Biowatch Life Sciences Life Cycle
While medicine, is about saving lives, it is also a huge business. From the 24 health care companies in Boston that employ 30% (70.000) people of the labor force to the fact that each life science job supports five (5)
additional jobs in other sectors. Centered around MIT and the area's world-class hospitals, the real estate decisions of life science companies run contrary to those of most office-using tenants. Unlike professional
service companies that have become increasingly focused on pace efficiency and shrinking their footprints, many successful life science companies are focused on rapid expansion. Paired with significant acquisition activity, it
becomes easy to see how lab space has become scarce and expensive.
- Majority of trials target top 6 chronic diseases: 1) Diabetes; 2) Asthma; 3) Stroke; 4) Cancer; 5) Heart disease; 6) Mental illness.
According to US News and World Report, of the top 100 places where clinical trials are conducted: 1) #1 = Harvard Medical School; 2) #34 - BU School of Medicine; 3) #51 = Tufts University School of Medicine;
4) #53 = UMASS-Worcester School of Medicine.
- It takes 10-15 years to bring a new drug to patients, 7 of those years are devoted to clinical trials.
- Startups are born in Cambridge and grow until they're acquired or relocate.
- Startup enters pre-clinical testing for a biological compound.
- Begin clinical trials.
- Stiff competition. Nearly all breakthrough medicines being approved already have competitors by Phase III clinical testing.
- Enter phase III: Secure venture capital funding.
- Of the drug candidates reaching phase III trials, about 1/3 will fail.
- VC Investment Rule of 3's: Phase III drug and target a 300% return in 3 years.
- Only 5 out of 5.000 compounds that enter preclinical trials will be tested on humans.
- Only 1 of the 5 compounds tested on people will receive FDA approval.
- Submit for FDA approval.
- The FDA is normally given 10 months to review new drugs.
- The average time a medicine is the only drug available in its therapeutic class has declined to less than 2 years.
- Your drug has been approved!
- When blockbuster drugs get FDA approval, companies expand their footprints by 100%.
- Map key (Keys: Big pharma; Universities; Startup biotech companies; Hospitals) (map): 1) Belmont; 2) Watertown; 3) Cambridge; 4) Brookline; 5) Brighton; 6) Allston; 7) Middlesex county; 8) Somerville; 9) Everett;
10) Chelsea; 11) Charlestown; 12) East Boston; 13) South Boston; 14) North end; 15) Back Bay; 16) Norfolk county; 17) Suffolk county; 18) Etc.
Cassidy Turley - Commercial Real Estate Services | Cassidy Turley | One International Place, Boston MA | Twitter: @CassidyTurleyMA | 617.279.4555 | www.cassidyTurley.com/Boston.
Sources: Tufts center for Study of Drug Development; Cambridge Community Development; National Institutes of Health; American Hospital Association; Pharmaceutical Research and Manufacturers of America
(PARMA); Battelle Technology Partnership Practice.