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Texas Biotechnology
Texas Biotechnology
Texas Biotechnology



Industry Report
Industry Report
Industry Report



www.TexasWideOpenForBusiness.com

2012

Office of the Governor | Economic Development & Tourism


Contents


Texas at the BIO

International Convention


The State of Texas and the Texas
Healthcare and Bioscience Institute, an
industry advocacy group, work to
promote the advancement of the
state’s biotechnology industry by
exhibiting at the annual Biotechnology
Industry Organization (BIO) Interna-
tional Convention.

A Texas delegation
of government officials, community
representatives, and industry leaders
hosts a booth and meets with biotech
business leaders from around the
world.

Overview…………………………………………………………………

Medical Devices……………………………………………………...

Pharmaceuticals………………………………………………………

Biomedical Research……………………………………………….

Agricultural & Animal Biotech…………………………………

Environmental Tech & Biofuels………..……………………..

1

7

11

15

25

27


B

iotechnology is technology based on biology
which harnesses cellular and molecular
processes to develop products that help
improve the health of humans and the planet. People
have used the biological processes of microorganisms
for more than 6,000 years to make and preserve food
products. Modern biotech provides breakthrough tools
to combat diseases, increase crop yields, and develop
cleaner energy sources.

Because of the breadth of biotechnology activities, the
field actually encompasses many related industries,
from medical, to chemical, to agricultural. Within the
North American Industry Classification System
(NAICS), the federal standard for classifying busi-
nesses, biotechnology spreads across the ten subsec-
tors listed below.

The Biotechnology Industry

As home to over 3,400 biotechnology manufacturing
and R&D firms, Texas is one of the leading biotech
states in the country. More than 88,500 workers are
employed in biotech
-
related sectors in Texas, and
dozens of global biotech companies, such as Novartis,
Abbott, and Medtronic, have major operations in the
state. A concentration of highly trained biotech
workers, multiple top
-
tier research institutions, and a
top
-
ranked business climate all strengthen the state’s
status as a biotechnology leader.

In 2010, approximately one out of every 15 U.S.
biotechnology establishments was in Texas, according
to the U.S. Bureau of Labor Statistics (BLS). Irving
-
based Kimberly Clark, Dallas
-
based Celanese, and
San Antonio
-
based Kinetic Concepts, all on the 2011
Fortune 1000 list, are among the largest biotech
-
related companies headquartered in the state.

The total economic impact of the biotechnology
industry in Texas in 2009 was estimated at $75
billion, according to the Texas Healthcare & Biosci-
ence Institute, an industry association. Additionally,
for every biotechnology job created, another 2.3 jobs
were created elsewhere in the Texas economy.

1

Research and Development in Biotechnology

Research and Development in Physical,

Engineering, and Life Sciences

Pharmaceutical and Medicine Manufacturing

Medical Equipment and Supplies Manufacturing

Electromedical Apparatus Manufacturing

Analytical Laboratory Instruments Manufacturing

Medical and Diagnostic Labs

Testing Laboratories

Pesticides, Fertilizer & Other Agricultural

Chemical Manufacturing

Other Basic Organic Chemical Manufacturing

Biotechnology Subsectors

Biotechnology in Texas
Biotechnology in Texas
Biotechnology in Texas



88,550

Number of biotech

workers in Texas:


Sources: D&B, US FDA, company websites

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

Top Life Sciences Companies in Texas

2

OVERVI EW


$1.27 billion

Amount invested by venture capital (VC) firms from
2006
-
2011 in 152 Texas biotech and medical device
companies. (
PricewaterhouseCoopers
)

Business Incentive Programs

In 2003, the Texas Legislature passed legislation
authorizing the $295 million Texas Enterprise Fund
(TEF), a “deal closing” fund created to attract busi-
nesses and new jobs to Texas. The Legislature
reauthorized the TEF most recently in 2011. As of
April 2012, the TEF had awarded over $98.1 million
to biotechnology
-
related projects. The table on page 4
details these projects and the 11,451 jobs they have
committed to create.

In 2005,

Gov. Rick Perry and the Texas Legislature
passed legislation authorizing the $200 million Texas
Emerging Technology Fund (TETF) to promote and
finance technological innovations across multiple
industries, including biotechnology. The TETF was
reauthorized most recently in 2011. Seven Regional
Centers of Innovation and Commercialization
(RCICs) were created to help administer the TETF
program. To date, $233.58 million from the TETF
have been awarded for biotechnology
-
related projects,
with $127.24 million going to commercialize start
-
up
companies and $106.34 million awarded to universi-
ties or university
-
related consortiums. For biotech
-
related TETF award details, see Appendix 1.

Education & Research Investments

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

T
-
STEM is
part of the Texas High School Project and
aims to more closely align high school curriculums
with admission requirements for competitive colleges.
Under the initiative, 51 T
-
STEM Academies have
been created, serving approximately 15,000 students
State Government
State Government
State Government



Initiatives
Initiatives
Initiatives



annually.
The Legislature most recently reauthorized
the program in 2011.

Stem Cell Regulation

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

3

OVERVI EW


Texas Enterprise Fund

Biotechnology
-
Related Awards

Company

Description

Award
(Millions)

City

Jobs

Baylor College of Medicine

Bovine gene
-
mapping project

$2.0

Houston

N/A

Becton, Dickinson & Co.

Global professional services for

medical devices

$1.56

San Antonio

296

Cardiovascular Systems

Arterial disease medical devices

manufacturing facility

$0.6

Pearland

100

Ferris Manufacturing

Medical products manufacturing

$.45

Fort Worth

100

G
-
Con, LLC

Pharmaceutical manufacturing

$3.0

Bryan

408

Grifols, Inc.

Plasma testing laboratory &


fractionation plant

$0.5

San Marcos

190

Hanger Orthopedic Group

Headquarters relocation of orthotic and
prosthetic patient care services firm

$1.5

Austin

236

Medtronic, Inc.

Diabetes division expansion

$6.0

San Antonio

1,384

Scott & White Memorial Hospital

Cancer Research Institute and other
research initiatives

$7.5

Temple

1,485

Texas Institute for Genomic Medicine
(TIGM) & Lexicon Genetics

Genome mapping and “knockout”
mouse cell line library

$50.0

College Station

& Houston

5,000

The University of Texas Health

Science Center at Houston, M.D.

Anderson, & G.E. Healthcare

Houston

The Center for Advanced Diagnostic
Imaging

$25.0

2,252



TOTAL

11,451

$98.11

OVERVI EW

Texas’ $3 Billion Cancer Initiative

Texas leads the nation in its commitment to the
war on cancer. In June 2007, Gov. Rick Perry signed
a law creating the
Cancer Prevention and Research
Institute of Texas
(CPRIT), which dedicated $3
billion in state bond
money to cancer
research over ten
years. CPRIT also
received an appro-
priation of $450
million from the
Texas Legislature
for fiscal years 2010
-
2011.

Since 2010, CPRIT has funded 387 awards worth
over $670 million for cancer research, commerciali-
zation, and prevention. Together with matching
funds obligated by grant recipients, more than
$900 million has been invested in Texas' endeavor
to change the face of cancer. CPRIT award recipi-
ents include Texas academic institutions, non
-
profit organizations, and private companies. CPRIT
has become one of the nation’s largest cancer
grant providers, second only to the National
Institutes of Health (NIH).

In March 2012, CPRIT
awarded $20 million for a
Houston
-
area pre
-
commercialization center to
incubate promising oncology
-
focused technolo-
gies, as well as three “Scholar in Cancer Research”
awards to attract top investigators in oncology
research to Texas.

4


Texas is home to

over
3,400 firms involved in bio-
technology
-
related manufacturing, scientific research,
and laboratory analysis. These firms
employ more
than 88,500 workers at an average annual salary of
nearly $74,000.
The table on page 6 provides a snap-
shot of the Texas biotechnology industry as of third
quarter (Q3) 2011. The state has seen overall increases
in the number of biotechnology firms and average
annual wages as well as a slight decrease in employ-
ment since a year prior, in Q3 2010.

In 2010, Texas ranked No. 2 among all U.S. states for
the number of life and physical scientists employed,
with 48,850, according to the National Science Foun-
dation (NSF). Additionally, in 2008, Texas ranked No.
3 nationally for employed science, engineering, and
health
doctorate holders, with 39,900, according to the
NSF.

Texas Biotech Workforce
Texas Biotech Workforce
Texas Biotech Workforce



Texas Biotech
-
Related Employment 5
-
Year Trends

Employment

Source: Texas Workforce Commission

Private sector employment only. Data from third quarter of each year.

5

OVERVI EW


Texas Biotech Sectors

by Total Workers

Source: Texas Workforce Commission

Source: Texas Workforce Commission

Biotechnology Employment in Texas

Third Quarter 2011

Sector
(Industry Code)

Employees

Firms

Average

Annual Wage

Medical and Diagnostic Labs
(6215)

18,301

802

$56,628

R&D in Physical, Engineering, and Life Sciences
(541712)

16,971

542

$88,920

Testing Laboratories
(54138)

13,903

745

$63,388

Medical Equipment and Supplies Manufacturing
(3391)

11,556

693

$50,492

Pharmaceutical and Medicine Manufacturing
(3254)

9,586

124

$84,032

Other Basic Organic Chemical Manufacturing
(32519)

7,299

84

$115,128

R&D in Biotechnology
(541711)

4,381

310

$88,452

Pesticides, Fertilizer, and Other Agricultural Chemical Mfg.
(3253)

2,906

79

$76,700

Electromedical Apparatus Manufacturing
(334510)

2,064

54

$78,208

Analytical Laboratory Instruments Manufacturing
(334516)

1,583

32

$75,140

TOTALS

88,550

3,465

$73,934

In Q3 2011, 36%
of Texas’ biotech
-
related workers
were engaged in medical and testing labs (NAICS
6215 and 54138), 24% in scientific R&D (NAICS
541711 and 541712), 17% in devices and equipment
manufacturing (NAICS 334510, 334516, and 3391),
12% in agricultural and other basic organic chemical
manufacturing (NAICS 32519 and 3253), and 11% in
pharmaceutical and medical manufacturing (NAICS
3254).

From Q3 2007 to Q3 2011, the most recent five years
of available data, biotechnology employment in Texas
increased by 1.3% (see graph on previous page). The
medical and diagnostic clinics segment saw continu-
ous employment increases each year during that peri-
od, while testing labs and electromedical apparatus
manufacturing
experienced the greatest overall em-
ployment increases, each rising more than 13% be-
tween 2007 and 2011.
Despite the impacts of the na-
tional economic downturn, the biotech sectors as a
whole saw an overall employment upturn in Texas in
2011.

6

OVERVI EW


T

exas has a major medical device industry, and
some of the biggest players in the business are
here. More than one dozen Fortune 500
medical device giants have manufacturing or major
corporate operations in the state, including Abbott
Laboratories, Johnson & Johnson, Medtronic, GE,
Stryker, Cardinal Health, St. Jude Medical, Becton
Dickinson, Thermo Fisher Scientific, and Agilent
Technologies.

These companies and many others have created a
large medical device workforce in the state. Approxi-
mately 800 firms employ more than 15,200 workers in
this sector, and as a result, Texas is one of the top 10
states in the nation for number of medical device
workers. In the highly advanced subsector of electro-
medical instrument manufacturing, employment in
Texas increased nearly 11% from 2005
-
2011, despite
the intervening recession.

A wide range of medical products are developed and
produced in Texas, from surgical sutures and bandag-
es to molecular biology kits and medication delivery
systems. While a broad spectrum of medical speciali-
zations are served by Texas device companies, the
state has developed several unique clusters. Among
these are ophthalmology, orthopedics, cardiology,
diagnostics, and wound care. These clusters are
explored on pages 9
-
10
.

In 2010, the total value of Texas medical equipment
shipments exceeded $4.3 billion, with manufacturers
making total capital investments of over $100.3
million, according to the U.S. Census Bureau. Addi-
tionally, international exports of medical devices from
Texas increased 10% in 2011 to $2.2 billion.

Medical Devices
Medical Devices
Medical Devices



Wound Care Supply Firm Relocates
from Illinois to Texas

In December 2011, wound care company
Ferris
Manufacturing
announced plans to relocate its
corporate headquarters (HQ) from a Chicago
suburb to Fort Worth, Texas. The company
received a $450,000 Texas Enterprise Fund award
from the state to incentivize its new HQ, medical
product manufacturing facility, and distribution
center. The project is expected
to generate $5.5 million in
capital investment and 100 new
jobs in Texas.

Privately owned Ferris manufac-
tures and distributes multiple
lines of Polymem

advanced
wound care dressings.

Emerging Technology and Venture Capital

Since 2005, the Texas Emerging Technology Fund
(TETF) has invested over $70 million in medical
device
-
related startups. Funded companies have
developed a wide range of technologies, including
implants, imaging equipment, and diagnostic tools.
See Appendix 1 for a complete listing.

Over the six
-
year period 2006
-
2011, venture capital
(VC) firms invested approximately $568 million in 96
Texas medical device and equipment companies,
according to consulting firm PricewaterhouseCoopers.
Fifteen of those investment deals occurred in 2011
alone, with a total of almost $60 million invested in
Texas medical device companies that year.

7


MEDI CAL DEVI CES

The map below identifies the state’s Workforce

Development regions with above
-
average specializa-
tions in medical equipment manufacturing.
The high-
lighted regions are not the only areas in Texas where
workers in this sector can be found, but rather repre-
sent areas with the greatest concentrations

relative to the size of the local labor force.
This analysis
compares the portion of each Texas region’s work-
force employed in the sector to the portion of the en-
tire U.S. workforce employed in that sector. The
comparison provides a ratio that measures how inten-
sively a certain region is specialized in this industry,
and ranks it as “moderate,” “above average,” or
“high.”

Dallas County

Ophthalmic Goods Mfg.

East Texas

Surgical Instrument Mfg.

North Central Region

Medical Equipment Mfg.

Capital Region

Surgical Appliance Mfg.

Medical Devices &
Supplies

Manufacturing

Concho Valley

Medical Supplies Mfg.

Alamo Region

Medical Supplies Mfg.

Moderate

Above Average

High

Concentration

Data: Texas Workforce Commission, Q4 2010


Merit Medical Locates R&D and Manufacturing Facility in Pearland

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

Workforce Concentrations
Workforce Concentrations
Workforce Concentrations



Heart of Texas

Medical Supplies Mfg.

8


MEDI CAL DEVI CES

Texas Medical Device Clusters
Texas Medical Device Clusters
Texas Medical Device Clusters



Orthopedics

Cardiology

Key Products:
Spinal, extremity, bone/tissue im-
plants

Key Companies:

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

Key Products:
Catheters, surgical instruments,
prosthetic heart valves

Key Companies:

The Houston metro area is a hub of
cardiology R&D and startups and is the location of
established cardiovascular device firms like
Merit
Medical

and
Cardiovascular Systems
, both located
in the suburb of Pearland. In the Dallas/Fort Worth
region, Allen
-
based
Atrion Corp.
and
Plano
-
based
Argon Medical Devices
manufacture instruments for cardiovas-
cular surgery. In Austin, prosthetic heart
-
valve manufacturer
On
-
X Life Technolo-
gies

is part of that metro area’s growing
cardiology sector.


Diagnostics

Key Products:
Cell cultures, laboratory equipment,
clinical chemicals

Key Companies:

Austin is home to a cluster of
cutting edge diagnostics firms, including
Luminex
,
Agilent Technologies
,
Asuragen
, and
Thermo Fisher
Scientific
, while the nearby San Antonio’s diagnos-
tics cluster is anchored by
Becton Dickinson
’s
corporate service center and
Fujirebio Diagnostics

facility in Seguin. The Houston and
Dallas/Fort Worth regions are also
home to major diagnostic product
makers, including Fortune 500 giants
Thermo Fisher Scientific
in Houston
and
Abbott Laboratories

in Irving.


Wound Care

Key Products:
Electromedical wound equipment,
mattress systems, skin dressings, bandages

Key Companies:

Dallas/Fort Worth’s concentration
of wound care firms is lead by
Healthpoint
Biotherapeutics
, a maker of treatments for acute,
chronic, and burn
-
related wounds. Medical supply
firms in the region include wound
-
dressing makers
Brady Corp.
,
Winfield
Laboratories
, and new arrival
Ferris
Manufacturing
. San Antonio is also
home to an established wound care
cluster, which includes Fortune 1000
firm
KCI
, and wound and burn R&D
organizations
Rochal Industries
and the
National Trauma Institute

(NTI).

9


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

Major Companies
Major Companies
Major Companies



Top 10 Medical Device & Equipment Companies with Texas Operations

By Parent Company Global Revenues

Company Name

Primary

Location

Specialization

Sales

(Millions)

Ethicon (Johnson & Johnson)

San Angelo

Surgical supplies

$65,030

Alcon Research (Novartis)

Houston

Ophthalmic products

$59,375

Abbott Laboratories

Irving

Diagnostics

$38,850

Flextronics

Plano

Contract design services

$28,679

Medtronic

San Antonio

Diabetes mgmt.

$15,933

Thermo Fisher Scientific

Austin

Diagnostics

$11,725

Stryker

Flower Mound

Operating room equipment

$8,307

Becton Dickinson & Co.

San Antonio

Diagnostics, drug delivery

$7,828

Agilent Technologies

Cedar Creek (Austin)

Diagnostics

$6,615

St. Jude Medical

Plano

Neurology

$5,611

MEDI CAL DEVI CES



Texas Focuses on Eye Care Products Manufacturing

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

Fort Worth & Houston


Lens care

products and surgical disposables

Bedford


Contact lenses

Dallas


Contact lenses and lens
coatings

Garland


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

Rosenberg


Optical tools, surgical
supplies, and contact lens accessories

Lewisville


Eyeglass lenses

Allen


Contact lens

disinfection cases, and ophthal-
mic balloon catheters

Waco


Lens

care products

10


I

n addition to the many global pharma companies
that have set up operations in Texas, such as
Sanofi, Colgate, Reckitt Benckiser, and Allergan,
Texas has also fostered homegrown pharmaceutical
successes like Fort Worth’s ophthalmic leader Alcon
and Healthpoint Biotherapeutics. These companies
and many others have created a large pharmaceutical
manufacturing workforce in the state. Approximately
125 firms employ more than 9,500 workers in this
sector, and as a result, Texas is one of the top 10 states
in the nation for number of pharmaceutical
manufacturing workers.

In 2010, the total value of Texas pharmaceutical
shipments exceeded $4.7 billion, with manufacturers
making total capital investments of nearly $100
million, according to the U.S. Census Bureau.

Texas is also a leading pharmaceutical research state.
In April 2012, Texas ranked second nationally for
number of clinical trials, with more than14,000 studies
underway, according to the National Institutes of
Health (see map below). In addition, many of the
world’s leading clinical trial and contract research
firms have operations in the state, including PPD,
Covance, Quintiles, Chiltern, Premier Research, and
INC Research


all of which have locations in Austin.

Since 2005, the Texas Emerging Technology Fund
(TETF) has invested over $130 million in
pharmaceutical
-
related startups. Funded companies
have developed a wide range of technologies,
including treatments for cancer, liver disease, and
obesity. See Appendix 1 for a complete listing.

Source: NIH ClinicalTrials.gov

Clinical Trials by State, April 2012

Texas ranks

No. 2

Pharmaceuticals
Pharmaceuticals
Pharmaceuticals



11


Pharmaceutical

& Medicine

Manufacturing

Capital Region

Biological Product Mfg.

Consumable Pharmaceuticals Mfg
.

Tarrant County

Consumable Pharmaceuticals Mfg
.

Alamo Region

Consumable Pharmaceuticals Mfg.

Moderate

Above Average

High

Concentration

Data: Texas Workforce Commission, Q4 2010

In September 2011,
Alcon Laboratories
, a subsidiary
of Switzerland
-
based
Novartis
, announced an
expansion to its research operations in Fort Worth,
Texas. Alcon expects to invest approximately $11
million and add 750 jobs. Alcon, which is based in
Fort Worth, develops, manufacturers and markets
surgical equipment and devices, pharmaceuticals,
and vision care products.

Novartis, a global pharmaceutical giant, purchased
Alcon in 2010 to expand its ophthalmic product
offerings. At the time of the purchase, Alcon was
the world’s largest eye care products company.


Novartis Subsidiary Expands in Fort Worth


The map below identifies the state’s Workforce

Development regions with above
-
average specializa-
tions in pharmaceutical manufacturing.
The highlight-
ed regions are not the only areas in Texas where
workers in this sector can be found, but rather repre-
sent areas with the greatest concentrations

relative to the size of the local labor force. This anal-
y
s
i
s

c
o
m
p
a
r
e
s

t
h
e

p
o
r
t
i
o
n

o
f

e
a
c
h

T
e
x
a
s

r
e
g
i
o
n

s

workforce employed in the sector to the portion of the
entire U.S. workforce employed in that sector. The
comparison provides a ratio that measures how inten-
sively a certain region is specialized in this industry,
and ranks it as “moderate,” “above average,” or
“high.”

PHARMACEUTI CALS

Workforce Concentrations
Workforce Concentrations
Workforce Concentrations



12


Company Name

Primary

Location

Specialization

Sales

(Millions)

Alcon (Novartis)

Fort Worth

Ophthalmics

$59,380

Genzyme (Sanofi)

San Antonio

Oncology

$47,090

Colgate Oral Pharmaceuticals

Dallas

Dental care

$16,730

Reckitt Benckiser

Fort Worth

Respiratory care

$15,030

Allergan

Waco

Ophthalmics

$5,420

Lonza

Houston

Viral vectors

$3,000

PPD

Austin

Pharmaceutical R&D

$1,470

Galderma Laboratories

Fort Worth

Dermatology

$1,400

Virbac

Fort Worth

Veterinary care

$759

ALK
-
Abello

Round Rock

Allergies

$424

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

Top 10 Pharmaceutical Companies with Operations in Texas

by Parent Company Global Revenues




Roche Forms Cancer Partnership

with the State of Texas


In 2011, Swiss pharmaceuticals giant
Roche
announced a strategic partnership with the state
-
funded
Cancer Prevention and Research Insti-
of Texas
(CPRIT) to accelerate the development
of promising oncology
-
related cancer research
projects. Under the partnership, CPRIT and Roche
will collaborate to identify ventures and technol-
o
g
i
e
s

f
r
o
m

a
c
a
d
e
m
i
a

a
n
d

e
a
r
l
y

s
t
a
g
e

p
r
o
j
e
c
t
s

i
n

Texas that have the poten-
tial to strengthen Roche’s
R&D portfolio. Both will
provide financial support to
the new ventures.

Switzerland
-
based Roche is one of the world’s
largest pharmaceuticals and diagnostics compa-
nies with 2011 sales of $47.4 billion.





In 2011, specialty pharmaceuticals giant
Allergan
announced the second major expansion to its
Waco, Texas, manufacturing facility in nine years.
The project is expected to bring $10 million in
investment and
100 new jobs to
the Waco region.

Allergan first located in Waco in 1989 and began
producing eye care products at its manufacturing
plant.
The facility’s 2003 expansion consolidated
the company’s North American manufacturing
operations, and the Waco plant’s product line
now includes skin care products for acne and
psoriasis.

California
-
based Allergan is a Fortune 500
company with a diverse array of pharmaceutical,
biological, and medical device products.

Major Companies
Major Companies
Major Companies



PHARMACEUTI CALS

Allergan Expands in Waco

13


PHARMACEUTI CALS

MirVana miRNA
isolation kit

Life Technologies’ Austin Plant Named One of Ten Best in North America

In 2011,
IndustryWeek
magazine named
Life
Technologies


plant in Austin, Texas,
one of the Top
Ten Plants in North America, making it the first
biotechnology facility to win the prestigious award.
IndustryWeek

noted the plant's 94% reduction in
production documentation errors, 41%
improvement in gross margins since 2007, $4.2
million in productivity improvements in 2010, and
the successful 2009 transfer of the company’s
Molecular Biology product line from another site as
reasons for the honor.

Life Technologies is a Fortune 1000 biotechnology
company based in California. The company’s Austin
facility, which employs approximately 200 workers,
produces laboratory equipment and biological
products under the Ambion, Applied Biosystems,
and Invitrogen brand names.

Texas
-
Made Pharmaceutical Products


A wide variety of consumable pharmaceuticals and
pharmaceutical products are manufactured in
Texas. Below are a few examples of leading prod-
ucts, ranging from Alcon and Allergan’s eye care
products to Reckitt Benckiser’s Mucinex, one of the
world’s leading over
-
the
-
counter expectorants.

Mucinex expectorant

Refresh eye care products

Duraphat fluoride varnish

ProClude desensitizing paste

Allclenz and Curasol
wound care products

Opti
-
Free

eye care

Falcon glaucoma
treatments

14


R

esearch and development (R&D) is the
lifeblood of the biotechnology industry. In
Texas, the R&D pipeline is supplied in part by
the state’s vast network of public universities and
health
-
related institutions, which invest heavily in
R&D and intellectual property generation. In fiscal
year 2010 alone, Texas public institutions of higher
education expended over $2.5 billion on medical and
life sciences research, accounting for 61% of all
higher education R&D expenditures in the state.

Public investment in biotechnology research is
complemented by the state’s substantial cluster of
private sector R&D activity. Texas is home to 850
private scientific R&D firms that employ more than
21,300 workers. Many of the largest private
biotechnology R&D firms in the world have
operations in Texas, including PPD, Covance,
Quintiles, Chiltern, Premier Research, and INC
Research. These firms have helped make the state a
hub of clinical trials and other breakthrough research.

In the Austin and San Antonio regions, the percentage
of the workforce employed in private
-
sector scientific
R&D is more than 30% above the national average,
while in the Houston area, the percentage of the
workforce employed by specialty hospitals is more
than four times the national average.


In addition to R&D facilities, Texas has more than
2,000 medical and testing laboratories, which include
blood, pathology, imaging, diagnostics, and device
testing facilities. These laboratories employ more
than 32,200 in Texas. Major laboratory firms in the
state include Lab Corp’s Esoterix subsidiary and
Spanish biological product firm Grifols.

Texas is also a leader in cancer research. Major
institutions in this field include MD Anderson
Cancer Center in Houston, Scott & White Healthcare
Cancer Research Institute in Temple, and Texas
Oncology and Mary Crowley Cancer Research
Centers, both based in Dallas. Additionally,
the
Cancer Prevention and Research Institute of Texas

Among U.S. states with institutions granting
biotech
-
related doctorates, Texas achieved the
following rankings for one
-
year degree totals
(National Science Foundation 2009):

#1
for
Agricultural Sciences/Natural

Resources
doctorates

(85 degrees conferred)

#2
for
Health Sciences
doctorates

(142 degrees conferred)

#3
for
Life Sciences
doctorates

(816 degrees conferred)

#3
for
Biological/Biomedical Sciences
doctorates

(589 degrees conferred)

Texas Ranks in Top Tier for

Biotech Doctorates

Biomedical Research
Biomedical Research
Biomedical Research



(CPRIT), a state
-
funded initiative, has been
instrumental in expanding Texas cancer research,
particularly in the areas of prevention and cures. See
page 4 for more CPRIT details.

15


Texas Universities and Innovation

In the 2010
-
11 school year, Texas conferred more
than 6,700 degrees from heath
-
related institutions, a
9% increase over the previous year, according the
Texas Higher Education Coordinating Board
(THECB).

In 2010, the University of Texas (UT) ranked No. 2
nationally for the number of patents earned by a
university, up from No. 5 in 2009, according to The
Patent Board, an independent patent research firm. UT
saw a 22% increase over the
previous year, jumping
ahead of Stanford Universi-
ty and the California
Institute of Technology
(Cal Tech).

From 2000
-
2010, 1,329
pharmaceutical
-
related util
-
ity patents were issued in
Texas for Class 424: Drug,
Bio
-
Affecting and Body
Treating Compositions,
according to the U.S. Patent
and Trademark Office. This
pharmaceutical patent class
is one of Texas’ strongest
areas of patent activity.

OVERVIEW

Biomedical R&D at Texas Universities

by 2010 Expenditures

Institution

Total R&D
(Millions)

University of Texas (UT)

M.D. Anderson Cancer

$547

Baylor College of Medicine
-
Houston

$428.9

UT Southwestern Medical Center at Dallas

$395.3

UT Health Science Center at Houston
(UTHealth)

$240.7

UT Health Science Center at San Antonio

$185.2

UT Medical Branch (UTMB) at Galveston

$156.8

Texas A&M Health Science Center (HSC)

$78.1

Texas Tech University HSC

$50.8

University of North Texas HSC

$39.8

UT Health Center at Tyler

$14.3

TOTAL

$2,137

Source: Texas Higher Education Coordinating Board

BI OMEDI CAL RESEARCH

Texas Places Five Research Medical
Schools in Top 100

In 2012,
U.S. News & World Report
ranked the
nation’s top 100 research medical schools.
Texas achieved the following rankings:

#20
UT Southwestern Medical Center at Dallas

#21
Baylor College of Medicine

#55
UT Health Science Center at Houston

#67
UT Health Science Center at San Antonio

#83

Texas A&M Health Science Center

Source: Texas Higher Education Coordinating Board (THECB)

16


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

Texas is home to top
-
ranked biotechnology and
medical research institutions, federally designated
centers, innovative research collaborations, and some
of the world’s largest medical complexes. A number of
the most ambitious Texas medical center expansions
are a result of the U.S. Department of Defense’s (DoD)
Due to space limitations, not all institutions are included.

BI OMEDI CAL RESEARCH

Research Centers
Research Centers
Research Centers



Texas Medical Schools & Selected Medical Research Centers

17


BI OMEDI CAL RESEARCH

The
Texas Medical Center (TMC)
in Houston

is the
world’s largest medical center with over 71,500
students and 93,500 employees, housed on over
1,000 acres.


The TMC annually conducts $1.2 billion in research
and has a yearly economic impact of $14 billion on
the region. Its 50 member institutions, comprised of
hospitals, schools, and other specialty institutions,
include
Baylor College of Medicine
,
UT M.D.

Anderson Cancer Center
,
UT Health Science Cen-
ter
,
the University of Houston
,
Rice University
,
Texas A&M University Health Science Center
,
The
Methodist Hospital
, and
Texas Children’s Hospital
.

The TMC plans $7.1 billion in capital investment
through 2014, including the $1
billion
Baylor Clinic and Hospi-
tal.
TMC member
Texas Chil-
dren’s Hospital
recently com-
pleted its $1.5 billion expansion,
begun in 2010, which included
the Jan and Dan Duncan Neuro-
logical Research Institute.

In January 2012, the

Shriners
Hospital for Children
-
Galveston

became the TMC’s 50th mem-
ber institution.

World’s Largest Medical Center Keeps Growing in Houston

Texas Medical

Center Complex

Downtown Houston


UTHealth Ranks as Nation’s 7th

Largest Medical School

Located in Houston’s TMC, the
University of Texas
Health Science Center at Houston (UTHealth
)

is
the largest of the state’s nine medical schools and
focuses primarily on graduate education and re-
search.

Has over 10,000 faculty,
staff, students, and residents, and
educates more healthcare profes-
sionals than any other Texas
institution

Conferred more than 1,270 degrees and spent
almost $261.2 million for research in FY 2011



BCM Top Ranked for R&D

The
Baylor College of Medicine
(BCM) in Houston
, located in
Houston’s TMC,

is the state’s
only private medical school.

Has over 11,600 faculty,
staff, students, and residents, with research
support of $400 million

Ranked as one the nation’s top 25 medical
schools for research by
U.S. News & World
Report

in 2011

Ranked 2nd nationally in federal funding for
R&D in the biological sciences at universities
by the National Science Foundation


18

HOUSTON/GULF COAST
HOUSTON/GULF COAST
HOUSTON/GULF COAST




BI OMEDI CAL RESEARCH


UTMB Focuses on Infectious Disease Research


The University of Texas Medical Branch (UTMB) at Galveston was estab-
lished in 1891, making it the oldest of UT Systems’ four medical schools.
UTMB has developed a strong program in infectious disease research

with several facilities devoted to that field.



Has over 13,600 faculty, staff, and students,
with total research expenditures of $156.8
million in FY 2010

Became a member of Houston’s Texas Medical
Center in 2010

Serves as one of the nation’s 11 federal
Regional Centers of Excellence for Biodefense
and Emerging Infectious Diseases Research
(CBEID), for the Western Region. The

CBEID at
UTMB Galveston
was established by the
National Institutes of Health (NIH) in 2002.
The CBEID serves as the lead institution for
participating academic institutions in the
Western Region, a five
-
state area that includes
Louisiana, Arkansas, New Mexico, and
Oklahoma.

One of the nation’s two National
Biocontainment Laboratories is located at
UTMB. The
Galveston National Laboratory
(GNL)
was established with grants awarded by
the NIH’s
National Institute of Allergy and
Infectious Diseases (NIAID). The GNL conducts
research to develop therapies, vaccines, and
diagnostic tests for naturally occurring emerging
diseases such as SARS, West Nile encephalitis,
and avian flu, as well as for microbes that might
be employed by terrorists.

In 2003, the UTMB CBEID was awarded a $110
million NIH grant to establish the
Robert E.
Shope Laboratory
, a Biosafety Level 4 facility.
The lab opened in 2004 and is the first full
-
sized
facility of its kind in the nation to be located on a
university campus.

19

M.D. Anderson Announces New

Cancer Research Center

In November 2011,
Gov. Rick Perry announced the
creation of the
Institute for Applied Cancer
Science (IACS)

at
The University of Texas (UT)
M.D. Anderson Cancer Center
and the recruitment
of 25 scientists from Harvard University to M.D.
Anderson.

The IACS
will focus on research, drug discovery,
and translational
medicine, integrating
academic and pharma-
ceutical science to
develop innovative
medicines and thera-
pies.
UT is committing
$75 million over five years to help run the new
institute.


The Methodist Hospital System

Expands Research Arm

Since 2004, the
Methodist Hospital Research
Institute

(MHRI) has overseen interdisciplinary
scientific activity for The
Methodist Hospital System.
The MHRI is a member of
the Texas Medical Center,
with $100 million in annual
research expenditures and
over 1,500 researchers. The
institute experienced the doubling of its NIH
research funding from 2011 to 2012. In May 2011,
MHRI announced the recruitment of renowned
cancer geneticists Dr. Nancy Jenkins and Dr. Neal
Copeland, with the help of funding from the state
cancer initiative CPRIT. In October 2010, the
Institute opened a new 440,000 sq. ft. facility
solely dedicated to research.


BI OMEDI CAL RESEARCH

NORTH TEXAS
NORTH TEXAS
NORTH TEXAS




University of North Texas Leads Osteopathic Research

The
Texas College of Osteopathic Medicine (TCOM)
is located at the University of North Texas HSC in
Fort Worth. It is the state’s only osteopathic medical
school.

Has over 1,385 students and faculty members

Approximately 65% of TCOM's graduates
practice primary care medicine, helping reduce
the state and nationwide shortage

Ranked as one of the nation's top 50 medical
schools for primary
care by
U.S. News &
World Report

TCOM’s Osteopathic
Research Center is a
national research program that studies the
clinical effectiveness of osteopathic manipula-
tive medicine


Southwestern Medical District Expansions

The
Southwestern Medical District (SMD)
in
Dallas is a 387
-
acre medical complex that is home
to world
-
class biomedical
research organizations employ-
ing over 26,800. Member
institutions include University
Hospital
-
St.Paul, University
Hospital
-
Zale Lipshy, Children’s
Medical Center Dallas, and
Parkland Health & Hospital
System. Planned SMD expan-
sions include new Parkland
hospital facilities, a new $800
million state
-
of
-
the
-
art
Univer-
sity Hospital,

and a
Children’s
Medical Research Institute
.

One of the world’s top academ-
ic medical centers,
the Universi-
ty of Texas Southwestern
Medical Center (UTSWMC)
,

is
also located at SMD. UTSWMC alone employs
about 11,400 and trains nearly 4,600 students
annually.

Ranked No. 20 for
best U.S. research
medical schools in 2012
and No. 6
in six specialty
-
care areas by
U.S. News
& World Report

Its Harold C. Simmons Cancer Center is a Nation-
al Cancer Institute designated cancer center, a
distinction held by only the top
-
tier cancer
centers nationwide

UTSWMC has four actively working Nobel
Laureates, more than any other U.S. medical
center



20


BI OMEDI CAL RESEARCH

SOUTH TEXAS
SOUTH TEXAS
SOUTH TEXAS



UTHSC at San Antonio Spurs Local
Biotech Industry

The
University of Texas Health Science Center
(UTHSC) at San Antonio
is one of the UT Sys-
tem’s four medical
schools.

Has over 9,800
employees and
students
in four cities,
including San Antonio,
Harlingen, Edinburg, and Laredo

Managed $228 million in annual research
related activities in FY 2010

Opened the new $150 million
South Texas
Research Facility
in October 2011. The
188,000 sq. ft. building will house up to 20
lab teams, working in areas ranging from
regenerative medicine to cancer research.

Military Medical System Grows in
San Antonio

In September 2011, U.S. Air Force and Army
officials activated the
San Antonio Military
Health System (SAMHS)
, which provides
oversight for all
military treatment
facilities and the
healthcare needs of
approximately
230,000 Department
of Defense (DoD)
beneficiaries in the
San Antonio area.

SAMHS healthcare services are provided by the
San Antonio Military Medical Center (
SAMMC
),
a Level 1 trauma center and the DoD’s largest
inpatient hospital; Wilford Hall Ambulatory
Surgical Center (WHASC), which is the DoD’s
largest outpatient ambulatory surgery center;
19 primary care clinics; and over 100 specialty
services.

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

Since 1947, San Antonio’s
Southwest Research
Institute (SwRI)
has provided contract R&D
services to industrial and government clients
across industries, which today include biotechnol-
ogy and medicine. SwRI’s headquarters facility
employs over 3,000 workers and occupies
approximately two million square feet of office
and laboratory space across 1,200 acres. SwRI’s
2011
revenues exceeded $580 million and, in
2011, the organization dedicated $6.1 million to
fund its internal research programs separate from
contract client projects.

The
Texas Biomedical Research Institute
, SwRI’s
sister institution located on an adjacent 200 acre
campus, is one of the world’s leading independ-
ent biomedical research institutions. Texas
Biomed has a nearly $55 million annual budget
and employs over 400 people. The institute is
home to the Southwest National Primate Research
Center and the
world’s largest colony
of baboons for
biomedical research;
the nation’s only
privately owned
biosafety level 4
laboratory; and the
AT&T Genomics
Computing Center,
the world's largest
computer cluster
devoted to human
genetic and genomic
research.

21


BI OMEDI CAL RESEARCH

CENTRAL TEXAS
CENTRAL TEXAS
CENTRAL TEXAS




Texas A&M’s National Center for Therapeutics Manufacturing Opens

Spring 2012 is the inaugural
semester for
Texas A&M Universi-
ty’s National Center for Therapeu-
tics Manufacturing (NCTM)
, a first
-
in
-
class biopharmaceutical GMP (Good
Manufacturing Practice) manufacturing
facility and interactive academic training
center. The NCTM was built in collabora-
tion with UT’s M.D. Anderson Cancer
Center (MDACC) as part of a major joint
research initiative on cancer announced in
May 2010 between NCTM and MDACC.

A $50 million Texas Emerging Technology
Fund award in 2009 helped establish the
NCTM.

NCTM facility in College Station, Texas


UT Austin Biotech Institutions

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

T1
-
3D was created to coordinate and
commercialize the university’s translational
therapeutic and
diagnostic research
efforts. The resulting
products are devel-
oped by partnerships
between UT Austin
medical researchers
and private companies
.

Established in 1993, the ICMB is a multidiscipli-
nary center of excellence for biotechnology
whose goal is to promote cell
and molecular biology research
and education. The Institute
conducts fundamental research
into the basic processes of living
cells and tissues, which is crucial
to future advances in medicine
and biotechnology.

The IRC, previously known as the Neurosci-
ence Imaging Center, received a $3.5
million TETF award in 2007 to establish a
center to study cognitive brain functions
using MRI technology. The new facility’s
grand opening was in May 2012.

22


BI OMEDI CAL RESEARCH




Biotech Collaborative in Bryan
-
College Station

In June 2011, th
e
Texas A&M University System
(TAMU)
, in conjunction with
The Research Valley
Partnership,

unveiled the
One Health PLUS™
Biocorridor,
a master planned center for education,
research, development, commercialization, and the
production of
pharmaceuti-
cals and vac-
cines in Bryan
-
College Station,
Texas.

Anchored by TAMU, one of the nation’s top research
institutions, the Biocorridor

intends to become the

nation’s premier destination for the discovery of
new therapies, pre
-
clinical trials, and manufactur-
ing

all in one location
.
The Biocorridor’s interdis-
ciplinary collaborations and research will encom-
pass humans, animals, and plants.

Participating Biocorridor research facilities include
the TAMU Health Science Center, the TAMU Col-
lege of Veterinary Medicine and Biomedical Scienc-
es (CVM), TAMU AgriLife, the Texas Engineering
Extension Service, the TAMU Institute for Preclini-
cal Studies (TIPS), TAMU Institute for Genomic
Medicine (TIGM), and TAMU’s National Center for
Therapeutics Manufacturing (NCTM).


Over the past ten years,
the city of

Temple has built a
unique health and bioscience industry cluster around
local academic, medical, and research facilities.

In 2003, the
Temple Health and Bioscience
District

(THBD) was created through unique
state legislation and the approval of local
citizens.

The THBD’s
Cancer Research Institute
(CRI)
opened in 2005, as part of a joint development
agreement with Scott & White (S&W). Led by
renowned cancer researcher Dr. Arthur Frankel,
the CRI has attracted other leading researchers.

The
Texas Bioscience Institute
(TBI) opened in
2006 to prepare students to
enter the bioscience and
medical industries. The
Institute was created with
funding from the U. S. Depart-
ment of Labor, the city of
Temple, and S&W.

In 2007, the expansion of the
TAMU HSC College
of Medicine

brought a new campus and four
-
year medical school to Temple and
Scott &
White Memorial Hospital (SWMH).

In December 2007, the State of Texas an-
nounced a $7.5 million TEF grant to SWMH to
increase critical research initiatives and generate
nearly 1,500 jobs
during the next
decade.

In February
2009, the State
of Texas an-
nounced a $5
million
TETF
grant to recruit leading scientist
Dr.
Darwin Prockop
as the founding director of
TAMU HSC College of Medicine’s Institute for
Regenerative Medicine
at
S&W
. The Institute
uses adult stem cells to develop new therapies.

In February 2010, the
Temple Bioscience
Accelerator
was created to develop new
bioscience companies in the region.

Beginning in summer 2012, the THBD will
sponsor the
THBD Scholars Research Program,
with $4,000 awards going to five undergraduate
students
for positions in the SWMH, the TAMU
HSC College of Medicine
-

Temple Campus, and
the Central Texas Veterans Healthcare System.

Bioscience Research Complex in Temple


23


BI OMEDI CAL RESEARCH

WEST TEXAS
WEST TEXAS
WEST TEXAS



EAST TEXAS
EAST TEXAS
EAST TEXAS




World
-
Class Pulmonary Research in East Texas

T
he
University of Texas Health Science Center at
Tyler (UTHSCT)
is a world
-
renowned center of
pulmonary and infectious disease treatment and
research.

Employs over 800 people, with
more than 20
outpatient clinics, a hospital, and an emergency
care center

Its graduate medical education programs


with
residencies in family medicine and occupational
medicine


provide doctors for the Northeast
Texas region

Offers residency programs in family medicine
and occupational
medicine, as well as
master’s degree
programs in biotechnol-
ogy and environmental science

Is the program sponsor of a residency program
in internal medicine at Good Shepherd Medical
Center in Longview

Partner to the
Heartland National TB Center
,
which is located at the Texas Center for
Infectious Disease in San Antonio and is one of
the nation’s four regional training and medical
consultation centers for tuberculosis.



El Paso Home to

Texas’ Newest Medical School

The
Paul L. Foster School of Medicine
at
Texas
Tech University Health Sciences Center
at El Paso
(PLFSOM) opened in 2009, making it the state’s
newest medical school.

Has over 1,700 faculty and staff members

Is the only four
-
year medical school on the
U.S./Mexico border and operates a Border
Health Research program

Centers of Excellence in Cancer, Infectious
Diseases, and Neurosciences have received
funding from CPRIT and
the NIH

Partners include the
William Beaumont Army
Medical Center (WBAMC)
at Fort Bliss


TTUHSC Leads Medical Training

and Research in West Texas

The
Texas Tech University Health Sciences
Center (TTUHSC)
is based in Lubbock with
satellite campuses in Abilene, Amarillo, El Paso,
Lubbock, Odessa, and Dallas/Fort Worth.

TTHUSC system includes two medical
schools, two nursing schools, a pharmacy
school, a graduate
school of biomedi-
cal sciences, and a
school of allied
health sciences

Has trained over
10,000 health professionals to date

TTHUSC’s Clinical Research Institute was
established in 2010 to conduct
clinical,
epidemiological, and educational research.
Ongoing studies span the fields of aging,
cancer, reproduction, genetic diseases and
rural health


24


A

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

Texas is a natural choice for agricultural biotechnolo-
gy business as the nation’s leading producer of cattle
and cotton and the No. 3 overall producer of agricul-
tural products, behind California and Iowa. The Lone
Star State is also home to world
-
class agricultural edu-
cation and research facilities, particularly through the
Texas A&M and Texas Tech University Systems, as
well as established agricultural feedstock and chemi-
cals manufacturing industries concentrated in the Tex-
as Panhandle and Gulf Coast regions. In 2011,
3,000

or approximately one out of every 12 U.S.
agricultural feedstock and chemicals industry employ-
ees

worked in Texas.


Texas is the nation’s No. 1 cotton

producer and 86% of the state’s cotton

crop is genetically modified.

-
U.S. Dept. of Agriculture

Texas Research Centers

Animal & Agricultural Biotech
Animal & Agricultural Biotech
Animal & Agricultural Biotech



Texas has been at the forefront of agricultural research
for over 100 years. Today, Texas A&M University
still graduates more students in agricultural
-
related
fields than any institution in the nation. Below are
four leading research centers in the state.

Texas A&M Univ., Texas AgriLife Research, Dept.
of Animal Science

Texas A&M’s Dept. of Animal Science has achieved
national and international prominence as the largest
and most complex department of animal science in the
nation. Currently, disciplines within the department
include reproductive physiology, animal breeding and
genetics, food science, microbiology, equine science,
dairy science, animal nutrition, and meat science.

Texas Tech Univ., Animal & Food Sciences Dept.,

Burnett Center for Beef Cattle Research

Since 1984, Texas Tech University scientists working
at the Burnett Center have contributed extensively to
human knowledge of beef cattle feeding and manage-
ment. Major research areas have included animal
growth and composition, beef cattle nutrition, and the
environmental sustainability of cattle production.

Texas A&M Univ., College of Veterinary

Medicine and Biomedical Sciences

The college focuses on six signature programs: infec-
tious diseases, genomics, toxicology and environmen-
tal medicine, cardiovascular sciences, neurosciences,
and reproductive biology. Research includes the col-
lege’s Biomedical Genomics group, which, for more
than 25 years, has led to the most robust animal ge-
nomics programs in the world.

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

The department works to develop technologies to sus-
tain environmentally sound and economically profita-
ble production systems and to promote the wise use
and management of soil, plant, and water resources.


25


AGRICULTURAL & AGRI


Texas Tech Leads in Cotton Agricultural Genomics R&D


In February 2006, the Texas Emerging Technology
Fund (TETF) announced a $1.9 million

investment
in
Texas Tech University

to

help support its new
Cotton Functional Genomics
Center (CFGC)
. The TETF award
played a key role in the universi-
ty’s recruitment of
Dr. Thea Wil-
kins
, one of the world’s premier
cotton geneticists. Dr. Wilkins
currently serves as Director of the
CFGC at TTU’s Department of
Plant and Soil Science (DPSS) and
has generated millions of dollars in
competitive research funding from
the National Science Foundation, the U.S. Depart-
ment of Energy, and the USDA since 2006.

In August 2009, Texas Tech and
Bayer CropScience

signed an exclusive licensing agree-
ment for CFGC’s new cotton tech-
nology. In May 2010, Bayer an-
nounced a $7.5 million contribution
to TTU’s DPSS to support new re-
search initiatives and facilities devel-
opment. Through the 100% grant
matching Texas Research Incentive
Program, this represents a $15
million total contribution to TTU.

AGRI CULTURAL & ANI MAL BI OTECH

Monsanto, however, is not the only global agricul-
tural biotech firm in Lubbock. Since 1998, German
conglomerate

Bayer
has operated its

CropScience
division’s cotton research headquarters in Lubbock.
The site focuses on providing cotton growers with
products to meet
global demand for
cotton fiber. The
company maintains
a state
-
of
-
the
-
art R&D lab, two breeding stations, a
seed processing plant, and supports two of its
global cotton seed brands, Stoneville and FiberMax,
in Lubbock.

Both Monsanto and Bayer CropScience have
developed cotton R&D partnerships with Texas
universities, including two of the state’s leading
research institutions,
Texas Tech University
(TTU)
and
Texas A&M University’s Texas AgriLife Re-
search
. Monsanto offers technology internships to
TTU students, and, in 2009, donated 4,000 cotton
molecular markers and associated information to
Texas AgriLife Research for R&D and breeding
purposes. Bayer CropScience and TTU have been
working together on developing new cotton
technology. See collaboration details below
.

Because Texas is the nation’s largest producer of
cotton, the state is a natural location for the R&D
operations of Fortune 500 agribusiness firm
Monsanto
. In fact, the Missouri
-
based company
has four facilities located in Texas, including a
research farm outside of Lubbock and testing
centers in Haskell and
Corpus Christi.

In December 2010,
Monsanto opened its
newest Texas facility,
the $10.5 million
Texas
Cotton Breeding and
Technology Center,
in
Lubbock. Monsanto’s
new “research
megasite” exemplifies
its commitment to the Texas cotton industry and
to developing varieties adapted to the region,
which produces 60% of the nation’s cotton.

“Cotton is big in Texas,” said Ted Crosbie, Vice
President for Global Plant Breeding at Monsanto.
“That’s why we built this megasite in Lubbock.
This will be our main cotton breeding center.”

Agribusiness Industry Leaders Invest in Texas Cotton R&D


Monsanto’s Cotton Breeding &

Tech. Center

26


E

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

Building on the state’s strong agricultural and forestry
production base, Texas researchers and businesses are
investing in new renewable energy technologies to
maintain the state’s position as the nation’s energy
capital. Research in Texas ranges from exploring new
methods to convert nonfood stock materials to
investigating ways to turn algae into biofuels.

In FY 2010, Texas institutions of higher education
spent $216.8 million on environmental sciences R&D,
according to the Texas Higher Education Coordinat-
ing Board. Additionally
,

the Texas Emerging Tech-
nology Fund (TETF) has invested over $23 million to
date into environmental and biofuels
-
related projects.
See Appendix 1 for a complete listing.

Biofuels in Texas

Ethanol and biodiesel are alternative fuels defined by
their feedstock. Biodiesel can be produced from
vegetable or animal oils that are processed into an
alcohol ester, while ethanol can be produced from
corn and sugar cane, which are fermented and turned
into alcohol. Since
Gov. Rick Perry laid out plans for
a statewide bioenergy initiative in 2007, Texas has
focused on developing alternative fuels from woody
grasses and other plants, rather than food crops like
corn.

As the nation’s No. 3 agricultural production state and
home to a large forest and cattle industry, Texas is
rich in biomass resources and well positioned as a
major biofuels producer. In 2011,
Texas ranked No. 1
nationally with eight

biodiesel refineries providing
nearly 330 million gallons of annual production
capacity, according to the U.S. Energy Information
Administration. The majority of these biofuel manu-
Texas ranks No. 1 nationally for

biodiesel production

-
U.S. Energy Information Administration (EIA)

Environmental Tech & Biofuels
Environmental Tech & Biofuels
Environmental Tech & Biofuels





Texas Is Home to the Nation’s Largest
Biodiesel Plant


Houston
-
based Renewable Biofuels, Inc. operates
the largest biodiesel plant in North America,
RBF
Port Neches,
in Port Neches, Texas. Opened in 2008,
the plant has
a total refining capacity of 180 million
gallons per year.

27


BIOFUELS

facturing facilities are located in the Houston, South-
east Texas, Dallas/Fort Worth, and West Texas
Panhandle regions.

The U.S. Department of Agriculture’s National
Institute of Food and Agriculture (NIFA) awards
research grants to support the development of sustaina-
ble bioenergy. In the first quarter of 2012, the NIFA
awarded more than $1 million in bioenergy grants in
Texas to extend separate studies at
Texas A&M
and
Rice
Universities.

Texas Biofuels Incentives and Regulation

The Texas Tax Code offers a biofuel tax of 20 cents
per gallon exemption (§162.001 and §162.204).
Biodiesel or ethanol blended with taxable diesel, that
is identified when sold or used as a biodiesel or
ethanol fuel blend, is exempt from the diesel fuel tax.

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


ENVI RONMENTAL BI OTECH & BI OFUELS



Texas Bioenergy Startups Take Root


Houston
-
based
Terrabon, Inc.,
recipient of a 2010
TETF investment of $2.75
million to commercialize its
biofuel technology, has pro-
ceeded to earn accolades and business success. In
July 2011, Terrabon was awarded a $9.5 million con-
tract to produce renewable jet fuel for the U.S. De-
partment of Defense. Then, in fall 2011, Terrabon’s
biofuel technology was voted the year’s most trans-
formative technology and the company
was ranked
#19 on the 2011 50 Hottest Companies in Bioenergy
by
Biofuels Digest
, a respected industry publication.

In 2010, the Texas Emerging Technology Fund also
invested $1 million in
Photon8 Inc.
, which genetical-
ly enhances the fuel
-
producing properties of algae
and develops extraction technology. The Browns-
ville, Texas
-
based company is
working in partnership with
the University of Texas at
Brownsville and Texas
Southmost College to pro-
duce low cost biofuels from algae. The company is
currently developing a pilot production plant.



Housed at UT Austin,
UTEX The Culture Collec-
tion of Algae (UTEX)

main-
tains one of the world’s
largest algae collections, with
approximately 3,000 strains.
UTEX supplies algae strains
globally for research, biotech
development, water quality
assessment, and a variety of
other purposes.

UTEX is overseen by
Dr. Jerry
Brand

(pictured), a professor
in molecular cell and develop-
mental biology at UT Austin.


UT Houses One of World’s Largest
Algae Collections


28


Company/

Entity

City

Industry Segment

Project Description

Funding

(in Millions)

1
st

Detect

Houston

Medical Devices
-

Biodefense

Portable chemical detector for security and medical
diagnostics

$1.8

AdviTech

San Antonio

Medical Devices

Vision products to combat spatial disorientation,
vertigo & motion sickness

$2.5

Algae Bio Fuels
Consortium

Pecos

Biofuels

Bioenergy from algae

$4.025

America Stem Cell

San Antonio

Biopharmaceuticals

Bone marrow stem cell transplant enzyme
technology for cancer and other disease treatment

$2.5

Animal Innovations

Amarillo

Veterinary Medical
Technology

Animal injection technology

$1

Apaxis Medical

(FKA SEMMT)

Houston

Medical Devices

Left ventricular assist device (LVAD) implantation

$1

AuricX
Pharmaceuticals

Houston

Pharmaceuticals

Develop and commercialize a drug compound to
treat antibiotic resistant infections, like MRSA

$1

Azaya Therapeutics

San Antonio

Biomedicine
-

Nanohealth

Azaya Liposome Encapsulated Radiation Therapy
(ALERT) for cancer treatment

$1.045

Bellicum
Pharmaceuticals

Houston

Biomedicine

Bio
-
pharmaceuticals

Cancer vaccine

$1.45

Bio2 Medical

San Antonio

Medical Devices

Temporary inferior vena cava filter catheter

$1

Blue Box Health

Houston

Medical Devices

Technology for home
-
health chronic disease
management

$1

CardioSpectra

San Antonio

Medical Devices

Fiber
-
optic cardiac catheter

$1.35

Castle Biosciences

Friendship

Biomedicine


Medical Devices

Biomarker
-
based cancer detection system

$1

Chipotle Business
Group

Arlington

Environmental
Health

Water safety testing

$1

Convergen
LifeSciences

Austin

Nanohealth

Bio
-
pharmaceuticals

Targeted nanomolecular cancer therapies

$4.5

Corhythm

San Antonio

Medical Devices

Implantable treatment for atrial fibrilliation

$3.1

CorInnova

College
Station

Medical Devices

Heart therapy device

$.5

Cormedics

Houston

Medical Devices

Heart therapy device

$1

CryoPen

Corpus
Christi

Medical Devices

Cryosurgical device freezes unwanted tissue

$2

DentLight

Richardson

Medical Devices

Dental medical devices

$1

Diabetica Solutions
(FKA Xilas Medical)

San Antonio

Medical Devices

Diabetic foot products

$1

DNATriX

Houston

Biopharmaceuticals

Genetically
-
modified virus for cancer therapy

$1

Endothelix

Houston

Medical Devices

Cardiovascular test

$1

Ensysce Biosciences

Houston

Biomedicine
-

Nanohealth

Carbon nanotube/siRNA cancer therapeutics

$1.5

EQMA

Waco

Biofuels

CAFOs (Concentrated Animal Feeding Operations)
feedstock to ethanol

$.25

FE3 Medical

San Antonio

Medical Devices

Trans
-
dermal drug patch to deliver iron for treating
iron
-
deficiency anemia

$2.8

Appendix 1: Texas Emerging Technology Fund
Appendix 1: Texas Emerging Technology Fund
Appendix 1: Texas Emerging Technology Fund



Biotech Awards
Biotech Awards
Biotech Awards



29


TEXAS EMERGING TECHNOLOY FUND

Company/

Entity

City

Industry Segment

Project Description

Funding

(in Millions)

Gradalis

Dallas

Bio
-
pharmaceuticals

Cancer therapeutics

$1.75

Halsa Pharmaceuticals

Houston

Pharmaceuticals

Clinical obesity drug development

$1

InView Technology

Austin

Food Safety
-
Biodefense

High
-
performance cameras that operate outside the
visual range (infrared, ultraviolet, and terahertz)

$1.5

Laser Tissue Welding

Humble

Medical Devices

Surgical therapy

$.16

LaserGen Inc.

Houston

Biomedicine

DNA sequencing technology

$.1

Leonardo BioSystems

Houston

Biomedicine
-
Nanohealth

Medical Devices

siRNA cancer therapeutics

$2.5

MacuCLEAR

Plano

Pharmaceuticals

Optical therapeutics

$1.7

MicroTransponder

Dallas

Medical Devices
-
Nanohealth

Neurostimulation pain management

$1.38

MicroZAP

Lubbock

Food Safety

Microwave food sterilization technology

$1.5

Mirna Therapeutics

Austin

Bio
-
pharmaceuticals

MicroRNA therapeutics


cancer treatment

$5

Molecular LogiX

The Wood-
lands

Biomedicine

Bio
-
pharmaceuticals

Genetically engineered therapeutic cancer treatment

$.79

Monebo

Austin

Medical Devices

Heart health assessment

$.5

Mystic
Pharmaceuticals

Cedar Park

Pharmaceuticals
-

Medical Devices

Specialty pharmaceuticals & ophthalmic and
intranasal drug delivery systems

$1.56

Nano3D Biosciences

Houston

Nanohealth
-

Pharmaceuticals

3
-
dimensional in vitro cell culturing

$1

NanoMedical Systems
Inc.

Austin

Medical Devices
-

Nanohealth

Personalized nanochannel drug delivery systems

$3.5

NanoSpectra
Biosciences

Houston

Medical Devices
-

Nanohealth

Oncologic imaging detection using nanoparticles

$1.25

National Trauma
Institute (NTI)

San Antonio

Health Sciences


Health Information
Technology

Civilian and military trauma research

$3.8

Net.Orange

Irving

Health Information
Technology

Heath care information management software

$1.9

Neuro Resource
Group

Plano

Medical Devices

Commercialization of InterX products technology for
post
-
operative acute pain management

$1.5

Neurolink

San Antonio

Medical Devices

Brain implant system to monitor brain activity and
directly deliver drugs to treat brain seizures

$3.2

Noninvasix

Galveston

Medical Devices

Hemoglobin monitor

$1

Oncolix

Houston

Pharmaceuticals

Development of a non
-
chemotherapy drug for treat-
ment of ovarian cancer

$2.4

OnTrack Imaging

Flower
Mound

Veterinary Medical
Technology

Ultrasound imaging system for horses

$1

Ortho Kinematics

Austin

Medical Services

Spine function testing

$1.5

OrthoAccel

Houston

Medical Devices

Orthodontics

$.75

Palmaz Scientific

Dallas

Medical Devices

SESAME stent

$3

Patton Surgical

Austin

Medical Devices

Abdominal
-
based laparoscopic surgery

$3

TEXAS EMERGI NG TECHNOLOGY FUND

30


Company/

Entity

City

Industry Segment

Project Description

Funding

(in Millions)

Photon8

Brownsville

Biofuels

Algae
-
based biodiesel fuel

$1

PLx Pharma

Houston

Pharmaceuticals

Non
-
steroidal Anti
-
Inflammatory Drugs (NSAIDs)

$2

Pronucleotein Bio-
technologies

San Antonio

Environmental
Health

Food and water safety testing products using DNA
aptamer sequences to detect pathogens

$1

Pulmotect

Houston

Biomedicine
-

Biodefense

Stimulated Innate Resistance (StIR) against inhaled
pathogens

$1

Quantum Logic
Devices

Georgetown

Nanohealth

Medical Devices

Nanoelectronics medical diagnostic technology

$.6

RadioMedix

Houston

Pharmaceuticals

Manufacturing radiopharmaceuticals to diagnose
and treat diseases, including cancer, through
positron emission tomography (PET)

$2.8

Receptor Logic

Austin

Biomedicine

T
-
cell mimic receptors antibodies technology to treat
cancer and other diseases

$2

Resonant Sensors

Arlington

Medical Devices

Nanohealth

Optical biochemical sensors

$.6

Salient Pharmaceuti-
cals

Houston

Pharmaceuticals

Treatment of cancer
-
related side effects caused by
disease, chemotherapy, or radiation

$2

Savara

Austin

Pharmaceuticals

Pulmonary cancer therapeutics

$1.9

ScanTech Sciences

Houston

Environmental
Health

Food sterilization technology

$2

Seno Medical

San Antonio

Medical Devices

Laser optical for cancer scanning

$2

SeprOx

The Wood-
lands

Medical Devices

Pure oxygen technology device

$1

Shape Memory
Therapeutics

College
Station

Medical Devices

Cerebrovascular aneurism treatment

$1

Smart Imaging
Technologies

Houston

Environmental
Health

Automated water
-
borne pathogen detection system

$1

Smartfield

Lubbock

Agricultural
Technology

Real
-
time irrigation row crop sensor

$1

Speer Medical Devices

San Antonio

Medical Devices

Non
-
invasive continuous vital sign monitor for
pre
-
hospital use

$2.5

Stellarray

Austin

Medical Devices


Nanohealth


Envi-
ronmental Health

Medical products sterilization & medical imaging

$.75

Sunrise Ridge Algae

Houston

Biofuels

Algae feedstock for bioenergy

$.25

Terapio

Austin

Pharmaceuticals

Treatment and prevention of hand
-
foot syndrome

$1.7

Terrabon

Bryan,
Houston

Biofuels

Conversion of non
-
food biomass into biofuels

$2.75

Texas A&M System

College
Station

Biofuels

BioEnergy Alliance

$5

Texas A&M System

College
Station

Biomedicine

National Center for Therapeutics Manufacturing
(NCTM)

$50

Texas A&M System

College
Station

Medical Devices
-
Biomedicine

Texas Institute for Preclinical Studies (TIPS)

$6

Texas A&M Health
Science Center (HSC)

Temple

Regenerative Medi-
cine
-

Biomedicine

Institute of Regenerative Medicine at Scott &White

$5

TEXAS EMERGI NG TECHNOLOGY FUND

31


Company/

Entity

City

Industry Segment

Project Description

Funding

(in Millions)

Texas State University

San Marcos

Health Sciences


Medical Devices

Center for Multifunctional Materials

$4

Texas Tech University

Lubbock

Agricultural
Biotechnology

Agricultural genomics R&D (recruited Dr. Wilkins)

$1.9

Texas Therapeutic
Institute

Houston

Pharmaceuticals
-

Biomedicine

A consortium of UTHSC Houston, MD Anderson, and
UT Austin to develop and commercialize medical
discoveries, especially pharmaceuticals

$6

Thrombovision

Houston

Medical Devices

Platelet measuring device

$1.5

University of Houston

Houston

Biomedicine
-
Pharmaceuticals

Institute of Biomedical Research & Center for Nucle-
ar Receptors and Cell Signaling (recruited Dr. Jan
-
Ake
Gustafsson)

$5.5

University of North
Texas HSC

Fort Worth

Health Information
Technology
-

Biodefense

Center for Commercialization of Fluorescence
Technology

$2.27

University of Texas at
Austin

Austin

Health Sciences


Medical Devices

Imaging Research Center (FKA Neuroscience Imaging
Center)

$3.5

University of Texas
HSC

Houston

Biomedicine
-
Nanohealth

Biomedical nanotechnology R&D
(recruited Dr. Mauro Ferrari)

$2.5

University of Texas
HSC

Houston

Health Sciences

Center for Translational Injury Research

$5

University of Texas
HSC

San Antonio

Health Sciences


Medical Devices

Animal imaging research center for drug and medical
device testing

$4.1

University of Texas at
Tyler

Tyler

Environmental
Health

Texas Allergy, Indoor Environment and Energy
(TxAIRE) Institute

$3.75

ViroXis

San Antonio

Bio
-
pharmaceuticals

Botanically
-
based therapies for dermal viruses

$2.5

Visualase

Houston

Medical Devices

Image
-
guided laser technology for cancer therapy

$.75

Vital Art and Science

Richardson

Medical Devices

Home
-
based device to monitor vision for patients
with macular degeneration and diabetic retinopathy

$1

ZS Pharma

Fort Worth

Pharmaceuticals

Oral sorbent to remove toxins in the treatment of
kidney and liver disease

$2

TOTAL

---

---

---

$233.58 M

TEXAS EMERGI NG TECHNOLOGY FUND

32


Biodiesel Coalition of Texas (BCOT) at
http://biodieselcoalitionoftexas.org

A non
-
profit association website with statewide biodiesel industry information, links, and more.


BioHouston at
www.biohouston.org



A Houston non
-
profit association’s website with regional biotechnology business resources.


BioMed SA at
www.biomedsa.org


A San Antonio non
-
profit association’s website provides information about regional biomedical resources.


Biotechnology Industry Organization (BIO)

at
www.bio.org

A U.S. biotechnology industry association website with statistics, reports, charts, links, and more.


Cancer Prevention and Research Initiative of Texas (CPRIT)

at
www.cprit.state.tx.us



The CPRIT website contains information about this state agency including grant project details.



The Center for Life Sciences Technology (CLiST) at
www.texasbiotech.org


The website of this Houston
-
based Center, housed at the University of Houston, provides information on regional resources and ne
ws.


International Service for the Acquisition of Agri
-
Biotech Applications (ISAAA) at
www.isaaa.org


A non
-
profit international association website with global information on genetically modified biotechnology crops.


Medical Devices Manufacturers Assn. (MDMA)

at
www.medicaldevices.org


A U.S. industry association website with medical devices news, resources, and links.


National Biodiesel Board (NBB) at
www.biodiesel.org


A national trade association offering industry news, biodiesel plants data, statistics, papers, links, and much more.


National Institutes of Health (NIH
)
at
www.nih.gov

The U.S. government agency website includes many reports and statistics.


National Science Foundation (NSF)

at
www.nsf.gov


This U.S. government agency funds much of the nation’s basic research and publishes many reports and statistics on its websit
e.



The Pharmaceutical Research & Manufacturers of America (PhRMA) at
www.phrma.org


The major U.S. pharmaceutical industry association’s website with news and industry information.


Renewable Fuels Association (RFA) at
www.ethanolrfa.org


A U.S. industry association website with biorefinery locations data, industry production statistics, and much more.


State Energy Conservation Office (SECO) at
www.seco.cpa.state.tx.us


The Texas Comptroller of Public Account’s SECO website offers information focused on cost
-
effective clean energy technologies in

Texas,
funding and incentives, SECO programs, and much more.


Texas Bio Corridor Alliance at
www.texasbiocorridor.org

A non
-
profit organization formed to support and promote the life sciences along I
-
35 in Texas, from San Antonio to Dallas/Fort W
orth.


Texas Department of Agriculture


Bioenergy

www.texasagriculture.gov/Home/ProductionAgriculture/Bioenergy.aspx

A Texas state agency website with information and data resources on Texas bioenergy.


Texas Emerging Technology Fund (TETF)

at
www.emergingtechfund.com


The Texas Office of the Governor’s TETF program website area providing TETF awards information, program contacts, news, and m
ore
.


Texas Healthcare & Bioscience Institute (THBI) at
www.thbi.com


THBI serves as an advocate and resource for the Texas biotechnology industry and legislators.


Texas Industry Profiles website

at
www.texasindustryprofiles.com

This Texas Workforce Commission website contains the 2005 Texas industry cluster reports, including Biotechnology and Life Sc
ien
ces,
Regional Location Quotients data at
http://www.texasindustryprofiles.com/apps/locquot/index.asp
, and much more.


USDA’s Economic Research Service (ERS) website

at
www.ers.usda.gov

The ERS is the primary source of U.S. Department of Agriculture (USDA) economic information and research. Its website provid
es
a wealth
of data, including some international statistics
.

Appendix 2: Selected Industry Resources
Appendix 2: Selected Industry Resources
Appendix 2: Selected Industry Resources



33


Office of the Governor

Economic Development and Tourism

PO Box 12428, Austin, TX 78711

512
-
936
-
0101


www.TexasWideOpenForBusiness.com