Biotechs may be life of the party
BYLINE: JEFF MAY, STAR-LEDGER STAFF
New Jersey economic officials are gearing up for three solid days of speed-dating this week in Boston.
Their quarry: the 20,000-plus people who will attend the sprawling BIO conference, which opens today and ends Wednesday. It's the largest gathering of the year for the biotech industry, a key component of the Garden State's plans for future economic growth.
The state's biotech boosters will try to convince companies to locate in New Jersey or expand existing operations. But the prime selling opportunity has a downside - everyone wants a piece of biotech, from other states to the maturing life science markets abroad. Cutting through the clamor will be no piece of cake.
BIO is a boisterous, glad-handing event that will feature keynote speeches from the actor Michael J. Fox, a stem-cell research advocate, and Queen Noor of Jordan. There will be more than 1,900 exhibitors in the convention hall alongside Boston Harbor, and hundreds of companies ready to talk business in a honeycomb of meeting cubicles off the floor.
It is the ultimate dealmaking venue at a time when biotech is a blisteringly hot commodity. Last year, the industry's partnerships and licensing deals with major drugmakers grew to $23 billion, some 69 percent more than in 2005, according to Ernst & Young.
Biotech, which harnesses biological substances to fight disease instead of traditional chemical compounds, is also accounting for a growing share of the nation's drug pipeline. Pharmacy benefit manager Express Scripts estimates biotech drug costs will hit $99 billion by 2010, or slightly more than a quarter of total spending for prescription medicines.
New Jersey has a robust biotech industry, thanks to the commanding presence of Big Pharma here. But the state is often overshadowed by research hubs in San Francisco, San Diego and Boston.
"We understand Massachusetts and California have a bulk of activity, which is great, but so do we," said Caren Franzini, chief executive of the New Jersey Economic Development Authority, who will lead the state delegation in Boston.
This year, the state will be able to pitch Gov. Jon Corzine's Edison Innovation Fund, a package of incentives designed to lure leading scientists to the state and speed commercialization efforts for promising research. The state has also authorized $270 million for construction of stem-cell research facilities, including an institute that will be named in honor of the late actor Christopher Reeve.
"California has a lot more (stem cell research) money, but we have buildings in design now," Franzini said. "I think that's very exciting."
New Jersey will also seek to differentiate itself by running business development sessions at its pavilion on the convention floor, featuring top officials from Pfizer, Merck, Becton Dickinson and the state's research universities.
"We think it will reflect well on New Jersey," said Debbie Hart, director of the Biotech Council of New Jersey, a trade group.
The stakes are high. Besides the New Jersey group, 37 state affiliates will attend BIO this year. When Hart's organization was founded in 1994, there were only five state affiliates, she said.
International competition is also heating up. Europe represents 15 percent of overall biotech revenues, according to Ernst & Young, but is gathering strength. Markets in China, India and South Korea are growing fast.
Franzini said those challenges also represent an opportunity. Many global companies are looking for a foothold in the United States, and New Jersey is a natural place to look, she said. Last year, for example, the Danish firm Novo Nordisk chose North Brunswick as a location for a research lab.
Jeff May covers biotech and can be reached at jmay@starledger.com or (973) 392-4282.