Oklahoma City Economic Development Foundation EDA -HDQ ...

Oklahoma City Economic Development Foundation

EDA-HDQ-ARPBBB-2021-2006976

1.0 Oklahoma City's Vision for a Regional Biotech Growth Cluster Oklahoma City, and the surrounding Capital Area Economic Development District of Oklahoma (CAPEDD), have worked to build a regional biotech growth cluster for decades. The region now supports over 51,000 workers and annual revenues of more than $6.7B. More than $40B in value has been created through blockbuster assets generated by University of Oklahoma (OU) and Oklahoma Medical Research Foundation (OMRF) researchers, including Alexion Pharmaceuticals' drug Soliris?. However, the absence of a fully harmonized biotech ecosystem, along with key infrastructure and focused support programs, has historically resulted in value leakage, with these assets being acquired, developed, and marketed by out-of-state companies and investors. By harmonizing key pieces of product development--R&D, production, and clinical trial management-- in a uniquely positioned, low-cost geography, Oklahoma will build upon these strengths to create a holistic ecosystem and the workforce to sustain it.

Led by the Oklahoma City Economic Development Foundation (the Foundation)-- and supported by the Association of Central Oklahoma Governments (ACOG), the Oklahoma Secretary of Science and Innovation, the Oklahoma City Innovation District (OKCID), i2E, the City of Oklahoma City, the City of Norman, Norman Economic Development Coalition (NEDC), OU, OMRF, Oklahoma State University (OSU), Prairie One Solutions, and numerous additional government, community, and industry stakeholders--this coalition proposes to ignite and scale the Oklahoma Biotech Innovation Cluster (OBIC) through the Economic Development Administration's Build Back Better Regional Challenge. Led by the OBIC Regional Competitiveness Officer, the Greater OKC consortium will plan and implement various initiatives that address key goals of the ACOG CAPEDD Comprehensive Economic Development Strategy, Oklahoma's 2021-2026 Science and Innovation Strategic Plan, OU and OSU's Strategic Plans, and NEDC's Strategic Plan to foster economic growth and resilience. Increasing the ratio of traded-to-local economic clusters, along with a focus on biotechnology, workforce development, equity, and innovation, are key elements within each of these strategies.

OBIC leverages existing Central Oklahoma assets to address persistent challenges plaguing the global biotech industry. As just one example, by 2024 clinical drug substance manufacturing capacity is projected to have a supply-demand gap of nearly 2x. As new capacity is built overseas, in markets like China, developers routinely face 18?24-month delays that burn capital and slow commercialization. Top global pharma companies have also gradually outsourced what was once their core strength, with over half of their R&D pipeline now generated externally.

Through coordinated and comprehensive investments in infrastructure, workforce, entrepreneurship, and planning, OBIC will boost the competitiveness of regional biotech service providers to immediately support the global biotech industry in overcoming these challenges. By scaling-up the density and quality of existing cluster assets, OBIC will also make the cluster more favorable to future research and startups originating within the region. OBIC will create a frictionless, equitable biotech supercluster along a 70 mile stretch of I-35 connecting Norman, Oklahoma City, and Stillwater, OK, where industry and entrepreneurs can design, make, test, and iterate without value leakage and added cost.

Oklahoma City Economic Development Foundation

EDA-HDQ-ARPBBB-2021-2006976

2.0 Economic Opportunity of the Regional Growth Cluster New biological capabilities are fundamentally transforming the pharmaceutical industry, which is expected to exceed $1.1T by 2024, with an increasing share driven by biological medicines. These new-era medicines, due to the complexity and brain-sharing required across the value chain to develop them, are expensive to bring to market. Furthermore, outsourcing of key services along the value chain has resulted in bottlenecks, many of which have been exacerbated by COVID-19. As a response, drug discoverers increasingly rely on venture capital (VC) to finance development. As venture-backed firms look to reduce capital burn, and as outsourcing expands across all rungs of medicine development, well-integrated, low-cost regional clusters like OBIC can compete alongside incumbent leaders to meet rising global demand.

A primary goal of the ACOG CAPEDD CEDS is to "Build a resilient economy through business development and attraction, diversification of the economic base, and adopting policies to address economic and weather-related disruptions." Because thousands of Oklahoma jobs boom and bust with the commodities cycle, OBIC represents a transformative opportunity for regional economic diversification. Life sciences are a high-growth, low-volatility sector that stand to strengthen Central Oklahoma's overall economic profile. Compared to national average for all sectors, life sciences occupations are disproportionately concentrated in high and mid-skill employment.

3.0 Coalition Members and Their Roles OBIC unites a broad coalition of government, academic, community, and industry partners to finally implement long-term strategic plans around. Members include: ? Oklahoma City Economic Development Foundation: The Oklahoma City Economic

Development Foundation is the lead organization for OBIC. The Foundation is a Type I supporting organization of the Greater OKC Chamber of Commerce, which operates a 10county regional economic development partnership that encompasses both of Oklahoma's public research institutions. ? Oklahoma City Innovation District: OKCID is the nonprofit economic development organization serving as the hub for OKC entrepreneurship, innovation, and research. Biotech is a key focus of OKCID, given deep relationships with OU, OSU, OMRF, and industry leaders like Cytovance and Wheeler Bio. OKCID also facilitates workforce pipelines between the surrounding, economically disadvantaged community, and scientific jobs. ? University of Oklahoma and Health Sciences Center (OU & OUHSC): The University of Oklahoma is the largest research institution in the state of Oklahoma, which includes a leading Health Center and NCI-designated Cancer Center in Oklahoma City. OU Health Center is one of only four comprehensive academic health centers in the nation with seven professional colleges. OU is also home to the Stephenson School of Biomedical Engineering, the Stephenson Life Sciences Research Center, a Top 10 entrepreneurship program, and the Tom Love Innovation Hub, the only EDA University Center in the state of Oklahoma. ? Oklahoma Center for the Advancement of Science and Technology (OCAST): OCAST was established by the Oklahoma legislature to grow and diversity Oklahoma's economy through technology development, technology transfer, and technology commercialization. OCAST actively funds research and programs that lead to innovation, new business formation, high-wage job growth, and STEM education. OCAST will continue funding

Oklahoma City Economic Development Foundation

EDA-HDQ-ARPBBB-2021-2006976

biotech research and commercialization activities that lead to the creation of jobs, wealth, and economic resiliency in Central Oklahoma. ? Prairie One Solutions (Oklahoma State University): Prairie One Solutions is a not-forprofit subsidiary of the Oklahoma State University Research Foundation and lead contractor for the Oklahoma Public Health Laboratory and the Oklahoma Pandemic Center for Innovation and Excellence.

4.0 Component Projects While OBIC is brimming with overlooked resources, increasing both volume and quality of existing cluster assets is vital. The following projects address this goal: ? Oklahoma Center for Therapeutics - Translational Research Labs. One of the most

critical aspects of a drug development and discovery program is the interplay between laboratory based translational scientists and physician scientists dedicated to early phase clinical trials. Under the BBBRC, this project would seek to build 10 translational research labs dedicated to drug discovery and development at a cost of $8M, funding essential researchers and core lab space to create a sustainable nexus for drug discovery in Oklahoma City, increasing clinical trial and commercialization output. ? Oklahoma Center for Therapeutics ? Early Phase Clinical Trial Network. As the OU Stephenson Cancer Center is currently in the top 10 nationally for accrual of patients to phase I trials, it is critical to build capacity commensurate with the demand for phase I trials that will be created through the translational science investment. This project seeks to double the size of the existing early phase program at a cost of $4M ? hiring 4 new physician scientists, and doubling the existing support personnel, including regulatory, data management, research nursing, IT support, and biospecimen acquisition. ? Biomanufacturing Workforce Training Center. This project would establish a workforce training center to meet growing demand for skilled labor in the biotech product development ecosystem. The center will enable access to specialized equipment and industry expertise needed to gain competency in the latest industry processes, practices, and technologies, complementing existing training providers and boosting the region's competitiveness. This holistic approach will produce a viable pathway for Oklahomans to gain stackable, industryrecognized credentials. Developing a center of this type requires an up-front capital investment of $8.5M but would result in 400 workers attaining mid-wage employment over 4 years. BBBRC provides a rare opportunity to execute this vision. ? Norman Bio Incubator. Norman, OK is home to the University of Oklahoma's main campus and an emerging biotech industry with established leaders like IMMY Labs and exciting startups like Leefa Biotech. However, Norman, OK has no existing wet lab facilities for biotech startups. The Norman Bio Incubator would be a 15,000 square foot incubator ? 10,000 square feet of wet lab space, and 5,000 square feet of shared desk office space for administrative functions. This facility would be located in Norman, operated locally, and would cost $7M. ? Prairie One Labs. Stillwater, OK is home to the Oklahoma Pandemic Center of Innovation and Excellence (OPCIE), the Oklahoma Public Health Laboratory, and Oklahoma State University. Prairie One Labs would include construction of a supercomputing facility, Biosafety Level 3 laboratory space, and a Class 100 clean room to drive translational research to viable commercial products in connection to the OPCIE and OSU. This $6M

Oklahoma City Economic Development Foundation

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facility would attract and house corporate and industry tenants interesting in locating near the OPCIE and OSU. ? OU Biotech Core Facility. This project would provide state-of-the-art equipment and services to instructors and researchers at OU, local nonprofit organizations like OMRF, and private companies like Wheeler Bio. The facility would include $8M in high-throughput, advanced bioprocessing equipment that will be suitable for a wide range of applications in process development, mammalian cell cultural, and microbial fermentation. ? Oklahoma Biotech Startup Programs. This comprehensive suite of entrepreneurial support programs would combat economic disruption by accelerating innovation, commercialization of university research, and the growth of biotech startups. A goal of ACOG CAPEDD CEDS is to "Grow the region's startup, entrepreneurship, and business innovation ecosystem by providing the support and tools needed for businesses to thrive." Thus, these programs would provide: 1) translational funding to help advance university biotech innovations to market, 2) entrepreneurial training, mentoring, and connections, 3) customer-focused market discovery support, 4) legal, including IP, support, 5) assistance in positioning for venture, debt, and grant financing, and 6) physical infrastructure support through the Norman Bio Incubator, Prairie One Labs, Oklahoma Center for Therapeutics, and other wet lab resources in Central Oklahoma, such as the Oklahoma Christian University Life Science Incubator. This program would cost $12M over 4 years and will build a vibrant startup pipeline across OBIC's I-35 biotech supercluster. ? Oklahoma Bioscience Cluster Initiative. This cluster-based advocacy initiative run by the OKC Innovation District would ensure the sustainability of OBIC through regular convenings of industry leadership, leading needs assessments and economic studies, encouraging regional connectivity, and policy advocacy. This program would cost $4M over 4 years.

5.0 Proposed Metrics of Success Key Findings from the ACOG CAPEDD CEDS included 1) Uneven Development Patterns growth and investment have not been evenly distributed across the ACOG region; 2) Vulnerability to Economic Disruption - the Region's historic dependence on oil and gas and climate-related vulnerabilities have been an impediment to economic growth; and 3) Lagging Growth in Innovation - while many exciting innovations are emerging, the region has lagged behind peer markets on innovation-related indicators. The OBIC effort is designed to specifically address each of these findings, along with other key goals from long term strategic plans across the region and EDA priorities. Success metrics, tracked annually and post grant, include: ? Economic impact: # of new biotech companies founded in Oklahoma, originating within

Oklahoma's public universities, or founded on university patents and licenses; # of faculty and graduates from Oklahoma universities founding biotech companies; Revenue generated, jobs created, and amount of VC investment received by Oklahoma biotech startups; Return on investment for state-supported agencies investing in biotech startups, including i2e, OCAST, etc.; Revenue generated by Oklahoma biotech companies; #of non-Oklahoma companies leveraging OBIC resources and total external funding entering the ecosystem; Biotech founder demographics and diversity vs OBIC region and national averages. ? Innovation: # and amount of federal biotech-related grants received; # of biotech-related patents awarded; Peer recognition or other regional/national prizes awarded; PI/inventor demographics and diversity vs OBIC region and national averages.

Oklahoma City Economic Development Foundation

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? Workforce: Biotech industry jobs retained and created; # of certificates, degrees, average starting salary, and job placement percent for Biomanufacturing Workforce Training Center graduates; Student demographics and diversity vs OBIC region and national averages.

6.0 Availability of Matching Funds The OBIC coalition will leverage over $65M in matching and supporting funds for the proposed effort. The Oklahoma Center for Therapeutics is built upon a $40M capital campaign dedicated to establishing a new OU Department of Oncology Science. Additional match will come from the OU College of Medicine ($1M) and the Stephenson Cancer Center's philanthropic fund. The Biomanufacturing Workforce Training Center leverages OKC's Metropolitan Area Projects (MAPS) funding, which includes $10M to construct an Innovation Hall facility in the Innovation District, matched by another $10M raised from non-MAPS sources. The Norman Bio Incubator and Prairie One Lab matches come from NEDC and Prairie One Solutions, who will donate land for each respective facility ($5M estimate).

7.0 Barriers to Implementation ? Specialization: The most successful cluster initiatives are in regions willing to place

strategic bets on distinct cluster opportunities. Resources are scarce and competition is high, so distinguishing a cluster requires funneling energy and investment into a limited number of truly unique specializations. OBIC mitigates this barrier by hypertargeting the biotech focus to new era medical innovations--such as biologics drugs--and focusing specifically on positioning the region as a favorable service provision hub for overcoming persistent developmental bottlenecks facing developers, especially in the post-COVID landscape. ? Regional Alignment: The strongest cluster initiatives are industry-driven, with interventions catalyzed by firms working collaboratively to fill ecosystem gaps. However, universities fuel these industry strategies, and the public sector hypercharges them with critical investment. OBIC will connect and dramatically accelerate Oklahoma's biotech ecosystem along an urban/rural corridor from Norman to OKC to Stillwater, OK by including all of Oklahoma's premiere research institutions, as well as several financial and biotech industry leaders. ? Adapting to Change: OBIC is building around existing assets and focusing on persistent challenges plaguing product developers around the globe. This strategy seeks to boost the growth and competitiveness of existing firms, through ensuring local collaboration that bolsters their collective productivity and value proposition to global markets. OBIC, through the Regional Economic Competitiveness Officer and close partnerships with key participants who have a strong history of collaboration, will work to share data, advocate for the cluster, and promote an equitable environment.

8.0 Timeline for Implementation

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