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					“We’ve discovered the secret of life”

                                 Francis Crick
                             February 28,1953
Fifty years ago, James Watson, Francis
Crick and Rosalind Franklin discovered
the double helix structure of DNA,
setting in motion a new way to develop
medicine.

It would take another 30 years before
the first biotech drug was introduced
and begin what economists call….
The Biotech Age
   (2000-2025)
 Biotechnology v. Pharmaceutical

What is Pharmaceutical Technology?
The study and development of compounds discovered to promote
life.
What is Genetics?
The study of DNA and its role in heredity and cell function.
What is Proteomics?
The study of plant, animal and human proteins, their functional
roles and their relationships with genes.
What is Biotechnology?
The study and development of biological products from the
information gathered in Genetics.
What is Life Science?
The branch of science concerned with genes and genetic
structures affecting, food, animal and human health.
   2004 Life Science Strategic Approach

                                Biotech
                     Cryolife             Entremed
                          Pierce Biotechnology
               Amgen Genentech
                                         Merisant
          Aventis    Baxter Serologicals       Wrigley
        Bayer     Abbott   Monsanto Dairy                    Jay’s
      Pfizer Novartis Novartis Nutritional
                         Abbott Ross Products
Pharmaceutical Nutraceuticals/                       Food Keebler
 MDS Watson
            King
                  AgTech                             Kraft
      Mylan
              IVAX                               Quaker


                          Biometrics/
                          Bioinformatics
    2000-2025
   The Biotech Age will create unprecedented EVA

    20000
                                                                          Biotech Age
                       Existing IT maximizes collaboration,
                     accelerates EVA and compresses Biotech
                                    Lifecycle                                                           Mapping of
                                                                                                         Human
                                                                                                         Genome

                                                              Information Age
     6540




     1600
                                                     Industrial Age
                              Agrarian Age
      180

             6000 BC                         1760         1850              1945 1975    2000 2025


                                             Time & Technology
*1996 dollars U.S.
                                                        Source: J. Bradford DeLong, Estimating World GDP, 1 Million BC- Present
                                                        http://econ161.berkeley.edu
The Industrial Age
    (1770-1970)
Strategic Inflection Points of the Industrial Age



         Economic Value Added




                                                      Jet Engine


                                               Electricity



                                Steam Engine                              Moon Landing




                                        1770                                     1970



                                               Time                Source: CSX Index
The Information Age
     (1947-2000)
Strategic Inflection Points of the Information Age


                                World Wide
                                  Web
        Economic Value Added




                                                    Moore’s Law:
                               Personal
                                                    The raw cost of computing power declines
                               Computer
                                                    50% and information processing power
                                                    doubles every 12 months
                                                                                Gordon Moore
                                                                                 Founder Intel



                                                                 Transistor


                                          1947     1995   2000



                                                 Time                         Source: CSX Index
The Pre-Biotech Age
     (1953-2000)
       Strategic Inflection Points of the Biotech Age
      “The stock of biotech knowledge will double monthly by 2015, weekly by 2010
      and daily by 2016”                                R. Oliver, The Coming Biotech Age

                                                                                     Industrial Applications:
                                                                                      Better, cheaper products
                    Economic Value Added




                                                                    Monsanto’s Law:
                                           Agriculture:
                                           More, Better
                                                                    The quantity of genetic/proteomic
                                              Food                  information doubles and the raw cost
                                                                    information declines 50% every 12 months
                                                                                                      Monsanto




Monsanto’s cost to                                                               Health Care:
                                                                               Better, Cheaper Care
determine the amino
acid sequence of a
                                                          1953          2025
gene dropped from $2.5
MM in 1974 to $150 in
1999.                                                            Time
        Strategic Inflection Points of the Biotech Age
      “The stock of biotech knowledge will double monthly by 2015, weekly by 2010
      and daily by 2016”                                R. Oliver, The Coming Biotech Age

                                                                                Industrial Applications:
                                                                                 Better, cheaper products
                    Economic Value Added




                                                                    Monsanto’s Law:
                                           Agriculture:
                                           More, Better
                                                                    The quantity of genetic/proteomic
                                              Food                  information doubles and the raw cost
                                                                    information declines 50% every 12 months
                                                                                                      Monsanto


                                                                                Health Care:
Monsanto’s cost to                                                             Better, Cheaper
determine the amino acid
sequence of a gene                                                                  Care
                                                          1953          2025
dropped from $2.5 MM in
1974 to $150 in 1999.
                                                                 Time
                                 R&D Investments By Pharma Companies
                                30                                         *
                                                                       26.4

                                25                                24
   Expenditures (Billions US)




                                20
                                                           15.2
                                15

                                10                  8.4

                                             4.1
                                 5
                                      2

                                 0
                                            1985   1990    1995        2000
                                     1980
                                                   Year
                                                                  *Estimate
Source: PhRM A Survey 2000
  1977-1997
U.S. Biotechnology Patent Approvals increased 700% v. 60%
for all U.S. Patents
                  10000                                                                                 9200     250,000
                           9000
                                                                                                       203,410
                           8000                                                                                  200,000
Biotech Patent Approvals




                                                                                                                            All U.S. Patent Approvals
                           7000
                           6000   130,553
                                                                                                                 150,000
                           5000                    All U.S. Patent Approvals

                           4000                                                                                  100,000
                           3000
                           2000   1314                                                                           50,000
                           1000                    U.S. Biotech Patent Approvals

                             0                                                                                   0
                                  1977      1980      1985                         1990             1997


                                                                                          Source: U.S. Patent & Trademark Office
Biotechnology Firms are by far the most research intensive
of all nondefense industries:


Key Facts (1995):
• Biotech firms spent $69,000 in R&D per employee in 1995
• Top 5 Biotechs spent $100,000 per employee
• Top 5 Pharma spent $40,000 per employee
• Average expenditure for all U.S. corporations was $7,951

                                        Source: R. Oliver, The Coming Biotech Age
       Strategic Inflection Points of the Biotech Age
      “The stock of biotech knowledge will double monthly by 2015, weekly by 2010
      and daily by 2016”                                R. Oliver, The Coming Biotech Age

                                                                                 Industrial Applications:
                                                                                  Better, cheaper products
                    Economic Value Added

                                           Agriculture:
                                           More, Better
                                              Food              Monsanto’s Law:
                                                                The quantity of genetic/proteomic
                                                                information doubles and the raw cost
                                                                information declines 50% every 12 months
                                                                                                  Monsanto




Monsanto’s cost to                                                           Health Care:
                                                                           Better, Cheaper Care
determine the amino
acid sequence of a
                                                      1953          2025
gene dropped from $2.5
MM in 1974 to $150 in
1999.                                                        Time
Impact of Biotech on Agriculture
Yields- by Country- using Roundup-Ready™ seeds (1993-1999)




 Percent Change
                         Argentina                     Percent Change
                                                                              Brazil
       3000                                                 700

       2500                                                 600

                               2,801%                       500
                                                                                 647%
       2000

       1500
                                                   Volume   400

                                                            300
       1000
                                                            200

        500                                                 100   92   93   94   95    96     97     98
               92   93    94   95   96   97   98
          0                                                   0
                1
               93    2
                    94     3
                          95   96
                                4   97
                                     5    6
                                         98    7
                                              99                  93
                                                                   1   94
                                                                        2   95
                                                                             3    96
                                                                                   4   97
                                                                                        5     98
                                                                                               6    99
                                                                                                     7




                          -58%                      Price                    -51%
        -60%                                                  -60%



                                                                             Source: Monsanto Annual Report 1999
       Strategic Inflection Points of the Biotech Age
      “The stock of biotech knowledge will double monthly by 2015, weekly by 2010
      and daily by 2016”                                R. Oliver, The Coming Biotech Age


                                                                                          Industrial
                                                                                     Applications: Better,
                    Economic Value Added


                                                                                      cheaper products
                                                                    Monsanto’s Law:
                                                                    The quantity of genetic/proteomic
                                                                    information doubles and the raw cost
                                           Agriculture:             information declines 50% every 12 months
                                           More, Better                                               Monsanto
                                              Food




Monsanto’s cost to                                                               Health Care:
                                                                               Better, Cheaper Care
determine the amino
acid sequence of a
                                                          1953          2025
gene dropped from $2.5
MM in 1974 to $150 in
1999.                                                            Time
Size of Industries Most Affected in The Biotech Age

                                                                        Percent of
                                             Dollars (Billion)           private-
                                                                       sector GDP
         Biotechnology:

         Health Services*                                   446                   6.6

         Chemicals and allied products                      156                   2.3


         Environmental services                             140                   2.1

         Agriculture & Forestry                             130                   2.0

         Mining                                              99                   1.5

         Bioterials Manufacturing                        1,309                  19.6
                                  Total                   2,280                  34.1


                                   Source: U.S. Department of Commerce, Bureau of Economic Analysis
                                   * Note: Health services does not include public sector health care
                                   expenditures with amounted to approx. $330 billion in 1996
 Comparison of Biotech Age v. Industrial & Information Ages

Industrial Age- Technology pushed everything to the center
• Cities were formed around centralized scale economies
    • New York- Finance           Los Angeles- Entertainment
    • Detroit- Automobiles        Chicago- Transportation Hub
• Similarly factories, corporations & countries
• Augmented regional barriers to trade- protectionism
 Comparison of Biotech Age v. Industrial & Information Ages

Industrial Age- Technology pushed everything to the center
• Cities were formed around centralized scale economies
    • New York- Finance           Los Angeles- Entertainment
    • Detroit- Automobiles        Chicago- Transportation Hub
• Similarly factories, corporations & countries
• Augmented regional barriers to trade- protectionism
Information Age- Technology pushed everything to the margins
• New economic model leveraged information scale economies
• Free flow of information augmented decentralization
• Regional economies give way to global trade
 Comparison of Biotech Age v. Industrial & Information Ages

Industrial Age- Technology pushed everything to the center
• Cities were formed around centralized scale economies
    • New York- Finance           Los Angeles- Entertainment
    • Detroit- Automobiles        Chicago- Transportation Hub
• Similarly factories, corporations & countries
• Augmented regional barriers to trade- protectionism
Information Age- Technology pushed everything to the margins
• New economic model leveraged information scale economies
• Free flow of information augmented decentralization
• Regional economies give way to global trade
Biotech Age- Technology Transforms Everything Inside Out
• New ‘bioterials’ replace conventional materials affecting all products
• ‘Transgenic’ crops grow in harshest climates, w/medical payloads (i.e
vaccines), eradicating starvation
• Genetic therapies discovered to treat/cure cancer, heart disease, obesity,
etc.
“Technological change is but one part of
a broader set of forces: an ever
increasing conceptualization of our
Gross Domestic Product- the substitution,
in effect, of ideas for physical matter in
the creation of economic value”

                                Alan Greenspan
                      Chairman, Federal Reserve
                                   July 10,1998
   The Biotech Age
    Snapshot: 2002
A Year of Retrenchment
2002 Defining Events In Life Science
Events                                           Implications
Capital markets enter third depressed year in    IPOs decline, emerging biotechs scramble for
2003; risk averse investors play it safe with    new sources of financing
established, revenue driven companies            Publicly traded companies restructure, cutting
                                                 employees & programs

Deals
Consolidation intensifies                        Biotech follows Big Pharma mega mergers to
                                                 realize research economies of scale, cutting
                                                 employees & programs
                                                 Big Biotech hunts for new products and
                                                 technologies; rich get richer

Big Pharma pays premium for late-stage drug      Competition high amongst biotech companies
candidates to fill pipeline                      for pharma deals; negotiations take longer as
                                                 Big Pharma due diligence increases

Products & Technology
250 biotech products in Phase III trials         If half are approved, new launches will increase
                                                 by more than 70% over the next 3-4 years
Public Policy
Number of FDA approvals decline                  Threatens to move more R&D offshore to
                                                 countries with less regulation
Priority approval times significantly increase   After 21 months without a leader, FDA appoints
                                                 Mark McClellan as Commissioner
                                                                            Source: Ernst & Young
2002 Snapshot: U.S. Biotechnology At A Glance

         “It’s a very brutal business. When a drug is
         pretty much at it’s peak, it just goes away
         instantly, like switching off a light”
                                    Jean-Pierre Garnier
                               CEO, Glaxo-SmithKline

    • Withdrawal of risk averse Venture Capital
    • Significant Penetration by Generics
    • ImClone Scandal & insider trading effects other public biotechs
    • FDA approval times increase without appointed Commissioner
    • Flameout of post-Genomic companies whose model was in gene mining
                    Number of IPOs
         19
            9




                   10
                   15
                   20
                   25
                   30
                   35
                   40
                   45




                    0
                    5
         19 3 H
            9 1
         19 3 H
            9 2
         19 4 H
            9 1
         19 4 H
            9 2
         19 5 H
            9 1
         19 5 H
            9 2
                                       U.S. IPOs Over Time




         19 6 H
            9 1
         19 6 H
            9 2
         19 7 H
            9 1
         19 7 H
            9 2
         19 8 H
            9 1
         19 8 H


Period
            9 2
         19 9 H
            9 1
         20 9 H
            0 2
         20 0 H
            0 1
         20 0 H
            0 2
         20 1 H
            0 1
         20 1 H
            0 2
         20 2 H
            02 1
              H2

                   Avg. Raised ($MM)
2002 Snapshot: U.S. Biotechnology At A Glance
                Public Companies                         Industry Total
                          2002       2001 % Change   2002    2001 % Change
Financial               ($billion)
Product Sales             21.9       19.1    14.8     24.3    21.4     13.5
Revenues                  30.3       26.4    14.8     33.6    29.6     13.5
R&D Expense               16.3       11.6    40.7     20.5    15.7     30.8
Net Income                9.4        4.6    102.3     11.6    6.8      71.2

Industry                ($billion)
Market Capitalization    189.5   290.4      -34.7
Total financings          6.5     5.5        17.9      8.6     7.9     9.5
Number of IPOs             4       4           0        4       4       0
Number of companies       318     342         -7      1466    1457     0.6
Employees               142,900 142,800      0.1     194,600 193,000   0.8
   U.S. Biotech: 2002 Financial Highlights by Region
                                    Number of            Market                                           Cash &
                                      Public  Number of   Cap                                  Net      Short Term     Total
                                    Companies Employees 12/31/02        Revenue     R&D      Income    Investments    Assets
     Region
     San Francisco Bay Area             62          31,844    49,164    8,994    3,640    1,307           8,774      22,502
                                             -7%          3%      -37%      17%       4%     25%              -12%       -4%
     New England                        52          24,447    22,311    4,830    2,836    1,856           6,939      15,988
                                             -2%         -1%      -44%      15%      17%     48%              -10%        7%
     San Diego                          28           8,569    12,196    1,647     844      748            3,416       7,543
                                             -7%          6%      -46%      12%       5%     11%                -9%       8%
     New Jersey                         24           4,872     5,013     839      528      479            1,310       2,892
                                             4%          11%      -53%      21%      28%    105%              -20%       -2%
     Mid-Atlantic                       20           5,984    11,517    1,325    1,943    1,734           3,235       6,104
                                            0%            6%      -42%      27%    141%     201%              -11%        7%
     Southeast                          16           3,953     2,317     944      187      139             345        1,274
                                         -16%             1%      -42%      10%      11%   -406%              -30%      -11%
     New York State                     15           2,813     3,681     251      390      384            1,077       1,643
                                         -17%            -5%      -61%     -10%     -31%    -21%              -29%      -27%
     Midwest                            13           1,156      821      163      119      165             256         426
                                         -24%           -41%      -48%     -14%      -9%    -30%              -35%      -37%
     Pacific NW                         17           2,417     3,114     332      489      583             855        1,414
                                            0%          -36%      -89%     -73%     -18%    128%              -57%      -63%
     Los Angeles/Orange County          13          27,091    66,521    7,249    4,281    1,439           5,261      27,472
                                           -7%            8%        0%      31%    309%    -218%               54%      185%
     North Carolina                     14          23,388     5,167    2,586     176       9             1,215       3,828
                                            0%           -5%      -25%       9%     -33%    -97%                 8%      19%
     Total                             318         142,878.0 189,496.0 30,265.0 16,271.0 9,378.0         35,082.0   95,688.0
                                           -7%            0%      -35%      15%      41%    102%               -9%       20%

Note: Changes in R&D and Net Income in LosAngeles/Orange County and Mid-Atlantic are due to write-offs for acquired in-process
R&D by Amgen and Medimmune related to their acquisitions.
                                                                                                    Source: Ernst & Young
       2002 Snapshot: U.S. Big Biotech v. Big Pharma
                                                                     R&D
                                                                   Expense
                                           Revenue per     R&D        per   R&D Expense
                       Revenue              Employee     Expense   Employee   as % of   Net Income Market Cap   Market Cap
                       ($MM)   Employees      ($M)        ($MM)      ($M)     Revenue     ($MM)     12-31-02     12-31-03    % Change
Biotech
Amgen                   5,523    10,100        547        1,117      111         20        1,600     62,217       80,690       29.69
Genentech               2,618     5,252        498         623       119         24          64      17,067       48,310      183.06
Genzyme                 1,329     5,600        237         308       55          23         -13       6,477       11,200       72.92
Chiron                  1,172     4,044        290         326       81          28         226       7,073       10,240       44.78
Biogen                  1,148     2,633        436         368       140         32         199       5,972         NA          NA
Medimmune                848      1,605        528         144       90          17          81       6,820        6,070      -11.00
Gilead Sciences          467      1,250        373         135       108         29          72       6,687       11,730       75.41
Biovail                  788      1,900        415          52       27           7         256       4,146        3,600      -13.17
Weighted Average                               429                   95          21                                            54.53

Pharma
Bristol-Myers Squibb    18,119    44,000       412        2,218      50          12        2,235     44,843      57,020        27.15
Eli Lilly               11,078    43,700       253        2,149      49          19        2,792     71,334      78,750        10.40
Johnson & Johnson       36,298   108,300       335        3,957      37          11        6,786     159,550     153,540       -3.77
Merck                   21,631    60,800       356        2,677      44          12        6,788     127,121     106,300      -16.38
Pfizer                  32,373    90,000       360        5,176      58          16        9,126     188,377     278,400       47.79
Weighted Average                               345                   47          10                                            13.04
                     U.S. Generic Industry Total Sales
                    14000

                    12000

                    10000
      ($ million)



                     8000

                     6000

                     4000

                     2000

                        0
                            1994   1995   1996   1997   1998   1999     2000


  Annualized growth 18%, 1994-2000
•   Between 1997 & 2002, drugs generating $18 billion came off patent
  Generics today supply approx. 50% of prescriptions filled
•
•   Biogenerics pending FDA approval


                                                                 Source: PHRMA Survey 2000
FDA Approval Times for all NDAs Increase Significantly
Priority Approval Times Triple….
             30

             25

             20
    Months




             15

             10

              5

              0
                  1993   1994   1995   1996   1997     1998   1999    2000     2001      2002
                  1      2      3      4      5        6       7      8        9         10
                                                Time
     Median Standard Approval Time                       Median Priority Approval Time


                                                                         Source: Ernst & Young
….While Number of Approvals Steadily Declined
      Annual New Drug Approvals

                                   38
        40
                          34
                32                        30
        35
                                                      27
        30

        25

        20

        15

        10

         5

         0
               1
              1998       2
                        1999       3
                                  2000    4
                                         2001       5
                                                   2002


                                                Source: Food and Drug Administration
“The negative technology values now so
prevalent in the industry are likely to
disappear by 2004 and beyond providing
investors with exceptional
opportunities…This will follow the
painful triage now underway.”

                                           Frederick Frank
                                            Vice Chairman
                                          Lehman Brothers
  -speaking specifically of the state of the biotechnology
                                             industry, 2003
Top 9 Global Markets for Pharma/Biotech


               Australia         5.4

                     India         7.3
                                 3.5
           Middle East                 1
                                       1
                                  7
      Eastern Europe               7
                                 4                                                                          2003
  S.E. Asia & China                            20
                                           5
                                           1
                                                                                                            1998
        Latin America                               31
                                           7
                                           1
                   Japan                                  46
                                                          47
                 Europe                                                    01
                                                                           1
                                                                    70
                     USA                                                                           69
                                                                                                   1
                                                                                07
                                                                                1
                             0             20        40        60   80   100     120   140   160    180
                                                               US Dollars (Billions)
                                 The 9 largest pharmaceutical markets account for 84% of worldwide sales.
Source: IMS Health 1998
                                        Annual Prescriptions by Age
  Avg. Number of Prescriptions   14
                                 12                                                              11.45
                                 10                                                      9.42

                                  8                                              6.49
                                  6                                      4.33
                                      4.13
                                  4                 2.33    2.89
                                             1.5
                                  2
                                  0
                                       <5    5-24   25-34   35-44        45-54   55-64   65-74    75+
                                                                   Age

• The over-65 population will grow 16% annually from 1997 through 2010.
• The over-65 population is forecasted to rise from 380 million in 1997 to
   over 690 million by 2025.
• The over-65 population represents 15% of the total U.S. population, but
  account for over 33% of total healthcare expenditures.
• By 2025, total expenditures for Americans over 65 will require 66% of the
  entire U.S. allotment.
………….Federal gov’t programs cannot support such an allocation.
• Congress passes FDAMA to accelerate new drug approval process.
                    Number of IPOs
         19
            9




                   10
                   15
                   20
                   25
                   30
                   35
                   40
                   45




                    0
                    5
         19 3 H
            9 1
         19 3 H
            9 2
         19 4 H
            9 1
         19 4 H
            9 2
         19 5 H
            9 1
         19 5 H
            9 2
                                       U.S. IPOs Over Time




         19 6 H
            9 1
         19 6 H
            9 2
         19 7 H
            9 1
         19 7 H
            9 2
         19 8 H
            9 1
         19 8 H


Period
            9 2
         19 9 H
            9 1
         20 9 H
            0 2
         20 0 H
            0 1
         20 0 H
            0 2
         20 1 H
            0 1
         20 1 H
            0 2
         20 2 H
            02 1
              H2

                   Avg. Raised ($MM)
Top 25 States Ranked by Number of Biotech Companies
(1999)
     900


     800


     700


     600


     500


     400


     300


     200


     100


       0




                             Source: From Alchemy to IPO,Roth
Demographic of California Biotech Companies
                                      (with comparison to Midwest)

                       250
 Number of Companies




                       200


                       150


                       100


                        50


                         0
                             San Francisco   Los Angeles/    San Diego         Midwest
                                             Orange County




                                                                 Source: Ernst & Young
Research & Development- San Francisco

Universities in the San Francisco Region:
• Conduct more than $1.4 billion in research annually.
   • $900 million of it is Life Science.
   • $803 million from NIH in 2001 alone.
       • 75% or $560 million to UCSF, Berkeley & Stanford.
   • Received 1,345 patents in 1999.
       • 38% of all Life Science patents in the state.


                                           Source: Bay Bio
Venture Capital- 2002
“ Between 1998 and 2001, Bay Area biopharma companies conducted 31 IPOs as
compared to the next highest IPOs of 10 and 8, respectively for the San Diego and
Seattle regions.” Brookings Institute



The Bay Area Dominates the Venture Capital Market:
    • The most V.C. firms in the U.S.- 21
          • #2 Boston has 10.
    • 33% of all deals in the U.S.
    • 40% of all venture capital investment in the U.S.
    • 77% of all venture capital investment in California.
    • 570% increase in investments between 1995-2001.
                                                  Source: Bay Bio Report, 2003
NIH Funding By State
                3,000
                        2,500
                2,500
Millions U.S.




                2,000
                                1714
                                       1580
                1,500
                                              1105
                                                     973   892
                1,000
                                                                 689   670
                                                                                516   503
                 500

                   0
                         CA     MA      NY    PA     MD    TX    NC    WA        L    OH
                                                       State


                                                                  Source: NIH
NIH Funding- California Universities
4 of the top 8 are in the Bay Area - 2002
400
       350
350
300            273
250                     225      217
200
150                                     131
                                                   92        88       79
100
 50
  0
      UC San   UCLA   Stanford   UCSD   USC        UC     UC Davis UC Irvine
       Fran                                      Berkeley


                                              Source: NIH - 2003
California University Spin-Off Companies
Approx. 50% are in the Bay Area
                                                        Biomedical
   Institution                                          Companies
   Stanford University                                      94
   UC San Diego                                             63
   UC San Francisco                                         60
   UC Berkeley                                              39
   The Scripps Research Institute                           33
   Caltech                                                  24
   UC Davis                                                 18
   UC Los Angeles                                           18
   The Salk Institute                                       16
   UC Irvine                                                 9
   Lawrence Berkeley/Lawrence Livermore National Labs        7
   The Burnham Institute                                     7
   UC Riverside                                              5
   UC Santa Barbara                                          5
   UC Santa Cruz                                             3
   City of Hope                                              1
   Bay Area Total                                           200
   Total California                                         402
                Biotech projected growth:
ected Demand for Antibody Products                                                                         (Grams/Year)


              FDA Status   Disease Indication                              Firm            2002     2003       2004        2005        2006
              W            Colorectal cancer                  Abgenix, Amgen                    0        0           0        3.3        24.7
              A            Psoriasis                          Biogen                            0      0.8         2.2        2.7           3
              W            Chrohn's disease, MS               Elan, Biogen                      0        0           0         25          50
              W            Colon cancer                       Genentech                         0        0         466      1,305       2,714
                                                              Beckman Coulter,
              W            Non-Hodgkin's Lymphoma (NHL) GlaxoSmithKline, Amersham               0      0.3         0.7         1.4        1.9
              A            B-Cell chronic lymphocytic leukemiaIlex                              1      1.1         1.4         1.8        2.3
              A            Rheumatoid arthritis (RA)          Amgen                         180.3    284.8       361.7       397.9      437.7
              W            Colorectal cancer                  ImClone, Merck                    0        0         160         320        640
              A            Breast cancer                      Genentech                      62.4     64.3        71.3        78.5       86.3
              A            Rheumatoid arthritis               Abbott, Cambridge Antibody        0     22.7        45.3        71.1       99.6
              W            Mucositis                          Amgen                             0        0           0         0.1        0.2
              W            Postoperative glaucoma surgery     Cambrige Antibody Technology      0        0           0           0          0
              W            Age-related macular degeneration Genentech                           0        0           0           0          0
              W            NHL                                Amgen, Immunomedics               0        0           0           0          0
              A            Acute myelogenous leukemia         Wyeth                          0.04     0.04        0.04        0.04       0.04
              W            Osteoporosis                       NPS Pharmaceutical                0        0           0         0.1        0.5
              W            Psoriasis                          Genentech,Xoma, Serono            0      4.3        85.6       154.2      231.2
              A            Crohn's disease, RA                Johnson & Johnson, Centocor   220.5    291.1       346.4       412.2      490.5
              A            Angioplasty                        Lilly                           8.4      7.9         7.8         7.8        7.8
              A            NHL                                Genentech, Idec               368.9    479.5       575.4       707.8      884.8
              A            Respiratory syncytial virus        Medimmune                      72.9     92.6       116.7       141.2      166.7
              A            Allergic asthma                    Genentech/Tanox/Novartis          0     18.4        73.4         138        207
              A            Acute rejection                    Roche                           2.1      2.1         2.1         2.1        2.1
              A            NHL                                Idec/Schering                0.0026   0.0062       0.012      0.0165     0.0215
stimated Demand (kg)                                                                          917    1,270       2,316       3,770      6,050
                                                                                                             Source: Dr. Charles Christy & UBS
Comparative Wet Lab Markets

                 Seattle

          North Carolina

             San Diego

New Jersey/Pennsylvania

           Baltimore/DC

                 Boston

              Bay Area

                           0    5         10           15           20            25
                               Wet Lab Space in Millions Square Feet


                                          Source: St. Louis Register, Oct. 2001
In Summary- San Francisco
“In general, the emerging pattern of growth in the Life
Sciences suggests that new employment will likely consist
of R&D (50%), manufacturing (25%), and commercial,
marketing, management and support positions (25%).
Given the importance of the Life Sciences to the economy
of the Bay Area, it is critical for the supply of skilled labor
to meet the cluster’s burgeoning needs.
Considering the long lead times inherent in changing and
improving a region’s human capital equation, there are
reasons to fear that the requirements of growth will
outstrip the available human assets”
                       Bay Area Life Sciences Strategic Action Plan
                                                              2003
In Summary- Biotech

        “A Man’s Character Is His Fate.”
                                      Heraclitus



    “We talk about gene therapy as if it can
    change someone’s fate, but you can also
    change someone’s fate if you pay off their
    credit card.”
                                   James Watson
     In Memoriam: Dolly the Sheep, 1997- 2003
(the first cloned mammal from embryonic stem cells)

				
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