It is an important year for you, Joe, as at the end of it you are stepping down as the President and CEO of Biocom California after 25 years. Could you reflect on your role in transforming Biocom California from a local association into an internationally recognized organization that has had a great impact on California’s positioning as a biohub?
Thank you for that.
Reflecting on the past 25 years, I think the key to our success has been a formula that emphasizes transferring groundbreaking science and technology into the hands of entrepreneurs on a large scale.
We have some of the world’s premier life science research universities here, which has always been a fundamental asset for California’s life sciences community. Starting with UC San Diego, which has grown tremendously in its research capabilities, we now see more advanced programs in biomedical sciences, medical devices, and effective technology transfer.
Across the state, from Los Angeles to the Bay Area, institutions like UCLA, Cedars-Sinai, Caltech, and even USC have also focused on enhancing research, incubation, and technology transfer. The Bay Area’s robust venture capital ecosystem further supports our efforts, enabling companies across California to access essential funding for growth and innovation. Additionally, we have cultivated a pipeline of talent capable of driving these companies from early-stage startups to commercialization, creating a collaborative and cooperative environment that fosters industry growth across San Diego, LA, and the Bay Area.
Can we think of California as a unified biotech and life sciences hub, rather than as three separate hubs in San Diego, Los Angeles, and the Bay Area?
Absolutely, and that is central to Biocom California’s mission. We focus on accelerating member success by unifying these clusters to enhance patient health and quality of life. While each region has unique strengths, the synergy among them is undeniable. For example, venture capital predominantly flows from the Bay Area, supporting biotech initiatives across all California hubs. Research institutions in each area contribute talent and scientific advancements.
One significant unifier has been the California Institute for Regenerative Medicine (CIRM), which started with a $3 billion investment and recently received an additional $5.5 billion to fund stem cell and regenerative medicine research. This initiative draws on talent and innovation from across California, fostering collaborative applications for research funding. However, I do wish our state government was more invested in promoting California’s life sciences, akin to Massachusetts, which has a dedicated state-funded entity for life sciences promotion. This is an area where California could improve its competitiveness.
With 2024 coming to a close, could you highlight the major life sciences achievements in California this year?
A standout achievement has been Amgen’s approval for a new lung cancer treatment—an enormous step forward. Gilead also continues to make strides in treating HIV, which exemplifies the state’s impact on healthcare advancements. These achievements remind us that success in life sciences is often a cumulative process, built on years of ongoing research and development.
California has also made substantial progress in AI-driven drug development. This year, we held the Converge conference, bringing together machine learning and AI experts with life science professionals to discuss how artificial intelligence can advance drug discovery and development. This collaboration is beginning to pay off, as AI is streamlining our processes and enhancing focus in drug research. The intersection of AI and life sciences holds incredible promise, and we are excited to see how these advances will shape the future of our industry.
Pfizer is opening an oncology R&D facility in San Diego. Does this signify a greater involvement of big pharma in San Diego’s and California’s more biotech-oriented sector?
Pfizer's recent expansion into San Diego, with a dedicated oncology research and incubation facility, marks a new phase in their long-standing presence here. Pfizer has been a part of the local biotech scene for over 25 years, initially establishing a base through the acquisition of a company developing HIV treatments. This expansion reflects Pfizer’s commitment to strengthening its oncology research in San Diego and follows similar growth trajectories by other large pharma companies like Bristol-Myers Squibb and Eli Lilly, which have also expanded their facilities and research efforts in the area.
San Diego has become an attractive hub for large pharmaceutical companies due to its strong talent pool, collaborative environment, and favorable climate for research. While some initially worried that big pharma’s presence would draw talent away from local biotech firms, it has instead contributed to a more sophisticated, diverse workforce. This influx of experienced professionals from other major hubs, especially the East Coast, has enriched San Diego’s biotech ecosystem, driving innovation and collaboration rather than stifling local growth.
There was a lot of optimism for the 2024 investment climate, yet the results have been mixed. What factors have influenced this underperformance?
At the start of the year, there was significant optimism, particularly at events like the J.P. Morgan Healthcare Conference and the Biocom California Global Partnering and Investor Conference, with expectations for decreased interest rates and inflation. However, unforeseen challenges, including heightened global conflicts, drug pricing legislation, and political instability, created headwinds for the sector. The Inflation Reduction Act, with its drug pricing provisions, impacted investment sentiment, and the uncertainty surrounding the presidential election further compounded this instability.
Despite these challenges, venture investments have remained steady, with substantial funding rounds, though more selectively awarded than in previous years. Early-stage companies are finding it challenging to secure follow-up funding, often due to unmet milestones, leading to an industry-wide correction. While this year has been tough, there is cautious optimism that some of these obstacles will subside, and the investment landscape may stabilize, setting the stage for a more robust recovery.
What can we expect at the 2025 Biocom California Partnering and Investor Conference in San Diego?
The 2025 conference will see several exciting changes, including an expansion to a three-day format, with one day dedicated to scientific panels. For instance, we are thrilled to welcome John Reed, head of research at J&J, as a keynote speaker. This focus on science will allow us to delve into critical topics like AI’s impact on drug discovery and the advancements in mRNA technology, highlighting their transformative effects on the life sciences sector.
Moreover, we anticipate broader global representation. In recent years, Biocom California has successfully built international partnerships, especially with companies from Korea, Japan, and Europe. This year, we will be hosting leaders from BPI, the German pharmaceutical association, and expect increased participation from Asian companies, reinforcing Biocom California’s global reach and commitment to fostering cross-border collaborations in life sciences.
As you approach the end of your tenure, what message would you like to convey about Biocom California and its future under the new CEO, Tim Scott?
It has been a privilege to lead Biocom California, and I am excited about the future under Tim Scott, who brings invaluable experience from founding and growing his own biotech company.
Tim understands firsthand the needs and challenges faced by biotech companies, having developed his business from a small operation to a successful acquisition. He is well-prepared to build on Biocom California’s strengths and bring fresh ideas to further enhance our programs and support for members.
I will continue as President Emeritus, focusing on our strategic global relationships, particularly in light of new regulations like the Biosecure Act, which may restrict collaborations with Chinese manufacturers. Biocom California is prepared to support members through this transition by strengthening ties with partners in regions like India and Korea. Our expanded policy efforts in Sacramento and D.C. will also play a crucial role in advocating for policies that sustain California’s biotech ecosystem and unify the industry across the state’s three major hubs.
