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Awards CURE Awards ­Bioscience Achievements Pfizer was awarded the CURE (Connecticut United for Research Excellence) Award for Excellence for its investment in multiple approaches to treating Alzheimer’s disease. Pfizer has seven Alzheimer’s ­clinical projects ongoing and ­several more programs in earlier stages of ­development at its Groton research site. The CURE New ­Operations Award was ­presented to MannKind Corp., which operates a manufacturing facility in Danbury. The facility includes custom processes for the manufacture and packing of Afrezza, the company’s new insulin ­therapy, a drug-device ­combination consisting of a pre-metered dose of insulin powder and an easy-to-use inhaler. The CURE Education Award was presented to Boehringer Ingelheim, which has funded Boehringer Ingelheim ­Science Quest, a multifaceted science ­outreach program aimed at elementary school children. The program includes a state-of-the-art mobile ­lab that will visit schools throughout Connecticut. Healthcare Reform Consumers Know Little About Healthcare Despite difficult economic times and ongoing healthcare reform, consumers’ attitudes about the U.S. healthcare ­system remain largely unchanged from 2009 to 2010, according to Deloitte’s 2010 Survey of Health Care ­Consumers. Consumers often display largely ­contradictory behavior when it comes to their healthcare and are more likely to relate to their own ­personal experience, often taking a micro view of a macro problem. n 76% of consumers grade the system a C or below. n Half believe that 50% or more of healthcare dollars are wasted. n More than half (56%) believe that waste is a result of redundant paperwork and an individual’s lack of ­responsibility. n Less than a quarter (23%) of consumers believe they understand how the healthcare system works. Jobs Report Biosciences Industry ­Experiences Growth The U.S. bioscience industry continued to score ­employment gains through 2008, the first year of the recent economic downturn, according to a study by Battelle and the Biotechnology Industry Organization (BIO). The ­Battelle/BIO State Bioscience Initiatives 2010 shows that publicly traded bioscience-related companies on the whole generated positive net growth through 2009. n U.S. employment in the bioscience sector reached 1.42 million in 2008, a gain of 19,000 U.S. bioscience ­industry jobs since 2007. n ­Employment in the sector grew 1.4% in 2008, while ­private ­sector employment declined by 0.7%. n Rapid growth in the biosciences has been fueled ­primarily by research, testing, and medical laboratories. The subsector added more than 176,000 jobs between 2001 and 2008, accounting for 9 out of every 10 new bioscience jobs created ­during this time period. n The sector continues to be a source of high-wage jobs. The average bioscience job paid $77,595 in 2008, $32,000 more than the ­average private sector job. n Each bioscience job ­generates an additional 5.8 jobs in the national economy. n 39 states, the District of Columbia, and Puerto Rico have an employment ­specialization (20% or more concentrated than the nation) in at least one of the four bioscience subsectors. Tuning in… Featured Podcasts U.S. and Global Information Security Standards in Patient Recruitment Featured Thought Leader: Roger Smith, Acurian Partnership Model for Clinical Development is Driving the Industry’s Clinical Transformation Agenda Featured Thought Leaders: Nagaraja Srivatsan, Ramana Reddy, and Krishnan Rajagopalan, Ph.D., Cognizant Clinical Delivery Alliances in Drug Development Featured Thought Leader: Tim Dietlin, INC Research Getting the Most Out of Your Cloud Computing Investment: Creating the Flexible Pharma Organization Featured Thought Leader: Matt Wallach, Veeva Systems Featured White Papers Patient Data Security: A Paramount Issue in Clinical Trial Recruitment, sponsored by Acurian Five Ways Intelligent Communications Can Transform the Life Sciences, sponsored by Avaya Partnership Model for Clinical Development is Driving the Industry’s Clinical Transformation Agenda, sponsored by Cognizant A New Approach to Outsourced Drug Development: How Sponsor-CRO Clinical Delivery Alliances Improve ­Performance, sponsored by INC Research Uncovering the Hidden Opportunity: The Power of Clinical Data Gap Analysis, sponsored by Snowfish Global Market Industry Predicted to Grow by 4% to 6% The size of the global market for pharmaceuticals is expected to grow almost $300 billion over the next five years, ­reaching $1.1 trillion in 2014, according to IMS Health. The 5% to 8% compound annual growth rate during this period reflects the impact of leading products losing patent ­protection in developed ­markets, as well as strong ­overall growth in the world’s emerging countries. Global pharmaceutical sales growth of 4% to 6% is ­expected this year, consistent with IMS’s prior forecast. In 2009, the market grew 7.0% to $837 billion, compared with a 4.8% growth rate in 2008. In its latest analysis, IMS identifies the following key ­market dynamics: n Geographic balance of the pharmaceutical market ­continues to shift toward pharmerging countries. Pharmerging markets are expected to grow at a 14% to 17% pace through 2014, while major developed ­markets will grow 3% to 6%. n The U.S. will remain the single largest market, with 3% to 6% growth expected ­annually in the next five years and reaching $360 billion to $390 billion in 2014, up from $300 billion in 2009. n Higher growth will occur in those therapy areas where there is significant unmet clinical need, high-cost ­burden of disease, and ­innovative science that can bring new treatment options to patients. In the areas of oncology, diabetes, multiple sclerosis, and HIV, annual growth is expected to exceed 10% through 2014. n Broad cuts in spending applied by public payers to reduce growth in drug ­budgets. Publicly funded health systems are under pressure to reduce growth in drug budgets ­following the global economic downturn. n Over the next five years, ­products with sales of more than $142 billion are ­expected to face generic competition. ­Collectively, the impact of patients shifting to lower-cost generics in major therapy areas such as ­cholesterol regulators, antipsychotics, and anti- ulcerants will reduce total drug spending by about $80 billion to $100 billion ­worldwide through 2014. Funding ­Environment Venture Capital Funding Slows Venture capital (VC) funding in the life-sciences sector, which includes the ­biotechnology and medical device industries, ­captured the highest ­percentage of VC ­dollars ­invested during the first quarter of 2010, according to the ­PricewaterhouseCoopers and NVCA MoneyTree Report, based on data from Thomson Reuters. Life-sciences funding for Q1 2010 totaled $1.3 ­billion in 160 deals, which ­represents 28% of all venture dollars invested and 23% of total deals during the quarter. Despite capturing the largest percentage of total ­dollars invested, life-sciences investments dropped compared with Q4 2009, when $1.8 billion was invested into 202 deals. This represents a decline of 26% in dollars and 21% in deals from Q4 2009. The first quarter of 2010 reversed an upward trend in deal activity, which had grown for three previous quarters. n For all sectors, venture ­capitalists invested $4.7­ ­billion in 681 deals in the first quarter, a decline of 9% in terms of dollars and 18% in terms of deals, compared with Q4 2009, when $5.2 ­billion was invested in 832 deals. n The investment split for the life-sciences sector in the first quarter of 2010 remained consistent with previous years. Biotech accounted for 61% of dollars with $825 million going into 99 deals. n Both early- and later-stage funding decreased in terms of dollars from the previous quarter. In Q1, later-stage funding decreased by 11%, and early-stage investments decreased by 36% from the prior quarter. n Three of the seven ­biotechnology subsegments exhibited growth in the first quarter. Industrial biotech grew from $22 million in the last ­quarter of 2009 to $81 ­million in the first quarter of 2010. n Biotechnology research grew from $19 million to $34 ­million during the most recent ­quarter while ­investment in the biotechnology/ pharmaceutical subsegment remained stable, growing 5% from Q4 2009. Financial Performance Biotech Industry Shows Resilience The global biotechnology industry was able to weather the ­continued worldwide economic turmoil and deliver a strong ­financial performance in 2009, with the world’s established biotech centers reaching profitability for the first time in history. But the gap between the haves and have nots in the industry continued to widen in 2009, posing new challenges for emerging companies in ­accessing the capital needed for R&D, according to Ernst & Young. Key financial results: n Companies in the industry’s established biotech centers of the U.S., Europe, Canada, and Australia had an aggregate net profit of $3.7 billion in 2009, an improvement from the $1.8 billion net loss in 2008. n Revenue of listed biotech companies fell by 9% to $79.1 billion in 2009 from $86.8 billion the prior year. This was due to the ­exclusion of Genentech in 2009 as a result of its acquisition by large pharmaceutical company Roche. If Genentech is excluded from both years, industry revenue would have grown by 8%. n Companies in the U.S., Europe, and Canada raised $23.2 billion in 2009, a 42% increase compared with 2008.

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