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 (http://www.curenet.org ) 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
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
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 include biotechnology companies, pharmaceutical
companies, and the bioscience research portion of university operations.
Data was not collected for every category for every year.