Working Paper IV - Programming Appendices

Working Paper 4
Programming Appendices
BioDistrict New Orleans

January 2012 revised
Working Paper 4
Table of Contents
January 2012, revised
Table of Contents
Section:
01
Appendix A Real Estate Programming
02
Appendix B Biosciences Programming i Executive Summary 1-1 Section 1: Introduction 2-1 Section 2: Bioscience Industry Overview 3-1 Section 3: New Orleans Potential for Hosting a BioScience Cluster
02
Appendix B, continued Biosciences Programming 4-1 Section 4: Areas of Research Strength 5-1 Section 5: Translating Successful Models to New Orleans
Important Note:
This document contains the appendices for Task 4 (Programming) completed as part the BioDistrict Planning project. The summary for Task 4 is found in Working Paper 4 (Phase 1 Overview), which is posted on the BioDistrict New Orleans website: www.biodistrictneworleans.org.
03
Appendix C Educational Institutions and Hospital Facility Programming
Acknowledgements
The AECOM team would like to acknowledge the BioDistrict Board and staff for their input and engagement during this Task. The BioDistrict New Orleans Action Plan is a product of efforts by many individuals and organizations that have spanned over a year and a half. Thank you to all the public, private, community and individual stakeholders who provided their valuable ideas and comments. A special thank you to those who took time out of their busy schedules to attend visioning sessions, workshops and formal presentations. This report has also been developed in coordination with the entire AECOM team. The team includes: AECOM Design + Planning, AECOM Economics, AECOM Transportation, Bright Moments, Cannon Design, CBRE, Chester Engineers, the Ehrhardt Group, ARC Enterprises and Southern Strategy Group of Louisiana.
Appendix B:
Biosciences Programming
Executive Summary
BioDistrict New Orleans | Executive Summary | January 2012 | Page i
Executive Summary
The AECOM Team brings together multi-disciplinary firms and expertise, including CBRE, AECOM Economics, and ACR Enterprises to study the market and economic impacts and opportunities of the BioDistrict area. Additionally, an Economic Impact Study by ACR and Dr. James Richardson and Heidelberg, and a Workforce Study by Research Edge have provided input which has been incorporated into the preparation of the Master Plan for the BioDistrict New Orleans development project. The collective focus of these unified efforts was to: Identify medical / bioscience conditions and trends in New Orleans, Louisiana, and the United States Evaluate local universities and institutions areas of expertise in medical research and bioscience Identify potential public / private partnerships Help set the stage for the essential dialogue among participating institutions that will be needed to build the scientific foundation for BioDistrict New Orleans moving forward.
the content of this report and are presented as a starting point for dialogue among the key medical, academic, government, corporate, and scientific institutions whose participation and vision will be essential to the development of the BioDistrict project.
The Report at a Glance

The biotechnology revolution is the most important development in the history of medical research and has given rise to a thriving industry. National examples show that research collaborations cutting across disciplines and educational institutions are fueling the development of biotechnology clusters, translational research facilities, and new centers that qualify for NIH funding requiring multi-institutional participation. New Orleans is rich in the academic assets necessary to seed a biotechnology cluster (BioDistrict) including an impressive array of universities with research and teaching strengths, academic health centers, medical providers, and research institutes investigating different but complementary problems in medical research. Decisions as to how the New Orleans academic community will participate in such an effort will need to be made by grassroots scientists/physicians, and by the leaders of their institutions. Research areas with strong opportunities and national and local interest include: Cancer, HIV/AIDS, cancer, cardiovascular disease, renal disease and hypertension, neuroprotection & rehabilitation. The potential for establishing pharmaceutical and generic drug development facilities may further enhance these projections.
This Task 4 Report summarizes the observations and recommendations of the AECOM Team along with the GCR Dr. Richardson/Heidelberg and Research Edge reports which will set the program and drive the key land use allocations for the biosciences industry needs moving forward.
Introduction
In preparing this report, representatives from the AECOM Team met with a broad array of stakeholder groups, including representatives of universities, businesses, and civic and community organizations. The input of these individuals was invaluable in describing the current strengths, needs, and opportunities of the biomedical community in New Orleans and the complex issues that will have to be considered in creating the BioDistrict. Issues and opportunities raised in these discussions are central to
Economic Benefits at a Glance In 20 years, the BioDistrict will generate: 34,000 jobs (direct & indirect creation)
3600 construction jobs $3.3 Billion in local economic activity $2.0 billion increased local earning $1.4 billion increase local tax revenue $1.9 billion increased state tax revenue 11.6 million SF new/ renovated buildings
BioDistrict New Orleans | Executive Summary | September 2011 | Page ii
Bioscience Industry Overview

The biotechnology revolution is the most important development in the history of medical research; its pivotal technology has been the ability to manipulate DNA, giving rise to the biotechnology industry. In the United States, biotechnology companies first arose in centers rich in academic talent (e.g., San Diego, San Francisco, and Boston), and these cities subsequently became the locus of clusters of biotechnology strength with enormous impact on their local economies ranging from heightened employment in spin-off companies to the growth of support industries including the legal profession and venture capital firms. Despite todays economic slowdown and a reduction in the availability of venture capital, biotechnology remains a growth industry. Numerous states have been successful in growing their economies through creating biotechnology clusters around academic centers, but thus far Louisiana has not succeeded in doing so.
Moreover, a number of buildings within the BioDistrict are available for effective adaptive reuse. Finally, in establishing the BioDistrict, government has invested in biotechnology as a potential stimulus to the economy, which in other jurisdictions has proven a necessity in developing successful biotechnology clusters.
Areas of Research Strength

A growing number of national examples show that research collaborations cutting across disciplines and institutions are fueling the development of biotechnology clusters, translational research facilities, and new centers that qualify for NIH funding requiring multi-institutional participation. Decisions as to how the New Orleans academic community will participate in this new environment will need to be made by grassroots scientists/physicians and by the leaders of their institutions. Nonetheless, in our assessment of the New Orleans research environment, we have identified a number of existing strengths upon which collaborations and new initiatives could be built, as well as weaknesses that could be strengthened through collaborative efforts. Strong research areas presenting a number of opportunities, many of which relate to diseases or injuries of national as well as local interest include: cancer; HIV/AIDS-related research; cardiovascular disease, renal disease and hypertension; infectious disease; and neuroprotection and rehabilitation The newly created Louisiana Cancer Research Consortium provides a clear opportunity to strengthen cancer research in the region and seek cancer center designation from the National Cancer Institute. Suggestions were also made for establishing a clinical research unit to provide (a) the infrastructure that multiple institutions need to make patient records available to scientists, (b) the availability of tissue banking, and (c) the infrastructure for clinical trials and interactions with industry.
New Orleans Potential for Hosting a Bioscience Cluster

New Orleans is rich in the academic assets necessary to seed a biotechnology cluster, including an impressive array of universities with research and teaching strengths, academic health centers, medical providers, and research institutes investigating different but complimentary problems in medical research. And new facilities are either being planned or are under construction with the potential to bring fresh energy and capacity to the city. These include the new Veterans Affairs Hospital, the Louisiana Cancer Research Consortium, the University Medical Center, and the New Orleans BioInnovation Center, which is also an ideal site for outreach programs such as a Soft Landing Center (see Section 5) and for supporting Louisianas Blue Ocean policy1 (Section 3).
Blue Ocean is a business metaphor from the 2005 book by W. Chan Kim and Renee Maugorgne entitled: Blue Ocean Strategy: How to Create Uncontested Market Spaces and Make Competition Irrelevant. Louisianas Economic Development Agency has developed a specific strategy in this regard, which is overseen by a state board and the Louisiana Innovation Council.
BioDistrict New Orleans | Executive Summary | January 2012 | Page iii
Translating Successful Models to New Orleans

In assessing the real estate challenges that face the BioDistrict project, we have relied upon information from nine other bioscience clusters. These data suggest that the BioDistrict project could have potential space absorption of 175,000 SF over the first 5 years, 625,000 in years 6-10, and 800,000 in years 11-20, with a 20-year potential of 1.6 million SF. A potential path to diversify and augment the New Orleans economy is to create an environment in which major medical services, medical research grants and contracts, and new and engaging medical products can be generated by New Orleans institutions. These include the current medical schools, the research centers, the proposed VA Hospital and University Medical Center, and other existing and potential institutions within BioDistrict New Orleans. There will be a surge of economic activity related to major construction projects during the first five years of development with the number of net new jobs averaging nearly 5,500 over this time period. It is fully anticipated that there will be further construction activities as new businesses locate in the BioDistrict. Clearly, the ultimate focus is on the permanent economic activity that will be forthcoming once the facilities are constructed. The VA Hospital and the University Medical Center, as well as other projected developments in the BioDistrict, will create or save an estimated 5,500 permanent jobs in the first five years of operations. These 5,500 direct jobs will lead to nearly 9,700 total jobs, including both direct and indirect employment. Personal earnings over $350 million will be created and/or saved infusing state tax collections with over $25 million and local tax collections with nearly $22 million. Over a ten-year period, once the projects are fully operational, the new or saved jobs related to BioDistrict New Orleans investments are estimated to be 7,600 with these net jobs creating an additional 5,800 indirect jobs for a total employment impact of 13,400 jobs. After 20years, it is estimated that 9,800
jobs will have been created or saved in the BioDistrict. This suggests a regional economic impact of over 17,200 total jobs, including both direct and indirect employment. Even more compelling than the employment projections presented within this report are the case studies of other biosciences districts around the United States. The employment and economic impact projections within this report are fundamentally conservative. In communities such as Houston, Birmingham, Cleveland, and LaJolla, research activity and accompanying private investment have resulted in even greater employment and economic impacts. In these other cities, their individual investment in the biosciences had paid off handsomely. But this payoff did not come in a day or two; rather, the manifold economic benefits that they have witnessed have been the result of long-term and sustained commitments.2
Conclusions and Next Steps

Our assessment suggests that New Orleans is potentially well suited to become a biotechnology cluster and that the BioDistrict New Orleans development is a unique, once in a lifetime opportunity for the academic medical centers and educational institutions of New Orleans to come together to create a bioscience cluster capable of generating more impact than could be achieved by any single organization acting alone. The successful creation of the BioDistrict will have a host of benefits for research and medical care in New Orleans: this endeavor will create educational and employment opportunities for New Orleans students, trainees and residents, while fostering economic development within the city and elsewhere in Louisiana. The next step to keep momentum going will require buy-in from state and city political leadership, the business community, foundations, and academic organizations whose participation is essential for success. The leaders of these organizations or their
GCR/Dr. Richardson/Heidelberg Economic Impact Study, October 2010
BioDistrict New Orleans | Executive Summary | September 2011 | Page iv
designates need to begin a joint planning effort to ensure that the remarkable opportunities presented by the BioDistrict project for the rejuvenation of New Orleans and the creation of regional economic wealth are embraced and pursued.
Section 1: Introduction
BioDistrict New Orleans | Introduction | January 2012 | Page 1 - 1
Introduction
Background and Purpose of this Report
In 2005, the Louisiana Legislature created through ACT No. 487, the Greater New Orleans Biosciences Economic Development District (GNOBEDD), a state agency with a mandate to create a BioDistrict within New Orleans spanning 1,500 acres within the Downtown and Mid-City neighborhoods. The vision of the BioDistrict is to build a globally competitive economy for the New Orleans region to diversify our opportunities and build a community through innovation that contains the healthiest, safest, smartest, and most sustainable neighborhoods in America. The BioDistricts overall mission is to: Facilitate the creation of high-paying jobs in the region by increasing the current health and biosciences workforce. Grow the academic research institutions in the region by increasing investment in clinical, bioscience, and health-related research and training. Enhance interdisciplinary collaboration among the biosciences by locating key research institutions and private sector bioscience companies within the designated biosciences district. As part of a master planning effort to implement the vision of launching a world-class bioscience cluster in New Orleans, a team led by AECOM was retained to analyze trends within the biomedical and life sciences industries nationally, and to assess strengths and potential directions for the development of these industries locally. In addition, a parallel study effort, prepared by GCR and Dr. James Richardson and Mr. Roy Heidelberg, measured the potential Economic Impact Analysis Study of the new VA Hospital and University Medical center on the BioDistrict
Study area. This GCR study identifies large economic benefits as a result of these two catalytic projects. Along with the beneficial economic impacts identified by the GCR study Companion Health Care and Biotech Workforce study was also completed by Research Edge to identify the new jobs that would need to be created as a result of these new projects. Together, the AECOM Teams research, the GCR economic impact projections, and the Research Edge workforce modeling study all harmonize to illustrate the vast potential of the BioDistrict on the local and regional economy.
Interview Process
The AECOM Team conducted numerous interviews with representatives from a broad array of stakeholder organizations, including universities, businesses, and civic and community organizations. Exhibit 1.1 lists the organizations and institutions that participated in the interview process. For a full list of interviewees, see the Task 1 Deliverable, Stakeholder Interviews. The interviewee input was invaluable in describing the current strengths, needs, and opportunities of the biomedical community in New Orleans and the complex issues that will need to be considered in creating the BioDistrict. We thank all of the participants for their time, generosity, and expert advice, which was critical to helping us prepare this report.
A Springboard for Further Discussion

This Task 4 Report prepared by the AECOM Team addresses the following areas: Bioscience Industry Overview New Orleans Potential for Hosting a Bioscience Cluster Possible Areas of Research Focus
BioDistrict New Orleans | Introduction | January 2012 | Page 1 - 2
Translating Successful Models to New Orleans Conclusions and Next Steps The sum total of this report is intended as a framework for discussion and collaboration, a springboard to advance and foster critically needed dialogue among the key medical, academic, governmental, corporate, and scientific institutions in southern Louisiana. Their participation and vision will be essential to the development of an internationally competitive BioDistrict, which we believe represents a unique, once-in-a lifetime opportunity for New Orleans and the region.
Exhibit 1.1 BioDistrict Study Interviews: Participating Participating Universities, Institutions and Civic Leaders
Audubon Institute BioInnovation Center Delgado Community College Departments and Administration Department of Health and Hospitals Downtown Development District Greater New Orleans Inc. Louisiana Fund LSU: Facility and Administration LSU Veterinary School Louisiana Technology Council LA Hospital Association Louisiana Cancer Research Consortium New Orleans Redevelopment Agency New Orleans Health Department New Orleans Saints New Orleans Hornets Meharry Medical College Ochsner Health Systems: Facility and Administration Pennington Biomedical Research Center: Facility and Administration Regional Planning Commission Sec'y Louisiana Economic Development State Division of Administration Southern University of New Orleans: Facility and Administration Tulane: Facility and Administration Tulane Primate Center University of New Orleans: Facility and Administration VA Healthcare Systems Xavier University: Facility and Administration
Section 2: Bioscience Industry Overview
BioDistrict New Orleans | Bioscience Industry Overview | January 2012 | Page 2 - 1
Bioscience Industry
Overview
The biotechnology revolution, begun almost 60 years ago, and is arguably the most important development in the history of medical research. It has fundamentally changed the ways we investigate human biology and provided new strategies for understanding, treating, and even preventing previously unsolvable diseases. The revolution has been based on advances in the following areas: Molecular genetics Protein biochemistry Imaging Medical devices
structures within living cells, both healthy and diseased. MRI, CT, and PET scans provide highresolution analyses of human anatomy and metabolism. And functional MRI and diffusion tensor imaging measure, non-invasively, brain tracts and activity in the living human brain, which is the frontier of biotechnology for the 21st Century.
Medical Devices
The number of medical devices used to diagnose disease and to control and replace damaged tissues is growing exponentially. Bioengineers expert in human physiology have created machines such as pacemakers and drug-delivery devices that can measure and regulate normal and abnormal activity within the body; prosthetic devices are available to replace damaged organs and limbs; and methods are being developed to alleviate the effects of neurodegenerative diseases and elevate the mood of patients suffering depression. These and other advances in biomedical research are being aggressively pursued in both academic laboratories and industry, with researchers from both often working together. The challenges are huge, as are the potential returns on investment, as measured in reduced human suffering and the creation of new wealth through the development of advanced technologies and new drugs.
Molecular Genetics
Watson and Cricks Nobel-Prize winning work in 1953, in revealing the double helical structure of DNA, yielded the first clues as to what a gene is, how genes are transferred from one generation to another, and how genes can be mutated to cause disease. Knowledge of DNAs structure led to the central dogma of biology: that DNA provides instructions to RNA, which controls the production of proteins. And it led to the isolation of enzymes that alter DNA, which in turn led to the technology of gene splicing and the regulated production of naturally occurring proteins such as insulin for treating diabeteslaunching the biotechnology industry. Molecular genetics also led to sequencing the human genome, which has unlocked the means for understanding disease and for drug development.
The Rise of Bioscience Research Clusters

The advances described above and others have fundamentally changed the nature of the bioscience research enterprise in the 21st Century. Today, even the most successful academic organizations recognize that to solve major health problems, one cannot rely on a single investigator working alone in their lab. Rather, success requires interactions of scientists with complimentary interests and different expertise. For that reason, efforts have been launched worldwide to overcome organizational barriers, whether these limit interactions among disciplines or within or between institutions. Numerous examples can be cited that illustrate the importance of collaborations; several are discussed in this report. In the United States, centers of biotechnology excellence have developed mainly in clusters near
Protein Biochemistry
Methods for identifying, sequencing, and determining the three-dimensional structure of proteins have revealed many of the key molecules that regulate cellular behavior, from receptor molecules on the cells surface that react with external ligands, to the intracellular signaling proteins that control cell function, including division, metabolism, and cell deathproteins that are ideal targets for drug development.
Imaging
Imaging has undergone a revolution of its own. New methods are now available to examine molecules and
academic institutions. One of the best examples is La Jolla, California, a neighborhood of San Diego that is home to the University of California San Diego, the Salk and Scripps Institutes, the Sanford Burnham Institute, La Jolla Institute of Allergy and Immunology, and the Neuroscience Institute. This concentration of academic talent led in the early 1960s to the establishment of Hybritech, which developed the PSA test and was the first of over 500 biotech companies to spring up in the region, many as spin-offs from local academic research centers. San Diego has also attracted headquarters or branch plants of more than 7 major pharmaceutical companies and 29 venture capital firms with over $13 billion under management. San Francisco and Boston, two other cities rich in academic talent, have emerged as highly successful biotech clusters as well. Stanford University in Palo Alto, CA, has created the Bioscience Bio X project, which is a visionary effort to image and stimulate life from molecules, to restore the health of cells and tissues, to decode the genetics of health and disease, and to design therapeutic devices and molecular machines. This bold initiative has attracted scientists from across the campus, for it requires talents and tools that erase disciplinary and departmental boundaries. And the Broad Institute in Cambridge, MA, (see sidebar) was founded as a joint effort by Harvard University and the Massachusetts Institute of Technology (MIT) to exploit the power of genomics to understand human disease, based upon a spirit of unlimited possibilities and open collaboration. In Canada, the Ontario Institute for Cancer Research was established around a scientific hub in Toronto that interacts with scientists housed in Ontarios major universities, all collaborating around joint projects focused on major problems in cancer research that offer promise for improved medical care and also the commercialization of intellectual property. These examples illustrate the growing realization among academic organizations that true progress will come only when the most creative scientists agree to work together across disciplines and institutional boundaries to achieve common ends.
Case Study
Competing Universities, One Vision

The Broad Institute - Cambridge, MA
According to The Broad Institute website:
The Broad Institute was founded in 2003...through the extraordinary generosity and remarkable vision of Los Angelesbased philanthropists Eli and Edythe Broad. The Broads recognized the inherent promise of genomics to change medicine, and they saw the need to empower scientists to work together to realize that promise. Their founding gift was intended to provide the resources necessary to allow the institute ten years to build and prove a new, collaborative model of science focused on transforming medicine.
Formed initially as a partnership between the Broads, Harvard University and its five affiliated hospitals, Massachusettss Institute of Technology (MIT), and the Whitehead Institute for Biomedical Research, it is now a 501(c)(3) nonprofit organization. The Broad family provided an initial investment of $100 million to fund a ten-year experiment in scientific culture and organization. This investment has since increased to $600 million, making it the largest single gift to a national biomedical academic research center to date. While the two competing universities had operated independently for decades, each university had seen the benefits of their prior collaborative research efforts in the early 1990sMIT formed the Whiteman/MIT Center for Genome Research (CGR) that was a flagship of the Human Genome Project while Harvard formed the Institute of Chemistry and Cell Biology (ICCB) to facilitate collaborative efforts among scientists throughout the State. The Institute was launched in 2004 and is located in three buildings in Cambridge. Both Harvard and MIT also made initial investments of $100 million, which attracted similarsized investments from the Starr Foundation and the Stanley Medical Research Institute. The Juvenile Diabetes Research Foundation, the Prostate Cancer Foundation and other entities have financed the institutes work. The Institute strives to bring together scientists from institutions located globally to work on major interdisciplinary problems without having to leave their positions elsewhere. Research programs at the Institute revolve around biotechnology, including cancer research and genome biology, chemical biology, metabolism and
Case Study
psychiatry. Exhibit 2.1 Components of a Successful Bioscience Cluster
sector research and development companies (see Exhibit 2.1). Generation of spinoff companies that benefit from productive scientific interactions among researchers in academic institutions and business enterprises. Inflow of new money through research contracts, grant funding, and venture capital investments. Establishment of scientific incubators in which researchers are provided space and resources to develop their ideas under the guidance of business professionals who are experienced in bringing ideas and products to market. Enhanced employment opportunities for highly paid personnel, including executives, managers, research scientists, and professionals in the legal, financial, and venture capital industries; employment also for trained research assistants and for staff providing personal and professional support services, often through new or existing local companies (see Exhibit 2.2). A rich training environment for undergraduate and graduate students and postdoctoral fellows, including medical doctors and PhD scientists with expertise in a variety of complimentary disciplines. Some trainees will find permanent employment within their organizations. Collaborations stemming from efforts to increase efficiency and reduce redundancy that can lead to the establishment of core facilities, shared resources, and professionally staffed central facilities working in partnership with academia and business. An example would be a central facility that plans, conducts, and seeks funding for clinical trials. Provision of lifestyle amenities to the community by providing landscaped open space and recreational facilities, as well as access to commercial districts, which typically include restaurants, hotels, retail stores, and related services. Creation of a critical mass of human and commercial activity that attracts scientific and nonscientific research and business disciplines (see Exhibit 2.3).
Source: CB Richard Ellis
The success of San Diego and bioscience research clusters elsewhere has led other metropolitan areas to develop research parks in which to exploit the discoveries emanating from universities within their boundaries. On ensuing pages of this section, sidebars present case studies of three successful biotech concentrations: Broad Institute, MA Research Triangle Park, NC Georgia Research Alliance
Benefits of Bioscience Research Clusters to the Region

Biotech clusters and successful research parks have provided demonstrable regional benefits, including: Creation of a science culture bringing academic leaders together with business people, entrepreneurs, and public servants charged with enhancing local economic development. Seeding of important cross-fertilization and technology transfer initiatives among researchers at institutions, public laboratories, and private
Exhibit 2.2 Biomedical Employment Opportunities
Exhibit 2.3 Bioscience-Associated Disciplines
Scientists The range of employment opportunities for scientists is virtually limitless, depending upon the research and medical areas that are identified for development. Expertise can range from carrying out the most sophisticated analyses of molecular structure, to biochemistry, pharmacology, bioengineering, bioinformatics, and computational biology, to name just a few. Equally broad are the medical disciplines and research areas that can be studied by clinician scientists. Research and Development Laboratory assistant Research associate Research fellow Quality Control Quality control analyst and engineer Health/safety specialist Quality assurance auditor Validation engineer and technician Clinical Research Clinical data operator Clinical programmer analyst Clinical research associate and specialist Technical writer Regulatory Affairs Regulatory affairs specialist Documentation coordinator/processor Information Specialist Library assistant Programmer analyst Marketing and Sales Market research analyst Sales representative Customer service representative Technical services representative Manufacturing and Production Process development engineer Production planner/scheduler Manufacturing technician and associate Packaging/distribution handler Instrument/calibration technician Administration Human resources representative Patent agent Buyer Public relations consultant Patent manager
Source: CB Richard Ellis and BioDistrict New Orleans
National Economic Trends

A number of key economic trends point to a vibrant bioscience industry well into the future: Bioscience is now a rapidly growing industry sector for many regional economies, and the U.S. Department of Labor projects continued aboveaverage growth for the next decade. The industry continues to see high wages, with the average salary increasing from $70,900 in 2006 to $77,600 in 2008, according to Battelle analysis of BLS data. Bioscience education in colleges continues to grow despite declines in the US position in math and science education, suggesting a potential shortage of future workers. The biotech industry consists largely of 1,500 companies, with a market capitalization of $400 billion. This represents a sharp turn in direction for venture capital investment following the dot.com bubble in 2000 (see Exhibit 2.4). The biotech industry in Louisiana consists of 507 companies employing 8,046 people.
Exhibit 2.4 Public BioTech Industry Trends Market Capitalization
companies, over $35 billion came from California (see Exhibit 2.6).
Exhibit 2.6 Public BioTech Company Revenue in Select Geographies
Source: BIO.org Guide to Biotechnology 2008
While stock market values have fluctuated dramatically in the past decade, the industrys revenue growth and R&D expenditures have continued to climbdoubling from 1997 to 2006 (see Exhibit 2.5). Nonetheless, a big unknown is how the new national healthcare legislation will affect the industry.
Exhibit 2.5 Public BioTech Industry Trends Revenue vs. R&D Expense
38 states continue to offer R&D tax credits, even in these economic hard times, including premiums for work done by in-state universities. Twenty states offer tax credits to venture capital investors in technology companies.
Venture Capital Trends: National and LA

Due to the worldwide financial crisis, venture capital investment in the bioscience sector fell over 36 percent in 2009 after five years of steady growth: 2004 - $7.7 billion 2005 $10.3 billion 2006 $10.3 billion 2007 $11.7 billion 2008 $12.3 billion 2009 $7.8 billion
Geographic Concentrations of U.S. Bioscience

The vast majority of larger public bioscience companies in the United States are concentrated in California and New England, as these were the first regions of the country to develop bioscience clusters. Of the $54 billion in annual revenue reported by public
70 percent of all venture capital is concentrated in California, Massachusetts, New Jersey, Pennsylvania, and Texas; commensurately, much of the $21 billion in annual R&D expenditures is concentrated in those states (see Exhibit 2.7). Investments in biomedical research offer a wide variety of employment opportunities for individuals with degrees ranging from a high school diploma to an M.D. and Ph.D. Employment opportunities will also be
made available for people with training in management, marketing, sales, financing, and information processing. Biomedical job categories suggesting the wide range of positions within the industry are listed in Exhibit 2.2. In Louisiana, venture capital investments in the bioscience industry in 2009 were only $29.2 million, representing less than 0.5 percent of the national total and placing the state #42. Over the same period, Louisiana venture capital investment was less than 1/3 the national average. (Source: Battelle/ BIO State Bioscience Initiatives 2010).
Exhibit 2.7 Public BioTech R&D Expenditure in Select Geographies
Case Study
Strength through Collaboration

Research Triangle Park, Raleigh-Durham, NC RTP is the largest and longest continually operating research park in the United States, encompassing 7,000 acres and more than 170 companies occupying 22.5 million SF of developed space. RTPs success stems from the heavy involvement of three major local universities (Duke University, University of North Carolina and North Carolina State University), a host of other organizations, and the activism of several government leaders. The catalyst for RTP stemmed from the need to reverse negative economic trends facing the statewide economy in the 1950s, with per capita income among the lowest in the entire United States (35% below national average) and an economy dominated by low-wage manufacturing industries. The RTP faced many challenges following its formation. The area was not known for innovation or entrepreneurial activity and the organization had limited funds to acquire and improve land and promote the Park. The money was raised from corporations and institutions interested in helping the state economy. RTPs location in the RaleighDurhamChapel Hill region, where there is a strong concentration of research universities, is its strongest asset. However, these institutions operated independently of one another until Governor Luther Hodges began to encourage them to work in a collaborative fashion and to shape their marketability as hosts to private research companies. The first five years after the Park was established were very slow. Governor Terry Sanford was pivotal in attracting its first anchor tenants, including IBM and the NIEHS.
NIH Funding Trends: National and Louisiana

Significance of Health Care Research
The GCR/Dr. Richardson/Heidelberg study identifies the significance of health care research can be documented in several ways; first, by evaluating the size and significance of health care research dollars within the budget of the Federal government as compared to other types of research; second, by noting the communities that are major providers of health care research and examining their economic vitality.
in 2005. These dollars were divided between new awards within the year (about $3 to $4 billion each year), funding for project continuation (about $15 to $17 billion each year), and approximately $2 billion in supplements or other categories of research and development. NIH provided research funds to institutes of higher education, including medical schools, as well as private and non-profit research institutions. The RAND study documented what researchers at colleges and universities already knew. The Federal government has put a high priority on health care related research, and research projects are allocated across explicit research centers as well as medical schools affiliated with institutes of higher education.
Health Care and the Federal Government

The RAND Corporation provided a thorough analysis of all Federal research and development funds provided to U.S. colleges and universities in 3 2002 .The following are some of the conclusions reached by this analysis: U.S. medical schools received 45 percent of all Federal research and development funds provided to U.S. colleges and universities in 2002. The nations 126 medical schools received $9.6 billion of the $21.4 billion in Federal research and development funds. The U.S. Department of Health and Human Services provided two-thirds of all Federal funding going to higher education institutions for research and development. The U.S. Department of Health and Human Services received sizable funding increases, notably for the National Institutes of Health (NIH). These conclusions suggest that a strong emphasis upon health- and medicine-related research accounts for a substantial share of the overall research and development funds made available by the Federal government. The National Institutes of Health (NIH) provides another comparative metric for the importance of health care research and development. The organization allocated almost $22 billion in new grants, continuing grants, and supplements to existing grants in 2009, $20.4 billion in 2007, and $20.2 billion
Vital Assets: Federal Investment in Research and Development at the Nations Universities and Colleges, Rand Corporation, April 2004.
3
Will Health Care Research Remain Significant?

Health care research will remain a major focus of the Federal government because of demographics and the related expenses of maintain an aging population. According to the U.S Census in 2000, just under 40,000,000 persons were 65 years of age and older; by 2040 this number is projected to nearly double and by 2100, the size of this age group will be approaching 140,000,000 Americans. This is an enormous change in the number of persons in an age category that typically requires substantial medical attention. At the same time that the demographics are changing, health care costs have also risen substantially over the last forty years. Health care costs in 1965 amounted to less than $100 billion per year. By 2010 health care costs are approaching $2.5 trillion per year: 31 percent going to hospital care. 21 percent going to physician services, 10 percent to pharmaceuticals, 8 percent to nursing homes, 7 percent to administrative costs, and 23 percent to other categories that include diagnostic laboratory services, pharmacies, and medical device 4 manufacturers . Health care costs presently account for about 16 percent of the total gross domestic product. Health care enhancements have made significant contributions to the U.S. economy. Kevin Murphy and Robert Topel, both economists at the University of Chicago, state that over the last half century,
4
U.S. Department of Health and Human Services, Centers for Medicare and Medicaid Services.
improvements in health care have been as valuable 5 as all other sources of economic growth combined. The outcome of health care research has been positive. American citizens expect such research to improve their quality of life, and in turn political leaders will support health care research. Health care research will continue to focus on improving the quality of life for all citizens in an affordable way. These factors will drive the Federal government as well as philanthropic foundations and private entities to devote more resources to health care research over the next fifty years.
Orleans, Dillard University, or some other institution within the city. In 2009 Louisiana received almost $127 million with New Orleans receiving just over $82 million in NIH grants, or about 65 percent of the total NIH grants received by the state of Louisiana. Since 2004, New Orleans has experienced a reduction of $35 million in NIH grants. This implies a reduction in jobs related to the research grants of just over 500 jobs and wages and salaries in the New Orleans area of approximately $27 million. The significance of health care-related research grants and technology in general, will be evaluated as we examine certain prominent health care centers around the country. (see Table 1, next page) NIHs annual budget has gradually increased over the last decade and is currently $31 billion, boosted by an additional 2-year $10 billion infusion from the federal stimulus act. Although medical research has historically benefitted from bi-partisan support, the future is unclear, given Washingtons desire for fiscal restraint. Nonetheless, new spending from already approved NIH funding may be coming for a new institute to support translational research (see Exhibit 2.8). Owing to their established world-class research institutions, California and Massachusetts consistently rate first and second in terms of NIH funding and number of awards. Collectively, these two states garner 25 percent of the annual grant funding. Louisiana is ranked in the middle: #27 in 2005 and #32 in 2009, with funding awards of $185 million and $127 million, respectively. Similarly, with regard to funding associated with the Federal Stimulus Act, Louisiana was ranked #31, with a total of $53 million out of $8.97 billion awarded. The top five states NIH grants are compared with Louisianas and those of similar states in Exhibit 2.8. Battelles state profile for Louisiana shows its R&D per capita funding from National Institute for Health (NIH) at under $34 per capita, which is less than half the national average, placing it 39th among all states in the U.S. in 2009.
Cities with Significant Health Care Research and Development

Table 1 provides a list of the top thirty cities in terms of the dollar value awards issued by the National Institutes of Health. Two cities receive more than $1 billion in NIH grants: Boston and New York. Two cities near Louisiana, Houston and Birmingham, rank in the top thirty cities with respect to NIH funding. There indeed seems to be a strong correlation between success in drawing funds from the NIH and the presence of a university/research environment many of the top thirty cities have vibrant, successful university systems coupled with research districts that drive their population and economy, such as Madison, Wisconsin; Rochester, Minnesota; New Haven, Connecticut; and Ann Arbor, Michigan. This factor is by no means surprising; these areas have taken advantage of the research opportunities offered by local universities and the potential for expanding research possibilities. It should be noted that New Orleans is currently ranked fifty-fifth in the country in NIH dollars, having dropped six spots since 2004 and 12 spots since fiscal year 2005. In 2004 Louisiana received $157.2 million in NIH grants with $65.3 million going to Tulane, $38.1 million going to the LSU Medical Center in New Orleans, and $11.9 million going to Xavier University. New Orleans received over two-thirds of the NIH grants going to Louisiana. In 2009 the Tulane Medical Center received about $25 million of NIH funding and Xavier University received about $6 million. Other NIH funding may come through other entities such as Tulane University (not the College of Medicine or the School of Public Health), the University of New
5
Statement in Value of Medicine, a presentation put together by PHRMA.
Patents
Nationally, over 75,000 patents were issued for bioscience-related inventions between 2004 and 2009. During that same time period, 353 patents were issued to Louisiana inventors, which is 33rd in national rankings. Table 1: Top Cities for NIH Funding, 2009 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 ----55 City BOSTON NEW YORK BALTIMORE PHILADELPHIA SEATTLE LA JOLLA LOS ANGELES CHICAGO SAN FRANCISCO PITTSBURGH HOUSTON ANN ARBOR SAINT LOUIS DURHAM NEW HAVEN NASHVILLE CHAPEL HILL ATLANTA CAMBRIDGE STANFORD MADISON MINNEAPOLIS CLEVELAND BIRMINGHAM PORTLAND ROCHESTER CINCINNATI WASHINGTON DALLAS ROCHESTER NEW ORLEANS State MA NY MD PA WA CA CA IL CA PA TX MI MO NC CT TN NC GA MA CA WI MN OH AL OR NY PJ DC TX MN LA Award $1,679,155,293 $1,140,101,141 $798,451,947 $757,690,879 $735,098,280 $712,114,042 $647,911,168 $577,282,166 $559,594,511 $497,867,072 $483,301,200 $470,036,766 $402,928,085 $381,418,459 $367,090,629 $331,415,109 $328,130,449 $320,269,566 $314,865,902 $306,735,227 $259,778,507 $257,864,672 $248,908,274 $210,123,065 $197,001,726 $191,288,594 $186,887,543 $185,844,460 $180,564,447 $175,481,097 $82,437,5556
Exhibit 2.8 NIH Dollars Awarded in Selected States in 2009 (Excluding Recovery Act)
Source: NIH.gov
Considerations for Louisiana

In developing a strategy for BioDistrict New Orleans, key lessons from the evolving bioscience industry elsewhere include the following: Effective collaboration is essential among a wide range of interests, including universities, hospitals, scientific and research facilities, and funding sources: major centers in Boston, San Francisco, San Diego, and elsewhere have thrived on the strength of shared resources and collaborations among established institutions. Compared with other medical regions and centers, infrastructure and collaborative relationships in Louisiana are less robust and will need to be buttressed, as will areas in which Louisiana ranks below average on a per capita basis: National Institute of Health (NIH) funding, venture capital funding, and medical patents. A primary benefit of the BioDistrict New Orleans project could be to bridge gaps by reducing collaborative barriers between researchers and organizations, facilitating technology transfer and translational medicine, creating incubator space to develop ideas and technologies, and harnessing the strengths of the considerable collective resources already in place detailed next, in Section 3.
GCR/Richardson/Heidlebert Study, October 2010
Case Study
Case Study
Economic Significance to Health Care Research Programs Georgia Research Alliance

Atlanta, GA
The Georgia Research Alliance traces its beginnings to its failure, in 1983, to win a headquarters bid for a large industry consortium looking for a place to develop the next generation of semiconductor technology. According to its website:
The consortium located in Austin, where it jump-started the citys fledgling technology industry and established a high-tech hub. The critical factor in Austins win: a public-private partnership that leveraged the governments funding resources and the private sectors energy and creativity. Georgia quickly realized the benefits of having a privately run technology alliance that could tap into state dollars to foster innovative research.
The economic significance of these medical-related research and development programs in these cities is summarized in Table 2. In Houston, the Texas Medical Center is estimated to have created and to support over 145,000 jobs in the Houston Metropolitan Area. In Birmingham, a much smaller metropolitan area, the overall medical complex is estimated to have created and to support over 54,000 direct and indirect jobs in the Birmingham Metropolitan Area. Finally, in Cleveland, it is estimated that the Cleveland Institute of Medicine has created and supports over 70,000 jobs. The economic impacts enumerated in Table 2 clearly show the direct and indirect effects that can be related to the economic activity associated with major medical complexes.
Table 2: Estimated Economic Significance of Medical Centers in Selected Cities with Major Medical Research Programs Medical Complex UAB Medical Center Texas Medical Center Cleveland Clinic Illinois Medical District Memphis Medical Jobs Supported Direct & Indirect 54,000 jobs 145,000 jobs 70,000 jobs 50,000 jobs 50,000 jobs Metro Area Labor Force 540,900 2,568,300 1,082,000 3,571,000 555,000
Since its founding in 1990, GRA has been an independent not-for-profit entity governed by leaders from industry and academia. The Alliance is a private, independent, nonprofit corporation governed by a Board of Trustees made up of prominent Georgia business and academic leaders. Often, GRA assumes the role of connecting key individuals and organizations with mutual interests and the ability to make an impact through research. GRA has brokered hundreds of such deals. Partnerships: The Alliances affiliated research institutions are Clark Atlanta University, Emory University, the Georgia Institute of Technology, Georgia State University, Medical College of Georgia and the University of Georgia. The universities work with the Alliance to determine which investments in people, research centers, laboratories and equipment are likely to have the greatest economic impact. Achievements: Since 1990, GRA has helped recruit more than 60 world-renowned scientists, called Georgia Research Alliance Eminent Scholars, and helped fuel the launch of more than 170 companies. GRA has also served as a key catalyst for 28 centers of research excellence universitybased enterprises that serve as magnets for scientists and federal research dollars. In its first 19 years, GRA leveraged $525 million in state funding into $2.6 billion of additional federal and private investment. (a return of more than $5 for every $1 invested), which has helped create more than 5,500 high-skill, high-wage science and technology jobs, and allowed established Georgia companies to expand into new markets. In 2007, GRA combined the strengths of several universities into a focused research effort built around new types of vaccines and therapeutics.
City Birmingham, AL Houston, TX Cleveland, OH Chicago, IL Memphis, TN
Source: Studies of institutions with last five years
The presence of research companies, as described above in the profile of the Scripps Research Institute, may represent an even larger economic impact on the overall economy, well above and beyond the direct economic effects of the research grants. Health care related research institutions draw private companies that see the potential for commercial application of the research being completed at the health care centers and related institutions. This type of accumulation of private companies will not occur within a short period of time, but over time these private investments will be made if the focus on the biosciences district is sustained.7
GCR/Richardson/Heidelberg Economic Study, October 2010
Section 3: New Orleans Potential for Hosting a Bioscience Cluster
BioDistrict New Orleans | New Orleans Potential for Hosting a Bioscience Cluster | January 2012 | Page 3 - 1
New Orleans Potential for Hosting a Bioscience Cluster

Intellectual and Physical Resources
Current Economic Significance of Health Care in the New Orleans Regional Economy
In the coming years, BioDistrict New Orleans is expected to significantly increase employment in health care and health care-related fields in the New Orleans area. If New Orleans experiences the explosion of research activity and the commercialization of research that other cities have witnessed, the ultimate effect could be similar to the tens of thousands of jobs generated by medical districts in other cities. At present, it is worth noting that health care already comprises a substantial share of employment and earnings within the New Orleans metropolitan area. It has been estimated that health care spending accounts for over 16% of the Gross Domestic Product 8 of the United States . Thus, the fact that a major metropolitan area such as New Orleans has a significant health care employment cluster should not be surprising. To more precisely quantify the relative size of this cluster in the metropolitan economy, data on employment and average annual pay were examined. The Bureau of Labor Statistics Quarterly Census of Employment and Wages (QCEW) provides employment estimates and average annual pay data down to the level of individual counties (parishes). This data can be disaggregated by the industry code of employers. Based on these data, health care employment and earnings were compared to three other stalwarts of the New Orleans economy; oil and gas, trade, and tourism. While the QCEW data are some of the most authoritative data on employment and wages, there are some limitations to the data. Disclosure rules prevent a complete inventory of employment by sector as, for example, some government health care jobs are not disclosed. Thus, some of the employment figures cited below could better be understood as minimum employment figures for a particular industry in the metro area. Also, defining the employment parameters of an industry can be challenging. For instance, many of the jobs in New Orleans restaurants are tied to the tourism industry, but disaggregating those restaurant jobs from jobs at a neighborhood-serving restaurant is all but impossible. Presented below are two distinct employment figures
8
Historic Context: A City Challenged New Orleans reached its peak as an American economic and population center in the decades prior to 1860, when it was the nation's fifth-largest city and by far the largest city in the American South. But as New Orleans continued to grow in size, the emerging industrial and railroad hubs of the Midwest outstripped the citys population. By the mid-20th century, as New Orleans' population reached its historic peak (in 1960), Houston, Dallas and Atlanta surpassed it in size. And, like many older American cities, New Orleans' center started losing inhabitants while its metropolitan area gained population. The Port of New Orleans remained one of the largest in the nation, but automation and containerization resulted in significant job losses. As the city declined in stature, its role as the banking and financial services provider to the South was supplanted by larger cities, and in the 1980s and 1990s, New Orleans became increasingly dependent on tourism as an economic mainstay. Unimpressive levels of educational attainment, high rates of household poverty, and rising crime were all growing challenges, particularly as the United States shifted to a knowledge-based economy.
Source: The Henry J. Kaiser Family Foundation (kaiseredu.org)
for the tourism industry: one that excludes restaurant and bar employment and another, more liberal figure that does include restaurant and bar jobs.
Table 3: Employment and Average Annual Pay by Industry in the New Orleans Metropolitan Area (2009) All Industri es Tourism (not including restaura nts/bars) Tourism (includin g all restaura nts/bars)
Health Care
Transpo rtation
Oil and Gas
Total Employ ment (2009) Average Annual Pay (2009) Industries Included (with NAICS code)
501,727
57,360
23,320
67,352
23,447
16,258
$45,121
$45,423
$36,459
$23,746
$54,744
$96,163
n/a
Health Care and Social Assistan ce (62); Testing Laborato ries (54138); Physical, Engineer ing, and Biologica l Researc h (54171)
Arts, Entertain ment, and Recreati on (71);Sce nic and Sightseei ng, Transpor tation (487); Accomm odation (721)
Also includes Food Services and Drinking Places (722)
Transpor tation and Warehou sing (4849)
Mining, Quarryin g, and Oil and Gas Extractio n (21);Petr oleum and Coal Products , Manufac turing(32 4); Chemica l Manufac turing(32 5); Plastics and Rubber Products Manufac turing (326)
Data on annual pay from the Bureau of Labor Statistics show that health care jobs within the New Orleans region have wages that are slightly above average and that are substantially higher than in the tourism industry. While health care wages are lower than those in transportation-related jobs and well below average earnings in oil and gas, they could trend higher in future years as a medical research sector begins to emerge and as private investment in the biosciences gains momentum. It should be noted that employers in the health care field employ a wide range of individuals to fill a wide range of jobs-from secretarial positions to doctors and medical technicians. While the average annual health care wage is slightly above the regional average for all industries in New Orleans, there are many jobs in the health care industry that are substantially more lucrative. Based on the data presented above, it is clear that there is a substantial foundation of health care employment and economic activity within the New Orleans region. Presently, health care employs many more people throughout the region than many of the other mainstays of the New Orleans economy, and wages tend to be substantially higher than in the tourism sector and slightly higher than the average 10 annual wage overall. New Orleans has developed and maintained a strong tradition in medical research and care, as the City is home to a number of nationally recognized academic and medical institutions that could become the critically important foundation of the BioDistrict New Orleans vision: Louisiana State University, the Ochsner Health System, Tulane University, Xavier University of Louisiana, University of New Orleans, and Delgado Community College (see Exhibit 3.1). Several other strong, regional research facilities include the Clinical and Translational Research, Education and Commercialization Project, South Louisiana Institute for Infectious Disease Research, Louisiana Vaccine Center, Tulane National Primate Research Center, and Pennington Biomedical Research Center call New Orleans home (see Exhibit 3.2). In 2009, 245 clinical trials were initiated in Louisiana, a majority (~145) of them in advanced Phase III and
10
Source: Bureau of Labor Statistics, Quarterly Census of Employment and Wages
In spite of these limitations, a number of observations can be made about the present-day significance of health care to the regional economy. First and foremost, its share of the regional economy is enormous, relative to other sectors. Health care employs over 3.5 times the number of people directly employed in the oil and gas industry and between 2.4 and 3.8 times the number directly employed in trade 9 and transportation related industries . If restaurants and bars are excluded from the inventory of tourism jobs, health care employs 2.5 times the number of individuals in tourism related industries such as hotel accommodations and arts, entertainment, and recreation.
These figures are for direct employment impacts only, and they exclude the indirect employment impacts of these jobs.
GCR/Richardson/Heidelberg Economic Impact Report, October 2010
IV stages. Trials were conducted in heart disease, cancer, diseases of the brain and peripheral nervous system, nutrition, and infectious disease. Moreover, the Greater New Orleans region has a significant bioscience presence, with over 57,000 people employed by the sector. Also Louisiana is progressing in its commercialization of intellectual property arising from medical technologies, as described earlier, with more than 350 patents awarded to Louisiana inventors for technology in biomedicine, including drugs and pharmaceuticals, biochemical technologies, and surgical and medical instruments. Louisiana biomedical scientists are well aware of the importance of interdisciplinary and inter-institutional collaborations, which, in contemporary biomedicine, have proven essential for making transformative advances and for commercialization. Many initiatives were mentioned during the interview process, but several are of special note: Efforts to expand Pennington Biomedical Research Centers research in obesity and cardiovascular disease to retired veterans and athletes. PBRC scientists work using stem cells to treat diseases of joints and bones and diseases of the central and peripheral nervous systems. Tulanes unique and world-recognized National Primate Research Center, which holds enormous potential for future collaborative studies among all of New Orleans partners in biomedical research as well as with national and international collaborators. Efforts to create statewide and local electronic health records systems that will be available for clinical research and trials. Health information exchanges, many of which are federally funded, have the potential to greatly improve clinical workflow and resulting patient health outcomes. They also standardize across jurisdictions the definitions of diseases and offer the potential to provide previously unavailable data sets to clinical researchers.
Bioscience Synergy with Blue Ocean Strategies

Louisiana Economic Development (LED) has developed a strategy to help so-called Blue Ocean companies by cultivating high growth opportunities that arent dominated by other states. Blue Ocean is a business metaphor from the 2005 book by W. Chan Kim and Renee Mauborgne entitled Blue Ocean Strategy: How to create Uncontested Market Spaces and make the Competition Irrelevant. Companies using Blue Ocean strategies seek new market opportunities offering low-cost in demand products/services that few others are delivering. The goals of BioDistrict New Orleans are compatible with this strategy and will be overseen by a state board and the Louisiana Innovation Council.
Exhibit 3.1 New Orleans Academic and Medical Institutions: Strengths and Areas of Focus
LSU has developed strong programs in the biological sciences. In addition to its two medical schools (the LSU Health Science Center in New Orleans and the LSU School of Medicine in Shreveport), the University sponsors active research and teaching programs in the LSU Agriculture Center, the LSU School of Coast and Environment, and the LSU School of Veterinary Medicine. Each of these educational units has a wide range of departments and centers covering the breadth of specialties in contemporary biological studies, many of which interact in partnership with other universities and research centers.
The mission of the Xavier University of Louisiana College of Pharmacy is to train practitioners dedicated to medically underserved populations and to eliminate healthcare disparities. The College contains Divisions of Basic Pharmaceutical Sciences and Clinical & Administrative Sciences. Its Clinical Trials Unit provides clinical research assistance to pharmaceutical and allied health care companies focused on bringing new products to market safely and efficiently. Research priorities include minority health and disparities, womens health, drug studies, cancer, and minority AIDS education.
Ochsner Health System is southeast Louisiana's largest non-profit, multi-specialty, healthcare delivery system with eight hospitals and over 38 health centers in Louisiana. Ochsner has grown significantly in the last five years and now employs more than 12,500 people, including over 850 physicians in over 90 medical specialties and subspecialties. Services include primary care, pediatrics, heart and vascular services, cancer services, digestive disorder care and transplant services. Ochsner is also a national leader in medical research, with more than 300 ongoing research trials and 200 annual publications of medical literature.
Faculty members within the Department of Biological Sciences at UNO carry out teaching and research in a variety of disciplines ranging from molecular genetics to systems biology. The University offers graduate training leading to a Ph.D. degree in Conservation Biology, and the Master's of Science (MS) degree in Biological Sciences. UNOs faculty are developing nanotechnology as a drug-delivery system and are working in partnership with Childrens Hospital of New Orleans on bioinformatics research.
Medical research at Tulane is housed within the Graduate Program in Biomedical Sciences, an interdisciplinary, interdepartmental, and intercampus program. Components include the Tulane School of Medicine, the School of Science and Engineering, the School of Public Health and Tropical Medicine, and the Tulane Regional Primate Research Center. Within these schools are numerous specialty centers, for example, bioenvironmental research, cardiovascular health, bioengineering, and infectious diseases.
Delgado Community Colleges many training programs in Allied Health specialties provide skilled healthcare professionals for all aspects of medical care and delivery. The college also houses the Charity School of Nursing with programs in both registered and practical nursing.
Exhibit 3.2 Other Regional Research Facilities
Clinical and Translational Research, Education and Commercialization Project (CTRECP) is a joint venture between LSU and Tulane universities. Its offerings include skilled nursing services, specialized research study facilities and equipment, biostatistical support, research nutrition services, and research subject advocate services. The Core Laboratory offers sample processing, storage and shipping, assistance with research design, and performance of specialized molecular biology techniques.
Tulane National Primate Research Center is a biosafety lab that focuses on the development of treatments, vaccines, and diagnostics for infectious diseases and toxic materials. Within the Center, Divisions of Bacteriology & Parasitology, Collaborative Research, Comparative Pathology, Gene Therapy, Immunology, Microbiology, and Veterinary Medicine, focus on diseases such as AIDS, Krabbe disease, Leukemia, Lyme disease, Malaria, Microsporidiosis, RSV, Rotavirus, and TB.
South Louisiana Institute for Infectious Disease Research (SLIIDR) is a partnership of LSU and Tulanes Health Science Centers. Its research areas of strength include emerging ID/bio-defense; fungal disease; human and simian immunodeficiency diseases; ocular, oral cavity and respiratory diseases; sexually transmitted diseases, and vaccines. Its core facilities include genomics, proteomics, protein production and isolation, nanotechnology, vector development, immunology, molecular interaction, and imaging.
Pennington Biomedical Research Center in Baton Rouge was established by the Pennington family in 1980. It houses 53 laboratories spanning Basic Research, Clinical Research, and Population Science. Research laboratories are divided into 10 program areas: Cancer, Diabetes, Epidemiology & Prevention, Genomics & Molecular Genetics, Neurobiology, Neurodegeneration, Nutrient Sensing & Signaling, Obesity, Physical Activity & Health, and Stem Cell & Developmental Biology. A major research focus is nutrition and preventative medicine focused on reducing obesity and related diseases. The Center has developed a systematized clinical research practice, along with a large institutional patient database.
Louisiana Vaccine Center (LVC) focuses existing interdisciplinary strengths in the basic and translational science of microbial pathogenesis, host immunity, and vaccine research at three major Louisiana universities: LSU, Tulane, and Xavier. The goal of the Center is to provide infrastructure and training to promote research and development in vaccines, infectious diseases, and immunology.
Populations of Need
The once-in-a-century events of Hurricane Katrina have presented New Orleans with an opportunity to redefine itself. The storm and its aftermath left the city with unprecedented human, infrastructure and facility challenges. The 1,500-acre BioDistrict is located in an area that was severely impacted by the floodwaters following the storm, and which will require special design features and additional infrastructure investments to ensure that critical systems remain above future flood levels. A detailed infrastructure assessment was provided in the AECOM Task 3 Report. Having built 87 clinics over the last 5 years, among other efforts, New Orleans has already made great strides in addressing its critical need for healthcare and related services for its many diverse communities. Of these, four communities of need have emerged that typify national trends, are the focus of high-profile public and private organizations, and potentially align with the BioDistrict New Orleans vision: Residents affected by high levels of stress due to a range of natural and man-made factors (e.g., Hurricane Katrina) Returning war veterans The aging population The needs of these communities are broadly characterized below.
May 29, 2010 press release, multiple Louisiana state agencies, including the Louisiana Departments of Social Services, Health and Hospitals and Wildlife and Fisheries along with the Louisiana Workforce Commission, Louisiana Recovery Authority and Louisiana Economic Development, submitted a letter requesting that British Petroleum create a fund with an initial $300 million to provide critical resources to mitigate the immediate, short- and long-term impacts on affected businesses and individuals to, among other things, support the workers in our affected parishes and public health and behavioral health resources for our residents, as well as a mechanism to analyze the short- and long-term impacts of the event. Clearly, the impacts of these major events combined with the ever-present threat of additional storms and potential consequences of the Deepwater Horizon oil spill remain open-ended challenges for residents of this region.
Veterans
The changing face of warfare has produced a new set of health challenges for veterans. The hallmark injuries sustained by the veterans of our wars in Iraq and Afghanistan are traumatic brain injury (TBI), amputations, and mental illness. Beyond having their immediate needs met, this population will require considerable resources to help manage the lifelong orthopedic, neurological, and psychiatric challenges presented by these ailments.
Aging Population Residents Affected by High Levels of Stress

Even before Hurricane Katrina, Louisianas population faced significant health and stress-related challenges. With regard to stress specifically, the situation since the hurricane has only grown more challenging. According to 2008 testimony by the Kaiser Family Foundation to the U.S. House of Representatives, 61 percent of New Orleans residents reported some sort of chronic illness following the hurricane. Hypertension was the most commonly self-reported condition overall, experienced by 37 percent of adults significantly higher than the 28 percent of Americans reporting high blood pressure nationally. Survey results also documented 15 percent of adults reporting a serious mental illness such as depression. Unfortunately, stress induced challenges have not been limited to catastrophic hurricanes. According to a Another area of opportunity centers on procedures specific to pathologies of orthopedics and neuroscience targeting aging seniors (now including baby boomers) who are determined to sustain a high quality of life. To meet this challenge, more focus must be placed on regenerative and integrated medicine.
Existing Facilities
The BioDistrict features several existing facilities that can be leveraged to build a bioscience cluster. These include: New Orleans BioInnovation Center Louisiana Cancer Research Consortium Old VA Hospital Charity Hospital Complex
The Convention Center Each of these is assessed in detail below.
New Orleans BioInnovation Center (NOBIC)

This 66,000 square foot building is designed to offer incubator space and services to bioscience companies from pre-startup to initial expansion. It is LEED Gold Certified and opened in September 2011. The Center provides office space for the BioDistrict, a venture capital fund, grant sponsors, and the Commercialization Coordinator. The Center also contains 24 day labs and 57 office suites for incubator tenants. The building contains a 100-person conference facility, a 2,000 square foot food service area, and a 3,000 square foot interior courtyard.
For tenants, rents of $20 to $30 PSF FSG are implemented to breakeven for all operating costs. This rent poses a significant challenge to leasing the facility, since competitive space is currently available at much lower rents. Potential Opportunities Nationally, most incubators are loss leaders and are designed to keep new companies that have emanated from local medical institutions from leaving the area. In order to attract tenants in a soft market, NOBIC will need to consider making concessions and generating leasing activity in the building. Rental rates can be revisited once the building has reached more than 50% occupancy. In the meantime, NOBIC should consider a more proactive, systematic, and highly visible marketing effort to raise awareness of the facility and reach potential tenants within and beyond the greater New Orleans region. A graduate/transition lab facility will be needed for start-up companies who need room to grow.
Louisiana Cancer Research Consortium (LCRC)

The LCRC is the product of a consortium made up of LSU Health Sciences Center, Tulane University, Xavier University of New Orleans, and The Ochsner Health System. The new $100 million Center is under construction with 174,000 SF of useable area and 75,000 SF of structured parking. The vivarium built on the top floor appears to have been an afterthought, making usability a problem due to vibration from the nearby freeway. Although LCRC benefits from statewide cigarette taxes, revenues have declined sharply. Moreover, LCRC has had challenges with fundraising, for the Center must compete with overlapping fundraising efforts at the partner organizations. Operating costs for the new building are estimated at $6 million or $40 per SF.
New Orleans BioInnovation Center
The State has been funding NOBICs requirements in four areas of targeted research: Infectious Diseases, Vaccines, Peptides, and Clinical Trials. The Center has challenges in obtaining new funding and in sustaining existing sources of support, including the reduction in state funds to fit out the space. Most recently, NOBIC successfully competed for a Perkins Family grant to fund travel expenses for outside entrepreneurs coming to speak at 1-day seminars. Current Situation/Challenges Because most tenants will be small start-up companies, they will need only generic labs, which typically entail a ventilation hood, utilities bench, and modest office space (e.g., cubicles). Not all tenants will have a lab component, so tenant improvements can be spread out over a broader base.
Louisiana Cancer Research
Current Situation / Challenges It is our understanding that the four institutions in the consortium will occupy the building and are overseeing the programming. As with the incubator space, a key factor will be the availability of tenant improvement dollars for fitting out space to meet tenants needs. The cost could be $30 to $100 per square foot, depending on the rental rate. Potential Opportunities The operational and utility budget for the LCRC will have to be reviewed to make sure the allocated per square foot costs are reasonable. While the asking rent needs to be sufficient to cover operating costs, in the near term, additional rent is unnecessary, as the capital cost is covered by state funding. Once a scientific program and branding for the BioDistrict are complete, it should be possible to develop a more targeted strategy for attracting tenants to the building.
an important role in shaping the overall strategy for the BioDistrict. The state will lead an adaptive reuse RFP process focused on Charity Hospital in early 2011. New Orleans is not alone in the challenge of finding optimal use for a historic, revered structure; Exhibit 3.3 provides an overview of other such efforts. In reviewing these reuse strategies, it is important to remember that Charity Hospitals main building is itself over 1 million SF, creating special challenges for an economically viable reuse strategy.
Old VA Hospital
Current Situation / Challenges This 1950's building is listed on the National Register of Historic Places and served until Hurricane Katrina, as the regions Veterans Hospital. It sustained significant damage during the storm and has faced ongoing environmental challenges (e.g., mold) ever since. Today, the clinical portion of the building is all that remains operational. Veterans previously housed in the Old VA Hospital will continue to be housed at Tulane Hospital until the new VA Hospital is built.
Charity Hospital Complex

Charity Hospital is a 1 million-plus SF medical center complex comprised of approximately 19 buildings in the New Orleans Medical District between Tulane Medical School and the LSU Health Center. The Art Deco main building was constructed in 1939 and provided affordable health care for decades.
VA Hospital
Charity Hospital
Potential Opportunities The fate of the Old VA Hospital is currently unknown, which poses a significant challenge. Once the future of the building is determined (i.e., redevelopment or demolition), the resulting direction will be factored into the overall BioDistrict strategy.
The hospitals 345 beds were devoted to serving the regions poor and uninsured when Katrina made landfall in August 2005. The damage sustained during and after the storm forced Charity Hospital to permanently close and led Louisiana State University and Veterans Affairs to initiate plans to build modern facilities adjacent to its campus. Current Situation Given the location, history, and community sentiment associated with Charity Hospital, it is certain to play
New Orleans Convention Center

Current Situation The New Orleans Convention Center (MCCNO) was recently renovated and is ranked among the countrys top-ten facilities for hosting annual events. The MCCNO is the sixth-largest convention facility in the nation, with 1.1 million SF of contiguous exhibit space as well as a 4,000+ seat conference auditorium and two ballrooms comprising over 75,000 SF. The
Center has a business center along with several restaurants and dining options. Potential Opportunities The prospect of a strong bioscience community within the BioDistrict supported by an impressive, easily accessible convention facility, is a compelling asset for New Orleans, for the City could become a preeminent world center for scientific and medical conventions. The BioDistrict should work with the City to leverage the Convention Center as an additional asset/companion facility to the BioDistrict.
Opportunities for the Adaptive Reuse of Buildings

A variety of factors, including economic conditions, demographic shifts, technological advancements, and the simple passing of time can render obsolete the most beloved community buildingsincluding hospitals. The projects previously highlighted in Exhibit 3.3 provide a representative sampling of how some communities have creatively responded to the challenge of adapting such structures for viable future use. Each of the facilities in the BioDistrict will be the subject of ongoing review with respect to potential revenue scenarios in future tasks. The repurposing of these facilities, given their importance to the subject market, will be a critical component in the conception and development of the BioDistrict.
New Orleans Convention Center
Exhibit 3.3 Examples of Adaptive Reuse
PacMed Building, Seattle, WA. This 16-level, 312bed former U.S. Marine hospital, located two miles southeast of downtown Seattle, was built in 1932. It was listed on the National Register of Historic Places in 1978 and designated a landmark by the City of Seattle in 1991. Today, the building is Amazon.coms headquarters. The project was a result of a public/private partnership involving PacMed, the U.S. Department of Health and Human Services (DHHS) state legislators and the city of Seattle. The building comprises 320,000 SF of office and medical/dental clinical space.
Cook County Hospital, Chicago, IL. The 309,000

SF, 8-story hospital known as Chicagos Statue of Liberty was built in 1916 and featured an ornate Beaux-Arts faade. Despite its historic profile, it was replaced in 2002 and slated for demolition. To draw attention to its pending fate, Landmarks Illinois listed Old Cook County as one of its Ten Most Endangered Historic Places. Working with Landmarks and other local preservation organizations, the National Trust for Historic Preservation joined the battle to save Old Cook County in 2004, listing it as one of the America's 11 Most Endangered Places. The listing helped focus national attention on the building. In March 2010, a $108 million renovation was approved to turn the historic building into heath care administrative offices. Lessons Learned From These and Other Adaptive Reuse Projects
Newberry Hospital, Newberry, SC. In 2000, when

the aging hospital was soon to be abandoned, the local Housing Authority and Council on Aging came together to preserve the building for reuse as apartments for low-income seniors. For the numbers to work, supporters successfully petitioned to have the hospital added to the National Register of Historic Places, which made available historic property tax credits. The project also received block-grant funds from the SC Department of Commerce, affordable housing tax credits from the SC Housing Finance and Development Authority and a very low-interest loan. The $4.1 million restoration encompassing 35 affordable apartments has catalyzed private redevelopment in the surrounding neighborhood.
Historic designation can be a difference maker,

helping to forge ties at the local, state, and even national levels. A listing on the National Register of Historic Places is a common thread for many significant adaptive reuse projects.
Planning pays off; understanding local and regional

economic drivers are the keys to successful reuse strategies.
Northern Michigan Asylum for the Insane,

Traverse City, MI. The Asylum was established in 1885 as the demand for a third psychiatric hospital began to grow. The property was placed on the National Register of Historic Places and the Grand Traverse Commons Redevelopment Corporation (GTCRC) was created to develop a reuse plan. The site remained vacant until 2000 when a local developer secured an agreement with GTCRC to renovate a 380,000+ SF portion of the property into a mixed use residential/commercial project. Phase One was completed in 2005. Phase Two, which included the renovation of another 100,000 SF was completed in the fall of 2008. The site is owned by various parties, including city, county, state, and private entities, and has a development capacity of 1 million SF. The site is located in Michigans State Renaissance Zone with numerous incentives.
Designations and zoning can be the gateway to

incentives that make the numbers work.
Public/Private partnerships are almost always the

rule; they require special skills in the areas of collaboration, community outreach, consensus building, and managing connections.
Ownership structures vary tremendously; project proponents benefit from exploring options and staying flexible. Success may come in phases. This is especially true of larger redevelopments.
Considerations for New Orleans

In summary, our assessment shows that New Orleans has impressive strengths. The strengths come from the quality of the educational and research organizations within the city that provide medical care and carry out medical research over a broad range of specialties and disciplines. Moreover, new facilities (NOBIC and LCRC) are under construction that will help re-energize the biotech business / research climate of the city, and the VA is investing heavily in a new hospital that will provide further intellectual and economic boosts. A number of city buildings may also be candidates for adaptation and reuse, which could increase the magnitude and impact of the BioDistricts resources, should it materialize as planned. Ideally, one could hope that a vibrant biosciences cluster within New Orleans could provide a new spark that would increase the number of medical professionals in the city, enhance collaborations across institutions and businesses, and raise the awareness of health issues among the city and state's populations, both from a health and business perspective. In short, a BioDistrict could help change the medical and economic culture of the city.
Section 4: Areas of Research Strength
BioDistrict New Orleans | Areas of Research Strength | January 2012 | Page 4 -1
Research Foci
Introduction
Having established New Orleans potential to host a BioDistrict in Section 3, we now examine the areas of strength in specific research foci that emerged during our study. Our assessment indicates that the academic firepower of the BioDistrict is significant and is driven by the presence of the Louisiana State University and Tulane University Health Sciences Centers, Xavier University and its School of Pharmacy, and the University of New Orleans. These academic institutions are further strengthened by freestanding and affiliated institutes with specialized research functions such as the Louisiana Cancer Research Consortium, Tulane National Primate Research Center, New VA Medical Center, Louisiana Vaccine Center, Center for Nanomedicine and Drug Delivery, and the New Orleans BioInnovation Center. Independently, these institutions have made significant strides towards cementing and expanding expertise in diverse fields of research, training the next generation of scientists and medical professionals, and improving treatment and health care among patient populations. Also of note has been an incremental strengthening of the interinstitutional research relationships that provide a foundation for future dynamic collaborations. Successful research organizations and the scientists st within them recognize that, in the 21 Century, no one institution can act independently and still be effective at an internationally competitive level. Like all bioscience clusters in the US and worldwide, New Orleans is working to develop more effective means of inter-institutional research. Strengths are being consolidated, institutional barriers are being lowered, and administrative leaders are coming together towards common interests and goals. Examples of current productive collaborations include the Louisiana Cancer Research Consortium, the Minority Health and Health Disparities Research Center, the Louisiana Vaccine Center, the South Louisiana Institute for Infectious Disease Research, and the future University Medical Center. Within these initiatives, researchers from local universities are coming together to further research goals and apply for large federal funding projects.
Beyond the purely academic advantages of institutional collaboration, such partnerships are integral to the successful establishment of a new healthcare/biomedical-focused economic sector in New Orleans. Biomedical-associated industries provide an unparalleled capacity for job creation and increased investment in the local economy. An example of this capacity was given in Battelles recent study The U.S. Biopharmaceutical Sector: Economic Contribution to the Nation. The study showed that when compared to conventional economic drivers such as consumer spending, investments in the biopharmaceutical sector yielded 30% greater returns in terms of wealth creation and personal income. Academic research and innovation can be understood as the raw material which these industries collect and refine to derive marketable products. Cities such as Boston, San Jose, and San Diego, with their robust and well-integrated academic research enterprises, reap a huge economic benefit from the external recruitment had internal development of these highly profitable biomedical-associated industries. Communities across the nation have sought to emulate this mode of technology-led economic development that hinges upon the translation of academic discovery into entrepreneurial activity. Those few that have succeeded have done so by recognizing and focusing investment on their particular local research strengths and leveraging them towards national competiveness. Section 4 of the Task IV report provides an analysis of those areas of research strength within and between New Orleans academic institutions. The next steps will be to determine how the BioDistrict, as a stateenabled economic development district, can best support the current and future university-led initiatives that define these areas and their economic potential with an eye towards becoming self sustaining.
Understanding Our Strengths

The 2010 Economic Impact study conducted by GCR & Associates, Inc. and Dr. James A. Richardson examined the growing national prominence of healthcare research as an economic driver. Their findings describe how the BioDistrict could revolutionize the regions economy by harnessing the research and development of local institutions. Critical to the success of this effort is an analytic understanding of the areas current research
strengths. Only through such an informed understanding can the BioDistrict support the most effective allocation of resources within the local community and target its recruitment of outside investors. This section clearly highlights the BioDistricts preeminent areas of research by describing how research dollars are currently being spent, and what inter- and intra-institutional assets correspond with those funds. Lastly, we have outlined the local, national, and international context for the BioDistricts leading areas of research and advocate that the BioDistrict work with its academic partners to identify how it may best support their initiatives in these high-priority areas. With this collective understanding, the BioDistrict can collaboratively create a preferred concept which will define its mode(s) of engagement and effective collaborations with the most economically relevant initiatives undertaken by its constituent organizations. The BioDistrict includes representatives from each of the areas major academic and medical institutions, including Xavier University of Louisiana, Delgado Community College, Louisiana State University Health Sciences Center (LSUHSC), Tulane University, and Ochsner Health System. Since federal government spending accounts for the majority of academic research and development funds in the BioDistrict, the distribution of these funds can be used to evaluate the research strengths of the BioDistricts constituent institutions. The National Science Foundations 2006-2008 report on national research and development obligations found that over 70% of federal R&D spending in Louisiana came from the Department of Health and Human Services (DHHS), with 99% of research funds being distributed locally by the National Institutes of Health (NIH).
Exhibit 4.1 Federal Department R&D Obligations to LA Universities and Colleges
Source: National Science Foundation - Science and Engineering State Profiles: 200608
Federal Granting as a Metric of Research Strength: Focus NIH Funding

The NIH is the worlds largest funder of biomedical research, investing over $31 billion in FY 2010 (not including $10.4 billion provided to NIH through the American Recovery and Reinvestment Act). This report used NIH funding patterns as the primary metric to understanding the BioDistricts potential research foci and strengths. This report chooses NIH data over other prospective means of evaluation because it is longitudinal, well standardized, and publicly available. This funding data also represents the largest contribution of research dollars statewide and identifies each individual institution in any given year. Additionally, NIH policy sets the national agenda on biomedical research and thereby increases the importance of its local funding preferences. Annual NIH funding trends indicate that Tulane University, LSUHSC, and Xavier University are the BioDistricts leading biomedical research institutions. Combined, these three institutions have received an average of $95 million of NIH funding per year since 2005, accounting for nearly 65% of the total NIH spending in Louisiana during that period.
Exhibit 4.2 New NIH awards in Louisiana since 2005 including American Recovery and Reinvestment Act (ARRA) funds distributed during 2009 and 2010.
could be built with a granularity of information allowing for the identification of the specific sub-specialties that define the regions current research strengths, as well as identify the post-Katrina funding impacts.
Tulane University
This report found that Tulane University receives more NIH research dollars than any other academic institution in Louisiana, with 92 grants totaling $47,181,897 in 2010, not counting $18.7 million from the American Recovery and Reinvestment Act (ARRA). Of the 150+ unique Tulane researchers who have submitted grants to the NIH since 2005, 40 were named as the lead project investigator for 80% of the funds received during that period. As of 2011, 35 of these top researchers are still with the university. This report examined their research specialties and intrainstitutional affiliations to derive the university's research profile and inform a critical examination of the research foci at their respective departments and centers. Exhibit 4.4 New NIH awards since 2005 for Tulane University
Source: NIH RePORTER
Exhibit 4.3 New NIH awards to institutions in Louisianas 2nd Congressional District during 20101, excluding American Recovery and Reinvestment Act (ARRA) funds
In an effort to provide the most accurate analysis of each universitys research strengths, we examined NIH spending on an individual researcher basis since 2005. Through this research, a longitudinal profile
1 The remaining BioDistrict institutions (Delgado and Ochsner) did nd not receive any of the 2010 NIH funding spent on Louisianas 2 District. Ochsner did receive $886,147 for three grants in rd Louisianas 3 District, but without specific disclosures by the Ochsner Clinic Foundation it cannot be determined if any of that revenue was directed towards projects relevant to the BioDistrict. In its 2010 annual report, Ochsner Clinic Foundation reported spending $11.3 million statewide on research. Clearly, Ochsners research foci should be explored in the future, as should all nonFederally funded research activity within the BioDistrict. Because this report deals explicitly with federally funded research, Ochsner was not included in the analysis.
Of the 35 best-funded researchers at Tulane, most were associated with the various departments of the Medical School, with a large contingent affiliated with the Cancer Center. Other groups of top researchers were formed around the National Primate Research Center and School of Public Health and Tropical Medicine. Prominent research foci within these three main contingents of researchers included: Viral mediated pathogenesis and malignancy Disorders of the cardiovascular, renal, and pulmonary systems
Cancer co-factors including pulmonary, cardiac, vascular, and renal dysfunctions Oncogenesis mediated by viral and mobile genetic elements AIDS/HIV treatment and prevention Drug delivery and vaccine development Primate models for infectious disease and surgery AIDS/HIV Tuberculosis Bio-defense Epidemiology studies Environmental health vs. public health
Exhibit 4.5 New NIH Awards since 2005 for LSUHSCNO
Louisiana State University Health Science Center

Louisiana State University Health Sciences Center (LSUHSC) receives the second greatest amount of NIH dollars in Louisiana, with 78 grants in 2010 totaling $28,724,085 (not counting $3.1 million in ARRA funds). Of the 140+ LSUHSC researchers who submitted grants since 2005, 44 researchers accounted for 80% of the funds received during that period. Today, 39 of these 44, top researchers are still with the university at the time of this report, and their research specialties and intra-institutional affiliations were analyzed to derive the university's research profile and inform a critical examination of the research focus at their respective departments and centers.
This analysis found that no LSUHSC department or center contained an overwhelming majority of top researchers, with a more or less even dispersal found within the departments of Pharmacology and Experimental Therapeutics, Microbiology, Immunology & Parasitology, and Centers for Neuroscience, and the Stanley S. Scott Cancer Center. Prominent research specializations in this group of researchers were: HIV/AIDS co-factors including chronic alcohol use, minority/health disparities, pulmonary disease, obesity, and opportunistic infections HIV-related pulmonary infections including pneumocystis and tuberculosis Cancer health disparities, gene therapy Pulmonary immunology and host defense systems Ophthalmology - viral mediated disease, drug delivery systems, corneal surgery, neuronal stress Neuroprotection and related degeneration and corneal wound healing Sexually-transmitted diseases
Xavier University of Louisiana

Xavier University receives the third greatest amount of NIH dollars in Louisiana behind Tulane and the LSU system, with 12 grants in 2010 totaling $5,851,166. Of the over 65 researchers who received research funding at Xavier since 2004, awards to 15 researchers accounted for nearly 90% of the research dollars awarded during this period. Exhibit 4.6 New NIH awards since 2005 for Xavier University
Most Promising Academic Research Areas

After thoroughly analyzing and grouping the research specialties and institutional associations of close to 100 of the regions current top award-winning researchers, this section designates five promising areas of academic research in the New Orleans region. These research areas appear to be the unique strength in this region and should continue to be so in the near future and become drivers for the BioDistrict. These areas of strength are defined by the prevalence of specific research specializations, the associated institutional infrastructure and funding history, and their local, national, and international context.
Cancer Research in the areas of genetic

instability, immunology, signaling pathways, and contextualized by endemic cancer health disparities in local minority populations
HIV/AIDS Related Research on AIDSrelated opportunistic infections, drug and alcohol mediation of HIV pathogenesis, primate models for vaccine and prophylactic development, international research affiliations, and health disparities
Today, 12 of these 15 top researchers are still with the university, and their research specialties and intrainstitutional affiliations were analyzed for areas of specialization which focused on: Minority and health disparities research in diabetes, cancer, asthma Drug delivery systems
Infectious Disease Research as a focus of the regions research in biodefense and vaccine development, mechanisms of drug delivery, primate models, sexually transmitted disease, and global health initiatives Cardiovascular Disease, Renal Disease and Hypertension as obesity
comorbidities in local and national minority populations
Neuroprotection & Rehabilitation of

Traumatic Brain Injury patients as it relates to the goals of the new VA medical center
Exhibit 4.7 Areas of research strength and institutional contributors
Louisianas cancer incidence rates do not greatly exceed the national average, the state ranks fourth for overall cancer death rates, with the minority AfricanAmerican population accounting for a disproportionate number of those mortalities. Therefore, while Louisianas cancer research infrastructure may be dwarfed by states such as Massachusetts and California, the severity of its local health challenges coupled with its focus on minority/health disparity provides an avenue to gain national significance and establish partnerships with larger centers of cancer research nationally. Since 1995, LSUHSC has run one of the 18 competitively awarded Surveillance Epidemiology and End Results (SEER) program-designated cancer registries in the nation. SEER is NCIs most important source of information concerning cancer incidence and survival nationally, and covers 26% of the U.S. population, with a special emphasis on racial, ethnic, and socioeconomic diversity. With the newest award in 2010 for a seven-year $12 million contract, LSUHSC continues to provide a singular source of statewide epidemiological data for Louisiana cancer researchers and policy makers. LSUHSCs Stanley S. Scott Cancer Center has a large contingent of faculty specializing in the areas of molecular signaling, population science, genetics, and immunology. A particular focus of the center is the study of inflammation in cancer and infectious diseases through the renewal of its Center for Biomedical Research Excellence (COBRE) Mentoring Translational Researchers in Louisiana in 2010. The $11 million COBRE grant will fund the center through 2015. LSUHSC has a strong focus on minority/health disparities in its cancer research through its NCIfunded Minority-Based Community Clinical Oncology Program (MB-CCOP). One of 14 nationwide, the MBCCOP allows LSUHSC to connect minority and other cancer patients with opportunities to participate in clinical trials offered through NCI. Including its public hospitals, clinics, and MB-CCOP, the LSUHSC provides healthcare for more minority patients than any other facility in the state, and in this respect is competitive on a national level. Building on its substantial involvement with minority populations, LSUHSC partnered with Dillard University to receive a $6.5 million NIH grant to establish the DillardLSUHSC Minority Health and Health Disparities
Cancer Research: Health Disparities Research in Local Minority Cancer Populations

The Louisiana Board of Regents publication First Louisiana: Fostering Innovation Through Research in Science and Technology in Louisiana, formally adopted in January 2010, cites cancer as a major public health concern for the state, as well as an area of research strength. Cancer research is a focus at Tulane, LSUHSC, and Xavier universities as well as Ochsner Health System. These institutions make up the Louisiana Cancer Research Consortium (LCRC) whos shared research foci include molecular signaling, population and health disparities, genetic and viral carcinogenesis, and immunology. The impending completion of the approximately $102 million consortiums 155,000 sq. ft. state-of-the-art cancer center in the heart of the BioDistrict marks the next phase of the regions growing cancer research enterprise and brings it closer to the goal of National Cancer Institute (NCI) designation. Louisianas 2010-2015 Comprehensive Cancer Control Plan, part of the National Comprehensive Cancer Control Program administered by the United States Centers for Disease Control, highlighted the need to improve access to care and early detection for underserved minority populations. Although
Research Center (MHHDRC) in 2010. The MHHDRC focuses on diseases disproportionately affecting minority populations including prostate cancer, cervical cancer, obesity, and asthma. The centers long-term goal is to develop evidenced-based methodologies for increasing minority participation in clinical trials. To achieve this goal, the MHHDRC trains minority faculty, exposes undergraduates to health disparity research, and strives to attract and train minorities as clinical research associates. In 2009, the NIH awarded Tulane University an $11 million 5-year renewal of its COBRE for the continued mentorship of cancer genetics researchers in New Orleans. Specific research funded by this grant includes genetic instability, transcriptional regulation, and the role of viruses in inducing tumors. Together, these research areas comprise the main component of the cancer genetics program at the LCRC. Tulane's Cancer Center (TCC) has over 100 associated research faculty studying drug delivery systems, disease co-factors (pulmonary, cardiac, vascular, renal), oncogenic viruses, genetic instability, and environmental oncology. TCCs Stem Cell Transplant Program is the only source for adult allogeneic stem cell transplants in Louisiana and allows the center to conduct stem cell transplant clinical trials. TCC has a long history of partnering with Xavier on minority/health disparity cancer research, including the 2005 $1.4 million planning grant for collaborative biomedical research and educational programming focusing on racial disparities in cancer outcomes, as well as the recent 2011 $1 million Department of Defense (DOD) Inter-Institutional Partnership grant exploring possible new drugs for breast cancer. Xavier University is a historically black college and has achieved national prominence as a leader in graduating African-American science, pre-med and pharmacy students. Xaviers College of Pharmacy ranks among the top 20 in terms of NIH funding and in 2007 established its Center for Nanomedicine and Drug Delivery in collaboration with Tulane and LSUHSC with funds from the Louisiana Board of Regents. The center plays a key role in Xaviers growing cancer research enterprise by developing efficient and innovative oral, colonic, parenteral, pulmonary, and vaginal drug delivery systems. Like LSUHSC, Health disparity research is a major focus at Xavier through its Center for Minority Health
and Health Disparities Research and Education (CMHDRE). The CMHDRE employs a dual approach targeting some of the most prominent diseases disproportionally affecting minority populations in Louisiana (diabetes, cancer, and asthma), while at the same time actively recruiting qualified students from health disparity populations that are currently underrepresented in the scientific workforce. In 2009, Xavier received a five-year $10.1 million grant from NIHs Research Centers in Minority Institutions (RCMI) program. The goal of the RCMI at Xavier is to improve the universitys existing cancer research by establishing core laboratories, providing instrumentation and technical staff, and funding pilot research projects. The RCMI is part of a larger university-wide initiative to enhance competitiveness in biomedical fields, with particular attention paid to cancer disparities research.
HIV/AIDS Related Research: Playing at Local and International Levels

The Department of Health and Hospitals Office of Public Health HIV/AIDS Surveillance reported that in 2008 Louisiana ranked 4th highest in the nation for AIDS case rates and 11th in the number of cases diagnosed. New Orleans ranked 3rd among the largest metropolitan areas in America. As with many diseases, minority populations bear the greatest burden, with African-Americans six-times as likely to contract HIV than Caucasians and making up 78% of newly diagnosed AIDS cases in 2010. Both Tulane and LSUHSC dedicate significant research infrastructure to HIV/AIDS-related programs of local and international significance. Tulanes National Primate Research Center (TNPRC) carries out HIV/AIDS research in four of its seven divisions, focusing on primate models of AIDS pathogenesis and transmission, prevention of HIV infection, therapeutic and vaccine development, and HIV origins and genetic diversity. Beyond the rare ability to model HIV/AIDS in non-human primates, Tulanes School of Public Health and Tropical Medicine and Center for Infectious Disease gives researchers an international reach through collaborations in approximately 60 countries, with special strengths in southeast Asia, West Africa, and Central and South America. An
example of the potency of Tulane's international HIV/AIDS focus was the 2007 award of $14 million from the Centers for Disease Control and Prevention for the continuation of programs to fight HIV/AIDS in eight countries that lacked the large-scale public health resources to track HIV infections. LSUHSC has multiple faculties from the departments of Internal Medicine and Microbiology, Immunology & Parasitology who research HIV/AIDS and AIDSassociated diseases. Amongst these researchers, there is particular focus on HIV-related pulmonary infections and on drug and alcohol mediation of HIV pathogenesis. This strength is exemplified by the October 2011 award of a 5-year $9 million grant from the National Heart Lung and Blood Institute of the NIH to LSUHSC Dr. Judd Shellito and his team to develop a vaccine against Pneumocystis, a leading cause of pneumonia in HIV+ patients. Also of note was the National Institute of Drug Abuses July 2010 $4 million grant to Dr. Patricia Molina and her team at the LSUHSC Comprehensive Alcohol Research Center to study effects of cannabinoids on HIV/AIDS patients. The Comprehensive Alcohol Research Center also includes researchers from the TNPRC and Xavier University. Inter-institutional collaborations with HIV/AIDS specialties include the Louisiana Vaccine Center (LVC) and the South Louisiana Institute for Infectious Disease Research (SLIIDR). Both the LVC and SLIIDR are collaborative initiatives between LSUHSC, Tulane, Xavier, and the New Orleans BioInnovation Center and have resulted in translational research leading to commercializable technologies and startup biotechnology companies. HIV/AIDS research specializations within these two initiatives include HIVrelated respiratory infections, Simian immunodeficiency virus (SIV) related research, and HIV pathogenesis and immunity. Given these existing research specializations, collaborations, unique infrastructure, local need, and international relationships, the BioDistrict university partners should be able to attract more of the federal governments $2.9 billion annual spending on domestic HIV/AIDS-related research. It should also be noted that while local academic institutions have focused research on health disparities for cancer, asthma, and diabetes, HIV/AIDS disparities research and the $428.5 million in the federal Minority AIDS
Initiative (MAI) could be pursued more aggressively with increased collaborative projects.
Cardiovascular Disease, Renal Disease and Hypertension

Based on a 2009 analysis conducted by McKinsey & Co., the Louisiana Department of Economic Development (LED) selected obesity, and specifically its comorbidities diabetes and cardiovascular disease, as the centerpiece for its Blue Ocean biomedical research and specialty healthcare economic development strategy. LED chose this inter-related cluster of chronic diseases because of their massive incidence within the Louisiana population and the vast array of potential industries and clinical research that their effective treatment entails. LED is also taking into account the rapid escalation of NIHs research investment into obesity and its co-morbidities. Excluding ARRA funds, from 2007 to 2010 obesity research spending grew nearly 30% to $824 million. The prevalence of obesity among adults in Louisiana rose from more than 150% from 1990 to 2006, resulting in one of the highest rates of obesity (33.9%) in the nation. Through analysis of population-level health outcomes and synthesis of federal reports, the Louisiana Public Health Institute has done an excellent job of portraying the severe and mutually reinforcing public health threats precipitated by obesity that currently costing this state over $1.3 billion annually. Overweight and/or obese individuals have been found to have a substantially increased risk of cardiovascular disease, and obesity is considered the root cause for nearly 90% of Type II Diabetes cases. Cardiovascular disease is Americas leading cause of death, and according to the United Health Foundations 2010 report, Louisiana ranks 47th in the nation for cardiovascular deaths with 334.8 deaths per 100,000. On an equally devastating level, since 1996, Louisiana has had the highest rate of death caused by diabetes in the nation. Diabetes is also Louisianas leading cause of blindness, kidney failure, heart disease, stroke and amputations. Trends indicate that Louisianas current struggle with obesity-related disease presages an equally severe national epidemic within the next one to two decades. For this reason, Louisiana is well suited to receive national investment to develop treatment strategies for this increasingly important cluster of diseases.
While the Pennington Biomedical Research Center (PBRC) in Baton Rouge is the states undisputed leader in obesity-related research, New Orleansbased institutions, in collaboration with PBRC and separately, are working on a broad array of associated diseases including diabetes, hypertension, and cardiac disease. A major segment of Tulanes NIH-funded research portfolio is dedicated to renal disease and hypertension and a quarter of its top researchers conduct their work in these areas. Tulane Universitys Hypertension & Renal Center of Excellence received its second 5-year COBRE grant from the NIH in 2007 for a total of $11 million. This grant allows the center to continue its faculty mentorship programs and supports specific research in the areas of kidney development in newborns, the impact of diet on high blood pressure, the mechanisms responsible for high blood pressure in kidney patients, and how blood circulates in the kidneys of people with high blood pressure. The Tulane Center for Cardiovascular Health was founded in 1991 by a biochemistry research team from the historic Bogalusa Heart Study. Today, the center conducts research into the major causes of adult heart diseases, atherosclerosis, hypertension and diabetes, and prevention modalities. LSUHSC also has an NIH-funded COBRE grant for its Cardiovascular Center of Excellence that received its most recent $10 million dollar competitive award in 2007. This initiative is supported by LSUHSC core facilities including Administrative, Cell and Molecular Analysis, Cardiac and Vascular Imaging, and Histology. The centers focus is on understanding the mechanisms of cardiovascular disease and pursuing the development of novel therapeutics. Xavier Universitys Center for Minority Health and Health Disparities Research and Education (CMHDRE) began with a primary focus on diabetes and diabetes-related illnesses such as Hypertension, High Cholesterol and Obesity. Incidence of obesity in African-American Louisiana residents is near 40%, placing it more than a full quartile above the rate for non-Hispanic Caucasians. Accordingly, the diabetes rates in African-American populations is one of the states prime areas of health disparity and the CMHDRE works to provide the required infrastructure to conduct research and provide clinical experiential
training and community outreach to combat this disparity. As part of this effort, Xaviers College of Pharmacy and the CMHDRE partnered with Wal-Mart to open Xavier University of Louisianas Health and Wellness Center. Clinical pharmacists at the center provide affordable screenings, education, and nutritional counseling related to diabetes and heart disease. Xaviers College of Pharmacy has partnered with Louisianas Office of Public Health in the Diabetes Prevention and Control Program. This has enabled the College of Pharmacy to be invited to serve on the Louisiana Diabetes Initiatives Council, which is composed of several public, private, and non-profit organizations statewide including pharmaceutical companies and research institutions. This council has been charged with creating a state plan for Louisiana for the prevention, treatment, and care of patients at risk for or with diabetes. Finally, the CMHDRE provides evaluation consultation to several of the Louisiana Department of Health and Hospitals Federally funded chronic disease prevention and control programs (diabetes, cardiovascular disease, arthritis, asthma, and tobacco) housed in the Chronic Disease and Prevention Unit.
Infectious Disease Research: Biodefense and Vaccine Development

While the previous areas of research strength have sought to leverage the local endemic health challenges towards national relevance, infectious disease research and vaccine development are areas where local research has national and international public health significance. Bio-containment laboratories, primate modeling, a multi-institutional vaccine center, and departmental strengths in pharmaceutical and drug development systems are the foundation from which the BioDistrict can attract investment from of global health and national defense interests. The New Orleans region has a clear specialization in the area of vaccine development and infectious diseases. Beyond their previously mentioned work in HIV/AIDS research, the LVC and SLIIDR comprise the regions major inter-institutional collaboration in these areas. Their specialties include fungal disease,
sexually transmitted diseases, malaria, ocular diseases, vaccine development, drug delivery systems, and research commercialization. Xaviers nanotechnology core provides a unique contribution by collaborating with researchers to formulate novel pharmaceutical drug delivery systems for LVC and SLIIDR studies. Primary contributions by Tulane University include TNPRCs nonhuman primate model of malaria during pregnancy and improved diagnostics for tuberculosis and Lyme disease, as well as the Tulane School of Public Health and Tropical Medicines malaria vaccine development activities. Finally, the LSUHSC Gene Therapy Program provides collaborators a vector development core for the production of new recombinant vectors and novel vector technology. In an effort to integrate and enhance these related infectious disease research activities, our research struck upon the growing fields of biodefense and vaccine development as catalytic themes. The previously mentioned LVC is an example of successful collaborative efforts between local institutions in the area of vaccine research and development. The LVC includes researchers from LSUHSC, Tulane University, and Xavier University, as well as collaborators from the New Orleans BioInnovation Center. The LVC has thus consolidated and strengthened world-class local research in the areas of vaccines, infectious diseases and immunology with excellent facilities and support services. It has attracted and helped to retain first class researchers and trainees to the region, and has established new biotechnology ventures in Louisiana. LVC efforts encompass basic science through clinical and translational research, and also encourage promising junior researchers by providing pilot grants that have lead to twelve new independent federal grant awards to junior investigators to date. Overall, LVC researchers have generated over $55 million in funding since 2008, including $45 million in NIH grants. Additional funding came through the Department of Defense ($2.8M), USAID ($2M), the Gates Foundation ($1.7M), NSF ($2M) and other foundations ($600,000). This has been achieved through consolidation and augmentation of critical mass in the following key areas: HIV pathogenesis and immunity; HIV-related respiratory infections, including TB, bacterial pneumonia and pneumocystis; fungal infections including candidiasis and
cryptococcosis; biodefense and emerging infections; and non-HIV sexually-transmitted diseases, particularly Chlamydia and human papillomavirus. To aid in the development of local research programs, the LVC has also developed and helped to staff eight research core facilities designed to aid the flow of vaccine-related research from discovery to vaccine preparation and delivery through pre-clinical testing and analysis. The Center continues to develop critical core infrastructure, contributing nearly one million dollars to date for the purchase of new core equipment and supporting technical staff. Core Facilities include: Genomics, Proteomics, Vector development, Protein purification, Nanotechnology, Immunology, Molecular interaction, and Imaging, along with key infrastructure for studies supporting clinical trials and unique patient populations. Sexually transmitted disease (STD) research is a prominent focus at LSUHSC through the National Institute of Allergy and Infectious Diseases (NIAID) funded Gulf South Sexually Transmitted Infections/Topical Microbicides Cooperative Research Center. Chlamydia trachomatis, the most common bacterial infection of the human reproductive tract world wide, is a focus of the center as well as the larger LSU department of Microbiology Immunology and Parasitology. Other areas of research strength include Herpes simplex virus and emerging STDs such as Mycoplasma genitalium. In line with its previously stated emphasis on minority cancer research, the MHHDRC initiative between researchers from LSUHSC and Dillard will collaborate on Human Papilloma Virus (HPV) research in terms of the viruss relationship to increases cervical cancer rates in female minority populations. The TNPRC, Tulane School of Public Health and Tropical Medicine, and Louisiana Vaccine Center also carry out collaborative and institution specific research in the areas of Chlamydia and HPV. The states large population of STD-positive patients makes this area of research both one of national prominence and local need. In 2010 the National Center for HIV/AIDS, Viral Hepatitis, STD, and TB Prevention reported that out of fifty states Louisiana lead the nation in reported cases of Syphilis, second in Gonorrhea, and third in Chlamydia.
In the decade since the September 11 attacks on the World Trade Center and the Pentagon, the Department of Health and Human Services alone has allocated more funding in biodefense than the US government spent on the Manhattan project during World War II. In FY2011 edition of its annual report on federal biodefense funding trends, University of Pittsburgh Medical Centers Center for Biosecurity reported that of the $60 billion spent on biodefense since 2001, $50 billion had been dedicated to programs with both biodefense and broader nonbiodefense goals and applications. Biodefense encompasses a broad swath of disaster preparedness and planning activities and is therefore the province of civilian and military spending. The DOD (historically ~10% of available funds) focuses on protecting armed forces prior to exposure, and DHHS (historically >60% of available funds) focuses on threats to the general civilian population after exposure. No single federal agency has visibility into the entire biodefense development portfolio, but of great importance is the Biomedical Advanced Research and Development Authority (BARDA) within DHHS Office of the Assistant Secretary for Preparedness and Response (ASPR), which manages Project Bioshield funds, a $5.6 billion dedicated fund for the development and procurement of chemical, biological, radiological, and nuclear (CBRN) medical countermeasures for FY2004 to FY2013. BARDA also manages the Public Health Emergency Medical Countermeasures Enterprise, which prioritizes research, procurement, and deployment strategies for the Strategic National Stockpile. Also of particular importance is the National Institute of Allergy and Infectious Diseases (NIAID), which along with ASPR, has seen continued annual increases in its biodefense-related funds. What makes biodefense such a financially attractive area of biomedical research is the federal governments growing obligation to underwrite the development and stockpiling of CBRN countermeasures for entire segments of the military and civilian populations. The academic research and unique facilities within the BioDistrict are well positioned to take advantage of this opportunity.
Exhibit 4.8 Federal departments involved in the biodefense R&D lifecycle
Source: JPE-CBD, The Integrated National Biodefense Portfolio Initiative One-Portfolio
The Tulane National Primate Research Center (TNPRC) is among the largest of the eight national primate research centers and the only one affiliated with a Regional Biosafety Laboratory (RBL). In response to the nations apparent inability to effectively react to the SARS influenza outbreak and anthrax bioterror attacks, NIH and NIAID established the National Biodefense Program, which sought to develop the necessary regional infrastructure to respond to such events. The first part of this program was to establish Regional Centers of Excellence for Biodefense and Emerging Infectious Diseases (RCEs) in each of the nations 10 regions. The second component was to fund the development of state-ofthe-art National and Regional Bio Containment Laboratories on whose technical competencies the RCEs would depend. In 2007 Tulane received $17.6 million from NIAID to develop one of the 13 regional biosafety labs adjacent to the TNPRC dedicated to developing treatments, vaccines, and diagnostics for airborne infectious diseases and potential agents of bioterrorism. Involvement in the RCE system through its Primate Research Center and Regional Bio Containment Laboratory gives Tulane a firm foothold in the biodefense research arena. An RBL facility provides the necessary security and safety infrastructure needed to study infectious agents that may cause serious or potentially lethal diseases through inhalation. Prior to gaining this rare ability, TNPRC was already the only National Primate Research Center conducting aerobiology research. The combination of TNPRCs existing aerobiology specialization and the new RBL facility gives Tulane the highly unique ability to model airborne infections and inhaled prophylactics in non-human primates using BSL-3 contagions, which is a necessary component in the clinical development of important biological countermeasures to threats such as tuberculosis, avian flu, smallpox, anthrax, and others. An example of this specialty and the resulting market competitiveness was the 2009 $30 million NIAID grant awarded to Nano therapeutics to develop an inhaled version of the injectable antiviral drug, Cidofovir, for non-invasive, post-exposure prophylaxis and treatment of the bioterrorism agent smallpox. Because TNPRC is the only NPRC with an NIH-funded high containment Regional Biosafety Laboratory focused on research with emerging infectious disease and biodefense agents and proficient in aerobiology,
Nanotherapeutics, based in Florida, partnered with the center for the projects clinical development program. The international affiliations and specialization of Tulanes School of Public Health and Tropical Medicine also play a key role in the universitys biodefense research capabilities. US programs such as the Cooperative Threat Reduction initiative, which were deployed in the early 1990s to help secure CBRN weapons facilities after the collapse of the Soviet Union, have now turned their attention to Africa, where many of the most dangerous pathogens weaponized by the Soviets are endemic. The Department of Defense (DOD) spent $200 million in its 2011 budget on increased biological threat reduction activities meant to consolidate and secure pathogens and to build threat agent detection and response systems. Comparable DOD expenditures have been forecasted well into the next decade. In 2009, researchers at Tulane's School of Public Health and Tropical Medicines Research and Training Program in West Africa received a 5-year $7 million grant through NIH to work with Corgenix Medical Corporation, as well as the New Orleans-based Autoimmune Technologies, LLC, and local partners to develop detection kits for lassa fever. Lassa fever is classified as a category A pathogen, a CDC designation shared with botulism, smallpox, anthrax, and other pathogens whose significant health threats pose a risk to national security. Through the combination of its School of Public health and Tropical Medicine, School of Science and engineering, and Center for Infections Diseases Tulane also specializes in the computer modeling of pathogen transmission and epidemiology. This computational focus is integrated with research on public health infrastructure and development has prepared Tulane for the increasing national focus on biodefense, countermeasure development, and systemic response strategies. By utilizing its base of associated vaccine development, drug delivery, and infectious disease research, BioDistrict partner institutions can build upon the regions existing biodefense activities and secure larger federal contracts and partnerships.
Neuroprotection and Rehabilitation

While New Orleans neuroscience-related research is not as prominent or well funded as some of the previously mentioned areas of research, its specializations complement those of the Project Legacy Veterans Affairs Medical Center (VAMC) currently under construction. The billion-dollar VA facility, which will be completed in 2013, will no doubt play a major role in defining the research done within the BioDistrict. Therefore, special attention should be paid to the existing lab groups and departments with which VA researchers will most likely collaborate. The new VA hospital, which has a significantly large budgeted allocation for its development and research, will be an anchor site for the Mental Illness Research and Education Coordinating Center programming. This clear specialization is in response to a historical rate of mental health disorders in active duty and veteran military populations, and to the imperative for research and development of enhanced diagnostic and care methodologies. In 2011, a DOD health surveillance study found that mental disorders have now become the leading cause of hospitalizations for U.S. service members, outpacing all other diagnostic categories. Medical advances have greatly reduced the combat mortality rate from the current wars in Iraq and Afghanistan, saving the lives of more severely wounded military personnel than in any previous conflict. Accordingly, there has been an explosion of nervous system disorders suffered by these critically injured veterans, characterized by traumatic brain injury (TBI) and associated post traumatic stress disorders (PTSD). In July of this year, the Senate passed the Military Construction and Veterans Affairs Appropriations Bill (H.R. 2055), which provided $2.99 billion for research on PTSD and TBI for FY 20122013. As the Defense and Veterans Head Injury Program reports, a large component of the mortality and ultimate damage associated with TBI results not from the primary trauma, but from a chain reaction of biochemical and physiologic events set in motion by the injury. This secondary injury continues for hours to days while the patient is under medical supervision. Accordingly, TBI-focused biomedical research is focused on developing neuroprotective measures to break this vicious cycle of tissue damage.
LSUHSC has a history of research specialization in neuroprotection. In 1993 under the direction of Dr. Nicholas Bazan, the LSU Neuroscience Center obtained a $13.8 million multi-year contract with the United States Army Research and Development Command in a program investigating novel neuroprotective strategies to mitigate secondary injury and expedite recovery after TBI. Beyond their specific research activities, these funds were used to support the construction of research floors in the Lions Building and the purchasing of specialized equipment for the Departments of Anatomy and Cell Biology, Neurosurgery, Neurology, and Pharmacology. Research directed at the mechanisms of secondary injury is a continuing focus at LSUHSC, with emphasis on neuroprotection, oxidative stress, and hyperbaric oxygen therapy. LSUHSC also has a research specialization in corneal wound healing through its department of Ophthalmology and Eye Center. Between 2003 and 2007, 13% of soldiers requiring air medical evacuation had suffered direct eye trauma, higher than any previous US military campaign. Alongside LSUHSC, Tulane's Neuroscience Program incorporates a diverse set of researchers with an overarching focus on pain and stress disorders, including depression and PTSD. Finally, researchers in Tulanes school of School of Science and Engineering are currently conducting biomaterialbased research on translational strategies for optic nerve regeneration. Tulane and LSUHSCs neuroprotection and neurorehablitation research strengths provide a clear foundation for collaboration with the new VA medical center and a means to take advantage of the future federal funding these areas of research will receive.
Biocluster Background
Biotechnology has evolved from science in the lab in the 1960s to transforming technologies in the mid 1970s into the full grown economic mainstay that it is today. At first, new biotechnologies were applied for the development of pharmaceuticals, to enable the production of humanised proteins contained in cells (as an alternative for the derivation of these proteins from animal tissue or plasma). These developments were led by several dedicated biotechnology firms that were much better equipped than traditional pharmaceutical firms to take up this challenge. Currently, modern biotechnology has become the driving force of dramatic changes in innovation processes in many sectors (e.g. pharmaceutical, agriculture, food, animal healthcare, environment, renewable energy, and industrial processes) and can be defined as a collection of technologies, for instance genomics, proteomics, combinatorial biology and chemistry, and high-throughput screening, which cause a rapid advance in all the traditional life sciences, particularly in the pharmaceutical R&D process. Biotechnology has forced dramatic changes in innovation in many sectors (e.g. pharmaceutical, agriculture, food, chemical, environment, energy, etc.) and as a broad field is quite interdisciplinary. Exhibit 4.9 Types of Biocluster links and relationships
Consequently, various applications can be classified under this broad field. The potential for life science businesses to catalyze regional economic development has led to efforts worldwide to build bioclusters that foster the translation of innovative research to products. Silicon Valley is perhaps the best-known example of a cluster, but there are many other examples in different regions and sectors. Bioclusters are heterogeneous entities, in a geographic region, of interconnected companies, specialized suppliers, service providers, firms in related industries, and associated institutions, varying widely in structure, where different types of organizations interact for research, innovation, and economic growth. Clusters offer employment, innovation, and productivity to the local regions. Bioclusters are particularly important because they require proximity or regular face-to-face interactions and trust in order to be effectively communicated. Frequent interactions facilitate formal and informal knowledge transfer and encourage the formation and efficiency of collaboration between institutions with complementary assets and skills. The critical mass effect attracts further companies, investors, services, and suppliers into the cluster, and creates a pool of skilled labor. There are a number of academic, government and commercial relationships that come into play within a regional biocluster.
Source: Technology Management Associates, Inc.
The BioDistrict in Relation to Bioclusters Across the Nation

Biotechnology firms ten to concentrate in certain places withinin the United States. According to the United State Department of Commerce (2003), California alone accounts for approximately 25% of all biotechnology firms, with the other leading states being Massachusetts, Maryland, New Jersey, North Carolina, Pennsylvania, Texas, Washington and New York. The metropolitan areas in the US with bioclusters (i.e. highest density of economic activity centered around biotechnology) are Boston, San Diego, San Francisco, Washington DC, New York, Raleigh, Philadelphia, Chicago, and Los Angeles. Exhibit 4.10 United States Bio Clusters
is the birthplace of the U.S. biotechnology industry and the state accounts for 47% of national R&D spending on biotechnology and generates 53% of the nations biotech revenues. In 2009, California biotechnology companies generated $114 billion of revenue and approximately $19.5 billion were paid by the biomedical industry in estimated wages and salaries to about 270,000 Californians in the industry with an average salary of $72,000. Approximately 2,244 California biomedical companies paid about $3 billion in state and local taxes. It is estimated that almost 1,000 new and exciting medicine products are in the California R&D pipeline. The State of New York also ranked highly, listed as the top state for biotech growth and 2nd in total bioscience employment in the nation, with 92,221 employees, and 3rd in the nation in number of grant awards provided to research institutions, at almost $2.32 billion. New York City had 10 ranked institutions receiving grants, including Columbia University, Yeshiva University, Mount Sinai School of Medicine, New York University, Sloan-Kettering Institute for Cancer Research and The Rockefeller University. Other than these top institutions, there are a number of comparable academic institutions nearby. Therefore, the state can boast being 2nd in academic R&D expenditures at nearly $3.8 billion and also 2nd in life sciences R&D expenditures at approximately $2.5 billion in 2006. Massachusetts has more than 480 biotechnology companies employing approximately 46,553 biotechnology workers. These companies were responsible for more than $4 billion in state payroll in 2009. The state also has 5 of the top 8 NIH-funded hospitals: Massachusetts General Hospital, Brigham and Women's Hospital, Dana-Farber Cancer Institute, Beth Israel Deaconess Medical Center and Children's Hospital Boston. As of 2010, there were an estimated 850 drugs in development, from preclinical to those pending approval stage. Compared to the supersized bioclusters, the next rank of bioclusters is named upper level and includes four metropolitan areas: Chicago, Los Angeles, Philadelphia, and Raleigh (see map, Type 3). These areas are smaller than the supersized bioclusters and geographically are not as expansive. They have a good potential to become much larger biotechnology centers in the future, if state and local governments
Source Ph.D. thesis Ke Chen, 2006
Supersized bioclusters can be defined as regions that monopolize the lions share of our nations biotechnology assets. The largest bioclusters deemed super sized are expansive geographical regions in four states: New York, primarily in and around New York City; California, primarily San Francisco and San Diego; Massachusetts, mostly in the Boston area; and Maryland, with active concentrations in the Rockville and Gaithersburg areas (see map, Type 1 and 2). These areas have the largest amount of biotechnology establishment, biotechnology employment, biotechnology employment density, and pharmaceutical establishment density. They are also the most specialized in physical, engineering, and active life science research and development (R&D). To briefly illustrate the high level of capability in these regions compared to the rest of the country, California
commit tangible resources towards this goal. Therefore, these bioclusters have the best chance of competing with the supersized bioclusters and perhaps becoming one in the future. The average value of establishment, employment, density, and specialization in these metropolitan areas is smaller than that in Type 2 clusters. In terms of specialization, these four biotechnology clusters are more specialized in physical, engineering, and life science research and development than in pharmaceutical manufacturing. The third slightly smaller set of bioclusters are medium sized which includes 17 metropolitan areas: Atlanta, Austin, Buffalo, Columbus, Denver, Detroit, Houston, Kansa City, Miami, Minneapolis, Norfolk, Pittsburgh, Salt Lake City, San Antonio, Seattle, St. Louis, and Tampa (see map, Type 4). Comparatively, these medium sized bioclusters are much smaller than the upper level bioclusters. Instead of large expansive areas, these are limited to large sections of cities which have a burgeoning biotech infrastructure brought by the influx of federal grant dollars and promising new researchers at local academic institutions in the last decade. Because of the increase in funding, there has been an increase in technology transfer from these research institutions and an interest in creating new biotechnology companies. These medium biotechnology centers have steady growth in the total number of biotechnology establishments and density, employments and density, and specialization. They need more support from local and state governments to become bigger and compete with the upper level bioclusters for resources. The fourth type of biocluster is low level, offering great promise if other factors needed to make them bigger and more impactful are utilized and developed. The low level bioclusters are restricted to small areas within cities, which have minimal biotech infrastructure but need significant local and state support to expand. Usually these cities have one or two major academic research centers, which have successfully started the process of translating basic research into commercializable opportunities. They include 20 metropolitan areas: Charlotte, Cincinnati, Cleveland, Dallas, Greensboro, Hartford, Jacksonville, Las Vegas, Louisville, Memphis, Milwaukee, Nashville, New Orleans, Oklahoma City, Orlando, Phoenix, Portland, Providence, Sacramento, and West Palm
Beach (see map, Types 5 and 6). These biocluster locations have the lowest value of biotechnology industry employment and density among 50 US metropolitan areas and therefore, are promising areas in which to invest, since they can learn from the mistakes of all the other bioclusters and perhaps grow faster with effective leadership and investments. Collectively, local academic and state interests have the ability to attract major players to become part of their biocluster if a unified approach can be defined. Metropolitan areas have gained more biotechnology industry activities share specific environmental conditions that are of primary importance for biotechnology industry development. These conditions include state and federal funding of academic research, innovation capability represented by patents and ongoing research, and a technically competent workforce. The presence of these conditions, coupled with the availability of biotech savvy local investors and entrepreneurs, ultimately determines the growth and success of biotechnology companies and bioclusters. Venture capital investments are usually the catalyst that often boosts the expansion of cash intensive biotechnology company R&D into profitability. In the past, bioclusters with the highest concentrations of venture capitalists, such as in New York, Massachusetts and California, created a number of very profitable biotechnology companies. However, with the advent of new technologies such as Skype, the ease of access to companies beyond a certain region allows investors from afar to manage these companies remotely. As a result, the success of many bioclusters, especially those ranked lower, now depends mainly on the availability of local experienced entrepreneurs, who can institute effective operational plans to start and grow biotechnology companies, followed by availability of a talented workforce and supportive academic institutions. The importance of such experienced entrepreneurs is evident in the following case study which reviews the genealogy of the San Diego biotech industry starting with the takeover of Hybritech by pharmaceutical giant Eli Lilly.
San Diego Success Story

Analysis indicates that given the same value of local life science research base, biotechnology innovation base, availability of life science Ph.D. graduates, and venture capital investment, some metropolitan areas may be better off than others in terms of their biotechnology industry employment size. Some other factors may counter, such as entrepreneurship, without which it is hard to translate research in life science in academics to productivity and job increase in private sectors. In San Diego, there is a strong sense of entrepreneurship in academics. For example, in 2001, a report on California's biomedical industry issued by the California Health Institute lists the number of biomedical companies started by University of California at San Diego faculty at 63, exceeded only by Stanford's 64, but higher than UC Berkeley, UC San Francisco, and California Institute of Technology. As in academics, there is strong entrepreneurial activity in the industry. The experience of Hybritech is a good example. Hybritech was the first biotechnology company in San Diego, a joint effort between the UC San Diego faculties and business elites. When it was bought by Eli Lilly, Hybritech employees were not excited because most people had joined Hybritech because they wanted to be in a small, independent company and Lilly was a big firm that moved slowly and conservatively. One by one the Hybritech leaders left Lilly and started their own companies, producing a family of companies that includes Gensia Laboratories, Ligand Pharmaceuticals, IDEC, Dura Pharmaceuticals, and Nanogen, to name just a few, as well as several venture-capital companies. The original biotech company in the area, Hybritech, spawned the biocluster in the region as illustrated in this family tree diagram: Exhibit 4.11 Phylogenic diagram of San Diego's Hybritech-derived companies from 1979-1995
Source: Connect, University of California, San Diego
Like San Diego of the 1980s New Orleans is on track to develop a robust biotechnology business community through ongoing efforts to attract entrepreneurs, commercialize technologies from academic laboratories, and create a new economic sector based on a culture of innovation. A collective continuity of intent manifested by the BioDistrict and collaboration and coordination between its constituent institutions is giving rise to both startup companies from regional universities, healthcare institutions and local entrepreneurs. The New Orleans BioInnovation Center has developed an integrative pathway of transitioning discoveries out of the lab and into commercial opportunities. The Centers technology commercialization pipeline now includes over 30 hightech startups in various stages of development including: MiniVax is a LSU-HSC spinout developing therapeutic and preventative vaccines for HIVAIDs related lung diseases e.g. Pneumocystis carinii, a fungal pathogen that can cause severe, and often fatal, lung infections in patients with a compromised immune system. MiniVax was recently awarded a $600,000 advanced technologies STTR research and development grant by the National Institute of Allergy and Infectious Diseases (NIAID) at the National Institutes of Health (NIH). Scout Biodiagnostics was spun out of Oschner Hospital system is developing advanced biomarker solutions for the clinical cardiology and nephrology markets based on a proprietary ELISA-based platform. The key Scout technology uses blood biomarkers to predict the early development of coronary artery disease in patients with chronic kidney disease. InnoGenomics was started by a successful local serial entrepreneur and focuses on a genomics solution provider focused on developing and marketing next-generation genetic testing solutions for paternity and forensic applications. InnoGenomics plans to optimize a forensic DNA testing kit that will facilitate the use of biological samples that are substantially smaller and/or more degraded than the current industry standard to analyze crime scene evidence.
can significantly reduce the risk of infection in mothers and newborn babies. Decisions about the scientific nature of bioscience development in new Orleans will need to come from the creative and expert scientists and researchers who are strategically retained and recruited to focus on the potential for transformative leaps forward in their work and in the work of others in these key areas of strength identified in this section. Success will also require the involvement of senior university administrative officials whose buy-in will be essential for facilitating interactions, collaborations, and the pursuit of promising new directions.
Focusing the BioDistricts Resources for the Greatest Effect

The BioDistrict is currently in the master planning process, but this has not stopped it from engaging in a wide array of economic development initiatives. These initiatives have focused investment and attention on the growing bioscience sector and the once-in-ageneration opportunity for economic renewal posed by the unprecedented research and medical investment ongoing and planned in the BioDistrict over the next 510 years. Of note has been the award of $150,000 from Baptist Community Ministries to form a Louisiana branch for the Biotechnology International Organization to conduct a comprehensive evaluation of the local bioscience workforce. The BioDistrict has worked with the Greater New Orleans Foundation and other local and national partners to receive $600,000 for focusing philanthropic funds on job training in the biomedical sector. The Association of University Research Parks (AURP) was recruited by the BioDistrict to hold its 25th annual meeting in New Orleans in December 2011. Finally, the BioDistrict has also worked to spearhead and convene multiple workforce development and scientific curriculum planning initiatives. These activities represent a broad-spectrum approach to biocluster development and are essential for the long-term viability of this economic sector. Once the master planning process is complete, the BioDistrict will need to incorporate more targeted economic development activities toward supporting and promoting development of the regions most promising areas of research and commercialization. To accomplish this more refined goal, the BioDistrict will need to work closely with its
NOvate Medical Technologies was spun out of Tulane University and focuses on decreasing the cost of healthcare delivery and improving quality of life through innovative medical devices. Its first product, SafeSnip is a medical used during childbirth, which
constituent institutions to support catalytic projects within these areas. For the purposes of this report, a catalytic project can be understood as a unilateral or collaborative initiative through which research sectors gain a markedly greater level of research capacity, funding eligibility, and commercialization opportunities. Local examples of past catalytic projects include the development of the Louisiana Cancer Research Center, LSUHSCs neuroprotection research contract with the US Army Research and Development Command, Tulanes NIH-supported development of RBL facilities at the TNPRC, the establishment of Xaviers RCMI program, and the development of the New Orleans BioInnovation Center. The BioDistrict must continue to focus its economic development activities around university-driven catalytic projects occurring in the Areas of Research Strength outlined in this section. Through a synergistic relationship, it is the responsibility of each discreet institution within the BioDistrict to define and pursue the development of catalytic projects specific to their own respective internal agendas and research strengths, while it is the responsibility of the BioDistrict to support, promote, and leverage their efforts toward the development of a regional research and entrepreneurial community.
productive means of converting these catalytic projects to economic growth with a clear rate of return for all parties. The results from this type of collaborative structure will be greater than those which each organization could accomplish solely on their own and will thereby provide a value added service to the local biomedical community. While it is not the goal of this section to detail all potential avenues of collaboration between the BioDistrict and its constituent research institutions, the following example illustrates the broad range of available partnership possibilities and catalytic project potentials:
Economic Development
An obvious collaborative strategy would involve the identification of, outreach to, and recruitment of biopharmaceutical industries whose market activity complements an ongoing or planned catalytic project. As previously mentioned, this industry yields 30% greater returns in terms of wealth creation and personal income than the generic consumer sector, making economic development a top priority of the BioDistrict. Academic partnerships with the biopharmaceutical industry are also economically desirable and provide the final connection for the increasing emphasis on a Translational Research model. By synthesizing and marketing the local research to industries nationwide, providing a detailed land use plan and physical vision within the district, and leveraging state economic development initiatives, the BioDistrict can play a fundamental role in the recruitment of biopharmaceutical industry.
Defining the BioDistricts Role in Successful Partnerships

Currently, catalytic projects are understood as the sole responsibility of their parent institution, regardless of their relevance to the greater New Orleans research community. This situation perpetuates a lack of coordination between high-impact catalytic projects, resulting in a loss of potential research synergy and economic opportunity. Because of its unique transinstitutional representation and state-enabled abilities, the BioDistrict can play a central role in the synthesis of this regions most important research initiatives. We recommend the implementation of the organizing 2 principle of Subsidarity as the most efficient and
2 Subsidiarity is an organizing principle that matters ought to be handled by the smallest, lowest or least centralized competent authority. The Oxford English Dictionary defines subsidiarity as the idea that a central authority should have a subsidiary function, performing only those tasks, which cannot be performed effectively at a more immediate or local level.
Database of Local Research

Each of New Orleans research institutions has a clear understanding of its own current and emerging strengths and respective initiatives, but there is currently no mechanism to understand research trends and assets on a regional scale. Such an understanding is crucial in marketing the BioDistrict beyond Louisiana and for the recruitment of industries that have the greatest potential to complement specific projects and the district as a whole. A key recommendation of this section is that the BioDistrict develop an informatics system that will allow it to accurately appraise and promote the research of its constituent organizations. While it is the role of the individual research institutions to manage any formal
negotiations on industry partnerships, the BioDistrict is ideal to broker introductions across the industry on behalf of the region as a whole and to accomplish this through an integrated real-time informatics system that connects and links scientists and facilities.
to the top state research and development (R&D) tax credits in the nationthe credit is quite generous and refundable, so it is a true benefit to new companies to locate in Louisiana. We've already seen firsthand companies are moving to Louisiana, and/or expanding thanks to this credit. Finally, the development of a state-sponsored LED bioscience recruitment fund for high profile researchers and industry candidates should be pursued. Capital is going to be critical to the future development of this and other knowledge based economic development initiatives.
Land Use
Real Estate Programming for BioDistrict New Orleans is being prepared by the AECOM team as part of the BioDistrict Strategic Action Master Plan. This overall strategic action plan will outline the projected 20-year growth of various types of real estate in the BioDistrict using local data and case studies of other comparable research clusters and the areas of academic research strength identified in this section. Using this information analysis, AECOM planners will integrate the districts existing zoning, community input, and other municipal initiatives to define an ideal land use plan for the BioDistrict. The land use recommendations that will be included in AECOMs final Strategic Action Master Plan will provide a road map for the integration and placement of further academic, office, and research development facilities within the BioDistrict.
Economic Incentive Programs

Working Paper IV Programming Appendices lists the national and state economic incentive tools available for the BioDistrict for industry recruitment. Seeking to exploit every advantage, the BioDistrict has recently concluded that the Louisiana Digital Media Incentive Program is of particular relevance to the increasingly data-driven world of biomedical research and medical care. The Digital Media Incentive Program offers a 25% tax credit for digital interactive media expenditures made in Louisiana, a 35% tax credit on payroll expenditures for Louisiana residents, no annual cap on tax credits, and prohibition of the sale of tax credits or their use against Louisiana tax obligations. Though conceived to promote the videogame industry, this incentive has been successfully applied to the Lafayette-based Schumacher Group for software applications that integrate emergency medical departments with overall hospital operations. Conversations with Louisiana Economic Development (LED) representatives have revealed that this tax credit can, in some instances, even be applied to product-specific hardware, as was done for Globalstar Inc. Additionally, Louisiana has reestablished the Angel Tax Credit adding more value
Next Steps
Considerations for New Orleans
The goal of this section has been to to identify the collective strengths and challenges of the local bioscience and biomedical institutions for all parties with a collective interest in the success of the BioDistrict. Further recommendations and decisions will need to come from the university faculty and aligned professionals themselves, emanating from discussions within their own departments and organizations and between academic institutions. However, we can say with authority that: The academic milieu of New Orleans holds unlimited opportunities for the development of new programs that have a firm foundation in strengths that already exist within the system; these programs could be nationally competitive and unique to New Orleans. The professionals we have engaged have expressed a clear willingness and excitement about expanding their thinking to seek new opportunities and put their shoulders behind the wheel of the BioDistrict project, which they see as an important new opportunity for enhancing medical research, expanding clinical care, and fostering business opportunities and economic development. Increased collaborations across disciplines and across institutions are rapidly becoming the national, if not international, norm. National funding agencies are targeting this strategy through their research programs, for they realize that the return on investment of their research dollars is magnified when experts work together. Translational medicine is the future of medical research, for advances in technology have brought the research laboratory closer to the bedside than ever before. Organizations that rely on the old strategy of single-investigator research and that fail to develop models fostering translational medicine approaches will fall behind and disadvantage their own investigators from obtaining research funding.
Finally, translational medicine is the key to bringing new technology and products to market. This can best be accomplished through partnerships between experts in academia and experts in industry. The BioDistrict project seems to us an ideal venue for facilitating the transfer of new knowledge to new products and to the improvement of patient care.
In order to advance the current or planned catalytic projects and determine how the BioDistrict can help be a part of their success, the BioDistrict and consultant representatives will need to meet with the research directors from each institution to first ensure that the areas of academic research identified in this report are indeed at the forefront of their respective institutional agendas. Next, similar interviews will be held to determine what current and planned catalytic projects are forthcoming in these promising research areas, and what activities the BioDistrict may contribute to their success. The results of these interviews as well as related case studies will be compiled in the implementation phase and will lay the groundwork for future BioDistrict involvement in university-led catalytic projects.
Section 5: Translating Successful Models to New Orleans
BioDistrict New Orleans | Translating Successful Models to New Orleans | January 2012 | Page 5 - 1
Translating a Successful Model to New Orleans

The Intellectual Challenges
Assessing New Orleans Readiness
As we have shown in the two previous sections, New Orleans has many of the academic assets necessary to move the city forward as a nationally and internationally competitive center for biomedical research and biotechnology development. However, academic assets alone are not sufficient for true success, as has been demonstrated by centers such as Boston, San Francisco, and San Diego. In each of these clusters of biotechnology development, university- and institute-based research has been strengthened by other factors that, taken together, have promoted vast economic development. These factors include: Strong interactions between the universities and the economic development offices of city and state government Availability of suitable space and facilities in locations that promote scientific and business interactions Availability of investments from government and venture capitalists Access to legal professionals who can consummate licensing arrangements Access to the myriad other professionals essential to commercial development. Exhibit 5.1 is a Readiness Self Assessment Tool that lists a number of success factors that have been proven to be essential for establishing effective collaborations. The tool can be used as a framework to help facilitate dialogue and discussion in community stakeholder settings. A skilled facilitator can help develop an approach to gaining input from constituents either during meetings or beforehand and create an atmosphere for constructive dialogue and discussion about ways to leverage strengths and to close gaps.
The Real Estate Challenges

Space Demand / Phasing / Location Criteria: Nine Potential Models
After analyzing numerous bioscience research and technology parks and clusters across the U.S., CBRE selected nine that we believe provide a precedent for BioDistrict New Orleans: Technology Enterprise Park, Atlanta, GA Center for Emerging Technologies, St Louis, MO North Carolina Research Campus, Kannapolis, NC Innovation Depot, Birmingham, AL Delaware Technology Park, Newark, DE Coldstream Research Park, Lexington, KY University of Iowa Oakdale Research Park, Coralville, IA Piedmont Triad Research Park, Winston-Salem, NC Tri-Cities Research District, Richland, WA Any case study analysis has important limitations, all driven by the central precept that each venture is unique in its specific characteristics, such as location, physical components and, perhaps most importantly, partners. Therefore, identifying research and technology park experiences that include all the components of BioDistrict New Orleans was challenging. But we believe that these initiatives, to a greater or lesser extent, share many of the fundamental characteristics of the proposed BioDistrict. Our analysis explored the real estate development performance of these projects, as well as lessons learned and implications for the development of a New Orleans bioscience cluster. Profiles for the short- and long-term absorption trends at these locations are included in the Task 2 report as a benchmark for the amount and type of land uses contemplated for BioDistrict New Orleans.
Exhibit 5.1: Readiness Self Assessment Tool
The following matrix can be used as a framework to help facilitate dialogue and discussion in community stakeholder settings. A skilled facilitator can help develop an approach to gaining input from constituentseither during meetings or beforehandand create an atmosphere for constructive dialogue and discussion about ways to leverage strengths and close gaps.
Success Factor
Rating (5 being the highest current assessment score possible) 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
Comments
Additional Strength-Building Steps
Facilitative Leadership Political Support Scientific Expertise Academic Institution Collaboration and Buy-In Corporate Community Buy-In Community Stakeholder Buy-In Workforce Capability and Capacity Licenses (CTSA) Reputation and Brand Philanthropy Land Facilities and Infrastructure Funding and Incentives
Absorption Trends
Once started, a research clusters absorption can vary significantly, depending on its location relative to other life sciences assets, primacy of biotech industry in the region, type of biotech space, private sector commitment, availability of public incentives, local labor pool education and preparedness for life sciences, and access to venture capital. Given the interplay of such factors, no comparable case study exists that can project the absorption pattern for BioDistrict New Orleans. However, using the selected case studies as benchmarks, and assuming substantial ongoing investment in new medical research at the Louisiana universities as well as other sources of funding, we project the potential absorption of non-institutional bioscience industry demand, as illustrated in Exhibit 5.2.
Exhibit 5.2 Potential Absorption by Period (Gross SF) Type R&D/Institutional Medical Office Manufacturing Total Type R&D/Institutional Medical Office Manufacturing Total
could be accelerated by key catalytic events, with the absorption potential upside varying significantly, on the success of the collaborative efforts. Based on the case studies, the long-term average annual absorption optimistically could range from 75,000 to 100,000 SF per year. The GCR/Dr, James Richardson BioDistrict Economic Impact Study identifies the following economic benefit potentials. The BioDistrict currently has between 26,000 and 34,000 employees in a wide variety of 9 jobs . These jobs include work in the medical-related institutions, city government, and the judiciary, as well as jobs in food service, retail, personal services, and other jobs that support the communitys well-being. Over 14,000 of the current jobs within the BioDistrict are provided by major institutional employers within the BioDistrict, such as the LSU Health Sciences Center, New Orleans City Government, and Xavier University. The economic impact analysis is focused on the jobs that will be created and/or saved due to the upcoming major developments in the BioDistrict, including the creation of the VA Hospital and the University Medical Center. The economic impact of this projected development is summarized in Table 6; projecting new employment after 5 years, 10 years, and 20 years. The estimated direct employment will include jobs in the VA Hospital and the University Medical Center as well as other newly created jobs in the biomedical industries and other new start-ups related to the development of the hospitals. Indirect jobs created due to the expansion of the hospitals will be within the New Orleans area, but not necessarily in the BioDistrict itself. This net new employment includes the economic activities at the VA Hospital and the University Medical Center as well as other developments that are projected to locate in New Orleans-these new developments may be medical-related or just technology-related. The jobs resulting from spinoff medical and technology activity are anticipated to be in three major employment/industry categories: research and development, medical services, and manufacturing (particularly medical/pharmaceutical manufacturing). In Table 7 we show the aggregation of personal earnings and state and local tax collections over the first five years, the first ten years, and the first twenty years of operations.
Years 0 to 5 50,000 25,000 100,000 175,000 By Year 5 50,000 25,000 100,000 175,000
Years 6 to 10 200,000 25,000 400,000 625,000 By Year 10 250,000 50,000 500,000 800,000
Years 11 to 20 500,000 50,000 250,000 800,000 20-Year Potential 750,000 100,000 750,000 1,600,000
The absorption in the initial years, after adjusting for big anchor tenants or institutions, is typically less than in subsequent years. In the long term, i.e. over 10 to 20 years, absorption per year may average from 15,000 SF to 35,000 SF.
Economic Impacts for BioDistrict New Orleans

Given the current macro-economic conditions, the paucity of venture capital investors and biosciences firms in the state, and the relatively short history of bioscience initiatives, the absorption at BioDistrict New Orleans is, in the short term, likely to average on the lower side of the range. Thereafter, development
Sources: Dun and Bradstreet business data (2010) and Census Bureau Local Employment Dynamics Estimate (2008)
Table 6: Economic Impact BioDistrict, Including VA Hospital, University Medical Centers, and Private Developments
(on annual basis, 2010 dollars)
as of YEAR 5 Estimated Direct Employment Estimated Direct and Indirect Employment Estimated Direct and Indirect Personal Earnings (millions) Estimated State Taxes (millions) Estimated Local Taxes (millions) 5,500 9,680 $353 $26 $22
ANNUAL IMPACT as of as of YEAR 10 YEAR 20 7,600 13,400 $490 $36 $30 9,800 17,250 $630 $46 $39
Over a ten-year period, once the projects are fully operational, the new and saved jobs related to BioDistrict New Orleans investments are estimated to be 7,600 direct jobs resulting in an additional5,800 indirect jobs for a total employment impact of 13,400. After 20 years it is estimated that 9,800direct jobs will have been created or saved in the BioDistrict. This suggests an economic impact of over 17,200 jobs including both the 9,800 direct jobs and more than 7,400 indirect jobs throughout the metropolitan area. In Table 7 the summation of personal earnings, state tax collections (including sales, personal income taxes, corporate taxes, excise taxes, and the array of other state collections) and local tax collections (including primarily property and sales taxes) are presented for the first five years of operations, the first ten years of operations, and the first twenty years of operations. The New Orleans area will be boosted by net new personal earnings of nearly $1.8 billion within the first five years of the operations of these facilities, over $3.9 billion within the first ten years, and $9.6 billion within the first twenty years of operations. Net new state tax collections will add up to approximately $130 million over the first five years of operations, $290 million over the first ten years, and over $700 million over the first twenty years of operations. Finally, local tax collections will add up to $110 million over the first five years of operations, over $245 million over the first ten years, and over $595 million over the first twenty years of operations of the developments within BioDistrict New Orleans.
Table 7: Aggregation of Personal Earnings, State Tax Collections, and Local Tax Collections Over 5 Years, 10 Years, and 20 Years (in millions of 2010 dollars) Cumulative Benefits After 5 Years After 10 Years After 20 Years Summation of Personal Earnings $1,767 $3,944 $9,617 Summation of State Tax Collections $129 $288 $702 Summation of Local Tax Collections $110 $245 $595
Note: All estimates are based on preliminary data; in spite of the detail contained within these estimates, all figures are preliminary, as data inputs and assumptions may change somewhat in the coming months/years10
Adding the VA Hospital and the University Medical Center plus the associated private developments will create or save an estimated 5,500 jobs in this economic development district. These 5,500 direct jobs will lead to nearly 9,700 total jobs in the metropolitan area (including the 5,500 direct jobs). The activity will also spur an increase in personal earnings of over $350 million as well as infuse state tax collections with over $25 million and local tax collections with nearly $22 million. It is expected that as the enhanced medical facilities secure additional NIH funding or other sources of grants, generate new medical facilities, and create various businesses, these activities will also add to the direct jobs, personal earnings, and state and local tax collections. A very modest increase of 2,100 new jobs over a tenyear horizon is projected. This is a number that must be examined and re-examined carefully. If major health care services are being offered in New Orleans, if major research projects are ongoing, and if there is a critical mass of health care professionals, private investment in companies will follow. This is a piece of the puzzle that must continue to be examined very closely. At this time we are estimating 2,100 net new jobs based on employees per square foot of expected building types (i.e. research and development, medical office, and manufacturing).
10
Note: All estimates are based on preliminary data; in spite of the detail contained within these estimates, all figures are preliminary, as data inputs and assumptions may change somewhat in the coming months/years
GCR/Richardson/Heidelberg Economic Impact Study, October 2010
Catalytic Events
CBRE studied the evolution of research parks and clusters to identify the nature of the catalytic events that can jumpstart a life science cluster in a region. At Technology Enterprise Park in Atlanta, the catalyst was the citys support for the industrys premium event, the BIO Conference in 2009. At Kannapolis, the catalyst was the sustained vision and initiative of a private entrepreneur to develop a mixed-use Biopolis. Securing a big player in the industry as a tenant can also enhance the appeal of a cluster for other firms seeking locations, as happened when DuPonts Advanced Materials Lab relocated to Delaware Technology Park. Setting up key research-related facilities such as incubator space proved a catalyst at other parks, including the University of Iowa Oakdale and Piedmont Triad Research Parks. Partnership with public agencies was another catalyst, with state-funded infrastructure. Funding spurred development at the Coldstream Research Park, while state designation as an Innovation Partnership Zone fueled development at Tri-Cities Research District in Richland, WA. The federal governments funding of the nanotech alliance at Delaware Technology Park helped to accelerate absorption. The evolution of an economic development district such as BioDistrict New Orleans always begins with a major investment in creating new and dynamic facilities. Some of this investment will be public, such as the investment in the VA Hospital by the United States Government; some will be mixed funding, such as the University Medical Center, with some of the investment coming from the federal government as part of the Katrina reimbursement process, some from the commitment of the state, and some from private or other such sources. Some will be public/private activities with the public sector putting up a variety of tax credits and other subsidies with the hopes of inducing private investment. Finally, there will also be private investors who sense a chance to make a high rate of return on their investment. All of these activities are essential to the long-term development of any region. Public investment, by itself, can initiate the process and provide the economic environment so that private investors sense the opportunity to make a profitable investment; but public investment, by itself, cannot permanently sustain a growing economy. Private dollars must be invested in the city in order for the growth to be sustained and permanent. The intense construction activity in the first three to four years will create a very visible surge in the economy. Economic impacts related to the projected construction activity over the next twenty years are illustrated in Tables 4 and 5. Focus is on the first three years since this is the time period in which the VA Hospital will be built and the first four years since this is the time period of construction for the University Medical Center. The focus is next on projected private activities occurring in the next twenty years. Other facilities will be built during this time period as well, though these projections are not quite as assured as the expenditures on the hospital facilities.
Key Conclusions Construction Impacts

The BioDistrict will witness especially significant construction impacts within the first 3 4 years as the VA and UMC hospitals are built Construction activity will generate7,600 jobs per year within the first 3 years There will be substantially less construction activity in years 5 20 as ancillary facilities and uses are constructed In years 6 20, ongoing construction activity will continue to generate 400 550 new jobs per year
Assumptions are made on how much of the direct construction spending will be spent on the construction of the facility and how much on equipment within the hospital facilities. It is estimated that just around 60 percent of the total spending would be direct construction spending in the New Orleans region. The other 40 percent, we estimate, will be spent on equipment and other hospital features that will be constructed out-of-state.
New construction activity during the first three years will produce over 7,600 jobs per year in construction, services, trade, financial services, manufacturing, and other such sectors. About 42 percent to 45 percent of the jobs will be in the construction sector. Over the first three years the economic activity associated with the new construction will create approximately $700 million of personal earnings in the New Orleans Metropolitan Area and approximately $95 million in net new state and local taxes. In the fourth year of construction, employment related to the construction activity will drop to approximately 4,200 since the VA Hospital will have been completed by this time. But the construction activity will still make a major contribution to the economic success of the New Orleans region. In the fifth year of construction the net new construction jobs will drop to100 - 150 since at that point we expect that both the VA Hospital and University Medical Center will have been completed. This level of employment of 100 150 persons is associated with other facilities being constructed within the District. Over the first five years of construction activity, over $1.25 billion will be invested in buildings and structures in the BioDistrict New Orleans, a figure that does not include major equipment purchases. This will lead to overall economic activity of over $2.5 billion with personal earnings of approximately $850 million and net new state and local tax collections adding up to over $110 million. Over this five-year period net new jobs in the New Orleans region associated with the construction of these facilities will average almost 5,500 per year
Table 4: Projected Construction Activities in the BioDistrict and Their Economic Impact
Direct Construction Spending (millions) Economic Transactions (millions) Personal Earnings (millions) Jobs State and Local Revenues (Millions)
Individual Activities Occurring by Year (activities including, VA Hospital, University Medical Center, and Other Construction) VA Hospital (3 years) University Medical Center (4 years) Other Construction Spending (first 5 years) Other Construction Spending (years 6-10) Other Construction Spending (years 11-20) $160 $188 $321 $376 $106 $124 3,475 4,073 $14 $17
$6
$12
$4
130
$1
$20
$39
$13
423
$2
$24
$48
$16
522
$2
Summation of All Activities (dollars are summed over the time period; employment is an average for each year Total, Years 1 to 5 Total, Years 6 to 10 Total, Years 11 to 20 $1,260 $98 $240 $2,526 $196 $481 $834 $65 $159 5,473 423 522 $113 $9 $2
Note: All estimates are based on preliminary data; in spite of the detail contained within these estimates, all figures are preliminary, as data inputs and assumptions may change somewhat in the coming months/years
In year 6, when private and other activity are projected to increase, the level of employment related to construction activities is estimated to be 400 - 450 new jobs per year, and this level is expected to be sustained through the tenth year. Net new construction spending is estimated to nearly $100million over this five-year period with total economic activity amounting to almost $200 million and personal earnings of approximately $65 million over this time period. For years 11 through 20 it is projected that new construction activity will create between 500 and 550 new jobs each and every year. Net new construction spending during this ten-year period is estimated to be $240 million resulting in total economic activity of over $480 million, personal earnings of almost $160 million and state and local tax collections of over $21 million. The construction activity is temporary in the sense that the VA Hospital and University Medical Center will only be built once. This is also true for the other facilities that would be constructed in the BioDistrict. However, if the BioDistrict is a major success, it would be normal to witness new construction each and every year. The continued new construction would not reach
the same level of expenditures as in the early years, but it would be consistent and sustained.
Table 5: Construction Activities of VA Hospital, University Medical Center, and Other Projected Investments in BioDistrict, 2011 through 2030 (all dollars in millions)
Direct Construction Expenditures Per Year 2011 2012 2013 2014 2015 20162020 20212030 $354 $354 $354 $194 $6 $20 $24 Total Economic Transactions Per Year $709 $709 $709 $388 $12 $39 $48 Impact on Personal Earnings per Year $234 $234 $234 $128 $4 $13 $16 Impact on Direct, Indirect, and Induced Employment per Year 7,678 7,678 7,678 4,203 130 423 522 Impact on State and Local Tax Collectio ns per Year $32 $32 $32 $17 $1 $2 $2
Green space and water features are provided as important additional amenities for fostering relaxation, scientific and personal conversations, and socializing by workers during breaks and after hours.
Employment Projections
Health care, and the interrelated field of biotechnology, are critical components of the New Orleans economy. The employees include some of the most highly educated and trained individuals in the workforce. Hurricane Katrina totally disrupted the health care industry, and temporarily halted the development of the emerging biomedical concentration in the area. As the area rebuilds, it is critical not only to replace the workforce assets that were lost, but to efficiently plan for the future economy. In the strategic plan for the development of the biomedical component of the BioDistrict New Orleans, a specific action item identified the need to assemble information on the workforce to serve as the guide to training decisions. Bioscience is a complex area involving over 90 occupations. It stretches across multiple industry segments, including universities, hospitals, ambulatory care, nursing homes, private companies, and others. 2009 estimates show a total of 184,700 employees statewide, and 46,700 in the New Orleans region. The largest occupation categories in terms of numbers include: registered nurses (39,610 and 11,290, respectively); nursing aides and orderlies (24,810 and 4,650); licensed practical nurses (19,140 and 4,280); and home health aides (11,040 and 2,590). There are other sizable groups with employment exceeding 1,000 at the local level pharmacists (1,130), pharmacy technicians (1,180), dental assistants (1,190), and medical assistants (1,400). Information is also included on median wage, the wage points at the 25th, 50th, and 75th quartile, mean hourly wage, and mean annual pay. The identification of occupations for which there is an imbalance between supply and demand is a very inexact science. But with a number of caveats, a good bit of information can be derived by comparing the yearly demand for specific occupations with the numbers trained in those programs that would supply most of the workers (summed from the graduate data). There appears to be a surplus for a number of occupations biomedical engineers, epidemiologists, dieticians and nutritionists, pharmacists, MDs,
Projected ANNUAL Activity During Five- or Ten-Year Span
Note: All estimates are based on preliminary data; in spite of the detail contained within these estimates, all figures are preliminary, as data and assumptions may change somewhat in the coming months/years11
Location Criteria
Major criteria used to evaluate master plan alternatives for bioscience clusters include the following: Ability to assemble 50-100 acres of industrially zoned land for future pharmaceutical manufacturing/packaging facilities. Proximity to residential neighborhoods should be avoided. Location of R&D facilities within walking distance (1/4 to 1/2 mile) from hospitals and medical research centers to encourage and facilitate collaboration. Location of R&D facilities near significant commercial centers with restaurants, coffee shops, drug stores, and daily services for employees convenience and social interaction. Access to conference facilities. Affordable housing (i.e., apartments) within walking distance or a 5-minute commute, ideally by bus or trolley, as biotech workers commonly work long hours, often times late into the night.
GCR/Richardson/Heidelberg Economic Impact Study, October 2010
11
physician assistants, speechlanguage pathologists, veterinarians, radiologic technologists and technicians, EMTs and paramedics, public health workers, and massage therapists. On the other hand, we seem to be deficient in other areas occupational therapists, physical therapists, medical and clinical laboratory technologists, medical and clinical laboratory technicians, cardiovascular technologists and technicians, and medical transcriptionists. The production of registered nurses appears to be sufficient to meet projected demand, at both the state 12 and local level. Using industry standard rules of thumb for employment by land use type for the projected bioscience industry demand discussed in Exhibit 5.2, we have estimated that the BioDistrict could generate over 5,000 new jobs over the next 20 years (see Exhibit 5.3).
Exhibit 5.3 BioDistrict Life Science: Projected Employment by Period Type R&D/Institutional Medical Office Manufacturing Total Type R&D/Institutional Medical Office Manufacturing Total
Leading Practices
Several leading practices are taking hold within the industry that should be monitored continually and actively considered in relation to the BioDistrict Strategy.
Business Incubators
Business incubators nurture the development of startup companies, helping them survive and grow during their start-up period, when they are most vulnerable. Incubator programs provide client companies with business support services and resources tailored to high growth, immature firms. The most common goals of incubation programs are: providing core infrastructure business services, creating jobs in a community, enhancing a communitys entrepreneurial climate, retaining businesses in a community, building or accelerating growth of a company, and diversifying local economies. The National Incubation Association (NBIA) suggests that the terms incubator and accelerator can be used interchangeably and that the term accelerator is simply a new, more fashionable way of referring to incubators. An Accelerator building is intended for use by companies that have outgrown their space by making way for new start-ups to back fill the incubator. Accelerator buildings floor plates are flexible so that they can expand as needed or as funding permits.
Years 0 to 5 150 125 300 575 By Year 5 150 125 300 575
Years 6 to 10 600 125 1,200 1,925 By Year 10 750 250 1,500 2,500
Years 11 to 20 1,500 250 875 2,625 20-Year Potential 2,250 500 2,375 5,125
Soft Landing Centers

A Soft Landing Center is a collection of furnished offices that have been designed with early-stage technology commercialization in mind. The amenities of the Soft Landing Center provide start-up companies with the professional platform necessary to begin business activities immediately. Situating a business at the Soft Landing Center allows for smooth and easy access to markets across the United State. The difference is the designation given by the NBIA. This designation recognizes outstanding incubators that are capable of helping and welcoming international firms to enter into the domestic market with entrepreneurial services, helping to cut through governmental red tape, and helping provide access to capital, domestic market research, and export strategies. The creation of an Accelerator Building for mid size companies and the Soft Landing Designation are two potential opportunities for the BioDistrict.
Related Commercial Demand

In addition to the employment opportunities and the tax base that will be created by the bioscience industry, the BioDistrict will also benefit from the commercial and residential development that will be necessary to serve the employees of the District, who, due to their working schedules, would benefit from nearby housing.
Research Edge Health Care and Biotech Workforce on the Greater New Orleans Area Overview, October 2009
12
Potential Projects for BioDistrict New Orleans Development

Translational Research Facility
A new Translational Research Facility, modeled after that described previously in Boston (the Harvard Clinical Research Institute), may be worthy of emulation by the research and clinical organizations partnering in BioDistrict New Orleans. This facility could be established within a freestanding building, or, as has discussed elsewhere, in the replacement facility for Charity Hospital. Establishing a central translational research facility in the heart of the BioDistrict would eliminate redundancies among academic and clinical partners, including the need to maintain independent Institutional Review Boards for approving clinical trials. It would also provide access to expert professionals trained in data collection, tissue banking, and data interpretation, including medical bioinformatics. These professionals would also be versed in the important issues of patient confidentiality and clinical trial design. Furthermore, such a center could provide one-stop shopping for industry partners wishing to sponsor clinical trials or to access research being done by the university and institute partners. Some of this infrastructure is already present in New Orleans and could become the foundation upon which a common translational core facility could be built. For example, some institutions have developed programs to facilitate clinical trials with private industry. Others, such as Ochsner Health System, have carefully chronicled and made available for inspection all the clinical trials under its auspices. A translational research facility could also garner vital federal dollars. The Federal Government is increasingly recognizing the importance of multiinstitutional, regional clinical and translational research centers and, through the National Center for Research Resources (NCRR), has established funding programs to promote collaborative translational efforts among multiple institutions. One of these initiatives is the Clinical and Translational Science Awards (CTSA) program to support educational and research efforts aimed at developing clinical and translational research centers.
Administered through the NCRR, CTSAs are cooperative grants purposed to create consortia to improve the way biomedical research is conducted. Launched in 2006, the program now includes 55 medical research institutions in 28 states. When the program is fully implemented, it will support approximately 60 CTSAs across the nation. Efforts to win CTSA funding in Louisiana have so far been unsuccessful. As mentioned previously, NIH is considering establishing a new Institute, called the National Center for Advancing Translational Sciences, which may replace the NCRR and take over the CTSA program.
Other Potential Facilities

Several other new prospects within BioDistrict New Orleans could be developed by Year 5: A 50,000 to 200,000 SF pharmaceutical packaging and manufacturing facility within the industrially zoned land riverside of Xavier University (part of a 50-plus acre pharma industrial area). Xavier is one of the premier pharmaceutical schools in the country, preparing students for various degrees in the pharmaceutical arena. A generic drug manufacturing center, which would create career opportunities in health care, pharmaceutical manufacturing and sales, pharmaceutical and environmental cleaning products, pharmaceutical market research, and business development. Currently under construction, the 150,000 SF Louisiana Cancer Research Consortium housing dozens of researchers from LSU, Tulane, Xavier, and Ochsner. This facility will potentially make major contributions to new therapies and improved patient care, and thus attract significant new funding from the National Cancer Institute as a designated Cancer Center or a Comprehensive Cancer Center, neither of which Louisiana currently has. The New Orleans BioInnovation Center will provide key facilities for dozens of small start-up companies in the biomedical field and can hold a soft landing center, as previously discussed.
Absorption Projections
Based on our analysis of the prevailing and potential opportunities for the evolution of a research cluster in New Orleans, we estimate that the life science absorption at BioDistrict New Orleans (in addition to the planned LCRC, New Orleans BioInnovation Center and VA/UMC hospitals) could total 175,000 SF by Year 5, another 625,000 SF for Years 5 to 10, and 800,000 SF more for Years 11 to 20, for a likely newdevelopment potential of 1.6 million SF over 20 years. It must be noted that the above estimates are highly susceptible to a number of important variables, including changes in market conditions, political support and public sector investment, strength of the coalition of educational and other partners, preparation of the state workforce for bioscience by Louisiana universities, and support of public agencies through economic incentives and regulatory facilitation. Additional factors include the growth of the biosciences industry elsewhere in the U.S. and in Louisiana, specifically, access to venture capital and angel investors, as well as research breakthroughs by any of the local research centers. None of these variables can be predicted accurately for a 20-year period. Accordingly, the actual development absorption trends at BioDistrict New Orleans could vary significantly from the estimated benchmark guidelines provided above.
for the BioDistrict in Louisiana and those in many other states. Utilizing property tax revenue growth above a base-year level within the District boundaries provides a self-funding mechanism that protects existing property owners or businesses from tax increases. Prior to the economic recession, the State of Louisiana invested heavily in building the infrastructure for bioscience research development. For example, the State approved $102 million for the Louisiana Cancer Research Consortium, now nearing completion in New Orleans, funding for three biotech incubator facilities in Baton Rouge, Shreveport, and New Orleans (NOBIC), and $71 million for improving facilities at the Pennington Research Center in Baton Rouge. Significant funding has also been invested in the District for the new VA and LSU-UMC hospitals, and the expansion of facilities at Xavier, LSU, and Tulane. Despite this impressive record, Louisiana has recently reduced its investment in institutional infrastructure due to the economic recession, while other states have done the opposite. To be competitive in the bioscience space and to develop further the BioDistrict, the State of Louisiana must consider special legislation for significant incentives (~$100 million) to move the project along. As well, opportunities to obtain new money from other sources are available and should be pursued. Louisiana Economic Development is a conduit for incentive programs available to Louisiana businesses and entrepreneurs looking to expand or relocate to Louisiana. It provides excellent access to various federal (Small Business Administration), state, and local incentive programs that commonly take the form of tax credits or tax exemptions based on performance and/or job creation. As well, academic organizations and bioscience researchers can sometimes receive funding from the NIH for capital projects relating to the research that serves a national purpose. Additionally, many entities provide guidance and organizational and financial support to entrepreneurial efforts of growing businesses. The Greater New Orleans Small Business Development Center, supported by the U.S. Small Business Administration (SBA), serves Louisiana businesses through confidential counseling, group training, and business
Funding
Funding mechanisms will need to be established for the support of BioDistrict New Orleans, with many models to follow. Indeed, every state has recognized the economic potential for biotech and life science clusters, and many are providing massive financial incentives to attract high-caliber research organizations and biomedical companies to anchor new life science research parks and bioscience clusters in their jurisdictions. For example, the State of Florida and several local counties have given well over $1 billion in financial incentives to attract such organizations as Scripps Research Institute, Sanford Burnham Institute, Max Planck Institute, Torrey Pines Institute, and the recently announced Jackson Labs facility in Collier County. Tax Increment Funding (TIF) has been used as a financial tool available to economic development organizations, which would be a likely funding option
information resources. Greater New Orleans Inc., a regional partnership of public and private leaders driving the economic resurgence, acts as a catalyst, advocate, and resource broker. This nonpartisan organization is focused on retaining jobs, creating new jobs, developing the workforce, and fostering a probusiness public policy. Other resources are available as well and should be enlisted in the BioDistrict New Orleans project. The New Orleans Chamber of Commerce is focused on creating sustainable economic growth and improving the quality of life of citizens and visitors. The LevyRosenblum Institute of Entrepreneurship at Tulane (LRI) trains entrepreneurs through coursework, community service projects, and internships as well as coordinating joint academic, government, and business initiatives that stimulate private enterprise and regional economic growth. The Institute promotes economic development by helping corporations and family businesses identify and explore business issues through shared learning experiences. The Louisiana Business & Technology Center (LBTC) at the Ourso College of Business at LSU, supports existing small businesses and the development of new businesses.

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Working Paper 4

BioDistrict New Orleans

January 2012, revised

BioDistrict New Orleans | Executive Summary | January 2012 | Page i

The Report at a Glance

BioDistrict New Orleans | Executive Summary | September 2011 | Page ii

Bioscience Industry Overview

Areas of Research Strength

New Orleans Potential for Hosting a Bioscience Cluster

BioDistrict New Orleans | Executive Summary | January 2012 | Page iii

Translating Successful Models to New Orleans

Conclusions and Next Steps

GCR/Dr. Richardson/Heidelberg Economic Impact Study, October 2010

BioDistrict New Orleans | Executive Summary | September 2011 | Page iv

BioDistrict New Orleans | Introduction | January 2012 | Page 1 - 1

A Springboard for Further Discussion

BioDistrict New Orleans | Introduction | January 2012 | Page 1 - 2

Section 2: Bioscience Industry Overview

BioDistrict New Orleans | Bioscience Industry Overview | January 2012 | Page 2 - 1

The Rise of Bioscience Research Clusters

BioDistrict New Orleans | Bioscience Industry Overview | January 2012 | Page 2 - 2

Competing Universities, One Vision

BioDistrict New Orleans | Bioscience Industry Overview | January 2012 | Page 2 - 3

Source: CB Richard Ellis

Benefits of Bioscience Research Clusters to the Region

BioDistrict New Orleans | Bioscience Industry Overview | January 2012 | Page 2 - 4

Exhibit 2.2 Biomedical Employment Opportunities

Exhibit 2.3 Bioscience-Associated Disciplines

Source: CB Richard Ellis and BioDistrict New Orleans

National Economic Trends

BioDistrict New Orleans | Bioscience Industry Overview | January 2012 | Page 2 - 5

Exhibit 2.4 Public BioTech Industry Trends Market Capitalization

Source: BIO.org Guide to Biotechnology 2008

Source: BIO.org Guide to Biotechnology 2008

Venture Capital Trends: National and LA

Geographic Concentrations of U.S. Bioscience

BioDistrict New Orleans | Bioscience Industry Overview | January 2012 | Page 2 - 6

Strength through Collaboration

Source: BIO.org Guide to Biotechnology 2008

BioDistrict New Orleans | Bioscience Industry Overview | January 2012 | Page 2 - 7

NIH Funding Trends: National and Louisiana

Health Care and the Federal Government

Will Health Care Research Remain Significant?

BioDistrict New Orleans | Bioscience Industry Overview | January 2012 | Page 2 - 8

Cities with Significant Health Care Research and Development

Statement in Value of Medicine, a presentation put together by PHRMA.

BioDistrict New Orleans | Bioscience Industry Overview | January 2012 | Page 2 - 9

Considerations for Louisiana

GCR/Richardson/Heidlebert Study, October 2010

BioDistrict New Orleans | Bioscience Industry Overview | January 2012 | Page 2 - 10

Economic Significance to Health Care Research Programs Georgia Research Alliance

City Birmingham, AL Houston, TX Cleveland, OH Chicago, IL Memphis, TN

Source: Studies of institutions with last five years

GCR/Richardson/Heidelberg Economic Study, October 2010

Section 3: New Orleans Potential for Hosting a Bioscience Cluster

New Orleans Potential for Hosting a Bioscience Cluster

Source: The Henry J. Kaiser Family Foundation (kaiseredu.org)

Oil and Gas

Also includes Food Services and Drinking Places (722)

Transpor tation and Warehou sing (4849)

Source: Bureau of Labor Statistics, Quarterly Census of Employment and Wages

GCR/Richardson/Heidelberg Economic Impact Report, October 2010

Bioscience Synergy with Blue Ocean Strategies