Biotech Landmark Study Finds Challenges to Industry

By Douglas A. McIntyre Published Dec 6, 4:31AM EST

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From BioHealth Investor

BayBio, Northern California’a leading biotechnology industry organization, published its landmark study BayBio: IMPATCT 2007.

What does Northern California know about the state of biotechnology? That region alone is home to 1/3 of the U.S.’s biotech companies, and has 30 years of involvement in the industry.

In the report BayBio cites numerous challenges exist that threaten the prosperity of the biotech industry despite tremendous advances and achievements.

Some key facts and statistics of the report are:
• 393 marketed products, 400 products in Phase II and Phase III clinical trials
• 90,000 employees, accounting for more than $6 billion in payroll in 2006
• Estimated new jobs created in the past 12 months: 6,000
• 900 biotech companies in Northern California
• Collective market capitalization: $150 billion
• Average time for FDA approval of a new drug: 14 years
• Average cost for development of a new drug: $800 million

14 years and $800 million for one new drug! And many wonder why healthcare costs continue to skyrocket.

BayBio has suggested some regulatory steps that must be undertaken to ensure biotechnology’s advancement, these include:
• Streamlined regulatory review processes that don’t unnecessarily delay approval of, and access to, new treatments
• The need to protect scientific advances through clear and consistent intellectual property regulations
• Tax policies that support and adequately reflect biotech companies’ research and development efforts, as well as the capital formation that supports these efforts
• Funding for basic research as the foundation for future innovations and discoveries
• Capital funding for the industry and the importance of fostering financing innovation, especially given the long and arduous process for translating basic scientific research into a marketable product

The report is divided into various sections each covering different areas of medicine and disease conditions, including:
-Public Policy: Trends, Challenges and Solutions
-Cancer
-Infectious Diseases
-Cardiovascular and Circulatory
-Metabolic Disorders
-Dermatology
-Central Nervous System
-Ophthalmology
-Respiratory and Pulmonary System
-Autoimmune and Inflammation
-Blood and Lymphatic System
-Women’s Health
-Genetic Diseases
-Digestive System
-Substance Abuse
-Musculoskeletal Disorders
-Urinary Tract System
-Dental
-Devices and Diagnostics

Each section also focuses on specific companies along with their drugs and pipeline.

The report can be accessed fully at http://www.baybio.org/wt/page/BayBioIMPACT_2007.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.