EP 134 - The Secret Sauce of California’s Biotech Success Revealed by Joe Panetta

🚀 Discover the Secret Sauce Behind California’s Biotech Success with Joe Panetta

 Unlock the keys to California’s biotech boom as we delve into the insights of Joe Panetta, President and CEO of Biocom California. In this episode, we explore the unique factors that have made California a global leader in biotech innovation. Whether you’re a CEO, investor, or biotech enthusiast, this episode offers invaluable lessons and strategies.

 🎙️ What's in the Episode:

1️⃣ Convergence of Science and AI: Learn how the integration of advanced technologies is revolutionizing biotech.

2️⃣ Risk-Taking Culture: Understand the cultural elements that drive California’s unparalleled biotech success.

3️⃣ Strategic Global Collaborations: Discover how international partnerships are shaping the future of biotech in California.

 👨‍💼 About Joe Panetta:

Joe Panetta is a pivotal figure in the biotech industry, leading Biocom California, which represents over 1,800 members. With decades of experience, Joe provides a deep dive into the strategies and innovations that have positioned California at the forefront of biotech.

💡 LINKS TO MORE CONTENT

Host: Christian Soschner

📌 Quotes:

(00:08:28) "We're on the verge of an era where science and AI converge for better results."

(00:26:14) "California's secret sauce is its culture of risk-taking and pursuit of great rewards."

(00:29:34) "An open market for pricing and selling drugs attracts biotech innovators to the U.S."

(00:46:10) "Companies will seek secure alternatives for manufacturing and research, not solely depend on China."

(00:57:42) Joe Panetta: "It's a shame our governor's office offers no support to the biotech industry."

⏰ Timestamps:

(00:02:00) Insights from BIO 2022: Key Takeaways and Future Trends

(00:08:00) Convergence in Biotech: Merging Technologies and Global Collaboration

(00:15:36) Expanding Biocom's Influence: From Local to National Impact

(00:21:23) Global Partnerships: California's Strategy for International Biotech Collaboration

(00:26:14) California's culture of risk-taking: The secret sauce for biotech success

(00:32:08) Embracing failure: The key to thriving in California's biotech ecosystem

(00:42:40) California Dreamin': The Importance of a California Office for Biotech Companies

(00:47:25) The Changing Face of Bio: New Technologies and Global Partnerships at the Forefront

(00:55:27) Building Bridges: Governor Schwarzenegger's Biotech Legacy

(00:59:38) Collaborative Catalyst: Government's Role in Biotech Advancement

Transcript

00:00:00:00 - 00:00:15:18

Christian Soschner

Did you know that California's biotech sector is a $415 billion powerhouse? Driven by a unique culture of risk taking and innovation.

00:00:15:18 - 00:00:29:23

Christian Soschner

In today's episode, we dive deep into the intricate world of biotech with none other than Joe Panetta, the president and CEO of Viacom California.

00:00:29:23 - 00:00:30:11

Joe Panetta

They come here

00:00:30:11 - 00:00:32:20

Joe Panetta

because with great risk comes great reward,

00:00:32:20 - 00:00:33:11

Joe Panetta

And that's

00:00:33:18 - 00:00:34:15

Joe Panetta

we can,

00:00:34:15 - 00:00:36:21

Joe Panetta

use these new technologies,

00:00:36:21 - 00:00:38:14

Joe Panetta

to create.

00:00:38:14 - 00:00:39:16

Speaker 3

more, more.

00:00:39:21 - 00:00:42:05

Joe Panetta

Efficient drug development processes.

00:00:42:16 - 00:00:46:07

Joe Panetta

In 2004, he was governor and he supported,

00:00:46:09 - 00:01:02:18

Christian Soschner

Joe Panetta is a key figure in California lives and sector leading bio. Com California, an organization that represents over 1800 members and drives innovation and success in the biotech industry.

00:01:02:18 - 00:01:15:11

Christian Soschner

With decades of experience, Joe has seen firsthand the evolution and growth of biotech in California and is here to share invaluable insights.

00:01:15:11 - 00:01:25:17

Christian Soschner

And this episode, you will discover how the convergence of science and artificial intelligence is transforming biotech.

00:01:25:17 - 00:01:31:15

Christian Soschner

The culture of risk taking that makes California a key over leader in biotech

00:01:31:15 - 00:01:40:09

Christian Soschner

and strategic advice for international companies looking to integrate into California's biotech ecosystem.

00:01:40:09 - 00:02:05:18

Christian Soschner

Don't forget to subscribe, comment and share this episode! Your engagement helps the team bring more influential speakers like Joe Panetta to the podcast, delivering more insightful content for free. Now, let's dive into the full episode and uncover the secrets behind California's biotech success.

00:02:05:18 - 00:02:20:14

Christian Soschner

So it's good to have you on the show. And first of all, I would like to thank you. that's in the preparation now, the chance to speak with Judy. And I saw, you make it. They did really a great job. Mickey Mouse on there on the front end of. Was the contact person.

00:02:20:14 - 00:02:31:23

Christian Soschner

And, putting this together in just one week was an amazing work. So I think get all the answers. I needed a lot of help to, to prepare the questions. It's excellent to have a great communications team.

00:02:32:00 - 00:02:40:19

Joe Panetta

Well thank you. That's that's nice to hear coming from you. And, I agree, they do a fantastic job.

00:02:40:21 - 00:02:42:18

Christian Soschner

Joe Pio is back in

00:02:42:18 - 00:03:02:20

Christian Soschner

San Diego this year. And the last time the last fire was in 2022. And it feels like it was yesterday. It's amazing. It's already two years past. What were your biggest takeaways from last the last fire in 2022?

00:03:02:22 - 00:03:09:22

Joe Panetta

Well, Christian, I think, 2022 and 2024.

00:03:09:24 - 00:03:10:10

Speaker 3

Are.

00:03:10:16 - 00:03:15:24

Joe Panetta

Very different times in the world of biotech.

00:03:16:01 - 00:03:20:03

Speaker 3

I mean, first of all, you know, we held biotech 20.

00:03:20:03 - 00:03:21:10

Joe Panetta

22 in San Diego.

00:03:21:11 - 00:03:22:12

Speaker 3

But,

00:03:22:14 - 00:03:34:17

Joe Panetta

We also had planned to hold bio 2020 in San Diego, and that turned into a virtual meeting for obvious reasons. We had a pandemic to deal with. so I believe it was the first time since 2017.

00:03:34:19 - 00:03:36:01

Speaker 3

That, bio.

00:03:36:01 - 00:03:40:08

Joe Panetta

Actually came back to San Diego, which was kind of a long drought for us because I.

00:03:40:08 - 00:03:41:08

Speaker 3

Think if.

00:03:41:08 - 00:03:49:20

Joe Panetta

My if my count is true and I go back to the first 1 in 2001, I believe we've done six of these in, in San Diego.

00:03:50:06 - 00:03:53:05

Joe Panetta

All in very different, very different times.

00:03:54:04 - 00:03:56:23

Joe Panetta

My gosh, we we did the one in, 2009.

00:03:56:23 - 00:04:17:16

Joe Panetta

in June. And then we had a recession two months later. we did the 1 in 2001, in June. And then we had a horrible terrorist attack three months later. And these things all had an impact on biotech and and on the economy. But 20, 22,

00:04:17:18 - 00:04:17:23

Speaker 3

we.

00:04:17:23 - 00:04:19:01

Joe Panetta

Were emerging.

00:04:19:01 - 00:04:21:03

Speaker 3

From a pandemic.

00:04:21:05 - 00:04:22:10

Joe Panetta

and we were, I think, in the.

00:04:22:10 - 00:04:23:12

Speaker 3

Middle of a.

00:04:23:14 - 00:04:30:10

Joe Panetta

Very, lucrative period for people who were looking for funding for their biotech companies.

00:04:31:15 - 00:04:44:10

Joe Panetta

It was, it was happy times. And in 2022, in terms of the availability of capital and partnering opportunities, and I think that was kind of the theme of the final 2022 convention.

00:04:44:12 - 00:04:44:15

Speaker 3

you.

00:04:44:15 - 00:04:54:12

Joe Panetta

Know, we're biotech is back. The funding is great. and the opportunities are enormous. And we were, you know, as we always are.

00:04:54:14 - 00:04:54:20

Speaker 3

When.

00:04:54:20 - 00:05:02:10

Joe Panetta

We have the meeting here in San Diego. We're just thrilled to show off, everything from the great weather.

00:05:02:12 - 00:05:02:21

Speaker 3

To the.

00:05:02:21 - 00:05:08:16

Joe Panetta

Great people to that incredible biotech cluster that we've got in in San Diego. And I think.

00:05:09:05 - 00:05:12:04

Joe Panetta

Going into this convention in a few days.

00:05:12:04 - 00:05:12:23

Speaker 3

Here.

00:05:13:00 - 00:05:21:03

Joe Panetta

Obviously the markets, the funding markets haven't recovered. things seem to be stabilizing somewhat.

00:05:21:05 - 00:05:21:16

Speaker 3

but.

00:05:21:17 - 00:05:34:03

Joe Panetta

One thing for sure that I'm optimistic about is, is that following on the, excitement and the great, experiences that people had in 2022 and bio.

00:05:34:05 - 00:05:34:13

Speaker 3

That.

00:05:34:13 - 00:05:36:16

Joe Panetta

We'll have an enormous crowd back here.

00:05:36:16 - 00:05:38:21

Speaker 3

In 2024.

00:05:38:21 - 00:05:41:23

Christian Soschner

How many people do you expect 2024?

00:05:42:00 - 00:05:42:20

Joe Panetta

I you

00:05:42:20 - 00:05:55:05

Joe Panetta

know, I shouldn't I shouldn't begin to, try to estimate the number of people that will have, but, I, I'll just say I would love to see 20,000 people here. I think that would be great.

00:05:55:06 - 00:05:57:04

Christian Soschner

20,000? It's amazing.

00:05:57:04 - 00:06:08:24

Joe Panetta

Yeah, I think we approached that last time around. Now, look, I say that a little bit cautiously because the other thing that we know, and we see this because we're, you know, we're we're a similar association to bio.

00:06:10:01 - 00:06:17:05

Joe Panetta

One of the things that's, that's happened with the the downturn in, financing in the markets is that,

00:06:17:07 - 00:06:19:12

Speaker 3

Trout travel to capital.

00:06:19:12 - 00:06:19:16

Joe Panetta

For.

00:06:19:16 - 00:06:20:10

Speaker 3

Attending.

00:06:20:12 - 00:06:34:12

Joe Panetta

Conventions and travel. is it has, has available as it has it was. So we'll we'll see, you know, if people are able to come here. But my guess is that they're going to find a way to come to us.

00:06:34:14 - 00:06:34:17

Christian Soschner

At

00:06:34:17 - 00:06:50:12

Christian Soschner

I believe that San Diego itself is worth for trip 2020. Travel in 2022 was really fun. this is we can do our, podcast on that topic. I'd was the first trip after the pandemic, but let's stay with, with the bio. This year's theme is converge.

00:06:50:14 - 00:06:51:00

Joe Panetta

Yeah.

00:06:51:02 - 00:06:58:13

Christian Soschner

What's what? What was the motivation to choose converge? It's a it's a theme for this year's bio.

00:06:58:15 - 00:06:59:11

Joe Panetta

I think,

00:06:59:11 - 00:07:00:08

Speaker 3

00:07:00:10 - 00:07:09:20

Joe Panetta

Convergence is the name of the game these days. And in, in biotech, we just held a conference called converge last week. Ourself I think bio maybe maybe star name.

00:07:09:20 - 00:07:14:05

Speaker 3

I'm not sure. I'm believe but, you know we.

00:07:14:05 - 00:07:18:05

Joe Panetta

Will converge means a lot of things like converge first of all.

00:07:18:19 - 00:07:27:06

Joe Panetta

In its very basic definite fashion means that we're going to have all these people converging together here and in San Diego, in,

00:07:27:08 - 00:07:27:16

Speaker 3

You know.

00:07:27:16 - 00:07:36:22

Joe Panetta

The, the, one of the hot spots for biotech in the, in the country, people converging from all parts of not only the United States, but Europe.

00:07:36:24 - 00:07:39:03

Speaker 3

the, the,

00:07:39:05 - 00:07:42:03

Joe Panetta

The Pacific Rim, Asia, Australia.

00:07:42:05 - 00:07:42:17

Speaker 3

all over the.

00:07:42:17 - 00:07:56:19

Joe Panetta

World converging here in San Diego. But if you take it the next step, you can define converge as is, meaning that it's about convergent technologies. And that's what we're beginning to see happening in the biotech world today.

00:07:56:21 - 00:07:57:15

Speaker 3

you know, I've.

00:07:57:15 - 00:07:59:24

Joe Panetta

Been around in biotech long enough to, to remember.

00:07:59:24 - 00:08:00:24

Speaker 3

When.

00:08:01:01 - 00:08:10:20

Joe Panetta

just about everyone who worked in biotech was either a biochemist or a biologist. we didn't we didn't have data scientists. We didn't have engineers.

00:08:10:22 - 00:08:12:15

Speaker 3

you know, but now.

00:08:12:17 - 00:08:18:02

Joe Panetta

we're talking about things like rapid analytics. we're talking about death.

00:08:18:24 - 00:08:31:00

Joe Panetta

I, and, the applications of AI discovery and developing drugs. and this was the topic of our conference last week that was just an amazing group of people.

00:08:31:02 - 00:08:31:08

Speaker 3

in.

00:08:31:08 - 00:08:37:02

Joe Panetta

From the AI world, talking to people in the biotech world. And so when we talk about converge, I think we're talking.

00:08:37:02 - 00:08:38:07

Speaker 3

About being on.

00:08:38:07 - 00:08:51:05

Joe Panetta

The verge of an era when science, especially biomedical science and, artificial intelligence and, and, and other analytical tools are coming together to create.

00:08:51:07 - 00:08:51:10

Speaker 3

The.

00:08:51:10 - 00:08:59:04

Joe Panetta

Potential for greater efficiencies and lower cost and better results for patients across the board.

00:08:59:04 - 00:09:21:11

Christian Soschner

Yeah, that was fantastic. I started Life Science Biotech in 2006, and, nobody wanted to talk about artificial intelligence and the digital world. Almost nobody except in the statistics realm. And now it's completely different. you have a long history working in pharma, biotech, life science, but it's tonight. It's your passion for that area.

00:09:21:13 - 00:09:23:12

Joe Panetta

Well, it's certainly a passion

00:09:23:12 - 00:09:24:17

Joe Panetta

was ignited in me, but.

00:09:24:17 - 00:09:25:13

Speaker 3

It,

00:09:25:15 - 00:09:36:06

Joe Panetta

Wasn't it wasn't in the traditional way that a lot of people come into biotech. because, my background was, in public health, and I was working.

00:09:36:08 - 00:09:38:06

Speaker 3

in, a very.

00:09:38:07 - 00:09:41:22

Joe Panetta

Large commercial company that made chemicals and.

00:09:41:24 - 00:09:42:06

Speaker 3

other.

00:09:42:11 - 00:09:54:05

Joe Panetta

Types of things like insecticides and fungicides and, what concerned me because of my public health background and my, my major in public health was in environmental health science. Was that.

00:09:54:22 - 00:10:04:09

Joe Panetta

There there must be a better way to deal with some of the impacts on the environment that toxic chemicals are having.

00:10:04:11 - 00:10:07:05

Speaker 3

And, so,

00:10:07:07 - 00:10:17:04

Joe Panetta

I began to do research and, I found that there was a company in San Diego that was developing, recombinant protein based insecticides.

00:10:17:06 - 00:10:17:14

Speaker 3

That.

00:10:17:18 - 00:10:45:02

Joe Panetta

Could be sprayed out on crops. They were very, potentially very effective because they were still working on them. And they would degrade within a matter of a week or two in the environment. And so my passion was for the environment. and, you know, I learned enough between my days in the federal government that the Environmental Protection Agency and the chemical company to know that we needed to find a way to get away from using all these toxic chemicals.

00:10:45:02 - 00:10:45:21

Speaker 3

So I.

00:10:45:21 - 00:10:54:06

Joe Panetta

Came to San Diego to be a part of a company that was actually working in an area that was a little bit different from traditional drug development, but still very important, very.

00:10:54:06 - 00:10:56:01

Speaker 3

Impactful.

00:10:56:01 - 00:11:01:23

Christian Soschner

Yeah, it's not only drug development, biotech. You can do much, much more.

00:11:02:00 - 00:11:02:09

Speaker 3

Yeah.

00:11:02:15 - 00:11:03:21

Joe Panetta

In fact.

00:11:03:23 - 00:11:04:16

Speaker 3

the company that.

00:11:04:16 - 00:11:14:07

Joe Panetta

I joined here called my Kitchen Corporation, in 1988, within about three years, I was beginning to, acquire patents for,

00:11:14:07 - 00:11:29:21

Joe Panetta

by inserting genes into crops. and so, you know, we developed, the, the first GMO crops that were insect resistant corn and cotton because, you know, all about that. I had I had a fun time in Europe, especially in Germany.

00:11:29:21 - 00:11:30:23

Joe Panetta

And and that

00:11:31:12 - 00:11:37:13

Joe Panetta

And a couple of other countries, trying to deal with it with the authorities about, getting those products approved.

00:11:37:13 - 00:11:38:10

Speaker 3

But,

00:11:38:12 - 00:11:41:14

Joe Panetta

Again, you know, it was, a passion.

00:11:41:16 - 00:11:42:18

Speaker 3

And,

00:11:42:20 - 00:11:51:13

Joe Panetta

And I think that, I feel proudest of what we were able to do to put these genes into crops. You know, you know, you don't have to spray insecticides on them anymore.

00:11:51:15 - 00:12:00:10

Christian Soschner

Yeah, let's let's stay with fire. And if they'll come when we start talking about European authorities, we could easily go to, they say to us.

00:12:00:12 - 00:12:02:19

Joe Panetta

trust me, I don't want to talk about them either.

00:12:05:10 - 00:12:10:07

Christian Soschner

which which year was which year was that, that you it's, this research.

00:12:10:09 - 00:12:19:02

Joe Panetta

We actually got the, the first approvals in the US in 1995, but we began probably three years before that to, to do all the research

00:12:19:02 - 00:12:21:15

Joe Panetta

and, 3 or 4 years before that,

00:12:21:17 - 00:12:23:00

Speaker 3

To,

00:12:23:02 - 00:12:28:22

Joe Panetta

To complete all of the dossier that we had to submit to all the research. So we had to submit field trials and things like that.

00:12:28:24 - 00:12:30:03

Christian Soschner

Take us over the 90s.

00:12:30:03 - 00:12:40:00

Christian Soschner

And, then you decided to spearhead bio, come back from California. What motivated to you to do this step?

00:12:40:02 - 00:12:40:11

Joe Panetta

Well,

00:12:40:11 - 00:12:41:04

Speaker 3

gosh, you know.

00:12:41:04 - 00:12:43:03

Joe Panetta

I came to San Diego in 1980.

00:12:43:03 - 00:12:45:15

Speaker 3

Eight. and,

00:12:45:17 - 00:12:55:02

Joe Panetta

You know, it was as beautiful a town as it is now. The traffic was a little better than it is now, but it was actually, absolutely a beautiful place.

00:12:55:21 - 00:12:57:14

Joe Panetta

And, in 1980.

00:12:57:14 - 00:12:58:17

Speaker 3

Eight,

00:12:58:19 - 00:13:14:07

Joe Panetta

There was a group here that preceded biochem. It was called the Biomedical Industry Council. and it was a group of, very small number of early stage biotech company CEOs, including the CEO at the company that I joined.

00:13:14:09 - 00:13:15:03

Speaker 3

And,

00:13:15:05 - 00:13:19:19

Joe Panetta

They developed this organization that within about five years evolved into.

00:13:19:19 - 00:13:21:22

Speaker 3

Biochar, for the.

00:13:21:22 - 00:13:34:01

Joe Panetta

Purpose of being able to network with each other. just just to get together and have speakers and, and hear from, experts on topics that were important to them.

00:13:34:03 - 00:13:34:07

Speaker 3

and.

00:13:34:07 - 00:13:37:11

Joe Panetta

They also created the organization to.

00:13:37:13 - 00:13:38:24

Speaker 3

advocate on behalf.

00:13:38:24 - 00:13:42:01

Joe Panetta

Of this fledgling industry in San Diego.

00:13:42:03 - 00:13:42:06

Speaker 3

to.

00:13:42:06 - 00:13:50:14

Joe Panetta

Advocate with our local politicians because, you know, if you look at the history of San Diego Christian going, going back before the 1980s.

00:13:50:16 - 00:13:51:23

Speaker 3

Especially, the.

00:13:51:23 - 00:13:59:24

Joe Panetta

Economy was based on to two things tourism and military. and so, you know, we didn't even have Qualcomm yet.

00:14:00:04 - 00:14:02:07

Speaker 3

Right? So,

00:14:02:09 - 00:14:06:18

Joe Panetta

You know, we began we began to see the the rise of biotech.

00:14:06:20 - 00:14:09:06

Speaker 3

And, become.

00:14:09:08 - 00:14:10:07

Joe Panetta

Which officially.

00:14:10:07 - 00:14:11:10

Speaker 3

Started.

00:14:11:12 - 00:14:12:16

Joe Panetta

in 1992.

00:14:12:21 - 00:14:13:20

Speaker 3

Viacom,

00:14:13:22 - 00:14:22:20

Joe Panetta

Began to excuse me. I began to, have more influence in talking with the politicians at the city hall.

00:14:22:22 - 00:14:23:15

Speaker 3

and so.

00:14:23:15 - 00:14:35:22

Joe Panetta

I was I was with this company, my kitchen corporation, where we actually gave Viacom its first home. So, I every day I experienced, seeing the folks for Viacom,

00:14:35:22 - 00:14:37:06

Speaker 3

and I got to know I.

00:14:37:06 - 00:14:47:16

Joe Panetta

Got to know the people who were working in Viacom and got to know what they were doing and got to participate, in some of their committees. and so eventually.

00:14:47:18 - 00:14:50:06

Speaker 3

we sold our company and.

00:14:50:08 - 00:14:51:18

Joe Panetta

that was in 1990.

00:14:51:18 - 00:14:54:00

Speaker 3

Eight. And,

00:14:54:02 - 00:14:55:17

Joe Panetta

So then I was I was asked to join.

00:14:55:17 - 00:14:56:07

Speaker 3

Viacom.

00:14:56:11 - 00:14:58:01

Joe Panetta

Shortly after that and to leave.

00:14:58:01 - 00:14:59:22

Speaker 3

Viacom.

00:14:59:24 - 00:15:04:14

Joe Panetta

Because Viacom was still a local organization.

00:15:04:16 - 00:15:06:07

Speaker 3

And,

00:15:06:09 - 00:15:07:12

Joe Panetta

The leaders of Viacom.

00:15:07:16 - 00:15:09:15

Speaker 3

Wanted it to have more.

00:15:09:17 - 00:15:12:21

Joe Panetta

Influence in our state capital and more influence.

00:15:12:21 - 00:15:14:19

Speaker 3

In,

00:15:14:21 - 00:15:30:19

Joe Panetta

Washington, D.C., as well. And so, what I did for our company was our regulatory affairs work, our government relations work. And so, it was perfect to make that transition into Viacom.

00:15:30:21 - 00:15:42:24

Christian Soschner

this is a great story. And, this was basically in 1999 before the huge stock market crash in 2000 that Viacom started. And now we are in 2024

00:15:42:24 - 00:15:49:02

Christian Soschner

How did how come about in in this two and a half decades.

00:15:49:04 - 00:15:49:20

Joe Panetta

Well, you know,

00:15:49:20 - 00:15:52:08

Joe Panetta

as I said, the the first.

00:15:52:10 - 00:15:54:22

Speaker 3

Goal was to give the.

00:15:54:22 - 00:16:06:24

Joe Panetta

Members of the San Diego life science community a voice beyond San Diego, a voice in Sacramento, where we had issues back then that we were dealing with the we're still dealing with today.

00:16:07:22 - 00:16:15:10

Joe Panetta

Research and development tax credits, manufacturing tax credits, that we, we needed for the industry.

00:16:15:12 - 00:16:16:14

Speaker 3

And,

00:16:16:16 - 00:16:25:20

Joe Panetta

Working in, in Washington with the FDA, and then with, with Congress, so we began to do that back then.

00:16:25:22 - 00:16:27:02

Speaker 3

and,

00:16:27:04 - 00:16:29:12

Joe Panetta

We we did it with.

00:16:29:14 - 00:16:30:17

Speaker 3

maybe 100.

00:16:30:17 - 00:16:34:05

Joe Panetta

Or 150 member companies at the most.

00:16:34:07 - 00:16:34:19

Speaker 3

we began.

00:16:34:19 - 00:16:39:06

Joe Panetta

To realize that, if we wanted to have more of a voice.

00:16:39:08 - 00:16:39:13

Speaker 3

We.

00:16:39:13 - 00:16:42:07

Joe Panetta

Had to we had to grow beyond San Diego.

00:16:43:10 - 00:16:50:14

Joe Panetta

But we were we were very partial to San Diego. And and so, growth beyond San Diego for us.

00:16:50:16 - 00:16:53:21

Speaker 3

Back then, growth up toward.

00:16:53:21 - 00:17:01:05

Joe Panetta

Los Angeles, not even into Los Angeles, but rose up toward Los Angeles. And so I've kind of began to evolve.

00:17:01:07 - 00:17:01:16

Speaker 3

we began.

00:17:01:16 - 00:17:02:22

Joe Panetta

To bring members up.

00:17:02:24 - 00:17:07:01

Speaker 3

and, and and to, to our membership roles. And from.

00:17:07:01 - 00:17:08:24

Joe Panetta

Orange County just north of San.

00:17:08:24 - 00:17:12:12

Speaker 3

Diego, and,

00:17:12:14 - 00:17:14:06

Joe Panetta

And so that that also gave us.

00:17:15:16 - 00:17:25:06

Joe Panetta

An increased number of members from the medical device community, which we also serve, because Orange County has a large medical device contingency.

00:17:25:08 - 00:17:25:13

Speaker 3

we.

00:17:25:13 - 00:17:31:10

Joe Panetta

Also began to, to, to look at how we could increase our networking, the networking that we.

00:17:31:10 - 00:17:32:11

Speaker 3

Did up.

00:17:32:11 - 00:17:33:23

Joe Panetta

Until that point consisted.

00:17:33:23 - 00:17:34:13

Speaker 3

Of.

00:17:34:15 - 00:17:39:16

Joe Panetta

Basically monthly breakfast meetings for our members. It was it was pretty primitive

00:17:39:16 - 00:17:46:16

Joe Panetta

stuff. They were great breakfast meetings. But, you know, we would have 3 or 400 people come, but, we knew we needed to do

00:17:46:16 - 00:17:47:06

Joe Panetta

beyond.

00:17:47:06 - 00:17:47:22

Speaker 3

That.

00:17:47:24 - 00:17:48:15

Joe Panetta

So,

00:17:48:17 - 00:17:48:23

Speaker 3

We.

00:17:48:23 - 00:17:52:05

Joe Panetta

Began to create things like our medical device conference.

00:17:52:07 - 00:17:52:16

Speaker 3

our.

00:17:52:16 - 00:17:54:24

Joe Panetta

Our annual partnering conference.

00:17:56:00 - 00:17:59:23

Joe Panetta

And we also again realized that, it wasn't going to be.

00:17:59:23 - 00:18:02:11

Speaker 3

Enough, to,

00:18:02:13 - 00:18:07:16

Joe Panetta

To, to try to work from San Diego to get things done in Washington, DC.

00:18:07:18 - 00:18:08:05

Speaker 3

You had to have.

00:18:08:05 - 00:18:10:17

Joe Panetta

Feet on the ground in Washington, DC.

00:18:10:19 - 00:18:11:09

Speaker 3

on a daily.

00:18:11:09 - 00:18:22:18

Joe Panetta

Basis. And so, that that resulted in us deciding to open an office in Washington, DC and just in to staff that office with, some experience, people from.

00:18:22:18 - 00:18:25:03

Speaker 3

Up the Capitol.

00:18:25:03 - 00:18:27:13

Joe Panetta

Hill, from regulatory agencies.

00:18:28:08 - 00:18:30:22

Joe Panetta

And that's been a great success for us to.

00:18:30:22 - 00:18:32:07

Speaker 3

Have people.

00:18:32:09 - 00:18:36:04

Joe Panetta

In an office on the ground who can go to Capitol Hill and got a FDA.

00:18:36:06 - 00:18:36:11

Speaker 3

on a.

00:18:36:11 - 00:18:43:21

Joe Panetta

Daily basis. And also they can work directly with, the representatives and our members have in Washington, DC.

00:18:45:02 - 00:18:49:02

Joe Panetta

And and slowly, slowly, you know, we brought on staff.

00:18:49:04 - 00:18:50:07

Speaker 3

Who could get.

00:18:50:09 - 00:18:54:10

Joe Panetta

Serve our members in, in those areas. But the biggest change came.

00:18:54:12 - 00:18:54:22

Speaker 3

Around.

00:18:54:22 - 00:18:57:14

Joe Panetta

2015.

00:18:57:16 - 00:18:58:08

Speaker 3

and.

00:18:58:10 - 00:19:29:01

Joe Panetta

The reason for that change was that there was some turmoil in California, around, biotech associations in the other, in the other clusters. And when I see other clusters, of course, we know that San Francisco is a it's a big cluster, but Los Angeles is a cluster as well. and so, there were organizations in these different clusters, ours and all up in the Bay area, one up in Los Angeles, there was one that, considered itself to be more of a statewide policy organization.

00:19:29:03 - 00:19:32:16

Joe Panetta

and so we had some discussions with those other groups.

00:19:32:18 - 00:19:33:01

Speaker 3

because.

00:19:33:01 - 00:19:36:17

Joe Panetta

We were interested in having more of a statewide voice.

00:19:36:19 - 00:19:37:06

Speaker 3

and,

00:19:37:08 - 00:19:44:22

Joe Panetta

Unfortunately, those discussions didn't go anywhere. unfortunately, at the time. But fortunately.

00:19:44:24 - 00:19:45:19

Speaker 3

What happened after.

00:19:45:19 - 00:19:51:00

Joe Panetta

That was we decided that, we should have a we should have a presence in Los Angeles.

00:19:51:02 - 00:19:51:08

Speaker 3

And.

00:19:51:08 - 00:19:53:16

Joe Panetta

That we should have a presence in San Francisco.

00:19:54:11 - 00:19:59:12

Joe Panetta

In, in Sacramento as well. So we we basically.

00:19:59:14 - 00:20:01:03

Speaker 3

Took that, that.

00:20:01:05 - 00:20:09:24

Joe Panetta

Break down in discussions about potentially creating a statewide organization. And we decided we would just go out and ourselves and build a statewide organization.

00:20:10:18 - 00:20:13:08

Joe Panetta

And that that was a major, major change for us.

00:20:14:07 - 00:20:16:08

Joe Panetta

Beginning around 2015.

00:20:16:10 - 00:20:17:18

Speaker 3

and then,

00:20:17:20 - 00:20:24:17

Joe Panetta

That that was in Los Angeles. And then by 2018, we were opening our office in San Francisco.

00:20:24:19 - 00:20:33:00

Christian Soschner

And you started from from a local initiative, conquered basically the, the whole state, California.

00:20:33:00 - 00:20:48:19

Christian Soschner

And now you, as I understand are is a found in the research for this episode. you start expanding globally and also influence, I think, ecosystems in the world. what about how are you doing with the other ecosystems outside California?

00:20:48:21 - 00:20:51:03

Joe Panetta

Well,

00:20:51:09 - 00:20:54:11

Joe Panetta

You know, today we realize that we've realized for.

00:20:54:11 - 00:20:55:07

Speaker 3

For quite a.

00:20:55:07 - 00:21:18:04

Joe Panetta

While as we've engaged in the effort to grow that, the California life science community to be successful, has to have partners around the world, has to be able to enter markets around the world, and, and has to have the opportunity for companies around the world to come to California and create, business relationships with, with them.

00:21:18:06 - 00:21:22:02

Speaker 3

so, we, we began that.

00:21:22:04 - 00:21:23:05

Joe Panetta

Entire effort.

00:21:24:09 - 00:21:29:05

Joe Panetta

With, with a relationship that we had already in Japan.

00:21:29:07 - 00:21:29:11

Speaker 3

it.

00:21:29:11 - 00:21:30:03

Joe Panetta

Happens at San.

00:21:30:03 - 00:21:31:06

Speaker 3

Diego.

00:21:31:08 - 00:21:39:20

Joe Panetta

And the city of Yokohama, our sister cities. And so the mayor of Yokohama was visiting San Diego about 10 or 12 years ago.

00:21:39:22 - 00:21:40:04

Speaker 3

and we.

00:21:40:04 - 00:21:43:02

Joe Panetta

Invited her to come and speak at one of our breakfast meetings.

00:21:43:04 - 00:21:44:00

Speaker 3

And, and.

00:21:44:00 - 00:21:45:17

Joe Panetta

Afterwards, she said, you know, I'd like to.

00:21:45:17 - 00:21:47:04

Speaker 3

Have,

00:21:47:06 - 00:21:55:15

Joe Panetta

More of a biotech relationship between Yokohama and San Diego, and Yokohama has some great research institutes and universities.

00:21:55:17 - 00:21:56:07

Speaker 3

at that time.

00:21:56:07 - 00:22:02:10

Joe Panetta

They were beginning to create some biotech companies as well. So we thought that would be the ideal place to start.

00:22:02:12 - 00:22:05:08

Speaker 3

and, we, we brought on,

00:22:05:10 - 00:22:08:20

Joe Panetta

A business manager to handle Japan for us.

00:22:08:22 - 00:22:09:12

Speaker 3

And,

00:22:09:14 - 00:22:22:19

Joe Panetta

That's grown significantly. Now we have relationships with the other two major trade associations in Japan, and with not only the city of Yokohama, but the city of Kobe, which has a very large biotech park.

00:22:22:21 - 00:22:23:11

Speaker 3

and a lot of a.

00:22:23:11 - 00:22:25:19

Joe Panetta

Lot of companies as well.

00:22:25:21 - 00:22:26:15

Speaker 3

we went we.

00:22:26:15 - 00:22:26:24

Joe Panetta

Went from.

00:22:26:24 - 00:22:29:05

Speaker 3

There, to,

00:22:29:07 - 00:22:39:07

Joe Panetta

Exploring opportunities in the EU, and created some relationships in places like France and, the UK.

00:22:39:09 - 00:22:39:24

Speaker 3

and.

00:22:40:01 - 00:22:41:16

Joe Panetta

Sweden as well.

00:22:42:22 - 00:22:47:24

Joe Panetta

Not because they're huge markets, but because there's a lot of discovery work going on there.

00:22:48:05 - 00:22:48:11

Speaker 3

That.

00:22:48:11 - 00:22:51:06

Joe Panetta

Could potentially result in partnerships.

00:22:51:08 - 00:22:53:08

Speaker 3

and then beyond that,

00:22:53:10 - 00:22:58:03

Joe Panetta

A couple of years ago, we began to look at a very hot market, Korea.

00:22:58:05 - 00:22:59:24

Speaker 3

and, the, the.

00:22:59:24 - 00:23:05:09

Joe Panetta

Koreans told us that, they actually wanted to come to California. They wanted to join Viacom.

00:23:05:09 - 00:23:06:12

Speaker 3

They wanted to learn.

00:23:06:12 - 00:23:21:16

Joe Panetta

From what we were doing in California, and also began to look at India. not because there are a lot of biotech companies in India, but as much as the fact that there are a lot of contract research and contract manufacturing companies.

00:23:21:20 - 00:23:22:20

Speaker 3

In India.

00:23:22:22 - 00:23:25:07

Joe Panetta

That provide an alternate supply chain.

00:23:25:09 - 00:23:25:22

Speaker 3

For Prime.

00:23:25:22 - 00:23:27:18

Joe Panetta

Members, as well.

00:23:27:20 - 00:23:28:04

Speaker 3

And then.

00:23:28:04 - 00:23:29:01

Joe Panetta

More recently.

00:23:29:15 - 00:23:30:02

Joe Panetta

About a year.

00:23:30:02 - 00:23:31:13

Speaker 3

Ago,

00:23:31:15 - 00:23:33:14

Joe Panetta

I had the opportunity to begin to talk.

00:23:33:14 - 00:23:35:11

Speaker 3

With that, BPI.

00:23:35:11 - 00:23:46:08

Joe Panetta

The German Pharmaceutical Association. and, we decided that it looked like we had some synergies between our two organizations. The German market is a big market.

00:23:46:10 - 00:23:49:02

Speaker 3

and, so, wow.

00:23:49:04 - 00:24:01:11

Joe Panetta

We're we're creating a partnership now in Germany as well, and also Australia. We're, there's a very, lucrative, environment for conducting research with, the government,

00:24:01:13 - 00:24:02:22

Speaker 3

Providing,

00:24:02:24 - 00:24:07:07

Joe Panetta

Funding for that, for that research in the form of rebates for the research that's done.

00:24:07:09 - 00:24:20:19

Christian Soschner

Now, that's good to know. As Europeans, I mean, also Japan and Korea have solid research. Basic research. I did stitch research. The thing in Europe is, and they're coming to the next, part of the conversation kind of finance

00:24:20:19 - 00:24:25:21

Christian Soschner

ecosystem. The problem that we have in Europe, this, lack of venture capital, still carries a lot of fat.

00:24:25:21 - 00:25:07:15

Christian Soschner

There's a lot of, startup companies, and funding us to series is next to impossible. So the logical step for a European companies like, Crispr Therapeutics, for example, I had the pleasure of working for us to know about car when he spun out the company out of Novartis. didn't get funding here in Europe and needs to go to the United States, and but I am impressed with California, especially as, I mean, many think back to the 90s, my personal, memories that I think Europe and the United States were even, economically and roughly.

00:25:07:15 - 00:25:08:11

Christian Soschner

So it was my perception.

00:25:08:11 - 00:25:26:06

Christian Soschner

It's not statistically correct based. It probably, but after that, California just took off and it looked like California is churning out one big company after the other, not only in biotech, but also in a lot of tech areas.

00:25:26:08 - 00:25:30:20

Christian Soschner

And when I opened now the internet tourism, I say a

00:25:30:20 - 00:25:35:16

Christian Soschner

giga funding round, rats. yesterday 6 billion series fee.

00:25:35:17 - 00:25:43:12

Christian Soschner

You can dream of that in Europe. what's the secret sauce of California? Where does the success come from?

00:25:43:12 - 00:25:46:04

Christian Soschner

It's outstanding. It's it's unique.

00:25:46:07 - 00:25:47:07

Joe Panetta

Yeah.

00:25:47:07 - 00:25:49:10

Speaker 3

you know, for for.

00:25:49:10 - 00:26:08:11

Joe Panetta

More than 150 years, California is a place where people come to take risks. it started with, with the gold rush back in 1849. and it hasn't changed. It's a culture that's been bred in California over more than 150 years. People who come here are risk takers, and they come here not just because it's fun to take risks.

00:26:08:11 - 00:26:08:24

Joe Panetta

They come here

00:26:08:24 - 00:26:12:10

Joe Panetta

because with great risk comes great reward, right? And that's

00:26:12:10 - 00:26:15:03

Joe Panetta

some of the culture. That's the secret. If there's a secret sauce in

00:26:15:03 - 00:26:15:21

Joe Panetta

California.

00:26:16:15 - 00:26:22:20

Joe Panetta

That, that said, look, I had a great job in Philadelphia. I made a good salary. I had a nice house.

00:26:22:22 - 00:26:23:21

Speaker 3

you know.

00:26:23:23 - 00:26:26:05

Joe Panetta

I didn't have to come here to a biotech company. I had no.

00:26:26:05 - 00:26:28:04

Speaker 3

Money. and.

00:26:28:06 - 00:26:41:19

Joe Panetta

you know, basically at the same salary I was making in Philadelphia where I could buy a house here that cost three times as much. I don't say that because I want to talk about myself. I say that because that's probably a story that 3 or 400,000 people can tell you.

00:26:41:22 - 00:26:44:18

Speaker 3

About coming here in biotech. Why?

00:26:44:23 - 00:26:57:20

Joe Panetta

Because you're willing to take a risk, because you know that there's the opportunity, for that to turn into something significant and make a significant impact and make a significant change.

00:26:57:22 - 00:26:58:20

Speaker 3

and look.

00:26:58:22 - 00:27:02:07

Joe Panetta

At the at the same time, you look at venture capital, these are these are people who have made a.

00:27:02:07 - 00:27:03:06

Speaker 3

Lot of money.

00:27:03:08 - 00:27:05:08

Joe Panetta

Because they've taken that risk.

00:27:05:10 - 00:27:07:09

Speaker 3

a lot of them. And, they've.

00:27:07:09 - 00:27:09:21

Joe Panetta

Started companies where they've been a part of companies.

00:27:09:23 - 00:27:10:04

Speaker 3

That.

00:27:10:04 - 00:27:13:19

Joe Panetta

Have been successful. And you, you look at here in San Diego, for example.

00:27:14:12 - 00:27:19:06

Joe Panetta

If you look back 25 years ago.

00:27:19:08 - 00:27:20:09

Speaker 3

we had very, very.

00:27:20:09 - 00:27:21:05

Joe Panetta

Few companies.

00:27:21:05 - 00:27:27:06

Speaker 3

That, were in, in the, in the,

00:27:27:08 - 00:27:42:06

Joe Panetta

In the, in the target of large pharma companies that were interested in what they were doing and, and then we had almost a chain reaction, we had companies like Pfizer and AstraZeneca and Merck, and Bristol-Myers Squibb.

00:27:42:08 - 00:27:44:10

Speaker 3

And I could go on and on who.

00:27:44:15 - 00:27:50:13

Joe Panetta

Saw what was happening in biotech in San Diego in the way of cutting edge research and products.

00:27:50:15 - 00:27:51:12

Speaker 3

you know, a company.

00:27:51:12 - 00:28:09:09

Joe Panetta

Called Algorand, the developed virus app for HIV and Aids. Pfizer acquired it. and then Pfizer ended up having a presence here in San Diego. So some some people said, oh, that's going to spoil our biotech culture because pharma is coming to San Diego. The problem is a different culture.

00:28:10:03 - 00:28:18:14

Joe Panetta

But nothing could be further from the truth, because what they did was they built their facilities right in the middle of where the parking companies were.

00:28:18:14 - 00:28:24:11

Joe Panetta

And so you had this intermingling of cultures and and that was that was good for both sides.

00:28:24:13 - 00:28:44:22

Christian Soschner

Yeah, I believe that. I believe that, but what I don't find an answer to, I mean, we also have in Europe, the companies state your name. They also have a presence here in Europe. And they are also close to biotech. But, whenever I look at their success story that started in Europe at some point, to relocate it to the United States.

00:28:44:24 - 00:28:46:02

Christian Soschner

one part you said

00:28:46:02 - 00:28:49:07

Christian Soschner

is that it's a culture of risk takers.

00:28:50:13 - 00:29:02:13

Christian Soschner

What are the components, what you identify, culture of risk takers, money. You can, get rich when you take risks in California, which definitely is not the case in Europe. what other parts are relevant?

00:29:02:15 - 00:29:03:04

Joe Panetta

Yeah.

00:29:03:04 - 00:29:04:20

Speaker 3

Well,

00:29:04:22 - 00:29:08:20

Joe Panetta

Up until recently, I would say the completely open market.

00:29:08:22 - 00:29:10:04

Speaker 3

For.

00:29:10:06 - 00:29:14:24

Joe Panetta

Pricing and selling drugs here in the United States. Right. And and you know, this, you know.

00:29:14:24 - 00:29:15:07

Speaker 3

Wow.

00:29:15:08 - 00:29:25:03

Joe Panetta

A lot of the large European pharma companies relocated to the US because of the price controls in Europe, and because of the more open market here. So I think a lot of biotech people come here.

00:29:25:05 - 00:29:25:11

Speaker 3

with.

00:29:25:11 - 00:29:28:13

Joe Panetta

With that in mind, now, our government is trying to destroy that.

00:29:28:15 - 00:29:28:21

Speaker 3

and I.

00:29:28:21 - 00:29:35:04

Joe Panetta

Think it's very, very shortsighted because we'll end up like Europe if they if they succeed. Now, what they're trying to do.

00:29:35:06 - 00:29:35:21

Speaker 3

but I think.

00:29:35:21 - 00:29:38:24

Joe Panetta

That that open market for pricing.

00:29:39:01 - 00:29:39:08

Speaker 3

you know.

00:29:39:08 - 00:29:41:07

Joe Panetta

Obviously.

00:29:41:09 - 00:29:42:04

Speaker 3

and I can.

00:29:42:04 - 00:29:50:00

Joe Panetta

I say this all the time, you know, if you look at, if you ask, well, what what's the secret? Well, the secret also is.

00:29:50:02 - 00:29:50:24

Speaker 3

That we have.

00:29:51:00 - 00:29:58:23

Joe Panetta

More than 50 years of history, biotech here in California. I have to remember that it was the mid 1970s.

00:29:59:00 - 00:29:59:20

Speaker 3

that, that.

00:30:00:01 - 00:30:02:08

Joe Panetta

Companies like Genentech.

00:30:02:10 - 00:30:04:06

Speaker 3

and,

00:30:04:08 - 00:30:10:07

Joe Panetta

In the case of San Diego, high tech, were, were being created. And so the other secret sauce.

00:30:10:07 - 00:30:11:12

Speaker 3

Is that.

00:30:11:14 - 00:30:13:19

Joe Panetta

we have a lot of people in California.

00:30:13:21 - 00:30:17:13

Speaker 3

who, are,

00:30:17:15 - 00:30:22:17

Joe Panetta

Very good at attracting funding because they're serial entrepreneurs.

00:30:22:19 - 00:30:22:24

Speaker 3

and.

00:30:22:24 - 00:30:24:14

Joe Panetta

They've done this more than one.

00:30:24:14 - 00:30:25:14

Speaker 3

Time.

00:30:25:16 - 00:30:32:22

Joe Panetta

some of them 5 or 6 times, and some of them fail 4 or 5 times and then succeeded finally after that.

00:30:32:24 - 00:30:33:15

Speaker 3

but.

00:30:33:17 - 00:30:34:12

Joe Panetta

Investors.

00:30:34:16 - 00:30:35:07

Speaker 3

Want.

00:30:35:09 - 00:30:38:10

Joe Panetta

To work with people who have had that experience.

00:30:38:12 - 00:30:38:24

Speaker 3

and, and.

00:30:38:24 - 00:30:43:09

Joe Panetta

Especially those who've been successful. And we got, we've got that history of people here.

00:30:43:11 - 00:30:45:06

Speaker 3

Who have done that.

00:30:45:08 - 00:31:04:23

Christian Soschner

Yeah. It's interesting that you mentioned that. I mean, successful people also have a chance here in Europe. But, when I look at the statistics, nine out of ten startups don't make it so basically there is a high failure rate. And, when you look at the European culture, the failure means people are done basically be able to see if there's a failure and there's no second try.

00:31:05:00 - 00:31:10:18

Christian Soschner

And did you understand? You're right. It's a set. I mean, you could if I know it's quite normal. I mean, you failed three, four times. Doesn't

00:31:10:18 - 00:31:23:09

Christian Soschner

matter to the next thing as long as it's not frauds like, some famous companies, they're fairly steady. So that's, a failure is accepted, as part of the startup culture.

00:31:23:11 - 00:31:24:18

Joe Panetta

And it's very much accepted

00:31:24:18 - 00:31:43:11

Joe Panetta

as part of the startup culture. And, it it's accepted with some conditions around it. You know, the expectation is that if you fail, you can sit down and write down on a piece of paper the things that you did wrong and how you would do them differently the next time around. And that's that's the secret to getting funded the next time around is here's what I experienced.

00:31:43:11 - 00:31:59:00

Joe Panetta

Here's what I learned, because there's also some scientific learning that comes along with that. And, you know, of course, when a company fails, it doesn't mean that everything that they did fails, right? They they've got a body of research that they conducted, and that can potentially be carried forward as well.

00:31:59:02 - 00:32:00:05

Speaker 3

but,

00:32:00:07 - 00:32:10:20

Joe Panetta

Yes, the idea is learn, learn. If you've learned from those failures and you have something positive to carry forward, then you deserve the chance to to do it again.

00:32:10:22 - 00:32:28:01

Christian Soschner

Yeah, that's a great culture. you reach out to many ecosystems in the world, and I assume they very often probably ask the same question. and if you only could give them one piece of advice. if I can ask you, Joe, if would like to have

00:32:28:01 - 00:32:37:22

Christian Soschner

such a great ecosystem like you created in California. I saw in Austria, for example, or in Germany or in Sweden or anywhere else in the world.

00:32:38:24 - 00:32:48:19

Christian Soschner

What's the most important thing that they should take care of at the first step, to move towards, building such an ecosystem?

00:32:48:21 - 00:32:49:09

Joe Panetta

Well,

00:32:49:09 - 00:32:49:13

Joe Panetta

you.

00:32:49:13 - 00:32:52:02

Speaker 3

Know, I, I, I can't.

00:32:52:04 - 00:32:54:03

Joe Panetta

Emphasize enough what we just spoke about.

00:32:54:21 - 00:33:05:01

Joe Panetta

Acceptance of risk taking is enormous, right? Like it's not Austria or Germany or France alone. It's most of the rest of the.

00:33:05:01 - 00:33:05:23

Speaker 3

World where.

00:33:06:02 - 00:33:07:04

Joe Panetta

If you fail.

00:33:07:06 - 00:33:07:18

Speaker 3

You're done,

00:33:07:18 - 00:33:11:23

Joe Panetta

right. Yeah. it's it's that's the norm for the for

00:33:11:23 - 00:33:18:14

Joe Panetta

the most part. so I would, I would say that that's important, I think, you know, so that's my most important piece of advice.

00:33:18:16 - 00:33:20:12

Speaker 3

I think the.

00:33:20:12 - 00:33:22:00

Joe Panetta

Next piece of advice that.

00:33:22:01 - 00:33:26:04

Speaker 3

I have is, you know,

00:33:26:06 - 00:33:27:17

Joe Panetta

Create create.

00:33:27:17 - 00:33:30:00

Speaker 3

The.

00:33:30:02 - 00:33:33:03

Joe Panetta

training programs to have people who.

00:33:33:03 - 00:33:34:10

Speaker 3

Are.

00:33:34:12 - 00:33:36:07

Joe Panetta

Very skilled.

00:33:36:09 - 00:33:36:16

Speaker 3

And.

00:33:36:16 - 00:33:37:22

Joe Panetta

Working in.

00:33:37:22 - 00:33:41:14

Speaker 3

Biotech. and,

00:33:41:16 - 00:33:44:09

Joe Panetta

And those people are, you know, the people are what's going to get you.

00:33:44:09 - 00:33:45:12

Speaker 3

Mad.

00:33:45:14 - 00:33:57:03

Joe Panetta

so, you know, creating, creating the programs, you can try to import the talent by creating university programs to train people is really important. the other secret is.

00:33:57:05 - 00:33:58:14

Speaker 3

you have to have,

00:33:58:16 - 00:34:07:01

Joe Panetta

Not only the train people, but you have to have the research. And look there there are great, great research institutions in Germany and Austria and and all.

00:34:07:01 - 00:34:08:15

Speaker 3

Over the world. But you have to.

00:34:08:15 - 00:34:20:00

Joe Panetta

Be able to also transfer that research into technology into the hands of entrepreneurs to, to be successful and we don't see that happening in a lot of places.

00:34:20:02 - 00:34:42:23

Christian Soschner

When you look at the time management team, something one one difference that I perceived in the last 18 years was that European management teams of early stage founded companies are mostly scientific driven. and whenever I looked at an early stage company in the United States, science played a major role. But on both level and on the founder level.

00:34:42:23 - 00:34:54:02

Christian Soschner

I also saw that, people with, only business experience or liquid experience, part of these companies did. It gets the right perception,

00:34:54:02 - 00:35:05:19

Christian Soschner

out. Boss trusts my, my, my my focus group. Too smart is to create it that way. That, business is on a this skill in in in early stage companies more than in Europe.

00:35:05:21 - 00:35:06:14

Joe Panetta

Yes. I

00:35:06:14 - 00:35:12:23

Joe Panetta

think that's true. And you know, when I started here in biotech in the, in the late 80s, early 90s, we.

00:35:12:23 - 00:35:14:08

Speaker 3

Saw that.

00:35:14:08 - 00:35:25:03

Joe Panetta

One of the challenges that existed was that, most companies were started by scientific founders with no business experience. And what ended up happening was if they if they had.

00:35:25:04 - 00:35:25:24

Speaker 3

A.

00:35:25:24 - 00:35:27:09

Joe Panetta

Technology.

00:35:27:11 - 00:35:27:17

Speaker 3

that.

00:35:27:17 - 00:35:40:24

Joe Panetta

Looked like promising that like, it could be moved forward. Eventually a business person was going to have to be hired to run that company. That's the science person didn't have the background in business to to be able to do it.

00:35:41:01 - 00:35:42:14

Speaker 3

so, you know.

00:35:42:16 - 00:35:59:21

Joe Panetta

The thing that that impresses me more than anything these days is that don't people are being trained in across disciplines. Right? So we have we have people who have business training, but who also had a little bit of a science background as well.

00:36:00:23 - 00:36:23:23

Joe Panetta

And, you know, the CEO doesn't have to be the guy who can explain everything in the utmost detail on the science, but it sure helps to to have a little bit of a background in science. And so I think that's the evolution is that we've got a lot of people now running about companies and we've got we've got cross training programs, here in San Diego at UC San Diego, you know, where people can.

00:36:23:23 - 00:36:24:22

Speaker 3

Get,

00:36:24:24 - 00:36:28:06

Joe Panetta

Combination degrees in science and business at the same time.

00:36:28:10 - 00:36:30:01

Speaker 3

And I think that's I.

00:36:30:01 - 00:36:31:10

Joe Panetta

Think that's a successful way to move.

00:36:31:10 - 00:36:32:11

Speaker 3

Forward.

00:36:32:13 - 00:36:54:04

Christian Soschner

Yeah, absolutely. I, I couldn't agree more. I couldn't agree more. venture capital is it's, I think an interesting point. you mentioned tenant tech, and I remember that from the Genentech story that the initial seed funding was $100,000, in the 70s. But then now look at the internet. I mean, we had the $6 billion

00:36:54:04 - 00:36:55:08

Christian Soschner

series B round.

00:36:55:10 - 00:37:16:04

Christian Soschner

Amazing. Mind blowing. but also, when you look at the seed grants, California, I think it's 1 million, 2 million, 3 million, 4 million, 5 million. And it seems to grow every year. where does this capital come from? Why is, California so attractive for venture funding?

00:37:16:06 - 00:37:17:00

Joe Panetta

Well, look, I

00:37:17:00 - 00:37:19:24

Joe Panetta

think first of all, it's it's just the sheer magnitude.

00:37:20:03 - 00:37:20:11

Speaker 3

Of.

00:37:20:11 - 00:37:23:24

Joe Panetta

What we've got going on here that generates all that venture funding.

00:37:24:04 - 00:37:26:18

Speaker 3

Right.

00:37:26:20 - 00:37:32:01

Joe Panetta

A lot of it is just the fact that, we've got a lot of people who are turning over companies and.

00:37:32:03 - 00:37:32:21

Speaker 3

and then.

00:37:32:22 - 00:37:37:09

Joe Panetta

You know, have the ability to, to turn that into, into venture funding.

00:37:37:11 - 00:37:37:13

Speaker 3

you.

00:37:37:13 - 00:37:48:00

Joe Panetta

Know, a lot of exits that, you know, result in the venture, funds making, making more money as well. so it's it's kind of a well-oiled machine that, that, that.

00:37:48:01 - 00:37:48:10

Speaker 3

You know.

00:37:48:10 - 00:37:50:22

Joe Panetta

Kind of fuels itself and, and and it's.

00:37:50:22 - 00:37:51:06

Speaker 3

Growth.

00:37:51:12 - 00:38:04:23

Joe Panetta

I don't see a lot of venture capital. I don't see many venture capitalists from outside California coming and establishing themselves in California, to be honest. I think it's it's moved most of its organic growth here in.

00:38:04:23 - 00:38:06:03

Speaker 3

California.

00:38:06:05 - 00:38:14:16

Christian Soschner

Really, since it home was is basically home grown since, since the 50s.

00:38:14:18 - 00:38:16:16

Joe Panetta

Where's it come from now?

00:38:16:16 - 00:38:19:20

Christian Soschner

It's basically, home grown. So it's basically yeah, it's homegrown.

00:38:19:21 - 00:38:22:13

Joe Panetta

It's homegrown and it's a result of successes.

00:38:22:15 - 00:38:22:18

Speaker 3

And.

00:38:22:24 - 00:38:25:18

Joe Panetta

Many, many, you know, we've got.

00:38:25:20 - 00:38:26:18

Speaker 3

We've got.

00:38:26:20 - 00:38:29:21

Joe Panetta

Thousands and thousands of biotech companies in.

00:38:29:21 - 00:38:32:04

Speaker 3

California. And, you know,

00:38:32:06 - 00:38:37:04

Joe Panetta

We we see activity all the time around those companies being acquired or sold.

00:38:37:04 - 00:38:40:11

Speaker 3

Or, you know,

00:38:40:13 - 00:38:48:20

Joe Panetta

Going through an event that that generates a significant amount of significant amount of capital that can then be reinvested. It's a it's a just a huge.

00:38:48:22 - 00:38:50:24

Speaker 3

Machine.

00:38:51:01 - 00:39:01:08

Christian Soschner

And it keeps growing and it keeps delivering. And it attracts a lot of talent from, from, from all over the world, which I think also helps developing, then the talent base in

00:39:01:08 - 00:39:05:14

Christian Soschner

California. So in, a machine that's just working. It keeps working.

00:39:05:16 - 00:39:07:02

Joe Panetta

Yeah, yeah. You know,

00:39:07:08 - 00:39:13:07

Joe Panetta

I mentioned Los Angeles, which is still kind of a fledgling biotech cluster, although it brings in.

00:39:13:21 - 00:39:19:16

Joe Panetta

More research dollars from our federal government for for bioscience research and then down here in San.

00:39:19:17 - 00:39:23:06

Speaker 3

Diego. but, you know.

00:39:23:08 - 00:39:30:00

Joe Panetta

We talk about Californian venture in California. Well, the problem Los Angeles had a few years ago was that companies would be formed. And then.

00:39:30:02 - 00:39:30:20

Speaker 3

The, the, the.

00:39:30:20 - 00:39:42:01

Joe Panetta

All the venture capital investment was up in San Francisco or maybe down in San Diego. And so those companies would get to a certain stage, and then the venture capitalist would say, well, now you need to move.

00:39:42:03 - 00:39:42:08

Speaker 3

Out.

00:39:42:08 - 00:39:51:00

Joe Panetta

Of Los Angeles. and so Los Angeles just wasn't growing until one of the venture capitalists up in San Francisco.

00:39:51:02 - 00:39:51:06

Speaker 3

Who.

00:39:51:06 - 00:39:53:21

Joe Panetta

Happened to be from Los Angeles, decided to move.

00:39:53:21 - 00:39:54:17

Speaker 3

Back and.

00:39:54:20 - 00:40:01:11

Joe Panetta

And start a $500 million venture fund in Los Angeles to fund Los Angeles companies.

00:40:01:13 - 00:40:09:20

Christian Soschner

Is this is it? I mean, for from from the Austrian perspective, it's just California. So it's is really so low key venture funding can be seen in 2024.

00:40:09:20 - 00:40:20:17

Christian Soschner

that, venture capitalists from Los Angeles like to invest in Los Angeles. Venture capitalists from San Francisco like to invest in San Francisco and, from San Diego. Devices like to invest in Seattle, San Diego.

00:40:20:17 - 00:40:23:18

Christian Soschner

Is it still sell okay.

00:40:23:20 - 00:40:27:03

Joe Panetta

I think, I think

00:40:27:03 - 00:40:34:03

Joe Panetta

venture capitalists in California like to invest in California is the best way I can put it. you know,

00:40:34:05 - 00:40:55:12

Joe Panetta

Fortunately for for us down here, we've got a pretty mature biotech industry, so we're able to we don't have an enormous amount of venture capital present in San Diego. So we're our companies are able to attract a lot of that venture capital from the Bay area. and to some extent from the East Coast as well, Boston and other places.

00:40:55:14 - 00:40:55:21

Speaker 3

but.

00:40:55:21 - 00:41:06:00

Joe Panetta

I think for the most part, the venture capitalists here in California, well, we'll just invest in in California, the venture capital people in San Francisco tell me.

00:41:06:06 - 00:41:07:07

Speaker 3

That,

00:41:07:09 - 00:41:11:19

Joe Panetta

They, they consider San Diego to be basically in their backyard.

00:41:12:20 - 00:41:31:02

Joe Panetta

Now, I did say, you know, that was one of the things that happened, Los Angeles, was that companies would get to a certain size and and they'd have to leave. But that was a different reason. That was because they didn't have the mature talent to take the company forward. So the venture capitalists would say, now you need to move where the talent is.

00:41:31:04 - 00:41:38:15

Christian Soschner

That's good to know. It means for, companies from Europe when they want to be attractive for

00:41:38:15 - 00:41:49:07

Christian Soschner

venture capital funds in California, it would be a smart thing to do to open an office in California, somewhere with people parking there.

00:41:49:09 - 00:41:50:10

Joe Panetta

Yes. And

00:41:50:10 - 00:41:54:22

Joe Panetta

I think, as I, as I mentioned, we're very impressed with.

00:41:54:22 - 00:41:55:06

Speaker 3

What.

00:41:55:11 - 00:41:57:17

Joe Panetta

We're seeing in Korea.

00:41:58:03 - 00:41:59:10

Joe Panetta

Where the Korean.

00:41:59:12 - 00:42:00:02

Speaker 3

Biotech.

00:42:00:02 - 00:42:02:06

Joe Panetta

Companies, in partnership with the Korean.

00:42:02:06 - 00:42:04:17

Speaker 3

Government,

00:42:04:19 - 00:42:13:23

Joe Panetta

Are saying we know that our companies need to have an office in California, and I don't see that from too many places.

00:42:14:00 - 00:42:34:13

Christian Soschner

Nope. I can agree, I can agree, but it's necessary posturing, say, for European companies. I think that the main story is take a trip for two months to San Francisco and hope that they attract the VC and then fly home with the money in the suitcase and invest it in Austria and they don't come looking for the company.

00:42:34:19 - 00:42:37:01

Christian Soschner

That's not exactly what I did, but stay solid

00:42:37:01 - 00:42:55:22

Christian Soschner

is if it wants to be attractive to business in California, open an office, start working there. Be part of the ecosystem, transfer part of the company to California, and devices are likely to invest if the product is good, if the team is good, to grow the American story.

00:42:55:24 - 00:42:56:14

Joe Panetta

absolutely.

00:42:56:14 - 00:43:09:13

Joe Panetta

And and look, I'm not going to be shy about saying the added benefit is the the organization that I run that's been around for 30 years now and provides the access to capital and provides, some of the help with.

00:43:10:13 - 00:43:18:12

Joe Panetta

Working with the government agencies and, and has a, an arm that, works to get people trained to work in the industry.

00:43:18:14 - 00:43:19:16

Speaker 3

and, you know, the.

00:43:19:16 - 00:43:22:07

Joe Panetta

Number of different conferences and events that we have.

00:43:22:10 - 00:43:23:13

Speaker 3

That both.

00:43:23:15 - 00:43:28:00

Joe Panetta

Give people more knowledge and give people the opportunity to.

00:43:28:02 - 00:43:29:01

Speaker 3

create.

00:43:29:03 - 00:43:31:09

Joe Panetta

Partnerships with, with others.

00:43:31:11 - 00:43:43:09

Christian Soschner

So you have, a program at buyouts, there are European VCs and Terrapin entrepreneurs, can talk with people from bio com or get the

00:43:43:09 - 00:43:51:22

Christian Soschner

training at Viacom on how to raise funds in the United States and how to start a business and office.

00:43:51:24 - 00:43:52:20

Joe Panetta

Well,

00:43:53:05 - 00:43:55:23

Joe Panetta

We haven't gotten to that stage yet.

00:43:56:00 - 00:43:56:23

Speaker 3

But we have a.

00:43:56:23 - 00:44:06:01

Joe Panetta

Meeting that we've done for more than a dozen years called on the Global Partnering and Investor Conference that takes place at the end of February every year here in San.

00:44:06:01 - 00:44:09:17

Speaker 3

Diego. and my charge.

00:44:09:19 - 00:44:19:10

Joe Panetta

Because one of the things that I focus most, I am I see your role is our international relationships, our international strategy. my my charge is to get more.

00:44:19:12 - 00:44:20:07

Speaker 3

Of.

00:44:20:09 - 00:44:34:16

Joe Panetta

the companies from outside the U.S. to come to the Global Partner investor conference, because it's a great opportunity for them to seek funding, to hear from experts, to create licensing partnerships as well.

00:44:35:18 - 00:44:50:18

Joe Panetta

I think the next important step is to to establish an office here, because we do have programs, one that we're just launching in San Diego, where CEOs can come and be around other CEOs and learn from them.

00:44:50:20 - 00:45:02:02

Christian Soschner

Now, it's good to know. It's good to know. So everybody who listens to this episode should reach out to Viacom, if they want to do something in California and, participate in your events and, get access to the

00:45:02:02 - 00:45:04:13

Christian Soschner

ecosystem, direct access.

00:45:04:15 - 00:45:06:02

Joe Panetta

Absolutely.

00:45:06:04 - 00:45:21:20

Christian Soschner

When we switch the conversation, when we move to bio, it's coming to San Diego. It's, on the a few days next week. can you give an overview of what's to be expected in this year's bio?

00:45:21:22 - 00:45:23:00

Joe Panetta

Well, I think there's some

00:45:23:00 - 00:45:24:21

Joe Panetta

interesting topics this year.

00:45:24:23 - 00:45:26:12

Speaker 3

right. Com you.

00:45:26:12 - 00:45:27:19

Joe Panetta

Know, we've had some.

00:45:27:21 - 00:45:28:03

Speaker 3

we've.

00:45:28:03 - 00:45:31:23

Joe Panetta

Had some interesting developments within our government with regard to relationships in.

00:45:31:23 - 00:45:33:08

Speaker 3

China.

00:45:33:10 - 00:45:36:15

Joe Panetta

and I think there's going to be a lot of discussion around that.

00:45:36:17 - 00:45:37:00

Speaker 3

you know.

00:45:37:00 - 00:45:38:11

Joe Panetta

The, the security.

00:45:38:11 - 00:45:39:01

Speaker 3

Of.

00:45:39:03 - 00:45:42:08

Joe Panetta

not only the security of our genetic information, but the security of our supply.

00:45:42:08 - 00:45:45:17

Speaker 3

Chain, and going, going forward.

00:45:45:19 - 00:45:51:23

Joe Panetta

and so it's not I don't expect that it's going to be as much of a political discussion as it's going to be.

00:45:53:00 - 00:45:58:06

Joe Panetta

For all of the people who come here, an opportunity to look at alternatives.

00:45:58:08 - 00:45:58:16

Speaker 3

Right?

00:45:58:22 - 00:46:01:10

Joe Panetta

Where else can they go? Who else can they work with?

00:46:01:12 - 00:46:02:06

Speaker 3

And then what?

00:46:02:08 - 00:46:05:10

Joe Panetta

We'll see. A huge delegation from Korea.

00:46:05:12 - 00:46:05:24

Speaker 3

well, we'll.

00:46:05:24 - 00:46:08:04

Joe Panetta

See a delegation from India.

00:46:08:06 - 00:46:08:12

Speaker 3

we'll.

00:46:08:12 - 00:46:10:20

Joe Panetta

We'll see delegations from across.

00:46:10:20 - 00:46:11:23

Speaker 3

Europe.

00:46:12:00 - 00:46:12:18

Joe Panetta

and so.

00:46:12:20 - 00:46:14:09

Speaker 3

You know, I think, one.

00:46:14:09 - 00:46:17:01

Joe Panetta

Of the things that that I think is going to happen this year is that.

00:46:17:03 - 00:46:17:14

Speaker 3

Companies.

00:46:17:14 - 00:46:25:03

Joe Panetta

Are going to be here searching for secure alternatives that they can that they can turn to for manufacturing, for research, for.

00:46:25:03 - 00:46:26:02

Speaker 3

API.

00:46:26:04 - 00:46:34:14

Joe Panetta

for, for other kinds of things. And they can't be solely dependent on China for great. so I think that's going to be,

00:46:34:16 - 00:46:35:04

Speaker 3

A very.

00:46:35:04 - 00:46:35:12

Joe Panetta

Important.

00:46:35:12 - 00:46:36:17

Speaker 3

Discussion. And I.

00:46:36:17 - 00:46:37:16

Joe Panetta

Think the other thing that.

00:46:38:15 - 00:46:39:14

Joe Panetta

I'm I'm looking forward.

00:46:39:14 - 00:46:40:19

Speaker 3

To.

00:46:40:21 - 00:46:42:20

Joe Panetta

at this meeting is,

00:46:42:22 - 00:46:46:09

Speaker 3

That we, we begin to look at,

00:46:46:12 - 00:46:54:19

Joe Panetta

How we can, we can, use these new technologies, to create.

00:46:54:21 - 00:46:55:22

Speaker 3

more, more.

00:46:56:02 - 00:46:58:11

Joe Panetta

Efficient drug development processes.

00:46:58:11 - 00:46:59:20

Joe Panetta

We've talked about it for a long.

00:46:59:20 - 00:47:00:11

Speaker 3

Time, but I know.

00:47:00:11 - 00:47:03:11

Joe Panetta

That there's going to be a lot of discussion at this meeting.

00:47:03:13 - 00:47:03:18

Speaker 3

and.

00:47:03:19 - 00:47:06:11

Joe Panetta

I and analytical tools as well.

00:47:07:04 - 00:47:10:10

Joe Panetta

But, you know, the biggest thing I'm looking forward to is.

00:47:10:12 - 00:47:13:16

Speaker 3

there's a little, little known fact that, each.

00:47:13:18 - 00:47:14:16

Joe Panetta

Year that they.

00:47:14:18 - 00:47:16:05

Speaker 3

Bio,

00:47:16:07 - 00:47:20:01

Joe Panetta

They get something like 50% turnover in the, in the attendance, new people.

00:47:20:04 - 00:47:21:00

Speaker 3

Right.

00:47:21:02 - 00:47:23:22

Joe Panetta

So new people coming to San Diego.

00:47:23:24 - 00:47:24:03

Speaker 3

do.

00:47:24:03 - 00:47:26:19

Joe Panetta

People see what we have here in San Diego?

00:47:26:21 - 00:47:28:04

Speaker 3

And, I look forward.

00:47:28:04 - 00:47:29:02

Joe Panetta

To meeting those people.

00:47:29:02 - 00:47:30:02

Speaker 3

And, to.

00:47:30:02 - 00:47:33:00

Joe Panetta

To talking to them about why they should be here.

00:47:33:02 - 00:48:04:15

Christian Soschner

Yeah. 20,000 is impressive. 15,000, I think last announcement last year for Boston. And then after that, I heard it was 18,000. that it keeps growing and growing and growing and also the the presence of global organizations, is pretty impressive. So I think it was on Tuesday that there is a global Biohub showcase with a lot of European power hubs, Asian hubs and also other hubs, globally.

00:48:04:17 - 00:48:05:18

Christian Soschner

When I turn the

00:48:05:18 - 00:48:20:17

Christian Soschner

question that asks you before a little bit around, is there also something that California did about tech? our tech industry in California can learn from how their systems.

00:48:20:19 - 00:48:22:02

Joe Panetta

Yeah, I think I think

00:48:22:02 - 00:48:34:12

Joe Panetta

there is I think, one of the reasons that we even began this international program, is that a lot of biotech companies in California, especially in the early to mid stage ones.

00:48:35:13 - 00:48:37:11

Joe Panetta

Don't have the ability.

00:48:37:13 - 00:48:38:07

Speaker 3

To.

00:48:38:09 - 00:48:41:17

Joe Panetta

gain exposure to these other clusters around the.

00:48:41:17 - 00:48:44:13

Speaker 3

World. and, so I.

00:48:44:13 - 00:48:45:24

Joe Panetta

Think one of the and one of the benefits of.

00:48:45:24 - 00:48:47:03

Speaker 3

Having bio.

00:48:47:03 - 00:48:55:09

Joe Panetta

Here in San Diego is that companies in San Diego don't have to go to Europe, don't have to go to Asia.

00:48:55:11 - 00:48:55:15

Speaker 3

to.

00:48:55:15 - 00:48:59:21

Joe Panetta

Begin to to know the people in those biotech clusters and.

00:49:00:08 - 00:49:05:20

Joe Panetta

And to begin to, you know, potentially create relationships with, with them,

00:49:05:22 - 00:49:07:23

Speaker 3

You know, great, great depth.

00:49:08:00 - 00:49:11:07

Joe Panetta

Great science exists all over the world. And so.

00:49:11:09 - 00:49:12:11

Speaker 3

You know, we.

00:49:12:11 - 00:49:18:20

Joe Panetta

We talk about what what can our companies learn from from Europe? they're potentially going to learn.

00:49:19:07 - 00:49:22:17

Joe Panetta

About science that maybe we don't have here in California.

00:49:22:19 - 00:49:24:09

Christian Soschner

Proper regulation.

00:49:24:11 - 00:49:27:13

Speaker 3

Yeah, yeah.

00:49:27:15 - 00:49:49:11

Christian Soschner

there was one part that I really liked in the program. if it was and I think ten years ago or 12 years ago when I heard, his speech the first time, that he started with, why it makes sense to make your bet every morning. And it's, Admiral McRaven and I love his speeches.

00:49:49:15 - 00:50:05:00

Christian Soschner

Navy Seals. You have, in San Diego, I think, it's see which base of the US Navy. What was the motivation to invite McRaven to bio this year?

00:50:05:02 - 00:50:05:10

Joe Panetta

I

00:50:05:12 - 00:50:06:16

Joe Panetta

Think it's the same thing.

00:50:09:08 - 00:50:13:16

Joe Panetta

You know, as I said, there's there's turnover, and the attendance.

00:50:14:18 - 00:50:16:19

Joe Panetta

He's also a national security expert.

00:50:16:19 - 00:50:19:24

Speaker 3

So, you know, maybe they'll be maybe there was a little.

00:50:19:24 - 00:50:22:09

Joe Panetta

Bit of motivation around some of the challenges with China.

00:50:22:09 - 00:50:25:20

Speaker 3

Right now and having him come here. I.

00:50:25:20 - 00:50:27:05

Joe Panetta

Think people are going to be interested.

00:50:27:05 - 00:50:31:12

Speaker 3

In hearing that. but, you know, I, I.

00:50:31:13 - 00:50:34:13

Joe Panetta

Remember I remember that presentation he made about making your.

00:50:34:13 - 00:50:38:12

Speaker 3

Bed every morning, and,

00:50:38:14 - 00:50:40:19

Joe Panetta

I think it's important for, for.

00:50:40:21 - 00:50:41:17

Speaker 3

people in.

00:50:41:17 - 00:50:47:03

Joe Panetta

In the industry to hear that message. because, you know, as I said.

00:50:47:03 - 00:50:51:14

Speaker 3

I, when I came here from a.

00:50:51:14 - 00:50:52:12

Joe Panetta

Large pharmaceutical.

00:50:52:12 - 00:50:54:13

Speaker 3

Company, one of.

00:50:54:13 - 00:50:58:01

Joe Panetta

The reasons that I left was the bureaucracy and.

00:50:58:01 - 00:51:00:02

Speaker 3

The intense, you know, the.

00:51:00:02 - 00:51:01:22

Joe Panetta

Processes and everything else.

00:51:01:22 - 00:51:03:01

Speaker 3

But then they got.

00:51:03:01 - 00:51:04:08

Joe Panetta

Here and I realized

00:51:04:08 - 00:51:13:00

Joe Panetta

that, a lot of biotech companies were just kind of a wild West, you know, just kind of come to work each day and

00:51:13:00 - 00:51:18:07

Joe Panetta

decide what you're going to do, what you're going to discover, which is great. Right? But you

00:51:18:07 - 00:51:20:09

Joe Panetta

need a little bit of discipline to.

00:51:20:11 - 00:51:32:06

Christian Soschner

Yeah, that's true. I couldn't agree more. Couldn't agree more. I really like when it stops, when, when you see a ping pong machine, it's like, okay, it's a place to work, not to make.

00:51:32:08 - 00:51:34:02

Joe Panetta

Yeah.

00:51:34:04 - 00:51:35:15

Christian Soschner

When we look at

00:51:35:15 - 00:51:54:12

Christian Soschner

convergence and, we talked a little bit about artificial intelligence in, at the beginning of this, conversation. Can we dive, a bit, deeper today I read on the internet stats, but you had also with, the internet beginning of the internet in the 90s, I think, done with blockchain and Bitcoin was the same.

00:51:54:14 - 00:52:19:09

Christian Soschner

And now with artificial intelligence, people think sometimes are exaggerated in a way that people could be replaced. Artificial intelligence will take over all our jobs, track development, for example. It could be fully automated. how do you envision the future in in biotech with artificial intelligence to with do you believe it's possible at one point in time that some robots and artificial intelligence that's already had spoken

00:52:19:09 - 00:52:22:21

Christian Soschner

drug development, that you just need to push a button?

00:52:22:21 - 00:52:29:07

Christian Soschner

And, at the end of the day, we get new drugs without human intervention.

00:52:29:09 - 00:52:30:24

Joe Panetta

you know, Christine, I don't know. We'll

00:52:30:24 - 00:52:32:23

Joe Panetta

see that in my lifetime.

00:52:33:00 - 00:52:34:07

Speaker 3

I, you know.

00:52:34:07 - 00:52:35:07

Joe Panetta

When I think about.

00:52:36:06 - 00:52:43:14

Joe Panetta

The, the, the scientific accomplishments and the progress that we've made just in the 30 years that I've been in biotech.

00:52:43:16 - 00:52:44:05

Speaker 3

I, I.

00:52:44:06 - 00:52:48:05

Joe Panetta

Can I can certainly not sit here and say, oh, no, I don't think that will ever happen.

00:52:48:07 - 00:52:51:14

Speaker 3

Right. I, I.

00:52:51:14 - 00:52:58:09

Joe Panetta

Would never have dreamt that we could see sequenced. The human genome is and do it as quickly as we can now.

00:52:58:11 - 00:52:59:04

Speaker 3

Right.

00:52:59:06 - 00:53:01:10

Joe Panetta

So I you know, but at the same.

00:53:01:10 - 00:53:03:02

Speaker 3

Time,

00:53:03:04 - 00:53:11:19

Joe Panetta

You know, artificial intelligence, at least right now, is only as good as what you programed into it. Right. And then it can do the calculations.

00:53:11:19 - 00:53:13:10

Speaker 3

But, you know, I.

00:53:13:11 - 00:53:22:12

Joe Panetta

Remember having this conversation back 25 years ago when robotics came into play in drug discovery, and all the scientists were going to be replaced by robots.

00:53:22:14 - 00:53:23:04

Speaker 3

Right?

00:53:23:06 - 00:53:26:21

Joe Panetta

But that's not the case. The scientists are sitting in the laptop.

00:53:27:17 - 00:53:35:15

Joe Panetta

Controlling the experiments and, and and looking at the data that's coming out of the experiments. The people are going to always have to be involved to like.

00:53:35:17 - 00:53:35:24

Speaker 3

You know.

00:53:35:24 - 00:53:39:13

Joe Panetta

The bottom line is that I think as we make progress.

00:53:39:15 - 00:53:39:19

Speaker 3

In.

00:53:39:19 - 00:53:46:07

Joe Panetta

Technology over the years, we've not just not just talking about this field, but we've we've replaced.

00:53:46:07 - 00:53:48:23

Speaker 3

People and then we, you know, and then.

00:53:48:23 - 00:53:52:05

Joe Panetta

We find a different opportunity for them somewhere else.

00:53:52:07 - 00:53:54:02

Speaker 3

Right?

00:53:54:04 - 00:53:54:21

Christian Soschner

Yeah. I think,

00:53:54:21 - 00:54:06:17

Christian Soschner

as an Austrian, maybe I can say that you also replace the governor of California with a robot with Arnold Schwarzenegger. he played 1984 Terminator.

00:54:06:19 - 00:54:09:12

Joe Panetta

he's he's great. He was a big supporter of the industry.

00:54:09:14 - 00:54:13:06

Christian Soschner

Really? Well, what? But is work in that area?

00:54:13:08 - 00:54:13:18

Joe Panetta

You know,

00:54:13:18 - 00:54:14:04

Speaker 3

00:54:14:06 - 00:54:23:22

Joe Panetta

He I think more so than anything else, realized he's a business guy, right? Not just an actor business guy. and he realized that the.

00:54:23:24 - 00:54:25:10

Speaker 3

the the value of.

00:54:25:10 - 00:54:42:12

Joe Panetta

What we were doing. And, up until that time, state government did not have anybody, who was strictly focused on helping the biotech industry, to succeed. And so he actually created an office to.

00:54:42:14 - 00:54:42:19

Speaker 3

to.

00:54:42:20 - 00:54:44:16

Joe Panetta

To work with the biotech industry.

00:54:45:17 - 00:54:50:06

Joe Panetta

To help in that greater access to his office. Greater, greater access to to the.

00:54:50:06 - 00:54:53:10

Speaker 3

Up to the the,

00:54:53:12 - 00:55:01:05

Joe Panetta

Offices in the in the in the state capital. He he came to bio, at least once, maybe, maybe twice.

00:55:01:07 - 00:55:01:16

Speaker 3

and.

00:55:01:20 - 00:55:02:03

Joe Panetta

Spoke.

00:55:02:03 - 00:55:04:13

Speaker 3

At bio. our current governor.

00:55:04:15 - 00:55:05:15

Joe Panetta

Has no interest in coming.

00:55:05:15 - 00:55:07:07

Speaker 3

To bio.

00:55:07:09 - 00:55:13:17

Joe Panetta

And that's not been true about every governor. But this governor doesn't seem to take what we

00:55:13:17 - 00:55:18:24

Joe Panetta

do. the value of what we do seriously.

00:55:19:01 - 00:55:20:17

Christian Soschner

Yeah. I mean, so it's a.

00:55:20:17 - 00:55:22:06

Joe Panetta

Negative.

00:55:22:08 - 00:55:40:20

Christian Soschner

Yeah. It's also a great success story. I mean, I wasn't I grew up in, in, in Austria and, really had big success in the United States. And I think this is also possible, thanks to your ecosystem that you have built and such success stories also for foreigners are possible in the United States.

00:55:41:06 - 00:55:42:02

Joe Panetta

Took a risk.

00:55:42:05 - 00:55:44:10

Speaker 3

I mean, you're right.

00:55:44:12 - 00:55:47:11

Joe Panetta

We started out as a bodybuilder, but,

00:55:47:13 - 00:55:49:05

Speaker 3

One thing led to the next.

00:55:49:07 - 00:55:56:12

Christian Soschner

And at the end of the day, as you mentioned, I mean, he supported biotech and, helped, your industry also thrive in California.

00:55:56:14 - 00:55:57:07

Speaker 3

Yeah.

00:55:57:09 - 00:55:58:01

Joe Panetta

Absolutely.

00:55:58:04 - 00:56:00:00

Speaker 3

In fact, when we,

00:56:00:02 - 00:56:03:07

Joe Panetta

So we've got an, an initiative here that.

00:56:04:04 - 00:56:07:17

Joe Panetta

Has created our stem cell state stem cell agency.

00:56:07:19 - 00:56:08:14

Speaker 3

which,

00:56:08:16 - 00:56:09:21

Joe Panetta

Altogether.

00:56:10:19 - 00:56:30:03

Joe Panetta

Since its inception in 2004, has been funded. I've got around $8.5 billion to provide grants for stem cell research. This was, in 2004. This was what we call a citizens initiative, which basically means that, you can you can place things on the ballot in November for people to vote on. If you can get enough.

00:56:30:19 - 00:56:34:10

Joe Panetta

If you can get enough petition votes to have it placed on the ballot.

00:56:34:12 - 00:56:35:13

Speaker 3

And, and then.

00:56:35:17 - 00:56:39:22

Joe Panetta

You know, if it passes, it becomes law. And so you circumvent the legislature.

00:56:39:24 - 00:56:41:01

Speaker 3

But,

00:56:41:06 - 00:56:44:22

Joe Panetta

In 2004, he was governor and he supported,

00:56:44:22 - 00:56:46:19

Joe Panetta

the stem cell initiative back.

00:56:47:08 - 00:57:02:03

Christian Soschner

That's great. What how how would you. But again, collaboration between government, the public sector and biotechs, how should how would it look like?

00:57:02:05 - 00:57:02:21

Joe Panetta

It has

00:57:02:21 - 00:57:06:15

Joe Panetta

be a collaborative relationship between the two.

00:57:06:17 - 00:57:08:22

Speaker 3

and, now, this is one.

00:57:08:22 - 00:57:16:02

Joe Panetta

Of the things that, that, more recently I felt that we've where, we've, where our state government has fallen short.

00:57:16:04 - 00:57:17:22

Speaker 3

Right.

00:57:17:24 - 00:57:22:07

Joe Panetta

You know, we have a $415 billion biotech industry.

00:57:22:07 - 00:57:26:10

Speaker 3

In California, and we have not one.

00:57:26:12 - 00:57:37:02

Joe Panetta

Individual in the governor's office is focused on giving it international attention, focused on helping it to raise money.

00:57:37:04 - 00:57:38:21

Speaker 3

No, none of that. Do we.

00:57:38:21 - 00:57:40:00

Joe Panetta

Have any support.

00:57:40:02 - 00:57:40:16

Speaker 3

Apart from.

00:57:40:16 - 00:57:41:17

Joe Panetta

Our governor's office?

00:57:41:17 - 00:57:44:12

Speaker 3

And,

00:57:44:14 - 00:57:51:06

Joe Panetta

It's a shame because it's, such and such a shining part of the economy.

00:57:51:08 - 00:57:51:15

Speaker 3

And.

00:57:51:15 - 00:57:53:08

Joe Panetta

One that we could,

00:57:53:10 - 00:57:54:06

Speaker 3

You know.

00:57:54:08 - 00:57:55:00

Joe Panetta

Not only brag.

00:57:55:00 - 00:57:58:24

Speaker 3

About, but, could could, through.

00:57:58:24 - 00:58:00:08

Joe Panetta

A partnership with government.

00:58:00:14 - 00:58:00:22

Speaker 3

Could.

00:58:00:22 - 00:58:03:03

Joe Panetta

Help it to be more successful.

00:58:03:05 - 00:58:03:09

Speaker 3

in.

00:58:03:09 - 00:58:05:00

Joe Panetta

Other parts, the United States.

00:58:05:02 - 00:58:06:03

Speaker 3

Can even.

00:58:06:05 - 00:58:08:00

Joe Panetta

Draw companies here to California.

00:58:08:06 - 00:58:08:21

Speaker 3

From other parts.

00:58:08:21 - 00:58:17:24

Joe Panetta

Of the United States. So we don't see we don't see that happening. But I think where we see government and industry working closely together.

00:58:18:01 - 00:58:21:24

Speaker 3

more on a local level, economic development.

00:58:22:01 - 00:58:25:23

Joe Panetta

building biotech clusters, building biotech facilities.

00:58:26:17 - 00:58:29:22

Joe Panetta

There has to be a good relationship there between local government.

00:58:30:06 - 00:58:33:24

Joe Panetta

And the biotech companies to get those facilities permitted.

00:58:34:01 - 00:58:34:07

Speaker 3

and.

00:58:34:11 - 00:58:37:16

Joe Panetta

to get them built. So I think I think that's important.

00:58:37:18 - 00:58:37:22

Speaker 3

I.

00:58:37:22 - 00:58:40:16

Joe Panetta

Think the other thing is, the relationship.

00:58:41:24 - 00:58:43:24

Joe Panetta

On the regulatory side has to be.

00:58:43:24 - 00:58:45:02

Speaker 3

One of.

00:58:45:02 - 00:58:46:07

Joe Panetta

Of collaboration.

00:58:46:11 - 00:58:47:10

Speaker 3

And,

00:58:47:12 - 00:58:51:09

Joe Panetta

You know, in our, in our AI conference, I heard a couple of people say.

00:58:51:11 - 00:58:52:14

Speaker 3

you know,

00:58:52:16 - 00:58:53:23

Joe Panetta

FDA is your friend.

00:58:54:00 - 00:58:54:05

Speaker 3

And.

00:58:54:05 - 00:59:07:14

Joe Panetta

FDA is enthusiastic about working with you. And, of course it is. I used to be a regulatory person, when you bring them exciting things. So as people get excited, they're they're not just sitting there being bored to death day in and day out.

00:59:07:16 - 00:59:08:01

Speaker 3

you know, with.

00:59:08:01 - 00:59:08:16

Joe Panetta

Nothing to do.

00:59:08:16 - 00:59:10:00

Speaker 3

They they what.

00:59:10:04 - 00:59:11:17

Joe Panetta

New and exciting things to look.

00:59:11:17 - 00:59:12:03

Speaker 3

At.

00:59:12:05 - 00:59:13:01

Joe Panetta

And so you give.

00:59:13:01 - 00:59:13:24

Speaker 3

Them that.

00:59:14:01 - 00:59:15:02

Joe Panetta

Obviously you have to give.

00:59:15:02 - 00:59:16:10

Speaker 3

Them the,

00:59:16:12 - 00:59:23:07

Joe Panetta

The, the assurance that those products are safe and that I think, government has a.

00:59:23:07 - 00:59:25:00

Speaker 3

Role in helping.

00:59:25:00 - 00:59:30:14

Joe Panetta

To advance new healthcare technologies and move them into the hands of patients. And the industry should have that.

00:59:30:14 - 00:59:33:07

Speaker 3

Partnership with government.

00:59:33:09 - 01:00:00:07

Christian Soschner

So it's fantastic talking to you. I just had, I look at the clock and we are already one hour in the conversation. I really love that. And I remember that, your colleagues mentioned that you have, some meetings afterwards, and, that we have, one hour today. Before I ask my final question, is there any topic that you would like to address at the end of our conversation?

01:00:00:09 - 01:00:03:19

Joe Panetta

No, I don't think so. I think we've covered a lot.

01:00:03:21 - 01:00:17:12

Christian Soschner

One final question to DC aspire for the fan events. I remember 2022, if, it was on the aircraft carrier, yes. and then surprisingly,

01:00:17:12 - 01:00:39:19

Christian Soschner

I mean, it was a great party. And surprisingly, I think it's at 10:00, cooling taking place on the carrier. That was completely unexpected. States. you have such a great, great fan event also planned for bio. What are the fun events this year that people can expect when they come to San Diego next week?

01:00:39:21 - 01:00:42:11

Joe Panetta

Well, it's I think

01:00:42:11 - 01:00:43:24

Joe Panetta

of the fun events that.

01:00:44:12 - 01:00:58:17

Joe Panetta

That we're doing is a concert ourselves, that will be behind the convention center, a brand new facility called the Radio Shell. it's going to be first come, first serve, limited attendance.

01:00:58:19 - 01:00:59:22

Speaker 3

but,

01:00:59:24 - 01:01:03:24

Joe Panetta

It's it's going to be, we have a band called the World Band that I plan.

01:01:04:01 - 01:01:05:19

Speaker 3

That will that will perform.

01:01:05:21 - 01:01:07:04

Joe Panetta

so we've got, we've.

01:01:07:04 - 01:01:08:04

Speaker 3

Got,

01:01:08:06 - 01:01:15:13

Joe Panetta

Musicians from primarily from Japan and from here in San Diego in the, in the world band.

01:01:15:15 - 01:01:18:06

Speaker 3

so we'll we'll do a little warm up.

01:01:18:08 - 01:01:22:12

Joe Panetta

And then, we'll have a concert with a group called the Plain White T's.

01:01:22:14 - 01:01:23:15

Speaker 3

who are,

01:01:23:17 - 01:01:27:24

Joe Panetta

You know, pretty famous during the 90s, they, they had a big head called Delilah.

01:01:28:01 - 01:01:28:20

Speaker 3

and,

01:01:28:22 - 01:01:30:06

Joe Panetta

So that I think that'll be a lot of.

01:01:30:06 - 01:01:31:00

Speaker 3

Fun.

01:01:31:02 - 01:01:32:05

Joe Panetta

As well.

01:01:32:07 - 01:01:32:24

Christian Soschner

Yeah, I believe

01:01:32:24 - 01:01:54:08

Christian Soschner

I believe that, San Diego is worth a trip. great city, great biotech industry. So thank you very much for your time. I enjoyed our conversation very much. Thank you for making things happen on short notice. We had until a few days to to prepare that. and, let's catch up, soon and see how biotech industry in California evolves.

01:01:54:10 - 01:01:59:07

Joe Panetta

Thanks, Christine. I look forward to catching up soon, and I've really enjoyed the conversation with you today.

01:01:59:07 - 01:02:05:14

Christian Soschner

Thank you Chuck, have a great day and have a fun week next week in San Diego via.

01:02:05:16 - 01:02:08:09

Joe Panetta

Thanks. Thanks a lot. I look forward to it.

01:02:08:11 - 01:02:09:10

Christian Soschner

Bye bye.

01:02:11:11 - 01:02:20:19

Christian Soschner

As we wrap up today's episode. Let's recap some of the key highlights from our conversation with Chuck Panetta.

01:02:20:19 - 01:02:40:23

Christian Soschner

We explored how California's unique culture of risk taking drives biotech innovation, discussed the critical role of new technologies in drug development, and the taking over collaborations that are shaping the future of the industry.

01:02:40:23 - 01:03:06:09

Christian Soschner

I hope you found these insights as valuable and inspiring as I did. If you enjoyed the episode, please like, comment and share it with your network. Your support helps us attract more influential speakers like Joe Panetta, and continue delivering insightful content for free.

01:03:06:09 - 01:03:13:24

Christian Soschner

Remember, the future of biotech is being shaped by those who dare to take risks and innovate.

01:03:13:24 - 01:03:26:12

Christian Soschner

Stay curious, stay bold, and let's keep pushing the boundaries of what's possible. Thanks for tuning in and we will see you in the next episode.