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Pharmaceutical industry

California Life Sciences Companies Project $1 Billion in New Sales over Three Years

Strategic Insights

— 2 min read

Seventeen California life sciences companies participated in the California Biotechnology Trade Mission to BioEurope as delegates, projecting $590 to $760 million in new European market business over the coming three years. This mission was the third of three successful trade missions organized by Alameda-based ACET (Advancing California's Emerging Technologies) in 2003. The California missions facilitated relationships between delegates and potential overseas partners and investors, resulting in over $1 billion in new sales resulting from the mission within the next 6 months to 36 months.

Key Takeaways:

  • The California Biotechnology Trade Mission to BioEurope, a partnering conference in Frankfurt, projected $590 to $760 million in new European market business over the next three years.
  • Seventeen of the 21 participating companies reported results, with the remaining four companies not providing estimates.
  • The mission was part of three successful trade missions in 2003, with 15 California companies participating in the BioSquare mission to Lyon, France, and eight participating in the BioTechnica mission to Hannover, Germany.
  • Delegates to the combined three 2003 trade missions projected more than $1 billion in new sales resulting from the mission within the next 6 months to 36 months.
  • The California missions, organized by ACET, facilitate relationships between delegates and potential overseas partners and investors.
  • The life sciences companies involved in the mission were engaged in a diverse range of activities, including health-related diagnostic tools, pharmaceutical discovery and development, testing tools for new drug development, bio-informatics, and genetics and gene sequencing.
  • Jeff Peterson, CEO of Target Discovery, Inc., stated that the CA Delegation provided a subsidy and additional networking venues that added value and impetus to earlier and more effective development of potential trade and strategic collaboration ties outside of the USA.
  • John E. Minnick, Sr. Associate of Sagres Discovery, Inc., credited the California Delegation with providing a forum to make initial contacts and meeting Venture Capital firms from Germany and Business Development professionals from the US, Canada, and Europe.

Statistics:

  • $590 to $760 million in new European market business projected by 17 California life sciences companies over the next three years.
  • $1 billion in new sales projected by the combined three 2003 trade missions within the next 6 months to 36 months.
  • 6 to 36 months: timeframe for $1 billion in new sales resulting from the trade missions.
  • 5% to 10%: estimated percentage of new sales that companies aim to achieve, resulting in major improvements in human health and healthcare, thousands of new jobs in California, and hundreds of millions of dollars in new investment.
  • $1 million: grant from the U.S. Department of Commerce Market Development Cooperator Program (MDCP) funding the 2003 trade missions.
  • 2:1: matching resources provided by the three partnering organizations (ACET, CalEPA, and BAWTC).

Sources:

  • "California Life Sciences Companies Project $590 to $760 Million in New European Market Business Over Next Three Years," PRNewswire, January 27.
  • Interview with Samuel Doctors, President & CEO of ACET.
  • Interviews with Jeff Peterson, CEO of Target Discovery, Inc., John E. Minnick, Sr. Associate of Sagres Discovery, Inc., and John Reddington, Senior Vice President of Valentis, Inc.

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