The document discusses North Carolina's large and successful life sciences cluster. It describes the state's strengths as a place for biotechnology, including its major research universities and supportive ecosystem. It outlines the programs of the North Carolina Biotechnology Center, which has supported the cluster for 30 years through research funding, company creation initiatives, economic development efforts, and workforce development. As a result of these long-term efforts, North Carolina now has over 560 biotech companies, 60,000 employees in the industry, and the biotech sector generates $41 billion annually for the state economy.

1. North Carolina’s Life Sciences Cluster
Impact of the North Carolina
Biotechnology Center
21 August 2013
Mark Lombard, MBA
Program Director, Bioscience Industrial Development
North Carolina Biotechnology Center

2. North Carolina, USA
NORTH CAROLINA BIOTECHNOLOGY CENTER

3. Life Sciences in North Carolina
• Place
– 3 major research universities in a 30 mile radius
– Ecosystem of supportive organizations, risk capital,
entrepreneurial culture
• People
– Collaboration among visionary business, academia, gov’t leaders
– Attract and retain scientific and business talent
• Programs
– Company creation, attraction, retention, expansion programs
– Innovative workforce development programs
• Patience
– North Carolina Biotechnology Center: 30 years
– Research Triangle Park: 50+ years
NORTH CAROLINA BIOTECHNOLOGY CENTER

4. Brazil and North Carolina
NORTH CAROLINA BIOTECHNOLOGY CENTER

5. NORTH CAROLINA BIOTECHNOLOGY CENTER

6. Brazil and North Carolina
NORTH CAROLINA BIOTECHNOLOGY CENTER

7. Sao Paulo
and North Carolina
Sao Paulo (2012)
North Carolina (2012)
• Population: 41,901,219
• Density: 170/km2
• GDP (2010)
• Population: 9,752,073
• Density: 83/km2
• GDP (2010)
– US$615M
– US$15,322 per capita
• Machinery, auto and
aviation, services, finance,
textiles, oranges, sugar
cane, coffee, life sciences
– $407M
– $42,884 per capita
• Cotton, tobacco, hogs,
chickens, textiles, furniture
• Finance, advanced mfg, IT,
life sciences
NORTH CAROLINA BIOTECHNOLOGY CENTER

8. BIOTECHNOLOGY IN
NORTH CAROLINA
NORTH CAROLINA BIOTECHNOLOGY CENTER

9. Biotechnology:
Heal, Fuel, Feed the World
Global Challenges
• Human/Animal health
• Food availability &
security
• Energy
• Environmental
sustainability
NORTH CAROLINA BIOTECHNOLOGY CENTER

10. Biotech in NC – Large and Diverse
• 3rd Largest Life
Science Cluster in
the US
– Medical Devices &
Diagnostics
– Contract Research &
Manufacturing
– Biopharma
– Agricultural Biotech
560+ Companies
60,000+ Employees
21%
21%
58%
R&D
CRO/Testing
Mfg/Prod

11. Specialization
Biotech in NC – Fastest Growing
Growth Rate
NORTH CAROLINA BIOTECHNOLOGY CENTER

12. Biotech in NC – High Impact Jobs
• Average salary - $78,348
– Nearly double the state’s
private sector average
• 3.6 additional jobs for
each biotech job
• 226,000 total jobs
NORTH CAROLINA BIOTECHNOLOGY CENTER

13. Biotech in NC – Annual Economic Impact
• Direct biotechnology
sector revenues
$41.2 billion
• Employee compensation
$12.7 billion
• State and local revenues
$1.92 billion
NORTH CAROLINA BIOTECHNOLOGY CENTER

14. THE NORTH CAROLINA
BIOTECHNOLOGY CENTER
NORTH CAROLINA BIOTECHNOLOGY CENTER

15. NCBiotech – Mission
To provide long-term
economic and societal
benefits to North
Carolina through
support of biotech
research, business,
education and strategic
policy statewide.
NORTH CAROLINA BIOTECHNOLOGY CENTER

16. NCBiotech – What We Do
• State-funded, private,
non-profit corporation
• Portfolio of programs
– Research
– Business
– Education
– Economic
Development
NORTH CAROLINA BIOTECHNOLOGY CENTER

17. NCBiotech – Programs
Research
Support
Ideas
Company Creation
and Growth
Statewide
Econ Devel
Products, Companies and Jobs
Education, Networking and Other Programs
NORTH CAROLINA BIOTECHNOLOGY CENTER

18. NCBiotech – Programs
Research
Support
Ideas
Company Creation
and Growth
Statewide
Econ Devel
Products, Companies and Jobs
Education, Networking and Other Programs
NORTH CAROLINA BIOTECHNOLOGY CENTER

19. Research Support
• Grant funding for:
– New research ideas
– Build capacity –
equipment/faculty
– University/Company
research projects
• $98 million granted
• $4 to $70 leveraged
NORTH CAROLINA BIOTECHNOLOGY CENTER

20. NCBiotech – Programs
Research
Support
Ideas
Company Creation
and Growth
Statewide
Econ Devel
Products, Companies and Jobs
Education, Networking and Other Programs
NORTH CAROLINA BIOTECHNOLOGY CENTER

21. Company Creation and Growth:
NCBiotech Loan Program
• $50K - $250K low interest loans
• ROI = $117 per $1 loaned

22. Notable Recent Successes
$96 million acquisition
$25 million IPO
BioKier
$1.7 million seed financing
Up to $1.6 million grant
NORTH CAROLINA BIOTECHNOLOGY CENTER

23. Advanced Liquid Logic
Microfluidics Lab Instruments
•
•
•
•
•
•
•
2003: $50,000 CFG
Aug-2004: Company founded
May-2005: $15,000 BDL – 1 employee
Sep-2005: $72,600 SBR – 3 employees
Sep-2006: $160,000 SGL – 6 employees
Jun-2009: $220,500 SGL – 24 employees
2011: Launched products for newborn screening,
genomic sample prep
• 2011-2013: NCBiotech VC events in Palo Alto, Boston, NYC
• Aug-2012 : $100,000 IFP
• Jul-2013 : $96M acquisition by Illumina – 80 employees
– All loans repaid in full + interest and warrants
– >$50 million follow-on funding before acquisition
• Introductions to bankers and investors, NCBIP, Library, Jobs Board,
NCBiotech Partnering 2011-2013, Corporate Communications

24. Heat Biologics
Cell-based Cancer Immunotherapy
•
•
•
•
2008: Company founded in FL
Aug-2011: Recruited to NC
2011-2012: Assistance with investor pitch
2011-2012: NCBiotech VC events in Palo
Alto, Boston
• Nov-2011: $225,000 SGL - 2 NC employees
– Repaid in full with interest + warrants
•
•
•
•
Apr-2012: Industrial Internship Program
Apr-2013: $5 million VC round
Jul-2013: $25 million IPO – NASDAQ:HTBX – 5 NC employees
Investor introductions, partner introductions, foundation
introductions, BATON, Library, Corporate Communications,
NCBiotech Partnering 2012, BIO Pavilion

25. BioKier
“Medicinalize” Gastric Bypass for Diabetes
•
•
•
•
•
•
Nov-2008: Company founded
Oct-2010: Emerging Company Preview
Oct-2010: $250,000 SRL – 2 employees
Oct-2012: Pitch Scrub
Nov-2012: SEBIO Presentation
Apr-2013: Southeast Venture Philanthropy
Summit
• May-2013: $250,000 SGL – 3.5 employees
• Jul-2013: $1.7 million Broadview Ventures, AHA
• Investor introductions, NCBIP, Corporate Communications,
Library, NCBiotech Partnering 2011-2013, LSBDP, Biotech
Forums

26. Eboo Pharmaceuticals
Opioid Modulators for CNS Diseases
•
•
•
•
•
•
•
•
•
•
•
Feb-2012: Company founded
May-2012: $30,000 CIL – 2 NC employees
Jun-2012: Introduction to Biogen IDEC
Jul-2012: SBIR letter of support, recommended MJFF
Oct-2012: Introductions to CEO candidates
Nov-2012: Advice on business plan, investor pitch
Dec-2012: Emerging Company Preview
Feb-2013: Facilitated meeting with Eli Lilly
Apr-2013: Southeast Venture Philanthropy Summit
Jun-2013: Up to $1.6M grant Michael J. Fox Foundation
BATON, Corporate Communications, Library

27. NCBiotech – Programs
Research
Support
Ideas
Company Creation
and Growth
Statewide
Econ Devel
Products, Companies and Jobs
Education, Networking and Other Programs
NORTH CAROLINA BIOTECHNOLOGY CENTER

28. Statewide Offices
– Western (Asheville)
– Greater Charlotte
– Piedmont Triad
(Winston-Salem)
– Research Triangle Park
– Eastern (Greenville)
– Southeastern
(Wilmington)
NORTH CAROLINA BIOTECHNOLOGY CENTER

29. Economic Development
Since July 2010
• 21 projects
• 1,754 employees
Ripple effects:
• 7,803 total jobs
• $490 million in payroll
• $59 million in state and
local revenues
• $2.0B in economic activity
NORTH CAROLINA BIOTECHNOLOGY CENTER

30. Economic Development
Novartis Vaccines
• BIO 2004 in San Francisco
– Chiron
•
•
•
•
•
•
2006: project announced
2009: plant opens
2012: production begins
2012: $36M expansion
2013: $60M expansion
Today: >$1B invested, 700
employees, will grow to
1000
NORTH CAROLINA BIOTECHNOLOGY CENTER

31. Economic Development
Medicago
• Early 2010: introduced by
Canadian Consulate
• Mid 2010: DARPA, ARE
• Late 2010: construction
begins
• Mid 2012: 10M flu doses in
one month
• 2013: Acquired by
Mitsubsihi in a $357M deal
NORTH CAROLINA BIOTECHNOLOGY CENTER

32. Economic Development
Recent Announcements
• 2011: Sequenom (molecular diagnostics)
– 242 jobs, $19M investment
• 2012: Aerocrine (asthma diagnostics)
– 45 jobs
• 2013: bioMerieux: (in vitro diagnostics)
– 44 jobs, $44M investment
• 2013: Syngenta (agricultural biotech)
– 150 jobs, $94M investment
NORTH CAROLINA BIOTECHNOLOGY CENTER

33. NCBiotech – Programs
Research
Support
Ideas
Company Creation
and Growth
Statewide
Econ Devel
Products, Companies and Jobs
Education, Networking and Other Programs
NORTH CAROLINA BIOTECHNOLOGY CENTER

34. Workforce and Education
• 1900+ teachers trained
• 50,000 students reached
each year
• $7M in grants for lab
equipment & new
courses
• 8,000+ BioWork manuals
distributed to colleges
NORTH CAROLINA BIOTECHNOLOGY CENTER

35. Biomanufacturing Workforce
NCBIOIMPACT
• Industry-driven biopharma
manufacturing training and
education
• Emerging and existing labor
• BTEC
– 82,500 SF; $60M
– $12.5M equipment
– cGMP pilot plant
NORTH CAROLINA BIOTECHNOLOGY CENTER

36. Networking and Community
• High-profile conferences
• Hamner Conference Center
– 30,000 guests annually
• Networking groups
– More than 3,000 attendees
• Biotech Library
• NCBiotech Job Network
• And much more
NORTH CAROLINA BIOTECHNOLOGY CENTER

37. Looking Ahead
NORTH CAROLINA BIOTECHNOLOGY CENTER

38. Supportive Ecosystem

39. Life Sciences in North Carolina
• Place
– 3 major research universities in a 30 mile radius
– Ecosystem of supportive organizations, risk capital,
entrepreneurial culture
• People
– Collaboration among visionary business, academia, gov’t leaders
– Attract and retain scientific and business talent
• Programs
– Company creation, attraction, retention, expansion
– Innovative workforce development programs
• Patience
– North Carolina Biotechnology Center: 30 years
– Research Triangle Park: 50+ years
NORTH CAROLINA BIOTECHNOLOGY CENTER

40. Thank You
Mark Lombard
Program Director, Bioscience Industrial Development
North Carolina Biotechnology Center