BIOSCIENCE WORKFORCE TRENDS IN THE GREATER LOS ANGELES REGION

Ahmed Enany

President & CEO

Southern California Biomedical Council (SoCalBio)

enany@socalbio.org

ABOUT SOCALBIO

Southern California Biomedical Council (SoCalBio) is a nonprofit, member-supported trade association that serves the biotech, medtech, IVD and digital health communities in the six counties that comprise the Greater Los Angeles region (Los Angeles, Orange, Ventura, Santa Barbara, Riverside and San Bernardino).

SoCalBio’s programs help local firms gain access to capital, potential partners and other business services. The Council also promotes technology transfer and workforce training, while informing policy makers and the public at-large about the benefits of the region’s bioscience industry.

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SOCALBIO FACTOIDS 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. One of three CA regional life-science associations. The

others are Biocom (serving San Diego) & CLSA (serving the San Francisco Bay Area).

Private sector-supported and driven by entrepreneurs united behind a collective action agenda to Translate our region’s excellence in basic life-science research into high paying jobs.

More than 350 companies and organizations are members including biotech, medtech, Dx, and digital health firms along with allied service providers, venture investors, and research universities & hospitals.

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THE GREATER LA BIOSCIENCE INDUSTRY FUNDAMENTALS

A Healthier cluster -- albeit spatially dispersed – and is adding jobs:

Med device: Edwards Lifesciences, Medtronic Diabetes, St Jude Cardiac Rhythm Division, Biosense Webster, Masimo, and Boston Scientific Neuromodulation

Biopharma & generics: Amegn, Allergan, Baxter and Grifols

Digital health: Kareo, NantHealth, Predixion, Sentrian, Brighter, HomeHero, and TigerText

There are more than 1000 firms in the region employing about 100,000 people.

We are a medtech region with a growing (and getting healthier) biotech subsegment

E.g., Kythera Biopharma, Puma Biotechnology, Kite Pharma, Astellas Pharma, Armagen, Xenor, C3 Jian, NantCell, MannKind, Liquid Genomics

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SOCALBIO SERVES ONE OF THE TOP FIVE BIOSCIENCE INDUSTRY CLUSTERS IN THE COUNTRY

The industry is composed of very

small firms dispersed over a large

geography having limited resources

and little political clout

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SOCALBIO HELPS BIOSCIENCE COMPANIES Empowerment through Collective Action Focusing on:

Mobilizing 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 WORKFORCE ACTIVITIES

Organizes a workforce summit and community college outreach events to coordinate industry/academia relations for talent development .

Inspires creation of new industry-oriented educational programs: Keck Graduate Institute in 1995. UCLA Biomedical Engineering Department in 1977 USC Regulatory Masters program created after SoCalBio Chairman,

Alfred Mann, pledged more than $100 million to create AMI-USC to accelerate USC biomed technology development

Offers industry endorsement and guidance of training programs: Micro-assembly technician training program at College of the Canyons Biotechnology certificate at Irvine College

Mobilizes resources to fund training: WIA-funding to support bioprocessing training at LATTC DOL-funding for biomanufacturing training at LAVC

Advertises Job Openigs: SoCalBio advertises nearly 1000 open positions every year through its

web site and digital weekly newsletter

Conducts market research to identify industry talent needs

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THUMBNAIL SKETCH OF WORKFORCE NEEDS

In an effort to identify industry talent needs, SoCalBio ran a short survey in 2014 utilizing SurveyMonkey.com

Sent to executives of Greater Los Angeles bioscience establishments

Netted 57 valid responses

Survey questions can be viewed on the web at: http://socalbio.org/wordpress/wp-content/uploads/2015/10/SurveyMonkey_50809849.pdf

The following segment of presents the survey’s findings and identifies functional areas to be targeted by workforce development professionals to address industry talent needs.

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LIST OF RESPONDENTS

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Advanced Sterilization Products API Vanguard ArmaGen Technologies BCN Biosciences Biolase BionCR Development BioScreen Testing Services Bioseal BIT Source Scientific Boston Scientific Neuromodulation C3 Jian Calhoun Vision California Transplant Services Cellworks Chromologic Cianna Medical Dako Deton Corp DxTerity Diagnostics

ECA Medical Instruments Edwards Lifesciences Encode Bio Epeius Biotechnologies Genomic Pathway Gilead Sciences (Carlsbad) Gilead Sciences (San Dimas) Grifols Biologicals Inc. Holomic ImaginAb Indi Molecular Inscent Integrity Bio Intelligent Optical Systems Kinamed Kite Pharma MannKind Corp Medtronic Diabetes Modulated Imaging NanoIVD

Neumedicines Norac Pharma Oak Crest Institute of Science Prolacta Bioscience Quantimetrix RAH Consulting Group Response Genetics St. Jude Medical Stellar Biotechnologies Synedgen Systine TherOx Tissue-Grown Corp. TMJ concepts Vivoscript, Inc. Xencor YSL Bioprocess Development Zymo Research Corp

SUMMARY OF SURVEY RESULTS

The industry experienced healthy Job growth and expected to add jobs at a rate higher than that of the private sector in the Greater Los Angeles Metro Area.

25% of future hires are expected to be in the regulatory, quality and engineering categories

Because many firms are emerging pre-product ventures, nearly one of every future five hires is going to be in R&D

One of every five new jobs is likely to be in manufacturing. This is higher than the share of manufacturing of private sector jobs in the Greater Los Angeles Metro Area.

Most new jobs require college or graduate degrees. However, manufacturing, lab research and information technology offer

opportunities not requiring 4-year college degrees or higher.

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SURVEY RESULTS …. CONTINUED

Engineering, quality, regulatory affairs top the list of job categories where companies encounter difficulties filling jobs regardless of industry segment.

Biopharma respondents expressed more concerns about filling manufacturing jobs than medical device respondents.

It is a sign of concern that one third of new hires in the pharma and device sectors required relocation.

Survey respondents value training programs, if industry-vetted, but most prefer to do their own formal or informal training in-house.

The majority of firms offer internships, but mostly to college graduates and post-graduates as a way to screen job seekers for full employment.

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SURVEY RESPONDENTS BY GEOGRAPHY AND MARKET SEGMENT

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Biopharma Devices Research/Testing/Medical Labs AgBio/Industrial

Los Angeles Orange Ventura/SB Inland Empire/North SD County

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EMPLOYMENT TRENDS: ALL SEGMENTS SHOW HEALTHY GROWTH

7505

10235

453 45

2309

1322

152 30

1072 799 140 23

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Biopharma Devices Research/Testing AgBio/Industrial

Local employment Last two year hires Next two year hires # of respondants

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FUTURE HIRES BY INDUSTRY SEGMENT AND FUNCTIONAL AREA

Biopharma Devices Research/Testing AgBio/Industrial # of Future Hires %

Manufacturing 200 172 32 4 408 20%

R&D 156 184 30 7 377 19%

Regulatory/Quality 145 118 17 0 280 14%

Engineering 114 100 7 0 221 11%

Other 123 43 5 6 177 9%

Product/Process Dev. 109 47 12 2 170 8%

IT 105 29 12 1 147 7%

Supply Chain 59 65 6 1 131 6%

Lab Conduct/Skills 61 41 19 2 123 6%

Total 1072 799 140 23 2034 100%

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% OF FUTURE HIRES BY MINIMUM EDUCATIONAL REQUIREMENTS IN EACH FUNCTIONAL AREA

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Graduate Degree

4-Year Degree

2-Year Degree

Com. College Certificate

HS Diploma

# Respondents

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% OF PHARMA FUTURE HIRES BY MINIMUM EDUCATIONAL REQUIREMENTS IN EACH FUNCTIONAL AREA

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ires

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Graduate Degree

4-Year Degree

2-Year Degree

Com. College Certificate

HS Diploma

# Respondents

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% OF DEVICE FUTURE HIRES BY MINIMUM EDUCATIONAL REQUIREMENTS IN EACH FUNCTIONAL AREA

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Graduate Degree

4-Year Degree

2-Year Degree

Com. College Certificate

HS Diploma

Total Respondents–

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ENGINEERING, REGULATORY AFFAIRS AND QUALITY ASSURANCE TOP THE LIST OF JOB CATEGORIES THAT HAVE BEEN DIFFICULT TO FILL

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Difficult Average Simple # Respondents

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ENGINEERING, REGULATORY/QUALITY AND MANUFACTURING TOP THE LIST OF DIFFICULT TO FILL JOB CATEGORIES BY PHARMA COMPANIES

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Difficult Average Simple # Respondents

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ENGINEERING, REGULATORY/QUALITY, R&D AND INFORMATION TECHNOLOGY TOP THE LIST OF DIFFICULT TO FILL JOB CATEGORIES BY DEVICE COMPANIES

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Difficult Average Simple # Respondents

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% OF RECENT HIRES WITHOUT RELOCATION BY INDUSTRY SEGMENT

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10%

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30%

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Pharma Device Dx/Testing AgBio/Industrial

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SURVEY RESPONDENTS SEE VALUE IN INDUSTRY-VETTED TRAINING PROGRAMS

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0.00%

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Assist in myhiring decisions

Reduce trainingcosts

Reduceadministrative

burden

Make nodifference in

hiring decision

Increase admin.burden

Increasetraining costs

# o

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THE OVERWHELMING MAJORITY OF RESPONDENTS PREFER FORMAL OR INFORMAL IN-HOUSE TRAINING

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INTERNSHIPS ARE OFFERED BUT MOSTLY TO COLLEGE OR GRAD. STUDENTS AS A PRELUDE TO HIRING

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Collegestudents

Graduatestudents

High schoolstudents

CommunityCollege

Students

NoInternships

Offered Now

Faculty

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WHERE TO FOCUS TRAINING ACTIVITIES USING WIA RESOURCES FIRST, BE MINDFUL OF THE CHALLENGES AHEAD

Overcome industry’s reluctance to tap WIA resources for training.

Educational resources abound, but not synching well with industry.

A lot of talk about training. In reality, most of what is done is classroom teaching.

Although certificate programs are better than nothing at all, employers don’t necessarily trust them.

Bioscience industry training is on average an expensive proposition.

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WHERE TO FOCUS TRAINING ACTIVITIES USING WIA RESOURCES SECOND, THINK AND ACT REGIONALLY AND DON’T INVENT THE WHEEL

All WIBs in the Greater Los Angeles Metro Area ought to coordinate activities:

Invest in programs that are strategic in nature.

Invest in programs that are regional in scope.

Invest in sustaining existing industry-vetted programs. Examples:

Bioprocessing technician training at LAVC, Citrus College and Moorpark Community College

Industry users: Amgen, Baxtala, Grifols and ProLacta Biosciences.

Micro-assembly at College of the Canyons

Industry users: Advanced Bionics, Boston Scientific Neuromodulation, and Second Sight Medical Products.

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WHERE TO FOCUS TRAINING ACTIVITIES USING WIA RESOURCES THIRD, CREATE A BIOMANUFACTURING JOBS ACCELERATOR

The focus initially can be training bio-processing technicians for manufacturing cell therapy and protein-based products according to cGMP standards

The DOL-funded c3bc program at LAVC has all the elements needed to create a C(3) accelerator at the Van de Kamp Innovation Center: Industry training standards, Curricula and staff, Industry-grade equipment,

Industry support, and a decent track record.

Demand for entry-level bio-processing technicians is expected to be robust for the foreseeable future: Expanding companies: Amgen (Thousand Oaks), Baxtala (Los Angeles),

Grifols (Los Angeles), Prolacta (City of Industry), and Gilead (San Dimas)

Developers of biologics that are building manufacturing facilities now (Kite Biopharma in Santa Monica and El Segundo) or potentially in the future (Xencor in Monrovia, Neumedicines in Pasadena or NantCell in Culver City)

Local biologics CMOs (AURO in La Habra)

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Why an Independent Biomanufacturing Center Nimble and flexible organization.

Insulation from academic politics.

Flexibility in partnering with various community colleges and other training partners to tap resources.

Ability to tap industry support: finance, equipment & instructors

Freedom and speed in targeting national funding sources (DOL, NSF, etc.) or foundation money.

Focus can be expanded to include other elements of biomanufacturing depending on future changes in technology and market dynamics: Example: 3-D printing of drugs (Washington Post)

Center can be beneficial to other local FDA-regulated industries, such as food production and cosmeceuticals.

BIOMANUFACTURING JOBS ACCELERATOR …. CONTINUED

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WHAT IS NEXT?

The following training recommendations are generated from interviews with survey respondents and SoCalBio bioscience and digital health companies:

Emphasize upgrading skills of incumbent employees.

Tap local resources such as the USC ISU and ICT to develop virtual reality modules to help in training and reduce its cost .

Target functional areas such as:

Quality assurance and regulatory affairs

Digital skills (Big data & conformity with HIPAA & FDA).

Supply chain management.

Telemedicine equipment technicians.

3-D printing.

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SoCalBio Is your Partner in Talent Nurturing and Retention

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Thank You

Ahmed A. Enany

enany@socalbio.org

Southern California Biomedical Council

Your Success Is Our Business

www.socalbio.org

617 S. Olive St., Ste. 700, Los Angeles, CA 90014 Phn: 800-418-7079 -- Fax: 213-622-7100 -- scbc@socalbio.org