IDEC to close San Diego Campus (San Francisco: appointed, home, employment)

[loveautumn]

Reported today that Biogen-Idec (Massachusetts) is now completely shutting down its IDEC operations here in San Diego. Around 350 people will be losing their jobs (a few will be going to Boston area). Another blow to the biotech industry here and more evidence that businesses will be leaving California.

I read the campus has been sold, it is a beautiful facility from what I understand.

[Gentoo]

Originally Posted by loveautumn

Reported today that Biogen-Idec (Massachusetts) is now completely shutting down its IDEC operations here in San Diego. Around 350 people will be losing their jobs (a few will be going to Boston area). Another blow to the biotech industry here and more evidence that businesses will be leaving California.

I read the campus has been sold, it is a beautiful facility from what I understand.

The tech industry as a whole seems to be in trouble in SD. My girlfriends sister just got laid off yesterday from the company she works at.

[loveautumn]

quote from U-T Article

“Like everybody else here, I’m just very disappointed,” Royston said Wednesday. “It’s disappointing that we can’t develop a major pharmaceutical company that stays here.” The loss illustrates a reality about the San Diego biotechnology hub that is a source of angst among some people. The region has strong academic and entrepreneurial elements that provide a nurturing breeding ground for pharmaceutical startups. But San Diego lacks the investment infrastructure and big-company culture found in Boston and the San Francisco Bay Area, which are home to many of the country’s biggest drug companies.

[shmoov_groovzsd]

I think that Research area in La Jolla foster more start ups than retaining larger corporations. I am hoping that some of these laid off employees will create a start up at least.

[Oerdin]

I heard BioGen had a problem with one of their drugs not passing the FDA tests and it was pretty much a make or break item for them. I really don't see how this has jack to do with California's regulations or taxes or much of anything else. BioGen sunk a lot of money into a product which didn't get past the FDA and so now they're trying to cut back to preserve capital. Having a product you've invested heavily in not pan out happens all the time in all sorts of industries.

[NYSD1995]

Biotech is not a jobs creator. Never has been and never will be. It is a capital intensive, startup-based business cycle. Unlike software which can turn wildly profitable in 5-7 years it can take decades for Biotech businesses to either succeed or fold. loveautumn is exactly correct. Most San Diegans are in denial about the net impact of biotech to the local economy, they think it is a major part of the local economy, reality is it is ultimately a very small, albeit typically high-paying cluster.

Most biotechs rely on VC capital and as a result they will consolidate to either the SF Bay or Boston MA as that is where the capital is. UCSD is not enough to create a sustaining large scale employment center.

[shmoov_groovzsd]

Originally Posted by Sassberto

Biotech is not a jobs creator. Never has been and never will be. It is a capital intensive, startup-based business cycle. Unlike software which can turn wildly profitable in 5-7 years it can take decades for Biotech businesses to either succeed or fold. loveautumn is exactly correct. Most San Diegans are in denial about the net impact of biotech to the local economy, they think it is a major part of the local economy, reality is it is ultimately a very small, albeit typically high-paying cluster.

Most biotechs rely on VC capital and as a result they will consolidate to either the SF Bay or Boston MA as that is where the capital is. UCSD is not enough to create a sustaining large scale employment center.

Thats news to me. I never heard or felt sentiment about biotech being a major part of the local economy.

For anyone I know that works in biotech, San Diego is one of the more dedicated hubs in the US for that industry, for whatever that is worth. Its pure R&D with barely any manufacturing in tow.

In perspective, R&D in the US for just about any sector is always going to be funded by any or all: VC, govt incentives/grants as well as tax friendly states and cities.