>> has to talk about what has happened in the last two and a half years with the

microprogram. this has been an amazing experience for those of us that have been with it from the beginning. we're looking forward to sharing that story with you. without further ado, mayor lee. >> thank you. thank you very much for being here. i wanted to join this great moment of celebration and to announce that they're more than just a serial. that was what i first thought when i saw the name. but i want to congratulate them and all the various companies that have sprouted up. i have the privilege of having worked with mayor newsom when he announced back in 2007 the creation of this experiment with bio and life sciences in mission bay. it began in 2009 when there were

five companies that started in this building. today there 23 of these micro businesses that are doing biotechnology research and clinical, laboratory research, as well as applications for

they do have a lot of openness to their research and to the interaction between the different companies, so they can get that kind of innovation going on. that is why we call this the mission bay innovative center. i am glad to announce this today and announce that this has been huge milestone, thanks to all of you for consistently being here. thank you to the company. he can explain how this happened. but i know the city has done right. the evidence is right here. our policy is about our technology. we started with some good pro- business sense. whether it was attracting this company or others, some of the research companies that started here five years ago and then started saying we can attract other businesses here.

redevelopment has built the infrastructure. now we see our future tax dollars contributing to the verticalness of these buildings, and the company has come here in an open and welcome way. the talent is still here. we need to keep our school systems very strong. because if they can continue graduating our kids with strong science backgrounds and they do end of getting integrate schools, not all of them would get into stanford and berkeley, but if they give their science down, there will still be recruited by these companies. there is a very excited to announce this milestone here and join all of you here. congratulations. we're still in one of the most beautiful areas. this is why it is getting built. from our report, they're here. trying to do more cruise ship

next door. in the back of me, you'll see the future campus of salesforce. within the next year, there will start breaking ground. all very exciting. we're going to build up 100% of mission bay. then we have hunters point and candlestick. it will be a focus on clean tech. the formulas that we have had, the tax and business approach that we have had, not only have been in fighting. we see the evidence to date. we will continue doing that with you. i hope not to wait for another two and a half years to get the other 10-fold. i think it will probably go even faster. thank you for being here, everybody. [applause] >> thank you, mayor lee. i would like to introduce our boss, the ceo and founder of fibrogen. tom -- [applause]

>> thank you. let me start by thanking mayor lee for being here. and everyone in the company. welcoming steve richardson, alexandria realty, who is now the owner of these buildings. steve has played a hand in many different parts of what is going on in mission bay. not just here, but elsewhere. those that know him know that he has had a major role in the leadership in the vision of what is going on and where we're going. i would also like to mention and thank the innovation centers of bayer and pfizer for coming. nectar, as well. those are companies that are nearby now in mission bay. also, the innovators. the micros and the minis, as

we call companies here. by my count, there are now 25 -- mayor lee said 23. the couple are in the office area of the fibrogen building that i am probably counting that he was not. there have been 35 total. over time, some have gotten bigger and moved in the larger quarters. some have venture owners among them out of the city of san francisco and down the peninsula. some had to downsize to raise more money. the picture has been very dynamic. we expect about 50% growth year- over-year. and the number of companies, and internally, i would guess that a third of the companies will grow in the space they have inside the building. so it is burgeoning. it is not just doing ok for

getting by. it is a case where we have reason equilibrium. there has been turnover and a huge amount of demand of their for the resourced. i would also like to mention some fibrogen people. i have had to make a list. jenny coseur, erorod furman, kal drinkwater, rod stanley, katherine sharp are all people that work on this project every day, all the time. the part i can attest to his that kathryn has kept me calmed down at various times about this project. that is her job, in part, which is no fun. i think that pat, our vp of finance, has been a leader and

facilitator across the entire spectrum of activities. pat is a very self-effacing and does not seek the credit himself. but i know what he does, and he does a lot to make sure things get done right in this program. so thank you, pat. when we started, we came from south san francisco. we came here because amgen, who competes with us in the markets, and genentech are fighting ever space there. there was a short time when at the ranch in south san francisco was higher than the ranch here. the total cost here was still higher, but that one moment i knew only happen once every couple decades. so we jumped on it. we got the board to agree to let us come here. the shorenstein family built this building. they did a very good job. but when we got here, we were alone, and it was an economic

crisis time. we had this idea that if we had a quality building and $100 million of improvements that there would be a lot of young companies that would prefer this environment to the alternative, which might be a garage or might be a lousy building down in south city somewhere. for recruiting people lot of ucsf, in particular, this is a tricky issue. we thought we had would be valued. turned out we were right. and it turned out we were wrong. we were right in the sense that a lot of ucsf demand came. we had many venture firms support us and say, this is a great idea. because people hit the ground running at a time when there were normally very inefficient. we can avoid the capital outlays ago with small facilities. so we had those things.

what we did not get right was the demand was much greater. so it turned up at ucsf only about 30%, 45%, of the total demand spectrum. to me, one of the big surprises has been the really wide variety of spaces people want. which made it much easier for us in that we were a growing company and we have to allocate space. we have been able to fit people in in a way that might surprise you, you know, in terms of the leaseholds, the terms of agreement, the kind of resources they're using at of our facilities and so on. it is been very flexible. the other point i would make is that the citizenship has been good. all my friends when they heard this said you're going to regret this. there will be violations. people will steal your stuff. blah, blah, blah. it turned out not that way at

all. i do not know of a company that has been disciplined -- i know of a couple places where we had to tell people not to put their bicycles in the hallway and stuff like that, a bay coach. but not much at all in that regard. i sort of think of it is a lot of very good citizens. that is what the experience has been for fibrogen. that is important to see, because we make certain risks in making the space available, and today we have not had to pay for taking those risks. in terms of the economic package, we have assumed that a fully operating building where our costs are, for the space they have, are pushed through directly with no markup would be attractive compared to the alternative of having to build an entire leasehold, two thousand square feet. build another one at 8000 square feet. another one at 20,000 square feet. that has been the case. some people do not object about

the economics. and we have stayed on this path of passing through the cash costs that we incur as the basis for renting out space. the other comment i would make personally is that it has been amazing to me that this is so well known. for the last two weeks, i was in china. in beijing in another city, and they are competing against each other for our factory in china. the backdrop is we have the first oral in the new drug, which addresses unmet medical needs throughout the world. where people cannot get their piece. it is too expensive. they cannot get to hospitals. things like that. in china, there's about 20 million people that are desperately anemic by the u.s. standard. they're more anemic than the worst cases in the u.s., so

they're medically urgent cases. the chinese government has said, if you apply as a domestic applicant in a china for approval, so we are the first to do this, what it will require is the build a factory here to make the medicine. but we will allow you to move forward on that path. so in the course of events, i meet many, many chinese government officials all over china. in the past two weeks, i got five different comments from different people about this program here. people, government officials, expressing their appreciation for the fact that we would be willing to do this as a sign of how we might be as a business partner in china. to me, that is very surprising. we do have one chinese tenant who is an affiliate of the government. china medical city. i do not know if they are here today. but if they are, hello.

i thing that what i have learned is that a lot of people outside of the bay area are watching what we're doing with a lot of interest. because how to create the starting point for companies, other than just say go find money on your own, has been difficult, particularly in life sciences were a lot of vince vaughn -- infrastructure needs to be affected. with that, thank you very much. we hit the one week of the year were the weather is fantastic, or the one month, in -- i guess. so enjoy it. it is not like this all the time. thank you very much. [applause] >> thank you, tom. now i would like to introduce eric. he has rnd for solaria. they have been with us a little over two years. a clean tech companies to one of the companies, referred to earlier that the have had

significant organic growth. >> thank you. two and half years ago, and want to emphasize that give the points that merely made and tell you a little better about solaria. we started two and half years ago. at that time, we were down the peninsula. we were two people. had not raised money yet. and we had an idea. now our idea was to try to take on big oil and replace petroleum-derived fuels and petroleum-derived vehicles to replace those with a cleaner source. that is no small order, as i am sure you are aware. we give a lot of thought to where we would put the company and put our lab space. at that time, when it that we would have to combine together a bunch of fields that had not been used previously. it was about that time when learned about fibrogen and setting up this new space. i believe we were