Industry Survey Sees 50 Percent Increase from 2007 to 2010

Access to Capital Remains Constrained

TRENTON, N.J.--(BUSINESS WIRE)--Jul 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.”