APPENDIX 1 BIOTECH COMPANIES in the U.S. AMGEN Biogen Chiron
APPENDIX 1 BIOTECH COMPANIES IN THE U.S.
Table A.1: Founders of Establishment for US Biotech Companies, Selected
Company Background AMGEN Founded in 1980 by a group of scientists and venture capitalists, Amgen was able to attract a prestigious scientific advisory board that included several members of the National Academy of Sciences. In autumn of that year, George B. Rathmann, Ph.D., formerly of Abbott Laboratories, was named Amgen's chairman and chief executive officer. Amgen began operation in early 1981 with a private equity placement of approximately $19 million, involving venture capital firms and two major corporations. The company chose its Thousand Oaks location to be near such major research centers as the University of California at Los Angeles, the University of California at Santa Barbara, and the California Institute of Technology. Biogen In 1978, a group of the world's most accomplished biologists gathered in Geneva, Switzerland, to discuss founding a new kind of pharmaceutical company. Each of these researchers was a leader in an emerging field of science known as genetic engineering. And they each saw the potential of harnessing the power of human genes to significantly improve human healthcare. This meeting was the genesis of Biogen. Today, more than two decades later, Biogen has established a record of success as one of the world’s premier biotechnology companies. Two of Biogen's founders -- Phillip Sharp of the Massachusetts Institute of Technology and Walter Gilbert of Harvard University -- received the Nobel Prize for their discoveries. And pioneering research by Biogen scientists has led to the development of several important new medical therapies. Celera Genomics Celera Genomics was established in May 1998 by the PE Corporation and J. Craig Venter, Ph.D., a leading genomic scientist and founder of The Institute for Genomic Research (TIGR). While at TIGR, Dr. Venter led the first successful effort to sequence an entire organism's genome, the H. influenzae bacterium. Deriving its name from the Latin word for swiftness, Celera was formed for the purpose of generating and commercializing genomic information to accelerate the understanding of biological processes. Chiron Chiron was incorporated in 1981. Chiron was founded when three prominent university professors left the biochemistry departments of the Bay Area's leading universities to start a company dedicated to developing and commercializing a new generation of diagnostic, therapeutic and vaccine products. The three founders, William Rutter, Ph.D., Edward Penhoet, Ph.D., and Pablo Valenzuela, Ph.D., shared a common vision — to use the emerging tools of biotechnology to create products that would transform the practice of medicine and improve the quality of life by diagnosing, preventing and treating human disease. Genentech Genentech, Inc. was founded in 1976 by venture capitalist Robert A. Swanson and biochemist Dr. Herbert W. Boyer, who was a professor at the department of Biochemistry & Biophysics, UCSF, and in charge of the program of genetics at that time. In the early 1970s, Boyer and geneticist Stanley Cohen pioneered a new scientific field called recombinant DNA technology. Excited by the breakthrough, Swanson placed a call to Boyer and requested a meeting. Boyer agreed to give the young entrepreneur ten minutes of his time. Swanson’s enthusiasm for the technology and his faith in its commercial
The National Innovation System of Taiwan’s Biotechnology Industry (A.1) 123 viability was contagious and the meeting extended from ten minutes to three hours: by its conclusion, Genentech was born, and then successfully commercialized the result of human growth hormone, which was found at the lab of UCSF before. Immunex In 1980, a combination of catalysts sparked the imagination of two academic research scientists, Steven Gillis and Christopher Henney -- the first major biotech company went public and federal funding for academic research was on the decline. Gillis and Henney began to speculate about private sector biotech research, and with encouragement from a lawyer acquaintance, they decided to take the plunge. After connecting with businessman Stephen Duzan, the trio launched Immunex in July of 1981. Gillis, Henney and Duzan found Immunex. Gillis and Henney continue to work full-time at the Fred Hutchinson Cancer Research Center, while working part-time building Immunex. Their mission is to produce and license diagnostic and therapeutic immunological products. Interleukin-2, a molecule Gillis had played a part in discovering when he was a student at Dartmouth, is the main focus of the company's initial research. Combining the groundbreaking research of Gillis and Henney with the business sense of Duzan, Immunex distinguished itself early on with its careful focus and discipline. The company centered its research on lymphokines and the immune system, an area of rapidly emerging interest that would ultimately have clinical implications far beyond traditional immunology. It was a unique beginning in a pioneering industry, a beginning that led to the realization of many breakthrough discoveries and long-nurtured dreams. Incyte Genomics Incyte Genomics, Inc. was incorporated in Delaware in April 1991 to acquire technology and assets from Invitron, a company focused on the identification and isolation of granule proteins. Incyte's founding stockholders and employees include certain former scientists of Invitron and its former subsidiary Ideon. Incyte was one of the first biotech companies to engage in high-throughput computer-aided gene sequencing for the purpose of identifying genes and their corresponding proteins with potential therapeutic applications. Incyte's database discovery approach compares partial human genes or protein sequences to genes or proteins of known sequence in order to predict their biological or therapeutic function. Prior to commencing its gene sequencing program, Incyte used its database discovery approach to identify specific white blood cell proteins that might have pharmaceutical utility. Note: 1. Incyte Pharmaceuticals changed its name to Incyte Genomics in March 2000. 2. Amgen announced to acquire Immunex for $16 billion in the end of 2001. Source: the websites of the companies (2000).
The National Innovation System of Taiwan’s Biotechnology Industry (A.1) 124 Table A.2: Business of US Biotech Companies, Selected
Company Business Affymetrix Affymetrix is recognized as a worldwide leader in the field of DNA chip technology. The company has developed and intends to establish its GeneChip (Registered Trademark) system as the platform of choice for acquiring, analyzing and managing complex genetic information in order to improve the diagnosis, monitoring and treatment of disease. The company's GeneChip system consists of disposable DNA probe arrays containing gene sequences on a chip, certain reagents for use with the probe arrays, a scanner and other instruments to process the probe arrays, and software to analyze and manage genetic information from the probe arrays. The company commenced commercial sales of the GeneChip system for research use in April 1996 and currently sells its products to pharmaceutical and biotechnology companies, academic research centers and clinical reference laboratories primarily in the United States and Europe. AMGEN Amgen is a global biotechnology company that discovers, develops, manufactures and markets human therapeutics based on advances in cellular and molecular biology. The company focuses its research efforts on secreted protein and small molecule human therapeutics, with particular emphasis on cancer, inflammation and neurobiology. It concentrates its development efforts on human therapeutics in the areas of hematology and oncology, bone and inflammatory disorders, and neuroendocrine and neurodegenerative diseases. The company has research facilities in the United States and Canada and has clinical development staff in the United States, the EU, Canada, Australia, Japan and the People's Republic of China. In addition to internal research and development efforts, The company has acquired certain product and technology rights and has established research and development collaborations. Biogen Biogen is a biopharmaceutical company principally engaged in the business of developing, manufacturing and marketing drugs for human health care. Biogen, currently derives revenues from sales of its AVONEX(R) (Interferon beta-1a) product for the treatment of relapsing forms of multiple sclerosis and from royalties on worldwide sales by The company's licensees of a number of products covered under patents controlled by The company. Such products include certain forms of alpha interferon, hepatitis B vaccines and hepatitis B diagnostic test kits, among others. Biogen also continues to devote significant resources to its ongoing research and development efforts. Biogen's research is focused on biological systems and processes where its scientific expertise in molecular biology, cell biology, immunology and protein chemistry can lead to a greater understanding of disease processes and, as a result, to the creation of new pharmaceuticals. The company focuses its efforts on areas where it has particular scientific strengths such as: multiple sclerosis, inflammatory diseases, cardiovascular diseases, developmental biology and gene therapy. Celera Celera Genomic's mission is to become the definitive source of genomic, proteomic and related biological and medical information. Celera uses this Genomics information for an integrated information and discovery system available to researchers in pharmaceutical, biotechnology, and academic institutions on a subscription basis. The discovery and information system includes software tools that provide the ability to view, browse and analyze this information in an integrated way to facilitate discovery. Celera also offers a variety of services to customers to assist in the analysis and interpretation of the data. Currently Celera is developing new databases and services in the emerging fields of functional genomics and proteomics. Celera information, along with related services and tools, will enable researchers throughout the world in their efforts to
The National Innovation System of Taiwan’s Biotechnology Industry (A.1) 125 improve the understanding of the biological world, the human body, and to accelerate improvements in health care. Celera derive revenues primarily from subscription fees from database customers who will retain the rights to any discoveries made using Celera databases. This policy is intended to promote use of Celera information by a wide variety of users and distinguish Celera Genomics from other companies that seek intellectual property rights to customers' discoveries based solely upon access to those companies' database information. Chiron Chiron is a biotechnology company that participates in three global Healthcare businesses: biopharmaceuticals, vaccines and blood testing. The company is applying a broad and integrated scientific approach to the Development of innovative products for preventing and treating cancer, infectious diseases and cardiovascular disease. Chiron has a strong commitment to research as an essential component of its product development effort. The company focuses its research and development activities primarily on areas in which it has particular strengths, including cancer, infectious diseases and cardiovascular diseases. An important part of The company's research and development effort is undertaken through collaborations with third parties who are able to contribute significant enabling technologies and other resources to the development and commercialization of the product, including in some cases, marketing and sales expertise. Genentech Genentech, is a leading biotechnology company using human genetic information to develop, manufacture and market pharmaceuticals that address significant unmet medical needs. Genentech commits itself to the highest standards of integrity in contributing to the best interests of patients, the medical profession and its employees, and to seeking significant returns to its stockholders based on the continued pursuit of excellent science. Science at Genentech focuses primarily on two areas of medicine: cardiology and oncology, and emerging therapies where the company has significant opportunities to fill a therapeutic void in important areas of medicine. Fourteen of the approved products in biotechnology stem from Genentech science. Genentech manufactures and markets nine protein-based pharmaceuticals, and licenses several others to other companies.. Genzyme Genzyme is a biotechnology company that develops innovative products and Services for major unmet medical needs. Genzyme currently has four operating divisions. Each of the divisions has its own outstanding series of common stock that is Intended to reflect its value and track its financial performance. - Genzyme General, which develops and markets therapeutic products and diagnostic products and services, with an emphasis on therapies for genetic diseases. - Genzyme Molecular Oncology, which is developing cancer products, with a focus on cancer vaccines and angiogenesis inhibitors. It is shaping these new therapies through the integration of its genomics, gene discovery, cell therapy, gene therapy, small molecule drug discovery, and protein therapeutic efforts. - Genzyme Surgical Products, which develops and markets a portfolio of devices, biomaterials and biotherapeutics for the cardiothoracic and general surgery markets. - Genzyme Tissue Repair, which develops and markets biological products for orthopedic injuries, such as cartilage damage, and severe burns. Gilead Sciences Gilead Sciences, Inc. is an independent biopharmaceutical company that seeks to provide accelerated solutions for patients and the people who care for them. Gilead Sciences has a broad-based focus on developing and marketing drugs to treat patients with infectious diseases, including viral infections, fungal infections and bacterial infections, and a specialized focus on cancer. Gilead
The National Innovation System of Taiwan’s Biotechnology Industry (A.1) 126 Sciences also has expertise in liposomal drug delivery technology, a technology that Gilead use to develop drugs that are safer, easier for patients to tolerate and more effective. Guilford Guilford Pharmaceuticals Inc. is a biopharmaceutical company engaged in the development and commercialization of novel products in two principal areas: (1) Pharmaceuticals targeted and controlled drug delivery systems using proprietary biodegradable polymers for the treatment of cancer and other diseases; and (2) therapeutic and diagnostic products for neurological diseases and conditions. Human Genome Human Genome Sciences, Inc. (HGS) is a pioneer in the use of genomics, the study of all human genes, and the development of new pharmaceutical products. Sciences HGS is a leader in moving these genomics-based drugs into patient-based clinical trials. In 1999, three HGS drugs were tested in patients. HGS’s goal is to become a global pharmaceutical company that discovers, develops, manufactures and sells genomics-based drugs. The mission of HGS is to treat and cure disease by bringing new gene-based medicines to patients around the world. HGS is dedicated to discovery for health. Immunex Immunex Corporation is a biopharmaceutical company that discovers, develops, manufactures and markets innovative therapeutic products for the treatment of human diseases, including cancer, infectious diseases and immunological disorders such as rheumatoid arthritis. Immunex is a leader in the scientific exploration of the human immune system. Immunex is dedicated to improve quality of life and help people enjoy longer, healthier and more productive lives. Immunex products are currently marketed in the United States and are available by prescription only. Immunex research focus has produced a pipeline of potential products that targets some of the most serious medical challenges people face, including cancer, multiple sclerosis, heart disease and asthma. Incyte Genomics Incyte is a leading provider of genomic information-based products and services. These products and services include database products, genomic data management software tools, microarray-based gene expression services, genomic reagents and related services. Incyte focuses on providing an integrated platform of information technologies designed to assist pharmaceutical and biotechnology companies and academic researchers in the understanding of disease and the discovery and development of new drugs. Incyte’s genomic databases integrate bioinformatics software with proprietary and, when appropriate, publicly available genomic information. In building the databases, Incyte utilizes high-throughput, computer-aided gene sequencing and analysis technologies to identify and characterize the expressed genes of the human genome, as well as certain animal, plant and microbial genomes. By searching Incyte’s proprietary genomic databases, customers can integrate and analyze genomic information from multiple sources in order to discover genes that may represent the basis for new biological targets, therapeutic proteins, or gene therapy, antisense or diagnostic products. The pharmaceutical and biotechnology industries use Incyte’s genomic products and services to accelerate the discovery and development of new diagnostic and therapeutic products. Incyte’s products and services can be applied to gene and target discovery, functional genomics studies, preclinical pharmacology and toxicology studies, and can aid in understanding and analyzing the results of clinical development studies. MedImmune MedImmune is a biotechnology company headquartered in Gaithersburg, Maryland with six products on the market and a diverse product development portfolio. The company is focused on using advances in immunology and other biological sciences to develop important new products that address significant medical needs in areas such as infectious diseases, immune regulation and oncology.
The National Innovation System of Taiwan’s Biotechnology Industry (A.1) 127 Millennium Pharmaceuticals is a leading biopharmaceutical company, focusing Millennium on the discovery and development of small molecule, biotherapeutic and Pharmaceuticals predictive medicine products. With the vision of providing personalized and precise medicine by integrating breakthrough therapeutic products and predictive medicine, The company strives to deliver precisely the right medicine to precisely the right patient at the right time. The company does this by incorporating large-scale genetics, genomics, high-throughput screening and informatics in an integrated science and technology platform. This innovative drug discovery platform is applied across the entire healthcare sector, from gene identification through patient management, to accelerate and transform the discovery and development of proprietary therapeutic and diagnostic products. Millennium is revolutionizing the entire drug discovery and development process to tackle the most critical issue facing the pharmaceutical industry today: productivity. By examining every step of the process, Millennium is identifying the bottlenecks in the process and addressing them. To do this, the company utilizes its own technology and aggressively in-licenses and integrates outside technologies, from genomics databases to biosensor technologies and beyond. Millennium has also created a significant bioinformatics effort to synthesize the wealth of data throughout the process and apply it to enhance efficiency. While Millennium has research efforts across most major disease states with its partners, the company has chosen to make three of those disease states its key franchise areas: oncology, inflammation and metabolic disease, each one offering significant market opportunities. Millennium continues to expand its resources and actively pursue new alliances that synergistically combine areas of expertise, leverage the platform and provide exciting product commercialization opportunities for Millennium. Pharmacopeia Pharmacopeia designs, develops, markets and supports science and technology-based products and services intended to improve and accelerate the processes of drug discovery and chemical development. The company's Drug Discovery Services Segment provides drug discovery services to pharmaceutical and biotechnology companies based on proprietary combinatorial chemistry and high throughput screening technologies. The company's Software Segment provides molecular modeling and simulation software that facilitates the discovery and development of new drug and chemical products and processes in the pharmaceutical, biotechnology, chemical, petrochemical and materials industries. In 1999, Pharmacopeia developed and began implementing a strategic plan that emphasizes the sale of products and services that enable pharmaceutical, biotechnology and broader chemical companies to discover drugs and develop chemicals more quickly and less expensively. This new strategic plan eliminates continued investment in the self-funded drug discovery projects that Pharmacopeia had been working on since 1996. The intent of this new strategic plan is to generate sustainable near term and long term revenue and profit growth while still remaining eligible for certain milestones and royalties based on past, current, and expected future drug discovery services. Pharmacyclics Pharmacyclics is a pharmaceutical company developing energy-potentiating drugs to improve radiation therapy and chemotherapy of cancer, and to enable or improve the photodynamic therapy of certain cancers and atherosclerotic cardiovascular disease. The company's products are small ring-shaped molecules, called texaphyrins, which are patented agents derived from Pharmacyclics' versatile technology platform for designing and synthesizing energy-potentiating drugs. These texaphyrins localize in cancer cells and atherosclerotic plaque, where they can be activated by forms of energy, including X-ray, chemical and light, to eliminate diseased tissue. Pharmacyclics intends to use its expertise in physics and chemistry to develop
The National Innovation System of Taiwan’s Biotechnology Industry (A.1) 128 diverse products for large potential markets, such as treatments for cancer and cardiovascular diseases and besides, chemotherapeutics and ophthalmic therapeutics. The company's products do not require new treatment methods; rather, they are intended to simplify and improve current medical practices. Pharmacyclics' business strategy is to build a network of partnerships (both academic and corporate) to develop products cost-effectively while maximizing revenue opportunities. To this end, Pharmacyclics has entered into a series of collaborative relationships that augment its research and development activities and provide manufacturing, marketing, and sales capabilities for its products. Sepracor Sepracor is a specialty pharmaceutical company with a unique strategy to develop and commercialize potentially improved versions of widely-prescribed drugs referred to as Improved Chemical Entities (ICEs™ ). Sepracor's ICE Pharmaceuticals are differentiated, proprietary, single-isomer or active-metabolite versions of currently marketed drugs. ICE Pharmaceuticals are designed to offer meaningful improvements in patient outcome through reduced side effects, increased therapeutic efficacy, or improved dosage forms. In some cases, Sepracor's ICE Pharmaceuticals may provide an opportunity for new indications. Sepracor's ICE portfolio focuses on the allergy / asthma, urology / gastroenterology and psychiatry / neurology markets. To complement its ICE pharmaceutical strategy, Sepracor is applying combinatorial chemistry techniques toward the discovery of active, lead compounds and ultimately NCEs. Sepracor plans to market its ICE Pharmaceuticals directly where its specialty sales force can significantly penetrate target markets. For drugs and markets requiring substantial field sales support and extensive marketing resources, Sepracor seeks co-promotion, co-development, and licensing arrangements with leading pharmaceutical companies. These partners provide the development and marketing resources to expand market penetration. Note: 1. Genzyme General is one division of Genzyme, and sharing the sources and infrastructure with the other three divisions within Genzyme. 2. Gilead Sciences merged with NeXstar Pharmaceuticals in the summer of 1999. 3. Incyte Pharmaceuticals changed its name to Incyte Genomics in March 2000. 4. Amgen announced to acquire Immunex for $16 billion in the end of 2001. Source: 1999 Annual Reports and the websites of the companies (2000).
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Table A.3: Size of US Biotech Companies 2003, Selected Company Year Revenues Growth R&D Growth R&D/ Employees Growth Established (Millions) Rate (Millions) Rate Revenues Rate AMGEN 1980 8,356.0 51% 1,655.4 48% 20% 12,900 28% Biogen Idec 1978 679.2 68% 233.3 131% 34% 3,727 275% Cephalon 1987 714.8 41% 170.3 33% 24% 1,646 30% Chiron 1981 1,766.4 38% 409.8 26% 23% 5,332 32% Genentech 1976 3,300.3 28% 722.0 16% 22% 6,226 40% Gilead Sciences 1987 867.9 86% 164.9 22% 19% 1,425 14% MedImmune 1988 1,054.3 24% 156.3 6% 15% 1,650 10% Sepracor 1984 344.0 44% 220.2 -10% 64% 983 20%
Average 2,135.4 44% 466.5 32% 22% 4,236 39%
1. Source: 2003 annual reports (Fiscal Year ended 31 December 2003). 2. The amount of revenues and R&D: dollars in millions. 3. The growth rate is the amount of 2003 over that of 2002. 4. Revenues includes Product Sales and the Other Revenues. Other Revenues includes the income from loyalties, license fees, collaborative agreements, research contracts and grants etc. 5. R&D includes R&D expenses, charges for in-process technology and acquired in-process R&D cost. 6. The figure shown on the column Year is when the company was established. 7. Amgen announced to acquire Immunex for $16 billion in the end of 2001. 8. Gilead Sciences merged with NeXstar Pharmaceuticals in the summer of 1999. 9. Biogen merged with IDEC Pharmaceuticals in 2003.
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Table A.4: Revenues of US Biotech Companies 2003, Selected Company Revenues Product Sales Other Revenues (Thousands) (Thousands) share (Thousands) share AMGEN 8,356,000 7,868,200 94% 487,800 6% Biogen Idec 679,183 171,561 25% 507,622 75% Cephalon 714,807 685,250 96% 29,557 4% Chiron 1,766,361 1,345,833 76% 420,528 24% Genentech 3,300,327 2,621,490 79% 678,837 21% Gilead Sciences 867,864 836,341 96% 31,523 4% MedImmune 1,054,334 992,554 94% 61,780 6% Sepracor 344,040 286,819 83% 57,221 17%
Average 2,135,365 1,851,006 87% 284,359 13%
1. Source: 2003 annual reports (Fiscal Year ended 31 December 2003). 2. Amount: dollars in thousands. 3. Revenues includes Product Sales and the Other Revenues. 4. Other Revenues includes the income from loyalties, license fees, collaborative agreements, research contracts and grants etc.
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Table A.5: Financial Data of US Biotech Companies 2004, Selected Company Price 52wk Range Market Capitalization EPS P/E (2004/3/25) (Billions) AMGEN 59.03 56.90 - 72.37 75.56B 1.69 34.93 Biogen Idec 54.63 30.01 - 59.63 18.14B -2.98 N/A Cephalon 56.66 36.92 - 60.98 3.17B 1.42 39.79 Chiron Corporation 44.77 37.12 - 57.29 8.40B 1.11 40.30 Genentech 105.28 33.80 - 113.96 55.49B 1.16 90.84 Genzyme 46.20 33.15 - 58.08 10.36B -0.28 N/A Gilead Sciences 53.34 39.76 - 70.61 11.40B -0.57 N/A MedImmune 23.35 20.77 - 42.09 5.80B 0.72 32.39 Sepracor 46.57 13.33 - 49.57 3.97B -1.61 N/A
1. Source: Nasdaq and NYSE as of 25 March 2004. 2. The unit of prices: US dollars. 3. The companies above are the leading firms in the biotechnology industry, which selected by BioSpace Bellwethers (as of 25 March 2004).
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