Neurotech Clusters 2010
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MAPPING THE BUSINESS OF NEUROSCIENCE Neurotech Clusters 2010 LEADING REGIONS IN THE GLOBAL NEUROTECHNOLOGY INDUSTRY 2010 - 2020 About Neurotechnology Industry Organization The Neurotechnology Industry Organization (NIO) is a non-profit trade association representing companies involved in neuroscience (pharmaceuticals, biologics, cell-based therapeutics, medical devices and diagnostics), brain research institutes and advocacy groups across the United States and throughout the world. NIO was founded in 2006 and has attracted over 90 members in support of our mission to “give the brain a voice.” www.neurotechindustry.org About NeuroInsights As the neurotechnology market authority, NeuroInsights helps investors, industry and society understand and profit from the rapid growth in the market for treatments of brain and nervous system illnesses. NeuroInsights provides investment reports, market analysis, industry events and strategic advisory services to large corporations, venture funds, startups, governments and financial institutions. www.neuroinsights.com REPORT AUTHORS Zack Lynch, MA Founder, Executive Director Neurotechnology Industry Organization [email protected] Corey M. McCann, MD, PhD Analyst NeuroInsights [email protected] CONTRIBUTING AUTHOR CONTRIBUTING RESEARCHER Casey Crawford Lynch, MS Tim Rasmus, MD Managing Director Neuropathologist NeuroInsights, LLC Toronto General Hospital [email protected] [email protected] The information, data and estimates in this report have been obtained from sources believed to be reliable. Every reasonable effort has been made to verify their accuracy, but accuracy cannot be guaranteed. The information and opinions contained in this report are intended for informational purposes only and are not intended as investment advice. © Copyright 2009 NeuroInsights, LLC All Rights Reserved “The Neurotechnology Industry 2009 Report” and “Neurotech Insights” and “The Neurotech Index” are trademarks of NeuroInsights, LLC. Table of Contents Executive Summary 5 The Global Neurotech Economy 7 Role of Geographic Clusters in Neurotechnology 8 Neurotechnology Industry Taxonomy 9 Neuropharmaceuticals 11 Neurodevices 12 Neurodiagnostics 13 Neurotech Cluster Methodology 14 Neurotech Region Rankings 17 Top Tier Neurotech Clusters 19 San Francisco Bay Area, CA 19 Greater Boston, MA 20 Second Tier Neurotech Clusters 22 Greater New York, NY 22 London/Cambridge, United Kingdom 23 San Diego, CA 25 LA/Irvine, CA 27 Emerging Neurotech Clusters 29 Baltimore/Washington DC 29 Greater Philadelphia, PA 30 Minneapolis, MN 31 Nascent Neurotech Clusters 33 Montreal, Canada 33 Basel/Zurich, Switzerland 33 Tel Aviv, Israel 34 Seattle, WA 36 Stockholm, Sweden 37 Tokyo, Japan 38 Regions to Watch 40 Munich, Germany 40 Raleigh/Durham, NC 40 New Haven, CT 41 Chicago, IL 41 Shanghai, China 41 Cleveland, OH 42 3 Public Policy Recommendations 44 Report Data- Breakdown by Individual Metrics 45 Top Regions for Neurotech Companies 45 Top Regions for Private Neurotech Companies 46 Top Regions for Public Neurotech Companies 47 Top Regions for Neuropharmaceutical Companies 48 Top Regions for Neurodevice Companies 50 Top Regions for Neurodiagnostic Companies 52 Top Regions for Neurotech Risk Capital 53 Top Regions for Neurotech Infrastructure 55 Neurotech Education 56 Neurotech Healthcare 58 Neurotech Research 63 Neurotech in Big Pharma 66 Big Pharma Neurotechnology Rankings 67 Top Regions for Big Pharma Operations 68 Top Regions for Big Pharma Research 68 Company Summaries 69 Resources 90 About the Report Authors 91 4 Executive Summary Big economic payoffs will accrue to communities that successfully nurture the neurotechnology industry. The close collaboration of knowledge-intensive institutions, investors, businesses and workers fosters high-quality job creation, influx of investment capital and more robust economic growth. Neurotechnology represents the largest untapped medical market, and there are numerous opportunities available to regions that can leverage the dramatic growth of neurotech. Given the promise of new treatments, coupled with a patient population of over 2 billion people who suffer from a brain-related illness, neurotechnology has become a leading recipient of life science venture funding worldwide. Neurotechnology today is a truly a global industry with companies and cutting-edge research in the U.S., Europe, and Asia. As a nearly a $150-billion-a-year industry, neurotechnology, includes over 800 public and private organizations researching, developing and marketing pharmaceuticals, biologics, medical devices, as well as diagnostic and surgical equipment for the treatment of neurological, psychiatric illness and nervous system injuries.1 Given its size and growth trajectory, neurotechnology will play an important role in regional economic development in the coming decades. Brain-related illness generates more healthcare related costs and lost income than any other area of health: an estimated $2.0 trillion annually worldwide and $1.3 trillion annually in the U.S. Neurotechnology companies face fundamentally different investment requirements, research and development challenges, regulatory milestones and social drivers that set them apart from other life science and health care companies. For example, delivering therapeutics to the brain requires different techniques and technologies than is required for other organs such as the heart or kidney. In addition to the race for discovering more effective neurotherapeutics, there is another race underway: one that will determine where the primary geographic locations of the neurotech 1 The Neurotechnology Industry 2009 Report: Drugs, Devices and Diagnostics for the Brain and Nervous System, Market Analysis and Strategic Investment Guide of the Global Neurological Disease and Psychiatric Illness Markets, published by NeuroInsights, LLC, May 2009. www.neuroinsights.com 5 industry reside and prosper. The economic outcomes of the formation and growth of these neurotechnology clusters will have long lasting implications on employment, infrastructure development, and regional competitiveness. The 21st century race to be a leading cluster for neurotech has many regional entries from the U.S. and around the world. Eight of the nine leading neurotech clusters are within the U.S. Many organizations exist with ties to the neurotechnology industry; in this report, over 1400 individual entities were catalogued, assigned geographies and classified according to NeuroInsights neurotechnology industry taxonomy (see page 9). Regions across the globe were evaluated according to the number of companies, access to risk capital and neurotechnology infrastructure. The two Top Tier Clusters are the Greater San Francisco Bay Area and the Greater Boston Area. These two regions represent the geographic centers of neurotechnology innovation, growth and development. The four Second Tier Clusters are New York/New Jersey, London/Cambridge, San Diego and Los Angeles/Irvine exhibit all of the necessary ingredients for significant innovation and growth in neurotechnology although they are less developed than the top tier clusters. The three Emerging Clusters are Baltimore, Philadelphia, and Minneapolis. Each posses significant resources and are poised for expansion in the years to come. Several other regions are also on the radar and while not yet clusters, will provide a significant proportion of the neurotechnology innovation in the years to come. These regions include our Nascent Clusters (Montreal, Basel/Zurich, Tel Aviv, Seattle, Stockholm, Tokyo) as well as our Regions to Watch (Munich, New Haven, Chicago, Shanghai, Raleigh/Durham, and Cleveland). Data gathered for the report also reveals several other interesting regional trends. New York/New Jersey is the leading region for public neurotechnology companies. Boston MA and Baltimore/DC are the leading regions for neurotechnology infrastructure based on strong graduate programs and hospital rankings in neuroscience related areas. The San Francisco Bay Area, Minneapolis, MN and Cleveland, OH are major centers for neurodevice development. 6 The Global Neurotech Economy Information provided from “The Neurotechnology Industry 2009 Report: Drugs, Devices and Diagnostics for the Brain and Nervous System” published by NeuroInsights, San Francisco. Copyright Reminder: Cite the NeuroInsights report if any of below data are used in any way Market Overview The neurotechnology industry includes companies researching, developing and marketing pharmaceuticals, biologics, cell-based therapeutics and medical devices, as well as diagnostic and surgical equipment for the treatment of neurological diseases, nervous system ailments and psychiatric illnesses. The global economic burden of brain-related illnesses has eclipsed $2 trillion a year. The estimated US economic burden of brain-related illnesses exceeds $1.3 trillion. Neurotechnology addresses the largest unmet medical market: 2 billion people worldwide, including nearly 100 million in North America. Industry Overview Over 850 companies were involved in the neurotechnology industry in 2008. In 2008, neurotech companies generated revenues of $144.5 billion with 9.0% growth The neurotechnology industry has three sectors: – Neuropharmaceuticals with revenues of $121.6 billion and 9.3% annual growth – Neurodevices with revenues of $6.1 billion and 18.6% annual growth – Neurodiagnostics with revenues of $16.8 billion and 3.7% annual growth Venture Financing In 2008, venture capital