Bioscience Industry 1

Think it. Make it. Ship it.

OREGON’S LIFE SCIENCE AND BIOTECHNOLOGY INDUSTRY

The Greater Portland region is widely recognized for its

computer and electronics industry that helps drive our

medical device sector. Bolstering this strength within the

bioscience industry is our comprehensive and resolute

commitment to R&D in the biotherapeutics sector.

Combine these assets with regional qualities that attract

educated talent and foster a collaborative spirit and you

have a region poised for true innovation.

The region has a demonstrated strength in the bioscience

industry with more than 13,556 people employed at 802

establishments. In addition, our employment growth rate

of 30 percent in ten years from 2001 to 2011, outpaces

Texas, Massachusetts and California (the US economy

retracted by 2.9 percent in the same time frame).

BIOSCIENCE INDUSTRY

A hub for private sector innovation

supported by institutional research and

development—the Greater Portland

bioscience industry is poised for

unprecedented growth.

WORKFORCE TALENT

FOUNDATION FOR INNOVATION

LOW COST FOR BUSINESS

Source: BIO/Battelle State Bioscience Industry Development 2012 Report

OREGON BIOSCIENCE EMPLOYMENT GROWTH: 2001-2011

20112001

OR: 30.6%

TX: 18.5%MA: 15.1%CA: 13.0%

US: 6.4%

US Emp: -2.9%

WASHINGTON

OREGON

SKAMANIA

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COLUMBIA

PAC

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COLUMBIA RIVER

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1

1 PORT OF VANCOUVER

2 PORT OF PORTLAND

3 PDX INTERNATIONAL AIRPORT

BNSF RAILROAD

UNION PACIFIC RAILROAD

I-5

I-205

I-84

LEGEND

Bioscience Industry 2

Uniquely positioned within the Pacific Northwest, the

Greater Portland region encompasses two states, seven

counties and 25 municipalities. What that means for your

business is simple: options. Already home to globally

competitive companies like Intel, FEI, and Biotronik – and

with a gross regional product of $124 billion - Greater

Portland offers a variety of sites, cultures and assets to

meet your business needs.

WORKFORCE TALENT

Portland regional employment is highly concentrated in

STEM fields (science, technology, engineering and math),

accounting for 7.2% of metropolitan regional jobs versus

5.8% nationwide. This aligns with the industry, and will

continue to develop along with the growing bioscience

opportunities. In addition, within the bioscience industry

specifically, the region offers the necessary expertise

at competitive wages, along with the bio workforce

development and training partnerships to help companies

scale up for growth.

TALENT ATTRACTION

In looking to expand a company, the ability to attract

talent is critical. Greater Portland is a magnet for

young, diverse, well-educated workers. In 2014, more

than 4,200 net new residents over the age of 25 with a

bachelor’s degree or higher moved to the region, one

of the highest mobility rates in the nation.

RELEVANT INDUSTRY TRAINING

In cooperation with Business Oregon, the Oregon

Bioscience Association has created a unique,

customized program to help develop the next

generation of highly skilled technical and managerial

talent for the state’s bioscience industry. Designed

in cooperation with some of the largest bioscience

employers in Oregon, the program recruits

cohorts of students to receive its medical device

professional development certificates in Medical

Device Foundations and Quality Assurance. This

pioneering workforce training approach educates

mid-level professionals who have the education and

professional background but not bio-industry-specific

training such as FDA and regulatory compliance, Lean

Manufacturing, quality control, design controls, ISO

9001 and risk management.

50,000

70,000

30,000

10,000

40,000

60,000

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Total Employment Average Annual Wage

BIOSCIENCE EMPLOYMENT AND WAGES FROM COMPARATIVE US METROS

Source: Bureau of Labor Statistics, May 2013

WITH CLOSE TO 3,300 EMPLOYEES, GREATER

PORTLAND IS ONE OF THE TOP 25 REGIONS IN THE

NATION FOR EMPLOYMENT LEVELS WITHIN THE

MEDICAL DEVICE SECTOR.

– BATTELLE ANALYSIS OF BLS QCEW DATA, 2014

DOMESTIC NET MIGRATION WITH A BACHELOR’S OR HIGHER: POPULATION 25 YEARS AND OLDER

Source: US Census Bureau, 2013 American Community Survey 1-Year Estimates

AUSTIN PORTLAND SEATTLE PHOENIX S.L.C. DALLAS DENVER

4,769 4,536

3,412

1,048

-990

873 616

OREGON HEALTH & SCIENCE UNIVERSITY (OHSU)

• 1,000 research projects ongoing

• 1,100 scientists, healthcare professionals and staff

• $1.5 billion in R&D funding

Bioscience Industry 3

Agricultural

Bio-agriculture

Neutroceuticals Diana Plant Sciences

Medical foods Medolac

Biofuels

Fuel using biomass to make cellulosic ethanol Z-Chem

Drugs and Pharmaceuticals

Research Oregon Translational R&D Institute (OTRADI)

Manufacturing/Packaging Genentech

Incubator OTRADI’s OBI (OTRADI’s Bioscience Incubator)

Basic research AronaraUbiVac

Drug development Paragon Bioteck Inc.13 TherapeuticsGalena Biopharma

Medical Devices

Implantables (pacemakers, orthopedic surgical products) BiotronikAcumed

Patient monitors Welch Allyn

Biosensors TE Connectivity

Equipment ShellLabs

Wound care RevMedxSAM Medical

Research and Testing

Components Precision Wire Components

Diagnostics MolecularMDSedia Bio

Labs - Wet Labs Knight Cardiovascular Institute/OHSUKnight Cancer Institute/OHSUPortland State Business AcceleratorOTRADI’s OBI

Animal research OHSU Primate CenterYecuris

Production/Biomanufacturing AbSci

Data/Analytics Tier 7 Consulting

FOUNDATION FOR INNOVATION

The historic $1 billion Knight Cancer Challenge, a

national fund-raising campaign spearheaded by Nike

co-founder, Phil Knight, to raise funds to cure cancer, will

drive innovation and investment for several bioscience

companies that are growing this emerging industry in the

region. As the largest philanthropic effort of its kind, this

ambitious fund-raising initiative has generated international

attention for OHSU’s Knight Cancer Institute.

Bioscience Industry 4

BIOSCIENCE COLLABORATORS

Several key institutes now support the foundation for

innovation, including the following bioscience collaborators:

Oregon Health & Science University (OHSU), Oregon State University (OSU), and Portland State University (PSU) at the Collaborative Life Sciences Building (CLSB)

In close collaboration with OHSU/OSU/PSU, the

Collaborative Life Sciences Building in Portland’s South

Waterfront combines world-class labs, classrooms, lecture

halls, offices and specialized research and simulation

rooms. Researchers from various institutions come

together to solve the bioscience challenges of today,

and tomorrow. This 500,000-square-foot facility lays the

foundation for development of Oregon’s future scientists

through OSU, OHSU, and PSU academic programs and

serves as the catalyst for collaboration. This facility will be

facility will be located next to the future Knight Institute,

where more than 500 research scientists and healthcare

professionals will focus on research, advanced diagnostic

testing, ground breaking biorepositories and clinical

expertise.

Oregon Translational Research and Development Institute (OTRADI) and OTRADI Bioscience Incubator (OBI)

OTRADI, a nonprofit bioresearch institute co-funded by

the State of Oregon, works with universities in the state

to rapidly develop and commercialize new products and

spur startup company formation and growth. In June 2013,

OTRADI built out and opened the state’s first and only

bioscience-focused incubator. The OTRADI Bioscience

Incubator (OBI) provides bio startup companies with

shared scientific equipment, wet lab space, collaboration

areas, specialized lab facilities and the focused mentoring

and expertise needed to take research from the lab to the

market.

Due to high demand, the OBI recently expanded from

13,000 square feet housing six bio-startups to 17,000

square feet housing ten bio-startups. This resounding

success and ever-growing demand signals that the Greater

Portland region is poised for bioscience innovation.

Three of the 10 companies in OBI are from outside the

Portland region, and at least two of the 10 companies are

ready to move beyond the OBI Incubator into a larger and

more permanent location.

Portland State University Business Accelerator

The PSU Business Accelerator is home to more than 30

startup companies in technology, bioscience and clean

tech, including companies founded by PSU and OHSU

faculty and students. Approximately one-third of Business

Accelerator companies are in the life sciences. The PSU

Business Accelerator offers turnkey space and services to

promising high-growth companies. Resident companies

gain access to mentors, connections and a range of

structured and informal sessions such as CEO Council,

pitch-fests, brown bag topics and social networking.

They also gain access to PSU student teams and interns

working on business or engineering projects, who serve

as a talent pipeline in a competitive hiring market. The

Accelerator is located between PSU and OHSU and is

a short walk from the new Collaborative Life Sciences

Building.

LOW COST OF BUSINESS

Greater Portland is considered a regional bargain. If you

desire a West Coast location, the Portland region is a

wonderful, reasonably priced gateway to some of the

most significant global cities in the world.

COST OF LIVING

The cost of living for Greater Portland residents - lower

than Los Angeles, San Francisco, or Seattle - is a well kept

secret. Similarly, average salaries in the Greater Portland

region tend to be lower than in other West Coast metros.

The continued growth in our region’s talented workforce

suggests that skilled workers understand that their wages

go further here. The low cost of doing business is also a

highly valued benefit to employers.

GreaterPortland

San Francisco

Seattle

LosAngeles

$56,978

$74,992

$65,667

$57,27129

29

30

25

$30.96

$29.97

$56.62

$21.59

$0.61

$0.54

$1.62

$0.38

$428,500

$293,700

$557,700

$249,300

Average Commute

In minutes Price per square foot

Price persq. ft./month

Median Home Value

Class A O�ce

Industrial Median Household

IncomeIn minutes Price/sq ftPrice/sq ft

/month

Bioscience Industry 5

MODERATE TAXES

The Greater Portland region includes two states — Oregon

and Washington. This means businesses here have the

advantage of considering two distinct tax codes to

determine which state is the best fit. Whichever they end

up choosing, businesses will find that both states have

designed their tax codes to attract and retain companies.

As indicated below, both Oregon and Washington rank

in the top quarter of the nation for business-friendly tax

structure.

GLOBAL ACCESS

Well positioned at a crossroads of ocean-bound and river

shipping lanes, interstate highways, and national rail lines,

including Union Pacific and Burlington Northern Santa Fe,

Greater Portland is a global hub for export opportunities.

With five cargo carriers serving the Asia market, the Port

of Portland offers easy and direct access to overseas

shipping and receiving services.

Air service is easily accessible, with the Portland

International Airport (PDX) less than nine miles from

downtown Portland, linked directly to the city via light

rail. There are 249 non-stop daily departures, including

direct flights to New York; San Francisco; Vancouver,

BC; and Washington, DC. Daily international flights

run to Tokyo and Amsterdam. More than 15.9 million

passengers passed through PDX’s gates in 2014. Global

access through a frequently visited airport allows you to

save time and money with direct flights at lower costs.

VOICES FROM THE INDUSTRY

Bioscience firms are growing in greater Portland for several reasons, as shown the company profiles below.

BACKGROUND: Founded in 1976. Launched operations in Oregon in 2010.

EMPLOYEES IN OREGON: 400

LARRY SANDERS, VP AND GM, HILLSBORO TECHNICAL OPERATIONS:

On a skilled workforce: ”Our continued investment in the area represents the commitment we have to the Hillsboro community and Oregon, which has provided a highly skilled workforce and great business environment for our company’s growth.”

2015 STATE BUSINESS TAX CLIMATE

Source: State Business Tax Climate Index, Published October 28, 2014

VA#27

NC#16

SC#37

GA#36

FL#5

AL#28

MS#18

TN#15

KY #26

OH#44IN

#8IL

#31

MO#17

AR#39

LA #35

IA#41

MN#47

WI#43 MI

#13PA#34

NY#49

ME#33

TX#10

OK#32

KS#22

NE#29

SD#2

ND#25

MT#6

WY#1

CO#20

NM#38

AZ#23

UT#9

NV#3

ID#19

OR#12

WA#11

CA#48

AK#4

WV#21

15 Best Business Tax Climates 15 Worst Business Tax Climates

MA #24

NH#7

VT#46

HI #30

RI#45

CT#42

NJ#50DE

#14MD

#40DC

(#45)

Tokyo

Amsterdam

New York

Washington D.C.LA

Chicago

Guadalajara

PDX

Reykjavik

FrankfurtVancouver BC

San Francisco

Direct to Asian markets via flights and shipping lanes

BACKGROUND: Founded in 1917

EMPLOYEES: 2,202 in Oregon (approximately 5,000 nationwide)

SUBSIDIARIES/DIVISIONS: 6 Regional Health plan; several innovative health startups including HealthSparq, Lifemap, OmedaRx, SpendWell, Wellero, and Direct Health Solutions with divisions Enigma Health and hubbub.

MARK GANZ, PRESIDENT AND CEO:

On Talent: ”Helping people in our community live healthier lives is what we’re about, aligning well with the lifestyle and ethos of Portland and Oregon. We’ve brought on talent from many different industries, including a chief marketing officer from ESPN and a chief data officer from IBM. These are just two examples of people attracted to us because of our innovation, our cause and our base in the Portland community. The well-matched ideals of our company and this city continue to bring us smart, forward thinking individuals passionate about transforming the health care system.”

On Startups: ”We are driven to transform health care to be more person-focused and economically sustainable. With this lens we’ve incubated and invested in numerous consumer-focused Portland-based startups such as HealthSparq, Wellero and CoPatient. We believe the future of health care relies on progressive, innovative ideas that will change the way people experience health care, and these companies are helping us foster those ideas and lead the charge towards a health care transformation business climate with support from trade organizations, such as the Oregon Bioscience Association; the innovation mindset in the region; and readily available access of other senior leaders who proactively are willing to help.”

On Why Portland is a Great Place for Health Care Innovation: ”Our forefathers started the country’s first health plan almost 100 years ago in Pacific Northwest logging camps where workers came together to pool their funds in case of injury or illness. This innovative idea, and many ground breaking companies, illustrate the pioneering spirit of the region and attract entrepreneurs to launch and build new companies. The pioneering spirit is inspiring a level of innovation in the health care industry as well, advancing the transformation toward a sustainable, consumer focused healthcare economy.”

BACKGROUND: BIOTRONIK was founded in 1962 and MSEI was founded in 1979. The Oregon campus was opened in 1979.

EMPLOYEES IN OREGON: 428

JUERGEN LINDNER, GENERAL MANAGER:

On Greater Portland as an Emerging Bioscience Hub: “Still today, Micro Systems Engineering is the primary location for one of the leading companies for implantable medical electronics and continues to leverage the technology and talent infrastructure of Oregon, including its proximity to other key technology hubs on the West Coast. The organization has grown to several hundred employees with over 80% in R&D, design, engineering, and technology. The highly efficient and automated manufacturing operation is not only able to support the rapid growth of BIOTRONIK but also supports other companies in the medical device industry by offering design and manufacturing services.”

On the Local Workforce: “Oregon continues to be an attractive location for talent not only for the entire US, but also for transfers from international locations, which is critical to enhance the collaboration in a global organization. Oregon’s strength in collaboration with other biotech companies, colleges, and universities has created a great network for research, development, and ongoing training. We feel that the Greater Portland area is on track to successfully compete with other leading Biotech centers of excellence such as those in Switzerland or Germany.”

Matt Miller, VP of Business Development matt.miller@greaterportlandinc.com 503.445.8065 x109 www.greaterportlandinc.com

JOIN US

In Greater Portland, innovation is driving business. With

a lifestyle that draws a young, talented, creative and

well-educated workforce, businesses are seizing on

this opportunity and relocating or expanding here in

record numbers. Be one of them. Don’t miss the chance

to become part of a region that is pioneering new

approaches to industry. Join us.

Dennis McNannay, Executive Director dennis@oregonbio.org 503.548.4432 www.oregonbio.org