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A brief presentation on some of the advantages and benefits of membership in SoCalBio
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SoCalBio Open HouseWelcome
July 23, 2010
Wilshire Grand Hotel
Los Angeles (CA)
AgendaAgenda
1. BIO/SoCalBio Introduction2. Round I of vendor presentations 3. Networking and visiting vendor displays 4. Round II of vendor presentations 5. What is next on the SoCalBio Group Purchasing
Committee's agenda 6. Presentation of E&Y's "Beyond Borders" report 7. Meeting adjourns at 12:30
Who We Are
www.socalbio.org
• The Southern California Biomedical Council (SoCalBio) is a trade association serving the biotech and medical device industries in Los Angeles, Orange County and adjacent communities
SoCalBio Background• Built with support from Rebuild LA (RLA)• Incorporated in December 1995• Chartered as a (C)6, non-profit trade association• Became fully functional by mid-1997• SoCalBio is one of three CA regional life-science
associations. The others are Biocom (serving San Diego) & BayBio (serving the San Francisco Bay Area)
• Recent Merger of LINC into SoCalBio enhances access to the Orange County community
• SoCalBio is driven by entrepreneurs united behind a collective action agenda to – Translate our region’s excellence in basic life-science research into high
paying jobs.– Build on local assets to sustain critical mass in biocommerce– Make our region competitive in the “knowledge economy”
Los Angeles/Orange County Region Has a Well Established Life-Science Industry
Source: State Bioscience Initiatives 2010, Battelle Technology Partnership
• Overall, the Los Angeles Metro Region (Los Angeles and Orange Counties) is specialized across non-clinical life-science industry, with about 88,000 workers across over 900 firms in 2008.
SoCalBio Organization• Member-Supported:
– SoCalBio has 250+ corporate members … and growing.– Membership includes device and biotech companies, universities and
research hospitals, and dedicated service providers.– The majority is comprised of emerging life-science firms.– Membership extends from Santa Monica (e.g., Agensys) in the west
to the Inland Empire (e.g., Cardinal Health) in the east and from Valencia (e.g., MannKind) in the north to San Clemente the south (e.g., Reshape Medical).
– Revenues are made of membership dues and sponsorship of events.
• Volunteer-Driven:– Transparent organization.– Action through committees staffed by volunteers from member
organizations.– Governed by a board composed of 20 directors – Chaired by well-known biomed entrepreneur, Alfred E. Mann
SoCalBio Board of DirectorsElected Officers• Alfred E. Mann, Chairman, MannKind Corporation (Chair)• Robert Greenberg, M.D., Ph.D., President, Second Sight (Vice Chair)• Robert Berliner, Of Counsel, Berliner & Associates (Treasurer)• Michael Wise, Partner, Perkins Coie (Secretary)
Board Members at Large• George Ayoub, President & CEO, One Lambda• Bruce Blomstrom, Board Member, Pasadena Angels• Kenneth Charhut, President & CEO, Orqis Medical• Ed Ellsworth, Director Corporate Alliances,
Primary Care Diagnostics, Beckman Coulter• Don Ferrera, Partner, Ernst & Young• Gary Fujii, Ph.D., President & CEO, Molecular Express• Mick Gallagher, President, LS Technologies• David Hankin, CEO, Alfred Mann Foundation
SoCalBio Board Members .. Continued• Robert Hovee, President, RAH Consulting Group• Aya Jakobovits, Ph.D., Sr VP & CSO, Agensys• Jolene Koester, Ph.D., President, CSUN• Jonathan Lasch, Ph.D., Director, AMI - USC• Goran Matijasevic, Ph.D., Executive Director, UCI Chief Executive
Roundtable • Amit Munshi, Chief Business Officer, Kythera Biopharmaceuticals• Pankaj Singhal, Ph.D., COO, Genmark Diagnostics• Charles Troe, Managing Director, West Ridge Associates• Allan Wolfe, M.D., Retired Venture capitalist• Willie Zuniga, President, Grifols Biologicals
Executive Officer
• Ahmed A. Enany, President and CEO
SoCalBio Action Focus• Help Members Mobilize Resources Effectively
– Finance Capital– Intellectual Capital– Human Capital
• Fostering a Synergistic Eco-system– Research Parks– Partnerships – Networking
• Advocacy & Building Social Support– Putting Industry needs on the priority list of local
governments– Industry now perceived as an important pillar of
growth
SoCalBio Value Proposition
• Smart way of doing business– Managing uncertainties through creation of an
information-rich environment.– Business opportunities through networking.– Competitiveness through pooling resources.
• Empowerment through collective action– In the knowledge economy, no firm is an island onto itself.– New industries benefit from collective action to create the
conditions of their reproduction.– The biocommerce universe is populated by many small
firms that can benefit from collaboration.
Group Purchasing Program Highlights• Date started: 2006• Number of vendors: 21 • Number of SoCalBio users in 2010: 66 companies• 2010 $ size of transactions: $8.2 million +• 2009 - 2010 growth: ~ 13%• Done for the most part in collaboration with the Biotechnology
Industry Organization (BIO)• SoCalBio is currently one of the top five BIO affiliates in terms of
revenues generated • SoCalBio has moved into the top 10 in terms of BIO Business
Solutions contract utilization
Biotechnology Industry Organization (BIO)Biotechnology Industry Organization (BIO)
Founded: 1993Tax Status: Non-profit trade associationCEO: James C. GreenwoodChairman: Stephen A. Sherwin, MD,
Chairman, Ceregene, Inc.Headquarters: Washington, DCStaff: 180Members: More than 1,200 organizations
BIO OverviewBIO Overview
• Policy and advocacy at the federal, state and international levels on issues affecting the industry
• Communications services that disseminate information about the benefits of biotechnology
• Produces industry-leading investor and partnering meetings held around the world
• Investor relations and business development intelligence
• BIO Business Solutions discounts for a variety of goods and services
What is BIO Business SolutionsWhat is BIO Business SolutionsSMSM?? • Cost-savings/affinity program for member companies• “Cut deals” and partners with industry leading service providers to
bring discounts and other benefits to member companies on products & services
• Originally designed for small companies; used by companies of all sizes
• Partner with state and regional biotech associations (“Affiliates”) to offer the same cost-savings benefits to their member companies
• Revenue to BIO and Affiliates• Measurable economic benefit: membership recruitment &
retention (reinforces, sometimes justifies, value of mbrshp)• Deeper reach into member companies’ organization• Affiliate collaboration & support
Member Company: Why Participate?Member Company: Why Participate?
• Savings on products and services• No experienced purchasing/sourcing professional
(small companies)• Time savings (pre-established pricing & terms)• Initial and ongoing due diligence
• Competitive bid (RFP) and contract negotiations
• Ongoing contract enhancements• Support of BIO and Participating Affiliates
• Non-dues revenue
38 Endorsing Affiliates38 Endorsing AffiliatesAlabama – Biotechnology Association of AlabamaArizona – Arizona BioIndustry AssociationCalifornia (Bay Area) – BayBio California (Los Angeles) – Southern California
Biomedical CouncilCalifornia (San Diego) – BIOCOM Colorado – Colorado BioScience AssociationDelaware – Delaware BioScience AssociationFlorida – BioFlorida Georgia – Georgia BioHawaii – Hawaii Science & Technology CouncilIllinois – Illinois Biotechnology Industry
OrganizationIndiana – Indiana Health Industry ForumKansas – Kansas Bioscience OrganizationKentucky – Kentucky BioAlliance Maine – Biotechnology Association of MaineMaryland – Technology Council of MarylandMassachusetts – MassBioMichigan – MichBio Minnesota – LifeScience Alley
Missouri – Missouri Biotechnology Association Montana – Montana Bioscience AllianceNebraska – Bio Nebraska Life Sciences Association New Jersey – BioNJ New Mexico – New Mexico Biotechnology &
Biomedical Association New York – New York Biotechnology Association North Carolina – North Carolina Biosciences
Organization Ohio – BioOhio Oregon – Oregon Biosciences AssociationRhode Island – BioGroup of Tech CollectiveSouth Carolina – Palmetto Biotechnology Alliance South Dakota – South Dakota Biotech Association Tennessee – Tennessee Biotechnology AssociationTexas – Texas Healthcare and Bioscience Institute Texas – BioMed SA Utah – Utah Technology CouncilVirginia – Virginia Biotechnology AssociationWashington – Washington Biotechnology &
Biomedical AssociationWisconsin – BioForward
2004 – 2009Program UtilizationProgram Utilization
Total UtilizationTotal Utilization
Compound Annual Growth Rate: 18.8%
Average of 1.4 contracts per company in 2008
Compound Annual Growth Rate: 23.7%
Total SalesTotal Sales
Utilization By StateUtilization By StateTop 12 StatesTop 12 States
Benefits of PartneringBenefits of Partnering
BIO•Access to BIO nonmembers
•Increases total spend volume
•Ability to leverage better deals
•Support Affiliates’ mission
Affiliate•Piggyback on national program
•Established contracts; requires few resources, time & expenses
• Supports membership recruitment & retention
• Additional, measurable benefit
• “Deeper” relationships
Program Function and Eligibility• The Group Purchasing Program is offered as a benefit to
member companies to help in reducing the burn rate and cutting the cost of doing business
• To be eligible, the interested company must be a member of SoCalBio and/or BIO
• Participation in the program is voluntary• Program generates significant savings to participating
companies and, in some instances, company employees• Participating companies would be able to track purchases and
calculate the savings generated• Savings exceed any membership dues paid to SoCalBio
SoCalBio Group Purchasing Committee
• Program is managed by a committee of volunteers from SoCalBio member companies.
• Committee functions include: – Working with BIO on executing group purchasing contracts in
SoCalBio territory covering Los Angeles and Orange Counties, the Inland Empire and Gold Coast communities
– Overseeing program performance– Screening and selecting new vendors– Marketing the program– Trouble-shooting
Committee Members• Leadership
– Pankaj Singhal, Ph.D., COO, Genmark Diagnostics(Chair)– Marina Kreculj, Sr. Purchasing Manager, Agensys (Vice Chair)– Haskel Joseph, Director of Procurement, Abraxis Bioscience (Vice Chair)
• Members at Large– Richard Cupp, Purchasing & Distribution Manager, HemaCare Corp.– Ranil Fernandez, VP of Operations, Bioscreen Testing Services– Karen Mayo, Sr. VP, LA BioMed– Matthew Pfeffer, CFO, MannKind Corp.– Richard Tamaki, COO, Molecular Express– Howard Wilson, Director of Planning and Procurement, Los Angeles (CA),
Siemens Medical Solutions
Group Purchasing Vendors
Vendors Added Recently Just by SoCalBio
Iron Mountain …………………….. Document storageCaine & Weiner ……………………. Debt recovery servicesGlobal Language Solutions …… Translation servicesDiversified Alarms ………………… Security systems for labsAT Conference ……………………. . Web and phone conferencingImage 2000 ………………………….. Document imaging solutionsCalifornia Litho Arts ……………… Offset commercial lithography
We will survey the membership to identify priorities and other vendors to be considered for inclusion in the program
$Mill
ion
Volume of Business, 2006-2010
31
Companies Utilizing Contracts, 2006-2010
32
Times Contracts Utilized, 2006-2010
33
1. Increase number of contracts per company ratio from 1.50 to 2.00
2. Outreach to new contract users to expand their use of other contracts
3. Focus on underperforming BIO Business Solutions Partners
4. Add noncompetitive contracts to compliment BIO Business Solutions portfolio
SoCalBio-BIO Business Solutions: 2010/2011 Goals
Today’s meeting is designed to encourage more SoCalBio member companies to sign up and increase adoption
Thank You
Ahmed A. EnanyAhmed A. [email protected]@socalbio.org
Southern California Biomedical CouncilSouthern California Biomedical CouncilYour Success Is Our BusinessYour Success Is Our Business
www.socalbio.orgLos Angeles Office:
444 S. Flower St., 34th Fl.Los Angeles, CA 90071Phn: 213-236-4890Fax: 213-622-7100
Orange County Office:
2144 Michelson DriveIrvine, CA 92612Phn: 949-435-7647