CURE Releases 9th Annual Economic Report on Connecticut's Bioscience Industry; Solid Growth Demonstrated in 2003

Jun 03, 2004, 01:00 ET from CURE

    NEW HAVEN, Conn., June 3 /PRNewswire/ -- Bioscience continues to flourish
 in Connecticut, although the sector grew at a more modest pace in 2003 than in
 the recent past, according to data released today by CURE (Connecticut United
 for Research Excellence, Inc.), the non-profit educational and business
 support organization for bioscience in Connecticut.
     The data, collected by CURE for its Ninth Annual Economic Report, show
 spending on research and development (R&D) activities at Connecticut
 bioscience organizations continued to rise to an all-time high of $3.9 billion
 in 2003, a 5 percent increase over 2002.  Over the last five years, the
 increase amounts to 47 percent. An increase of 3 percent is projected for
     In addition, total spending by bioscience operations in Connecticut
 amounted to over $4.1 billion in 2003, an increase of 8 percent over 2002, and
 an increase of 178 percent over the last five years. An increase of 5 percent
 is projected for 2004.
     The new CURE data show the bioscience industry in Connecticut directly
 employing 17,985 people in 2003. That represents an 8 percent increase from
 the prior year and a 20 percent increase over the past five years. Employment
 is projected to remain about the same in 2004.
     The effects of employment and spending by the State's bioscience industry
 are multiplied throughout the local economy. According to an independent
 analysis based on CURE data performed by Mark A. Thompson, Ph.D., Dean of the
 School of Business at Quinnipiac University, every bioscience job in
 Connecticut supported a total of 3.1 jobs in the State in 2003. The total
 impact on the State's economy of employment in the bioscience industry was
 equivalent to approximately 55,800 jobs. The total impact of bioscience
 payroll and non-payroll spending in the State was over $6.9 billion.
     Clinical studies expenditures in Connecticut decreased 4 percent to $584.6
 million in 2003, compared with a 95 percent increase over the past five years.
 The survey also found that Connecticut bioscience R&D spending accounts for
 10% of all R&D dollars spent by the nation's pharmaceutical companies.  In
 addition, Connecticut-based pharmaceutical companies conduct an average of 35%
 of their overall worldwide research in the state.
     Connecticut laboratory space devoted to bioscience increased 6 percent to
 over 5.6 million square feet, with a 1 percent increase projected for 2004.
 Office space occupied by bioscience organizations increased 7 percent to over
 5.6 million square feet, with a 3 percent increase projected for this year.
     "These solid gains show that a vibrant bioscience culture has taken root
 in Connecticut," said Peter Farina, Ph.D., Vice President, Development of
 Boehringer Ingelheim Pharmaceuticals, Inc. and co-chair of CURE. "Our
 combination of R&D-driven pharmaceutical companies, entrepreneurial
 biotechnology firms, and major academic research centers is obviously a recipe
 for success. At the same time, nothing can be taken for granted, Connecticut
 and industry must continue to work together to nurture this hospitable
     "Connecticut policy makers are increasingly ahead of the curve," commented
 Paul R. Pescatello, President and CEO of CURE.  "Certainly the R&D tax credit
 exchange and laboratory construction financing programs are evidence of this.
 But it is evident in other actions as well.  When researchers identified a
 need for legislation concerning stem cell research, Connecticut was one of
 only a handful of states that responded.  This year the Senate passed
 legislation making Connecticut a safe haven for embryonic stem cell research.
 I'm certain the House will follow next January, making Connecticut the third
 state, along with California and New Jersey, to have passed such legislation."
     Biotechnology companies have been using Connecticut's unique R&D tax
 credit exchange program to help grow their businesses.  Emerging biotechnology
 companies exchanged unused R&D tax credits to the State of Connecticut for 65
 percent of their face value for a total reimbursement of approximately $9.7
 million for the years 2002 and 2003. During this same period, Connecticut
 biotechnology companies invested almost $540 million in R&D, over 55 times the
 amount reimbursed by the State. In its last session, the Connecticut
 legislature made the R&D tax credit exchange program a permanent feature of
 Connecticut's tax code.
     The climate for emerging bioscience companies to raise the money needed to
 finance operations prior to earning revenues on marketed products has begun to
 open up.  After a bleak 2002, Connecticut's emerging bioscience companies
 raised $185 million in public and private financing in 2003, and will beat
 that amount in 2004, having raised $273 million this year to date.
     "It is a mark of the core research excellence of our companies that all
 weathered the economic downturn and are poised for growth.  No other
 geographic bioscience cluster came through the last several years with the
 resilience of the Connecticut cluster," said Kevin Rakin, President and CEO of
 Genaissance Pharmaceuticals, Inc. and co-chair of CURE.
     CURE ( ) is a statewide coalition of over 100
 educational and research institutions, biotechnology and pharmaceutical
 companies and other supporting businesses. It is dedicated to promoting the
 growth and increasing public understanding of biomedical research and science
 in Connecticut.
     Now in its ninth year, the CURE economic report has become the recognized
 benchmark measuring the development of Connecticut's bioscience industry. The
 companies and institutions contributing to the ninth report were: 454
 Corporation, Achillion Pharmaceuticals, Inc., Agilix Corporation, Alexion
 Pharmaceuticals Inc., All Excel, Inc., Bayer HealthCare, Boehringer-Ingelheim
 Pharmaceuticals, Inc., Bristol-Myers Squibb Company, Cellular Genomics Inc.,
 CuraGen Corporation, CyVera Corporation, Farmington Pharma Development
 Corporation, Genaissance Pharmaceuticals, Inc., Hepaticus, Inc., Ikonisys
 Inc., Institutes for Pharmaceutical Discovery, LLC, L2 Diagnostics, Molecular
 Staging, Inc., Neurogen Corporation, Pfizer, Inc., PhytoCeutica, Inc., Purdue
 Pharma LP, Protein Sciences Corporation, Protometrix Inc., Rib-X
 Pharmaceuticals, Inc., Sopherion Therapeutics, Inc., University of
 Connecticut, Vion Pharmaceuticals, Inc., and Yale University
     Attached table:
      1. Operating Expenses + projection
      2. R&D expenses + projection
      3. Clinical Studies
      4. Laboratory Space + projection
      5. Office Space + projection
      6. Total FTE Employees + projection
     CURE 9th Annual Economic Report: Selected Statistics on Bioscience in
                            Year End            Year End            Year End
                              1999                2002                2003
     Operations(a)      $1,480,545,136      $3,798,276,000      $4,114,040,523
     R&D(b)             $2,645,045,136      $3,715,990,399      $3,888,898,548
     Clinical Studies(c)  $299,767,627        $611,102,340        $584,600,809
     Laboratory Space(d)     4,300,998           5,327,306           5,636,348
     Office Space(e)                             5,287,393           5,635,590
     Employees(f)               15,005              16,686              17,985
                        5-Year       1-Year      Projected     Projected
                        Growth       Growth         2004        Growth
     Operations(a)        178%          8%    $4,304,711,558       5%
     R&D(b)                47%          5%    $3,994,352,966       3%
     Clinical Studies(c)   95%         -4%
     Laboratory Space(d)   31%          6%         5,692,348       1%
     Office Space(e)                    7%         5,788,990       3%
     Employees(f)          20%          8%            18,073       0%
      (a) Total annual operating expenses of Connecticut bioscience operations.
          Figures in dollars
      (b) Total annual R&D expenditures of Connecticut bioscience operations.
          Figures in dollars.
      (c) Total annual expenditures on clinical studies conducted from
          Connecticut. Figures in dollars.
      (d) Laboratory space occupied by Connecticut bioscience operations.
          Figures in square feet.
      (e) Office space occupied by Connecticut bioscience operations. Figures
          in square feet.
      (f) Number of people employed (full-time equivalent) at Connecticut
          bioscience operations.
     Bioscience operations include biotechnology companies, pharmaceutical
 companies, and the bioscience research portion of university operations.
     Data was not collected for every category for every year.