Dear MEMBERS

When the economic challenges of 2009 forced Southern California life science companies to cut back and conserve resources, BIOCOM's many services became even more important to our members.

With current business pressures in mind, BIOCOM stepped up on the capital front, offering seminars on non-dilutive funding opportunities from the NIH. We also launched a reimbursement initiative to help companies get payment for their products and services.

Our fourth annual Investor Conference on October 26 – 27 attracted more than 440 people from California and beyond, including more than 100 investors, to listen to presentations from 70 companies. Our fourth annual Medical Device Conference and Expo in Orange County on May 7, drew more than 250 participants, including venture capital executives, and more than 20 companies displayed their products. The event was such a success that AdvaMed has decided to partner with us on the event in 2010.

As health care reform legislation worked its way through Congress, BIOCOM's Washington, D.C. initiative hit high gear. We made 10 trips to the nation's Capital in 2009, bringing along CEOs and other executives from member companies. These executives made a huge impact on policymakers by educating them about the daily challenges in running companies that collectively employ more than 100,000 people in Southern California. Through the D.C. initiative, we also strengthened our partnerships with the California Healthcare Institute, BIO, PhRMA, MDMA, and AdvaMed.

Through this initiative, we fought for a minimum of 12 years of data exclusivity for follow-on biologics, for the inclusion of a therapeutic tax credit, and for the elimination of any excise tax on medical devices. This was ultimately reduced by $20 billion dollars in the process. We also explained the significance of certain Sarbanes-Oxley requirements to our small public company members.

2009 was a year of growth for BIOCOM. We expanded our global reach to help our members form relationships in emerging markets in Asia. We launched CalAsia, a conference designed to introduce Southern California companies to business opportunities and collaborators in the Pacific Rim. And I made my first trip to China as part of BIOCOM's effort to create a bridge for our members to take advantage of new opportunities there.

2009 was also the third year of BIOCOM's Orange County initiative, which seeks to bring together the life sciences companies in both counties so they can better leverage the region's strengths.

In a rough year, BIOCOM surpassed our expectations. In 2010, we will continue to expand BIOCOM's reach, helping to better connect our members in different segments with collaborators and customers around the globe.

Best wishes for a successful 2010,

Joseph D. Panetta
President and CEO
BIOCOM