California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute.

The Trade Association, BayBio released a study, BayBio: IMPACT 2009, providing a broad
overview of the impressive accomplishments and enormous potential of California's life sciences
industry - the most productive life science research cluster in the world.

The report identifies 210 pending treatments, technologies and cures that represent more than
$50 billion in investments for new jobs, facilities and equipment in the immediate future. The
report challenges California's leadership to pledge support for the life sciences community
through legislation, regulation and support for state-level investment, particularly those which
support science education. "We need California to get its priorities right," said Matt Gardner,
president and CEO of BayBio. "Promoting investment in the innovation economy is rightfully a
main concern, but we ignore the fruits of that research by letting multimillion dollar manufacturing
gems like Genentech expand in a neighboring state with a favorable tax policy. This does an
enormous disservice to the fiscal health of the state and the job opportunities for Californians with
community college degrees."

BayBio: IMPACT 2009 Key Trends
-- Patients have access to more treatments than ever before. California's life sciences companies
   in 2007 had 984 treatments and technologies on the market; in 2008 California companies were
   responsible for 1,294 treatments.
-- A turbulent market will lead companies to invest in improved human capital in order to contain
   costs in a down economy.
-- California's budget crunch will greatly affect education. In particular, science education will continue
   to fall short of meeting the employment needs of growing companies.
-- As the current economic landscape shifts, funding dollars are tightening, M&A is ramping up, and
   risk-tolerance is plunging.
-- The coverage and reimbursement environment facing biotechnology manufacturers today is
    increasingly challenging for companies seeking investment, particularly with the national focus
    on health care reform and economic prudence.
-- Drug companies and regulatory agencies are looking to the emerging field of personalized
   medicine to improve patient care, reduce health care cost and enhance return on investment
   for research dollars. This will incur a demand for a workforce more familiar with the latest
   technology and techniques in analyzing blood samples, tissue samples and genomic tests.

Proposed Legislative Action to Capture Manufacturing

Priority actions, as identified by BayBio should include:
-- Enact a statewide strategy for math and science teacher attraction and retention
-- Expand allowable uses for the California Infrastructure and Economic Development Bank
-- Incentivize local communities to zone biotech regions in their local general plan master planning
-- Establish a major economic incentive for bioprocessing and biomanufacturing investments

"Twenty-first century medicine requires twenty-first century legislation and regulation, and BayBio
is committed to that goal," Gardner continued. "We have hundreds of products in development,
but our industry has no assurance of success, since there is much more to be done. We look
forward to working with our members, investors and elected officials to continue bringing a robust
pipeline of therapies to the patients who need them."

"BayBio: IMPACT 2009 serves as a reference for critical debates of state and national interest,
including economic competitiveness and healthcare reform," said Pierre Cassigneul, president and
CEO of XDx, a molecular diagnostic company based in Brisbane, Calif. "Throughout the course of
2009, BayBio and California's life sciences industry will work with legislative leaders and invite them
to experience first-hand the success of our innovative businesses."

Findings from BayBio: IMPACT 2009 will be released today in San Francisco, in Sacramento on
February 3, and in Washington D.C. in March. The events will involve industry representatives and
policy makers, and include keynote speeches delivered by leading biotech executives.

I am Tim Johnson and this has been the California Business Minute

For further information see www.BayBio.org