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IMPACT 2007, Biotech Study Finds Challenges to Biotechnology Industry

BayBio, a biotechnology industry organization, published its study BayBio: IMPACT 2007.

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

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

Some key facts and statistics of the report are:

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

BayBio: IMPACT 2007

• [PDF] Public Policy: Trends, Challenges and Solutions
  
• [PDF] Autoimmune and Inflammation
• [PDF] Blood and Lymphatic System
• [PDF] Cancer
• [PDF] Cardiovascular and Circulatory
• [PDF] Central Nervous System
• [PDF] Dental
• [PDF] Devices and Diagnostics
• [PDF] Dermatology
• [PDF] Digestive System
• [PDF] Genetic Diseases
• [PDF] Infectious Diseases
• [PDF] Metabolic Disorders
• [PDF] Musculoskeletal Disorders
• [PDF] Ophthalmology and Optometry
• [PDF] Respiratory and Pulmonary System
• [PDF] Substance Abuse
• [PDF] Urinary Tract System
• [PDF] Women's Health

Science Business: The Promise, The Reality, and The Future of Biotech

In our feature segment, IdeaCast producer Steve Singer talks with Harvard Business School professor and author Gary Pisano about his new HBS Press book, Science Business: The Promise, The Reality, and The Future of Biotech.

Despite all its promise, Pisano contends that biotech suffers from some underlying problems, which are related to the business of science and the unique challenges these businesses face. Pisano offers insights into how to overcome these hurdles.

[mp3] Listen or Download / HBR IdeaCast

Science Business: What Happened to Biotech?

Thirty years ago it appeared as if biotech would not only revolutionize healthcare, but also radically improve the very process of R&D itself. This hasn't happened. Though some firms such as Amgen have created dramatic breakthroughs, the overall industry track record is poor—in aggregate, the sector has lost money during this period, new research shows.

What went wrong? Professor Gary Pisano provides answers in the new book Science Business: The Promise, the Reality, and the Future of Biotech, in which he argues that the very structure of the industry, what he terms its "anatomy," has created poor conditions for a science-based business to flower. "The sector has indiscriminately borrowed business models, organizational strategies, and approaches from other high-technology industries under the (false) premise that if it worked there it will work here," Pisano writes.

» Search Healthcare-Specific Tags: Biotech - Science Business - Amgen

» The Promise, the Reality, and the Future of Biotech
» HBS Working Knowledge

Biotechnology company Genentech Inc. (DNA.N) has raised the price of its cancer drug Tarceva by 8 percent

Genentech raised the wholesale price of Tarceva -- which is approved to treat lung and pancreatic cancer -- to $2,893.86 from $2,679.50 for a 30-day supply of 150 milligram tablets, according to a document filed on Tuesday by Genentech's partner, OSI Pharmaceuticals Inc. (OSIP.O) with the U.S. Securities and Exchange Commission.

» Search Healthcare-Specific Tags: Genentech - Tarceva - OSI Pharmaceuticals
» Reuters

Human Genome reports positive trial of lupus treatment.

Human Genome Sciences said a 76-week Phase II trial of its lupus treatment LymphoStat produced positive results, reducing disease activity and appearing to be well-tolerated by patients. The percentage of patients who met the trial's primary endpoint for Phase III trials rose from 46% after 52 weeks to 56% after 76 weeks, the Rockville, Md. biotechnology company said.

» Search Healthcare-Specific Tags: LymphoStat - Human Genome - Lupus
» Human Genome Sciences

Angiotech Pharma / Solid 2-year vascular wrap data (Buy 2)

» Search Healthcare-Specific Tags: Angiotech Pharma - Vascular 
» UBS Research: Healthcare

Bioenvision F1Q07: Clofarabine Launch and Dev. Forge Ahead (Buy 2)

» Search Healthcare-Specific Tags: Bioenvision - Clofarabine
» UBS Research: Healthcare

Big pharma taking market’s place in valuing biotech

In addition to licensing and other traditional partnering deals, large pharmaceutical companies are paying eye-watering prices for tiny biotech companies which have been starved of money by the reluctance of financial markets to invest in the area. "Pharma companies are desperate for new products," Simon Moroney, chief executive of Morpho-Sys, the German antibody company, tells the FT. "They are prepared to pay huge amounts of money for early-stage compounds."

Traditionally, big pharma would become interested in biotech companies only when their products were well into clinical trials but now they are willing to buy technology at an earlier and riskier stage, before it has been tested on patients. For the small companies, selling out is seen as cheaper or less risky than holding an IPO. "An IPO is very expensive and the valuation you get is not high enough," says Martin Mattingly, chief executive of Ambrx, a Californian protein engineering company.

» Alphaville

Millenium Pharmaceuticals (MLNM) Ends Its Bid For AnorMED (ANOR) , Leaving Genzyme (GENZ) On Top

Millenium Pharmaceuticals (MLNM) announced today that it will not increase its bid for Canadian biotech AnorMED (ANOR) following a bid by Genzyme (GENZ) for $13.50 a share.
Via: BioHealthInvestor
Via: Biotech SeekingAlpha

Inovio Biomedical acquires Valentis' DNA delivery assets

Inovio Biomedical Corp. (INO.A) on Tuesday said it acquired certain DNA delivery and expression assets from Valentis Inc. (VLTS.O: Quote, Profile, Research) for $860,000 to enhance its overall gene delivery technology platform.

The biomedical company said $300,000 from the total deal price was offset by the cancellation of an outstanding debt Valentis owed to Inovio. The acquisition includes Valentis' DNAvax polymer delivery system and GeneSwitch gene regulation technology.
Via: Reuters
Via: Wires