life sciences community is its eagerness to embrace new ideas. The digital healthsectorisonlyafewyearsold,butisshowingtremendous potential to improve care. Innovative digital technologies can keep congestive heart failure patients out of the hospital, help patients comply with their drug regimens, support treatment for PTSD and much more. California companies lead the nation in attracting venture capital (VC) investment for innovative digital health technologies. Great ideas often begin in academic labs as scientists research human biology and look for better ways to diagnose and treat disease: a new marker to track cancer progression; a unique molecule that controls an aberrant protein; a digital device that helps patients better manage their heart disease. California’s life sciences community does an excellent job at moving these ideas out of labs, through various regulatory processes and ultimately to patients. In 2016, California biopharmaceutical companies had 404 therapies in the FDA pipeline for cancer, 134 for infectious diseases and 129 for central nervous system disorders. Similarly, the state’s medical device sector saw 264 products successfully through the FDA: 10 premarket approvals (PMA), 250 510(k) clearances and four de novo’s. Medical Device Approvals by companies headquartered in California,2015 SOURCE:EvaluateMedTech®,August 2016 PMA - First Approval TOTAL: 264 10 250 4 510(k) Clearance De Novo * 2016 data based on projection from the first two quarters California New York Massachusetts Texas Illinois Top 5 States for Digital Health VC Funding 2015 vs.2016* 2015 2016* InvestmentInvestment $2.1B $540M $346M $47M $117M $1.6B $730M $392M $231M $198M California Medicines by Therapeutic Area Investigational New Drug (IND) products through Phase III clinical trials Cardiovascular Therapies in Pipeline TOTAL: 1,269 Miscellaneous Genitourinary Respiratory Cancer Infectious Diseases (incl.HIV) Central Nervous System Hormonal Systems/Nephrology* Immune System Musculoskeletal Pain Eye/Ear Hematological Gastrointestinal Dermatology Diagnostic/Imaging/Delivery SOURCE:Biopharm Insight,INDs filed through Phase III,Sept.7,2016 *incl.Diabetes 404 134 129 70 100 69 52 41 60 53 43 39 44 16 11 4 Wearables/Biosensing Consumer Health,Wellness1 Digital Diagnostics,Devices,Therapies Care Management,Administration2 Analytics/Big Data Life Sciences Tools3 Personalized Medicine Other Remote Patient Monitoring Telemedicine California Digital Health VC Investment by category,2016* 1 Includes consumer health information,enterprise wellness,healthcare consumer engagement and personal health tools and tracking * 2016 data based on projection from the first two quarters 2 Includes the care coordination,general care management,hospital administration, physician practice management,population health management,hospital CRM and marketing and EHR/clinical workflow categories 3 Includes the life sciences commercialization tools and life sciences R&D tools categories Investment $384M $361M $312M $189M $131M $90M $61M $59M $36M $20M Bay Area** San Diego County Los Angeles County Orange County Sacramento Area*** ** Includes Alameda,Contra Costa,Marin,Napa,San Francisco,San Mateo,Santa Clara and Sonoma counties * 2016 data based on projection from the first two quarters California Digital Health VC Investment by region,2015 vs.2016* *** Includes Sacramento,Butte,El Dorado,Nevada,Placer,Solano,Sutter,Yolo andYuba counties Investment Investment 2015 2016* $1.6B $53M $375M $72M $2M $1.4B $173M $68M $0 $0 SOURCE:Rock Health Digital Health Funding Database
  • 5. 3 Driving Economic Growth California has a strong and diverse economy, powered by information technologies, agriculture, energy, tourism and the life sciences. Second to life-saving products, excellent jobs may be the biomedical community’s greatest contribution to the state. In 2015, California life sciences companies employed more than 287,000 people, a two percent increase over 2014. These jobs ran the gamut from academic research to bioengineering to wholesale trade. Even more impressive, the industry generated 597,000 indirect and induced jobs, bringing the total to 884,200. In addition, the average wage for California life sciences employees topped $116,000 and total wages exceeded $33 billion. While biomedical growth has been historically stronger in the San Francisco Bay Area and San Diego, new, entrepreneurial companies are becoming more prevalent in Los Angeles, a trend that could bode well for the region (see Los Angeles insert). Total Life Sciences Employment by Cluster as a percent of the total,2015 SOURCES:Bureau of Labor Statistics Quarterly Census of Employment and Wages; 2012 Economic Census 24% 2% 3% 13% 20% 15% 4% 1% 4% EMPLOYEES * Includes Alameda,Contra Costa,Marin,Napa,San Francisco,San Mateo,Santa Clara and Sonoma counties **** Includes Imperial,Kern and San Luis Obispo counties ***IncludesMonterey,Kings,Tulare,Inyo,SanBenito,Fresno,Mono,SantaCruz,Merced,Madera,Stanislaus,Mariposa, Tuolumne,San Joaquin,Calaveras,Alpine,Amador,Mendocino,Lake,Colusa,Sierra,Glenn,Plumas,Humboldt, Trinity,Tehama,Lassen,Shasta,Del Norte,Siskiyou and Modoc counties **Includes Sacramento,Butte,El Dorado,Nevada,Placer,Solano,Sutter,Yolo andYuba counties Note: Clusters do not sum to total due to data suppression at the county level Total Life Sciences Employment by Cluster in California,2015 Sacramento Area** 2,592 5,874 Ventura and Santa Barbara counties 9,543 Riverside and San Bernardino counties 11,009 Other Southern California**** Other Northern California*** 11,628 San Diego County 38,694 Orange County 43,327 Los Angeles County 57,174 Bay Area* 68,313 287,200TOTAL CLUSTER Life Sciences Employment vs. Other High-Tech Sectors in California,2015 Lifesciences industry Aerospace Computer and peripheral equipment mfg. Motion pictures Other electronic equipment mfg. Internet,telecom- munications, data processing 76,032 147,934 163,907 192,069 412,749 287,200 California Life Sciences Wages by sector,2015* Academic Research Biopharmaceuticals Biorenewables Medical Devices, Instruments, Diagnostics Research & Development, Testing Labs Wholesale Trade TOTAL AVG.WAGE TOTAL WAGES $71,707 $157,352 $72,831 $95,946 $148,125 $116,484* $2.98B $7.55B $264M $7.15B $10.3B $33.5B *Total average $101,022 $5.2B
  • 6. 4 Attracting Major Investments Because California companies have such a strong track record of translating lab science into products that help patients and consumers, the state has long been a magnet for investment. As in past years, California was the top state for life sciences venture capital (VC) investment in 2016* with $4.4 billion: $3.3 billion in biotech and $1.1 billion in medical devices. Massachusetts was second with $2.9 billion. The life sciences are second only to software in California for VC funding. Across biotech, investment declined in later-stage companies, but increased dramatically for seed stage startups. Medical device investment also increased at seed and early stage. VC investment in digital health in 2016* was significant at $1.6 billion, but declined from $2.1 billion in 2015. Still, California led the nation, more than doubling New York’s $730 million. These investments funded wearables and biosensors, consumer health and wellness technologies, digital diagnostics, devices and therapies and other areas. Mergers and acquisitions slowed considerably through early Sept. 2016 to 46, compared to 99 in 2015. Life sciences IPOs also declined to three, compared to 25 in 2015. These numbers reflect weak national M&A and IPO markets. *2016 data based on projections from the first two quarters. Massachusetts New York Pennsylvania North Carolina Texas Michigan Missouri Minnesota Kentucky California Top 10 States for Life Sciences Venture Capital Investment 2014-2016* 2016* 2015 2014 $4.43B $2.94B $352M $240M $237M $153M $143M $102M $97M $94M $4.51B $2.70B $173M $334M $249M $234M $112M $152M $135M $12M $3.90B $2.25B $47M $286M $181M $269M $129M $37M $235M $19M SOURCES:PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters; Rock Health Digital Health Funding Database 2014 $731M $1.37B$781M$1.91B 2014 $218M $540M$345M$614M 2014 $380M $774M$1.27B$3.57B 2014 $56M$18M$157M$373M 2016* $534M $1.17B$465M$1.38B 2015 $524M $1.45B$550M$1.49B 2016* $77M $247M$368M$531M 2015 $245M $561M$406M$802M 2016* $462M $621M$1.89B$3.93B 2015 $319M $764M$2.06B$4.76B 2016* $24M $79M$603M$1.44B 2015 $23M $60M$377M$613M See methodology for full sector definitions*2016 data based on projection from first two quarters California U.S. Venture Capital Investment, Biotech and Medical Devices by stage,U.S.and California,2014-2016* Seed stage Early stage Expansion stage Later stage MEDICAL DEVICESBIOTECH $4.5B $2.1B SOURCES:PricewaterhouseCoopers/National Venture Capital Association MoneyTree™ Report based on data from Thomson Reuters; Rock Health Digital Health Funding Database * 2016 data based on projection from the first two quarters Digital Health VC Investment U.S.and California,2015 vs.2016* $59.8B $34.3B $56.0B $33.2B $4.1B $1.6B 2015 2016* U.S.VC investment Calif.VC investment TOTAL U.S.VC INVESTMENT TOTAL DIGITAL HEALTH VC INVESTMENT 2015 2016* Note:The Los Angeles and Orange County region is comprised of Southern California (excluding the San Diego region),the Central Coast,and the San Joaquin Valley; the Sacramento/Northern California region is comprised of Northeastern California; the San Diego Region is comprised of the San Diego area;and the Bay Area and SiliconValley region is comprised of Northern California,the Bay Area and the Northern Coastline. Life Sciences VC Investment in California,by region,2015 vs.2016* 2016* 2015 $7M Los Angeles/ Orange County Sacramento/ Northern Calif. San Diego Bay Area & Silicon Valley $0 $244M $426M $1.1B $614M $3.1B $3.5B
  • 7. 5 Top 5 States Receiving NIH Grants 2015 vs.2016* 2015 California Massachusetts New York Pennsylvania North Carolina Funding Awards 7,558 4,853 4,825 3,339 2,060 7,521 4,960 4,866 3,412 2,148 $3.40B $2.35B $1.99B $1.47B $972M $3.58B $2.52B $2.15B $1.54B $1.07B Note: Data excludes R&D contracts and projects funded through the American Recovery and Reinvestment Act *2016 data reflect awards through October 3,2016 SOURCE:National Institutes of Health UC Berkeley $112M Kaiser Foundation Research Institute $62M UC Irvine $125M UC Davis $199M USC $207M Scripps Research Institute $211M UCLA $379M Stanford University $400M UC San Diego $424M UC San Francisco $573M Top 20 California Organizations Receiving NIH Funding 2016* California Institute of Technology Sanford Burnham Prebys Medical Discovery Institute Cedars-Sinai Medical Center Beckman Research Institute/City Of Hope J.David Gladstone Institutes Salk Institute For Biological Studies UC Santa Cruz La Jolla Institute for Allergy and Immunolgy Northern California Institute for Research and Education RAND Corporation $59M $54M $47M $42M $33M $33M $32M $28M $27M $25M 11* 3 2 3 4 4 2 2 2 4 SOURCE:Academic Ranking of World Universities,Shanghai Ranking Consultancy *Stanford University,UC Berkeley,California Institute of Technology, UCLA,UC San Diego,UC San Francisco,UC Santa Barbara,USC,UC Irvine, UC Davis and UC Santa Cruz SOURCE:NSF/NIH/USED/USDA/NEH/NASA; Survey of Earned Doctorates,2014 Doctoral Recipients in Life Sciences Disciplines Top 10 states,2014 Total life sciences doctoral degrees California New York Texas Massachusetts Pennsylvania Ohio Maryland Florida North Carolina Illinois California’s stellar academic prowess was on full display with more than 1,300 life science doctorates awarded in 2014. 1,318 909 904 667 627 463 459 407 451 504 2016* Academic Excellence California’s commitment to education is one of the engines that drive life sciences innovation. The state boasts 11 universities in the world’s top 100, according to the Shanghai Index. California graduated more science and engineering PhDs in 2014 than any other state with 4,984. New York places second with 3,125. Educational excellence attracts government investment. California continues to lead the nation in grants from the National Institutes of Health (NIH): 7,521 awards for nearly $3.6 billion, 15.4 percent of total NIH grant funding in federal fiscal year 2016. Of the top 20 California institutions receiving NIH grants, seven are part of the University of California (UC) system. California also led the country in Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) funding, receiving 381 awards, totaling $176 million. Number of Universities in the World Top 100 Shanghai Index,2016 rankings California New York Pennsylvania Texas Illinois 11 4 4 4 3 * Massachusetts Maryland Minnesota New Jersey North Carolina 3 2 2 2 2
  • 8. Emerging Los Angeles For years, the Bay Area and San Diego have been the two poles of California’s entrepreneurial life sciences culture. Despite its size and strength in entertainment, agriculture and other sectors, Los Angeles has remained relatively quiet. The city is starting to play catch-up and has made huge progress in the past few years. “We’re where San Francisco and San Diego were 20 years ago,” says Shlomo Melmed, MD, executive vice president of Academic Affairs and Dean of the medical faculty at Cedars-Sinai. Melmed points to several factors that may have previously slowed LA’s emergence: expensive real estate, no central research hub, few academic medical centers. UCLA and USC graduates have created startups – they’ve just done it elsewhere. “Los Angeles metro area produces more biology graduates than any other city in America,” says Llewellyn Cox, PhD, who founded Lab Launch, a biotech incubator network based in Monrovia. “But all these UCLA and USC spinouts seem to start up in San Francisco or San Diego. Lab Launch was born out of the frustration of watching our friends leave town to start businesses.” This disparity has not gone unnoticed. Led by Supervisor Mark Ridley-Thomas, the Los Angeles County Board of Supervisors recently earmarked $3 million to fund another bioscience incubator, LA BioMed. Cox is excited by the general business dynamism in Los Angeles and sees life sciences startups plugging into LA’s existing industries, such as agriculture. “Look at cellular agriculture,” says Cox. “The technology is biotech but once you have a product, you’re in the food industry, your partners are going to be food people.” At a different level, Cedars-Sinai has been spinning off companies from its research for more than 30 years, developing a test to detect viruses in donated blood, heart imaging software and therapies for inflammatory bowel disease. Their tech transfer has shown continuing growth. Despite the relative dearth of startups, Los Angeles County employs around 20 percent of California’s life sciences workforce. Both Cox and Melmed anticipate continued expansion. “I think there’s going to be tremendous life science investment in population health management: software, accounting, patient management,” says Melmed. “Cancer will drive it because of our large, aging population and high cancer incidence growth rate.” Los Angeles Spotlight SOURCES:Bureau of Labor Statistics Quarterly Census of Employment and Wages; 2012 Economic Census * 2016 data based on projection from the first two quarters SOURCE:Rock Health Digital Health Funding Database Los Angeles County Digital Health Venture Capital Investment 2014-2016* Investment 2015 2016* $375M $68M 2014 $431M Wholesale Trade 12,858 Research & Development, Testing Labs 11,198 Medical Devices, Instruments,Diagnostics 11,867 Biopharmaceuticals 8,177 Academic Research 12,450 Biorenewables 624 Total Life Sciences Employment in Los Angeles County,2015 TOTAL 57,174 22% 14% 1% 21% 20% 22% Average Life Sciences Wages in Los Angeles County,2015 $73,368 Los Angeles County employed 57,174 in the life sciences fields in 2015,a 1.7 percent increase over 2014. The average salary for a life sciences worker in Los Angeles County is $73,368; California average salary for life sciences workers is $116,484. Twenty percent of California’s 287,200 life sciences employees work in Los Angeles County. Top Los Angeles County NIH Funding 2016* (excludes R&D contracts) $760.1million*Updated through Oct.3,2016 SOURCE:National Institutes of Health AWARDS FUNDING TOTAL: University of California,Los Angeles University of Southern California California Institute of Technology Cedars-Sinai Medical Center Beckman Research Institute/City Of Hope RAND Corporation $378.8M $207.2M $59.4M $47.4M $41.9M $25.4M 824 400 130 105 90 55 Shlomo Melmed,MD
  • 9. Keeping California on Track The life sciences sector is an incredibly valuable asset for California. While the focus is life-saving medical technologies, that is hardly the limit of the industry’s impact. Researchers and companies are also working on new ways to provide sustainable energy and increase the world’s food supply. The life sciences directly employ more than a quarter of a million people in California, providing economic benefits for communities and the state as a whole. These jobs are diffused to communities throughout the state. Factorintheinvestmentslifesciencescompaniesandacademic institutions attract – through venture capital, NIH grants and other sources – and we can see the immense value these organizations bring to our state. However, as strong as the life sciences enterprise may be in California, we must never forget that this is an incredibly competitive sector. The state must continue its longstanding tradition of supporting world-class educational institutions while encouraging a more business-friendly environment. We must continue to nurture the biomedical innovation that has made the Golden State a life sciences powerhouse. We are committed to working with state and national policymakers, industry leaders, patient groups and other stakeholders to ensure that patients have access to excellent, affordable care. That means reducing the barriers that keep cutting-edge medicines away from patients, streamlining the therapeutic pipeline and safeguarding intellectual property. In addition, we must continue to support the Brain Research through Advancing Innovative Neurotechnologies (BRAIN), Precision Medicine and other exciting research initiatives. By championing innovation, we can measurably improve human health and quality of life. SOURCES:Bureau of Labor Statistics Quarterly Census of Employment and Wages; 2012 Economic Census AVG.ANNUAL SALARYCLUSTER Average Life Sciences Wages by Cluster in California,2015 Sacramento Area $56,215 $59,893 Ventura and Santa Barbara counties $64,500Riverside and San Bernardino counties $73,368 Other Southern California Other Northern California $94,324 San Diego County $117,099 Orange County $138,951 Los Angeles County $162,226Bay Area $200,018 $116,484California average Graphics and Design Paul Horn Special to CLSA Writing Josh Baxt Baxt Communications Economic Analysis Kristen Soderberg Bernie Manager,Health Policy Economics PwC Project Team Will Zasadny Associate Director,Communications California Life Sciences Association Paula Finkbeiner Manager,Pharmaceutical & Life Sciences Advisory PwC Todd Gillenwater EVP,Advocacy & External Relations California Life Sciences Association Report Authors Sara Radcliffe President & CEO California Life Sciences Association Peter Claude Partner,Pharmaceutical & Life Sciences Advisory PwC CLSA SAN DIEGO 9191Towne Centre Dr., Suite 450 San Diego,CA 92122 © 2016 California Life Sciences Association www.CALifeSciencesIndustry.com Any trademarks included are trademarks of their respective owners and are not affiliated with,nor endorsed by,PricewaterhouseCoopers LLP,its subsidiaries or affiliates. See methodology and more at CLSA BAY AREA 250 E.Grand Ave.,Suite 26 South San Francisco,CA 94080 CLSAWASHINGTON,D.C. 1350 I St.NW,Suite 830 Washington,D.C. 20005 CLSA LOS ANGELES 605 E.Huntington Dr., Suite 103 Monrovia,CA 91016 CLSA SACRAMENTO 1201 K St.,Suite 1840 Sacramento,CA 95814 California Life Sciences Association (CLSA) is the state’s largest and most influential life sciences advocacy and business leadership organization.With offices in Sacramento,San Diego,South San Francisco,Los Angeles and Washington DC,CLSA works closely with industry,government,academia and others to shape public policy,improve access to innovative technologies and grow California’s life sciences economy.CLSA serves biotechnology,pharmaceutical, medical device and diagnostics companies,research universities and institutes,investors and service providers throughout the Golden State.CLSA was founded in 2015 when the Bay Area Bioscience Association (BayBio) and the California Healthcare Institute (CHI) merged.Visit CLSA at www.califesciences.org,and follow us on Twitter @CALifeSciences,Facebook,Instagram,LinkedIn and YouTube. PwC’s Pharmaceutical and Life Sciences practice,part of PwC’s Health Industries Group,is a leading advisor to public and private organizations across the entire health industries landscape.This group also includes PwC’s Health Research Institute,which provides new intelligence,perspectives,and analysis on trends affecting health-related industries.We provide industry- focused assurance,tax and advisory services to build public trust and enhance value for our clients and their stakeholders.More than 223,000 people in 157 countries across our network of firms share their thinking,experience and solutions to develop fresh perspectives and practical advice.For more information visit:www.pwc.com/us/pharma. Special Thanks to Evaluate EvaluateMedTech® www.evaluate.com