New Jersey’s Life Sciences: By the Numbers

 

Michigan has the automotive industry.  The Midwest has agribusiness.  Texas has oil and gas.  California’s Silicon Valley has technology. 

And New Jersey has the life sciences industry, which is comprised of biopharmaceutical, biotechnology, medical technology, medical device and diagnostic companies.

New Jersey long has been known as the “Medicine Chest of the World.”  Numerous factors have contributed to this well-earned reputation:

  • Historic commitment to medical innovation and improved global human health
  • Large and unique concentration of life sciences companies
  • Strong innovation ecosystem
  • Highly skilled workforce
  • Collaboration among companies
  • Multiple research universities
  • Specialized vendor support
  • Robust manufacturing capabilities
  • World-class global transportation hub
  • Ready access to capital markets

New Jersey’s life sciences community — comprised of biopharmaceutical, biotechnology, medical technology, medical device and diagnostics companies — has contributed greatly to New Jersey’s economy and to advancing human health.

 

NEW JERSEY ECONOMIC IMPACT

#3 New Jersey/New York’s rank on Genetic Engineering & Biotechnology News’ (GEN) 2017 top 10 U.S. biopharma clusters list. 1

3,000+ life sciences establishments operating in New Jersey. 2

13 of world’s top 20 research-based biopharmaceutical companies maintain a presence in New Jersey. 3

12 of world’s top 20 medical technology companies maintain a presence in New Jersey. 4

$47.5 billion biopharmaceutical sector’s total direct economic impact on New Jersey in 2014. 5

$61.2 billion biopharmaceutical sector’s total indirect or spin-off economic activity in 2014. 5

$108.7 billion total economic output supported by the biopharmaceutical sector in New Jersey in 2014 — #2 behind California — which represented 19.9% of New Jersey’s 2014 Gross Domestic Product (GDP). 5, 21

78,447 estimated total New Jersey jobs are directly supported by the biopharmaceutical and medical device sectors. 5, 6

425,867 estimated total New Jersey jobs are supported, directly or indirectly, by the biopharmaceutical and medical device sectors. 5, 6

10.47 percent of total New Jersey jobs are estimated to relate, directly or indirectly, to the biopharmaceutical and medical device sectors. 5, 6

333,836 estimated number of New Jersey households economically associated with the biopharmaceutical or medical device sectors. 5, 6, 7

908,034 estimated number of New Jerseyans — 1 in 10.13 — who are economically associated with the biopharmaceutical or medical device sectors. 5, 6, 7

65,783 direct New Jersey jobs in the biopharmaceutical sector in 2014. 5

312,943 New Jersey jobs supported by the biopharmaceutical sector in 2014 (i.e., indirect- and induced-effects jobs, including vendor and supplier jobs). 5

378,726 total New Jersey jobs associated with the biopharmaceutical sector in 2014 (i.e., direct jobs plus sector-related indirect- and induced-effects jobs, including vendor and supplier jobs). 5

12,664 direct New Jersey jobs supported by the medical device sector in 2012. 6

34,477 indirect or spin-off New Jersey jobs supported by the medical device sector in 2012 (i.e., vendors and supplier jobs). 6

47,141 total New Jersey jobs associated with the medical device sector in 2012 (i.e., direct jobs plus sector-related indirect jobs). 6

$6.48 billion biopharmaceutical company spending with New Jersey vendors in 2013. 8

$5.3 billion reporting HINJ member companies’ spending by their New Jersey facilities for research and development (R&D) in 2014. 9

$1.5 billion reporting HINJ member companies’ capital spending (new construction, renovation, maintenance and purchases) in 2014. 9

$188,268 reporting HINJ member companies’ average total compensation package (salary and benefits) per employee in 2014. 9

$638 million reporting HINJ member companies’ contributions to New Jersey charitable organizations in 2014. 9

OTHER KEY MEDICAL INNOVATION NUMBERS

$2.87 billion the average cost to bring a new prescription medicine to market. 10

10-15 years the average time to develop a new medicine in the U.S. 11

5 years between 1980 and 2010, medical advancements helped add five years to U.S. life expectancy. 12

59 percent between 1980 and 2010, advanced medical technology helped cut the number of days people spent in hospitals by 59 percent. 13

10 cents of the U.S. health-care dollar are for prescription medications — this percentage has remained unchanged since 1960. 14

$1 trillion economists found that better prevention and treatment for just 13 chronic and acute conditions could add $1 trillion per year to the U.S. GDP by 2023. 15

$106.2 billion the use of key medical technologies to address four serious health conditions — diabetes, heart disease, musculoskeletal disease and colorectal cancer — expanded U.S. GDP by $106.2 billion in 2010. 16

41 the number of drugs approved by the U.S. Food and Drug Administration in 2014, the most approvals since 1996. 17

#1 biopharmaceutical industry ranks first in its share of total manufacturing research and development (R&D) employment among all U.S. manufacturing industries. 18

20 percent the U.S. biopharmaceutical industry is responsible for about one of every five dollars spent on R&D by U.S. businesses. 18

1,234 total biopharmaceutical industry-sponsored clinical trials active in New Jersey in 2013. 19

25,126 total participants in biopharmaceutical industry-sponsored clinical trials active in New Jersey in 2013. 19

NEW JERSEY’S LIFE SCIENCES LEADERSHIP

#1 state for biotech growth potential. 20

#2 state for biotech strength. 20

#2 state for biochemists and biophysicists. 20

#3 state industry R&D investment. 20

#3 state for specialized employment in research, testing and medical laboratories. 20

#3 state for bioscience-related patents. 20

#4 state for chemists. 20

#4 state in bioscience venture capital investments. 20

4 medical schools. 20

13 teaching hospitals. 20

63 colleges and universities. 20

22,000 life sciences graduates annually. 20

62.2% of life sciences workforce hold a Bachelor’s degree or higher — 29.2 percent a Bachelor’s degree, 24.7 percent a Master’s or professional degree and 8.3 percent a Doctoral degree. 2

FOOTNOTES

  1. Genetic Engineering & Biotechnology News (GEN), “Top 10 U.S. Biopharma Clusters; GEN’s Annual Ranking Counts Down the Nation’s Most Nurturing Regions,” Alex Philippidis, June 5, 2017.
  1. New Jersey Department of Labor & Workforce Development, “New Jersey’s Biopharmaceutical Life Sciences Cluster,” Winter 2015 – 2016.
  1. PharmExec.com, “Taking Flight: Pharm Exec’s Top 50 Pharma Companies,” July 14, 2015.
  1. MDDI Medical Device and Diagnostic Industry, updated to reflect total revenue as of October 17, 2013.
  1. Pharmaceutical Research and Manufacturers of America (PhRMA), “The Economic Impact of the U.S. Biopharmaceutical Industry: National and State Estimates,” May 2016.
  1. Biotechnology Innovation Organization (BIO), “Battelle/BIO State Biosciences Jobs, Investments and Innovation 2014: New Jersey,” 2014.
  1. United States Census Bureau, “Quick Facts: New Jersey,” Reflecting July 1, 2015, Population Estimates.
  1. We Work for Health (WWFH), New Jersey Vendor Map, 2014.
  1. HINJ Member Company Survey, 2015.
  1. Tufts Center for the Study of Drug Development, “Innovation in the Pharmaceutical Industry: New Estimates of R&D Costs,” Journal of Health Economics, Volume 47, Pages 20–33, May 2016.
  1. Pharmaceutical Research and Manufacturers of America (PhRMA), “Drug Discovery and Development: Understanding the R&D Process,” 2014.
  1. National Center for Health Statistics, “Health, United States, 2012: With Special Feature on Emergency Care,” May 2013.
  1. National Center for Health Statistics, Table 103 – “Discharges, days of care, and average length of stay in nonfederal short-stay hospitals,” March 14, 2013.
  1. Pharmaceutical Research and Manufacturers of America (PhRMA), “Prescription Medicines: Costs in Context,” 2015.
  1. The Lewin Group, Inc., “State Economic Impact of the Medical Technology Industry,” prepared for the Advanced Medical Technology Association (AdvaMed), June 7, 2010.
  1. Milken Institute, “Healthy Savings: Medical Technology and the Economic Burden of Disease,” July 2014.
  1. U.S. Food and Drug Administration, “New Molecular Entity and New Therapeutic Biological Product Approvals for 2014.”
  1. Pharmaceutical Research and Manufacturers of America (PhRMA), PhRMA Innovation Hub, “Realizing Industry’s Growth Potential.”
  1. Pharmaceutical Research and Manufacturers of America (PhRMA), “Research in Your Back Yard: From Hope to Cures — New Jersey,” 2015.
  1. Choose New Jersey, “New Jersey Life Sciences by the Numbers,” 2016.
  1. State of New Jersey Department of Labor and Workforce Development, “Gross Domestic Product by State (formerly Gross State Product-GSP),” July 2016.

 

 

6/20/17

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