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"This article contains forward-looking statements that involve numerous risks and uncertainties." Anyone who has ever read a press release from a biotechnology company, or any other high-tech, has seen this Securities and Exchange Commission-inspired disclaimer. But industry projections that have nothing to do with revenue contain very forward-looking statements about the growth in employment in San Diego’s biomedical industry.
A skilled work force has become a political and economic issue. "We are in a race to provide qualified workers to California's new industries," declares California Controller Kathleen Connell, who in a recent report highlights the need for high-tech workers to drive the state's growing economy. "This is a race against the time when the absence of these workers has serious negative consequences for California's economic competitiveness and growth."
Prospects for the industry's growth, however, do contain some uncertainties. Companies do encounter problems getting products approved by the Food and Drug Administration, which delays profitability and expansion. Other states are competing heavily to attract the manufacturing business of companies that have done all of their research and development in California. The lack of an adequate, skilled work force is another threat. All of these issues are relevant to San Diego’s biomedical companies, but none more so than the need for a broad array of talented people.
"We need all kinds of people, across the spectrum," says Kenneth Widder, chairman of Molecular Biosystems Inc., a company that specializes in the development and commercialization of ultrasound contrast imaging agents. "We have been doing our own training at the technician level, but we welcome the introduction of training programs that would fulfill our needs."
California is the world leader in biomedical innovation. The state is home to one third of the biotechnology companies in the country and 28 percent of high-tech medical device and diagnostic firms, reports the California Healthcare Institute, a statewide, nonprofit, public policy research and advocacy organization.
In San Diego County alone, about 240 bioscience companies have set up shop, and more than 40 products are in late-stage development. San Diego has the fastest-growing industry cluster for biosciences in the country, employing in excess of 20,000 people.
A survey conducted by three organizations — the San Diego Regional Economic Development Corp., Biocomm and PricewaterhouseCoopers — found that demand over the next five years from all respondents could exceed 1,700 technicians. The survey was mailed to 240 biomedical companies in San Diego County and returned by only 85. So the number of technicians needed could be even greater.
These are important jobs. A study by the California Healthcare Institute and KPMG Peat Marwick shows the average annual salary for a health care technology professional surpassing $50,000.
Efforts are under way to ensure that San Diego can supply the talent necessary to keep biomeds in the region as they move into manufacturing. In every case, industry leaders have worked with educators to determine the specific needs and relevant skill sets.
Joan Stepsis is dean and director of
San Diego City College's Center for
Applied Competitive Technologies,
where students receive hands-on
technical training.
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Last year Connell launched an industry-community college partnership program to team private sector companies with community colleges to help create new programs based on new skills. The five partnership teams identified job needs, began development of new curricula, identified fiscal needs and defined the obstacles for colleges in developing new training programs in a rapidly changing industry environment.
As one of the five partnerships, San Diego City College's Center for Applied Competitive Technologies was designated California's Bioscience Workforce Development Center. Last month, Connell announced the expansion of her sponsorship of the industry-community partnerships.
"Being designated helped us gain credibility with industry and gave us leverage to raise federal and state funding," says Joan Stepsis, dean and director of the center. So far the center has raised $750,000 for training programs and $250,000 in donated equipment.
"The research and development laboratory tech program is established and successful," says Stepsis. "We are now going to the next phase which is bioprocessing, or small-scale biomanufacturing." The lab tech programs consist of a number of academic prerequisites which prepare the student for a "capstone" laboratory course taught by industry professionals. Thirty-five students are taking the prerequisites for the course set to be offered for the first time in January.
Interestingly, half of the students in these lab-tech programs already hold bachelor's degrees. "A significant amount of 'reverse transfer' is going on," says Stepsis. "Without the hands-on technical training the students are not attractive to industry."
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Following the same path of development as industry, the programs at San Diego City College eventually will expand to include large scale manufacturing, quality assurance and quality control, and biomedical equipment service and support.
However, the future need for workers should not overshadow the immediate need for skilled workers in the biomedical industry. Lisa Kanetake, manager of human resources at La Jolla-headquartered Agouron Pharmaceuticals, sees a growing need for clinical research professionals. When Kanetake arrived at the company four years ago, four people worked in the clinical research area. Now there are 125, with 30 positions open.
Clinical research involves a number of different skills, ranging from the monitors who work directly with the doctors administering the drugs in the trial, to professionals who collect the data and perform analysis, to doctors who serve as medical directors for the trials. Agouron was the first San Diego company to win FDA approval for a drug, Viracept, which is a protease inhibitor for treating HIV infection.
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As manager of human resources at Agouron
Pharmaceuticals, Lisa Kanetake has observed
extensive growth in the number of clinical
research positions.
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For companies like Agouron, continuing education efforts provide employees with updated skills and a means of advancement. "Eighty percent of our students are already working in the industry," says Derry Connolly, director of the department of engineering, science and environmental studies at UCSD Extension. "Most students are lacking a specific skill or are looking for career advancement."
This fall three new specialized certificate programs will be offered at UCSD Extension: Manufacturing Fundamentals for the Drug and Biologics Industry; Quality Assurance for the Drug and Biologics Industry; and Regulatory Affairs for the Drug and Biologics Industry. UCSD Extension's fall career day will feature "Focus on Biotechnology and Healthcare Industries in San Diego’s New Economy," on Sept. 16, starting at 4 p.m.
The forward-looking statements about employment growth in the biomedical industry in San Diego do contain risks and uncertainties. To wit:
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Derry Connolly of UCSD Extension says students
are looking to pave the path to advancement.
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- San Diego’s Advanced Tissue Sciences (ATS) suffered a setback in June when the FDA did not give its long anticipated approval for use of their Dermagraft product in the treatment of diabetic foot ulcers. Recently, a new agreement was reached that could put the approval back before the agency as early as next year. Still, it was a disappointing delay for ATS and a postponement of a larger work force.
- IDEC Pharmaceuticals' Rituxin, a treatment for non-Hodgkin's lymphoma, was approved by the FDA in November 1997. The San Diego company has begun marketing the drug and is evaluating where to locate a $100 million manufacturing facility. San Antonio, Texas, is pursuing IDEC, offering free land and showcasing its lower labor rates and cost of living.
And recruiting the right employee can be expensive. Agouron is using search firms to fill open positions in its clinical research programs. Using a headhunter can cost 25 percent of the employee's annual salary.
Augustine Gallego, chancellor of the San Diego Community College District, says that for some biotech companies, "the decision to remain in San Diego and build production facilities in the region may hinge on work force issues. Since both the cost and availability of land and water in the county are factors that work against keeping biotech manufacturing, the availability of a specialized technical workforce gains greater importance as a counter-balancing factor."
You've been warned, and informed. The beaker's on your bench.
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