Life Sciences & Biotech
- For decades California has had an excellent track record of pioneering work in Life Sciences and producing thousands of new therapies and technologies in this field.
- Within California, the San Francisco Bay Area claims the largest cluster of biotech companies with nearly 25% of all Life Sciences employment in California in 2015 being in the Bay Area.
- There were 3040 life sciences companies in California in 2015, an increase of 212 companies from 2014. Most companies are small, entrepreneurial start-ups, built on innovative technologies.
- 1269 new therapies are being tried and tested in California as of September 2016, nearly 30% of which are cancer-related.
- A total of 68,313 people were employed in life sciences in the Bay Area in 2015, and the average wage for life sciences there was $162,226 compared with $116,484 across the state of California. The life sciences industry generated $15.6 billion in taxes, $22 billion in exports and added over 800,000 jobs.
- The San Francisco Bay Area is home to more than 25 venture capital funded Biotech companies. San Francisco-based healthcare and biotechnology companies that received venture capital funding in 2016 include Twist Biosciences Corporation, Precision Immune Inc., and Delinia Inc.
- California continues to attract interest and investment from many companies throughout the world thanks to the discoveries and innovations made in life sciences. This flow of investment means that in 2016 California attracted more than $4.5 billion in healthcare VC investment, a decrease from over $5 billion in 2015 but an increase from the $4.4 billion received in 2014. California also received the highest amount of healthcare venture capital investment of all U.S. states in Q4 2016, with California healthcare VC investment accounting for around 40 percent of national healthcare VC investment.
- The San Francisco Bay Area received $489 million in healthcare venture capital investment in Q4 2016, second only to New England with $589 million. New York City, San Diego and the Southeast rounded out the top five regions.
California attracted just over 50% more VC investment than Massachusetts, the 2nd biggest attractor of VC investment and about 50 times as much as the 10th biggest attractor, Kentucky.
- California continues to dominate the nation is academic achievement. According to the 2016 Shanghai Index, California has 11 of the world’s top 100 schools. New York is the runner-up with four. In 2013, academic institutions in the state awarded 1,318 life sciences doctorates to scientists and engineers. The second highest state, New York, awarded 909.
- In labs throughout the state, California’s academic researchers attract billions of dollars in grants from the National Institutes of Health (NIH) and other organizations. In 2015, California institutions received more than 521 awards/grants, totaling $3.6 billion, about 15 percent of all NIH grants distributed. Among California institutions Stanford and UC San Diego lead the pack, bringing in a combined $1.4 billion of NIH funding.
- The Bay Area specifically is home to the largest aggregation of research universities and federal research institutions in the country; in fact, Bay Area universities produce more Ph.D. scientists & engineers than any other area in the whole of the US!
- UCSF’s Mission Bay campus, a bio-entrepreneurship center, offers mentoring and training for faculty members whose discoveries might form the basis of spin-off innovations. In addition, the Mission Bay Campus provides funding and state-of-the-art technology, including telemedicine, robotics and intra-operative imaging, as well as space to accommodate tomorrow’s innovations.
World Class Life Sciences Incubators
- San Francisco continues to be the heart of biotechnology in the Bay area. The transformation of UCSF’s Mission Bay into a thriving biotechnology center has brought a significant economic advantage for San Francisco.
- Since 2006, Mission Bay has nurtured hundreds of life science or medical technology startups, most of them hatching in incubator programs that vary widely in size, duration, scientific focus and financial investment.
- By Q4 2015, more than 10 incubators have given rise to nearly 100 early-stage companies. In addition to QB3 UCSF and QB3 Berkeley, some more recent incubators such as Illumina, TheraNova and FibroGen are also accelerating the growth of many startups.
- Also located in Mission Bay are the U.S. Innovation Center (USIC) and Bayer’s CoLaborator, a 6,000-square-foot incubator space for start-ups, both opened by Bayer Healthcare in 2011.
- A little less than 20 percent of all NIH funding in California went to UC San Francisco.
- Mission Bay, the hub of San Francisco’s life sciences industry, spans 303 acres in the heart of the burgeoning and dynamic South of Market area. This hub of knowledge and innovation is also home to prominent private sector companies, including: Celgene Corp, Presidio Pharmaceuticals, Inc., FibroGen, Bayer, Pfizer and Nektar.
- Mission Bay accommodates 6,000 units of housing (28 percent affordable), 4.4 million square feet of office and R&D space, a 57-acre UCSF research campus and 550-bed medical center, 500,000 square feet of retail. By the end of 2017, one market-rate project, One Mission Bay, and one affordable project, Five 88, will be completed.
- Bayer is expanding its incubator space in Mission Bay from 6,000 square feet to 36,000, meaning that several new companies should be able to move in.
- Mission Bay is undertaking the construction of two new projects: an office building on Block 33 and an office building on Block 23A. Both projects are scheduled to begin construction later in 2017.
- Kilroy Realty’s The Exchange is expected to be completed in Q3 2017. Its 680,000 square feet will contain space for both life science and office users, but 333,000 square feet will be set aside for life science users.
- Other areas of the City offer attractive opportunities as well, including the nearby Financial District and South of Market area.
Additional Data is Available Online
California Life Sciences Institute The California Life Sciences Institute (CLSI) strives to ensure that the economic and intellectual power of the region’s life sciences industry and its employees remains strong. By maintaining focus on entrepreneurship, education and career development programs, CLSI supports the foundations of innovation that have made California home to the world’s most prominent life sciences ecosystem.
The Money Tree Report The Money Tree Report is a study about Venture Capital Investment in the United States carried out collaboratively by PricewaterhouseCoopers and the National Venture Capital Association based upon data from Thomson Reuters. The report provides very current regional numbers about capital investment in key industries.
California Life Sciences Association The Life Sciences Association California Life Sciences Association (CLSA) is the leading voice for California’s life sciences sector. CLSA works closely with industry, government, academia and other stakeholders to shape public policy, drive business solutions and grow California’s life sciences innovation ecosystem. CLSA serves over 750 biotechnology, pharmaceutical, medical device, and diagnostics companies, research universities and institutes, investors and service providers. CLSA was founded in 2015 when the Bay Area Bioscience Association (BayBio) and the California Healthcare Institute (CHI) merged to create the state’s most influential life sciences advocacy and business leadership organization.