Arizona's Bioscience Roadmap
Tracking the progress of Arizona's bioscience initiative
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Yearly Highlights
• Nov. 7: Voters approve Proposition 301, providing $1 billion over 20 years for scientific research at Arizona’s public universities through the Technology Research and Initiative Fund.
Yearly Highlights
• UA Science and Technology Park is named #1 research park in the nation by the Association of University Research Parks (AURP).
• Flinn Foundation commits to 10 years of major funding (a minimum of $50 million) to advance Arizona’s bioscience sector.
• BIO5 Institute (known then as IBSB) debuts at UA.
Yearly Highlights
• February: Governor Jane Dee Hull appoints a task force to raise funds to attract the International Genomics Consortium (IGC) and the Translational Genomics Research Institute (TGen).
• May 1: BioIndustry Organization of Southern Arizona (BIO-SA), a 501(c)6 organization, is formed.
• June 26: Dr. Jeffrey Trent announces IGC’s move to Arizona and establishment of TGen, spurred by a $90 million package assembled from collaborating public and private sources.
• December: Arizona’s Bioscience Roadmap, commissioned by the Flinn Foundation and drafted by Battelle, outlines recommendations for Arizona to become a national biosciences leader.
Arizona's Bioscience Roadmap Brochure, December 2002. (Download PDF)
A r i z o n a’s Bioscience Roadmap A 10 - Y E A R V I S I O N FOR ARIZONA IN THE BIOSCIENCES highlights of the 2002 battelle arizona study Mapping a Plan for Arizona in the Biosciences Why Arizona Should Invest in the Biosciences W H AT I S T H E B AT T E L L E S T U D Y ? In Spring 2002, the Flinn Foundation commissioned the Battelle Memorial Institute – a worldwide leader in the development, commercialization, and transfer of technology – to assess Arizona’s competitive position in the biosciences and to develop a biosciences economic roadmap for the next decade. The study was guided by a 25-member steering committee comprised of business, economic development, government, and university leaders. This publication summarizes Battelle’s work and presents strategies that can define Arizona’s longterm biosciences plan. An executive summary of Battelle’s findings and recommendations is available at www.f linn.org. W H AT A R E T H E B I O S C I E N C E S ? Bioscience is one of the fastest growing sectors of the 21st Century economy. Bioscience research will lead to the availability of new medical treatments for Arizona residents. The biosciences represent a chance to build a higherwage, skilled, and technology-driven employment base. The bioscience sector offers employment opportunities, providing jobs at various skill levels. The bioscience sector builds upon Arizona’s strengths in electronics, optics, and advanced manufacturing. The bioscience sector can bring stability to Arizona’s economy by balancing more cyclical industries. RETURN ON INVESTMENT The nation’s economy is changing at a dramatic pace as technology increasingly fuels economic growth. Today’s emerging markets access and control knowledge, especially in the biosciences. The biosciences encompass many subsectors and various economic opportunities: D E FI N ITIO N O F B IO SCI EN C ES – F I VE SUBSEC TORS If Arizona invests an additional $140 million a year in the biosciences for the next 10 years, it could generate ... More than $6 in return for each $1 invested to leverage other financial support – similar to the experience of leading states. More than triple its current annual funding from the National Institutes of Health (NIH) and match the annual growth rate of the top-10 states. More than 32,000 direct and indirect jobs and 120 bioscience firms. More than one-quarter of the annual investment goal is already met through existing commitments and resources. Organic and Agricultural Chemicals Product-Oriented Drugs and Pharmaceuticals Medical Devices and Instruments Hospitals and Laboratories Service-Oriented Research and Testing 1 2 The Journey has Begun The Battelle 10-year goal for Arizona in the biosciences: Arizona is a leading southwestern state in selective biosciences, built around world-class research, clinical excellence, a growing base of cutting-edge enterprises, and supporting firms and organizations. By initiating bold action, Arizona can become a biosciences leader and ensure long-term prosperity for its citizens. In fact, the journey has already begun. An unprecedented coalition of university, state, local, healthcare, medical research, and business leaders has made a commitment to seeing this vision become a reality. Their efforts helped “fast track” Arizona on this path to biosciences excellence by creating the Translational Genomics Research Institute (TGen) and persuading the International Genomics Consortium (IGC) to locate in Arizona. State voters have approved two initiatives to increase research support, and Arizona universities have begun construction of new research and laboratory facilities. T O M A I N TA I N T H I S M O M E N T U M A N D F U R T H E R T H I S V I S I O N , A R I Z O N A M U S T: G E T T I N G T H E R E W I L L TA K E : Patience and long-term commitment. This journey will take a decade or more for measurable returns. Arizona is playing catch-up to states with a 15-year lead. Champions. Leaders are needed to champion this effort, bring the appropriate players together, and implement the action steps recommended in Arizona’s Bioscience Roadmap. Strategic focus. Investments should target research niches where advantages already exist or are emerging. Strong public/private partnerships. Collaboration through strong working partnerships between and among higher education, industry, nonprofit, and philanthropic leaders is vital. Active state and local government support. A sup- portive government sector must work to leverage federal dollars and create the business climate in which growth can occur. Collaboration of Arizona research institutions. Partnerships are essential to create an optimum environment for leveraging additional research funding. INVESTMENTS NOW = GROWTH TOMORROW Continue to mobilize public and private leadership, and increase the general public’s k nowledge and understanding of the biosciences and its impact on the quality of life in Arizona. Invest in higher education research excellence, as well as bioscience facilities, labs, and faculty at the state’s public universities. Attract a greater share of federal bioscience research funding. Build “trees of talent” by encouraging, developing, and retaining scientific and technical talent in the state. Total Jobs 40,000 40,141 800 Total Firms 749 629 20,000 9,101 2001 2007 2012 20,293 400 286 2001 2007 2012 Annual NIH Funding $400M $385M $241M $118M 2001 2007 2012 $200M Biosciences growth rates for Arizona based on an additional $140 million in annual investments beginning in 2003. Baseline forecast. 3 4 Arizona’s Place on the National Biosciences Map Making a Mark on the Biosciences Map Several messages emerged from data compiled by the Battelle team – some encouraging and some challenging: ENCOURAGING NEAR-TERM TECHNOLOGY P L AT F O R M S ( 5 Y E A R S ) Arizona’s economic base in the biosciences is small but expanding, outpacing national trends. Arizona’s public research universities have proven they can leverage federal dollars and establish research excellence, as they have already done within the physical sciences. Arizona is well positioned to take advantage of niche markets that benefit from the trend toward convergence of technologies in electronics, information, optics, materials, and biosciences. CHALLENGING A flourishing future in the biosciences hinges on the presence of a world-class research base. This is essential to compete with states that have well-developed programs and major funding commitments. Arizona’s research institutions and medical centers have essential competencies and a critical mass of seasoned investigators that can gain national prominence in select fields within the next five years if well organized and funded: Neurological sciences: Neural engineering, imaging, and clinical research with applications to Alzheimer’s disease, Parkinson’s disease, and Epilepsy. Cancer therapeutics: Advancing new cancer therapies and developing anti-cancer drugs. Arizona’s growth in basic research has slowed as state support of our universities has decreased. In the biosciences, Arizona’s universities lag the national average. Arizona must invest in university faculty, laboratories, and state-of-the-art equipment to take advantage of increases in federal medical and life sciences funding. Failure to do so means the state will continue to miss out on a key driver of future economic growth. Arizona’s fiscal policy and tax base were designed in an old economy. Arizona must provide an adequate economic development “tool kit” to attract, retain, and grow bioscience firms. Bioengineering sciences: Providing a strong base for medical applications in imaging and diagnostics, implants, and prosthetics. LONG-TERM TECHNOLOGY P L AT F O R M S ( 5 – 1 0 Y E A R S ) Four additional platforms that offer the most potential for long-term growth: Infectious diseases: Microbiology research to address prevention and treatment of communicable diseases. Asthma: Clinical studies of this debilitating respiratory condition. Diabetes: Clinical investigation into a disease that affects Arizonans at an alarming rate. Agriculture biotechnology: Exploration of plant genomics in developing new crops and identifying nutraceuticals. 5 6 Paving the Way Battelle proposes four strategies to develop Arizona’s bioscience research base and build a critical mass of bioscience companies: Strategy One: Build research infrastructure of talent, Achieving the Goal The following proposed performance measures should be used to chart Arizona’s progress: Ensure start-up and survival rates of Arizona bioscience firms exceeding the average of benchmark states. Leverage federal and other dollars at least 3:1 to local investment. By 2005, generate bioscience venture investments totaling $100 million to Arizona biosciences firms. By 2007, increase Arizona’s NIH funding in bioscience research and development at a rate equal to or greater than the historical growth rate of the top-10 states. By 2007, secure total funding of $214 million. By 2007, increase concentration of bioscience companies in at least two industry sectors to 20 percent more specialized than the nation. By 2007, support university-related start-up bioscience companies equal to top quartile of all universities. Progress on the proposed actions: 70 percent substantial achievement within three years and 90 percent substantial achievement within five years. facilities, and equipment around selective technology platforms and core competencies. Strategy Two: Build a critical mass of bioscience firms and encourage the commercialization of research discoveries. Strategy Three: Offer a business environment that supports, sustains, and encourages the growth of bioscience enterprises – to start, expand, and remain in Arizona. Strategy Four: Encourage the state’s citizens to become more informed and young people to explore and pursue scientific and technical careers. A list of 19 action steps related to these strategies is presented in Battelle’s executive summary, available at www.f linn.org. In 2003, Phase II of the Battelle study will focus on implementing these strategies and action steps. The Flinn Foundation will make available to interested organizations the expertise of the Battelle team in furthering Arizona’s biosciences sector. 7 8 Acknowledgements Our appreciation to the following members of the Battelle Steering Committee for their commitment to defining a long-term biosciences strategy for Arizona. Harry Beaty, M.D. Former Dean, Northwestern University School of Medicine Adviser to the Flinn Foundation Len Becker Vice President, Economic Development Greater Phoenix Chamber of Commerce Michael Berens, Ph.D. Vice President, Research Translational Genomics Research Institute Kendall Bert Director, Department of Economic Development City of Tucson Linda Blessing, Ph.D. Executive Director Arizona State Board of Regents Margie A. Emmermann Director Arizona Department of Commerce Jonathan Fink, Ph.D. Vice Provost for Research Arizona State University The Honorable Susan Gerard Arizona State Senate David J. Gullen, M.D. Mayo Community Internal Medicine Chairman The Flinn Foundation The Honorable Deb Gullett Arizona House of Representatives Michelle Hanna, Ph.D. President and CEO Designer Genes, Inc. Robert Melnick, Ph.D. Director Morrison Institute for Public Policy Gary M. Munsinger, Ph.D. President and CEO Research Corporation Technologies John W. Murphy Executive Director The Flinn Foundation Richard Powell, Ph.D. Vice President for Research and Graduate Studies University of Arizona Dawn Schroeder, DDS, MA Director Arizona Disease Control Research Commission Sheryl Sculley Assistant City Manager City of Phoenix Joan Shapiro, Ph.D. Vice President of Research Barrow Neurological Institute Stephen Todd Executive Vice President Sun Community BanCorp Paul Waddell Director of Economic & Community Relations Pinnacle West Capital Corporation Steve Weathers President and CEO Greater Tucson Economic Council Rick Weddle President and CEO Greater Phoenix Economic Council Steven M. Wheeler, Esq. Senior Vice President, Transmission Operations, Regulation & Planning Pinnacle West Capital Corporation Raymond Woosley, M.D., Ph.D. Vice President University of Arizona Health Sciences Center Flinn Foundation Staff Saundra E. Johnson Associate Director for Public Programs The Flinn Foundation William A. Read, Ph.D. Associate Director for Policy & Evaluation The Flinn Foundation For More Information: Brad Halvorsen Director of Communications The Flinn Foundation Tel: 602.744.6803 Walter H. Plosila, Ph.D. Vice President for Public Technology Management Battelle Memorial Institute Tel: 216.898.6403 An executive summary of the Battelle team’s research and recommendations can be found on the Flinn Foundation’s Web site, www.f linn.org. The Battelle Memorial Institute is the world’s largest private, nonprofit research and development firm. The Arizona study was directed by its Technology Partnership Practice. The Flinn Foundation is a private, nonprofit philanthropic endowment based in Phoenix. 1802 n. central avenue phoenix, az 85004 - 1506 phone 602.744.6800 info@flinn.org www.flinn.org
Yearly Highlights
• Jan. 31: Governor Janet Napolitano creates the Governor’s Council on Innovation and Technology to advance technology-related growth and economic development.
• March: ASU President Michael Crow announces creation of Arizona Technology Enterprises to help ASU researchers obtain patents and launch spin-off companies.
• April: Arizona Board of Regents charters the Arizona Biomedical Collaborative, a joint effort of the three state universities, to be headquartered in downtown Phoenix.
• April 29: Biodesign Institute at ASU breaks ground on its first facility; Dr. George Poste is named Biodesign’s founding director.
• June 3: Salt River Pima-Maricopa Indian Community donates $5 million to TGen and forges partnership to study diabetes and other diseases prevalent among American Indians.
• June 13: TGen breaks ground on its downtown-Phoenix headquarters.
• June 19: The state Legislature approves $440 million for research-facility construction.
• June 20: Arizona’s Bioscience Roadmap Steering Committee, piloted by former Phoenix Mayor Skip Rimsza, holds its inaugural meeting.
• October: ASU Technopolis forms, providing business mentorship, education, and resources to ASU-affiliated life-science entrepreneurs.
• November: Arizona Bioindustry Cluster is reorganized as the Arizona BioIndustry Association, a 501(c)6 trade organization.
Roadmap Progress Report Brochure, December 2003. (Download PDF)
Full Speed Ahead: Arizona’s Bioscience Momentum a publication of the flinn foundation ramping up rizona made substantial strides in 2003 in its drive to become a national competitor in the bioscience industry, one of the fastest-growing segments of the 21st century knowledge economy. Led by successful legislation to fund $440 million in research facilities at the state universities, numerous developments unfolded that are helping to chart progress on the state’s long-term bioscience strategy, known as Arizona’s Bioscience Roadmap. A A summary of these accomplishments appears on the reverse side of this brochure. They are categorized by the four major Roadmap strategies identified by the Battelle Memorial Institute. Battelle, a worldwide leader in the development, commercialization, and transfer of technology, is facilitating the Roadmap project. Here is a general overview of progress highlights from the Roadmap’s first two years: 2002 – research: Extensive research and interviews culminated in a report concluding that Arizona can become a leading state in niche areas of the biosciences. The state is positioned to reach national prominence within five years in three scientific disciplines – bioengineering, cancer research, and neurological science – if they are properly funded and organized. Overall, Battelle offered 19 specific action steps for Arizona to address – some immediate, others long term. Additional details are available at www.flinn.org. 2 0 0 3 – i n i t i a l i m p l e m e n tat i o n : Three statewide committees of leading scientists developed action plans on the scientific platform areas. Three counterpart workgroups focusing on economic development issues completed action plans on areas identified as critical by Battelle: capital formation, entrepreneurial assistance, and facilities. Recommendations of all six workgroups will be formalized and announced in early 2004. The Roadmap project is commissioned by the Flinn Foundation. » the road ahead o continue Arizona’s momentum, two major issues must be addressed during 2004. These are the critical, time-sensitive items among a larger set of recommendations to be moved forward by the Arizona’s Bioscience Roadmap Steering Committee in January 2004. T tech-transfer initiative: Arizona has a golden opportunity to tackle one of its current weaknesses – the capacity for universities to turn research discoveries into revenue and benefit from spinoff companies. Voters can approve a Constitutional amendment in November 2004 that would enable universities to take equity positions in companies stemming from their discoveries. capital formation: Arizona struggles not only in attracting venture capital, but especially in pre-seed and seed funding that lead discoveries to the venture-capital stage. The formation of a statewide bio-seed fund is needed to stimulate private support and investment. The three scientific platforms will continue to develop plans to establish statewide collaborations among scientists working in bioengineering, cancer research, and neurological science. Strategies must be cemented to address cross-cutting needs that affect all disciplines, such as shared facilities and bioinformatics tools. The three economic development workgroups will continue to address pertinent issues collaboratively as needs and opportunities arise. Finally, a new workgroup will be introduced to complement ongoing activities concerning the state’s bioscience workforce needs. » a statewide “bio-tapestry ” many diverse organizations are fueling collaborative efforts to craft arizona’s future in bioscience. associations corporate education government, tribes hospitals, research institutes philanthropy ARIZONA BIOINDUSTRY ASSOCIATION SALT RIVER PROJECT NORTHERN ARIZONA UNIVERSITY INTEL INTEGRATED BIOMOLECULE CORPORATION INTERNATIONAL GENOMICS CONSORTIUM BANK ONE ARIZONA DEPARTMENT OF COMMERCE HIGH THROUGHPUT GENOMICS ARIZONA STATE UNIVERSITY DMB ASSOCIATES HERBERGER ENTERPRISES ARIZONA HOSPITAL AND HEALTHCARE ASSOCIATION PIMA COMMUNITY COLLEGE RESEARCH CORPORATION TECHNOLOGIES SCOTTSDALE HEALTHCARE BLUE CROSS BLUE SHIELD OF ARIZONA GOVERNOR’S COUNCIL ON INNOVATION AND TECHNOLOGY MEDTRONIC NATIONAL ASSOCIATION OF INDUSTRIAL AND OFFICE PROPERTIES ORTHOLOGIC CORP. ST. LUKE’S HEALTH INITIATIVES COMMERCE AND ECONOMIC DEVELOPMENT COMMISSION BARROW NEUROLOGICAL INSTITUTE LEWIS & ROCA, LLP GREATER TUCSON ECONOMIC COUNCIL GREENBERG TRAURIG, LLP ARIZONA DISEASE CONTROL RESEARCH COMMISSION TRANSLATIONAL GENOMICS RESEARCH INSTITUTE PHOENIX UNION HIGH SCHOOL DISTRICT W.L. GORE & ASSOCIATES IMARX THERAPEUTICS CITY OF TEMPE AND MAYOR’S OFFICE GREATER YUMA ECONOMIC DEVELOPMENT CORPORATION UNIVERSITY OF ARIZONA CORONADO VENTURE MANAGEMENT CITY OF GLENDALE ECONOMIC DEVELOPMENT DEPT. CITY OF MESA ECONOMIC DEVELOPMENT DEPT. GREATER PHOENIX ECONOMIC COUNCIL VALLEY VENTURES, LLC SONORA QUEST LABORATORIES NATIONAL INSTITUTE OF DIABETES AND DIGESTIVE AND KIDNEY DISEASES COMERICA SALT RIVER PIMA-MARICOPA INDIAN COMMUNITY WELLS FARGO ARIZONA DOWNTOWN PHOENIX PARTNERSHIP CARL T. HAYDEN VETERANS ADMINISTRATION MEDICAL CENTER ARIZONA PARTNERSHIP FOR HIGHER EDUCATION CITY OF AVONDALE ECONOMIC DEVELOPMENT DEPT. AMERICA WEST AIRLINES ARIZONA TECHNOLOGY COUNCIL MARICOPA COMMUNITY COLLEGES GREATER FLAGSTAFF ECONOMIC COUNCIL ARIZONA COMMUNITY FOUNDATION FLAGSTAFF CHAMBER OF COMMERCE FLAGSTAFF REGIONAL MEDICAL CENTER SUNCOR DEVELOPMENT COMPANY THE VIRGINIA G. PIPER CHARITABLE TRUST PINNACLE WEST CAPITAL CORP. ARIZONA HOUSE OF REPRESENTATIVES ARIZONA PUBLIC SERVICE CITY OF BUCKEYE ECONOMIC DEVELOPMENT DEPT. GARY L. BOWEN AND ASSOCIATES GREATER PHOENIX CHAMBER OF COMMERCE WASATCH VENTURE CAPITAL ARIZONA BIOMEDICAL COLLABORATIVE CITY OF FLAGSTAFF AND MAYOR’S OFFICE BANNER GOOD SAMARITAN MEDICAL CENTER CITY OF SCOTTSDALE AVENTIS BIOINDUSTRY ORGANIZATION OF SOUTHERN ARIZONA THE KEMPER AND ETHEL MARLEY FOUNDATION OFFICE OF THE GOVERNOR PRICEWATERHOUSECOOPERS SOUTHERN ARIZONA TECHNOLOGY COUNCIL MOTOROLA L. ROY PAPP & ASSOCIATES CITY OF SURPRISE ECONOMIC DEVELOPMENT DEPT. VERITAS HOLDINGS ARIZONA SENATE WESTERN MARICOPA COALITION VALLEY VENTURES II, LP SUN HEALTH RESEARCH INSTITUTE SNELL & WILMER, LLP CREATIVE HEALTHCARE SOLUTIONS CITY OF CHANDLER ECONOMIC DEVELOPMENT DEPT. THE PLAZA COMPANIES CAPITOL BANCORP ARIZONA BOARD OF REGENTS RIBOMED CITY OF PHOENIX AND MAYOR’S OFFICE THE FLINN FOUNDATION STONER-ROLAND, LLC ARIZONA MEDICAL ASSOCIATION CB RICHARD ELLIS CITY OF TUCSON AND MAYOR’S OFFICE ST. JOSEPH’S HOSPITAL AND MEDICAL CENTER BANNER HEALTH SYSTEM ARRIS VENTURES YAVAPAI COLLEGE SOLSTICE CAPITAL MARICOPA COUNTY MARTINEZ AND CURTIS, PC MAYO CLINIC SCOTTSDALE SALT RIVER DEVCO BHHS LEGACY FOUNDATION LEE & ASSOCIATES additional information on arizona’s bioscience industry and the flinn foundation can be found at www.flinn.org. strategy 1 Build Research Infrastructure » 2003 progress university research bill passes: The Arizona Legislature approves $440 million in research facilities at the state’s public universities. Major construction begins at Arizona State University and the University of Arizona, with projects planned at Northern Arizona University and in downtown Phoenix. universities join forces: The three universities form the Arizona Biomedical Collaborative (ABC) to plan and coordinate joint efforts on education, research, and health policy. ASU and UA allocate $27 million for a building at the new Phoenix Bioscience Center at Copper Square. bioscience booms in downtown phoenix: An additional $15 million pledge by the City of Phoenix spurs groundbreaking of the six-story headquarters of the Translational Genomics Research Institute (TGen), the anchor building of the Phoenix Bioscience Center at Copper Square. The facility also will house the International Genomics Consortium and related tenants. Others planning or exploring a presence on or near the campus: ABC, ASU, UA’s Arizona Health Sciences Center, Maricopa Community Colleges, and a new biotech high school of the Phoenix Union High School District. university bio institutes emerge: Construction begins on facilities for new bioscience institutes at ASU (Arizona Biodesign Institute) and UA (Institute for Biomedical Science and Biotechnology). Another is planned at NAU. Renowned biosciences leader George Poste is named director of ASU’s Biodesign Institute. tgen hits ground running: Barely a year into operations, TGen reports 130 employees, 70 with advanced degrees; research alliances with the state universities and numerous other institutions in Arizona and beyond; more than $30 million in federal grants under review; development of one of the world’s most powerful supercomputers through a partnership with ASU and IBM; and plans for a major lab at Mayo Clinic Scottsdale. strategy 2 Build Critical Mass of Firms » 2003 progress tech-transfer bill passes: The Arizona Legislature approves a bill authorizing voters to consider a Constitutional amendment to enable universities to take equity positions in companies stemming from their scientific discoveries. The measure will be on the ballot in November 2004. university tech-transfer entities debut: ASU revamps its tech-transfer operations by introducing Arizona Technology Enterprises, LLC, to enhance commercialization of technology under development. The firm also supports NAU’s tech-transfer operations. The University of Arizona Foundation forms UAF Technologies and Research, LLC, to manage the development of 33 donated patents from Procter & Gamble. entrepreneurial programs launched: Three major new efforts are introduced to develop the entrepreneurial capacity of technology and life-science innovators: ASU creates Technopolis; UA forms the Arizona Center for Innovation, housed at the UA Science and Technology Park; and the Arizona Business Accelerator debuts in the Valley. ua tech park expands: The UA Science and Technology Park expands for the first time since 1994. A new, 70,000-square-foot building initiates a long-term campaign to add 1.9 million square feet, including buildings with wet-lab space. Acenta, a Washington, D.C.-based biotech firm, relocates to the park, citing its environment for innovation, available wet-lab space, and proximity to TGen. firms take root: Beyond TGen and IGC, 12 bioscience firms locate or expand in Arizona in FY 2003 with the assistance of the Arizona Department of Commerce and its economic development partners. The companies are expected to create up to 800 jobs over the next three years. strategy 3 Enhance Business Environment » 2003 progress governor targets bioscience: Governor Janet Napolitano creates the Governor’s Council on Innovation and Technology to strengthen Arizona’s knowledge-based economy. Bioscience is included among the primary sectors of interest. phoenix offers investment incentives: The Phoenix New Markets Venture Capital Program offers a $30 million investment opportunity for venture capital funds and nearly $12 million in tax credits to investors interested in eligible life-science and technology firms. The City of Phoenix is the largest recipient nationally of New Markets Tax Credits ($66 million) and one of only a few offering programs to attract venture capital. major conferences come to arizona: Prominent conferences are held in Arizona, including the first annual BioFunding Summit to pair leading scientists with investors, and two conferences of the American Association for Cancer Research – Oncogenomics and the International Conference on Frontiers in Cancer Prevention Research. arizona bio delegation multiplies: Arizona sends 38 representatives to the world’s largest biotech event, BIO 2003, compared to six in 2002. strategy 4 Prepare Workforce, Educate Citizens » 2003 progress workforce study released: The Battelle Memorial Institute identifies a shortage of bioscience workers trained in Arizona. Strategies are proposed to align training and education programs with the state’s rapidly growing bioscience employment base. The Bioindustry Workforce Commission of the Maricopa Community Colleges oversees the study in partnership with the Arizona Department of Commerce, Pima Community College, Yavapai College, and the Flinn Foundation. higher education adds bio: New biotech education and training programs are announced at the state’s three universities, the Maricopa Community Colleges, Pima Community College, and DeVry University in response to local industry growth. biotech high school planned: The Phoenix Union High School District plans a selective high school specializing in biotech studies, to be located at the Phoenix Bioscience Center in downtown Phoenix. Voters approve funding as part of a district bond/override package. internet portal debuts: A new Web site (www.flinn.org) packages news and information on Arizona biosciences, and serves as a gateway to statewide online bioscience resources. Also, TGen adds extensive reference information to its site (www.tgen.org) to increase public understanding of genetics.
Yearly Highlights
• Aug. 4: Gov. Janet Napolitano, UA President Peter Likins, ASU President Michael Crow, and Regent Gary Stuart sign memorandum of understanding to create the Phoenix Biomedical Campus, to include the UA College of Medicine-Phoenix in partnership with ASU.
• October: The CardioWest total artificial heart, developed at UA, is the first FDA-approved implantable artificial heart. The American Heart Association calls it the top advance of 2004.
• Oct. 19: Gov. Janet Napolitano appoints the Arizona Commission on Medical Education and Research (ACMER) to strengthen university biomedical-education and research programs.
• Nov. 2: Maricopa County voters approve a bond issue that includes $100 million to expand bioscience and healthcare training for Maricopa County Colleges.
• Dec. 14: Biodesign Institute’s first building, a $73 million, 170,000-square-foot facility, is dedicated.
Roadmap Progress Report Brochure, December 2004. (Download PDF)
The Road Ahead C O L L A B O R AT I N G O N A R I Z O N A’ S B I O S C I E N C E F U T U R E a publication of the flinn foundation Full Speed Ahead C ollaboration continues to be the fuel that drives the development of Arizona’s bioscience sector. The year 2004 marked the birth of major institutions, widespread construction of research facilities, and advancements in workforce preparation, all stemming from intersections of diverse organizations in the private and public sectors. Equally prominent opportunities await in 2005. The highlights of Arizona’s 2004 progress are reflected on the reverse side of this brochure, categorized under the four major strategies of Arizona’s Bioscience Roadmap. They set the stage for another eventful year in 2005, headlined by two time-sensitive issues that are critical to address: Capital Formation: Measures to spur venture capital and earlier-stage funding for bioscience and other high-tech companies failed in the Legislature in 2004. The lack of such capital is one of the foremost needs cited by the Roadmap study. The Arizona’s Bioscience Roadmap formation of a bio-seed fund and related measures is vital » Arizona’s long-term plan to bring to stimulate private support and investment, and will be its bioscience sector to national vigorously pursued in 2005. competitiveness Medical School: The development plan for the Phoenix expansion of the University of Arizona College of Medicine, in partnership with Arizona State University, will be formed in 2005. The process will be overseen by a commission appointed by Gov. Janet Napolitano. Decisions made will have paramount impact on Arizona’s future physician training and supply, healthcare research and delivery, and the unfolding of the extensive bioscience campus in downtown Phoenix. » Driven by an extensive collaboration among statewide scientists, business and policy leaders » Research and facilitation provided by Battelle » Commissioned and coordinated by the Flinn Foundation » Translational research component co-sponsored by Arizona Disease Control Research Commission » Details available at www.flinn.org Miles Traveled A nutshell summary of Roadmap highlights to date: 2002 » Research concludes that Arizona has the ingredients to achieve national prominence within five years in three scientific disciplines – bioengineering, cancer research, and neurosciences » Four primary strategies and 19 actions are recommended that would strengthen and diversify Arizona’s economy by generating 32,000 well-paying jobs, 120 firms, and tripling research funding from the National Institutes of Health 2003 » Multiple Roadmap committees and workgroups are formed under the Arizona’s Bioscience Roadmap Steering Committee to implement the recommendations » The Legislature passes seminal legislation to allocate $440 million for construction of university research facilities » The state’s universities demonstrate unprecedented partnership on collaborative bioscience endeavors 2004 » The universities begin to align faculty and facility investments with plans completed by Roadmap scientific committees; research workgroups are added to address emerging needs in bio-imaging and translational research » University collaboration leads to plans for the UA medical school in downtown Phoenix in partnership with ASU » The bioscience workforce pipeline is bolstered by a successful $950 million bond issue for Maricopa Community Colleges that includes more than $100 million for bioscience and healthcare training strategy 1 » 2004 progress Build Research Infrastructure Universities unite to expand medical school: ASU and UA agree to work jointly to launch an extension of the UA medical school in downtown Phoenix. The unique arrangement involves the UA colleges of medicine and pharmacy, and ASU programs including its College of Nursing. Gov. Janet Napolitano appoints a commission to guide its formation. Tucson lures innovative FDA drug institute: UA and Tucson leaders raise pledges of $7.5 million to form the new Institute for Global Pharmaceutical Development. The firm plans to study ways to speed the drug-development process and involves a partnership among UA, the U.S. Food and Drug Administration, and SRI International. Tribes plan biomedical campus: The Salt River Pima-Maricopa Indian Community announces plans to build a biomedical research campus involving four buildings totaling 240,000 square feet of lab and office space. Bio construction booms statewide: Staff at TGen and the Biodesign Institute at ASU move into their new headquarters. More than 1.3 million square feet of scientific labs and related office space opens or is under construction in the Phoenix metro area, Tucson, and Flagstaff. TGen/IGC make impact: TGen forms extensive research alliances, launches its Center for Translational Drug Development (TD2), and announces five major genetic discoveries. Plans are unveiled for a TGen Foundation to support research activities. The International Genomics Consortium debuts its cornerstone project, expO, intended to accelerate cancer research to bring new therapies to patients. Federal grants grow: Arizona’s funding from the National Institutes of Health increases 30 percent between 2001-03, matching the average growth rate of the top-10 states. Additional major awards are received, such as a $43.7 million Army contract to ASU to produce flexible computer displays using nanotechnology developed at the Biodesign Institute. strategy 2 » 2004 progress Build Critical Mass of Firms ASU, Scottsdale form tech center: The university and city establish the ASU Scottsdale Center for New Technology and Innovation to enhance and expand the commercialization of hightech research. The planned 1.2-million-square-foot facility is expected to employ up to 4,000. UA tech park to expand: The UA Science and Technology Park announces plans to potentially triple in size, to 6 million square feet, over the next 10 years. Additional wet-lab space would be included. New bio accelerator in works: The City of Phoenix approves first-phase development of P-Bio, a new accelerator offering 12,000 square feet of space for fledgling bioscience firms in downtown Phoenix. Parent firm Ribomed will also move to the site adjacent to the TGen campus. Wet-lab solution proposed: An ASU study identifies more than 1.4 million square feet of cleanroom space in the Phoenix metro area that can be converted into wet labs. The excess space from the semiconductor industry could provide a cost-effective means to ease the state’s shortage of wet-lab space. Tech-transfer lessons learned: A failed constitutional amendment to permit universities to take equity positions in companies that use their research innovations provides valuable lessons in proposing the measure again in 2006. strategy 3 » 2004 progress Enhance Business Environment Major life-sciences investor hits town: Lokoya Advisors, a top life-sciences broker dealer, opens a Scottsdale office and signs an agreement to work with TGen. Lokoya has been involved in more than 40 transactions creating the formation of $7 billion in capital for life-sciences firms. Venture capital fund underway: A private-sector Knowledge Economy Capital Fund is established to spur development of early-stage tech companies. Organizers land the first $25 million of a proposed $100-million pool. Trade groups unite: The Arizona BioIndustry Association signs partnership agreements with the Bioindustry Organization of Southern Arizona and the Arizona Technology Council, pooling their collective strengths and resources. ‘Angel’ conference debuts: The Arizona Angel Investment Conference replaces the annual venture-capital conference. The move reflects the state’s increasing need for funding of high-tech firms in the formative stage preceding venture-capital investment. Branding projects launched: Two linked efforts commence to create a consistent identity for Arizona in the high-tech field and the biosciences. Arizona gains at BIO: The state’s presence at BIO 2004, the world’s largest biotechnology trade show, continues to grow. Arizona sends a delegation of 60 representatives, compared to 38 in 2003, and doubles its floor space. strategy 4 » 2004 progress Prepare Workforce, Educate Citizens $100 million slated for workforce prep: A successful bond issue for the Maricopa Community Colleges designates more than $100 million for future facilities and equipment to expand bioscience and healthcare training programs. The community college system also announces plans to open a downtown Phoenix campus, in part to further partnerships with the universities and TGen. Commerce funds on-job training: The Arizona Department of Commerce awards more than $1 million in Arizona Job Training Grants to 10 bioscience companies to support customized training of 786 new and incumbent employees. ASU first in genomics law: ASU introduces a master’s program in genomics and biotechnology law – the first of its kind in the nation. Think tanks arrive: A Columbia University-based science policy group, the Consortium for Science, Policy & Outcomes, moves its operations to ASU. A similar group, the Infotech Institute, debuts in Tucson to study issues involving technology, education, health care, and government. Consortium explores medical issues: A collaborative group emerges to raise awareness of the ethical, humanistic, legal, and policy facets of medicine through noted lecturers and conferences. The Arizona Consortium for Medicine, Society and Values involves a partnership among ASU, the Flinn Foundation, Mayo Clinic Scottsdale, TGen, and UA College of Medicine. Town Hall to study biosciences: The Arizona Town Hall devotes its fall 2005 project to exploring the state’s developing bioscience industry. A Statewide “Bio-Tapestry” many diverse organizations are fueling collaborative efforts to craft arizona’s future in bioscience. associations associations corporate corporate education education government, tribes government, tribes hospitals, research institutes hospitals, research institutes philanthropy philanthropy ARIZONA BIOINDUSTRY ASSOCIATION SALT RIVER PROJECT NORTHERN ARIZONA UNIVERSITY INTEL INTEGRATED BIOMOLECULE CORPORATION INTERNATIONAL GENOMICS CONSORTIUM MOTOROLA ARIZONA DEPARTMENT OF COMMERCE HIGH THROUGHPUT GENOMICS ARIZONA STATE UNIVERSITY DMB ASSOCIATES HERBERGER ENTERPRISES ARIZONA HOSPITAL AND HEALTHCARE ASSOCIATION PIMA COMMUNITY COLLEGE RESEARCH CORPORATION TECHNOLOGIES SCOTTSDALE HEALTHCARE BLUE CROSS BLUE SHIELD OF ARIZONA GOVERNOR’S COUNCIL ON INNOVATION AND TECHNOLOGY ALLIANCE BANK NATIONAL ASSOCIATION OF INDUSTRIAL AND OFFICE PROPERTIES ORTHOLOGIC CORP. ST. LUKE’S HEALTH INITIATIVES UA BIO5 ARIZONA COMMISSION ON MEDICAL EDUCATION AND RESEARCH ARIZONA TECHNOLOGY ENTERPRISES GREATER TUCSON ECONOMIC COUNCIL GREENBERG TRAURIG, LLP ARIZONA DISEASE CONTROL RESEARCH COMMISSION TRANSLATIONAL GENOMICS RESEARCH INSTITUTE PHOENIX UNION HIGH SCHOOL DISTRICT W.L. GORE & ASSOCIATES COMMERCE AND ECONOMIC DEVELOPMENT COMMISSION BARROW NEUROLOGICAL INSTITUTE LEWIS & ROCA, LLP UNIVERSITY OF ARIZONA CORONADO VENTURE MANAGEMENT CITY OF GLENDALE ECONOMIC DEVELOPMENT DEPT. CITY OF MESA ECONOMIC DEVELOPMENT DEPT. GREATER PHOENIX ECONOMIC COUNCIL VALLEY VENTURES, LLC SONORA QUEST LABORATORIES NATIONAL INSTITUTE OF DIABETES AND DIGESTIVE AND KIDNEY DISEASES MEDTRONIC L. ROY PAPP & ASSOCIATES CITY OF SCOTTSDALE AND MAYOR’S OFFICE VERITAS HOLDINGS ARIZONA SENATE CARL T. HAYDEN VETERANS AFFAIRS MEDICAL CENTER AEA ARIZONA ARIZONA PARTNERSHIP FOR HIGHER EDUCATION CITY OF AVONDALE ECONOMIC DEVELOPMENT DEPT. AMERICA WEST AIRLINES ARIZONA TECHNOLOGY COUNCIL MARICOPA COMMUNITY COLLEGES GREATER FLAGSTAFF ECONOMIC COUNCIL ARIZONA COMMUNITY FOUNDATION FLAGSTAFF CHAMBER OF COMMERCE FLAGSTAFF REGIONAL MEDICAL CENTER SUNCOR DEVELOPMENT COMPANY THE VIRGINIA G. PIPER CHARITABLE TRUST PINNACLE WEST CAPITAL CORP. ARIZONA HOUSE OF REPRESENTATIVES ARIZONA PUBLIC SERVICE CITY OF BUCKEYE ECONOMIC DEVELOPMENT DEPT. GARY L. BOWEN AND ASSOCIATES GREATER PHOENIX CHAMBER OF COMMERCE WASATCH VENTURE CAPITAL ARIZONA BIOMEDICAL COLLABORATIVE CITY OF FLAGSTAFF AND MAYOR’S OFFICE PRICEWATERHOUSECOOPERS BANNER GOOD SAMARITAN MEDICAL CENTER ARIZONA BUSINESS ACCELERATOR BIODESIGN INSTITUTE AT ASU CITY OF SURPRISE ECONOMIC DEVELOPMENT DEPT. OFFICE OF THE GOVERNOR THE BUSINESS JOURNAL SOUTHERN ARIZONA TECHNOLOGY COUNCIL STONER-ROLAND, LLC UA SCIENCE AND TECHNOLOGY PARK PRESCOTT VALLEY ECONOMIC DEVELOPMENT FOUNDATION ASU TECHNOPOLIS WESTERN MARICOPA COALITION VALLEY VENTURES II, LP SUN HEALTH RESEARCH INSTITUTE SNELL & WILMER, LLP IMARX THERAPEUTICS CITY OF TEMPE AND MAYOR’S OFFICE GREATER YUMA ECONOMIC DEVELOPMENT CORPORATION CITY OF PRESCOTT ECONOMIC DEVELOPMENT OFFICE ARIZONA CENTER FOR INNOVATION COX COMMUNICATIONS AVENTIS BIOINDUSTRY ORGANIZATION OF SOUTHERN ARIZONA THE KEMPER AND ETHEL MARLEY FOUNDATION SALT RIVER PIMA-MARICOPA INDIAN COMMUNITY WELLS FARGO ARIZONA DOWNTOWN PHOENIX PARTNERSHIP MARICOPA INTEGRATED HEALTH SYSTEMS NORTHERN ARIZONA TECHNOLOGY AND BUSINESS INCUBATOR COMERICA CREATIVE HEALTHCARE SOLUTIONS CITY OF CHANDLER ECONOMIC DEVELOPMENT DEPT. THE PLAZA COMPANIES CAPITOL BANCORP ARIZONA BOARD OF REGENTS RIBOMED CITY OF PHOENIX AND MAYOR’S OFFICE BHHS LEGACY FOUNDATION LEE & ASSOCIATES ARIZONA MEDICAL ASSOCIATION CB RICHARD ELLIS CITY OF TUCSON AND MAYOR’S OFFICE ST. JOSEPH’S HOSPITAL AND MEDICAL CENTER DEVRY BANNER HEALTH SYSTEM ARRIS VENTURES ASU RESEARCH PARK SOLSTICE CAPITAL MARICOPA COUNTY MARTINEZ AND CURTIS, PC MAYO CLINIC SCOTTSDALE SALT RIVER DEVCO THE FLINN FOUNDATION BANK ONE YAVAPAI COLLEGE additional information on arizona’s bioscience industry and the flinn foundation can be found at www.flinn.org.
Yearly Highlights
February: Arizona Board of Regents approves creation of the Tucson-based Critical Path to Accelerate Therapies Institute (later known as the Critical Path Institute or C-Path), to make drug development safer, faster, and cheaper.
• March: The “Meds and Eds” report is published, outlining a strategy for Arizona to ramp up its bioscience and educational efforts, in part by building the UA-Phoenix medical school.
• March 22: TGen headquarters open at the downtown Phoenix Biomedical Campus.
• May 15: Gov. Janet Napolitano signs a bill enabling “angel” investors to secure tax credits of 30 percent for investment in tech firms and 35 percent for biotech and rural companies.
• Spring: Arizona Board of Regents approves the creation of the Strategic Alliance for Bioscience Research and Education at NAU, a community-faculty research consortium.
• June: BIO5 and Phoenix-based World Wide Wheat L.L.C. partner to develop new grain varieties that will help reduce obesity, diabetes, heart disease, cholesterol levels, and cancer.
• June 30: Mayo Clinic Collaborative Research Building opens on Mayo’s Scottsdale campus, housing researchers from Mayo and TGen’s Cancer Drug Development Laboratory and TGen Drug Development.
• Aug. 12: Arizona Disease Control Research Commission becomes the Arizona Biomedical Research Commission.
• August: Together with other partners of an international consortium, researchers at the UA’s plant sciences department and BIO5 publish the finished genetic sequence of the rice plant.
• September: InNexus, a Canadian drug-development firm, announces plans to move its headquarters and research laboratories to Scottsdale, Arizona.
• Sept. 25: Vicki Chandler, director of BIO5 Institute at UA, is the first Arizonan to receive the prestigious, $4 million National Institutes of Health Director’s Pioneer Award.
• Sept. 26: Mayo Clinic opens a heart-transplantation program on its Scottsdale campus, becoming Maricopa County’s first hospital approved for performing heart transplants.
Roadmap Progress Report Brochure, December 2005. (Download PDF)
2005 PROGRESS ON ARIZONA’S BIOSCIENCE ROADMAP Moving Forward A P U B L I C A T I O N O F T H E F L I N N F O U N D A T I O N Mileposts Ahead hree years into a 10-year plan to bring Arizona to national competitiveness in the biosciences, the payoff of initial investments is beginning to show. Federal grants are accelerating. Grand opening ceremonies continue statewide. The tech sector scores a major victory in the Legislature. Venture capital is getting in gear. Major bioscience and tech firms are setting up shop in Arizona. Arizona’s Bioscience Roadmap T The year 2005 also marked the expansion of Arizona’s Bioscience Roadmap. The Steering Committee grew to more than 60 statewide leaders representing academia, business, and policy. The number of committees of statewide experts increased to 16, covering scientific disciplines, capital formation, communications, and workforce and education. What’s key in 2006? I Arizona’s long-term plan to bring its bioscience sector to national competitiveness Driven by an extensive collaboration among statewide scientists, business and policy leaders Research and facilitation provided by Battelle Commissioned and coordinated by the Flinn Foundation Translational research component co-sponsored by Arizona Biomedical Research Commission Details available at www.flinn.org I I I I Translational Research: Arizona has the right ingredients to be a national pacesetter in this important field that aims to get discoveries from lab to patient more quickly and effectively. A plan for this new component of the Roadmap will be unveiled. I Capital Formation: Arizona must generate additional revenue streams, both private and public, to recruit and retain top scientists. Boosting venture capital and especially early-stage seed funding is a must. A research and development tax credit may be reintroduced in the Legislature. Medical School: Progress from 2005 in expanding the University of Arizona College of Medicine Phoenix campus in partnership with Arizona State University must continue and accelerate. The medical school is vital to addressing Arizona’s severe physician shortage and providing an essential asset to the state’s research infrastructure. Road Test he latest data is starting to reflect initial Roadmap implementation efforts begun in 2003. How is Arizona performing on key measures? T Major Arizona Achievements I NIH Grants: Up 30 percent between 2001-04. Arizona has matched the annual growth rate of the top-10 states, a Roadmap goal set for 2007. The state has achieved 75 percent of its 2007 goal of reaching $214 million. 2000 Arizona voters pass Proposition 301, providing $1 billion over 20 years for science and technology at the state’s universities. 2002 TGen formed; International Genomics Consortium moves to Arizona. Arizona’s Bioscience Roadmap launched. 2003 Legislation passed to allocate $440 million for construction of university research facilities. 2004 ASU and UA agree to partner on an expansion of the UA medical school in Phoenix. Voters approve $100 million for bioscience and healthcare training and facilities at Maricopa Community Colleges. 2005 C-Path debuts in Tucson. Legislation passed to provide tax credits for angel investors. I Jobs and Firms: Up 11.8 and 6.6 percent, respectively, during 2000-04. Hospitals and labs – one of five subsectors comprising the biosciences – continues to drive employment, while research and testing makes encouraging gains, and medical devices anchors the state’s industry. Wages: Up 27.6 percent between 2000-04. Bioscience workers in Arizona earn an annual salary of $43,359 compared to $34,043 for all industries. I I I Venture Capital: Arizona recorded its best year ever in 2004 in biotech and pharmaceutical VC, generating nearly $20 million. The pace is continuing in 2005. I Entrepreneurialism: Comparing 2002 to 2004, university start-up firms in the biosciences increased from 2 to 11; patents issued grew from 13 to 19; and licenses and options granted increased from 20 to 25. I I A Statewide “Bio-Tapestry” many diverse organizations are fueling collaborative efforts to craft arizona’s future in bioscience. associations corporate education education government, tribes government, hospitals, research institutes hospitals, philanthropy ARIZONA BIOINDUSTRY ASSOCIATION SALT RIVER PROJECT NORTHERN ARIZONA UNIVERSITY INTEL INTEGRATED BIOMOLECULE CORPORATION INTERNATIONAL GENOMICS CONSORTIUM MOTOROLA ARIZONA DEPARTMENT OF COMMERCE HIGH THROUGHPUT GENOMICS ARIZONA STATE UNIVERSITY DMB ASSOCIATES HERBERGER ENTERPRISES ARIZONA HOSPITAL AND HEALTHCARE ASSOCIATION PIMA COMMUNITY COLLEGE SCOTTSDALE HEALTHCARE BLUE CROSS BLUE SHIELD OF ARIZONA RESEARCH CORPORATION TECHNOLOGIES ARIZONA SUPREME COURT BARROW NEUROLOGICAL INSTITUTE AT ST. JOSEPH’S HOSPITAL AND MEDICAL CENTER GOVERNOR’S COUNCIL ON INNOVATION AND TECHNOLOGY ARRIS VENTURES NAIOP MOLECULAR PROFILING INSTITUTE MESA PUBLIC SCHOOLS ORTHOLOGIC CORP. ST. LUKE’S HEALTH INITIATIVES UA BIO5 ARIZONA COMMISSION ON MEDICAL EDUCATION AND RESEARCH ARIZONA TECHNOLOGY ENTERPRISES TREO GREENBERG TRAURIG, LLP ARIZONA BIOMEDICAL RESEARCH COMMISSION CENTER FOR THE FUTURE OF ARIZONA TGEN SOUTHERN ARIZONA LEADERSHIP COUNCIL PHOENIX UNION HIGH SCHOOL DISTRICT W.L. GORE & ASSOCIATES COMMERCE AND ECONOMIC DEVELOPMENT COMMISSION SOUTHERN ARIZONA VA HEALTHCARE SYSTEM ENSYNCH UNIVERSITY OF ARIZONA CORONADO VENTURE MANAGEMENT CITY OF GLENDALE GREATER PHOENIX LEADERSHIP CITY OF MESA GREATER PHOENIX ECONOMIC COUNCIL VALLEY VENTURES, LLC GILA RIVER INDIAN COMMUNITY SONORA QUEST LABS PAYSON BIOTEAM CARL T. HAYDEN VA MEDICAL CENTER CITY OF AVONDALE COPPERSMITH, GORDON, SCHERMER, OWENS & NELSON, PLC CORPCOM STRATEGIES MAYO CLINIC L. ROY PAPP & ASSOCIATES CITY OF SCOTTSDALE AND MAYOR’S OFFICE VERITAS HOLDINGS ARIZONA SENATE ARIZONA PARTNERSHIP FOR HIGHER EDUCATION MARIPOSA COMMUNITY HEALTH CENTER SANOFI-AVENTIS ARIZONA TECHNOLOGY COUNCIL MARICOPA COMMUNITY COLLEGES GREATER FLAGSTAFF ECONOMIC COUNCIL ARIZONA COMMUNITY FOUNDATION FLAGSTAFF REGIONAL MEDICAL CENTER BANK ONE FLAGSTAFF CHAMBER OF COMMERCE TUCSON ELECTRIC POWER THE VIRGINIA G. PIPER CHARITABLE TRUST PINNACLE WEST CAPITAL CORP. ARIZONA HOUSE OF REPRESENTATIVES ARIZONA PUBLIC SERVICE CITY OF BUCKEYE PHOENIX CHILDREN’S HOSPITAL GARY L. BOWEN AND ASSOCIATES GREATER PHOENIX CHAMBER OF COMMERCE WASATCH VENTURE CAPITAL ARIZONA BIOMEDICAL COLLABORATIVE CITY OF FLAGSTAFF AND MAYOR’S OFFICE PRICEWATERHOUSECOOPERS BANNER GOOD SAMARITAN MEDICAL CENTER ARIZONA BUSINESS ACCELERATOR CITY OF SURPRISE ARIZONA ANGELS ARIZONA DEPARTMENT OF HEALTH SERVICES OFFICE OF THE GOVERNOR THE BUSINESS JOURNAL SOUTHERN ARIZONA TECHNOLOGY COUNCIL STONER-ROLAND, LLC UA SCIENCE AND TECHNOLOGY PARK PRESCOTT VALLEY ECONOMIC DEVELOPMENT FOUNDATION ASU TECHNOPOLIS WESTMARC TMC HEALTHCARE VALLEY VENTURES II, LP SUN HEALTH RESEARCH INSTITUTE SNELL & WILMER, LLP IMARX THERAPEUTICS CITY OF TEMPE AND MAYOR’S OFFICE GREATER YUMA ECONOMIC DEVELOPMENT CORPORATION CITY OF PRESCOTT ARIZONA CENTER FOR INNOVATION SOLSTICE CAPITAL OFFICE OF THE ATTORNEY GENERAL C-PATH BIOINDUSTRY ORGANIZATION OF SOUTHERN ARIZONA THE KEMPER AND ETHEL MARLEY FOUNDATION SALT RIVER PIMA-MARICOPA INDIAN COMMUNITY WELLS FARGO ARIZONA DOWNTOWN PHOENIX PARTNERSHIP MARICOPA INTEGRATED HEALTH SYSTEMS COMERICA NORTHERN ARIZONA TECHNOLOGY AND BUSINESS INCUBATOR CREATIVE HEALTHCARE SOLUTIONS CITY OF CHANDLER CB RICHARD ELLIS NAU SABRE THE PLAZA COMPANIES CAPITOL BANCORP ARIZONA BOARD OF REGENTS LEE & ASSOCIATES CITY OF PHOENIX AND MAYOR’S OFFICE BHHS LEGACY FOUNDATION MEDTRONIC ARIZONA MEDICAL ASSOCIATION SUNCOR DEVELOPMENT BANNER HEALTH SYSTEM BIODESIGN INSTITUTE AT ASU AEA ARIZONA LEWIS & ROCA, LLP DEVRY NIDDKD CITY OF TUCSON AND MAYOR’S OFFICE CATHOLIC HEALTHCARE WEST MICROSOFT ARIZONA TOWN HALL COX COMMUNICATIONS ASU RESEARCH PARK FLAGSTAFF 40 MARTINEZ AND CURTIS, PC FLINN FOUNDATION RIBOMED SALT RIVER DEVCO YAVAPAI COLLEGE JOBPATH MARICOPA COUNTY additional information on arizona’s bioscience industry and the flinn foundation can be found at www.flinn.org. STRATEGY 1 2005 PROGRESS Build Research Infrastructure C-Path launched: A one-of-a-kind institute officially opens its doors in Tucson with the promise of reshaping the way prescription drugs and medical devices get from concept to market. The Critical Path Institute (C-Path) – an independent, nonprofit organization founded by UA, the U.S. Food and Drug Administration, and SRI International – aims to improve the drug-development system to produce therapeutics using methods that are faster, safer, and smarter. Medical school advances: A commission headed by Gov. Janet Napolitano plans curriculum, facilities, and other elements of the Phoenix-based UA medical school in partnership with ASU. The Legislature authorizes $7 million for startup expenses after a lengthy political battle, and the City of Phoenix approves a $25 million loan from the federal New Market Tax Credit program. Renovation begins on three historic buildings at the Phoenix Biomedical Campus to house the medical school. NAU unveils SABRE: The Arizona Board of Regents approves a new bioscience institute at Northern Arizona University focusing on translational research, the Strategic Alliance for Bioscience Research and Education (SABRE). Major grants landed: Arizona’s funding from the National Institutes of Health and other key sources continues to grow. Among the largest grants are $14.8 million to the Biodesign Institute at ASU to develop a pediatric pneumonia vaccine; $21.6 million for UA’s Arizona Cancer Center for colon cancer studies with Mayo Clinic, TGen, and others; $15 million for TGen on pancreatic cancer; and $8.5 million for NAU and TGen to study two deadly diseases. Research Commission changes focus: The Arizona Biomedical Research Commission, a state agency charged with funding Arizona researchers and clinicians, realigns its strategies to support collaborative projects consistent with Arizona’s Bioscience Roadmap. TGen labs open: A host of TGen research facilities debuts, including its headquarters in downtown Phoenix; a new Mayo Clinic Collaborative Research Building that devotes one floor to TGen operations, including drug-development subsidiary TD2; a new clinical lab with Scottsdale Healthcare; and a pediatric neurogenetics center in partnership with St. Joseph’s Hospital and Medical Center. STRATEGY 2 2005 PROGRESS Build Critical Mass of Firms Major companies choose Arizona: InNexus Biotechnology, a Canadian drug development firm, selects Scottsdale to base its U.S. headquarters and potentially a manufacturing plant that would employ 150. Covance, a leading global drug-developer, purchases acreage in Chandler with the intent of building a testing facility that would employ 400 or more. Local firms grow: In Flagstaff, W.L. Gore & Associates, a medical-device manufacturer and one of Arizona’s largest bioscience companies, announces plans to build a new 100,000 square-foot building and add 100 jobs a year for several years. Aventis Pharmaceuticals, an affiliate of Sanofi-Aventis, a France-based firm with operations in Tucson, opens a regional office in Scottsdale. UA plans bioscience park: The University of Arizona is concepting a new bioscience park in South Tucson for start-up and emerging companies. The 350-acre campus is expected to feature lab and office space, as well as commercial and residential developments. Tech parks expanding: The UA Science and Technology Park introduces the Center for Technology Commercialization, a program to house and assist young biotech and technology firms. ASU considers a second research park, expecting its current facility to be at capacity within two years. TGen spinout gets funding: Molecular Profiling Institute, a firm created by TGen and the International Genomics Consortium to commercialize TGen discoveries, receives $7.5 million, one of the largest investments in an Arizona start-up in 2005. STRATEGY 3 2005 PROGRESS Enhance Business Environment Angel tax-credit bill passes: The technology community scores a major victory in the Legislature with the passage of a bill to stimulate investment in early-stage technology firms. The legislation enables “angel” investors to secure tax credits of 30 percent for investment in tech firms and 35 percent for biotech and rural companies. Bio venture capital on rise: Though still in need of improvement, growing venture-capital activity among bioscience-related firms such as AmpliMed Corp., High Throughput Genomics, and Sensys Medical Inc. helps Arizona to a prosperous year in 2005. Arizona gains at bio expos: The Arizona Bio Expo 2005 attracts about 250 attendees, its largest number to date. The event, organized by the Arizona BioIndustry Association, features an inaugural biotech awards dinner. A delegation of about 50 individuals and 27 exhibiting organizations represents Arizona at the BIO convention in Philadelphia, the world’s largest biotechnology trade show. Arizona BIO chapter to staff up: The Arizona BioIndustry Association adds professional staff for the first time via a grant from the Flinn Foundation. The funding is intended to help the growing trade association to build its infrastructure and assume a greater leadership role in the development of Arizona’s bioscience sector. FAST grants leverage federal dollars: Medipacs, a Tucson biotech firm, receives a $100,000 Small Business Innovative Research Phase I grant. This stemmed from an earlier $5,000 Arizona FAST grant intended to spur SBIR and related funding. The FAST program has led to $3.1 million in SBIR grants for Arizona companies since its inception in 2003. STRATEGY 4 2005 PROGRESS Prepare Workforce, Educate Citizens Grant bolsters workforce in southern Arizona: Pima Community College and employers in Pima County benefit from a federal grant of more than $275,000 awarded to JobPath Inc. The award will help build local bioscience industry through a summer biotechnology education institute, plus job-training and internship programs. Arizona Town Hall examines biosciences: More than 150 civic leaders spend four days at the Grand Canyon discussing Arizona's plans, progress, and opportunities to advance in the biosciences. Town Hall officials plan to share and promote a final plan with audiences throughout Arizona. Phoenix hosts Intel Science Fair: The world’s premier science event for high school students, the Intel International Science and Engineering Fair, is held in downtown Phoenix. The six-day competition involves more than 1,400 student finalists from 40 countries and thousands of additional students, teachers, judges, and others. Bio curricula added: Pima Community College announces a new program to train medical laboratory technicians, helping to fill a void following the closure of a similar program at UA. New biotechnology courses are introduced and planned by Maricopa Community Colleges. ASU launches its new master’s program in biotechnology and genomics, the nation’s first. Schools learn from TGen: Arizona high school administrators attend a symposium sponsored by Salt River Project to learn how schools can connect with TGen and the larger bioscience industry. A similar event will follow in 2006 for teachers. Bio-101 website launched: A new website, Arizona BioBasics, provides fundamental information about Arizona biosciences in plain language. The site, accessible at www.arizonabiobasics.com, is geared to lay audiences with basic questions about the state’s efforts and resources.
Yearly Highlights
Jan. 15: Virginia G. Piper Charitable Trust commits $50 million to advance personalized medicine in Maricopa County.
• Spring: 501(c)(3) articles of incorporation filed for Science Foundation Arizona (SFAz). William Harris is named president and CEO of SFAz.
• March 16: C-Path announces an unprecedented collaborative agreement with eight major pharmaceutical companies--17 have now signed on--to share and cross-validate drug-testing methods.
• March 21: GE Healthcare signs an agreement with St. Joseph’s Hospital and Medical Center to accelerate joint research and move discoveries more quickly into the clinical setting.
• June 21: The Legislature approves $35 million in funding for the 21st Century Fund, a public-private partnership to invest in Arizona medical, scientific, and engineering research programs. The funds flow to Science Foundation Arizona.
• June 2006: Arizona launches the Biozona brand to promote the state’s bioscience industry.
• July 1: Arizona’s “angel” tax credit goes into effect, allowing investors to secure tax credits for investment in early-stage technology firms and biotech and rural companies.
• July 10: Barrow Neurological Institute of St. Joseph’s Hospital and Medical Center opens a state-of-the-art, 430,000-square-foot neuroscience tower to patients.
• Sept. 14: IGC and TGen are awarded a $6.6 million grant for the creation of a national tissue bank of cancer specimens for The Cancer Genome Atlas Project.
• October: Arizona Alzheimer’s Consortium receives $7.5 million grant from the National Institute on Aging for collaborative research among AAC’s eight institutions.
• Oct. 10: UA College of Medicine-Phoenix in partnership with ASU officially opens as part of the larger downtown Phoenix Biomedical Campus.
• Oct. 26: Banner Alzheimer’s Institute facilities officially open in downtown Phoenix, near Banner Good Samaritan Medical Center.
• Nov. 14: Battelle releases “Growing Southern Arizona’s Bioscience Sector: A Regional Roadmap,” a report on a comprehensive study and action plan for the biosciences sector in southern Arizona.
• Dec. 1: UA’s BIO5 Institute dedicates the Thomas W. Keating Bioresearch building and the UA College of Medicine Research building.
Roadmap Progress Report Brochure, December 2006. (Download PDF)
2006 PROGRESS ON ARIZONA’S BIOSCIENCE ROADMAP Accelerating the Pace A P U B L I C A T I O N O F T H E F L I N N F O U N D A T I O N Picking up Speed T he fourth year in a decade-long push to bring Arizona to national stature in the biosciences was marked by continued commitment of leadership and collaborative success on the research front. Regional business coalitions assumed strong roles in both leadership and funding. Grants from the private sector opened new doors. The Legislature created a sizeable research fund. Federal grants increased markedly. Institutions and facilities continued to debut. Collaborative efforts began blazing a new path in translational research. arizona’s bioscience roadmap Arizona’s Bioscience Roadmap expanded in 2006, reaching 17 committees of nearly 300 statewide experts in science, business, communications, workforce, and education. Regional roadmaps were launched in Tucson and Flagstaff, keying on local strengths and needs. Statewide efforts formalized in the areas of agricultural biotech, asthma, diabetes, and infectious disease. Key priorities in 2007. . . Translational research: A comprehensive model has been launched with leadership from the Arizona Biomedical Research Commission to move Arizona to the forefront in getting discoveries from the lab to the patient quickly and efficiently. Pilot projects and events are planned throughout the year to galvanize statewide researchers, clinicians, institutional review board panels, attorneys, policymakers, and others key to this increasingly critical area. > Arizona’s long-term plan to bring its bioscience sector to national competitiveness > Driven by an extensive collaboration among statewide leaders in science, business, and policy > Research and facilitation provided by Battelle > Commissioned and coordinated by the Flinn Foundation > Translational research component co-sponsored by Arizona Biomedical Research Commission > Details available at www.flinn.org Wet-lab space: Several regional efforts are gaining momentum to address the state’s dearth of commercial wet-lab space. Progress must continue to provide the sophisticated research space needed to support emerging local companies and attract established firms from other states. Capital formation: Always a priority, coordinated efforts to attract private capital are needed to provide early-stage companies with leverage to grow. Public-private partnerships must continue to expand to successfully recruit and retain top talent. Road Test T he latest data reflect initial Roadmap implementation efforts begun in 2003. How is Arizona performing on fundamental measures? major arizona achievements 2000 > Arizona voters pass Proposition 301, in part providing $1 billion over 20 years for science and technology at the state’s universities. 2002 R&D expenditures: Bioscience-related academic research and development expenditures at Arizona’s universities increased 23% between 2002-04, besting the 20% average of the top-10 states. NIH grants: Research-grant funding increased 30% between 2002-05, compared to 21% for the top-10 states. By surpassing the leading states in growth rate, Arizona accomplished a 2007 goal two years early. In 2005, Arizona’s total NIH funding grew by 10%, compared to 3% for the nation. Jobs and firms: Up 16% and 8%, respectively, during 2001-05. In non-hospital biosciences, employment grew nearly 17% compared to the national average of less than 4%. Wages: Up 13% (inflation adjusted) between 2001-05, compared to a 3% real wage gain for the overall state private sector. Bioscience workers in Arizona earn an annual salary of $45,182, on average, compared to $37,709 for all industries. Venture capital: Arizona exceeded the Roadmap goal of $100 million for 2003-05, though the 2006 pace slowed considerably from 2005. Entrepreneurialism: In 2002, Arizona’s universities spun off only two bioscience startup companies. Since then, there have been 33. Results have improved similarly in patents issued, licenses and options executed, and invention disclosures. > TGen forms; International Genomics Consortium moves to Arizona. > Arizona’s Bioscience Roadmap launched. 2003 > Legislation authorizes $440 million for construction of university research facilities. 2004 > ASU and UA agree to partner on expansion of the UA medical school in Phoenix. > Voters approve $100 million for bioscience and healthcare training and facilities at Maricopa Community Colleges. 2005 > C-Path debuts in Tucson. > Legislation passes to provide tax credits for angel investors. 2006 > Legislature creates Arizona 21st Century Fund. > Science Foundation Arizona established. > $50 million committed for Piper Chairs in personalized medicine. A Statewide“Bio-Tapestry” nearly 300 statewide experts from the following organizations serve on 17 committees that are advancing arizona’s bioscience roadmap. nearly 300 statewide experts from the following organizations serve on 17 committees that are fueling arizona’s bioscience roadmap. associations corporate education government, tribes hospitals, research institutes foundations MAYO CLINIC BLUE CROSS BLUE SHIELD OF ARIZONA CARL T. HAYDEN VA MEDICAL CENTER OFFICE OF THE ATTORNEY GENERAL LEWIS & ROCA, LLP UNISOURCE ENERGY CORPORATION RIBOMED BIOTECHNOLOGIES ARIZONA BOARD OF REGENTS ARIZONA DEPARTMENT OF AGRICULTURE SCIENCE FOUNDATION ARIZONA BIOINDUSTRY ORGANIZATION OF SOUTHERN ARIZONA CITY OF FLAGSTAFF AND MAYOR’S OFFICE STARDUST FOUNDATION ASU MORRISON INSTITUTE FOR PUBLIC POLICY CB RICHARD ELLIS GREATER PHOENIX CHAMBER OF COMMERCE CITY OF PHOENIX AND MAYOR’S OFFICE PINNACLE WEST CAPITAL CORP. ARIZONA BIOINDUSTRY ASSOCIATION TRANSLATIONAL GENOMICS RESEARCH INSTITUTE SOUTHERN ARIZONA LEADERSHIP COUNCIL MEDTRONIC MOTOROLA PHOENIX CHILDREN’S HOSPITAL ASU TECHNOPOLIS NAU SABRE PREMIER ONCOLOGY OF ARIZONA FLAGSTAFF CHAMBER OF COMMERCE ARIZONA DEPARTMENT OF COMMERCE ASU CRESMET CORONADO VENTURE MANAGEMENT UA ARIZONA HEALTH SCIENCES CENTER HIGH THROUGHPUT GENOMICS INSTITUTE FOR MENTAL HEALTH RESEARCH CITY OF TEMPE AND MAYOR’S OFFICE GOVERNOR’S COUNCIL ON INNOVATION AND TECHNOLOGY COPPERSMITH, GORDON, SCHERMER, OWENS & NELSON, PLC CITY OF SURPRISE TUCSON REGIONAL ECONOMIC OPPORTUNITIES UA BIO5 BANNER HEALTH SYSTEM CRITICAL PATH INSTITUTE INTEGRATED BIOMOLECULE CORPORATION SNELL & WILMER, LLP ARIZONA HOSPITAL AND HEALTHCARE ASSOCIATION BARROW NEUROLOGICAL INSTITUTE AT ST. JOSEPH’S HOSPITAL AND MEDICAL CENTER MOLECULAR PROFILING INSTITUTE CHALLENGER SPACE CENTER CITY OF SCOTTSDALE AND MAYOR’S OFFICE GREATER PHOENIX LEADERSHIP SUNCOR DEVELOPMENT COMPANY KAET-TV SUN HEALTH RESEARCH INSTITUTE ARIZONA COMMISSION ON MEDICAL EDUCATION AND RESEARCH FLINN FOUNDATION COMMERCE AND ECONOMIC DEVELOPMENT COMMISSION GREATER PHOENIX ECONOMIC COUNCIL INTERNATIONAL GENOMICS CONSORTIUM TUCSON ELECTRIC POWER SALT RIVER PIMA-MARICOPA INDIAN COMMUNITY JENNINGS, STROUSS & SALMON ARIZONA ANGELS VENTURE GROUP ALLIANCE BANK OF ARIZONA THE BUSINESS JOURNAL ARIZONA DEPARTMENT OF HEALTH SERVICES ARIZONA MEDICAL ASSOCIATION BANNER GOOD SAMARITAN MEDICAL CENTER W.L. GORE & ASSOCIATES CATHOLIC HEALTHCARE WEST BIODESIGN INSTITUTE AT ASU CITY OF MARICOPA ARIZONA TOWN HALL THE PLAZA COMPANIES MESA UNIFIED SCHOOL DISTRICT SALT RIVER PROJECT CHASE BANK ARIZONA STATE UNIVERSITY CENTER FOR THE FUTURE OF ARIZONA GOVERNOR’S COUNCIL ON WORKFORCE POLICY SOUTHERN ARIZONA TECH COUNCIL PIMA COMMUNITY COLLEGE ENSYNCH ARIZONA BIOMEDICAL RESEARCH COMMISSION SOUTHERN ARIZONA VA HEALTHCARE SYSTEM CITY OF CHANDLER ARIZONA TECHNOLOGY ENTERPRISES GOVERNOR’S P-20 COUNCIL AEA ARIZONA GREENBERG TRAURIG, LLP PHOENIX UNION HIGH SCHOOL DISTRICT ARIZONA TECHNOLOGY COUNCIL AMERICAN INDIAN MEDICAL CENTER SANOFI-AVENTIS WORLD WIDE WHEAT ASU RESEARCH PARK GREATER FLAGSTAFF ECONOMIC COUNCIL DOWNTOWN PHOENIX PARTNERSHIP TMC HEALTHCARE NAIOP GILA RIVER INDIAN COMMUNITY SALT RIVER DEVCO UA SCIENCE AND TECHNOLOGY PARK CITY OF TUCSON COCONINO COUNTY SCHOOLS THE VIRGINIA G. PIPER CHARITABLE TRUST NORTHERN ARIZONA UNIVERSITY SOLSTICE CAPITAL JOBPATH MARICOPA INTEGRATED HEALTH SYSTEM OFFICE OF THE GOVERNOR WESTMARC AMERICAN CANCER SOCIETY BIO CAIR SOLUTIONS UA COLLEGE OF MEDICINE IMARX THERAPEUTICS SCOTTSDALE HEALTHCARE FLAGSTAFF 40 ARIZONA SCIENCE CENTER BRODEUR MARIPOSA COMMUNITY HEALTH CENTER ARIZONA PUBLIC SERVICE PAYSON BIOTEAM ARIZONA SUPREME COURT MARICOPA COMMUNITY COLLEGES ARIZONA SENATE UNIVERSITY OF ARIZONA additional information on arizona biosciences can be found at www.flinn.org, www.arizonabiobasics.com, and www.biozona.org. STRATEGY 1 Build Research Infrastructure 2006 progress > Legislature creates research fund: Following through on a proposal by Gov. Janet Napolitano, the Legislature establishes the Arizona 21st Century Fund and appropriates $35 million to support medical, scientific, and engineering research programs. > Science Foundation Arizona established: Statewide business leadership groups – Greater Phoenix Leadership, Southern Arizona Leadership Council, and Flagstaff 40 – collaborate to create and fund a new nonprofit organization to build and strengthen medical, scientific, and engineering research programs in Arizona. Heralded science-business leader William C. Harris leaves his post as director general of Science Foundation Ireland to lead the new organization. > Piper Trust commits $50 million: The Virginia G. Piper Charitable Trust pledges the largest single gift in state history to advance biomedical research by committing $50 million to recruit to Arizona 10 world leaders in personalized medicine. > Medical school officially opens: More than 800 celebrate the opening of the University of Arizona College of Medicine-Phoenix in collaboration with Arizona State University. The unique collaborative medical school will help to address Arizona’s physician shortage and provide an essential asset in the state’s biomedical research infrastructure. > IGC to lead key cancer project: The International Genomics Consortium, in partnership with TGen, is chosen from 370 applicants to manage tissue samples for the Cancer Genome Atlas project, the next phase of the Human Genome Project. A $6.6-million grant from the National Institutes of Health will support IGC’s efforts in this international undertaking to map the genomes of most forms of cancer. > Translational grants secured: A network of 20 Arizona organizations involved in biomedical research receives an important Clinical and Translational Science Award planning grant from NIH. While small in terms of dollars ($150,000), the award positions the state favorably to compete for a multimilliondollar CTSA grant down the road. In a separate application, Mayo Clinic’s local operations share in a $72 million CTSA award with Mayo campuses in Minnesota and Florida. STRATEGY 2 Build Critical Mass of Firms 2006 progress > Covance buys new site in Chandler: Global drug development services firm Covance purchases 50 acres of industrially zoned land in Chandler for a 600,000 square-foot research facility designed to eventually support up to 2,000 high-wage jobs. > Wet-lab plans advancing: Efforts to address Arizona’s shortage of wet-lab space make progress. UA furthers plans to build the Arizona Bioscience Park in Tucson. Bioscience incubator space is studied in Surprise and Chandler. Flagstaff includes an incubator in its plans to build a science park. Grand Canyon University announces plans for a major wet-lab facility, while a San Diego-based developer pursues a multi-floor building featuring wet-lab space in Tempe. > Firms choose Arizona: Several bioscience-related companies announce plans to relocate to or start operations in Arizona. Included in the Phoenix area are Aurigin Technology, Dedicated Phase I, Insys Therapeutics, NutraCea Corp, and Qualia Clinical Services; in Tucson, Genomics USA and Systems Medicine; and in Flagstaff, Neural Intervention Technologies. Singapore-based Aurigin becomes the first foreign company to commit to space at SkySong, the ASU Scottsdale Innovation Center. In addition, Humana, a Fortune-500 company, prepares for a new mail-order drug facility in Phoenix. > Sanofi-Aventis expands: Sanofi-Aventis, the state’s largest pharmaceutical firm, releases plans to build a new 100,000 square-foot facility near its operations in Oro Valley, tripling its space. > ASU spinout acquired: Molecular Imaging Corp., a 1993 spinout of ASU that manufactures atomicforce microscopes, is purchased by scientific instrument giant Agilent. > GE Healthcare, St. Joe’s partner: GE Healthcare signs an agreement to a six-year research partnership with St. Joseph’s Hospital and Medical Center to develop next-generation MRI equipment. > C-Path off to fast start: The Critical Path Institute reaches an agreement with 15 major pharmaceutical firms to share internal protocols for measuring drug safety, an unprecedented move in the industry. The two-year old nonprofit moves into larger office space in Tucson and opens offices in Phoenix and Washington, D.C. STRATEGY 3 Enhance Business Environment 2006 progress > Biozona brand launches: A statewide network of communications and marketing officials develops and launches “Biozona,” a creative identity for Arizona biosciences. The brand will enable Arizona to more effectively market its strengths to out-of-state audiences and inform Arizonans on the importance of its bioscience ambitions. > Angel tax credit commences: The Small Business Capital Investment Incentive Program goes into effect to boost investment in young companies. Passed by the Legislature in 2005, the program offers tax credits of 30% for investors of early-stage small businesses. Investors in bioscience and rural firms qualify for credits of 35%. > Venture capital slows but grows: Though failing to keep pace with 2005’s banner year, venture capital supporting Arizona bioscience firms in 2006 outpaced year-end totals for both 2004 and 2003. Leading financings include $13 million for ImaRx Therapeutics of Tucson and $5.2 million for Sensys Medical of Chandler. > ASU to host major nano meeting: ASU announces that it will host a major conference in nanotechnology in March 2007. The Nano and Giga Challenges Conference will involve about 500 experts from 50 countries over five days. > Trade shows gain presence: A delegation of 50 represents Arizona at BIO 2006, the world’s largest bioscience convention, in Chicago. Efforts are underway for an expanded effort at BIO 2007 in Boston. In Arizona, the centerpiece events of the state’s two bioscience trade associations draw about 250 apiece – the second-annual Arizona Bioscience Awards Dinner of the Arizona BioIndustry Association in Scottsdale and the Bio Southwest conference of the Bioindusty Organization of Southern Arizona in Tucson. STRATEGY 4 Prepare Workforce, Educate Citizens 2006 progress > Grants advance bio education: Major federal, state, and private grants are awarded to boost bioscience education efforts statewide: • TGen and Northern Arizona University will partner to train high school teachers in biosciences, piloting a new effort in Mesa Public Schools, Chino Valley School District, and other school districts. • ASU Polytechnic, Mesa Community College, and Mesa Public Schools will collaborate on a “2+2+2” model to provide seamless bioscience education from high school to community college to university. • ASU and UA each receive grants from the Howard Hughes Medical Institute to boost undergraduate bioscience training programs. > Science-based schools debut: Three new schools focused on science and math open their doors: Bioscience High School in downtown Phoenix; Copper Ridge Math and Science Academy in Scottsdale; and the Wildcat School in Tucson, affiliated with UA. Bioscience High benefits from a $60,000 grant from Honeywell. > Bio labs expand in Mesa schools: Mesa Public Schools approves nearly $4.5 million to construct and remodel bioscience labs at five public high schools. In addition, the bioscience academy at Mesa High completes its first year offering students interdisciplinary studies with an emphasis on biotechnology. > New academic programs introduced: Numerous curricula and training programs are launched, including a joint law and medicine program offered by ASU and Mayo Clinic; a pharmaceutical technician program by Phoenix College; an ASU master’s program in healthcare innovation; and a multi-disciplinary graduate program in integrative biosciences at NAU. ASU introduces the Department of Biomedical Informatics in collaboration with UA, linked with the UA College of Medicine-Phoenix. UA accelerates the expansion of its colleges of Medicine and Pharmacy into Phoenix. > Bio education inventory underway: A first-ever statewide survey of high school bioscience training programs is launched to gain insights on existing resources and unmet needs.
Yearly Highlights
• January: SFAz awards its first grants, launching a $4 million fellowship program for first-year graduate students in science, engineering, and biomedical research at state universities.
• Feb. 22: W.L. Gore and Associates, Flagstaff's largest private employer, announces expansions of its medical-devices division in Flagstaff and, for the first time, in Phoenix.
• March 27: Tucson City Council votes to waive the city’s ban on “big-box” stores, allowing plans for University of Arizona’s Bioscience Research Park to move forward.
• April 13: Flagstaff celebrates the opening of TGen North, a collaboration between TGen and NAU to operate a new pathogen-genomics and biodefense research facility.
• May 9: Nine institutions unite to launch the Arizona Proteomics Alliance (AZPA), a statewide consortium focused on advancing the study of proteins in the human body.
• June: Drug developer Covance breaks ground on a new facility in Chandler; the 300,000 square-foot laboratory will employ 300-400 people initially, and ultimately up to 2,000.
• June 21: Gov. Janet Napolitano signs state budget that includes $25 million for the Phoenix Biomedical Campus and $100 million over four years for SFAz.
• June 25: Swiss pharmaceutical giant Roche Holding AG initiates bid to acquire Oro Valley-based Ventana Medical Systems Inc.
• July 25: TGen affiliate Systems Medicine Inc. of Tucson is acquired by Seattle biotech firm Cell Therapeutics for $20 million.
• July 30: Cancer Treatment Centers of America selects Goodyear as the site for a 210,000-square-foot cancer hospital, the for-profit company’s first hospital west of the Rocky Mountains.
• Aug. 3: Classes begin for 24 students in the inaugural class of the UA College of Medicine-Phoenix in partnership with ASU.
• August: Biodesign Institute Building B, which opened in 2007, is Arizona’s first building to receive LEED-platinum designation for its environmentally friendly features.
• August: SFAz concludes its first, $33.6 million round of grantmaking with $15.1 million for 12 collaborations between researchers and industry partners who will provide matching funds.
• Sept. 17: Gov. Janet Napolitano is named BIO “Governor of the Year” for her support of the biosciences and leadership as chair of the National Governors Association.
• Sept. 21: Banner Health, Arizona’s largest hospital system, announces plans for a merger with Sun Health Corp., which operates two Valley hospitals and Sun Health Research Institute.
• Sept. 27: NAU opens its Applied Research and Development building in Flagstaff. The building, called the nation’s most environmentally friendly university facility, is shortly awarded LEED-platinum designation.
• Oct. 2: The Stardust Charitable Fund gives $25 million to SFAz, triggering a matching appropriation from the Arizona Legislature that will fund grantmaking through 2008.
• Oct. 15: Bioscience High School opens. The specialty high school focuses on science education, in collaboration with downtown-Phoenix academic and scientific communities.
• Oct. 15: Arizona Biomedical Collaborative facility (joint use by ASU-UA) opens on Phoenix Biomedical Campus.
• Oct. 16: Battelle releases “Growing Northern Arizona’s Bioscience Sector: A Regional Roadmap,” a report on a comprehensive study and action plan for the biosciences sector in northern Arizona.
• Oct. 17: TGen and the Biodesign Institute at ASU join Nobel laureate Lee Hartwell on the Partnership for Personalized Medicine, a $45 million effort to study proteomics and the development of personalized diagnostics.
• October: C-Path announces two grants to fund collaborations toward setting national standards for pharmaceutical research and patient treatment regimens; Congress passes a bill authorizing expanded public/private collaboration toward quicker and safer drug development.
• November: Semafore Pharmaceuticals Inc. and Abraxis Bioscience Inc. expand in Phoenix; pharmaceutical giant sanofi-aventis breaks ground on a $40 million expansion in Oro Valley.
• Dec. 6: Caris Diagnostics purchases Molecular Profiling Institute, the first spinoff of TGen and IGC, for $40 million.
• Dec. 10: NAU receives a highly competitive $3.4 million grant from the National Math and Science Initiative to establish the NAUTeach program, a STEM teacher-preparation program.
Roadmap Progress Report Brochure, December 2007. (Download PDF)
2007 progress on a r i z o n a’s bioscience roadmap Picking Up Speed a p u b l i c a t i o n o f t h e f l i n n f o u n d a t i o n in the fast lane T he year 2007 – the midpoint of the 10-year span of Arizona’s Bioscience Roadmap – was defined by heightened industry activity. Growth accelerated in bioscience jobs and firms, while company expansions and acquisitions made headlines. Federal research grants slowed after four years of remarkable growth, though notable research discoveries continued to emanate from Arizona, often through collaborative projects across institutions. Science Foundation Arizona helped to further Roadmap progress in its first year of funding. Science, technology, engineering, and math (STEM) education attracted attention from decision-makers and funders. And research facilities continued to open statewide, with more planned on the commercial front. In addition to the Roadmap’s extensive network of committees, involving some 300 statewide experts, regional roadmaps made traction in northern and southern Arizona. Local leaders are devising initiatives to capitalize on the biosciences based on the particular strengths and dynamics of their communities. Key Roadmap priorities in 2008… commercialization: While the first five years of the Roadmap focused primarily on strengthening the research infrastructure, attention will increasingly emphasize turning research into technologies, products, jobs, and firms. Research consultant Battelle has identified “signature opportunities” where Arizona has both research strengths and a ready industry base – molecular therapies, vaccines, and diagnostics; advanced medical technologies; and sustainable bio-related technologies. These areas offer opportunities for Arizona to “leapfrog” other states and regions. arizona’s bioscience roadmap > Arizona’s long-term plan to bring its bioscience sector to national competitiveness > Driven by an extensive collaboration among statewide leaders in science, business, and policy by Battelle > Research and facilitation provided > Commissioned and coordinated by the Flinn Foundation > Translational research component > Details available at www.flinn.org co-sponsored by Arizona Biomedical Research Commission capital formation: The lack of venture capital and other types of risk capital remains a fundamental liability. Arizona must build a stronger resident VC industry, attract out-of-state investors, and offer programs to help entrepreneurs secure capital. Road test A review of Roadmap progress in late 2007 revealed the following data on key measures. r&d expenditures: Bioscience-related academic research and development expenditures at Arizona’s universities tapered off slightly in 2006 after increasing every year since 2002. The 2006 total of $379 million represents a 35% gain since 2002, slightly trailing the top-10 states (37.3%) and U.S. average (36.2%). niH grants: Grant funding from the National Institutes of Health declined in 2006, reflecting a national trend due primarily to NIH budget cuts. However, Arizona felt the slowdown more sharply, decreasing 6.9% in 2006 vs. 1.2% for the nation. This followed a banner year in 2005 when Arizona’s growth was 3.5 times higher than that of the nation. Since 2002, the state’s NIH funding has grown by 19.2%, slightly less than the top-10 states (22.9%) and U.S. average (20.6%). Jobs: Arizona bioscience jobs are growing at a significantly faster rate than the nation. Bioscience employment grew 18.5% during 2002-06, adding more than 12,600 jobs for a total of 80,909. In 2006, jobs grew by 4.7%. While the state’s fast-growing hospital subsector dominates its bioscience employment, non-hospital bioscience firms are actually growing more rapidly (20.6% during 2002-06). This compares to a growth rate of 4.3% nationally. Firms: The number of bioscience establishments in Arizona increased 16.7% during 2002-06, rising from 639 to 745 – also a substantially faster rate of growth than the nation. Three of the four subsectors that comprise the non-hospital biosciences showed gains, led by drugs and pharmaceuticals (30.7%) and research, testing, and labs (26.7%). In 2006, the number of establishments increased by 8.3%. Wages: Bioscience workers in Arizona earn an annual salary of $48,674, on average, compared to $39,526 for all private-sector industries. Arizona annual bioscience wages increased 25% during 2002-06. Venture capital: Through three-quarters of 2007, Arizona already has recorded its most successful year since 2002 in attracting bioscience venture capital. At $77 million, the state is more than 75% of the way toward meeting the Roadmap goal of $100 million in 2007. entrepreneurialism: During 2002-06, Arizona’s universities have shown substantial gains in all categories of bioscience intellectual property – invention disclosures, patent applications, patents issued, licenses and options executed, gross license income, and bioscience startup companies. implementation: Of the 19 action items recommended by Battelle in 2002 to achieve over 10 years, progress has been made on 16, including substantial progress on eight. t R a c k i n g t h e p R o g R e s s o f a R i z o n a’s b i o s c i e n c e i n i t i a t i v e bioscience timeline 2000 Prop. 301 passes, providing $1 billion over 20 years for scientific research at state universities 2001 Flinn Foundation commits to 10 years of major funding of Arizona biosciences BIO5 Institute debuts at UA (known then as IBSB) 2002 Bioindustry Organization of Southern Arizona forms in Tucson TGen created following $90 million fundraising effort; IGC locates in Arizona Arizona’s Bioscience Roadmap launched 2003 ASU’s Biodesign Institute established Arizona Biomedical Collaborative created State approves $440 million to build university research facilities State’s bio cluster group reorganizes as Arizona BioIndustry Association 2004 UA, ASU agree to partner on medical school in downtown Phoenix $100 million for bioscience/ healthcare training approved for Maricopa Community Colleges First building of Biodesign Institute opens 2005 Critical Path Institute founded in Tucson TGen headquarters, Mayo Collaborative Research Building open Legislators pass angel tax credit NAU introduces SABRE research consortium 2006 Science Foundation Arizona forms Arizona 21st Century Fund created, funded by $35 million from State Biozona brand debuts Phoenix Bioscience High School opens BIO5 facility and second building of Biodesign Institute open 2007 W. L. Gore announces plans to expand into Phoenix from Flagstaff TGen North opens in Flagstaff Covance breaks ground on Chandler facility Plans advance for bioscience/ tech parks in Tucson, Flagstaff Legislature approves $25 million for Phoenix Biomedical Campus, $100 million for SFAz Classes begin at UA College of Medicine-Phoenix in partnership with ASU Two TGen affiliate companies purchased additional information on arizona biosciences can be found at www.flinn.org, www.arizonabiobasics.com, and www.biozona.org. Strategy 1 2007 pRogRess build ReseaRch infRastRuctuRe nobel laureate selects arizona: TGen and the Biodesign Institute at Arizona State University team with Nobel laureate Lee Hartwell of the Fred Hutchinson Cancer Research Center in Seattle on a $45 million effort to advance personalized medicine. Funded by the Virginia G. Piper Charitable Trust and the Flinn Foundation, the project aims to study the body’s proteins to develop personalized diagnostic tools to improve healthcare outcomes and reduce medical costs. Funds are included to involve additional statewide research organizations. medical school opens, prepares to expand: The University of Arizona College of Medicine-Phoenix in partnership with ASU welcomes its first class of 24 students after earning accreditation in record time. The Legislature includes $25 million in the state budget for components of the Phoenix Biomedical Campus, including funds for the medical school to increase its class size to 48 and to design two major education and research facilities. sFaz receives and awards millions: Science Foundation Arizona (SFAz) concludes its first year of grantmaking by awarding $23 million to Arizona institutions to strengthen scientific, engineering, and medical research programs. The Legislature commits $100 million to SFAz over four years, subject to a private match. The Stardust Charitable Group satisfies the first-year match via a $25 million grant. c-path hits stride: Tucson’s Critical Path Institute (C-Path) achieves several successes to bring about safer and faster drug development, including: 1) Raising to 17 the number of major pharmaceutical firms sharing drug-safety protocols with one another; 2) Serving as a model for a successful bill in Congress to authorize expanded public-private partnerships in drug development; 3) Landing a $2.1 million grant from SFAz to team with Ventana Medical Systems and work with the FDA to develop standards for diagnostic tests designed to guide selection of effective, personalized drug therapies. research facilities debut statewide: Major facilities open for business, including: UA’s BIO5 Institute and a cancer clinic at the University Medical Center in Tucson; TGen North and Northern Arizona University’s Applied Research and Development building in Flagstaff; the Arizona Biomedical Collaborative in downtown Phoenix; and a second research building at Sun Health Research Institute in Sun City. Strategy 2 2007 pRogRess build cRitical mass of fiRms companies choose arizona: Cancer Treatment Centers of America selects Goodyear for its fifth hospital facility, expected to provide 420 jobs. Los Angeles-based Abraxis BioScience opens a Phoenix site employing 85. Semafore Pharmaceuticals of Indianapolis announces plans for a Scottsdale facility to be initially staffed by 20. Caris Diagnostics of Irvine, Texas, opens a pathology lab near the TempePhoenix border. covance breaks ground: Global drug-development services firm Covance breaks ground on a 300,000-square-foot laboratory in Chandler. Between 300 and 400 will be employed at the site. The company also purchases 27 additional acres east of the property. Tgen affiliates purchased: Molecular Profiling Institute, TGen’s first spinoff, is bought for $40 million by Caris Diagnostics. TGen affiliate Systems Medicine, with offices in Scottsdale and Tucson, is purchased for $20 million in stock by Seattle cancer-therapy firm Cell Therapeutics. Local companies expand: W. L. Gore & Associates, a medical-device manufacturer and major Flagstaff employer, expands within Flagstaff and announces plans to build facilities in north Phoenix that could employ up to 800. In Chandler, Agilent Technologies opens a new facility that more than triples the size of its local atomic force microscope operations. In Oro Valley, pharmaceutical giant sanofi-aventis breaks ground on a $40 million research facility that will expand its local staffing capacity to 108 employees. science-park plans advance: UA completes a land swap with KB Homes, paving the way for construction of a 65-acre bioscience park in south Tucson. When completed, the park will house up to 2.4 million square feet of office and lab space. In Flagstaff, the city furthers plans to develop a science and technology park with up to 200,000 square feet of office and lab space. At the site, construction begins on a business incubator, the Northern Arizona Science, Technology, and Clean Energy Center. biomedical plaza planned for downtown phoenix: The City of Phoenix and the Plaza Cos. announce plans for an $80 million, 270,000-square-foot lab and office building next to the Phoenix Biomedical Campus. Designed for biomedical, physician, and research firms, the complex is expected to open in late 2008. Strategy 3 2007 pRogRess enhance business enviRonment Vc funding regains stride: After losing steam in 2006, venture-capital investments in Arizona bioscience firms set a pace to make 2007 the best year since 2002. Major investments include Zounds, a Mesa hearingaids firm ($34 million, three deals); Carefx Corp., a medical-software firm in Scottsdale ($17.8 million); High Throughput Genomics of Tucson ($10 million); and medical-device maker Cayenne Medical of Scottsdale ($9.5 million). ‘biozona’ unveiled on global stage: Arizona’s statewide identity in the biosciences – Biozona – is introduced to national and international audiences for the first time at BIO, the world’s largest biotechnology trade show. Arizona’s booth at the exhibition hall is redesigned around the theme, developed by a statewide group of communications and marketing officials. A delegation of more than 50 science and economic-development leaders represents the state at the four-day event in Boston. bio trade association hires industry veteran: The Arizona BioIndustry Association hires a new CEO, C. Robert (Bob) Eaton, who led MdBio, a successful bioscience industry support group in Maryland. Eaton will help to shepherd an effort underway to expand the association’s statewide service into Tucson and Flagstaff by partnering with the Bioindustry Organization of Southern Arizona and bioscience leaders in northern Arizona. Tax credits benefit early-stage companies: Early-stage high-tech and bioscience firms in Arizona receive a boost from the angel tax credit passed by the Legislature in 2006. The Arizona Department of Commerce reports that $1.68 million in credits has been provided to investors. bioscience highlighted in Tucson economic strategy: Tucson’s economic development group – Tucson Regional Economic Opportunities – releases an economic blueprint that includes strengthening the region’s science and technology base through collaboration with UA. napolitano earns bio ‘governor of Year’: The Washington D.C.-based Biotechnology Industry Organization honors Gov. Janet Napolitano as its 2007 Governor of the Year, recognizing her support of the biosciences in Arizona and her leadership on behalf of the biosciences during her term as Chair of the National Governors Association. Strategy 4 2007 pRogRess p R e pa R e W o R k f o R c e, e d u c at e c i t i z e n s science, math education advances: Several developments bolster science and math education in Arizona high schools: • The Arizona Board of Education approves a measure to require additional science and math credits to graduate. • NAU lands a $3.4 million grant from ExxonMobil and the Helios Education Foundation for a program to nearly double the number of science and math teachers the university produces. • UA receives $3 million from the National Science Foundation to promote science education in public schools. The grant enables university students to serve as science mentors in K-12 classrooms. • SFAz awards $3.2 million to nine projects to advance Arizona K-12 education in science, technology, engineering, and math. The program encourages collaborative approaches with industry, nonprofits, or local governments. • The state budget includes new funding for various efforts to strengthen science and math education and achievement. southern arizona workforce effort funded: A $5 million federal grant funds an initiative to prepare southern Arizona’s workforce for high-tech and science jobs. The program involves Pima, Cochise, Santa Cruz, and Yuma counties. bioscience High school facility opens: Phoenix Union High School District officials celebrate the opening of Phoenix Bioscience High School’s permanent facility on a two-acre site north of the Phoenix Biomedical Campus. The school’s 150 students previously had been housed at nearby Phoenix Preparatory Academy. Tgen internship program lands grant: TGen lands a $380,000 grant from the Helios Education Foundation to bolster its internship program, now known as the Helios Scholars Program. The funding will support summer internships for 50 qualified high school, undergraduate, and graduate students. High school bio programs inventoried: A report on Arizona high school bioscience education programs finds that formal efforts are scattered throughout the state, though they lack in funding and coordination at the state level. The report and inventory of programs, co-sponsored by Salt River Project and the Flinn Foundation, is available at www.flinn.org.
Yearly Highlights
• January: Chesnut Properties opens Papago Gateway Center, Arizona’s largest commercial wet-lab facility and the state’s first privately financed LEED-certified office/research facility.
• Jan. 29: Helios Education Foundation makes grant of $6.5 million to TGen to support the Helios Scholars Program, an internship program at TGen, for the next 25 years.
• Jan. 30: NSF awards $50 million to a group led by UA’s BIO5 to create the iPlant Collaborative, a cyberinfrastructure to help researchers tackle complex plant-science challenges.
• Feb. 5: Bioscience and investment professionals form the Translational Accelerator, LLC (TRAC), Arizona’s first venture fund to target early-stage bioscience companies.
• Feb. 7: Swiss pharmaceutical giant Roche completes acquisition of Oro Valley-based Ventana Medical Systems Inc. for $3.4 billion, and pledges to expand operations in Arizona.
• Feb. 28: Researchers at UA announce decoding of corn genome after $30 million collaborative investigation begun in 2005 with three other research organizations.
• March 10: Arizona BioIndustry Association becomes more unified and representative, merging with Bioindustry Organization of Southern Arizona and naming new board of directors.
• March 27: ASU’s SkySong opens in Scottsdale; mixed-use development houses ASU commercialization and tech-transfer programs plus local and international companies.
• April 16: Arizona Sen. Jon Kyl named “Legislator of the Year” for 2007-2008 by the Biotechnology Industry Organization (BIO), the nation’s largest biotech trade group.
• June 5: Government of Luxembourg commits $200 million to biomedical-research projects involving TGen and the Partnership for Personalized Medicine, which includes researchers from TGen and ASU’s Biodesign Institute.
• June 9: German drug developer SYGNIS Pharma AG buys Amnestix, a TGen spinoff, in a $6.3-million cash-and-stock deal.
• June 30: U.S. FDA and its European counterpart approve new methods, developed by C-Path’s Predictive Safety Testing Consortium, for discerning potential toxicity of drug candidates.
• July 1: Gov. Janet Napolitano signs budget including: expanded tax credit for R&D; sustained funding for SFAz; bonding for $1 billion of university construction, including build-out of Phoenix biomedical campus.
• July 8: Arizona Economic Resource Organization (AERO) launches $325,000 “fund of funds” to commercialize innovations; planners project $200 million in new venture funding.
• July 14: ASU names Biodesign Institute director George Poste as chief scientist for new Complex Adaptive Systems Initiative to steer cross-disciplinary scientific research programs.
• July 15: Gov. Janet Napolitano announces formation of the Arizona STEM Education Center to strengthen science, technology, engineering, and mathematics education.
• Aug. 14: UA names William Crist to new post of vice president for health affairs, overseeing medical, nursing, pharmacy, and public-health colleges, plus Arizona Cancer Center.
• August: UA and Canon USA Inc. announce plans for a Canon digital-photography and medical-imaging R&D center at UA’s Science and Technology Park, plus a $3 million grant to UA.
• Sept. 2: Arizona’s largest hospital group, Banner Health, completes $316 million purchase of Sun Health Corp., adding two hospitals along with Sun Health Research Institute.
• October: The National Institutes of Health awards a $44 million contract to UA to join the National Children's Study, an investigation of environmental influences on the health of children nationwide.
• November: C-Path earns Science Foundation Arizona's biggest investment to date, $9 million, to support its work as an honest broker able to balance the interests of drug companies and the government agencies that regulate them.
• November 17: The Northern Arizona Center for Emerging Technologies (NACET), a high-technology business incubator, holds its grand opening in Flagstaff.
Roadmap Progress Report Brochure, December 2008. (Download PDF)
2008 progress on arizona’s bioscience roadmap Turning the Corner a p u b l i c a t i o n o f t h e f l i n n f o u n d a t i o n p r e pa r i n g to pa s s nternational contracts, mega grants, spinoffs, acquisitions, new venture funds, and a host of infrastructure advances for tomorrow’s knowledge workers marked the year 2008, the sixth in the 10-year plan that is Arizona’s Bioscience Roadmap. Facility growth continued with vital state funding of the Phoenix Biomedical Campus, new science parks getting off the ground in Tucson and Flagstaff, and the emergence of commercial wet-lab space. Grants from the National Institutes of Health substantially outpaced the nation, as did growth in bioscience jobs and firms. The Roadmap is propelled by an extensive committee network involving more than 300 statewide experts, plus regional roadmaps in northern and southern Arizona driven by local leaders based on the specific strengths and dynamics of their communities. Top Roadmap priorities for the year ahead… molecular diagnostics: Arizona is carving a potent niche in this emerging area with top scientists, equipment, companies, and a ready infrastructure. The Arizona-based Partnership for Personalized Medicine, kick-started by its linchpin role in the $200 million Luxembourg initiative, looks to expand into new countries working to cut costs and improve health outcomes through diagnostics tests based on protein-level advances. commercialization: For the first time, the year’s highlights cited above focus primarily on the business end of the biosciences. This signals realization of a goal – that investments in research infrastructure during the Roadmap’s first five years would translate into commercial gains over the next five. The momentum must continue and accelerate if Arizona is to build a concentration of bioscience firms. capital Formation: While significant strides were made in 2008 to launch new tools to generate private investment for early-stage companies, Arizona has miles to go before it truly offers a business environment suitable for entrepreneurs to launch new bioscience companies and place new products on the market. arizona’s bioscience roadmap Arizona’s long-term plan to bring its bioscience sector to national competitiveness Driven by an extensive collaboration among statewide leaders in science, business, and policy Research and facilitation provided by Battelle Commissioned and coordinated by the Flinn Foundation Translational research component co-sponsored by Arizona Biomedical Research Commission Details available at www.flinn.org i road test An update of Roadmap progress in late 2008 revealed the following data on key measures. r&d expenditures: Bioscience-related academic research and development expenditures at Arizona’s universities grew strongly in 2007. The total of $415 million represents a 47.8% gain since 2002, besting the top-10 states (42.3%) and U.S. average (40.5%). niH grants: Grant funding from the National Institutes of Health, the industry gold standard, grew in 2007 at more than five times the national average. At present, Arizona has surpassed its five-year goal of exceeding the growth rate of the top-10 states. The state’s NIH funding increased by 24.4% from 2002-07, compared to 11.2% for the top-10 states. Non-university research institutes are leading the way at 27.4%, though the state’s public universities are also besting the top-10 states at 16.6%. Jobs: Arizona bioscience jobs continued to grow at a significantly faster rate than the nation. Bioscience employment grew 23.3% during 2002-07, adding nearly 16,000 jobs for a total of 84,235. While the state’s fast-growing hospital subsector dominates its bioscience employment, non-hospital bioscience firms are actually growing more rapidly (24.3% during 2002-07). Firms: The number of bioscience establishments in Arizona increased 21.9% during 2002-07, rising from 639 to 778 – also a substantially faster rate of growth than the nation. Three of the four subsectors that comprise the non-hospital biosciences showed gains, led by research, testing, and labs (35.3%), and drugs and pharmaceuticals (33.3%). Wages: Bioscience workers in Arizona earn an annual salary of $52,481, on average, compared to $41,044 for all private-sector industries. Arizona annual bioscience wages increased 34% during 2002-07. Venture capital: The year 2007 ranks as arizona’s top year in generating bioscience venture capital investments since the Roadmap launch in 2002. However, the state did not achieve its goal of passing $100 million, coming in at $86 million. As has been true of the venture industry nationally, Arizona in 2008 has seen further drops in new investment levels relative to 2007. entrepreneurialism: During 2002-07, Arizona’s universities have shown continued gains in all categories of bioscience intellectual property – invention disclosures, patent applications, patents issued, licenses and options executed, gross license income, and bioscience startup companies. implementation: Of the 19 action items recommended by Battelle in 2002 to achieve over 10 years, progress has been made on 17, including substantial progress on 10. bioscience timeline Tracking the progress of arizona’s bioscience initiative 2000–01 2005 2008 Prop. 301 passes, providing $1 billion over 20 years for scientific research at state universities Flinn Foundation commits to 10 years of major funding of Arizona biosciences BIO5 Institute, then known as IBSB, debuts at UA 2002 Critical Path Institute founded in Tucson Legislature passes angel tax credit NAU introduces SABRE research consortium 2006 Ventana Medical Systems purchased by Roche Holding AG for $3.4 billion; local expansion planned BIO5 awarded $50 million NSF grant to establish iPlant, a cyber- infrastructure for plant sciences Investors form TRAC, a $20 million venture-capital fund for Arizona bio Legislature commits $470 million for two key facilities at Phoenix Biomedical Campus TGen, Partnership for Personalized Medicine awarded primary components of $200 million Luxembourg bio project Arizona BioIndustry Association and BIO-SA merge, form AZBio Legislature passes expanded R&D tax credit NACET, high-tech incubator, opens in Flagstaff Science Foundation Arizona forms, receives $35 million from State Biozona brand debuts Phoenix Bioscience High School opens 2007 Bioindustry Organization of Southern Arizona forms in Tucson TGen created following $90 million fundraising effort; IGC locates in Arizona Arizona’s Bioscience Roadmap launched 2003 W. L. Gore purchases land for Phoenix expansion Covance breaks ground on Chandler facility Legislature approves $100 million for SFAz Classes begin at UA College of Medicine-Phoenix in partnership with ASU TGen, ASU Biodesign Institute join Nobel laureate Lee Hartwell to launch Partnership for Personalized Medicine TGen spinoff MPI purchased by Caris Diagnostics ASU’s Biodesign Institute established Arizona Biomedical Collaborative created Legislature approves $440 million to build university research facilities State’s bio cluster group reorganizes as Arizona BioIndustry Association 2004 UA, ASU agree to partner on medical school in downtown Phoenix $100 million for bioscience/ healthcare training approved for Maricopa Community Colleges additional information on arizona biosciences can be found at www.flinn.org, www.arizonabiobasics.com, and www.biozona.org. Strategy 1 build research infrastructure progress 2008 Luxembourg taps Tgen, biodesign: TGen and the Biodesign Institute at ASU have central roles in a $200 million bioscience initiative announced by the government of Luxembourg. A major component marks the first project of the Partnership for Personalized Medicine, an Arizona-based effort involving the two research institutes and Nobel laureate Lee Hartwell of the Fred Hutchinson Cancer Research Center in Seattle. They will help Luxembourg to develop a diagnostic tool for early lung-cancer detection. TGen is also leading another component to establish a tissue bank. Ua earns giant grant, contract: The University of Arizona receives one of the largest grants in state history for scientific research. The university’s BIO5 Institute wins a $50 million, five-year National Science Foundation grant to create the iPlant Collaborative, a global center and cyberinfrastructure enabling researchers worldwide to tackle multidisciplinary plant-science challenges. UA also secures a $44 million, six-year National Institutes of Health contract to join the National Children’s Study. c-path cements role: Tucson’s Critical Path Institute facilitates a groundbreaking joint agreement by the U.S. Food and Drug Administration and its European counterpart, the European Medicines Agency, to approve new methods for measuring the potential kidney toxicity of drug candidates. The agencies now will accept data from seven kidney biomarker tests, or measures of particular proteins, developed by a C-Path consortium of 17 major pharmaceutical firms. C-Path also receives a $9 million investment from Science Foundation Arizona, which notes the attention C-Path is attracting to Arizona from global pharmaceutical and biotechnology companies. Legislature supports sFaz, biomedical campus: Lawmakers prepare a tight state budget for fiscal 2009, but spare SFAz, slightly restructuring its funding but leaving its total commitment intact. The budget also includes bonding for $1 billion in deferred infrastructure repairs and construction at the state’s universities, including $470 million for two new major research and education facilities at the downtown Phoenix Biomedical Campus. naU building named greenest university facility: The U.S. Green Building Council gives Northern Arizona’s University’s new Applied Research and Development Building a platinum LEED (Leadership in Energy and Environmental Design) rating; the ARD Building’s point total marks it as the “greenest” building in Arizona and the greenest university facility in the United States. It houses NAU’s Center for Microbial Genetics and Genomics, led by anthrax expert Paul Keim. asU announces new multidisciplinary group: ASU establishes a new endeavor in interdisciplinary scientific research, the Complex Adaptive Systems Initiative, to steer research projects in such fields as synthetic biology, sensor technologies and health-care informatics. Strategy 2 build critical mass of firms progress 2008 roche completes Ventana purchase: Ventana Medical Systems, the Tucson area’s largest biotech employer, is purchased for $3.4 billion by Roche Holding AG, the Swiss pharmaceutical and diagnostics giant that has pursued Ventana since June 2007. Roche says Ventana will maintain its headquarters in Oro Valley, increase its southern-Arizona workforce from 750 to 1,000 by the end of 2009, and make additional investments to expand the firm’s local presence. Tgen spins off one firm, sells another: TGen launches its third spinoff, MedTrust Online, a medicalinformation source for oncologists. Amnestix, founded in 2006 by TGen scientists, is purchased by German drug developer Sygnis Pharma AG in a $6.3 million cash and stock deal. The company is developing drugs for memory-related disorders. catapult bio inks funding deal: Catapult Bio, a TGen-initiated nonprofit dedicated to bringing bioscience research to the marketplace, receives a five-year, $14 million grant from Abraxis BioSciences, Inc, under the leadership of Patrick Soon-Shiong, chairman and CEO. The deal was facilitated by the Greater Phoenix Economic Council. The organization, which plans a March 1 launch, aims to create new companies by maximizing late-stage discovery research. senesTech announces international pact: SenesTech Inc. of Flagstaff signs an agreement with the government of Australia to test a new rodent-control product in West Java, Indonesia. The product humanely sterilizes rats that devastate rice crops, a food staple for half of the world. Firms grow via acquisitions: Medicis, a Scottsdale pharmaceutical firm, will pay up to $300 million for LipoSonix, a Seattle-based company that reduces fat cells via ultrasound technology. Owners of SynCardia Systems Inc., a Tucson manufacturer of bridge-to-transplant artificial hearts, purchase publicly held MicroMed Cardiovascular Inc., of Houston, a manufacturer of ventricular assist devices. out-of-state firms arrive: Solis Women’s Health, a Texas firm specializing in screening and diagnosing breast cancer, enters the Phoenix market by purchasing BenOra Imaging, a breast-diagnostic firm. DNA Testing Systems moves from Santa Fe, N.M., to Scottsdale, having signed an agreement to sell a biogeographical ancestry test developed by Florida-based DNAPrint Genomics. Medical-testing firm Any Lab Test Now opens its first Arizona facility, offering a range of tests and screenings. Ua establishes research partnership with canon: UA and Canon USA Inc. agree to establish a collaborative research-and-development operation in digital photography and medical imaging, initially funded by a $3 million research grant from Canon, at UA’s Science and Technology Park. Strategy 3 enhance business environment progress 2008 Venture group forms for arizona bio: Leading Phoenix-area bioscience and investment professionals announce the formation of the Translational Accelerator LLC, a private, Arizona-based $20 million bioscience venture-capital group. TRAC becomes Arizona’s first venture fund established to target early-stage bioscience companies. Investments will support firms located in Arizona or planning to move to the state. aero establishes “fund of funds”: The Arizona Economic Resource Organization, a nonprofit created last year to coordinate the state’s economic-development efforts, receives $325,000 to launch a “fund of funds” to commercialize high-technology innovations. Legislature expands r&d tax credit: The technology community scores a long-sought victory when Arizona legislators pass an expanded research-and-development tax credit. Beginning in 2009, companies will receive a 22 percent tax credit – up 2 percentage points – on R&D expenses up to $2.5 million, with an additional increase for expenses exceeding that amount. bio trade groups join forces: The Arizona BioIndustry Association merges with its Tucson-based counterpart, the Bioindustry Organization of Southern Arizona. The move gives the trade association a morerepresentative statewide structure, including a statewide board of directors and a Flagstaff presence. Flagstaff incubator opens, Ua biopark breaks ground: The Northern Arizona Center for Emerging Technologies, a Flagstaff-based high-technology business incubator, celebrates its grand opening and assumes leadership of NAU’s technology-transfer activities. On Tucson’s South Side, developers break ground on the multi-use site that will include UA’s Arizona Bioscience Park. phoenix council allocates funds for wet labs: A Phoenix City Council subcommittee recommends allocating $792,000 in bond money to build wet-lab space of 5,000 square feet or more at GateWay Community College. The proposed project would help address a local shortage in affordable lab space for startup bioscience companies. sen. Kyl named bio Legislator of the Year: U.S. Sen. Jon Kyl, R-Ariz., is named Legislator of the Year for 2007-08 by the Biotechnology Industry Organization, the nation’s largest biotech trade group. bio companies secure venture funds: Among Arizona bioscience firms receiving venture-capital funding are Ulthera Inc., a therapeutic ultrasound device manufacturer in Mesa ($22.5 million); Cayenne Medical Inc., a sports-medicine device firm in Scottsdale ($15 million); Zounds, a hearing-aid developer in Mesa ($8.7 million); Regenesis Biomedical Inc., a regenerative medicine firm in Scottsdale ($2.8 million); and Medipacs Inc., an infusion-pump maker in Tucson ($1.7 million). Strategy 4 prepare Workforce, educate citizens progress 2008 Helios endows Tgen internship program: Helios Education Foundation donates $6.5 million to support the Helios Scholars internship program at TGen for the next 25 years. The program supports 45 high-school, undergraduate, and graduate students each summer. naU snares grants for math and science education: NSF awards NAU $2.9 million to bolster the preparation of its graduate students in the biosciences, funding graduate fellows and placing them in K-12 classrooms several hours each week. Freeport-McMoRan Copper & Gold Inc. makes a $500,000 gift to boost science and engineering programs at NAU and expand efforts to promote interest in math and science among grade-school students. governor creates sTem center: Gov. Janet Napolitano announces that her office and several public and private partners have formed an organization to strengthen science, technology, engineering and mathematics (STEM) education in Arizona. The center’s director is Darcy Renfro, formerly the governor’s higher-education policy adviser. sFaz program grows to nation’s largest: SFAz awards $8.8 million to Arizona’s three public universities to support the second cohort of Graduate Research Fellows. With 100 new fellows joining 80 second-year fellows, the program is now the largest of its kind nationwide. Forty percent of the new fellows are conducting bioscience-related research. phoenix council tags funds for bio high schools: The Phoenix City Council approves $5.7 million in Capital Improvement Program Bond funding for small specialty high schools. One grant will establish a medical-sciences school on the Bioscience High School campus in downtown Phoenix; another will establish a biotechnology, engineering, and nursing school at Paradise Valley High School. Meanwhile, Flagstaff conducts initial planning toward its own STEM high school. community colleges strengthen bio programs: Chandler-Gilbert Community College launches a biomedical-research-technology program, joining two other Maricopa Community Colleges with formalized biosciences programs. South Mountain Community College strengthens its bioscience portfolio by earning a $290,000 Expanding Undergraduate Bioscience Engagement Track grant from the U.S. Department of Agriculture to support student research and links with area high schools. bioscience High earns top marks: Bioscience High School achieves the top passing rate in Maricopa County on the AIMS mathematics test. Statewide, Bioscience High has the second-highest passing rate among all high schools, trailing only University High School, a Tucson academic-magnet school.
Yearly Highlights
• Jan. 7: C-Path announces formation of United States Diagnostics Standards to assess diagnostic tools before they are submitted to FDA for approval.
• Feb. 10: TGen announces strategic alliance with Van Andel Research Institute of Grand Rapids, Mich. Jeffrey Trent assumes leadership of both institutions.
• March: Biodesign Institute at ASU welcomes Alan Nelson as new director and appoints Joshua LaBaer to head a sophisticated personalized-diagnostics lab.
• March: Phoenix Children's Hospital launches Children's Neuroscience Institute under leadership of elite pediatric neurosurgeon P. David Adelson.
• March 26: Covance Inc. opens $175 million drug-development laboratory in Chandler. Facility may ultimately provide 2,000 high-wage jobs.
• April 7: A study of Arizona's bioscience sector by Battelle finds that bio accounted for $12.5 billion in revenues in 2007 and more than 87,400 jobs.
• April 13: The Flinn Foundation board of directors choose Jack B. Jewett - longtime Arizona leader in health care, education, and public policy - as its next president and chief executive officer.
• June 30: St. Joseph's Hospital and Medical Center and Creighton University announce affiliation to create Creighton medical-school campus at St. Joseph's in Phoenix.
• July 14: GateWay Community College announces it has secured $6 million to build bioscience business incubator on its campus.
• Aug. 6: Biodesign Institute at ASU launches $5 million Impact Accelerator to move research discoveries toward commercialization.
• Sept. 8: ASU recruits 2001 Nobel laureate Lee Hartwell to lead new Center for Sustainable Health.
• September: Sun Mountain Capital signs on to build and manage $200 million venture "fund of funds" to back Arizona startups in bio, other high-tech fields.
• Sept. 24: Chandler approves $5.7 million to establish bioscience- and high-tech-focused Innovations Technology Incubator.
• Sept. 30 IGC receives notice that it will assume a bigger role in Cancer Genome Atlas project, likely allowing IGC to triple its current workforce of 45.
• Oct. 1: AZBio hires veteran southern-Arizona biotech entrepreneur Robert Green as its new president and CEO.
• Oct. 2: NAU and Arizona Cancer Center receive $15.7 million from National Cancer Institute to study cancer disparities among Native Americans.
• Oct. 18: Phoenix learns it will host Intel International Science & Engineering Fair, drawing 5,000 registrants, in 2013, 2016, and 2019.
• October: Nonprofit bioscience-research commercialization organization BioAccel (formerly Catapult Bio), makes first two grants to startup firms.
• Nov. 2: BIO5 Institute at UA appoints as new director physician Fernando Martinez, expert in pediatric lung diseases.
• Nov. 3: Northern Arizona Center for Emerging Technologies, opened in late 2008, graduates first company, biotech startup SenesTech Inc.
• Nov. 5: Abraxis Health dedicates its Phoenix nanobiologics manufacturing facility after $70 million upgrade, expansion.
• Nov. 23: Arizona Legislature restores $18.5 million in funding to Science Foundation Arizona, allowing fulfillment of previous grant commitments.
• Nov. 24: BIO5 Institute at UA receives $750,000 grant from Helios Education Foundation for Jr. BIOTECH program to support middle-school science teachers.
• Nov. 30: Banner Health and M.D. Anderson Cancer Center break ground in Gilbert on 120,000-square-foot joint endeavor, Banner M.D. Anderson Cancer Center.
• Dec. 11: UA breaks ground on multi-use, 54-acre Arizona Bioscience Park with funding from $4.7 million federal grant.
• Dec. 21: ASU-led group receives $40.8 million to develop tools to detect radiation exposure. Partners include TGen, High Throughput Genomics, UA, and Scottsdale Healthcare Research Institute.
Roadmap Progress Report Brochure, January 2010. (Download PDF)
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Reminder
Overcoming Obstacles: 2009 Progress on Arizona's Bioscience Roadmap
Arizona's growing bioscience sector scored notable gains in 2009 despite a deep recession and severe state budget cuts.
Arizona Bio Events
03/10/2010
06:00 PM | College of Medicine-Phoenix, Virginia G. Piper Auditorium
Mini-Medical School Lecture Series
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asu, emergency medicine, mini-medical school, ua
03/10/2010
06:00 PM | Tucson Convention Center
Five Mayors’ Future Innovator Night at SARSEF
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education, engineering, science, technology
