Bioscience is taking root in the state, but how well it grows over the next six years will make all the difference in deciding whether Arizona will lead in the field, or just play follow-the-leader.

Speaking at the latest update of the 2002 Bioscience Roadmap, Walter Plosila, Battelle vice president, said the plan they wrote continues to point the way, and the state’s government, industries and educational institutions are keeping on the path it established.

He said Arizona’s biotechnology industry is meeting and exceeding expectations that were laid out four years ago in the Arizona Bioscience Roadmap, a 10-year plan to boost the state as a national competitor in the biosciences.

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It was put together by the Battelle Technology Partnership Practice.

“Arizona is well on its way to achieving the 2007 midpoint goals set back in 2002,” Plosila said.

Major progress achievements this year were: the creation of the Science Foundation Arizona; legislation creating the Arizona 21st Century Fund and $50 million committed for Piper Chairs in personalized medicine.

Science Foundation Arizona is a collection of statewide business leadership groups, including the Southern Arizona Leadership Council, that create and fund a new nonprofit organization to build and strengthen scientific, engineering and medical research programs in Arizona, according to a progress report from the Flinn Foundation.

The 21st Century Fund is the result of a proposal by Gov. Janet Napolitano. The legislature established the fund that appropriated $35 million to support Science Foundation Arizona.

The $50 million committed by the Virginia G. Piper Charitable Trust pledged the largest gift in state history to advance biomedical research. It was given to recruit 10 world leaders in personalized medicine to Arizona, according to the report from the Flinn Foundation.

Arizona also showed consistent growth in five key performance measures over the four-year span, according to Plosila: federal grants, jobs, wages, start-up firms and venture capital.

Research grants from the National Institutes of Health, the “gold standard” of scientific research grants, grew 30 percent from 2002 to 2005 compared to 21 percent by the nation’s top-10 states in this category. “Total grant funding after 2005 represented 82 percent of the roadmap’s 2007 target,” Plosila said.

Bioscience jobs in Arizona have increased 16 percent as well as bioscience wages have increased 13 percent.

Spin off companies out of the universities totaled two in 2002. Since then, there have been a total of 33 bioscience-related firms created.

Venture capital exceeded expectations from 2002 to 2005 when Battelle called for $100 million to be achieved by Arizona-based firms and $118 million was realized. However, in 2006 the numbers aren’t looking as good in this area, Plosila said.

“These numbers turned out how they did because of the hard work that you have done,” Plosila said to those present at his presentation.

Martin L. Shultz, vice president of Pinnacle West Capital Corp. and chair of the 75-member steering committee that oversees roadmap implementation is excited about the progress that has happened and what he sees around the state.

“Beyond the data and technical details of this study, there is a growing acknowledgement that the biosciences are taking root in Arizona. With it, comes a better quality of life for Arizonans n a more diversified 21st-century economy that can weather the inevitable dry spells, plus local access to the latest innovations in healthcare,” Shultz said.

“The prognosis is excellent, though, Arizona has its work cut out for it over the next six years,” Plosila said.

For 2007, the group identified three key priorities to accomplish: translational research, wet-lab space and capital formation.

“Considerable work remains in generating investment in early-stage companies, building commercial wet-lab space and creating a critical mass of bioscience firms while continuing to grow the bioscience research and development base in an environment of increased competition and limited federal funding,” Plosila said.

However, he believes the progress shows that the state is up to the task.

E-mail comments for publication to editor@azbiz.com. Contact Joe Pangburn by e-mail at jpangburn@azbiz.com or call (520) 295-4259.

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