|By PR Newswire||
|January 7, 2013 02:30 PM EST||
SAN FRANCISCO, Jan. 7, 2013 /PRNewswire/ -- Life sciences companies in California developed nine of the 32 novel medicines approved by the U.S. Food and Drug Administration (FDA) in 2012, according to the annual California Biomedical Industry Report, published today by BayBio, California Healthcare Institute (CHI) and PwC US. The pace of product approvals and pipeline productivity of California-based biomedical companies reinforces the state's position as the nation's leading source of biomedical innovation.
"California continues to deliver life-saving treatments and new technologies that offer hope for patients in need," said David L. Gollaher, Ph.D., president and CEO of CHI. "Last year alone, we saw the approval of novel medicines to treat rare forms of cancer, anemia associated with chronic kidney disease and cystic fibrosis, among others."
The California Biomedical Industry Report provides an annual snapshot of the biomedical industry in California, the largest biomedical cluster in the world and source of the greatest number of products in clinical development. The 2013 report found California to be:
- No. 1 in jobs: Biomedical industry employment in California has grown at an average annual rate of 0.5 percent over the past five years. There are currently 269,997 people employed in the total biomedical industry, and 152,806 employees in the core sectors of biopharmaceuticals, medical devices, instruments and diagnostics, and research and development/testing laboratories.
- No. 1 in new treatments to patients: Twenty-one percent of the nation's biomedical R&D pipeline is comprised of innovation from California laboratories.
- No. 1 in venture capital investments: California biomedical companies secured $1.98 billion in venture capital investment through the first three quarters of 2012, a greater amount than any other state and equal to the total combined amount that went to companies in the next eight states, ranked by VC investments.
- No. 1 in federal funding: $3.33 billion in funding from the National Institutes of Health (NIH) went to California institutions, more than any other state and 15.1 percent of total national NIH funding.
"As the center of biomedical innovation in the U.S, California's biomedical industry is a national treasure," said Gail Maderis, president and CEO of BayBio. "But the pace of R&D productivity and its global leadership position hang on the availability of capital to fund future innovation and a regulatory framework that is based on consistency and innovative technologies."
The 2013 California Biomedical Industry Report includes findings from a survey of 175 biomedical company CEOs, who report significant improvements in the FDA regulatory process over the past year and a notable reduction in project delays due to regulatory issues. Despite this progress, biomedical companies say that lack of adequate funding, government pricing intervention and the FDA regulatory environment represent the biggest risks to future success in biomedical innovation.
The 2013 Biomedical Industry Report found:
- Nearly 14 percent of respondents said that the FDA regulatory process had improved over the prior year.
- Sixteen percent of biomedical companies delayed a project because of regulation this past year, a 17 percent decline from the previous year.
- Fifty-nine percent of CEOs cited limited or lack of access to capital as the most threatening issue to the short-term health of biomedical innovation.
- More than 50 percent of CEOs report that health insurance coverage and reimbursement issues have become more difficult in the past year.
- Nearly 90 percent of CEOs believe the industry's relationship with FDA is extremely important to advancing biomedical innovation in California, but 57 percent feel that regulatory processes have not kept pace with advance of science and technology, and thus it poses a risk to innovation.
Growth and access to capital
Though California biomedical companies attract the greatest share of venture capital, overall access to capital has become an increasing challenge for the entire industry. The funding model is changing, and California companies and research institutions are at the forefront of national trends driving an increase in partnerships and alternative sources of funding.
More of California's biomedical companies are pursuing foundation funding, corporate partnering, corporate venture and angel investors than in years past. As the use of federal funds is debated, California institutions have demonstrated their value.
- $3.33 billion in funding from the National Institutes of Health (NIH) went to California institutions, more than any other state and 15.1 percent of total national NIH funding.
- California biomedical companies received $1.98 billion through the first three quarters of 2012, the most by any state and double the amount for the second largest state recipient.
- California's share of early and seed stage venture capital deals increased from 60 percent to 63 percent of total U.S. life sciences venture capital investment; however, overall biotech venture capital through the third quarter of 2012 declined to $2.98 billion from $4.91 billion in 2011.
- M&A activity among California companies declined by 36 percent from 2009, when M&A reached a 10-year high. The percentage of CEOs that indicated over the next 12 months their organization is more likely to participate in a merger or acquisition was down 11 points from the prior year.
"Biomedical innovation is being fueled by a new paradigm to advance R&D through a combination of diverse, alternative sources of funding, non-traditional partnerships and greater collaboration among the biotech, pharmaceutical, the investment community and regulatory bodies," said Tracy Lefteroff, Global Managing Partner, Venture Capital Practice and National Life Sciences Partner, PwC US. "Greater collaboration is driving investments in consortia that share information during the pre-competitive stage of research and development and in the post-marketing environment where opportunities exist to leverage consumer insights and patient safety information from multiple sources."
Short-term success over long-term progress
Nearly three-quarters of respondents said that coverage and reimbursement considerations are extremely important in the advance of biomedical research, innovation and investment in California. By comparison, only 39 percent of CEOs perceived reimbursement was a challenge in the prior year's biomedical industry report. The significant increase in reimbursement challenges is a potential reflection of higher expectations of value from consumers and payers, including federal and state government, employers and health plans.
"The long-term stability of life sciences is grounded in California companies' ability to innovate," Gollaher said. "From the start, our industry has adapted to formidable challenges -- gaining access to capital, overcoming regulatory and reimbursement obstacles. Based on a concentration of scientists and entrepreneurs unmatched anywhere else, our state is prepared to continue its biomedical leadership well into the 21st century."
The 2013 California Biomedical Industry Report is available at www.californiabiomedreport.com.
CHI and BayBio worked with PwC to collect and administer data for the 2013 CHI, BayBio, PwC California Biomedical Industry Survey. The survey was conducted in November 2012 and targeted approximately 175 companies that conduct business in California in the areas of pharmaceuticals, biotechnology, medical devices, diagnostics or medical equipment.
BayBio brings together the collective strength and experience of the world's most innovative and productive life science cluster, helping companies grow, connect and advocate to solve some of humanity's most pressing challenges. Online at www.baybio.org.
About the California Healthcare Institute
CHI represents more than 275 leading biotechnology, medical device, diagnostics, and pharmaceutical companies, and public and private academic biomedical research organizations. CHI's mission is to advance responsible public policies that foster medical innovation and promote scientific discovery. CHI's website is www.chi.org. Follow us on Twitter @calhealthcare, Facebook, LinkedIn and YouTube.
About PwC's Pharmaceutical and Life Sciences Industry Group
PwC's Pharmaceutical and Life Sciences Industry Group provides clients with audit, tax and advisory services. We deliver industry-tailored solutions on a wide range of strategic, financial and operational issues. Our Pharmaceutical and Life Sciences Industry Group is part of PwC's larger initiative for the health-related industries that brings together expertise and allows collaboration across all sectors in the health continuum. For more information, follow us at @PwCHealth or visit www.pwc.com/us/pharma and www.pwc.com/us/medtech.
About PwC US
PwC US helps organizations and individuals create the value they're looking for. We're a member of the PwC network of firms in 158 countries with more than 180,000 people. We're committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at www.pwc.com/US.
© 2013 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. PwC refers to the US member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Sep. 28, 2016 09:15 AM EDT Reads: 3,153
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Sep. 28, 2016 09:00 AM EDT Reads: 3,840
Ask someone to architect an Internet of Things (IoT) solution and you are guaranteed to see a reference to the cloud. This would lead you to believe that IoT requires the cloud to exist. However, there are many IoT use cases where the cloud is not feasible or desirable. In his session at @ThingsExpo, Dave McCarthy, Director of Products at Bsquare Corporation, will discuss the strategies that exist to extend intelligence directly to IoT devices and sensors, freeing them from the constraints of ...
Sep. 28, 2016 08:45 AM EDT Reads: 2,545
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
Sep. 28, 2016 08:45 AM EDT Reads: 1,122
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Sep. 28, 2016 08:45 AM EDT Reads: 1,201
Technology vendors and analysts are eager to paint a rosy picture of how wonderful IoT is and why your deployment will be great with the use of their products and services. While it is easy to showcase successful IoT solutions, identifying IoT systems that missed the mark or failed can often provide more in the way of key lessons learned. In his session at @ThingsExpo, Peter Vanderminden, Principal Industry Analyst for IoT & Digital Supply Chain to Flatiron Strategies, will focus on how IoT de...
Sep. 28, 2016 08:30 AM EDT Reads: 1,152
In his session at @ThingsExpo, Kausik Sridharabalan, founder and CTO of Pulzze Systems, Inc., will focus on key challenges in building an Internet of Things solution infrastructure. He will shed light on efficient ways of defining interactions within IoT solutions, leading to cost and time reduction. He will also introduce ways to handle data and how one can develop IoT solutions that are lean, flexible and configurable, thus making IoT infrastructure agile and scalable.
Sep. 28, 2016 08:30 AM EDT Reads: 1,569
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
Sep. 28, 2016 08:15 AM EDT Reads: 536
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, will discuss recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model f...
Sep. 28, 2016 08:00 AM EDT Reads: 2,055
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
Sep. 28, 2016 07:45 AM EDT Reads: 2,260
There are several IoTs: the Industrial Internet, Consumer Wearables, Wearables and Healthcare, Supply Chains, and the movement toward Smart Grids, Cities, Regions, and Nations. There are competing communications standards every step of the way, a bewildering array of sensors and devices, and an entire world of competing data analytics platforms. To some this appears to be chaos. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Bradley Holt, Developer Advocate a...
Sep. 28, 2016 07:45 AM EDT Reads: 2,267
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Sep. 28, 2016 07:30 AM EDT Reads: 2,905
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
Sep. 28, 2016 07:00 AM EDT Reads: 2,686
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
Sep. 28, 2016 07:00 AM EDT Reads: 3,360
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...
Sep. 28, 2016 07:00 AM EDT Reads: 3,474
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...
Sep. 28, 2016 07:00 AM EDT Reads: 2,109
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, will compare the Jevons Paradox to modern-day enterprise IT, e...
Sep. 28, 2016 07:00 AM EDT Reads: 2,272
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
Sep. 28, 2016 05:30 AM EDT Reads: 1,477
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Sep. 28, 2016 05:15 AM EDT Reads: 2,825
Digital transformation is too big and important for our future success to not understand the rules that apply to it. The first three rules for winning in this age of hyper-digital transformation are: Advantages in speed, analytics and operational tempos must be captured by implementing an optimized information logistics system (OILS) Real-time operational tempos (IT, people and business processes) must be achieved Businesses that can "analyze data and act and with speed" will dominate those t...
Sep. 28, 2016 05:00 AM EDT Reads: 1,204