Stephen Rapundalo, PhD

1
Biosciences in Michigan A High-Tech,
Multi-Sector, Growth Industry

• Stephen Rapundalo, PhD
• President and CEO
• MichBio

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Introducing the Biosciences
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A High-Growth Global Industry

• Biosciences has a strong performance record, even
  in difficult economic and political times
• outperformed Dow and NASDAQ
• 85 billion in U.S. revenues
• Europe 12 billion
• Asia/Pacific 3 billion
• Canada 2 billion
• Pharma remains king
• twenty products have sales gt 1B gt100 products
  total
• 350 biotech drugs in late stage clinical trials
• U.S.-made ag-bio products now grown on 200
  million acres worldwide and growing at 20 per
  year over 1 billion acres have been planted
• Proven applications in healthcare (cure
  prevention), food/agriculture, and industrial
  (chemicals, fuels materials)

U.S. BioPharma, Biotech, Devices Diagnostics
growth is assured and sustainable on a
demographics basis alone.
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Biosciences in the U.S.

• Biosciences are key driver of modern economic
  progress
• All states and regions are investing to create a
  business climate that supports specific needs of
  biosciences sector
• Academic RD expenditures 28 billion in FY06
• VC investments in bio companies 11.6 billion
  in 2007
• Total U.S. employment of 1.3 million in 2006
• Total impact (direct, indirect, induced jobs)
  7.5 million
• Direct-effect employment multiplier 5.8

FierceBiotech 2009 Top Regions Targeting
Biotechnology MN, MA, NY, ON, CO
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Biosciences in Michigan

• gt 550 bioscience companies
• 40,086 direct jobs
• 33,873 private sector jobs
• 6,213 jobs in academia
• 58,721 spinoff jobs
• directspinoff earnings 6.6 B
• private sector payroll 2.5B
• private sector tax revenues 0.5 B
• 9.3 B to states GRP
• 73,930 avg. bio salary
• 11.1 B in sales for MI companies w/ HQs
• four Fortune 500 bioscience companies (Dow,
  Delphi, Kellogg, Stryker)

Biosciences is big business in Michigan
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Global Bio-Industry Leaders in MI

• Abbott owns Abbott Nutrition (formerly Ross
  Labs) in Sturgis
• Amway nutraceuticals in Grand Rapids
• Bayer owns Bayer Crop Science facility in
  Muskegon
• Beckman-Coulter owns Lumigen in Southfield
• Becton Dickinson own facility in Detroit
• Bristol-Myers Squibb owns Mead Johnson
  Nutrition in Zeeland
• Dow bio-based technologies and chemicals in
  Midland
• Johnson Johnson owns Healthmedia in Ann
  Arbor
• Kellogg Battle Creek
• Nestlé Company owns Gerber Products in Fremont
• Perrigo worlds 1 OTC manufacturer in Allegan
• Pfizer largest global manufacturing facility
  in Portage Animal Health RD HQ in Kalamazoo
• Stryker Portage Kalamazoo
• Terumo owns Terumo CVS and Terumo Heart in Ann
  Arbor

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MIs Bio-Industry A Full Spectrum
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Entrepreneurship in MIs Biosciences
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MIs Biosciences Stats Rankings
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MSAs with 10,000 Employees
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Factors for Success
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An Action Plan for MIs Biosciences

• Opportunities for Michigan
• Formal strategy for development of the
  biosciences sector
• State legislative committee and/or caucus focused
  on biosciences
• Program or initiative to support bioscience
  research infrastructure projects Funding to
  attract star executive/management and faculty
  to state
• Enhance pre-seed funding and other investment
  sourcing for companies
• Entrepreneurial support program focused on
  biosciences
• Program or initiative to finance fit-out costs
  for bioscience incubators
• Novel approaches to address bioscience talent
  needs
• Tax incentives specific to bioscience companies
  and sector strengths
• Favorable regulatory policies

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