Market Information
United States

Biotechnology Sector Profile: USA (New York)

May 2002

Allison Trenholm
Business Development Officer
Canadian Consulate General in New York
1251 Avenue of the Americas
New York, NY 10020-1175
Tel.: (212) 596-1659
Fax: (212) 596-1793
E-mail: allison.trenholm@dfait-maeci.gc.ca
Internet: http://newyork.gc.ca

Market Overview

The biotechnology industry in New York State now employs 5,400 workers and has generated revenues nearing $1.9 billion1 in 2000, which included over $900 million spent on research and development (R&D). There are 89 socalled "pure" biotechnology companies, and another 265 life-sciences-related companies, in New York. Approximately one third of these biotechnology companies are focused on developing biopharmaceutical therapeutics. The remainder are involved in developing diagnostics, bio-informatics capabilities, platform technologies and drug-delivery methods. There are currently 78 products in clinical phases and 236 others in pre-clinical development, as well as a diversity of product offerings-from cell lines for drug discovery to contract chemistry capabilities.

Connecticut's biotechnology industry has seen rapid growth in the past few years. In 2001, over $4.7 billion was spent in biomedical R&D, fuelled largely by the four major international pharmaceutical companies (Bayer Corp, Boehringer Ingelheim, Bristol Myers Squibb, and Pfizer) that have R&D facilities in the state, in addition to a growing number of smaller biotechnology firms and research incubators.

Opportunities

Access to universities and their top research teams is an asset to developing the New York and Connecticut biotechnology industries. Area research facilities are eager to facilitate research partnerships, where collaboration leads to win-win business bottom lines. Canadian companies active in collaborative research may want to consider partnerships involving tri-state leading experts.

Strategic alliances with pharmaceutical or biotechnology companies in the tri-state area provide many opportunities for Canadian companies to expand and grow. A recent study reported that more than 60% of all partnerships entered into by companies based in New York were with companies outside of the region, nationally and internationally. There is an increasing push for companies to put R&D funding to work efficiently while meeting heightened product-development expectations, and Canadian companies are well suited to support this effort.

Canadian companies involved in technology development such as gene function or gene variability will be eagerly sought after for partnerships and in-licensing arrangements. Companies with capacities in arrays, bio-informatics or nanotechnologies will likely find active interest for their tools and advances. There continues to be significant interest for Canadian capacities in clinical research activity, especially considering cost advantages. Pharmaceutical firms are always on the lookout for pipeline opportunities and have shown themselves to be particularly eager to discuss commercialization of advanced-stage development products that are almost ready for market integration.

The financial capital of the world is in New York City, and proximity to this centre of activity provides local firms added leverage when competing for access to capital. There is also significant venture-capital funding in the tri-state, which is focused primarily on the life-sciences industry. The eagerness of big pharmaceutical firms to see certain products and technologies succeed has encouraged them, with their sizeable resources and cash reserves, to become more involved in the funding of smaller biotechnology-related research-oriented firms.

Other Useful Information Sources/Web Sites

New York Biotechnology Association (NYBA): http://www.nyba.org

Academic Medicines Development Corporation (AMDeC): http://www.amdec.org

Connecticut United for Research Excellence (CURE): http://www.curenet.org

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