Florida Biotech 2007
State of the Industry
Michael A. Schmitt, MD • Life Science Analyst
Michael A. Schmitt, MD
Life Science Analyst
Florida Life Science Industry
Regional Rating: Outperform
VC Life Science Funding in Florida
Year # Deals Av. Deal Size ($M)
2005 107 12 9
2006 215 18 12
2007 (YTD 3Q) 290 17 17
Florida has become one of the fastest growing states in the life science industry and is
among the top 10 US biotech centers according to Ernst &Young.
Since 2005, there have been 92 different VC firms that have funded life science companies
in Florida. Life sciences has been the number one ranked sector for US VC funding for the
past 3 years and comprises 34% of overall funding for 2007 (YTD).
The average VC life science deal size for Florida has increased by 88% since 2005.
Florida has now established itself with a true “bioscience brand” consisting of more than a
dozen world class research centers and key academic institutions including The Scripps
Research Institute, one of the largest private, non-profit biomedical research organizations
in the world.
KEY METRICS Florida Biotech Companies by Year Founded
BIOTECH COMPANIES 30
Number in Florida 134 26
Cumulative Growth Rate (2001-07) 175% 25
Percentage of US Biotech Firms in Florida 9%
Number of Companies
Florida Companies in Clinical Trials 37% 20
FLORIDA RESEARCH RANKING 15
Total Number of Medical Schools in US 3rd
Bioscience Research Institutes in US Top 10% 10 8
5 5 5
FLORIDA ECONOMY 5 3 3 3
Population Rank in US 4th 0
GDP Ranked Among Other States 4th 0
79 80 82 84 86 88 90 92 94 96 98 00 02 04 06
Selected as a Desirable Place to Live 2nd -19 -19 -19 -19 -19 -19 -19 -19 -19 -19 -19 -20 -20 -20 -20
Pre 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005
Low Business Operating Costs Top 10% Data corresponds only to total number of companies for w hich information is know n.
Michael A. Schmitt, MD
The global biotech industry (5,000 companies) plays a key role in the world economy and will
produce revenues of over $70B for 2007. Global biotech will continue to grow at an average
rate of 18% per year which is almost 3x the growth rate of traditional pharma. US biotech
companies comprise approximately 75% of global biotech revenues.
The biotech industry in Florida has been growing well above the global rate as the statewide
company total has more than doubled since 2001 bringing the current number to 134. Florida
comprises over 9% of the 1,450 US biotech firms.
Florida has become one of the fastest growing states in the life science industry and is among
the top 10 US biotech centers according to Ernst & Young.
Worldwide biotech companies have over 100 products on the market with more than 350 in late
stage development. It is estimated that Florida currently has 5-10% of these later stage
products in development.
Furthermore, Florida was named by FierceBiotech, a respected national online biotechnology
resource, as one of the top 5 regions in 2007 for targeting biotech company development.
Florida was ranked 2nd behind California as a state offering new strategies for life science
development along with a sharp focus on the core of biotech science.
Building a Bioscience Industry
A number of recent business and science articles have addressed the necessary components of
building a successful bioscience industry. Florida is clearly moving ahead and is on track to
meet all of these key elements.
World class research centers: basic and translational research, government and
private funding, high profile researchers and a source of intellectual property.
Scripps Research Institute
Scripps Florida is a division of The Scripps Research Institute headquartered in La Jolla,
California and is one of the largest private, non-profit biomedical research organizations in the
There are more than 170 researchers and support staff working in two temporary
facilities(74,000 square feet of lab space) on the FAU campus in Jupiter, Florida. Expansion
into a 350,000 square foot, three-building permanent complex is projected for early 2009. The
Institute has been present in Florida for several years and already has its first spin-off company,
Xcovery, located in West Palm Beach.
Burnham Institute for Medical Research (La Jolla, California) finalized agreements to have a
175,000 square-foot facility in Orlando in conjunction with the proposed UCF College of
SRI International (Stanford Research Institute) has developed a facility in St. Petersburg and is
focused on applying marine science technology to various applications including biomedicine.
Michael A. Schmitt, MD
Torrey Pines Institute for Molecular Studies (La Jolla, California) has approved the building of a
new research site in Port St. Lucie for continued work in bioscience research.
Max Planck Institute (Munich, Germany) is currently in discussions to create a facility focused in
the life sciences on the Jupiter Campus of Florida Atlantic University (FAU), in the immediate
vicinity of the Scripps Research Institute. This would be only their fourth facility outside of
Germany and would be their first center in the US.
McKnight Brain Institute of the University of Florida (Gainesville, FL)—is one of the world’s
largest research centers focused on both the basic science and clinical aspects of neurologic
H. Lee Moffitt Cancer Center and Research Institute at the University of South Florida (Tampa,
FL)—is a nationally recognized top ten cancer research and treatment facility conducting both
clinical studies as well as basic science investigations.
Johnnie B. Byrd Alzheimer’s Center & Research Institute (Tampa, FL)—is located on the USF
campus and is the world’s largest free-standing research facility dedicated to Alzheimer’s
Access to talent: scientific founders, high level science staff, grant funding and a
source of intellectual property. It is also notable that in 2009, Florida will have
9 medical schools, placing it 3rd in the US behind only New York and California.
Florida Atlantic University (Boca Raton)—Focus on marine biotechnology, shares its Jupiter
campus with the Scripps Research Institute.
Florida International University (Miami)—Approved for a new medical school that will target
issues in public health and minority populations.
Florida State University (Tallahassee)—Genomics, proteomics, bioinformatics; ranked first in
the nation for licensing income per million in research expenditures.
University of Central Florida (Orlando)—Biomolecular Science Center, extensive research
experience in photonics, approved for a new College of Medicine and a joint collaboration with
the Burnham Research Institute.
University of Florida (Gainesville)—The largest research facility in the southeast, ranked 5th
nationally in tech transfer and commercialization and 33rd worldwide for biotechnology patents.
For the first time, UF received more than $500M in 2006 for research funding.
University of Miami (Miami)—ranked in the top 10% of all universities in research expenditures
by the National Science Foundation and has the number one ranked ophthalmology program in
University of South Florida (Tampa)—Florida’s 2nd largest research university, Center for
Biological Defense, College of Medicine and College of Marine Science.
Michael A. Schmitt, MD
Centers of Excellence
Five Centers of Excellence have been implemented to help bridge academia with industry and
support statewide innovation:
Biomedical and Marine Biotechnology (FAU)
Regenerative Health Biotechnology (UF)
Biomolecular Identification & Targeted Therapeutics (USF)
Nano-Bio Sensors (UF)
Access to funding: VC firms, Angel funding, corporate collaborations.
Scripps Florida has signed a 5 year, $100M collaboration with Pfizer for biotech related
research and drug development.
H. Lee Moffitt Cancer Research Center recently formed a long term collaboration (“M2GEN”)
with Merck aimed at research into personalized cancer treatments.
Since 2005, there have been 84 different VC firms from the US along with 8 foreign firms that
have funded life sciences in Florida. Average deal size has increased from $9M to $17M.
Nationally, Florida still lags behind for seed and early stage funding, but the overall picture is
improving. Average annual life science funding 2002-2004 was $33M while in 2007 (YTD) it
has increased to over $300M.
Florida VC Life Science Funding $M
200 VC Life Science Funding
2005 2006 2007 (1Q-3Q)
Michael A. Schmitt, MD
Quality of life: overall attractiveness as a “desirable place” to live and work.
Florida has been ranked in the top 3 places to live in the US since 1997 and currently ranks
number 2 behind California.
The state’s current population of over 18M will soon take Florida to the number 3 position
behind California and Texas and will continue to increase at over 300,000 new residents each
year through 2010. Per capita income is 2nd in the Southeast while leading the southeast in
high tech employment and being #4 in the US.
Florida has the 4th largest economy in the US with a projected GDP > than $745B in 2007.
Moreover, Florida’s real GDP grew over 70% faster as compared with the US over the past
Affordable lab and office space: commercial office space to meet the needs of
various life science companies at all levels of development.
As a collective group, Florida has more than 20 entities consisting of technology incubators,
biofacilities and research parks located throughout the state. These facilities are critical in
providing the resources in the development process for start-up and early stage companies.
Approximately one third of Florida biotech companies are incubator affiliated.
The key biotech facilities include (but are not limited to):
Sid Martin Biotechnology Incubator (Alachua, UF)—this is Florida’s only fully-dedicated
biotechnology incubator and houses more than a dozen companies including offices and lab
space. SMBI was recognized as the number 2 technology incubator in the world by the National
Business Incubation Association in 2007.
University of Central Florida Technology Incubator (Orlando, UCF)—the incubator was honored
in 2004 by the National Business Incubation Association as the technology incubator of the
Gainesville Technology Enterprise Corporation (Gainesville)
Tampa Bay Technology Incubator (Tampa, USF)
Technology Business Incubator (FAU, Boca)
Patients and markets: access to healthcare facilities, providers and large patient
Florida has a number of world class health care facilities that collectively are ranked in the top
10 in the US and are involved in conducting hundreds of clinical trials among the various
hospital systems. These include the clinical research facilities mentioned previously along with
(but not necessarily limited to) the following:
Bascom Palmer Eye Institute (Miami)
Cleveland Clinic (Weston and Naples)
Mayo Clinic (Jacksonville)
Jackson Memorial Hospital (Miami)
M.D. Anderson Cancer Center (Orlando)
Mount Sinai Medical Center (Miami Beach)
Shands Healthcare System (Gainesville)
Michael A. Schmitt, MD
Favorable business environment:
Florida is currently ranked 5th in having the best business tax climate in the US along with being
ranked in the top 10% of major metro regions with the lowest operating costs of an average
The University of Florida Sid Martin Biotechnology Incubator has developed a biotech database
that establishes a baseline to monitor growth of the bioscience industry in Florida. The “Florida
BioDatabase” will track all Florida biotech companies along a variety of parameters including
(but not limited to) technology, research focus, products and venture capital funding. This is the
first time that a comprehensive ongoing analysis of Florida’s biotech industry has been
accomplished and it is felt this will be a valuable resource to the bioscience community as well
as to government, business development and investment entities.
Florida has now established itself with a true “bioscience brand” that includes world class
research centers, key academic institutions, a strong economy and being a desirable place to
live. The baseline growth in the number of life science companies is among the fastest in the
Investment funding, which previously had been slow to follow is now increasing at a rate
significantly greater than that of the US. Venture firms are finally recognizing the development
potential for the life science industry in Florida.
I would expect Florida to outperform its benchmark regions by more than 10% over the next 12
months as measured along various life science development indicators and maintain a firm
standing within the top 10 biotech regions nationwide.
Michael A. Schmitt, MD
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February 15, 2007.
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