Building the Biotechnology
Sector in Houston
• Introduction
• Houston Biotechnology Atmosphere
• Why so few companies?
• Possible solutions
Building the Biotechnology
Sector in Houston
• Introduction
• Houston Biotechnology Atmosphere
• Why so few companies?
• Possible solutions
Building the Biotechnology
Sector in Houston
• Introduction
• Houston Biotechnology Atmosphere
• Why so few companies?
• Possible solutions
BioHouston Background
Non-profit 501(c)3 founded by
Houston-area research institutions
to develop the Houston region –
defined as College Station, to
The Woodlands, to Galveston
Northcut
Gillis
Mendelsohn
Regional Research Strength from
College Station to Galveston
• Texas Medical Center
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Largest medical center in the world; 42+ member institutions
$2.1 billion spent for additions to facilities from 2002-2004
800+ acres; 100+ permanent buildings
Ground broken for The University of Texas Research Park
• Texas A&M University-College Station
– Ranked 11th by NSF for total research and development
expenditures
– 5,200+ acres, including a 324-acre research park
– 2.5M+ square feet of research space
• University of Texas Medical Branch-Galveston
– Ranked 19th of 121 medical schools in NIH funding
– 84 acres; 77 major buildings
– 385k+ square feet of research space
 Massive but under-recognized research
and commercialization assets
World Class Research Institutions
Leading Medical Institutions in the U.S.
Baylor College of Medicine
Methodist Hospital
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#10 in Neurology and Neurosurgery
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#17 in Cardiology and Cardiac Surgery
#1 in Pediatric Research funding-NIH
(with TCH)
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#11 in NIH Awards to Med Schools-NIH
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#13 Research Intensive Medical Schools
The University of Texas M. D. Anderson Cancer Center
Rice University
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#1 in Nanotechnology Commercialization
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#1 in Oncology
The University of Texas Health Science Center
School of Public Health
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#5 in Gynecology
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#10 in Urology
Texas Children’s Hospital
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#10 in Ear, Nose and Throat
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#10 in Rehabilitation
#1 in Pediatric Research funding-NIH
(with BCM)
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#4 in Pediatrics
The University of Texas Medical Branch
#1 in Health Education
Texas Heart Institute
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1 of 2 Infectious Disease and Biodefense National
Laboratories
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1 of 6 Regional Centers of Excellence for Biodefense
University of Houston
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#19 in NIH Awards to Med Schools-NIH
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Source: U.S. News and World Report, 2004, NIH database, Small Times
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#9 in Cardiology and Cardiac Surgery
#2 in Health Law
Other Selected Centers of Excellence
Brown Foundation
Institute for Molecular Medicine
• Gulf Coast Consortium for
Bioinformatics
• Gulf Coast Center for
Computational Cancer Research
• John S. Dunn, Se. GCC for Chemical
Genomics
• John S. Dunn, Sr. GCC For Magnetic
Resonance
• Gulf Coast Consortium for Membrane
Biology
• Gulf Coast Consortium for Protein
Crystallography
• Gulf Coast Consortium for Theoretical
and Computational Neuroscience
Research Leadership
• Historical firsts:
– First multiple organ
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transplant
First identification of C60
First draft of the human
genome
One of two National
Biocontainment Labs
First artificial artery
First successfully cloned
companion animal
First total heart transplant
• National Recognition:
– Three Nobel laureates
– 16 members of the National
Academy of Sciences
– Two Presidential Advisors
– Hundreds of members of
national academies
• Next Generation of Leaders:
Source: Battelle Memorial Institute and the State Science
and Technology Institute study
– #2 in higher education
degrees in bioscience
– #3 for university expenditures
in biosciences
– 22,000+ biomedical students
in the Texas Medical Center
Houston region highlights
• Total annual academic research investments exceed
$1.5 billion
• 140+ life science companies
• Number of companies has doubled since 2003
• Approximately 1/3 are therapeutic, 1/3 are device and
1/3 are tools and service providers
• Recent VC investment activity in region
Best Biotech Fields for Houston to Grow
Cardiovascular
Medicine
Nanotechnology
Metabolic
Diseases
Oncology
Biodefense /
Infectious
Disease
Genomics
Genetics
Neuroscience
Texas Emerging Technology Fund
• Initiated in 2005.
• $175 million in funds available
• $52.9 million in total statewide life science grants
have been awarded or are currently under final review
by State leadership
• 9 Houston region life science companies have received
grants for $10.1 million since inception
• Texas Life Science Committee conducts extensive due
diligence (business/science/IP) on technologies and
companies before forwarding to leadership for final
approvals
$3 Billion Cancer Research Initiative
Approved in November 2007
• Established Cancer Prevention and Research Institute
of Texas
• Peer reviewed distribution of up to $300 mm in grants
per year over next decade
• Every $1 invested will require $0.50 in matching
spending by recipient organizations
• Public and private educational institutions and medical
research facilities will be eligible for grants
• First investment expected in 2009
Tanox
A 20-year and $919 Million Journey to Success
Snapshot of Success
• The Houston region is home to the 2
largest IPO’s in biotech history:
– Tanox: Acquired by Genentech for $919 million
in 2007
– Lexicon Pharmaceuticals: Ten products in
clinical pipeline
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Also…
Agennix: Developing drugs for cancer and
diabetic ulcers; in late-stage trials for NSCLC
Cyberonics: VNSTherapy for epilepsy and
depression
Introgen Therapeutics: In late-stage
development of ADVEXIN to treat head and
neck cancer
Repros Therapeutics: Lead drug Proeelex;
IND will be submitted to initiate Phase 3 trials
for Uterine Fibroid indications
Introgen
Texas Life Science Conference
• Largest investment conference in Southwestern U.S.
• 2007 Conference
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More than $6 billion in current funds in attendance
50+ company presentations
Record attendance
Texas Governor Rick Perry addressed meeting
• 2008 Conference will be held November 5-7
Why Houston?
“Nowhere in the country is there such research
infrastructure, scientific leadership, and patient
numbers in such close proximity.”
Building the Biotechnology
Sector in Houston
• Introduction
• Houston Biotechnology Atmosphere
• Why so few companies?
• Possible solutions
Why so few companies?
• Everybody wants to be “the next San Diego”.
• Institutions doing more development.
• Easier to export ideas and talent.
• Lack of experienced management.
• No soft landing for failures.
• Insufficient informed Venture Capital.
• Unfamiliar value proposition.
Building the Biotechnology
Sector in Houston
• Introduction
• Houston Biotechnology Atmosphere
• Why so few companies?
• Possible solutions
Possible solutions
• Support pump priming efforts
• Insist on regional cooperation
• Strategic recruiting
• Monitor the ETF and CPRIT $
• Philanthropic investments