Flagstaff 2014 Bioscience Plan

F L A G S T A F F

B I O S C I E N C E

T A CT I C A L P L A N

2014 The Path Forward

Growing the Biosciences in Northern Arizona

I M P L A N T A B L E M E D I C A L D E V I C E S G E N E T I C S R E S E A R C H C L I N I C A L T R I A L S A N

R E S E A R C H D I A G N O S T I C S B I O P O L Y M E R W O U N D H E A L I N G D R U G T E S T I N G L A B S

N E U R O S C I E N C E S S E R V I C E S G E N O M I C S S T E M E D U C A T I O N B I O S C I E N C E P R O D U

D E V E L O P M E N T B I O M A R K E R D E V E L O P M E N T P A T H O G E N G E N E T I C S R E S E A R C H

M E D I C A L P A C K A G I N G M E D I C A L D E V I C E M A C H I N E B I O S C I E N C E E N G I N E E R I N G

H O S P I T A L S A D V A N C E D T R E A T E M E N T P R E C I S I O N M E D I C I N C E C A N C E R R E S E A R C H

FLAGSTAFF has seen tremendous progress in the development of the BIOSCIENCES in the past 10 years. This progress was the result of the groundwork and the influence of the Flinn Foundation Bioscience Roadmap. LEADERS from across the State, including Flagstaff, under the Flinn Foundation leadership have worked together to build the infrastructure, create the strategic framework, make the investments, and implement the policies that have laid the foundation. The Roadmap has set the course for even greater growth and success of the biosciences in Arizona. The biosciences sector is one Flagstaff’s largest sectors employing over 5,300 people and has potential for accelerated growth and improvement. Generously funded and supported by the Flinn Foundation the Flagstaff 2014 Tactical Plan reflects the collaboration, commitment and investment by the regions bioscience leaders. Under the guidance of the Economic Collaborative of Northern Arizona (ECoNA) in partnership with the Flinn Foundation Bioscience Roadmap the future of the bioscience sector in Northern Arizona LOOKS BRIGHT.

Chris Bavasi Richard Bowen

Chair, Board of Directors President

ECoNA ECoNA

F LAGS TA F FBIOSCIENCE TACTICAL PLAN 2014


R E S E A R C H D I A G N O S T I C S B I O P O L Y M E R W O U N D H E A L I N G D R U G T E S T I N G L A B




O S A S A A C A C S O C C C A C S A C

Flagstaff’s Bioscience Tactical Plan P a g e | 2

WHAT ARE THE BIOSCIENCES? From the Flinn Bioscience Roadmap:Thebiosciencesarelabresearch.Theyaremanufacturingplants,buddingstartups,andhospitals.Theyarediseasetreatmentandprevention,medicaldevices,andevenalgae,plants,andagriculture.Thebiosciencesserveadiversesetofmarkets,spanningbiomedicaldrugs,diagnosticsanddevices,andagriculturalandbio‐basedindustrialproducts.Inaddition,thebioscienceindustryinvolvesnotonlyhigh‐value,export‐orientedmanufacturingactivities, butspecialtycommercialresearch,development,andtestingindustriestoadvancebioscienceproductdevelopmentaswellasspecialtydistributiontobringproductstomarket.Together,thebiosciencesmakeourworldabetterplacebydevelopingtreatmentsforhealthafflictions,designingdiagnosticstogaugeandpreventillness,strengtheningourfoodsupply,developingbiofuels,andmuchmore.Bycombininghigh‐techresearch,academia,andproductcommercialization,thebiosciencescanserveasaneconomicdriverwithhigh‐payingjobsandflourishingcompanies.Asshownintheadjacentgraphic,therearesixsegmentsthatmakeupthebiosciencesinArizona:•Agriculturalfeedstockandchemicals•Drugs,pharmaceuticals, anddiagnostics•Medicaldevicesandequipment•Research,testing,andmedicallabs•Hospitals•Bioscience‐relateddistributionThefirstfivewereincludedintheoriginalBioscienceRoadmap,launchedin2002.Thesixthcategory,bioscience‐relateddistribution,isbeingintroducedwiththisreporttoalignArizonawiththelatestnationaldefinitionofthebiosciencesbytheBiotechnologyIndustryOrganization,theindustry’snationaltradeassociation.Bio‐distributioncoordinatesthedeliveryofbioscience‐relatedproducts.Itincreasinglyinvolvesspecializedapproachestocoldstorageandproductmonitoring,andnewtechnologiessuchasautomatedpharmaceuticaldistributionsystems.Threemajorcomponents,eachrelativelydistinctinitsproductfocus,comprisethebio‐distributionsubsector—drugsandsundries;medical,dental,andhospitalequipmentandsupplies;andfarmsupplies.Battellehasdevelopedmethodologythatisolatestheportionsofthesecomponentsthatmostcloselyrelatetothebiosciences.Medical, dental,andhospitalequipmentandsuppliesisthelargestindividualcomponent,accountingfor43percentofthissegment’sjobsnationally.


FLAGSTAFF’S BIOSCIENCE TACTICAL PLAN models the strategic and tactical actionscalled out by Arizona’s BioscienceRoadmap. The Tactical Plan is a result ofmanymeetings andplanning sessionswiththe bioscience sector leadership in thegreater Flagstaff region. Private sectorindustry, researchers, academia, investors,city officials, county officials, andeconomic development professionalscommitted to take the practical actions toinsure that the complex and challengingprojects that would advance thebiosciences in the greater Flagstaff wouldcome to fruition. Certainly the vision,goals,andactionsoftheregionsbioscienceleaders are ambitious. The alignment andconsensusofthebioscienceleadersaroundthe vision, goals, and actions is thepowerful tool that will result in theexpansionofexistingbiosciencesector.

The bioscience sector process evaluatedthe highly successful major bioscienceregions such as Boston, San Francisco, andSan Diego. It was determined that theassets that are critical contributors andsomewhat of a requirement for successand growth in the biosciences is thepresenceofamajorresearchuniversity(s), research institutes both private andpublic, growing bioscience industrybusinesses, bioscience work forceavailability and training, biosciencelaboratories and research parks,bioscience business parks, biosciencebusiness incubators and accelerators, public and private investment capital, andarobustentrepreneurialenvironment.

Over thepast tenyears since the inceptionoftheBioscienceRoadmapFlagstaffhas

REPORT AT A GLANCE


continued to evolve in the maturity andgrowth of its major institutions andbusinesses. While it can be said that thebiosciences are to a certain degree, still inits early stage development in Flagstaff, itcanalsobesaid that themajor institutions,organizations, and companies have theability and critical mass to serve as thefoundation. This foundation allows forfaster and higher quality expansion. Thefoundation also provides the basic assetsfor success in the biosciences in the nextten year cycle of the Roadmap. In additionthe bioscience start‐ups and thebiosciencescompaniesthatdecideto locateinFlagstaffwill beadriverofthegrowth.

In evaluating the potential for the next tenyears and in creating the tactical actionsteps needed to insure the acceleration ofthe biosciences in Northern Arizona thesector leadership took stock of the currentassets and how they will contribute todevelopmentof thebiosciences inNorthernArizona.With the support and commitmentof the bioscience sector leadership to the2014FlagstaffBioscienceTacticalPlan,andto future tactical plans that reflect thechanging environment, the biosciences inFlagstaffandNorthernArizonawillgrowatanacceleratedrate.

REPORT AT A GLANCE


FLAGSTAFF IS FORTUNATE TO HAVE A GROUP OF ORGANIZATIONS, PRIVATE SECTOR LEADERS, AND PUBLIC SECTOR LEADERS WHO CAN BRING THE RESOURCES, DRIVE, AND INVESTMENT TO IMPLEMENT THE TACTICAL PLAN.

NORTHERN ARIZONA UNIVERSITY has grownits research mission and particularly itsbioscience research mission with a specificemphasis on genetics and genomics. As aresult the number of bioscience researchers,post docs, graduate student researchers,undergraduate research, potentialintellectual property, and potentialentrepreneurs has increased. The Universityhas a goal of doubling its researchexpenditures by 2020 adding significantmomentum to the bioscience sectorpotential. NAU has received national andworld‐wide recognition for outstandingresearch and breakthroughs in genetics, bioengineering,andbioscience.

Opened in the beginning of 2008, theCenterforMicrobialGeneticsandGenomics(MGGen)has quickly become one of the most notablescientific facilities in the country for itsstudy of anthrax, plague, and bacteria. MGGen partners with theTranslational GenomicsResearch Institute (TGen) North, established in Flagstaff in 2007. Together, they arepioneering genetic analysis of disease vectors and helping to improve public health, biodefense,anddiseaseoutbreakinvestigations.

Other NAU Centers and facilities for research in bioengineering, biosciences, and genetics include:

BiologyDepartmentResearch

CenterforMicrobialGeneticsandGenomics(MGGen)

EnvironmentalGeneticsandGenomicsLaboratory(EnGGen)

GibbLab

ImagingandHistologyCoreFacility

SchwartzLaboratoryofMicrobialEcology

FLAGSTAFF BIOSCIENCE LEADERSHIP ORGANIZATIONS


In addition to creating the sophisticated and highly trained work force of the futureNorthernArizonaUniversityboastsanumberoforganizationsdrivingeconomicactivityandmakingasubstantialandimportanteconomicimpactinArizona.Includedisthenationally

known W.A. Franke College of Business, the NAU Center for Business Outreach, the NAUOffice of Economic Development, NAU Center for American Indian Economic Development,ArizonaHospitalityResearch&ResourceCenter,NAUCenter forAmerican Indian EconomicDevelopment, NAU EDA University Center, and the NAU Rural Policy Institute.http://franke.nau.edu/business‐outreach/

The aforementionedNAUorganizations are innovators anddriversof excellence inbusinessincubation and acceleration, entrepreneurial education and training, business outreach,business service and engagement, direct job creation, technology transfer, and businessretention and expansion. In addition, thegrowing world class research at NAU isproviding direct economic impact with jobcreation, intellectual property, technologytransfer, business incubation, anddevelopment of sophisticated high levelworkforcedemandedbyindustry.

Northern Arizona University is also engagedin direct economic development as a partnerand manager of the regional economicdevelopment organization the ‘EconomicCollaborative of Northern Arizona (ECoNA).www.econa‐az.com

Northern Arizona University’s strategic economic development plan recognizes businessincubation and advanced venture acceleration are critical components for NorthernArizona’s economy to grow and prosper. Northern Arizona has developed a robust andgrowingknowledgebasedeconomy in thebiosciences, technology, sciencebasedcompanies,software, advanced manufacturing, astronomical sciences, education, and medical services.Fostering growth and expansion in the knowledge based companies will allow the region’seconomytocompetenationallyandglobally.



WL GORE MEDICAL DIVISION is a mainstayin thebioscience industry inFlagstaff since1968 with over 2,100 employees, 12manufacturing and sophisticated researchfacilities encompassing 1.2 million s.f. ontwo campuses in Flagstaff. They developImplantable medical devices and tissuereplacement products that are used aroundthe globe. WL Gore is regularly recognizedas one of the best places to work by themajor trade journals. They continue toinnovate with new products. Several newproducts recently approved by the FDAhave led to one new plant beingconstructedattheWoodyMountaincampusandasecondnewbuildingindevelopment.

WL Gore plans to expand its work force intheFlagstaff regionover thenext ten yearsand has been active contributor to thedevelopment and implementation of theTactical Plan.WLGore brings to the regiondoctors, biomedical researchers,biomedical engineers, histologists,laboratory technicians, MPE engineers,technologists,andscientistswhoall lendtothe scientific nature of the community andsupports the community drive for a STEMexcellent community. We know fromprevious experience that those in thebiosciencesareattracted toFlagstaff’shighquality of life, high quality education, andstrongSTEMcommitment.WLGoreattractsbioscience employees that support theseattributes. WL Gore is a potent partner ingrowing the entire bioscience sector inFlagataff. www.goremedical.com

TGEN NORTH , Located in Flagstaff, Arizona,nestled in the world's largest PonderosaPine forest. TGen North is the heart ofTGen's Pathogen Genomics Division, ledbyDr. Paul Keim, one of the world'sforemostexpertsinanthraxandother



dangerous infectious diseases. Dr. Keim is a professor of biology and the Cowden EndowedChair inMicrobiologyatNorthernArizonaUniversity(NAU).TGenNorthisamajordriver inthe bioscience sector. The strategic plan for TGen North has been developed to focus ondiagnostic, analytic, forensic and epidemiologic research related to pathogens important tomedicine,publichealthandbiodefense.Theseactivitiesare linkedacrossTGenNorth's fourresearch centers: 1) Center for Public Health and Clinical Pathogens; 2) Center forMicrobiomics and Human Health; 3) Center for Dangerous Pathogens; and 4) Center forPathogenInformation.OnApril13,2007,TGenNorth

officially opened its doors. David Engelthaler, the former Arizona State Epidemiologist andArizona Biodefense Coordinator, provides theday‐to‐day management of TGen North. Theresearch capabilities of the new lab include avariety of PCR‐based analyses, geneticsequencing, Biosafety Level 1 and 2 pathogenhandling, forensicgeneticanalysisofbiothreatagents,andbioinformaticanalyses.TGenNorthalso has access to the new advanced BiosafetyLevel 3 facilities on the NAU campus and thecomprehensive genomic research capabilitiesof TGen Headquarters in Phoenix. In additionto NAU, TGen North has many local, nationaland international research partners, includinguniversities, biotech companies, securityagencies, health care providers, and publichealthdepartments.

TGen North programs are funded by multiple federal, local, commercial and non‐profitentities that support medical diagnostics, forensic analyses and biodefense‐related workincluding the Department of Defense, Department of Justice, the National Institutes ofHealth, theArizonaBiomedicalResearchCommissionandothers..The launchandsuccessofTGen North in Flagstaff is a significant step for both establishing a biosciences corridor inArizona and furthering economic development in Flagstaff. TGen North is already making great strides in pathogen genomic research including theidentification of new diagnostic signatures for pathogens that cause pneumonia and sepsis,analyzing the genome of Coccidioides posadasii, which is the cause of Valley Fever, developing and applying new metagenomic analysis tools towards various aspects of thehuman microbiome, and developing new forensic tools for biothreat agent analysis. Mission: Advancing Public Health, Clinical Medicine and Biodefense through targetedmicrobialgenomics.

Values: Team, Leadership, Vision, Responsibility, Growth, Change.Strategies:

Employ experienced, talented and energetic personnel to provide leadership,conductresearch,andprovideadministrativesupport

BIOSCIENCE LEADERSHIP ORGANIZATIONS



Focusonresearchthatisimportantlocallyandhasimpactsglobally

Developandmaintainstrong local,nationaland internationalpartnershipswithother research institutions, universities, health care providers, biotechcompanies, public health agencies, security and defense agencies andcommunitygroups

Strive to produce research outcomes that not only positively impact medicineand public health, but that also impact the local community by increasing thestandard of living and employment (e.g., attract partners to move to area;developspin‐offcompanies;etc.)

Goals:

Use state of the art genomics to analyze genetic material from pathogensimportanttomedicine,publichealth,andbiodefense

Developnewgenomicdiagnosticandanalytical tools forpathogen identificationandphylogeneticandphenotypiccharacterization

Partnerwithpublichealthofficials toconductmolecularepidemiologicanalysestoassistwithdiseaseoutbreakinvestigations

Develop the capacity to conduct forensic analysis on genetic material frompotentialbiothreatagentsaspartofbiodefense‐relatedinvestigations

Research Centers:

CenterforPublicHealthandClinicalPathogens

CenterforEmergingPathogensandTechnologies

CenterforMicrobiomicsandHumanHealth

CenterforPathogenInformation

CenterforFoodMicrobiologyandEnvironmentalHealth

CenterforPathogenicFungalGenomics

Collaborations:

TGen North works within the Pathogen Genomics Division and across otherTGenDivisionstomakebestuseofTGen'stalentandresources

TGen North is intrinsically linked toNAU'sMicrobial Genetics and GenomicsLaboratory(P.Keim‐Director)andcollaboratesonprojectsandresources

TGenNorth is aNorthernArizonapartnerof theBiosciencesResearchCorridor,includingTGenHQ,ASU,Biodesign,IGC,BIO5,etc.

TGenNorthisphysicallylocatedneartheFederalBureauofInvestigation,whichwillincreaseconnectivityonbiodefenseactivities

TGen North has a close association with theArizona Department of HealthServicesas well as a number of programs within theCenters for DiseaseControlandPreventionwhichincreasesitspotentialtoimpactpublichealth




TGen North has ongoing collaborations with biotechnology companies andhealthcare institutions which will help speed the translation of outcomes ofbenchresearchtoclinicalpractice

TGen North has a seat on the Northern Arizona Bioscience Roadmap Steeringcommittee,coordinatedbyTheFlinnFoundationandBattelle.

TGen North is an active participant and collaborator in the development of theFlagstaffBioscienceTacticalPlan.

TGen North has close association with theEconomic Collaborative of NorthernArizonaandtheCityofFlagstaff

FLAGSTAFF MEDICAL CENTER is a regional referral center serving all ofNorthernArizona. Itis the only Level 1 Trauma center outside of Phoenix and Tucson. As a result it hasdeveloped into very large sophisticated medical center with all of the specialties andcapabilitiesof themajorurbanmedicalcenters.Employingover2000employeesandaddingapproximately 100 new employees this next year with anticipated greater growth in thefuture. FMC is a major employer in Flagstaff. More recently FMC has evolved to be able totake on a research mission. In conjunction with Northern Arizona University, funded by agrant from the Flinn Foundation, FMC has hired a research director and established aresearch division that is focused on improving outcomes in hospital to home transitions, long termhealthoutcome improvement for chronicdisease, anduseof informatics tobetterhealthcare outcomes. The researchdivision is an area for continuing growth at FMC as theydevelopadditionalpartnerships.


IN THE 2012 AND 2013 THE FLAGSTAFF BIOSCIENCE LEADERSHIP HELD A SERIES OF MEETINGS TO ENGAGE IN THE SECTOR PROCESS. THE SECTOR PROCESS ASKS THE BIOSCIENCE AND COMMUNITY LEADERS WHAT ARE THEIR GOALS AND OPPORTUNITIES IN THE NEXT SEVERAL YEARS:

WL GORE PLANS TO BRING NEW PRODUCTS TO MARKET

PROTEIN GENOMICS IS GROWING ITS MARKET BASE

NORTHERN ARIZONA UNIVERSITY IS EXPANDING BIOSCIENCE RESEARCH

TGEN NORTH EXPECTS TO GROWTH AND TO COMPETE FOR ADDITIONAL SPONSORED RESEARCH

PATHOGENE IS DEVELOPING NEW MEDICAL DIAGNOSTICS

DEVELOPMENT ENGINEERING SERVICES IS EXPANDING THEIR CLIENT BASE

NORTHERN ARZIONA HEALTHCARE IS EXPANDING AND PLANNING GROWTH

FLAGSTAFF MEDICAL CENTER AND NORTHERN ARIZONA UNIVERSITY HAVE STARTED A JOINT RESEARCH AND CLINICAL TRIAL PROGRAM

PRENT CORPORATION HAS EXPANDED INTO MARKETS IN ASIA AND SOUTH AMERICA – ADDING EMPLOYEES AND EXPANDING THE FLAGSTAFF PLANT

SENESTECH IS BUILDING A MANUFACTURING FACILITY AND SIGNED A NATIONAL LICENSING DEAL

THE NEXT QUESTION ASKED OF THE SECTOR LEADERS IS WHAT DO YOU REQUIRE TO ACCOMPLISH YOUR GOALS?

From this sector process and the on-going sector dialogue the following elements of the plan were created to which the community and industry leadership agreed to implement through prioritized investment and action.

TACTICAL PLAN 2014


1. DEVELOP CRITICAL REGIONAL INFRASTRUCTURE AND SUPPORT SYSTEMS NORTHERNARIZONAUNIVERSITY–NEWHEALTHANDSCIENCE LABORATORY BUILDING. Northern ArizonaUniversityhasnearlydoubleditsbiosciencemajorsinthe past 10 years. In addition, it has plans to expandsignificantlyitsresearchmission.TheArizonaBoardofRegents has recognized that a robust and activeresearch program will drive economic developmentfor the State. Many national studies confirm that theenvironment, discovery, and talent developed byresearchleadstothestartofnewcompaniesandtotheconditions, workforce, and capital needed to attractcompanies. Through the bioscience sector process anidentifiedneed for theregionwasadditional teachingand research laboratory space. This new laboratorybuilding will allow Northern Arizona University toexpand its researchbut also create thehighly trainedcredentialed work force needed by the growingbioscienceindustryinFlagstaffandArizona.

FLAGSTAFF AIRPORT TECHNOLOGY AND BIOSCIENCEPARK ‐ Flagstaff is in a unique real estate position inthat community is surrounded by public lands thatcannot be developed. This has created a shortage ofproperties that can be developed and has resulted inhigher land and building costs. Developing affordableparcels with appropriate infrastructure is a criticallong term requirement for bioscience companies andorganizationsthatstart,incubateorlocateinFlagstaff.The City of Flagstaff has set aside 100 acres at theFlagstaff Airport and has built the utility and roadinfrastructure at the airpark to accommodatebiosciencedevelopment.

INNOVATIONMESAPROJECT–Biosciencestartupswilldrive much of the future growth of the bioscienceindustryinFlagstaffinthenext10years.TheNorthernArizona Center for Entrepreneurship and Technology(NACET)isasuccessfulbusinessincubatorinFlagstaff

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that began in 2008 in a partnership between Northern Arizona University, City of Flagstaff, and theEconomicDevelopmentAdministration.Itisdesignedtofosterandsupportstartupbiosciencecompaniesutilizing intellectual property and discovery from Northern Arizona University, TGEN North, FlagstaffMedical Center, and private research organizations. In 2012 Flagship Biosciences, a tier two biosciencecompanyincubatedatNACETmovedtoDenverwhentheywereunabletofindsuitablelaboratoryspaceintheprivaterentalmarketinFlagstaff.SeveralotherNACETaffiliatecompaniesalsomovedoutofFlagstafffor similar reasons. It became apparent that Flagstaff would face similar circumstances with futurebioscience companies in the future. Once again the bioscience sector leaders made a significantcommitmenttofunda25,000s.f.biosciencesstartupacceleratornamedtheInnovationMesaprojectwhichwouldallowtiertwocompaniesthelaboratoryandmanufacturingspaceneeded.TheCityofFlagstaffhasprovided the leadership and oversight of the EDA grant and construction of the project. BusinessincubationandadvancedventureaccelerationarecriticalcomponentsforNorthernArizona’seconomytogrowandprosper.NorthernArizonahasdevelopedarobustandgrowingknowledgebasedeconomyinthebiosciences, technology, science based companies, software, advanced manufacturing, astronomicalsciences, education, and medical services. Fostering growth and expansion in the knowledge basedcompanieswillallowtheregion’seconomytocompetenationallyandglobally.

NorthernArizonaUniversity(NAU)hasbeenengagedinbusinessandventureincubationinNorthernArizonathroughapartnershipwiththeNorthernArizonaCenterforEntrepreneurshipandTechnology(NACET)andtheCityofFlagstaff.Thepartnershiphascreatedsignificantsuccessinthepastfiveyears.AstudyconductedbytheNAUFrankeCollegeofBusinessshowedthatclientcompaniesatNACETcreated165newjobsin2009and2010withanaveragewageof$75,000.Furthermore,throughNovemberof2011,NACETclientshaveraisedover$68millioninfundingandclientsspent$17millionwhichhadaregionaleconomicimpactof$29millionjustfor2011.

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NAU has created new programs and offerings toencourage, educate, and fund students to becomeentrepreneurs and start businesses while at theUniversity. These programs include our studentbusiness incubator ‘LaunchBox’, ExtremeEntrepreneurTour,andNAUStart‐upWeekend.

NAU research scientists along with partners atTGENNorthhavecreatedintellectualpropertyanddiscoveries that have been turned into newcompanies such as Pathogene and ProteinGenomics. NAU faculty and studentshave creatednew companies that are currently in businessincubation andwill soon be ready for the ventureaccelerationastheybecometiertwocompanies.InadditiontheworkofNAUineconomicdevelopmentand the NAU collaboration with the regionaleconomic development organization EconomicCollaborative of Northern Arizona (ECoNA) isbringing new start‐up technology and biosciencecompanies to the region that will want and needaccess to venture acceleration facilities andprograms.

A problem for business start‐ups, entrepreneurs,andexistingcompaniesinNorthernArizonaregionandformostofArizonaforthatmatterisalackofventure acceleration programs, facilities andprograms. RecentlyNorthernArizonaexperiencedthe loss of a growing tier two digital pathologycompany, a tier two renewable energy company,andagrowingtiertwosuperconductivitycompanytootherstatesandregionsbecausetheycouldnotfind appropriate two‐tier space or ventureaccelerationservices inNorthernArizona.WithouttheventureaccelerationprogramsandfacilitiestheregionandState’sabilitytogrowandcreatejobsisslowedandinsomecasesstymied.Recognizingthatventureacceleration isa critical step toexpandingthe current success in job creation NorthernArizonaUniversityisexpandingitscurrentventureaccelerationwork.Inaddition,NAUispartnering

TACTICAL PLAN 2014


withNACETandtheCityofFlagstafftooperateaventureaccelerationprograminthenewInnovationMesaproject.NAUwill house its expandedventure acceleration andongoingbusiness incubationwork in thefacility.

This venture acceleration facilitywill be an important step forward forNorthernArizona andNorthernArizonaUniversityinacceleratingjobcreation.NAUventureaccelerationprogramacceleratesthegrowthandsustainabilityofthetiertwostart‐upsthrough:

1. Accesstothetechnicalexpertise,mentoring,andconsultingofNAUbusinessandengineeringfaculty, NAU economic development practitioners, research faculty, MBA and engineeringgraduatestudents,interns,engineering,marketing,finance,andlaboratoryequipment.

2. IntellectualpropertyandtechnologytransferdevelopedbyNAUandcooperatinguniversitiessuchasASU,UA,MIT,Stanford,andmanymore.

3. Connectionstolocal,state,andnationalbusinessincubationresources.

4. AssistanceandaccesstocapitalintheformofgrantsfromtheEDA,NSF,NIH,DepartmentofCommerce,SBIRgrants,andmanymore.

5. Accesstocapitalfromangelandventureinvestors.

6. Mentoring from a network of professionals such as patent attorneys, CPA’s, experiencedentrepreneurs,engineers,aswellassalesandmarketingprofessionals.

7. Laboratory,production,andmanufacturing space withadvanced technology andequipment.

8. Incubation coaching andoversight.

TheInnovationMesaprojectwillprovide"soft landing" space for tier twocompaniesdevelopedbyNAUfacultyandstudents,Tier2companiesandgraduatesexitingNACET’sincubationprogram,andallownewstart‐upcompanieswishingtoenter to business incubation to havespace in the NACET. This project isintended to create over 300 jobs and $20 million in private investment within the first five years ofoperation. The addition of wet and dry laboratories in InnovationMesa is critical to expand and growexistingcompaniesintheregion.Currentlynoprivatelaboratoryspaceisavailableoranticipatedtobe

TACTICAL PLAN 2014


built.ThisprojectwillallowNorthernArizonatoretainlocalbusinessesthatmayhaveotherwiselefttheregiontoseekthesetypesofventureaccelerationprograms,servicesandfacilities.Specifically,thisprojectandtheNAUadvancedventureaccelerationprogramprovidethesebenefits:

1. High technology and bioscience startups will result from technology transfer andcommercializationofresearchconductedbyNAUfacultyandstudents.

2. Localentrepreneurswillbecomemorecompetitiveintheglobalmarketthroughthetechnicaland business advice from NAU Venture Acceleration Program, NACET staff and theirstatewidementorsgroup.

3. Existing firms and new firms will locate inNorthern Arizona to take advantage of theInnovation Mesa’s facilities and to be neargrowingindustryclusters.However, this facilityisunlikelytocompetewithexistingcommercialfacilitiesduetosmallleaseareas,non‐traditionalfinance terms, and access to lab space notavailable in the current commercial real estatemarket.

4. Native American culturally specific businesseswillbeencouragedtoexpandtheirserviceareasthrough guidance from and access to NAU andNACETstaff,businessleaders,andprograms.

InnovationMesaprojectisasharedvisionwithstate,local,andprivate entities. This collaborative partnership involves theCity of Flagstaff, Northern Arizona University, EconomicCollaborativeofNorthernArizona,NorthernArizonaCouncilofGovernments, and the Northern Arizona Center forEntrepreneurship and Technology. This collaborativepartnership has already shown a proven ability to worktogethertoadvancetheeconomicneedsoftheregion.

In addition to the community collaborationNorthernArizonaUniversity and NACET have a long standing partnership inbusiness incubation, technology transfer, entrepreneureducation, andmentorship. InOctober2011ArizonaGov. JanBrewer made a $1 million state investment in a NAU andNACET northern Arizona business incubator partnershipfurthered and supported research‐intensive ventures andsmall business opportunities in the region, ultimately leadingto more local high‐wage jobs. The Northern ArizonaUniversity/NorthernArizonaCenterforEmerging

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Technologiespartnershipwasestablishedfouryearsagotosupportthecreationofsuccessfulscience‐andtechnology‐basedcompaniesinnorthernArizona.TheGovernorsfundingwasusedtoadvancethecenter’sexistingprojects, increase thenumberofnewprojects, cultivate spin‐off opportunities,provide researchopportunities to undergraduates andmentor graduate researchers in start‐up business efforts in a true“growyourown”talentinitiative.

Thisadvancedventureaccelerationprogramwill expand thepartnership.NACETandNAUwill leverageandexpandtheresourcesforventureacceleration.NAUwillholdaseatontheExecutiveBoardofNACET.Northern Arizona University and NACET already have a significant statewide business incubation andeconomic impact with the potential to significantly increase the impact with advanced ventureacceleration.NAUandNACETwill co‐marketandco‐brand theventureaccelerationprogram inArizona.NACETcurrentlymanagestheincubatoratEmbryRiddleUniversityinPrescott,CenterforEntrepreneurialInnovationatGatewayCommunityCollege inDowntownPhoenix,TownofMaricopaBusiness Incubator,and business assistance centers in Prescott and Cottonwood, and aNativeAmerican business incubatorservingTribes located inCoconino,Navajo,Apache, andYavapai counties. NACET is alsonegotiating todevelop incubators in greater Phoenix and other rural communities. Northern Arizona University hascampusesin30locationsinbothruralandurbanArizona.

NORTHERNARIZONAUNIVERSITYRESEARCH PARK – Northern Arizona University is the center of theresearch efforts inNorthernArizona. TheArizonaBoard of Regents set a goal for theNorthernArizonaUniversity to double its research portfolio and expenditures. In addition, the sector process identifiedopportunities to attract contract research organizations and research institutes. These organizationstypically decide to locate a branch or move to the region to avail themselves of the faculty, students,researchers, workforce, facilities and life style of the region. ECoNA is specifically targeting contractresearch organizations and researchinstitutes in its work to attract newbioscience organizations and companies toFlagstaff. Many of these organizations willseeklocationsthatgivethemproximityandaccess to Northern Arizona University,TGEN North, Flagstaff Medical Center, WLGore, and Coconino Community College.Also, as Northern Arizona Universitycontinues to expand its research portfolioadditional research facilities will berequired. Building sites on the core of thecampusare limited.Theresearchparkwillprovide the needed buildings locations forthenextseriesofresearchbuildings.Whenthosefacilitiesareconstructedspacewillbeconstructed and set aside to accommodateresearch institutes and contract researchorganizations.

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BIOSCIENCEINFORMATICSPROGRAMATNORTHERNARIZONAUNIVERSITY–Inrecentyearstheamountofdata developed by bioscience research has grown exponentially. All industries are dealing with theonslaught of data. Many companies are successfully utilizing the data through the development ofinformatics capabilities. For the biosciences the researchers are spending as much time in front ofcomputers working with data as they do in the laboratory. Clearly informatics is a critical skill set andimportantifFlagstaffandArizonaistocompete.TheFlagstaffbiosciencesectoridentifiedinformaticsasoneof the main areas of support that Northern Arizona could provide for the long term success anddevelopmentof thebioscience industry.NorthernArizonaUniversityhasanexisting informatics capacitywithin specific research units and in the computer science program. However it does not have a formalprogramthatreachesalldisciplinesandspecificallyaformalbioscienceinformaticsprogram

Dr.BillGrabe,VicePresidentofResearchatNorthernArizonaUniversityhasmadetheimplementationofarobustinformaticsprogramsoneofhismajorpriorities.Asaresultin2014NAUpurchasedalargeclustercomputer,hirednationallyrecognizedinformaticsfaculty,setasideofficeandlabspaceforinformatics,andisbeginningthenewadvancedbioscienceinformaticsprogramfall2014.Also,FlagstaffMedicalCenterandNorthernArizonaUniversitywillshareresourcestoexpandtheHEALTHCAREINFORMATICSPROGRAMSthatwillservethehealthcareindustryandmedicalresearchprograms.

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2. FOSTER INDUSTRY COLLABORATION

BIOSCIENCE SECTORWORK – For a small communityand region, bioscience sector work that createscollaborationby thebioscience sector companies andorganizations,isakeyacceleratorforgrowth.Flagstaffhasstrongbiosciencepotentialifthebiosciencesectortakes intentional actions and creates a clear priorityfor investments. The bioscience sector developed thefollowing areas of priority and concentration. Theyalso have agreed to collaborate with the communityleaders and economic development leaders toimplementthistacticalplan.

DEVELOP OPPORTUNITIES AND REQUIREMENTS– Thisis the fundamentalsectorprocess.Eachcompanyandorganization outlines the potential/opportunities forexpansion and growth. They then agree what isrequired to insure that the potential/opportunity isrealized.

FOCUS ON THE CLUSTER CONCEPT/INCUBATE NEWBIOSCIENCE COMPANIES –When a sufficient densityandnumberofsimilarbioscienceentities locate inanareaagrowthspiralisstartedwhencompanies,workforce, entrepreneurs, capital, and research areattracted by the environment and potentialopportunity and success. The sector leaders haveagreed to work with their industry contacts andcolleaguestoencouragethemtoconsiderFlagstaff.Inaddition,theentiresectorwillsupportandencouragebiosciencestart‐upcompaniesthatwillbeincubatedatNACET. A work plan for each company will bedeveloped. In addition, ECoNA has committed tosignificantinvestmentandefforttobusinessattractionfocused on bioscience companies. The plan includesactiveengagementinthelargebioscienceconferencessuch as the BIO International, AZ Bio, and otherspecific industryconferences.Arecentfocushasbeentoarrangemeetingswithcontractresearch

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organizations, research institutes, and foreign biosciencestartupslookingforaUnitedStatesfoothold.Inaddition,ECoNA is developing a comprehensive database ofbioscience companies and organizations in the UnitedStatesforactiverecruitment.

GENERAL ECONOMIC DEVELOPMENT FOR THE REGION –This is another fundamental element of sectorwork. Theregion must continue a vibrant, competitive, robust, anddiverse economy that creates a high quality of life withstellar public assets such as schools, roads, libraries,businessincubators,parks,urbantrails,recreationcenters,and pools. Those communities that are successful increating the upward positive economic spiral have theresources and the quality of life that encourages growth,attractsnewcompanies,anddevelopsentrepreneurs. DEVELOP APPROPRIATE AFFORDABLE HOUSINGUnaffordablehousinghasbeenaprobleminrecruitingandretaining talented employees for the past 15 years. Thecause is a basic supply and demand imbalance.With thegrowthoftheArizona,theattractivemountainlifestyleforsecond home owners, limited land base, and economicdevelopment success in Flagstaff the market is notincentivized to produce affordable housing. The solutionsarenumerousandcanbe implementedwithacollaborateeffort of the entire sector. If the affordable housingproblem is not solved bioscience growth will be slowedsignificantly.Thetacticalplancallsforahousingsummittodevelop a specific set of actionable steps to providehousingrangingfromsubsidizedhousing,companyownedhousing, trust landprojects, smaller but highly functionalhomeswithuniquedesignelementsinneighborhoodswithamenities such as community pools, recreations centers,parks,andbiketrails. COLLABORATE WITH AND SUPPORT STATEWIDEBIOSCIENCEEFFORTS–TheFlinnFoundationBioscienceRoadmap has been the major force and driver of thegrowth of the bioscience sector this past ten years.Unquestionablycontinuedpoliticalsupport,educationandinvestment by Arizona’s leadership are required forsuccess in the next ten years. Flinn Foundation’scontinuingcommitmenttotheBioscienceRoadmapforthenexttenyearperiodwilldrivethefuture

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growth and success of the biosciencesin Arizona. Flagstaff and ECoNA hasbenefited greatly from thework of theFlinn Foundation and will support itsefforts by participating in the variouscommittees, events, and politicaladvocacy.

Arizona’s Bioscience Roadmap, a long‐term strategic plan originally commissioned by the FlinnFoundation in2002 andupdated in 2014with the goal ofArizonabecoming globally competitiveandanationalleaderinselectareasofthebiosciencesby2025.

Flinn Website Citation - “Arizona’sBioscienceRoadmap2014‐2025:AdvancingtheBiosciencesandImprovingHealthOutcomes”featuresfiveoverarchinggoals,17strategies,and77potentialactions.Thegoalsfocusonforminganentrepreneurialhub,turningresearchintopractice,developingbio‐

talent, connecting research with health caredelivery and commercialization, and enhancingthestate’s“collaborativegene”reputation.TheupdatedRoadmapplanwascompiledbytheBattelle Technology Partnership Practice basedon research and input from Arizona leaders inscience, business, academia, and government, aswell as national bioscience experts. Battelle alsoproduced the comprehensive study released in2002 that found Arizona possessedmany of theessential elements needed to become a globalleaderinnicheareasinthebiosciences,butmust

strengthenitsbiomedical‐researchbaseandbuildacriticalmassofbiosciencefirmsandjobs.Battelle has tracked performance data throughout the first decade, which was reported in theseannualbrochures. Infutureyears,metricswillcontinuetobecommissionedandreportedpubliclyby the Flinn Foundation. The Roadmap has been and will continue to be guided by Arizona’sBioscienceRoadmapSteeringCommittee,whichiscomprisedofabout100stateleadersinscience,business,economicdevelopment,andgovernmentthatmeetquarterly.HereisthevisionforArizona’sBioscienceRoadmap2014‐2025:“Arizona is globally competitive and a national leader in the biosciences in such fields as precisionmedicine,cancer,neurosciences,bioengineering,diagnostics,andagriculturalbiotechnology. Itexcelsinofferingadeeptalentbase,acriticalmassofentrepreneursandenterprises,andclinicalexcellencetoturndiscoveryintofirms,products,andtalent.”Arizona’sstatewideindustryAssociation,AZBio‐AZBIOWebsiteCitation‐iscommittedtoworkingwithitsmembersacrossArizonatosupporttheindustry.TheybuildthebiosciencesindustryinArizonabyprovidingaccesstothekeyresources,connectionsandinformationinArizona’sbiosciencescommunity.ThisprovidesthefoundationtobeabletoConnect,Collaborate,

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InnovateandSucceed;thussupportingthegrowthofathrivingeconomicenvironmentforArizona’sBioscienceIndustrytodayandinthefuture.AZBioistheStateAffiliateoftheBiotechnologyIndustryOrganization(BIO)locatedinWashington,D.C.andisacknowledgedassuchbytheinternationalbioscienceorganization,BIO.WeworkverycloselywithBIOonnationalissuesandopportunitiestobringArizonaandthemembersofourArizonaBioscienceCommunitytothenationalandinternationalstage.AZBioalsoworkswithAdvaMed,PhRMAandothernationalandinternationalorganizationstomoveArizona’sBioscienceIndustryforwardfaster. AteameffortisrequiredtosupportandgrowArizona’sentirebioscienceindustry,includingalltheindividuals,institutionsandcompaniesthatcompriseit,intoagreaterpositionofnationalandinternationalleadershipandprominence.Workingtogether,Arizona’sbioscienceindustryhasmadegreatprogresstowardattainingthisgoalinrecentyears.Arizona’sachievementsinbioscienceareasourceofgenuineprideforthestate.AZBiomajoractivitiesinclude:

ConnectionsacrossArizona’sgrowingbioscience,medicaldeviceandbioagriculturalcommunitiesthroughouttheState

ConnectionstoVentureCapitalandAngelResourcesaswellasdiscountsatkeyinvestmentconferencesnationwide

AUnifiedVoiceadvocatinglocallyandnationallyonkeyissuesthataffectourindustryandtheopportunitytoFlyIntoWashingtonDCaspartofanindustrywidecoalitiontomeetwithourlegislators

Committeeswhereyoucangetengaged:GovernmentAffairs,Workforce/Education,Outreach,Events

AshowcaseforyourcompanyviaAZBio.org,AZBioSignatureEvents,AZBioPartnerEventsandAZBioMediaRelationshipsaswellasnationalconferencesincludingtheBIOInternationalConventionandtheAdvaMedMedTechConference

EducationalEvents,EXPOsandstatewideAwards ExecutiveLeadershipDiscussionsonlocalandnationalissues DiscountsandSavingsontheproductsandservicesyourbusinessneedsviaBioBusiness

Solutions

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WeeklycommunicationssoyoustayIntheLooponwhatishappeningacrossourindustry RelationshipsandaffiliationswithBIO,AdvaMed,andPhRMA CollaborationwithbioscienceorganizationsacrosstheUnitedStatesaspartofouractive

participationintheCouncilofStateBioscienceAssociations

ECoNAandtheFlagstaffbiosciencesectorwillcontinuetobemembersandactiveparticipantsinAZBio.

3. EXPAND RESEARCH, INNOVATION, AND TRANSLATION

ResearchatNorthernArizonaUniversity,TGenNorth,Flagstaff Medical Center, WL Gore, DevelopmentEngineering Services, Protein Genomics, andPathogene creates hundreds of high paying jobs.Research, translationand innovationare thebasis forfuture bioscience companies. The powerhousebioscienceregionssuchasBostonandSanDiegohavea foundationof strong researchuniversities, researchinstitutes, and contract research organizations. Manyacademic studies have looked at the importance ofresearch to a region’s ability to grow a biosciencebasedeconomy.Theconclusionofthevastmajorityofstudies is that basic research by itself builds anecosystem that fosters growth of existing biosciencecompanies and encourages bioscience startups toform.Manystudiesgofurthertoshowthatwhenbasicresearch is matched with translational research andentrepreneurial researchers, thenumber,quality, andsuccessofbiosciencestartupsincreasessignificantly.

In addition, research partnerships drive biosciencegrowth. For example TGen North holds partnershipswith labs and researchers globally. They regularlyhave researchers from other countries traveling toworkinFlagstaffandviceversawithTGenresearcherstraveling to other countries. These partnershipsincrease the opportunity and potential for expansionof the existing organizations and also to attractpartnerstoestablishbranchesordivisionsinFlagstaff.NorthernArizonaUniversityresearchersalsotravel

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theglobeandworkwithinternationalandnationalpartnersonavarietyofprojects.

InECoNA’ s biosciencebusiness attraction efforts the fact that Flagstaff has a robust and active researchbaseprovidesthecredibilitytopursueadvancedbiosciencecompaniesandstartups.Also,Flagstaffsectorleadershavecommittedtocontinuetheirdriveandaggressivenessinpursuingresearchfundingwhetheritbegrants,sponsoredresearch,orcompanyR&D.Flagstaffleadersalsoagreetodeveloptheeco‐systemthatwillallowFlagstafftotakeadvantageofresearchopportunitieswhenpresented.

Thesectorresearchleadersarecommittedtoexpandingresearch and are developing and implementingindividualplanswithintheirorganizations forresearchexpansion. In many cases research expansion fortranslation to diagnostics, medical devices, medicaltreatments, health programs, clinical trials andhealthcareinformatics.

TGENNORTH – Plans to build BSL‐3 Laboratory thatwillgrowtheircapacitytocompeteforgrants.AlsotheBSL‐3 Laboratory will be made available to qualifiedprivatecompaniesandresearchinstitutesthatneedthissafety level facility. Also, TGen is planning to pursuemore sponsored researchprojects, continue to operateitsFDAcenterforfoodborneoutbreak,expandNAUresearchpartnerships,andhirenewstaff.

FMC RESEARCH DIVISION – Flagstaff Medical Center has added a research department and hired adirector.TheinitialresearchprojectisapartnershipwithNorthernArizonaUniversitythatisdevelopingaclinical studyon improving long termoutcomes forpatientswithchronicdiseasesandconditions.This isthe first of a series of planned research projects. FMCandNAUplantoseekothergrantopportunities

OPPORTUNISTIC RESEARCH ‐ Flagstaff researchentities have the commitment, capital, facilities, andpartners to take advantage of serendipitous researchopportunities.

NORTHERN ARIZONA UNIVERSITY – The ArizonaBoard of Regents have established metrics for theimprovement and expansion of research activity at allthree state universities. Northern Arizona Universityhas established a goal to double research expenditures by the year 2020. In addition NAU is investingheavily,inbioscienceinformaticswhichwasaneedidentifiedbythe

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sectorprocess.NAUhasadoptedaprovenmodelofaggressivelypursuingandrecruitingnationalresearchfacultywithhighresearchproductivitythatalsoattractotherresearchfacultytoworkincollaboration.

WLGOREMEDICALPRODUCTS –WL Gore continues to research and develop innovative newmedicaldevices.Theyhaveplanstointroduceseveralnewmedicaldevicestothemarketinthenextcoupleofyearswhichwill create theneed for additional plants and employees.WLGore is also interested in seeing theresearch infrastructuregrow inFlagstaff for thepurposeofexpanding thehighlycredentialedwork forceandjobopportunitiesfortrailingpartners/spouses.

PROTEIN GENOMICS/DEVELOPMENT ENGINEERING SERVICES – Protein Genomics and DevelopmentEngineeringServicescontinueexpandtheirresearchportfoliocreatingnewpolymerbasedwoundhealingandskinproducts.Theyareexpandingtheirmarketshareandplantoaddadditionalemployeesinthenextyear.

ECONA SECTORWORK – working with the Flagstaff bioscience leaders ECoNA will develop a researchfacility master plan. Major research facilities especially those with extensive laboratories require manyyearsofplanninganddevelopment.Inaddition,onceamajorlabfacilityisapprovedthereareseveralmoreyears fordesignandconstruction.It is importanttohaveamasterplanforthesector leaderstoutilize inconvincingowners,boards,andgovernmentsthatfacilitiesandfundingareneeded.

TECHNOLOGY TRANSFER, INNOVATION, INCUBATION

‘CREATING AND GROWING NEW BIOSCIENCE COMPANIES FROM RESEARCH INNOVATION AND TRANSLATION IS A PRIMARY GOAL FOR THE TACTICAL PLAN. ATTRACTING BIOSCIENCE COMPANIES TO ARIZONA WILL BE DIFFICULT AT BEST. HOWEVER, CREATING AND GROWING OUR OWN IS WELL WITHIN THE REACH OF NORTHERN ARIZONA AND FLAGSTAFF’

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TECHNOLOGYTRANSFER –The bioscience industrygrowth in Flagstaff will depend on starting newcompanies from the translated intellectual propertydevelopedbythebasicresearchconductedatallthreeArizona research universities, TGEN North, andcollaborating research universities connected to theregion through Northern Arizona University, TGEN,WL Gore, Development Engineering Services,Pathogene,andothers.

ECoNA’sroleistocreatetheprogramsandprocessestoencourageandprovide resources to thebioscienceentrepreneurs and investors. Also to connect withthose who are creating the translated intellectualproperty for the purpose of creating new biosciencecompanies.

In addition to connecting, ECoNA will also activelydevelop potential companies partnering with theregions business development assets, existingcompanies, and statewide bioscience partners. Thepurpose is to increase the creation rate for newcompaniesbydirectlydevelopingthestructure,andinsomecases theassets,ofapotentialnewcompany toassist bioscience researchers, investors, andentrepreneurs in startingbioscience companies. Thegoal istoput inplace10companiesoverthenexttwoyears.

Organizations in Flagstaff that are resources forcommercializationofresearchandIP:

NAUVENTURES

NAU VENTURES' OBJECTIVES To disseminate, for the public benefit, and through the use of

worldwide patent and copyright systems, new and usefulknowledgegeneratedbyNAUresearch.

To license NAU inventions to industry in order to promote thecommercial development of inventions toward practicalapplicationforthebenefitofthepublic.

ToutilizethevalueofNAUinventionstopromoteacultureofopeninnovationbetweenNAUandtheprivatesector.

NAU INNOVATIONS

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Toproviderevenueforsupportingfurtherresearchwhich,inturn,mayfacilitatethediscoveryofmorenewinventions.

Universitiescontributeinmanywaystothegrowingtechnology

andknowledge‐basedeconomy.Theygraduatethenext

generationofleadersforemergingindustries.Theytrainthe

specializedlaborforce–professionalandknowledgeworkers

necessaryfortheoperationoftechnologycompanies.They

createadynamicandintellectuallystimulatingsociety,which

attractsandretainsthatworkforce.

Universitiesalsoattractandconcentratesignificantamountsof

fundingtoconductscientificresearchinawiderangeof

areas(COGR,2).Thatresearchinturnleadstonewknowledge

whichispublished,andthatsharedknowledgeleadstonewproductsandprocessesforthemarketplaceaddingnewjobsthroughoutthe

economy.(COGR,2)

Thisdynamicinvolvementwithindustrycreatesnewdemandsontheuniversitytomanagetheseactivitiessothattheinstitution’s

primarygoalofeducationresearchanddisseminationofknowledgearenotcompromised,butratherareaugmented,withconflicts

minimizedandmanaged.Generally,thisisaccomplishedthroughthedevelopmentandimplementationofuniversitypoliciesgoverning

suchareasasscientificintegrity,conflictofinterestandintellectualproperty.

DEVELOPMENTENGINEERINGSERVICES

DES is a bioengineering firm with expertise in research,product development, business, marketing, and sales. Theirareasof focus include:pharmaceuticals,medicaldevices,andcell‐based therapies. They use a variety of researchapproachestosolveclients’needs.

Successfulproductdevelopmenteffortshavetakentechnologyfromthebenchtop to thebedside includingpatentclaimstructure, researchgrant funding,clinical trials,product scale‐up, and commercial distribution. We have experience managing teams responsible forclinical,regulatory,manufacturing,andpackagingofcommercializedbiomedicaltechnology.

NAUINNOVATIONS

NAUInnovationscatalyzes discovery and manages the transfer of researchoutcomes from the university to the private sector for the benefit of regional,national and global communities.Innovationsprovides resources and technicalassistance to NAU researchers from the earliest stages of IP development,helpingtobothgenerateanddisseminatecutting‐edgeresearchresultsthatcancompeteinthe21stcenturymarketplace.

NAU INNOVATIONS

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PrincipalObjectives

To encourage and enable NAU researchers todiscover and develop innovations that will havecommercial,researchandeducationalvalue

To licenseNAU inventions to industry inorder topromote commercial development and practicalapplicationforthebenefitofthepublic

ToutilizethevalueofNAUinventionstopromoteacultureof“openinnovation”betweenNAUandtheprivatesector

To generate revenue that can support the NAUresearchenterpriseandfacilitatethedevelopmentofinnovation

ARIZONAFURNACE

The Furnace Technology Transfer Accelerator is aninnovativestartupacceleratordesigned to form, incubateand launch new companies. Each company is created tolicense technology and intellectual property fromArizona’s premiere research institutions, in partnershipwith Dignity Health Arizona, NAU Innovations, ArizonaState University’s Entrepreneurship & Innovation Group,Thunderbird School of Global Management, Mayo Clinic,and BioAccel. Furnace is an intensive, nine‐monthaccelerator experience for startups that provides seedfunding, office space,and access to top industrymentorsto commercialize discoveries made inArizonalaboratories.

TGENNORTH

TGen North has ongoing collaborations withbiotechnology companies and healthcareinstitutions whichwill help speed the translationofoutcomesofbenchresearchtoclinicalpractice.

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M P L A N T A B L E M E D I C A L D E V I C E S G E N E T I C S R E S E A R C H C L I N I C A L T R I A L S A N D


N E U R O S C I E N C E S S E R V I C E S G E N O M I C S S T E M E D U C A T I O N B I O S C I E N C E P R O D U C





4. INCREASE PRIVATE AND PUBLIC INVESTMENT

Flagstaffhasbeenactiveingarneringinvestmentsinthepast10yearswithnearlyabilliondollarsinnewfacilities, venture capital, angel capital, SBIR grants,Federal, State, and local grants to support thebiosciencesintheregion.Theseinvestmentsarecoreto the ability of the region to compete in themarketplace. Going forward the investment strategyand sources of investmentwill determine the speedat which the bioscience sector can grow. Many ofregions bioscience leaders feel strongly thatinvestment strategy has reached a point in acompetitive marketplace that propriety isappropriatewhereallowed. Henceourdiscussioninthis report will be somewhat limited on specifics.CertainlythespecificplansareavailabletotheFlinnFoundationstaffandtospecificfunders.

The Flinn Foundation Bioscience Roadmap and thebioscience sector work in the region provided theinvestmentstrategy.Theregionsindustryandpublicsectorleadersarecommittedtodevelopingstrategiesandinvestmentmodelsthatacceleratetheinvestmentfundstogrowthebioscienceleaders.

Certainly investments are somewhat driven by thelargereconomy,businesscycles,healthoftheState’seconomyandsubsequentimpactontheresourcesofgovernments.Notwithstandingthelargerdriversthistactical plan will continue to purse with non‐profit,government,andprivateresourcesinvestmentinthebase infrastructure, research, and jobs to continuethegrowthofthebiosciences.

The bioscience investments in the region goingforward will be diverse and accomplished by anumber of Flagstaff companies, Federal and Stategovernments, industry organizations, foundations, and non‐profits. They will include investment ininfrastructure, new jobs, and in research and development. These Flagstaff entities have made thecommitment toaccelerate thescaleand frequencyof their investment.ECoNA iscurrentlyworkingwitheachentitytodevelopatwo,five,andtenyearinvestmentplan.

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With the regions potential and opportunitywe expect that the following areas of investmentwill be theprioritiesandsourcesforfutureinvestmentsintheregion:

BusinessAttraction–ECoNAanditsmemberagenciesareworkingtoattractnewbiosciencecompanies,contract research organizations, research institutes who will invest capital and create new jobs for theregion.

TheArizonaCommerceAuthority–Biosciencebusinessattraction,innovationfunds,directinvestmentsininfrastructure,businessincubation,taxcredits,technicalassistanceforexistingbusinesses.

AngelandVentureCapital‐Biosciencestart‐upsinFlagstaffhavereceived$100 million in capital over the past five years. ECoNA, NACET, NAU andothers are working to expand the angel and VC networks. We havedevelopedaproprietaryworkplanfor2015tobuildandexpandontherelationshipswithangelsandVCoutsideofArizona.

FlagstaffChamberofCommerce ‐ Developingandinvesting inabusinessmentoringprogramthatwillallow bioscience startups and existing companies access to sophisticated credentialed and professionalmentors such as patent attorneys, CPA’s, sales and marketing professionals, finance and investmentprofessionalsatnocost.Inaddition,theChamberisparticipatinginNorthernArizonaBusinessCapitalFunddesignedtoprovidegrowthcapitalforbiosciencecompanies.

FederalGovernment–Researchgrants,EDAloanfunds,technicalassistance,SBIRGrants–Workingwithourpartnerswewilldevelopaspecificplanwithcommitmentsfromeachsectormembertoapplyandseekcertainfederalfunds.

StateGovernment–ECoNAandthebiosciencesectorpartnersaresupportingtheUniversitiesrequesttothe legislature for $1.0 billion research infrastructure funding now called the Research II bill. The firstresearchbillpassedin2004provideddebtservicetotheuniversitiestobond$500milliontobuildresearchfacilities. A recent study by ASU demonstrated that the return on investment was an initial Gross StateProduct(GSP)of$1.5billionandanexpected$300millionGSPgoingforward.ThestudyalsosuggeststhattheconstructionprojectsandtheresearchactivityfromtheResearchIIisforecastedtoproduce$3billioninnewGSPintheperiodFY17toFY21andproduce$480millioninannualGSPinthesubsequentyears

Private – Company capital and borrowing for expansion and growth, venture capital, angel capital, anddirect funding. For exampleWLGore is investing inFlagstaffwithnewplants andadditional jobs.PrentCorporationhasexpandeditsmarketshareinAsiaandSouthAmericaresultingininvestmenttoexpandthemanufacturingfacilityandaddnewjobs.NorthernArizonaBusinessCapitalFundloansfundstobiosciencegrowth companies. ECoNA is workingwith its member agencies in the work of business expansion andretentiontoassistingrowth.Inaddition,ECoNA, inconjunctionwiththeprivatesectorcompaniesandpublicbioscienceorganizationshavedevelopedaproprietary2015investmentplan.

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Major Community Investors – Building the bioscience sector has been and will continue to be acollaborative of the major investors in the community concerned about creating a robust and resilienteconomyandqualityoflife.Theirinvestmentsareoutlinedinthistacticalplan.Futureinvestmentswillbeoutlinedinthe2015and2016tacticalplansdevelopedundertheleadershipofECoNA.GoingforwardthemajorcommunityinvestorsaretheCityofFlagstaff,FlagstaffMedicalCenter/NorthernArizonaHealthcare,WLGore,NorthernArizonaUniversity,TGENNorth,Flagstaff40,CityofFlagstaff,NestlePurina,FlagstaffChamberofCommerce,CoconinoCounty,andArizonaCommerceAuthority.

5. CREATE A COMPETITIVE AND HIGHLY TRAINED WORKFORCE

Flagstaffenjoysanamazingqualityof life inabeautifulsettingwithamenitiessuchasamajoruniversity,urbanscalemedicalcenter,communitycollege,greatemployers,astronomicalobservatories,aworldclasssymphony,robustandactivearts,andoutstandingpublicschools.This isgood forattractingthetalented,highly credentialed work force to Flagstaff. In addition, Flagstaff is fortunate to have Northern ArizonaUniversity,CoconinoCommunityCollege,FlagstaffPublicSchools,andCharterSchoolsallhighlyregardedfortheirexcellenceandnationalreputations.Theyarethepipelinetoproducethecompetitiveandhighlytrainedworkforceintheregion.

Many of employers also require talent and highly credentialed professionals that cannot be found in theregionorState.WhenagoodpositionisavailableinFlagstaffexperiencedpeoplewithdeepresumesfromaround the country tend to apply for those roles. Once again a good thing for Flagstaff employers.UnfortunatelyforFlagstafftherearechallengesthatpotentialemployeesfacewhentheyconsiderworkinginFlagstaff.Thechallengesincludedifficultyoftrailingpartner/spousefindingjobsintheirfield.Thereisatendency for the partner/spouses to also be professionals.While Flagstaff has a very high proportion ofprofessional and high quality jobs for trailingpartners/spouse,theeconomyhasnotproducedenoughofthesetypesofjobstokeeppacewiththejobsneeded.A secondary challenge is the high cost of housing inFlagstaff.Thebiosciencesectorleadershiphasidentifiedsolving these two issues as requirements for theirsuccess.ECoNAhasadoptedthesolutionoftheseissuesasamainfocus.

NORTHERN ARIZONA UNIVERSITY – has nearly tripledthe number of STEM graduates in the past five years.Biosciencerelatedmajorsarethevastmajorityof

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the STEMgraduate growth. The universities plans include continued growth of biosciencemajorswith asignificantfocusongenetics,genomics,andbioinformatics.

In addition, NAU in partnership with UofA, has created Physician Assistant, Occupational Therapy, andPhysical Therapy programs at the PhoenixBio‐Medical Campus (PBC) . NorthernArizonaUniversity justcompleted renovating shell space in the PBC to accommodate future plans to increase the number ofnumberandsizeofthecohortsdoublingthenumberofgraduatesfromtheseprograms.In2015NAUwillopenanewfacilityontheFlagstaffcampusthatwillallowthealliedhealthprogramsonthemaincampustoexpand.

Lastly, Northern Arizona University has been nationally recognized for innovative programs that haveallowed undergraduate research students research experience normally reserved for graduate students.Many undergraduate research students are publishing papers, engaging in sophisticated research, andcreating new patents and discovery. This researchexperience is putting NAU students in favorablepositiontocompeteforthemostprestigiousgraduateschool research programs. NAU continues to expandthe undergraduate research program as fundingallows.

COCONINO COMMUNITY COLLEGE – Has developed areputation for innovative programs that increase thenumber of STEM related majors and studentsmatriculating from community college to theUniversity.The ‘CCC2NAU’programwasafirstof itskind in the country. CCC studentswere automaticallyenrolled at NAU with full access to NAU facilities,dininghalls,residencehalls,andathleticevents.

In addition, CCC has been flexible in designingprograms to serve the needs of the bioscienceindustry. For exampleCCCdesignedanon‐traditionalcurriculum and course sequence for WL Goremechanical and electrical engineers to learn humananatomy and physiology. CCC continues to producehigh quality nurses for Flagstaff Medical Center andskilled trades for the medical device manufacturers,healthcareorganizations,andeducationinstitutions.

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BIOSCIENCESECTORWORKFORCEDEVELOPMENTINITIATIVES:

SKILLS FOR WORK PLACE SUCCESS – Developed by the Greater Flagstaff Chamber of Commerce incollaborationwiththebiosciencecompaniesandorganizationsinFlagstafftobringmiddleschoolandhighschools students into thework place for hands on learning andwork place experiences. The intent is tointereststudentsinbiosciencecareers.

ADVANCEDMANUFACTURING SECTOR EXCELLENCE – A comprehensive program to improve the regionsadvancedmanufacturingsector including thebiosciencemanufacturerswithamajor focusonwork forcedevelopmentandSTEMeducation.

STEMCITY–Flagstaffhasdeclareditselftobe America’s first STEM City. Thisdeclaration, while self‐proclaimed, is aserious statement to the biosciencecommunity statewide and nationally thatFlagstaffsee’ssignificantvalue increatinga STEM intensive community. Thisinitiativeispromotedbyacoalitionofthecommunity leaders and majororganizations to insure that thecommunity was intentional in makinginvestment and support for developinginnovative and cutting edge STEMopportunities for Flagstaff students.Bioscienceindustryemployeeswillbenefitfrom unique opportunities their childrenwillhavelivinginanSTEMCity.

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6. DRIVE STARTUP INCUBATION AND ACCELERATION

CREATING AND GROWING NEW BIOSCIENCE COMPANIES FROM RESEARCH INNOVATION AND TRANSLATION IS A PRIMARY GOAL FOR THE TACTICAL PLAN. ATTRACTING BIOSCIENCE COMPANIES TO ARIZONA WILL BE DIFFICULT AT BEST. HOWEVER, CREATING AND GROWING OUR OWN IS WELL WITHIN THE REACH OF NORTHERN ARIZONA AND FLAGSTAFF.

CONTINUE THE EXPANSION AND GROWTH OF THENACET

TheFlagstaffBioscienceSectorleadershiphasmadeasignificantcommitmenttocreatingtheassetsthatwillsupportanddevelopnewbiosciencecompanies.Overthe past five years $10 million has been invested to build andoperate the Northern Arizona Center for Entrepreneurship andTechnology, abioscienceand technologybusiness incubator.Thegoal of the tactical plan is the expansion of the incubator,continued investment, and creation of five new biosciencecompaniesoverthenextyear.

GROWTHEAZCORELABEQUIPMENT

CoreLabswerecreatedtoprovidebiosciencestartupsaffordableaccesstoexpensivebutessentiallaboratoryequipment.SincethecreationofAZCoreLabsthesystemhasexpandedfromNACETtootherlocationsinthestate.TheCoreLabhasimportantequipmentforbiosciencestartups.Forexample electron scanning microscopes, supercomputer access,Molecular Devices, VMax Plate Readers, High Resolution DigitalMicroscopes, and DNA Sequencers. The tactical plan calls foradditionalinvestmentstoexpandtheequipmentavailable.

ECoNA’s Role is to assist in the process to start new businesses by bringing researchers, IP, capital , and entreprenuers together.

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EXPAND NORTHERN ARIZONA UNIVERSITIES STARTUP WEEKEND AND LAUNCHBOX STUDENTINCUBATOR.CREATEABIOSCIENCEFOCUSEDSTUDENTINCUBATOR.

Northern Arizona University in collaborationwith NACET operates several key business startupprograms designed to encourage, engage, and support students in creating startups. While amajority of students attending the university will become employees a percentage will becomeentrepreneurs who start bioscience startups. These programs have had significant success nowwithatrackrecordofseveralhundredstudentsstartingsometypeofbusinessincludingahandfulofbiosciencestartupattempts. Aportionof thestudentstartupsareselectedfor investmentandincubationintheon‐campusstudentbusinessincubator.Thegoalofthetacticalplanistogrowthebiosciencerelatedbusinessopportunitieswithstudententrepreneurs.

7. SUPPORT INDUSTRY GROWTH TO ACHIEVE CRITICAL MASS

Critical Mass Flagstaff and Arizona have great potential for growing and sustaining a robust and diverse bioscience economy. Under the leadership of the Flinn Foundation, through the strategic process of the Bioscience Roadmap, Flagstaff and Arizona have built the foundation upon which acceleration of the growth of the bioscience economy is realistic and possible. Following the example of cities and regions with a strong and thriving bioscience industry such as Boston, San Francisco Bay Area, and San Diego Flagstaff must utilize the resources and support provided in the next ten years of the Bioscience Roadmap process to create, as fast as possible, the density and activity level needed to reach critical mass that will kick-start the growth spiral. The experience of other successful bioscience regions show that the number and size of existing bioscience companies and organizations, research institutes, bioscience startups, university

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research, tech transfer, attracted bioscience companies, capital, and available sophisticated workforce must reach a density that then begins to attract like and build upon itself. Flagstaff has benefited over the years from the Flinn Foundation Arizona Bioscience Roadmap project. It has provided clear direction and a model for collaboration for the entire state. Clearly the future success of the biosciences in a State like Arizona is predicated on the continuing collaborative effort and significant public and private investment.

BIOSCIENCESECTORPROFILES–COMMITMENTTOEXCELLENCEANDGROWTH

Flagstaff is a small community of 65,000 with a unique geographic location located among thecountry’smostbeautifullandscapesandnationalparks.However,itisalsorelativelyisolatedfrommajor cities and the associated resources. Therefore the tools and techniques to grow thebioscienceindustryreflectFlagstaff’suniquecharacter,location,andchallenges.

ECoNAandsectorleadersareacutelyawareoftheirroleandresponsibilitytogrowtheindustrytoachievecriticalmass.WhileFlagstaff is fortunate tohavesophisticatedcompanies,organizations,and talents it also recognizes the larger competitive environment with disruptive technologies,global access, business cycles, evolving regulatory requirements, risk, andbusiness climates. Thesectorleadersalsorealizethattheindustrymustengagetogethertomaximizeopportunitiesandbeintentionally focused on its state, national, and international connections and resources.ECoNAwill continue topromote, convene,organize,anddirectlymanageprograms to insure thesuccessofthesector.

EXPECTEDGROWTHINTHEINDUSTRYIN2014

WLGORE

http://www.goremedical.com/productsbycondition/

Developsandmanufacturersmedicalimplantablesfortheseconditions:

Abdominal Aortic Aneurysm (AAA)

Abdominal Wall Reconstruction

Atrial Septal Defects (ASD)

AV Access & Dialysis

Biliary Disease

Cardiac

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Cardiovascular Disease

Carotid Artery Stenosis

Cerebral Infarction

Cerebral Spinal Fluid Leakage

Colon Disease

Embolic Protection

Heart Defect

Hernia

Intracranial Hypertension

Lung Disease

Obesity

Peripheral Disease (PAD) (PVD)

Portal Hypertension & Liver Disease

Spinal Disc Disease

Stroke

Thoracic Aortic Aneurysm (TAA)

Trauma

Specialty

Bariatric Surgery

Cardiovascular

Colorectal Surgery

Endovascular and Interventional

Gastroenterology

General Surgery

Hernia

Interventional Cardiology

Interventional Radiology

Neurosurgery

Pediatric Cardiovascular

Peripheral Disease (PAD) (PVD)

Spine Surgery

Thoracic Surgery

Vascular Surgery

WL Gore expects that over 500,000 of theirproductswillbeimplantedinpatientsthisnextyear. They are a $3 billion dollar a yearcompany.WL Gore states that over the historyofthemedicaldivision35millionproductshavehavebeen implanted.Theyexpect tobuildnewplantsandhirenewpeopleinthenextyear.

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NORTHERNARIZONAHEALTHCARE(NAH)

ServesasthemajorhospitalsysteminNorthernArizonaandthe regional referral center with the only level 1 traumacenter outside of Phoenix and Tucson. It boasts all of thespecialties of amajorurban system.Because the land areaNAHcoversislargetheymaintainafleetofeightfixedwingaircraft and eight helicopters. NAH is expanding this nextyearwithanew facility inCampVerde.NAHalsomanagesseveralothercommunityhospitals,clinics,andprimarycarefacilitiesinruralunderservedareasofNorthernArizona.

Because of the changing dynamics in healthcare and thestrength of the NAH system it anticipates growth throughacquisitionandbuildingnewmodernhealthcarefacilitiesinregionsnotnowserved.Asaresultofsystemexpansionjobgrowthisexpected.

PATHOGENE

Pathogene isa localbiosciencestartupcompanyutilizing IPlicensed fromTGEN.Pathogenewasacquired thispastyearby DxNA. ECoNA is in negotiations with DxNA to expandPathogene and their research arm to the Innovation MesaBuilding.

FLAGTAFFMEDICALCENTER

WithintheNAHsystemFlagstaffMedicalCenteristhelargestmedicalcenterholdingthelevel1traumacenterdesignationand providing the services normally expected at a majorcomprehensive urban medical center. Because ofconsolidation and mergers in healthcare organizationsarising from the dynamic healthcare environment, evolvingtechnology, andagrowingpartnerships there is significantstructuralchangeoccurringatFMC.

FMC is planning for growth in the next several yearsresultinginnewhealthcarejobstoFlagstaff.

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PROTEINGENOMICS

AFlagstaff based bioscience Start‐up CompanyProteinGenomicsrevenueisgrowingwithmarketacceptanceofits products. They will be one of the first tier twocompanies to move into the Innovation Mesa oncecompleted summer 2015. They are expecting to addapproximately10jobsthisnextyear.

DEVELOPMENTENGINEERINGSERVICES

A Flagstaff based bioscience start‐up DevelopmentEngineeringServicesrevenueisgrowingwithexpansionof their clientbaseandservicesprovided.Theywillbeone of the first tier two companies moving intoInnovationMesa.DEShiresanumberofNAUgraduatestudents. They expect to add additional employees inthenextyear.

SENESTECH

A Flagstaff based bioscience start‐up utilizing IPdeveloped at Northern Arizona University and severalother cooperating universities. Senestech is

experiencing significant growth andrecentlysignedamajorlicensedealwithNeogen.ThispastyearSenestechbuiltanew manufacturing facility. Senestechalso received national press in the NewYork Times, Wall Street Journal,

bloomberg,LosAngelesTimes,DiscoveryChannel.Theyexpect continued growth and will be adding newemployeesinthenextyear.

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PRENTCORPORATION

Prentisapackagingsuppliertothemedicalindustry.WLGore isoneof their customers.Thispastyear theplantmanager for Prentwas promoted to Vice President forOperationsfortheentirecompanybutwillremainbasedin Flagstaff. In the past year Prent has had success ingrowing market share in Asia and South America andwill need to ramp up production to serve the newcustomers. The expanded production and facilities willbeinFlagstaffresultinginnewjobs.

MACHINESOLUTIONS

MachineSolutionsbeganasastart‐upinFlagstaffalmost15 years ago. They design and engineer sophisticatedmachines for the medical device industry. Over itshistorytheyhavegrowntoover75employees.Lastyearventure capital group Forsyth Capital invested inMachine Solutions. The past year saw a reduction inworkforcewithefficiencymeasuresbeing implemented.Going forward though Machine Solutions expectscontinued growth and is hiring engineers andmachinebuilders in the next year. The long term outlook ispositive.

NORCHEM

Norchem is Flagstaff based start‐up and has grown tooneofthelargerproductionlaboratorycompaniesintheindustry providing services primarily in the area ofsubstance abuse testing. Their customers arenationwide. They continue to innovate creating noveltesting protocols and technology. Norchem hascontinued to expand their market share and expectcontinuedgrowth.

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Flagstaff 2014 Bioscience Plan

Documents

Transcript of Flagstaff 2014 Bioscience Plan