Employment at NJ Biotechnology Companies Growing
Industry Survey Sees 50 Percent Growth from 2007 to 2010
Access to Capital Remains Constrained
TRENTON, NJ (July 29, 2010) ─ The number of employees working at New Jersey biotechnology companies increased by 50 percent in the last three years, growing from 10,000 employees in 2007 to an estimated 15,000 in 2010, according to the results of an industry survey conducted by BioNJ, the trade association for the biotechnology industry in New Jersey, and Ernst &Young.
The release of the employment number follows the issuance of initial results from the survey, Biotech in New Jersey: Dealing with a “New Normal,” in which BioNJ and Ernst & Young reported on June 10 that the number of biotechnology companies with operations in New Jersey increased from 238 as reported in a similar survey released in 2008 to more than 300 in the latest survey.
The full report is available at: http://www.bionj.org/Constantcontact/BioNJ%202009%20Industry%20Study%20Released%20July%202010.pdf.
“The full results of our survey confirm that the biotechnology industry in New Jersey continues to grow and contribute to New Jersey. This growth, which has been bolstered from all possible angles including new spinouts, relocations, and internal growth, has occurred despite significant challenges posed by the downturn of the national and state economies and a reviving mergers and acquisitions market,” said Debbie Hart, president of BioNJ. “Not only have the number of companies continued to increase, but our most recent data also demonstrate that the companies are bringing with them a significant number of jobs.”
Hart pointed out that the average salary for individuals working in the biotechnology industry is estimated at $77,595, according to a Bio/Battelle study out earlier this year, compared to the $45,229 average wage for total private sector employment.
Hart also noted that as in past surveys, companies indicate they choose to operate in New Jersey because of the quality of personnel living in New Jersey, excellent opportunities for collaborations with large and small life science companies and a historically supportive State Government.
Highlights from the survey include:
• The number of jobs has increased from approximately 10,000 at the end of 2007 to approximately 15,000 today, reflecting a 50 percent increase in less than three years. This figure does not include traditional Big Pharma or medical device companies, nor does it account for the thousands of indirect jobs that support and are supported by the industry.
• The number of companies has grown from 238 in 2008 to more than 300 today.
• 51 percent of respondents have operated in New Jersey for 5 years or less.
• 31 percent of respondents have been in business for 5 years or less.
• 78 percent anticipate hiring additional employees in 2010.
• The main area of research continues to be Oncology.
Access to Capital Remains an Issue
Tony Torrington, New Jersey Life Science Leader at Ernst & Young said, “Access to capital, which traditionally has been an issue for startup and early-stage companies around the nation, remains a key issue for New Jersey biotechnology companies as well. The issue has been further complicated by the recent economic downturn and it is clear that as international, national and local economies begin to recover, a ‘New Normal’ is emerging in which access to capital will remain constrained.”
To ensure that the industry continues to grow, the survey observes that New Jersey needs to: (1) continue to provide economic incentives to attract and retain key personnel necessary to breakthrough science research; (2) maintain a strong academic environment for early-stage research; and (3) maintain and build the entrepreneurial spirit needed to bring breakthrough science to commercialization.
With more than 275 member companies, BioNJ is singularly focused on the growth and prosperity of New Jersey’s biotechnology cluster. Founded in 1994 by New Jersey industry CEOs, BioNJ serves as the voice of biotechnology companies located in New Jersey, seeks to advance their economic growth and development and works to encourage new and established companies from around the world to locate to New Jersey. BioNJ represents companies engaged in biopharmaceutical, biomedical, bioagricultural and bioremedial endeavors. To learn more about BioNJ, please visit www.BioNJ.org.
About Ernst & Young
Ernst & Young, a global leader in professional services, is committed to restoring the public’s trust in professional services firms and in the quality of financial reporting. Its
103,000 people in more than 140 countries around the globe pursue the highest levels of
integrity, quality, and professionalism to provide clients with solutions based on financial, transactional, and risk-management knowledge in Ernst & Young’s core services of audit, tax, and corporate finance. Ernst & Young practices also provide legal services in those parts of the world where permitted. Further information about Ernst & Young and its approach to a variety of business issues can be found at www.ey.com/us/perspectives. Ernst & Young refers to all the members of the global Ernst & Young organization.
E&Y has a long standing commitment to the life sciences industry serving more than 50 percent of the public life science companies; we are the largest professional services practice serving the industry. The E&Y life sciences practice includes biotech, medical device, generic pharmaceutical, and specialty pharmaceutical companies. Our size and success has allowed us to make enormous investments in research and keep our professionals current on the evolving issues and trends facing the industry today and what is most likely to affect the life sciences industry moving into the future. Industry focus means we recruit, train and reward our professionals within the context of industry specialization. We develop technologies and processes that are guided by industry consideration
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Director of Public Affairs