How does Biocom California support industry growth?

We have developed programs in five key areas that support our industry: advocacy in our local communities, Sacramento and Washington DC; cost-saving through our purchasing group; workforce development; fundraising; and networking.

We organize a number of events focusing on connecting earlier stage companies with potential large pharmaceutical partners and investors. Biocom’s annual Global Partnering and Investor Conference draws 500 attendees and more than 200 VCs and pharma business development leaders looking for opportunities.

Another example of a member benefit is the work done through our Biocom California Institute to meet the workforce needs of life science companies. We have fostered the development of innovative curricula at the community college level that are designed to teach individuals the skills needed to enter the biomanufacturing workforce. With recent trends pointing to onshoring many life science jobs that had been taken offshore, a ready workforce will be essential to meeting the hiring needs of our members.

Finally, we recognize the synergies that exist between the life science and tech industries and have worked to foster relationships that can enable the acceleration of therapeutic, medical device and diagnostic development. This work led to Biocom’s Converge Summit, which focuses on the intersection of life science and technology – much of it driven by AI/ML.

What makes California a powerhouse in the life sciences industry?

California is the birthplace of biotech, and the state’s industry has continued to evolve and grow in its main clusters: Los Angeles, Orange County, the Bay Area, and San Diego. Each of these clusters has distinct strengths, from the cross-pollination opportunities between tech and biotech companies in the Bay Area, to the unsung med-tech sector in Orange County, to the highly collaborative San Diego ecosystem that spawns hundreds of new companies each year.

Funding for California institutions from the National Institutes of Health and the National Science Foundation creates a launchpad for innovation, enabling the basic research discoveries that become the new technologies that drive California life sciences growth. In 2023, California received more than US$6 billion in NIH and NSF funding, the highest amount of any state in the US.

Also important to California’s success is the state’s mature venture capital community, which is investing billions of dollars every year - US$34 billion in 2023.

Today, the industry’s total economic output exceeds US$400 billion and supports 500,000 high paying direct jobs. California leads the nation in agriculture, Hollywood filmmaking, and wine production, and is third in tourism. Even combined, the output of these four well-known industries does not match the massive, vital industry that is the California life sciences sector.

How did JPM set the tone for 2025’s M&A activity?

The mood at this year’s JP Morgan conference M&A activity was electric. Three major deals were announced on just the first day: Johnson & Johnson’s purchase of Intra-Cellular Therapies, Eli Lilly’s acquisition of Scorpio Therapeutics, and GSK’s purchase of IDRK, setting the tone for a potentially big year for M&A. These deals highlight how important the entrepreneurial life science sector is to providing large pharmaceutical with innovative therapies and technologies to fill their pipeline. With an upcoming patent cliff – the top 10 drugs expected to go off patent in 2025 represent over US$25 billion in 2024 sales, and another US$400 billion over the next decade —companies will seek new technologies, driving even more M&A activity.

How does the IRA impact drug pricing and development strategies?

The IRA is prompting pharma companies to find ways to raise efficiencies during the drug development process, resulting in reduced costs. For example, in clinical trials, which are the most expensive part of drug development, companies are utilizing AI-driven platforms and other technologies to accelerate trial enrollment and identify patients faster.

Is the new administration in Washington DC going to adversely affect biotech?

Certainly tariffs, NIH funding cuts and reduction in FDA staff can have a negative effect on biotechnology, pharma and medical device development. Appropriately staffed and well-resourced federal agencies are needed to support the life science ecosystem. Tariffs on imported goods may increase manufacturing costs, disrupt supply chains, and increase prices for consumers and patients.