2008-06-19 23:50:07 -
www.baybio.org - Schwartz Communications for BayBio Erik Clausen, Marisa D. Borgasano, 415-512-0770 Dane Vahey, 781-608-7091 BayBio@schwartz-pr.com BayBio, Northern California's life sciences association, today released California Cures, a comprehensive report examining the unique attributes required for California to maintain the oldest, largest and most productive life sciences cluster in the world. According to California Cures, the state's life sciences companies are
on the verge of investing close to $50 billion over the next five years to manufacture 230 treatments in Phase III and create more than 12,000 jobs per year in the process. The report also cites the State of California's lack of a long-term strategy to capture this massive, unprecedented economic opportunity. (Note to Editors: The report complements comments made today by California Governor Arnold Schwarzenegger at the conference).
The report lays out a roadmap for action by government and industry to ensure that California's statewide life sciences industry remains a cornerstone of economic growth for both the State and the Nation. California Cures makes specific recommendations in the areas of tax policy, infrastructure, education and regulatory affairs that will help capture the return on California's three decades of investment in life sciences research.
According to Matthew Gardner, president of BayBio, "California has a rich history of pioneering entrepreneurs who have churned out innovation at an extraordinary pace. The California life sciences industry epitomizes that entrepreneurial spirit and is a cornerstone of economic growth for the State and the Nation. California's elected officials have an unprecedented opportunity to capture the economic boon offered by the manufacturing of these 230 new treatments and cement the life sciences industry as a cornerstone to the state's future, ensuring long-term economic prosperity. Our policy makers must provide consistent policy that encourages innovation, research, entrepreneurship and product manufacturing."
Highlights of the findings in California Cures include:
-- In the next five years, 230 new treatments produced by California's life sciences companies will complete clinical trials and be poised for manufacturing. The industry will invest $49.6 billion to manufacture these treatments.
-- Manufacturing jobs and general employment growth opportunities in life sciences are high wage and benefit jobs with significant opportunities for career development.
-- In this current economic downturn, California's life sciences industry is a bright spot with robust company formation and 12,000 new jobs created annually. Fully 35 percent of global life sciences work is accomplished in California.
-- Over the next five to 10 years, the industry forecasts up to $17 billion in annual investments into research, facilities and jobs to produce 815 treatments, currently in phase II and phase III, including the 230 on the verge of manufacturing.
-- The birthplace of biotech and a global center for R&D, California is poised to be the epicenter for alternative energy biofuels and biomass.
-- California does not accurately acknowledge the timeline required for developing biotech products. The state's current 10-year carry forward provision for net operating loss (NOLs) deductions assumes that a life sciences company reaches profitability in three to five years after incorporation, while the average life sciences firm does so in year 15.
-- California's current tax environment discourages homegrown life science companies from expanding here.
Highlights of BayBio's recommendations in California Cures include:
-- Tax Policy
1. Create a 20-year carry forward provision on the treatment of corporate net operating losses.
2. Create corporate tax incentives for major investments in California.
3. Convert California's R&D Tax Credit into a tax rebate.
4. Create a health information technology and life science early-stage investment incentive.
-- Infrastructure
1. Establish a new California Science & Technology Trust.
2. Incentivize local communities to zone biotech regions in their master planning documents.
3. Expand allowable uses for the California Infrastructure and Economic Development Bank.
4. Establish a major economic incentive for bioprocessing and biomanufacturing investments.
-- Education
1. Invest $150 million over 10 years in UC-oriented life sciences incubators.
2. Increase state investment in training centers of excellence.
3. Establish a science fellows program to serve the state government.
-- Regulatory Affairs
1. Establish a harmonization conference between CalEPA and U.S. EPA.
"We stand at a crossroads and California's leadership position is at stake with every clinical trial," Gardner added. "We have the opportunity to decide whether California will continue to be the world's headquarters of the life sciences industry or simply be remembered as its original source. Inaction now will allow communities in other parts of the world to garner the jobs and the dividends of manufacturing, as well as downstream investments made by our industry as a result of California's investment in life sciences research over the past three decades. We must be proactive to keep California biotech competitive in the global economy."
California Cures is a discussion of the full potential this industry holds, the economic role it can play for California, and the unlimited possibilities that abound because of science. For a complimentary copy of the report and accompanying CD-Rom, which chronicles the great deeds of California biotech, please contact Travis Miller at (650) 871-7101 ext. 207 or
travis@baybio.org.
ABOUT BAYBIO
BayBio is Northern California's life sciences association. BayBio supports the life sciences community through advocacy, enterprise support, best practice dissemination and enhancement of research collaboration. BayBio serves Northern California's 900+ life sciences companies, a dozen private research institutes, nine regional universities and public officials at all levels of government. The organization's more than 400 members represent life sciences companies and organizations throughout Northern California and include those engaged in, or supportive of, research, development and commercialization of life sciences technologies. More than one third of BayBio members are engaged in developing of medical technologies, diagnostics and research tools. For more information, please visit: www.baybio.org.
New, In-Depth Report Identifies 230 New Products in California's
Biotech Pipeline Set for Manufacturing and Plan for State to Capture
This Economic Engine
