SoCalBio presents findings of its workforce survey of talent needs in the Greater Los Angeles Metro Area.

1. BIOSCIENCE WORKFORCE
TRENDS IN THE GREATER
LOS ANGELES REGION
Ahmed Enany
President & CEO
Southern California Biomedical
Council (SoCalBio)
enany@socalbio.org
October 6, 2015
Stakeholders’ Meeting at Grifols Biologicals

2. 2
WHO WE ARE
www.socalbio.org
 The Southern California
Biomedical Council
(SoCalBio) is a trade
association serving the
biotech, medical device
and digital health
industries in Los Angeles,
Orange County and
adjacent communities.

3. 3
SOCALBIO FACTOIDS
 Built with support from Rebuild LA (RLA).
 Incorporated in December 1995.
 Chartered as a (C)6, non-profit trade association.
 Became fully functional by mid-1997.
 One of three CA regional life-science associations. The
others are Biocom (serving San Diego) & CLSA (serving the
San Francisco Bay Area).
 Private sector-supported and driven by entrepreneurs
united behind a collective action agenda to Translate our
region’s excellence in basic life-science research into high
paying jobs.
 More than 300 companies and organizations are members
including biotech, medtech, Dx, and digital health firms
along with allied service providers, venture investors, and
research universities & hospitals.

4. 4
THE GREATER LA BIOSCIENCE INDUSTRY FUNDAMENTALS
 A Healthier cluster -- albeit spatially dispersed – and is adding
jobs:
 Med device: Edwards Lifesciences, Medtronic Diabetes, St Jude
Cardiac Rhythm Division, Biosense Webster, Masimo, and Boston
Scientific Neuromodulation
 Biopharma & generics: Amegn, Allergan, Baxter and Grifols
 Digital health: Kareo, NantHealth, Predixion, Sentrian, Brighter,
HomeHero, and TigerText
 There are more than 1000 firms in the region employing
about 100,000 people.
 We are a medtech region with a growing (and getting
healthier) biotech subsegment
 E.g., Kythera Biopharma, Puma Biotechnology, Kite Pharma, Astellas
Pharma, Armagen, Xenor, C3 Jian, NantCell, MannKind, Liquid Genomics

5. 5
SOCALBIO SERVES ONE OF THE TOP FIVE BIOSCIENCE
INDUSTRY CLUSTERS IN THE COUNTRY

6. The industry is composed of very
small firms dispersed over a large
geography having limited resources
and little political clout

8. 8
SOCALBIO HELPS BIOSCIENCE COMPANIES
 Empowerment through Collective Action Focusing on:
 Mobilizing Resources Effectively
 Finance Capital
 Intellectual Capital
 Human Capital
 Fostering a Synergistic Eco-system
 Research Parks
 Partnerships
 Networking
 Advocacy & Building Social Support
 Putting Industry needs on the priority list of local governments
 Industry now perceived as an important pillar of growth

9. SOCALBIO WORKFORCE ACTIVITIES
 Organizes a workforce summit and community college outreach
events to coordinate industry/academia relations for talent
development .
 Inspires creation of new industry-oriented educational programs:
 Keck Graduate Institute in 1995.
 UCLA Biomedical Engineering Department in 1977
 USC Regulatory Masters program created after SoCalBio Chairman,
Alfred Mann, pledged more than $100 million to create AMI-USC to
accelerate USC biomed technology development
 Offers industry endorsement and guidance of training programs:
 Micro-assembly technician training program at College of the Canyons
 Biotechnology certificate at Irvine College
 Mobilizes resources to fund training:
 WIA-funding to support bioprocessing training at LATTC
 DOL-funding for biomanufacturing training at LAVC
 Advertises Job Openigs:
 SoCalBio advertises nearly 1000 open positions every year through its
web site and digital weekly newsletter
 Conducts market research to identify industry talent needs
9

10. THUMBNAIL SKETCH OF WORKFORCE NEEDS
 In an effort to identify industry talent needs, SoCalBio
ran a short survey in 2014 utilizing SurveyMonkey.com
 Sent to executives of Greater Los Angeles bioscience
establishments
 Netted 57 valid responses
 Survey questions can be viewed on the web at:
http://socalbio.org/wordpress/wp-
content/uploads/2015/10/SurveyMonkey_50809849.pdf
 The following segment of presents the survey’s findings
and identifies functional areas to be targeted by
workforce development professionals to address
industry talent needs.
10

11. LIST OF RESPONDENTS
11
Advanced Sterilization Products
API Vanguard
ArmaGen Technologies
BCN Biosciences
Biolase
BionCR Development
BioScreen Testing Services
Bioseal
BIT Source Scientific
Boston Scientific
Neuromodulation
C3 Jian
Calhoun Vision
California Transplant Services
Cellworks
Chromologic
Cianna Medical
Dako
Deton Corp
DxTerity Diagnostics
ECA Medical Instruments
Edwards Lifesciences
Encode Bio
Epeius Biotechnologies
Genomic Pathway
Gilead Sciences (Carlsbad)
Gilead Sciences (San Dimas)
Grifols Biologicals Inc.
Holomic
ImaginAb
Indi Molecular
Inscent
Integrity Bio
Intelligent Optical Systems
Kinamed
Kite Pharma
MannKind Corp
Medtronic Diabetes
Modulated Imaging
NanoIVD
Neumedicines
Norac Pharma
Oak Crest Institute of Science
Prolacta Bioscience
Quantimetrix
RAH Consulting Group
Response Genetics
St. Jude Medical
Stellar Biotechnologies
Synedgen
Systine
TherOx
Tissue-Grown Corp.
TMJ concepts
Vivoscript, Inc.
Xencor
YSL Bioprocess Development
Zymo Research Corp

12. SUMMARY OF SURVEY RESULTS
 The industry experienced healthy Job growth and expected to add
jobs at a rate higher than that of the private sector in the Greater
Los Angeles Metro Area.
 25% of future hires are expected to be in the regulatory, quality
and engineering categories
 Because many firms are emerging pre-product ventures, nearly
one of every future five hires is going to be in R&D
 One of every five new jobs is likely to be in manufacturing. This is
higher than the share of manufacturing of private sector jobs in the
Greater Los Angeles Metro Area.
 Most new jobs require college or graduate degrees. However,
manufacturing, lab research and information technology offer
opportunities not requiring 4-year college degrees or higher.
12

13. SURVEY RESULTS …. CONTINUED
 Engineering, quality, regulatory affairs top the list of job
categories where companies encounter difficulties filling jobs
regardless of industry segment.
 Biopharma respondents expressed more concerns about
filling manufacturing jobs than medical device respondents.
 It is a sign of concern that one third of new hires in the
pharma and device sectors required relocation.
 Survey respondents value training programs, if industry-
vetted, but most prefer to do their own formal or informal
training in-house.
 The majority of firms offer internships, but mostly to college
graduates and post-graduates as a way to screen job seekers
for full employment.
13

14. SURVEY RESPONDENTS BY GEOGRAPHY AND MARKET SEGMENT
0
5
10
15
20
25
Biopharma Devices Research/Testing/Medical Labs AgBio/Industrial
Los Angeles Orange Ventura/SB Inland Empire/North SD County
14

15. EMPLOYMENT TRENDS: ALL SEGMENTS SHOW HEALTHY GROWTH
7505
10235
453
45
2309
1322
152 30
1072 799
140 23
23 23
11
2
0
5
10
15
20
25
0
2000
4000
6000
8000
10000
12000
Biopharma Devices Research/Testing AgBio/Industrial
Local employment Last two year hires Next two year hires # of respondants
15

16. FUTURE HIRES BY INDUSTRY SEGMENT AND FUNCTIONAL AREA
Biopharma Devices Research/Testing AgBio/Industrial # of Future Hires %
Manufacturing 200 172 32 4 408 20%
R&D 156 184 30 7 377 19%
Regulatory/Quality 145 118 17 0 280 14%
Engineering 114 100 7 0 221 11%
Other 123 43 5 6 177 9%
Product/Process Dev. 109 47 12 2 170 8%
IT 105 29 12 1 147 7%
Supply Chain 59 65 6 1 131 6%
Lab Conduct/Skills 61 41 19 2 123 6%
Total 1072 799 140 23 2034 100%
16

17. % OF FUTURE HIRES BY MINIMUM EDUCATIONAL
REQUIREMENTS IN EACH FUNCTIONAL AREA
%ofFutureHires
0
5
10
15
20
25
30
35
40
45
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Graduate Degree
4-Year Degree
2-Year Degree
Com. College Certificate
HS Diploma
# Respondents
#ofRespondents
17

18. % OF PHARMA FUTURE HIRES BY MINIMUM EDUCATIONAL
REQUIREMENTS IN EACH FUNCTIONAL AREA
%ofFutureHires
0
2
4
6
8
10
12
14
16
18
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Graduate Degree
4-Year Degree
2-Year Degree
Com. College Certificate
HS Diploma
# Respondents
#ofRespondents
18

19. % OF DEVICE FUTURE HIRES BY MINIMUM EDUCATIONAL
REQUIREMENTS IN EACH FUNCTIONAL AREA
0
2
4
6
8
10
12
14
16
18
20
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Graduate Degree
4-Year Degree
2-Year Degree
Com. College Certificate
HS Diploma
Total Respondents–
#ofRespondents
%ofFutureHires
19

20. ENGINEERING, REGULATORY AFFAIRS AND QUALITY ASSURANCE TOP
THE LIST OF JOB CATEGORIES THAT HAVE BEEN DIFFICULT TO FILL
0
5
10
15
20
25
30
35
40
45
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
Difficult Average Simple # Respondents
#ofRespondents
%ofRespondents
20

21. ENGINEERING, REGULATORY/QUALITY AND MANUFACTURING TOP
THE LIST OF DIFFICULT TO FILL JOB CATEGORIES BY PHARMA
COMPANIES
0
2
4
6
8
10
12
14
16
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Difficult Average Simple # Respondents
#ofRespondents
%ofRespondents
21

22. ENGINEERING, REGULATORY/QUALITY, R&D AND INFORMATION
TECHNOLOGY TOP THE LIST OF DIFFICULT TO FILL JOB CATEGORIES
BY DEVICE COMPANIES
#ofRespondents
%ofRespondents
0
2
4
6
8
10
12
14
16
18
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Difficult Average Simple # Respondents
22

23. % OF RECENT HIRES WITHOUT RELOCATION BY INDUSTRY SEGMENT
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Pharma Device Dx/Testing AgBio/Industrial
23

24. SURVEY RESPONDENTS SEE VALUE IN INDUSTRY-VETTED
TRAINING PROGRAMS
0
5
10
15
20
25
30
35
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
Assist in my
hiring decisions
Reduce training
costs
Reduce
administrative
burden
Make no
difference in
hiring decision
Increase admin.
burden
Increase
training costs
#ofRespondents
%ofRespondents
24

25. THE OVERWHELMING MAJORITY OF RESPONDENTS PREFER
FORMAL OR INFORMAL IN-HOUSE TRAINING
0
5
10
15
20
25
30
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
#ofRespondents
%ofRespondents
25

26. INTERNSHIPS ARE OFFERED BUT MOSTLY TO COLLEGE OR GRAD.
STUDENTS AS A PRELUDE TO HIRING
0
5
10
15
20
25
30
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
College
students
Graduate
students
High school
students
Community
College
Students
No
Internships
Offered Now
Faculty
#ofRespondents
%ofRespondents
26

27. WHERE TO FOCUS TRAINING ACTIVITIES USING WIA RESOURCES
FIRST, BE MINDFUL OF THE CHALLENGES AHEAD
 Overcome industry’s reluctance to tap WIA resources
for training.
 Educational resources abound, but not synching well
with industry.
 A lot of talk about training. In reality, most of what is
done is classroom teaching.
 Although certificate programs are better than nothing
at all, employers don’t necessarily trust them.
 Bioscience industry training is on average an expensive
proposition.
27

28. WHERE TO FOCUS TRAINING ACTIVITIES USING WIA RESOURCES
SECOND, THINK AND ACT REGIONALLY AND DON’T INVENT THE
WHEEL
 All WIBs in the Greater Los Angeles Metro Area ought to
coordinate activities:
 Invest in programs that are strategic in nature.
 Invest in programs that are regional in scope.
 Invest in sustaining existing industry-vetted programs.
Examples:
 Bioprocessing technician training at LAVC, Citrus College and
Moorpark Community College
 Industry users: Amgen, Baxtala, Grifols and ProLacta Biosciences.
 Micro-assembly at College of the Canyons
 Industry users: Advanced Bionics, Boston Scientific Neuromodulation,
and Second Sight Medical Products.
28

29. WHERE TO FOCUS TRAINING ACTIVITIES USING WIA RESOURCES
THIRD, CREATE A BIOMANUFACTURING JOBS ACCELERATOR
 The focus initially can be training bio-processing technicians for
manufacturing cell therapy and protein-based products according
to cGMP standards
 The DOL-funded c3bc program at LAVC has all the elements needed
to create a C(3) accelerator at the Van de Kamp Innovation Center:
 Industry training standards, Curricula and staff, Industry-grade equipment,
Industry support, and a decent track record.
 Demand for entry-level bio-processing technicians is expected to be
robust for the foreseeable future:
 Expanding companies: Amgen (Thousand Oaks), Baxtala (Los Angeles),
Grifols (Los Angeles), Prolacta (City of Industry), and Gilead (San Dimas)
 Developers of biologics that are building manufacturing facilities now (Kite
Biopharma in Santa Monica and El Segundo) or potentially in the future
(Xencor in Monrovia, Neumedicines in Pasadena or NantCell in Culver City)
 Local biologics CMOs (AURO in La Habra)
29

30.  Why an Independent Biomanufacturing Center
 Nimble and flexible organization.
 Insulation from academic politics.
 Flexibility in partnering with various community colleges and
other training partners to tap resources.
 Ability to tap industry support: finance, equipment &
instructors
 Freedom and speed in targeting national funding sources (DOL,
NSF, etc.) or foundation money.
 Focus can be expanded to include other elements of
biomanufacturing depending on future changes in
technology and market dynamics:
 Example: 3-D printing of drugs (Washington Post)
 Center can be beneficial to other local FDA-regulated
industries, such as food production and cosmeceuticals.
BIOMANUFACTURING JOBS ACCELERATOR …. CONTINUED
30

31. WHAT IS NEXT?
 The following training recommendations are generated
from interviews with survey respondents and SoCalBio
bioscience and digital health companies:
 Emphasize upgrading skills of incumbent employees.
 Tap local resources such as the USC ISU and ICT to develop virtual
reality modules to help in training and reduce its cost .
 Target functional areas such as:
 Quality assurance and regulatory affairs
 Digital skills (Big data & conformity with HIPAA & FDA).
 Supply chain management.
 Telemedicine equipment technicians.
 3-D printing.
31
SoCalBio Is your Partner in Talent
Nurturing and Retention