The Texas Biotechnology Industry

2013

www.TexasWideOpenForBusiness.com

Office of the Governor | Economic Development & Tourism

Contents
Overview Medical Devices... 2 7

Pharmaceuticals 11 Biomedical Research. 17 Agricultural & Animal Biotech 27 Environmental Tech & Biofuels. 29

Texas at the BIO International Convention

The State of Texas and the Texas Healthcare and Bioscience Institute, an industry advocacy group, work to promote the advancement of the states biotechnology industry by exhibiting at the annual Biotechnology Industry Organization (BIO) International Convention. A Texas delegation of government officials, community representatives, and industry leaders hosts a booth and meets with biotech business leaders from around the world.
Texas Gov. Rick Perry at 2012 BIO International Convention in Boston

Texas Biotech Headlines

Alcon Laboratories begins $15 million expansion at multiple Fort Worth facilities
See Page 12

Allergan installs new production line at Waco, TX, pharmaceutical plant, expands local workforce
See Page 13

Merit Medical breaks ground on $14 M plant in Pearland, TX

See Page 7

Texas ranks #2 for employment of life and physical scientists nationwide

Medical device firm Greatbatch relocates HQ from New York to Frisco, Texas

Texas public institutions award over 50,600 biotech-related degrees from 20092012
See Page 18

See Page 3

See Page 8

Texas A&M partners with GlaxoSmithKline to lead one of three national biodefense labs
See Page 6

Fort Worths Healthpoint Biotherapeutics purchased by British medical device giant Smith & Nephew
See Page 13

Biotechnology in Texas
The Biotechnology Industry
As home to over 3,500 biotechnology manufacturing and R&D firms, Texas is one of the leading biotech states in the country. More than 89,600 workers are employed in biotech-related sectors in Texas, and dozens of global biotech companies, such as Novartis, Abbott, and Medtronic, have major operations in the state. A concentration of highly trained biotech workers, multiple top-tier research institutions, and a top-ranked business climate all strengthen the states status as a biotechnology leader.

iotechnology is technology based on biology which harnesses cellular and molecular processes to develop products that help improve the health of humans and the planet. People have used the biological processes of microorganisms for more than 6,000 years to make and preserve food products. Modern biotech provides breakthrough tools to combat diseases, increase crop yields, and develop cleaner energy sources. Because of the breadth of biotechnology activities, the field actually encompasses many related industries, from medical, to chemical, to agricultural. Within the North American Industry Classification System (NAICS), the federal standard for classifying businesses, biotechnology spreads across the ten subsectors listed below.

Number of biotech workers in Texas:

89,610

In 2011, approximately one out of every 15 U.S. biotechnology establishments was in Texas, according to the U.S. Bureau of Labor Statistics (BLS). Irvingbased Kimberly Clark and Dallas-based Celanese, both on the 2012 Fortune 1000 list, are among the largest biotech-related companies headquartered in the state. The total economic impact of the biotechnology industry in Texas in 2009 was estimated at $75 billion, according to the Texas Healthcare & Bioscience Institute, an industry association. Additionally, for every biotechnology job created, another 2.3 jobs were created elsewhere in the Texas economy.

Biotechnology Subsectors
Research and Development in Biotechnology Research and Development in Physical, Engineering, and Life Sciences Pharmaceutical and Medicine Manufacturing Medical Equipment and Supplies Manufacturing Electromedical Apparatus Manufacturing Analytical Laboratory Instruments Manufacturing Medical and Diagnostic Labs Testing Laboratories Pesticides, Fertilizer & Other Agricultural Chemical Manufacturing Other Basic Organic Chemical Manufacturing

OVERVIEW

Top Life Sciences Companies in Texas

Selected firms with corporate management, research, or manufacturing facilities in the state

Sources: D&B, US FDA, company websites

OVERVIEW

Texas Biotech Workforce

Texas is home to over 3,500 firms involved in biotechnology-related manufacturing, scientific research, and laboratory analysis. These firms employ more than 89,600 workers at an average annual salary of nearly $73,400. The table on page 4 provides a snapshot of the Texas biotechnology industry as of third quarter (Q3) 2012. The state has seen overall increases in the number of biotechnology firms and employment as well as a slight decrease in average annual wages since a year prior, in Q3 2011. In 2010, Texas ranked No. 2 among all U.S. states for the number of life and physical scientists employed, with 48,850, according to the National Science Foundation (NSF). Additionally, in 2008, Texas ranked No. 3 nationally for employed science, engineering, and health doctorate holders, with 39,900, according to the NSF.

Texas Biotech-Related Employment 5-Year Trends

25,000

20,000

Employment

15,000

10,000

5,000

2008

2009

2010

2011

2012

Source: Texas Workforce Commission Private sector employment only. Data from third quarter of each year.

OVERVIEW

In Q3 2012, 37% of Texas biotech-related workers were engaged in medical and testing labs (NAICS 6215 and 54138), 23% in scientific R&D (NAICS 541711 and 541712), 17% in devices and equipment manufacturing (NAICS 334510, 334516, and 3391), 12% in agricultural and other basic organic chemical manufacturing (NAICS 32519 and 3253), and 11% in pharmaceutical and medicine manufacturing (NAICS 3254). From Q3 2008 to Q3 2012, the most recent five years of available data, biotechnology-related employment in Texas decreased almost 1% (see graph on previous page). The medical and diagnostic labs segment saw continuous employment increases each year during that period with almost 10% total growth, while testing labs experienced the greatest overall employment increases, growing 18.6% between 2008 and 2012.

Texas Biotech Employment

by Sector

Source: Texas Workforce Commission

Biotechnology Employment in Texas

Third Quarter 2012
Sector (Industry Code)
Medical and Diagnostic Labs (6215) R&D in Physical, Engineering, and Life Sciences (541712) Testing Laboratories (54138) Medical Equipment and Supplies Manufacturing (3391) Pharmaceutical and Medicine Manufacturing (3254) Other Basic Organic Chemical Manufacturing (32519) R&D in Biotechnology (541711) Pesticides, Fertilizer, and Other Agricultural Chemical Mfg. (3253) Electromedical Apparatus Manufacturing (334510) Analytical Laboratory Instruments Manufacturing (334516) TOTALS

Employees
18,387 15,792 15,245 11,496 10,013 7,416 4,613 3,079 2,054 1,515 89,610

Firms
822 609 746 701 119 83 314 80 51 31 3,556

Average Annual Wage

$55,172 $83,668 $62,712 $49,816 $100,308 $105,820 $89,908 $76,024 $79,040 $76,908 $73,443

Source: Texas Workforce Commission

OVERVIEW

State Government Initiatives

Business Incentive Programs
In 2003, the Texas Legislature created the $295 million Texas Enterprise Fund (TEF), a deal closing fund created to attract businesses and new jobs to Texas. The Legislature reauthorized the TEF most recently in 2011. As of January 2013, the TEF has awarded over $98.1 million to biotechnology-related projects. The table on page 6 details these projects and the 11,451 jobs they have committed to create. In 2005, the Texas Legislature founded the $200 million Texas Emerging Technology Fund (TETF) to promote the commercialization of technological innovations across multiple industries, including biotechnology. The TETF was reauthorized most recently in 2011. To date, the fund has invested $277.9 million into biotechnology-related deals, with $127 million going to commercialize startup companies and $150.9 million awarded to universities and related consortiums. For a full list of TETF biotech deals, see page 31.

$1.4 billion
Amount invested by venture capital firms from 2007-2012 in 161 Texas biotech and medical device deals. (PricewaterhouseCoopers)

The Texas Emerging Technology Fund has invested $278 million in more than 100 biotech deals

closely align high school curricula with admissions requirements for competitive colleges. Under the initiative, 51 T-STEM Academies have been created, serving approximately 15,000 Texas students annually. For more details on biotech-related education, see pages 17-26.

Stem Cell Regulation

In April 2012, the Texas Medical Board approved new guidelines for the use of experimental stem cell therapies. The guidelines stipulate that the stem cell procedures are done for research only, that they receive approval from a public or private institutional research board, and that patients sign consent forms. Texas joins other states such as California, New York, and Illinois in the enactment of rules governing stem cell research.

Education & Research

In 2005, the Texas Legislature established the Texas Science, Technology, Engineering and Mathematics (T-STEM) Initiative. Modeled on national STEM programs, T-STEM focuses on educating and graduating more Texas students in STEM fields critical for maintaining a skilled, competitive state workforce. In part, T-STEM aims to more

Texas A&M Center for Innovation in Advanced Development and Manufacturing

OVERVIEW

Texas Enterprise Fund

Biotechnology-Related Awards
Company
Baylor College of Medicine Becton, Dickinson & Co. Cardiovascular Systems Ferris Manufacturing G-Con, LLC Grifols, Inc. Hanger Orthopedic Group Medtronic, Inc. Scott & White Memorial Hospital Texas Institute for Genomic Medicine & Lexicon Pharma. The University of Texas Health Science Center at Houston, M.D. Anderson, & G.E. Healthcare

City
Houston San Antonio Pearland Fort Worth Bryan San Marcos Austin San Antonio Temple College Station & Houston Houston

Description
Bovine gene-mapping project Global professional services for medical devices Arterial disease medical devices manufacturing facility Medical products manufacturing Pharmaceutical manufacturing Plasma testing laboratory & fractionation plant Headquarters relocation of orthotic and prosthetic patient care services firm Diabetes division expansion Cancer Research Institute and other research initiatives Genome mapping and knockout mouse cell line library The Center for Advanced Diagnostic Imaging TOTAL

Jobs
N/A 296 100 100 408 190 236 1,384 1,485 5,000

Award (Millions)
$2.0 $1.56 $0.6 $.45 $3.0 $0.5 $1.5 $6.0 $7.5 $50.0

2,252 11,451

$25.0 $98.11

Texas A&M Leads One of Three National Biodefense Centers

In June 2012, the U.S. Department of Health and Human Services announced locations in North Carolina, Maryland, and Texas for three new Centers of Innovation in Advanced Development and Manufacturing. Created as public-private partnerships, the centers will help develop responses to bioterrorism, natural pandemics, and other health threats. The Texas A&M University System was designated to lead the Texas center, in collaboration with GlaxoSmithKline Vaccines, Kalon Biotherapeutics, and Lonza (see photo, opposite page). The $285 million contract, which can be renewed for up to 25 years, includes an initial investment of $176 million from the U.S. government, with the remainder coming from commercial and academic partners, as well as $40 million from the Texas Emerging Technology Fund. When the centers are fully operational, they will develop and produce vaccines and medicines, speed biosecurity products to market, and train biopharmaceutical and related professionals. The Texas A&M center also furthers Texas position as the third coast of the biopharma industry.

Medical Devices
diagnostics, and wound care (see page 9 for details). In 2011, the total value of Texas medical equipment shipments exceeded $3.2 billion, with manufacturers making total capital investments of over $100 million, according to the U.S. Census Bureau. Additionally, international exports of medical devices from Texas increased almost 4% in 2012 to $2.3 billion.

Emerging Technology and Venture Capital

From 2007-2012, venture capital (VC) firms invested approximately $550 million in 89 Texas medical device deals, according to consulting firm PricewaterhouseCoopers. Thirteen of those investment deals occurred in 2012 alone, with a total of nearly $100 million invested in Texas medical device companies that year. Since 2005, the states Texas Emerging Technology Fund (TETF) has invested more than $76 million in medical device-related deals. (See page 31 for listing.)

any of the biggest players in the medical device industry have corporate facilities in Texas. More than a dozen Fortune 1000 medical device giants alone have manufacturing or management operations in the state, including Abbott Laboratories, Agilent Technologies, GE, Johnson & Johnson, Medtronic, St. Jude Medical, Stryker, and Thermo Fisher Scientific. These companies and many others have developed a large medical device workforce in the state. Approximately 800 firms employ More than a dozen more than 15,000 workers in this sector, and as a Fortune 1000 result, Texas is one of the medical device giants have major top 10 states in the nation operations in Texas for number of medical device workers. In the advanced subsector of electromedical instrument manufacturing, employment in Texas increased more than 11% from 2008-2012, despite the intervening recession. A wide range of medical products are developed and produced in Texas, from surgical sutures and bandages to molecular biology kits and medication delivery systems. While a broad spectrum of medical specializations are served by Texas device companies, the state has developed several unique clusters, including ophthalmology, orthopedics, cardiology,

Merit Medical to Open R&D and Manufacturing Facility in Pearland

In October 2011, Utah-based Merit Medical Systems announced plans for an 18,000 sq. ft. research and manufacturing facility in Pearland, Texas. The facility is scheduled to open by the end of 2013 and will employ an estimated 220 workers. Merit selected Pearland after a multi-state site search and is the second medical manufacturing facility to recently locate in Pearland, following on the heels of Cardiovascular Systems in 2010. Merit Medical is a global firm that develops and manufactures proprietary disposable medical devices used primarily in cardiology, radiology and endoscopy.

MEDICAL DEVICES

Workforce Concentrations
The map below identifies the states Workforce Development regions with above-average specializations in medical equipment manufacturing. The highlighted regions are not the only areas in Texas where workers in this sector can be found, but rather represent areas with the greatest concentrations

relative to the size of the local labor force. This analysis

compares the portion of each Texas regions workforce employed in the sector to the portion of the entire U.S. workforce employed in that sector. The comparison provides a ratio that measures how intensively a certain region is specialized in this industry, and ranks it as moderate, above average, or high.

Medical Devices & Supplies Manufacturing

North Central Region

Medical Equipment Mfg.

Dallas County
Ophthalmic Goods Mfg.

East Texas
Surgical Instrument Mfg.

Heart of Texas
Medical Supplies Mfg.

Concentration Moderate Above Average High

Data: Texas Workforce Commission

Concho Valley
Medical Supplies Mfg.

Capital Region Alamo Region

Surgical Appliance Mfg.

Medical Supplies Mfg.

Medical Device Firm Relocates Headquarters from New York to Texas

In May 2012, medical equipment company Greatbatch, Inc. announced plans to relocate its corporate headquarters from Clarence, New York, to Frisco, Texas. Its Greatbatch Medical division develops and manufactures critical device technologies for the cardiac, neurology, vascular and orthopedic markets. Its Eletrochem Solutions segment designs and manufactures battery and wireless sensing technologies for industries including medical devices. Publicly traded Greatbatch relocated to Texas for its vibrant medical device community, strong business climate, and central U.S. location.

MEDICAL DEVICES

Texas Medical Device Clusters

Orthopedics
Key Products: Spinal, extremity, bone/tissue implants Key Companies: The Austin region is home to more than 15 spinal and extremity orthopedic firms, originally anchored by the spine division of Fortune 1000 device maker Zimmer. Other orthopedic leaders in the region include DJO Surgical, Hanger Orthopedic, and Integra LifeSciences. Additonally, multiple bone and tissue grafting firms, including Zimmer Orthobiologies and BME, are located in the Austin-San Antonio corridor. Further north, the Dallas/Fort Worth region is home to the U.S. HQ of Dutch orthopedic firm OrthoFix.

Cardiology
Key Products: Catheters, surgical instruments, prosthetic heart valves Key Companies: The Houston metro area is a hub of cardiology R&D and startups and is the location of established cardiovascular device firms like Merit Medical Systems and Cardiovascular Systems, both

located in the suburb of Pearland. In the Dallas/Fort Worth region, Allen-based Atrion Corp. and Plano-based Argon Medical Devices manufacture instruments for cardiovascular surgery. In Austin, prosthetic heartvalve manufacturer On-X Life Technologies is part of that metro areas growing cardiology sector.

Diagnostics
Key Products: Cell cultures, laboratory equipment, clinical chemicals Key Companies: Austin is home to a cluster of cutting edge diagnostics equipment firms, including Luminex, Agilent Technologies, Asuragen, and Thermo Fisher Scientific, while the nearby San

Antonios diagnostics cluster is anchored by Becton Dickinsons corporate service center and Fujirebio Diagnostics facility in Seguin. The Houston and Dallas/Fort Worth regions are also home to major diagnostic product makers, including Fortune 500 giants Thermo Fisher Scientific in Houston and Abbott Laboratories in Irving.

Wound Care
Key Products: Electromedical wound equipment, mattress systems, skin dressings, bandages Key Companies: Dallas/Fort Worths concentration of wound care firms is lead by Healthpoint Biotherapeutics, a maker of treatments for acute, chronic, and burn-related wounds. Medical supply firms in the region include wound-dressing makers

Strukmyer, Winfield Laboratories, and Ferris Manufacturing. San Antonio is also home to an established wound care cluster, which includes Kinetic Concepts, Inc. (KCI) and Innovative Trauma Care (ITC), and wound and burn R&D organizations Rochal Industries and the National Trauma Institute (NTI).

MEDICAL DEVICES

Major Companies
Top 10 Medical Device & Equipment Companies with Texas Operations
By Parent Company Global Revenues

Company Name
Ethicon (Johnson & Johnson) Alcon Research (Novartis) Abbott Laboratories Flextronics Medtronic Thermo Fisher Scientific Stryker Communications Becton Dickinson & Co. Agilent Technologies St. Jude Medical

Primary Locations
San Angelo Houston Irving Irving, Plano Fort Worth, Austin Flower Mound San Antonio Cedar Creek (Austin) Plano

Specialization
Surgical supplies Ophthalmic products Diagnostics Contract design & manufacturing Surgical devices & diabetes mgmt. Diagnostics Operating room equipment Diagnostics, drug delivery Diagnostics Neurology

Sales (Millions)
$67,224 $57,561 $39,874 $29,387 $16,184 $12,509 $8,657 $7,708 $6,615 $5,858

Representative sample only. Sources: Dun & Bradstreet, company websites

Texas Focuses on Eye Care Products Manufacturing

Texas is home to a large cluster of ophthalmic goods manufacturers that produce eye care devices and medical supplies. The percentage of the Texas workforce employed in the ophthalmic goods sector is 20% higher than the national average, and these workers are particularly concentrated in the Dallas/ Fort Worth region. Leading firms in this cluster are highlighted below.

Fort Worth & Houston Lens care products and surgical disposables Waco Lens care products

Dallas Contact lenses and lens coatings

Lewisville Eyeglass lenses

Garland Lens processing supplies, such as tints and anti-reflective coats

Allen Contact lens disinfection cases, and ophthalmic balloon catheters

Rosenberg Optical tools, surgical supplies, and contact lens accessories

Bedford Contact lenses

10

Pharmaceuticals
and many others have developed a substantial pharmaceutical manufacturing workforce in the state. Approximately 120 firms now employ more than 10,000 workers in the sector, and as a result, Texas is one of the top 10 states in the nation for number of pharmaceutical manufacturing workers. In 2011, the total value of T e x a s p h a r m a c e u t i c a l Texas pharmaceutical companies employ shipments approached $4.8 more than 10,000 billion, with manufacturers skilled workers making total capital investments of over $80 million, according to the U.S. Census Bureau. Texas is also a leading pharmaceutical research state. In March 2013, Texas ranked second nationally for number of clinical trials, with more than 15,000 studies underway, according to the National Institutes of Health (see map below). In addition, many of the worlds leading clinical trial and contract research firms have operations across Texas, including PPD, Covance, Quintiles, INC Research, inVentiv Health Clinical, and Radiant Research.

growing list of global pharma companies have established research and production facilities in Texas, including California-based Allergan , Pennsylvania-based Mylan , and Switzerlands Lonza. Additionally, Texas has also fostered the headquarters of homegrown pharmaceutical successes like Fort Worths ophthalmic leader Alcon (now part of Novartis) and wound care innovator Healthpoint Biotherapeutics (now part of Smith and Nephew). These companies

Clinical Trials by State, March 2013

Texas ranks No. 2

Source: NIH ClinicalTrials.gov

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PHARMACEUTICALS

Workforce Concentrations
The map below identifies the states Workforce Development regions with above-average specializations in pharmaceutical manufacturing. The highlighted regions are not the only areas in Texas where workers in this sector can be found, but rather represent areas with the greatest concentrations

relative to the size of the local labor force. This analysis compares the portion of each Texas regions workforce employed in the sector to the portion of the entire U.S. workforce employed in that sector. The comparison provides a ratio that measures how intensively a certain region is specialized in this industry, and ranks it as moderate, above average, or high.

Pharmaceutical & Medicine Manufacturing

Tarrant County
Consumable Pharmaceuticals Mfg.

Concentration Moderate Above Average High

Data: Texas Workforce Commission

Alamo Region
Consumable Pharmaceuticals Mfg.

Capital Region
Biological Product Mfg. Consumable Pharmaceuticals Mfg.

Novartis Eye Care Subsidiary Expands in Fort Worth

In early 2012, Alcon Laboratories, a subsidiary of Swiss pharmaceutical giant Novartis, began a $15 million expansion to its R&D and corporate headquarters operations in Fort Worth, Texas. The project includes upgrades to the companys existing facilities as well as construction of a new financial service center. Alcon, which has been based in Fort Worth since its founding in 1945, develops and manufacturers surgical equipment, pharmaceuticals, and vision care products. Parent company Novartis purchased Alcon in 2010 to expand its ophthalmic product offerings. At the time of the purchase, Alcon was the worlds largest independent eye care products company.

Alcons Fort Worth campus

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PHARMACEUTICALS

Major Companies
Top 10 Pharmaceutical Companies with Operations in Texas
by Parent Company Global Revenues

Company Name
Alcon (Novartis) Colgate Oral Pharmaceuticals Mylan Allergan Healthpoint Biotherapeutics Lonza Houston PPD Galderma Laboratories Virbac Corp. ALK-Abello

Primary Location
Fort Worth Dallas Sugar Land Waco Fort Worth Houston Austin Fort Worth Fort Worth Round Rock

Specialization
Ophthalmics Dental care Generic Pharmaceuticals Ophthalmics Dermatology Viral vectors Pharmaceutical R&D Dermatology Veterinary care Allergies

Sales (Millions)
$57,561 $17,085 $6,796 $5,806 $4,270 $2,864 $1,470 $1,401 $807 $409

Representative sample only. Sources: Dun & Bradstreet, company websites

Allergan Expanding in Waco

Specialty pharmaceuticals giant Allergan continues to expand its Waco, Texas, manufacturing facility. The company has invested over $30 million in improvements over the past five years and plans to hire 100 in the Waco area by 2017. Allergan first located its manufacturing plant in Waco and began producing eye care products in 1989. The facilitys 2003 expansion consolidated the companys North American manufacturing operations, and the Waco plants product line now includes skin care products for acne and psoriasis. California-based Allergan is a Fortune 500 company with a diverse array of pharmaceutical, biological, and medical device products.

Fort Worths DFB Pharmaceuticals Sells Healthpoint and DPT Units

In 2012, Fort Worth-based DFB Pharmaceuticals, a fully integrated specialty pharmaceutical company, streamlined its operations through two major sales. DFB sold a majority stake in its contract manufacturing unit, San Antonio-based DPT Laboratories, to Illinois-based Rennaisance Acquisitions Holdings. DPT remains in Texas and DFB maintains a meaningful interest. DFB also sold its Fort Worth-based Healthpoint Biotherapeutics subsidiary to UK-based medical technology giant Smith & Nephew (S&N). Healthpoint remains in Texas and has become part of S&Ns advanced wound management division.

13

PHARMACEUTICALS

Texas Startup ZS Pharma Raises $46 Million in Funding

In October 2012, Fort Worth-based ZS Pharma, a Texas Emerging Technology Fund (TETF) awardee, announced that it had raised $46 million to assist its commercialization efforts. The company plans to conduct clinical trials on ZS-9, a crystal form of zirconium silicate, designed to treat patients with kidney and liver disease. The TETF invested $2 million in ZS Pharma in August 2010 to assist the commercialization of its therapeutic solution for complications associated with liver and kidney failure. The company has further plans to research and develop other compounds to address the same problems, for which there are limited treatment options.

Texas-Made Pharmaceutical Products

A wide variety of consumable pharmaceuticals and pharmaceutical products are manufactured in Texas. Below are a few examples of leading products, ranging from Alcon and Allergans eye care products to Pernixs pediatric products.

Opti-Free

TRAVATAN glaucoma treatments

Refresh eye care products

Pediatric pharmaceutical products

Colgate oral pain relief products

Allclenz and Curasol wound care products

MirVana miRNA isolation kit

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PHARMACEUTICALS

Advanced Pharmaceutical Clusters in Texas

Biodefense & Pandemic Preparedness
Biodefense technologies are designed to inoculate citizens against infectious agents that may be used in an attack and to detect biological, chemical, or nuclear attacks. In addition, technologies can make urgently needed treatments easier to administer on the battlefield or during a civilian crisis. Key Texas Research Centers: The University of Texas Medical Branch (UTMB) Center for Biodefense and Emerging Infectious Diseases houses a Biosafety Level-4 lab in Galveston, as does the privately run Texas Biomedical Research Institute in San Antonio. Texas A&Ms Center of Innovation in Advanced Development and Manufacturing (CIADM) in College Station serves as one of three federally designated biodefense centers. Key Companies: In Houston, 1st Detect designs products to detect chemical warfare agents and explosives, while Pulmotect, develops therapies to boost human immune systems against bioterror agents like anthrax that attack the lungs. Austinbased Inview Technologys cameras operate the short wave infrared spectra beyond human visibility for applications ranging from military and defense to microscopy and life sciences. Bryanbased G-CON makes self-contained clean room pods that can be used for drug development and biomanufacturing.

Vaccines
Vaccines improve the bodys resistance to disease by introducing weakened forms of a disease-causing organism. Researchers are continuing to discover new applications for vaccines, as well as methods to improve production capabilities and delivery systems. Key Texas Research Centers: Texas A&Ms National Center for Therapeutics Manufacturing (NCTM) and CIADM, two new facilities soon to be national leaders in vaccine development and manufacturing. UT San Antonios South Texas Center for Emerging Diseases, focused on vaccine development and infectious diseases. Key Companies: In Houston, Texas Emerging Technology Fund awardee Bellicum Pharmaceuticals is developing oncological therapies, including a vaccine for prostate cancer, while Austin-based Astrogenetix uses biomarkers developed in the microgravity of space to develop vaccines for salmonella. Globally headquartered in Denmark, pharmaceutical company ALK Abello has its U.S. headquarters in the Austin suburb of Round Rock and is a leader in the development of allergy vaccinations, which are designed to reduce and potentially eliminate the effects of an allergic reaction.

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PHARMACEUTICALS

Personalized Medicine
Personalized medicine uses individual genetic information to prevent disease, choose medicines, and make other decisions about health. Researchers are interested in the use of gene-based tests to match patients with optimal drugs and dosages. Key Texas Research Centers: The University of Texas M.D. Anderson Cancer Centers Sheikh Khalifa Bin Zayed Al Nahyan Institute for Personalized Cancer Therapy (IPCT), located in Houston, is a leader in the field. The Texas A&M Institute for Genomic Medicine (TIGM), with the worlds largest library of mouse knockout embryonic stem cells, is advancing personal medicine at the genomic level. Key Companies: Austin houses a cluster of personalized medical companies including Asuragen, an Ambion spinoff and leader in personalized molecular diagnostics; Luminex, which offers a wide range of diagnostics and research assays throughout the areas of infectious diseases, human genetics, and personalized Medicine; and NanoMedical Systems, which is developing its implantable Personalized Molecular Drugdelivery System to improve the longterm release of therapeutic agents. Dallasbased Caris Life Sciences is a leading provider of pathology technologies and offers customized molecular profiles of patient tumors to facilitate effective treatments.

Regenerative Medicine
Research institutions are gaining the capability to create personalized organs in the laboratory that match a patients specific genetic makeup, relieving the pressure of finding a donor. Key Texas Research Centers: Texas A&Ms Health Science Centers Institute for Regenerative Medicine is an A&M joint venture with Scott & White Hospital and the Temple Bioscience District that received $5 million in TETF funding. Baylor College of Medicines Stem Cells and Regenerative Medicine (STaR) Center focuses on stem-cell stimulation to regenerate tissues and the use of stem cells to repair damaged tissue. The Armed Forces Institute of Regenerative Medicine (AFIRM) at Fort Sam Houston in San Antonio advances therapies for injured veterans and service members. Key Companies: Austin-based SpineSmith designs, develops, and markets implants and biologics for surgical fixation, correction, and tissue regeneration of the spine. SpineSmith subsidiary Celling Biosciences, also Austin-based, develops tissue regeneration therapies utilizing adult stem cells, focusing its R&D on the areas of orthopedics, cardiovascular systems, trauma, plastics, and diseases. San Antonio area-based America Stem Cell and College Station-based BLAST Therapeutics are developing technologies to expand the therapeutic potential of bone marrow-derived stem cells.

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Biomedical Research
workforce employed by specialty hospitals is more than four times the national average. In addition to R&D facilities, Texas has more than 1,500 medical and testing laboratories, which include blood, pathology, imaging, diagnostics, and device testing facilities. These laboratories employ more than 33,600 in Texas. Major laboratory firms in the state include LabCorps Esoterix subsidiary and Spanish biological product firm Grifols.

esearch and development (R&D) is the lifeblood of the biotechnology industry. In Texas, the R&D pipeline is supplied in part by the states vast network of public universities and health-related institutions, which invest heavily in R&D and intellectual property generation. In fiscal year 2012 alone, Texas public institutions of higher education expended almost $2.6 billion on medical and life sciences research, accounting for over 60% of all higher education R&D expenditures in the state. Public investment in biotechnology research is complemented by the states substantial cluster of private sector R&D activity. Texas is home to over 920 private scientific R&D firms that employ more than 20,400 workers. Many of the largest private biotechnology in 2012, Texas public institutions R&D firms in the world have operations in Texas, including expended $2.6 billion on life PPD, Covance, Quintiles, INC science R&D Research, inVentiv Health Clinical, and Radiant Research. These firms have helped make the state a hub of clinical trials and other breakthrough research. In the Austin and San Antonio regions, the percentage of the workforce employed in private-sector scientific R&D is more than 30% above the national average, while in the Houston area, the percentage of the

Texas in Top Tier for Biotech-Related Doctorates

In 2011 the National Science Foundation ranked Texas among the top tier of U.S. states for number of doctorates awarded in biotech-related fields:

#3 for All Doctorates Awarded #2 for Agricultural Sciences/Natural

Resources Doctorates

#3 for Health Sciences Doctorates #3 for Life Sciences Doctorates #3 for Biological Sciences Doctorates

Texas is also a leader in cancer research. Major institutions in this field include MD Anderson Cancer Center in Houston, Scott & White Healthcare Cancer Research Institute in Temple, and Texas Oncology and Mary Crowley Cancer Research Centers, both based in Dallas. Additionally, the Cancer Prevention and Research Institute of Texas (CPRIT), a state-funded initiative, has been instrumental in expanding Texas cancer research.

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BIOMEDICAL RESEARCH

OVERVIEW

Biotech Education in Texas

Number of Biotechnology-Related Degrees Awarded, 2009-2012
All Texas Public Universities, All Degree Levels
Biological and Biomedical Sciences Healthcare Professionals and Technicians Plant and Agricultural Sciences Animal Sciences TOTAL

26,084 14,413 6,842 3,318

50,657

Source: Texas Higher Education Coordinating Board

Top Ten Texas Public Institutions for Biomedical R&D

by FY 2012 Expenditures

Texas Places Five Research Medical Schools in Top 100

In 2012, U.S. News & World Report ranked the nations top 100 research medical schools. Texas landed five schools on the list:
#20
UT Southwestern Medical Center at Dallas

Institution
Univ. of Texas (UT) M.D. Anderson Cancer Baylor College of Medicine-Houston UT Southwestern Medical Ctr. at Dallas UT Health Science Center at Houston UT Health Science Center at San Antonio UT Medical Branch (UTMB) at Galveston Texas A&M Health Science Center Texas Tech University Health Science Ctr. Univ. of North Texas Health Science Ctr. UT Health Science Center at Tyler TOTAL
Source: Texas Higher Education Coordinating Board

Total R&D (Millions)

$582.1 $450.6 $389 $226.7 $163.8 $139.3 $77.5 $60.6 $42 $12 $2,143.6

#21
Baylor College of Medicine

UT #67 Health Science UT Center at Houston Health Science Center at San Antonio

#55

#83
Texas A&M Health Science Center

In 2012, the University of Texas (UT) ranked No. 2 nationally for the number of pharmaceutical-related patents earned by a university (Class 424Drug, Bio-Affecting and Body Treating Compositions), behind only the University of California, according to the U.S. Patent and Trademark Office.

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BIOMEDICAL RESEARCH

Research Centers
Texas is home to top-ranked biotechnology and medical research institutions, federally designated centers, innovative research collaborations, and some of the worlds largest medical complexes. A number of the most ambitious Texas medical center expansions are a result of the U.S. Department of Defenses (DoD)

2005 military base realignments across the nation, which consolidated military medical facilities in San Antonio. A sampling of military, university, and private medical research facilities are profiled regionally on the following pages. The map below provides a broad snapshot of some of the states major medical-related research centers and nine medical schools.

Texas Medical Schools & Selected Medical Research Centers

Due to space limitations, not all institutions are included.

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BIOMEDICAL RESEARCH

HOUSTON/GULF COAST
Worlds Largest Medical Center Keeps Growing in Houston
The Texas Medical Center (TMC) in Houston is the worlds largest medical center with over 71,500 students and 92,500 employees, housed on 1,300 acres. The TMC has a total budget of $14 billion encompassing its 54 member institutions, comprised of hospitals, schools, and other specialty institutions, include Baylor College of Medicine, UT M.D. Anderson Cancer Center (MDACC), UT Health Science Center, the University of Houston (UH), Rice University, Texas A&M University Health Science Center, The Methodist Hospital, and Texas Childrens Hospital.

Texas Medical Center Complex

The TMC plans $7.1 billion in capital investment through 2014, including the $1 billion Baylor Clinic and HospiDowntown Houston tal. In 2012, TMC member MDACC began a $198 million hospital renovation and expansion project that will add 185,000 sq. ft. by 2016. In 2012, the TMC added four new members: DePelchins Childrens Center; The Menninger Clinic; Sabin Vaccine Institute; and UH Victoria School of Nursing.

UTHealth Ranks 7th Largest Medical School in the Nation

Located in Houstons TMC, the University of Texas Health Science Center at Houston (UTHealth) is the largest of the states nine medical schools and focuses primarily on graduate education and research. Has over 10,000 faculty, staff, students, and residents, and educates more healthcare professionals than any other Texas institution Conferred more than 1,270 degrees and spent almost $261.2 million for research in FY 2011

BCM Top Ranked for R&D

The Baylor College of Medicine (BCM) in Houston, located in Houstons TMC, is the states only private medical school. Has research support of $363 million and trains over 3,000 students, including residents and post-doctoral Ranked as one the nations top 25 medical schools for research by U.S. News & World Report in 2013 Ranked 2nd nationally in federal funding for R&D in the biological sciences at universities by the NSF in FY 2010

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BIOMEDICAL RESEARCH

UTMB at Galveston Fights Infectious Diseases

The University of Texas Medical Branch (UTMB) at Galveston was established in 1891, making it the oldest of UT Systems four medical schools. UTMB has developed a strong program in infectious disease research with several facilities devoted to that field. Has over 10,600 faculty, staff, and students, with total research expenditures of $126.9 million in FY 2012 Became a member of Houstons Texas Medical Center in 2010 Serves as one of the nations 11 federal Regional Centers of Excellence for Biodefense and Emerging Infectious Diseases Research (CBEID), for the Western Region. The CBEID at UTMB Galveston was established by the National Institutes of Health (NIH) in 2002. The CBEID serves as the lead institution for participating academic institutions in the Western Region, a five-state area that includes Louisiana, Arkansas, New Mexico, and Oklahoma. One of the nations two National Biocontainment Laboratories is located at UTMB. The Galveston National Laboratory (GNL) was established with grants awarded by the NIHs National Institute of Allergy and Infectious Diseases (NIAID). The GNL conducts research to develop therapies, vaccines, and diagnostic tests for naturally occurring emerging diseases such as SARS, West Nile encephalitis, and avian flu, as well as for microbes that might be employed by terrorists. In 2003, the UTMB CBEID was awarded a $110 million NIH grant to establish the Robert E. Shope Laboratory, a Biosafety Level 4 facility. The lab opened in 2004 and is the first full-sized facility of its kind in the nation to be located on a university campus.

M.D. Anderson Announces Moon Shot to Cure Cancer

In September 2012, UT M.D. Anderson (MDACC), located at Houstons TMC, announced the launch of its $3 billion Moon Shots Program, an unprecedented effort to accelerate the commercialization of scientific discoveries to reduce cancer deaths. The programs name is inspired by Americas space program to put a man on the moon. Initially, MCACCs program will target the following cancers: leukemia, lung, melanoma, prostate, and triple-negative breast and ovarian.

The Methodist Hospital System Expands Research Arm

Since 2004, the Methodist Hospital Research Institute (MHRI) has overseen interdisciplinary scientific activity for The Methodist Hospital System. The MHRI is a TMC member with $100 million in annual research expenditures and over 1,300 researchers. The institutes NIH research funding doubled from 2011 to 2012. In May 2011, MHRI announced the recruitment of renowned cancer geneticists Dr. Nancy Jenkins and Dr. Neal Copeland, with the help of funding from the state cancer initiative, CPRIT. In 2010, the Institute opened a new 440,000 sq. ft. facility solely dedicated to research.

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BIOMEDICAL RESEARCH

NORTH TEXAS
Southwestern Medical District Expansions
The Southwestern Medical District (SMD) in Dallas is a 390-acre medical complex that is home to world-class biomedical research organizations employing nearly 27,000. Member institutions include University Hospital-St.Paul, University Hospital-Zale Lipshy, Childrens Medical Center Dallas, and Parkland Health & Hospital System. Planned SMD expansions include new Parkland hospital facilities, a new $800 million state-of-the-art University Hospital, and a Childrens Medical Research Institute. One of the worlds top academic medical centers, the University of Texas Southwestern Medical Center (UTSWMC), is also located at SMD. UTSWMC alone employs about 11,400 and trains nearly 4,600 students annually. Ranked No. 20 for best U.S. research medical schools in 2013 by U.S. News & World Report

Its Harold C. Simmons Cancer Center is a National Cancer Institute designated cancer center, a distinction held by only the top-tier cancer centers nationwide UTSWMC outstanding faculty has included five Nobel Prize recipients since 1985

University of North Texas Leads Osteopathic Research

The Texas College of Osteopathic Medicine (TCOM) is located at the University of North Texas HSC in Fort Worth. It is the states only osteopathic medical school. Has over 1,385 students and faculty members Approximately 65% of TCOM's graduates practice primary care medicine, helping reduce the state and nationwide shortage Ranked as one of the nation's top 50 medical schools for primary care by U.S. News & World Report TCOMs Osteopathic Research Center is a national research program that studies the clinical effectiveness of osteopathic manipulative medicine

22

BIOMEDICAL RESEARCH

SOUTH TEXAS
UTHSC at San Antonio Spurs Local Biotech Industry
The University of Texas Health Science Center (UTHSC) at San Antonio is one of the UT Systems four medical schools. Over 4,400 students enrolled on eight campuses in San Antonio, Harlingen, Edinburg, and Laredo Managed $193 million in annual research related activities in FY 2012 Opened the new $150 million South Texas Research Facility in late 2011. The 188,000 sq. ft. building will house up to 20 lab teams, working in areas ranging from regenerative medicine to cancer research.

Military Medical System Grows in San Antonio

In September 2011, U.S. Air Force and Army officials activated the San Antonio Military Health System (SAMHS), which provides oversight for all military treatment facilities and the healthcare needs of approximately 230,000 DoD beneficiaries in the San Antonio area. Managing a $839 million budget, SAMHS healthcare services are provided by the San Antonio Military Medical Center (SAMMC), a Level 1 trauma center and the DoDs largest inpatient hospital; Wilford Hall Ambulatory Surgical Center (WHASC), which is the DoDs largest outpatient ambulatory surgery center; 19 primary care clinics; and over 100 specialty services.

San Antonio Thrives as Hub of Private Sector Scientific R&D

Since 1947, San Antonios Southwest Research Institute (SwRI) has provided contract R&D services to industrial and government clients across industries, which today include biotechnology and medicine. SwRIs headquarters facility employs nearly 3,000 workers and occupies over two million square feet of office and laboratory space across 1,200 acres. SwRIs 2012 revenues exceeded $584 million and, in 2012, the organization dedicated $7.4 million to fund its internal research programs separate from contract client projects. The Texas Biomedical Research Institute, SwRIs sister institution located on an adjacent 200 acre campus, is one of the worlds leading independent biomedical research institutions. Texas Biomed has a nearly $55 million annual budget and employs approximately 400 people. The institute is home to the Southwest National Primate Research Center and the worlds largest colony of baboons for biomedical research; the nations only privately owned biosafety level 4 laboratory; and the AT&T Genomics Computing Center, the world's largest computer cluster devoted to human genetic and genomic research.

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BIOMEDICAL RESEARCH

CENTRAL TEXAS
A&M National Center for Therapeutics Manufacturing Leads Biodefense
The Texas A&M Universitys National Center for Therapeutics Manufacturing (NCTM) is a first-in-class biopharmaceutical GMP (Good Manufacturing Practice) manufacturing facility and interactive academic training center. Opened in 2012, the NCTM was built in collaboration with UTs M.D. Anderson Cancer Center (MDACC) as part of a major joint research initiative on cancer announced in May 2010 between NCTM and MDACC. A $50 million TETF award in 2009 also helped establish the NCTM. With over 150,000 sq. ft. of space for biopharmaceutical manufacturing, advanced development, and training, the NCTM is now an important part of one of the nations three

biodefense centers, the TAMU Center for Innovation in Advanced Development and Manufacturing.

NCTM facility in College Station, Texas

UT Austin Biotech Institutions

The University of Texas at Austin (UT Austin) is one of the nations largest universities and one of Texas three Tier One research universities. UT Austin has a number of biotechnology-related divisions, institutes, and centers. Selections are highlighted below.

The DDI was established in 1974 as a multiEstablished in 1993, the ICMB is a multidisciplidisciplinary research center where scientists, nary center of excellence for biotechnology educators, businesses whose goal is to promote cell and regulatory and molecular biology research specialists collaborate and education. The Institute in finding solutions to a conducts fundamental research Opened in 2012, the IRC, previously known wide range of into the basic processes of living as the Neuroscience Imaging Center, rebiomedical, pharmacells and tissues, which is crucial ceived a $3.5 million TETF award in 2007 to ceutical, and public to future advances in medicine establish a center to study cognitive brain health issues. and biotechnology. functions using Magnetic Resonance Imaging (MRI) technology.

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BIOMEDICAL RESEARCH

Biotech Collaborative in Bryan-College Station

In June 2011, the Texas A&M University System (TAMU), in conjunction with The Research Valley Partnership, unveiled the One Health PLUS Biocorridor, a master planned center in BryanCollege Station, Texas for education, research, development, commercialization, and the production of biotechnology products and therapies, including pharmaceuticals and vaccines. Anchored by TAMU, one of the nations top research institutions, the Biocorridor intends to become the nations premier destination for the discovery of new therapies, pre-clinical trials, and manufacturingall in one location. The Biocorridors interdisciplinary collaborations and research will encompass humans, animals, and plants. Participating Biocorridor research facilities include the TAMU Health Science Center, the TAMU College of Veterinary Medicine and Biomedical Sciences (CVM), TAMU AgriLife, the Texas Engineering Extension Service, the TAMU Institute for Preclinical Studies (TIPS), TAMU Institute for Genomic Medicine (TIGM), and TAMUs National Center for Therapeutics Manufacturing (NCTM).

Bioscience Research District in Temple

Over the past ten years, the city of Temple has built a unique health and bioscience industry cluster around local academic, medical, and research facilities. In 2003, the Temple Health & Bioscience District (THBD) was created through unique state legislation and the approval of local citizens. The THBDs Scott & White (S&W) Cancer Research Institute (CRI) opened in 2005, as part of a joint development agreement with S&W and led by renowned cancer researcher Dr. Arthur Frankel. The Texas Bioscience Institute (TBI) opened in 2006 to prepare students to enter the bioscience and medical industries. The Institute was created with funding from the U. S. Department of Labor, the city of Temple, and S&W. In 2007, the expansion of the TAMU HSC College of Medicine brought a new campus and four-year medical school to Temple and Scott & White Memorial Hospital (SWMH). In 2007, the State of Texas announced a $7.5 million TEF grant to SWMH to increase critical research initiatives and generate nearly 1,500 jobs during the next decade. In 2008, the city of Temple joined THDB and its partners to promote redevelopment plans for a Temple Medical & Education District (TMED). In 2009, the State of Texas announced a $5 million TETF grant to recruit leading scientist Dr. Darwin Prockop as the founding director of TAMU HSC College of Medicines Institute for Regenerative Medicine at S&W. The Institute uses adult stem cells to develop new therapies. In 2010, the Temple Bioscience Accelerator was created to develop new bioscience companies in the region. In 2011, the THBD approved funding the THBD Scholars Research Program, with cash awards going to outstanding undergraduate students to study and work in THBD facilities. The program began sponsoring students in 2012.

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BIOMEDICAL RESEARCH

WEST TEXAS
El Paso Home to Texas Newest Medical School
The Paul L. Foster School of Medicine at Texas Tech University Health Sciences Center at El Paso (PLFSOM) opened in 2009, making it the states newest medical school. Has over 1,700 faculty and staff members Is the only four-year medical school on the U.S./Mexico border and operates a Border Health Research program Centers of Excellence in Cancer, Infectious Diseases, and Neurosciences have received funding from CPRIT and the NIH Partners include the William Beaumont Army Medical Center (WBAMC) at Fort Bliss

TTUHSC Leads Medical Training and Research in West Texas

The Texas Tech University Health Sciences Center (TTUHSC) is based in Lubbock with satellite campuses in Abilene, Amarillo, El Paso, Lubbock, Odessa, and Dallas/Fort Worth. TTHUSC system includes two medical schools, two nursing schools, a pharmacy school, a graduate school of biomedical sciences, and a school of allied health sciences Has trained over 10,000 health professionals to date TTHUSCs Clinical Research Institute was established in 2010 to conduct clinical, epidemiological, and educational research. Ongoing studies span the fields of aging, cancer, reproduction, genetic diseases and rural health

EAST TEXAS
World-Class Pulmonary Research in East Texas
The University of Texas Health Science Center at Tyler (UTHSCT) is a world-renowned center of pulmonary and infectious disease treatment and research. Employs over 800 people, with more than 20 outpatient clinics, a hospital, and an emergency care center Its graduate medical education programs with residencies in family medicine and occupational medicine provide doctors for the Northeast Texas region Offers residency programs in family medicine and occupational medicine, as well as masters degree programs in biotechnology and environmental science Is the program sponsor of a residency program in internal medicine at Good Shepherd Medical Center in Longview Partner to the Heartland National TB Center, which is located at the Texas Center for Infectious Disease in San Antonio and is one of the nations four regional training and medical consultation centers for tuberculosis.

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Animal & Agricultural Biotech

Leading Texas Research Centers
Texas has been at the forefront of animal and agricultural research for over 100 years. For decades, Texas A&M University has led the nation in graduating more students in animal and agricultural-related fields than any U.S. institution. Below are profiles of some of the states leading public research centers for agricultural and animal sciences.

Texas A&M AgriLife Research

nimal biotechnology focuses on the genetic improvement of domesticated animal species, including cloning, selective breeding, artificial insemination, and genetic engineering. Crop biotechnology research is centered on increasing yields by making plants stronger and more resistant to pests and environmental stresses, as well as by developing biopesticides, herbicides, and other crop protections.

Established in 1887, AgriLife Research is the states premiere R&D agency in agriculture, natural resources, and the life sciences. It has a statewide presence with 13 regional centers, over $190 million in research funding, 550 doctoral-level researchers, and approximately 580 annual projects.

Texas Tech Univ., Animal & Food Sciences Dept., Burnett Center for Beef Cattle Research
Since 1984, Burnett Center scientists have contributed extensively to human knowledge of beef cattle feeding and management. Major research areas include animal growth and composition, beef cattle nutrition, and the environmental sustainability of cattle production.

Texas is the nations No. 1 cotton producer and 91% of the states cotton crop is genetically modified.
-U.S. Dept. of Agriculture

Texas is a natural choice for agricultural biotechnology business as the nations leading producer of cattle and cotton and the No. 3 overall producer of agricultural products, behind California and Iowa. The Lone Star State is also home to world-class agricultural education and research facilities, particularly through the Texas A&M and Texas Tech University Systems, as well as established agricultural feedstock and chemicals manufacturing industries concentrated in the Texas Panhandle and Gulf Coast regions. In 2011, 3,000or approximately one out of every 12 U.S. agricultural feedstock and chemicals industry employeesworked in Texas.

Texas A&M, College of Veterinary Medicine and Biomedical Sciences

Operating over 90 years, the college focuses a number of disciplines including infectious diseases, toxicology and environmental health science, cardiovascular sciences, neurosciences, and reproductive biology. The college is one of only 31 colleges of veterinary medicine in the U.S. and Canada.

Texas A&M, Dept. of Soil and Crop Sciences

The department is the largest such facility in the world with a global reputation. It works to develop technologies to sustain environmentally sound and economically profitable production systems as well as to promote the wise use and management of soil, plant, and water resources.

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AGRICULTURAL & ANIMAL AGRICULTURAL & AGRI BIOTECH

Agribusiness Industry Leaders Invest in Texas Cotton R&D

Because Texas is the nations largest producer of cotton, the state is a natural location for the R&D operations of Fortune 500 agribusiness firm Monsanto. In fact, the Missouri-based company has nine locations in Texas, including a research farm outside of Lubbock and testing centers in Haskell and near Corpus Christi. In December 2010, Monsanto opened its newest Texas facility, the $10.5 million Texas Cotton Breeding and Technology Center, in Lubbock. Monsantos new Monsantos Cotton Breeding & Tech. Center research megasite exemplifies its commitment to the Texas cotton industry and to developing varieties adapted to the region, which produces more cotton than any other state. Cotton is big in Texas, said Ted Crosbie, Vice President for Global Plant Breeding at Monsanto. Thats why we built this megasite in Lubbock. This will be our main cotton breeding center. Monsanto, however, is not the only global agricultural biotech firm in Lubbock. Since 1998, German conglomerate Bayer has operated its CropScience divisions cotton research headquarters in Lubbock. The site focuses on providing cotton growers with products to meet global demand for cotton fiber. The company maintains a state-of-the-art R&D lab, two breeding stations, a seed processing plant, a seed warehousing facility, and supports two of its global cotton seed brands, Stoneville and FiberMax, in Lubbock. Both Monsanto and Bayer CropScience have developed cotton R&D partnerships with Texas universities, including two of the states leading research institutions, Texas Tech University and Texas A&M University. Monsanto offers technology internships to TTU students, and, in 2009, donated 4,000 cotton molecular markers and associated information for R&D and breeding purposes to TAMU AgriLife Research. Bayer CropScience and TTU have been working together to develop new cotton technology. See collaboration details below.

Texas Tech Leads in Cotton Agricultural Genomics R&D

In February 2006, the Texas Emerging Technology Fund (TETF) announced a $1.9 million investment in Texas Tech University to help support a new cotton genomics center. The TETF award played a key role in the universitys recruitment of Dr. Thea Wilkins, one of the worlds premier cotton geneticists. Dr. Wilkins currently serves as Director of the Center for Excellence of Agricultural Genomics and Biometrics at TTUs Department of Plant and Soil Science (DPSS) and has generated millions of dollars in competitive research funding from the National Science Foundation, the U.S. Department of Energy, and the USDA since 2006. In August 2009, Texas Tech and Bayer CropScience signed an exclusive licensing agreement for CFGCs new cotton technology. In May 2010, Bayer announced a $7.5 million contribution to TTUs DPSS to support new research initiatives and facilities development. Through the 100% grant matching Texas Research Incentive Program, this represents a $15 million total contribution to TTU.

Dr. Thea Wilkins

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Environmental Tech & Biofuels

Texas ranks No. 1 nationally for biodiesel production
-U.S. Energy Information Administration (EIA)

nvironmental biotechnology and biofuels are transforming many industrial processes to better conserve and sustain natural resources, ensure food and water safety, utilize crop residues for feed stocks and energy sources, and assist mature industries such as food processing, public water systems, and petrochemicals to become more competitive. Biofuels and biomass are playing an increasingly important role in Texas and the nations energy mix. Renewable biofuels, including ethanol and biodiesel, can be created from nonfood biomass such as algae, lumber scrap, switchgrass, animal waste, and agricultural residues like corn husks.

Building on the states strong agricultural and forestry production base, Texas researchers and businesses are investing in new renewable energy technologies to maintain the states position as the nations energy capital. Research in Texas ranges from exploring new methods to convert nonfood stock materials to investigating ways to turn algae into biofuels. In FY 2011, Texas institutions of higher education spent almost $223 million on environmental sciences R&D, according to the Texas Higher Education Coordinating Board. Additionally, the Texas Emerging Technology Fund (TETF) has invested over $23 million to date into environmental and biofuels-related projects. See Appendix 1 for a complete listing.

Biofuels in Texas
Ethanol and biodiesel are alternative fuels defined by their feedstock. Biodiesel can be produced from vegetable or animal oils that are processed into an alcohol ester, while ethanol can be produced from corn and sugar cane, which are fermented and turned into alcohol. Since Gov. Rick Perry laid out plans for a statewide bioenergy initiative in 2007, Texas has focused on developing alternative fuels from woody grasses and other plants, rather than food crops like corn. As the nations No. 3 agricultural production state and home to a large forest and cattle industry, Texas is rich in biomass resources and well positioned as a major biofuels producer. In 2012, Texas ranked No. 1 nationally with eleven biodiesel refineries providing nearly 408 million gallons of annual production capacity, according to the U.S. Energy Information Administration. The majority of these biofuel manu-

Texas is Home to the Nations Largest Biodiesel Plant

Houston-based Renewable Biofuels, Inc. operates the largest biodiesel plant in North America, RBF Port Neches, in Port Neches, Texas. Opened in 2008, the plant has a total refining capacity of 120 million gallons per year and experienced two years of record production in 2011 and 2012. The facility has expanded its permanent staff from 12 to 35 and now operates 24/7.

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BIOFUELS
facturing facilities are located in the Houston, Southeast Texas, Dallas/Fort Worth, and West Texas Panhandle regions. The U.S. Department of Agricultures National Institute of Food and Agriculture (NIFA) awards research grants to support the development of sustainable bioenergy. In 2011 and 2012, the NIFA awarded over $1.8 million in bioenergy grants in Texas for separate studies at Texas A&M and Rice Universities.

ENVIRONMENTAL BIOTECH & BIOFUELS

Texas Biorefinery Reopens

In October 2012, Iowa-based Renewable Energy Group (REG) purchased an idled 15 million gallon/ year biorefinery near New Boston, Texas. The facility, 22 miles west of Texarkana, was upgraded before resuming operations in early 2013. REG plans to create approximately 20 new jobs in Texas and to use animal fats and other fatty acid feedstocks to increase its total production to over 225 million gallons annually. The New Boston plant is REGs second Texas biodiesel production facility, following the 2008 purchase of a Houston-area plant. REG is one of the nations largest biodiesel producers and marketers with a nationwide distribution and logistics system. Since 2008, REG has purchased ten biodiesel-related firms or production facilities, expanding the companys footprint. The company focuses on converting natural fats, oils, and greases into advanced biofuels. No food crops are used as feedstock.. REGs premiere biodiesel product, REG-9000 branded biodiesel, is distributed in nearly every state in the nation.

Texas Biofuels Regulation

In 2011, the Texas Commission on Environmental Quality (TCEQ) introduced new state guidelines allowing biodiesel to be blended at any ratio into any compliant fuel. This means former limitations, such as requirements to use more additives within the biodiesel and producers having to report blending requirements, have ended. Texas biodiesel producers are now exempt from paying the excise tax, even when the biodiesel is blended with conventional diesel. The TCEQ also authorizes state bioenergy facilities.

UT Houses One of Worlds Largest Algae Collections

Housed at UT Austin, UTEX The Culture Collection of Algae (UTEX) maintains one of the worlds largest algae collections, with nearly 2,800 strains. UTEX supplies algae strains globally for research, biotech development, water quality assessment, and a variety of other purposes. UTEX is overseen by Dr. Jerry Brand, a professor in molecular cell and developmental biology at UT Austin.
Dr. Jerry Brand

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Appendix 1: Texas Emerging Technology FundBiotech Awards

Company/ Entity 1st Detect Admittance Technologies Aegeria Medical Devices (FKA Speer Medical Devices) America Stem Cell Animal Innovations Apaxis Medical (FKA SEMMT) AuricX Pharmaceuticals Azaya Therapeutics Bellicum Pharmaceuticals Bio2 Medical Blue Box Health Botaneco (FKA AdviTech) CardioSpectra Castle Biosciences Chipotle Business Group Corhythm CorInnova Cormedics CryoPen DentLight DEP Shape Memory Therapeutics Diabetica Solutions (FKA Xilas Medical) DNATriX Endothelix Ensysce Biosciences City Houston Austin San Antonio San Antonio Amarillo Houston Houston San Antonio Houston San Antonio Houston Formerly San Antonio San Antonio Friendship Arlington San Antonio College Station Houston Corpus Christi Richardson College Station San Antonio Houston Houston Houston Industry Segment Medical Devices Biodefense Medical Devices Medical Devices Biopharmaceuticals Veterinary Medical Technology Medical Devices Pharmaceuticals Biomedicine Nanohealth Biomedicine BioPharmaceuticals Medical Devices Medical Devices Medical Devices Medical Devices Biomedicine Medical Devices Environmental Health Medical Devices Medical Devices Medical Devices Medical Devices Medical Devices Medical Devices Medical Devices Biopharmaceuticals Medical Devices Biomedicine Nanohealth Project Description Portable chemical detector for security and medical diagnostics Development of a monitoring device that can monitor heart disease and detect heart failure Non-invasive continuous vital sign monitor for pre-hospital use Bone marrow stem cell transplant enzyme technology for cancer and other disease treatment Animal injection technology Left ventricular assist device (LVAD) implantation Develop and commercialize a drug compound to treat antibiotic resistant infections, like MRSA Azaya Liposome Encapsulated Radiation Therapy (ALERT) for cancer treatment Cancer vaccine Temporary inferior vena cava filter catheter Technology for home-health chronic disease management Vision products to combat spatial disorientation, vertigo & motion sickness Fiber-optic cardiac catheter Biomarker-based cancer detection system Water safety testing Implantable treatment for atrial fibrilliation Heart therapy device Heart therapy device Cryosurgical device freezes unwanted tissue Dental medical devices Cerebrovascular aneurism treatment Diabetic foot products Genetically-modified virus for cancer therapy Cardiovascular test Carbon nanotube/siRNA cancer therapeutics Funding (in Millions) $1.8 $.5 $2.5 $1.25 $1 $.6 $1 $1.045 $1.45 $1 $1 $2.5 $1.35 $1 $1 $3.1 $.5 $.75 $2 $.25 $1 $1 $.5 $1 $1.5

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TEXAS EMERGING TECHNOLOGY FUND

Company/ Entity Environmental Quality Management Associates (FKA EQMA) FE3 Medical Genprex Inc. (FKA Convergen LifeSciences) Gradalis Halsa Pharmaceuticals InView Technology Laser Tissue Welding LaserGen Inc. City Waco San Antonio Austin Dallas Houston Austin Humble Houston Industry Segment Biofuels Medical Devices Nanohealth BioPharmaceuticals BioPharmaceuticals Pharmaceuticals Food Safety Biodefense Medical Devices Biomedicine BiomedicineNanohealth Medical Devices Pharmaceuticals Medical Devices Nanohealth Food Safety BioPharmaceuticals Biomedicine BioPharmaceuticals Medical Devices PharmaceuticalsMedical Devices Nanohealth Medical Devices Medical Devices Nanohealth Medical Devices Nanohealth Health Sciences Health Information Technology Health Information Technology Medical Devices Medical Devices Medical Devices Project Description CAFOs (Concentrated Animal Feeding Operations) feedstock to ethanol Trans-dermal drug patch to deliver iron for treating iron-deficiency anemia Targeted nanomolecular cancer therapies Cancer therapeutics Clinical obesity drug development High-performance cameras that operate outside the visual range (infrared, ultraviolet, and terahertz) Surgical therapy DNA sequencing technology Funding (in Millions) $.25 $2.8 $4.5 $1.75 $1 $1.5 $.16 $1

Leonardo BioSystems MacuCLEAR MicroTransponder MicroZAP Mirna Therapeutics Molecular LogiX Monebo Mystic Pharmaceuticals Nano3D Biosciences NanoMedical Systems Inc. NanoSpectra Biosciences National Trauma Institute (NTI) Net.Orange Neuro Resource Group Neurolink Noninvasix

Houston Plano Dallas Lubbock Austin The Woodlands Austin Cedar Park Houston Austin Houston San Antonio Irving Plano San Antonio Galveston

siRNA cancer therapeutics Optical therapeutics Neurostimulation Pain Management Microwave food sterilization technology MicroRNA therapeutics cancer treatment Genetically engineered therapeutic cancer treatment Heart health assessment Specialty pharmaceuticals & ophthalmic and intranasal drug delivery systems 3-dimensional in vitro cell culturing Personalized nanochannel drug delivery systems Oncologic imaging detection using nanoparticles Civilian and military trauma research Heath care information management software Commercialization of InterX products technology for post-operative acute pain management Brain implant system to monitor brain activity and directly deliver drugs to treat brain seizures Hemoglobin monitor

$2.5 $1.7 $1.38 $1.5 $5 $.79 $.5 $1.56 $1 $3.5 $1.25 $3.8 $1.9 $1.5 $3.2 $.25

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TEXAS EMERGING TECHNOLOGY FUND

Company/ Entity Oncolix OnTrack Imaging Ortho Kinematics OrthoAccel Palmaz Scientific Patton Surgical Photon8 PLx Pharma Procyrion Pronucleotein Biotechnologies Pulmotect Quantum Logic Devices RadioMedix Receptor Logic Resonant Sensors Salient Pharmaceuticals Savara Pharmaceuticals ScanTech Sciences Seno Medical Instruments SeprOx Smart Imaging Technologies Smartfield Stellarray City Houston Flower Mound Austin Houston Dallas Austin Brownsville Houston Houston San Antonio Houston Georgetown Houston Austin Arlington Houston Austin Houston San Antonio The Woodlands Houston Lubbock Austin Industry Segment Pharmaceuticals Veterinary Medical Technology Medical Devices Medical Services Medical Devices Medical Devices Medical Devices Biofuels Pharmaceuticals Medical Devices Environmental Health Biomedicine Biodefense Nanohealth Medical Devices Pharmaceuticals Biomedicine Medical Devices Nanohealth Pharmaceuticals Pharmaceuticals Nanohealth Environmental Health Medical Devices Medical Devices Environmental Health Nanohealth Agricultural Technology Medical Devices Nanohealth Environmental Health Project Description Development of a non-chemotherapy drug for treatment of ovarian cancer Ultrasound imaging system for horses Spine function testing Orthodontics SESAME stent Abdominal-based laparoscopic surgery Algae-based biodiesel fuel Non-steroidal Anti-Inflammatory Drugs (NSAIDs) Developing the first catheter-deployed circulatory assist device intended for long-term use Food and water safety testing products using DNA aptamer sequences to detect pathogens Stimulated Innate Resistance (StIR) against inhaled pathogens Nanoelectronics medical diagnostic technology Manufacturing radiopharmaceuticals to diagnose and treat diseases, including cancer, through positron emission tomography (PET) T-cell mimic receptors antibodies technology to treat cancer and other diseases Optical biochemical sensors Treatment of cancer-related gastrointestinal side effects caused by disease, chemotherapy, or radiation Pulmonary therapeutics for cancer and other conditions Food sterilization technology Laser optical for cancer scanning Pure oxygen technology device Automated water-borne pathogen detection system Real-time irrigation row crop sensor Medical products sterilization & medical imaging Funding (in Millions) $2.4 $1 $1.5 $.75 $3 $3 $1 $2 $.75 $1 $1 $.6 $2.8 $2 $.6 $2 $1.9 $2 $2 $.75 $1 $1 $.75

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TEXAS EMERGING TECHNOLOGY FUND

Company/ Entity Sunrise Ridge Algae Terapio Terrabon Texas A&M System / Texas Agriculture Experiment Station Texas A&M System Texas A&M System Texas A&M System Texas A&M System Texas A&M Health Science Center (HSC) Texas State University Texas Tech University Thrombovision University of Houston University of North Texas HSC University of Texas at Austin University of Texas HSC University of Texas HSC University of Texas HSC University of Texas HSC University of Texas HSC University of Texas at Tyler City Houston Austin Bryan, Houston Pecos College Station College Station College Station College Station Temple San Marcos Lubbock Houston Houston Industry Segment Biofuels Biopharmaceuticals Biofuels Biofuels Biomedicine Pharmaceuticals Biofuels Medical Devices Biomedicine Biodefense Pharmaceuticals Regenerative Medicine - Biomedicine Health Sciences Medical Devices Agricultural Biotechnology Medical Devices Biomedicine Pharmaceuticals Health Information Technology Biodefense Health Sciences Medical Devices Biomedicine Nanohealth Health Sciences Health Sciences Health Sciences Medical Devices Pharmaceuticals Environmental Health Project Description Algae feedstock for bioenergy Biotherapeutics for radiation countermeasures Conversion of non-food biomass into biofuels Algae Biofuels Consortium National Center for Therapeutics Manufacturing (NCTM) Texas BioEnergy Alliance Texas Institute for Preclinical Studies (TIPS) TAMU Center for Innovation in Advanced Development and Manufacturing (CIADM) Institute of Regenerative Medicine (IRM) joint venture with Scott and White and Temple Bioscience District Center for Multifunctional Materials Agricultural genomics R&D (recruited Dr. Wilkins) Platelet measuring device Center for Nuclear Receptors and Cell Signaling (recruited Dr. Jan-Ake Gustafsson) Center for Commercialization of Fluorescence Technology Imaging Research Center (FKA Neuroscience Imaging Center) Biomedical nanotechnology R&D now DBA Alliance for NanoHealth (ANH) (recruited Dr. Mauro Ferrari, now ANH President) Center for Translational Injury Research (CeTIR) Childrens Regenerative Medicine Comprehensive Facility for Animal Imaging Research (CFAIR) drug and medical device testing Texas Therapeutics Institute a consortium of UTHSC Houston, MD Anderson, and UT Austin Texas Allergy, Indoor Environment and Energy (TxAIRE) Institute Funding (in Millions) $.25 $1.7 $2.75 $4.025 $50 $3.4 $6.3 $40

$5.25 $4.2 $2 $1.5 $5.5

Fort Worth

$2.38

Austin

$3.67

Houston Houston Houston San Antonio Houston Tyler

$2.65 $4 $3.15 $4.1 $6.3 $3.93

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TEXAS EMERGING TECHNOLOGY FUND

Company/ Entity Vapogenix ViroXis Visualase Vital Art and Science (VAS) VUV Analytics City Houston San Antonio Houston Industry Segment Pharmaceuticals BioPharmaceuticals Medical Devices Project Description Development of a novel, non-opioid analgesics for pain management Botanically-based therapies for dermal conditions Image-guided laser technology for cancer therapy Home-based device to monitor retinal function (vision) for patients with macular degeneration and diabetic retinopathy Development of a molecular spectroscopy product operating at the nanoscale Development of patient-friendly injectables for indications in diabetes, epilepsy, and immunology Oral sorbent to remove toxins in the treatment of kidney and liver disease --Funding (in Millions) $2 $2.5 $.75

Richardson

Medical Devices

$1

Austin

Medical Devices

$1

Xeris Pharmaceuticals ZS Pharma TOTAL

Austin Fort Worth ---

Pharmaceuticals Pharmaceuticals ---

$1.9 $2 $277.89 M

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Appendix 2: Selected Industry Resources

Biodiesel Coalition of Texas (BCOT) at http://biodieselcoalitionoftexas.org A non-profit association website with statewide biodiesel industry information, links, and more. BioHouston at www.biohouston.org A Houston non-profit associations website with regional biotechnology business resources. BioMed SA at www.biomedsa.org A San Antonio non-profit associations website provides information about regional biomedical resources. Biotechnology Industry Organization (BIO) at www.bio.org A U.S. biotechnology industry association website with statistics, reports, charts, links, and more. Cancer Prevention and Research Initiative of Texas (CPRIT) at www.cprit.state.tx.us The CPRIT website contains information about this state agency including grant project details. The Center for Life Sciences Technology (CLiST) at www.texasbiotech.org The website of this Houston-based Center, housed at the University of Houston, provides information on regional resources and news. International Service for the Acquisition of Agri-Biotech Applications (ISAAA) at www.isaaa.org A non-profit international association website with global information on genetically modified biotechnology crops. Medical Devices Manufacturers Assn. (MDMA) at www.medicaldevices.org A U.S. industry association website with medical devices news, resources, and links. National Biodiesel Board (NBB) at www.biodiesel.org A national trade association offering industry news, biodiesel plants data, statistics, papers, links, and much more. National Institutes of Health (NIH) at www.nih.gov The U.S. government agency website includes many reports and statistics. National Science Foundation (NSF) at www.nsf.gov This U.S. government agency funds much of the nations basic research and publishes many reports and statistics on its websit e. The Pharmaceutical Research & Manufacturers of America (PhRMA) at www.phrma.org The major U.S. pharmaceutical industry associations website with news and industry information. Renewable Fuels Association (RFA) at www.ethanolrfa.org A U.S. industry association website with biorefinery locations data, industry production statistics, and much more. State Energy Conservation Office (SECO) at www.seco.cpa.state.tx.us The Texas Comptroller of Public Accounts SECO website offers information focused on cost -effective clean energy technologies in Texas, funding and incentives, SECO programs, and much more. Texas Bio Corridor Alliance at www.texasbiocorridor.org A non-profit organization formed to support and promote the life sciences along I-35 in Texas, from San Antonio to Dallas/Fort Worth. Texas Department of Agriculture Bioenergy www.texasagriculture.gov/Home/ProductionAgriculture/Bioenergy.aspx A Texas state agency website with information and data resources on Texas bioenergy. Texas Emerging Technology Fund (TETF) at www.emergingtechfund.com The Texas Office of the Governors TETF program website area providing TETF awards information, program contacts, news, and more. Texas Healthcare & Bioscience Institute (THBI) at www.thbi.com THBI serves as an advocate and resource for the Texas biotechnology industry and legislators. Texas Medical Device Alliance at http://www.texmda.org/ A non-profit organization established to assist medical device entrepreneurs and companies statewide. USDAs Economic Research Service (ERS) website at www.ers.usda.gov The ERS is the primary source of U.S. Department of Agriculture (USDA) economic information and research. Its website provides a wealth of data, including some international statistics.

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