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 composed 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 — composed of biopharmaceutical, biotechnology, medical technology, medical device and diagnostics companies — has contributed greatly to New Jersey’s economy and to advancing human health.
THIS JUST IN: New Jersey had 792 active clinical trials at last count, per TEConomy Partners. The total economic impact of those clinical trials was estimated at nearly $880 million, which ranks N.J. #15 nationally. Read more here.
New report on new treatments for diabetes and related conditions: Of the 167 innovative new treatments in development for type 1 and type 2 diabetes and related conditions, at least 51 are from New Jersey companies. Read more here.
New medicines = new hope: Of the 100+ medicines in development for asthma, respiratory allergies and other breathing diseases, at least 37 are from New Jersey companies. More here.
Top 10 reasons why New Jersey is the “medicine chest of the world.”
12 of the world’s top 20 research-based biopharmaceutical companies maintain a presence in New Jersey. 3
12 of the world’s top 20 medical technology companies maintain a presence in New Jersey. 4
$104.7 billion total economic output is supported by the biopharmaceutical sector in New Jersey in 2015. 5, 8, 23
88,900 New Jersey jobs are directly supported by the biopharmaceutical and medical technology sectors. 2, 6
440,000 New Jersey jobs are supported, directly or indirectly, by the biopharmaceutical and medical device sectors. 2, 5
#1 state for biotech growth potential. 20
#3 New Jersey/New York’s rank on the Genetic Engineering & Biotechnology News (GEN) top 10 U.S. biopharma clusters list. 1
5 medical schools. 26
13 teaching hospitals. 20
27,000 graduates in the life sciences annually. 20
NEW JERSEY ECONOMIC IMPACT
#3 New Jersey/New York’s rank on Genetic Engineering & Biotechnology News (GEN) 2018 top 10 U.S. biopharma clusters list. Philadelphia is ranked #6. 1
3,280 life sciences establishments operating in New Jersey. 2
12 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
$104.7 billion total economic output supported by the biopharmaceutical sector in New Jersey in 2014 — #2 behind California — which represented 18 percent of New Jersey’s 2014 Gross Domestic Product (GDP). 5, 8, 23
$42.9 billion biopharmaceutical sector’s total direct economic impact on New Jersey in 2015. 8
$61.8 billion biopharmaceutical sector’s total indirect or spin-off economic activity in 2015. 8
88,900 New Jersey jobs are directly supported by the biopharmaceutical and medical technology sectors. 2, 5
443,000 New Jersey jobs are supported, directly and indirectly, by the biopharmaceutical and medical technology sectors. 2, 5
10.3 percent of all jobs in New Jersey relate, directly or indirectly, to the biopharmaceutical and medical device sectors. 5, 6
333,800 New Jersey households are economically associated with the biopharmaceutical or medical technology sectors. 5, 6, 7
908,000 New Jersey residents — 1 in 10 — are economically associated with the biopharmaceutical or medical technology sectors. 5, 6, 7
65,200 direct New Jersey jobs were in the biopharmaceutical sector in 2015. 8
376,500 New Jersey jobs were associated with the biopharmaceutical sector in 2015 (i.e., direct jobs plus sector-related indirect- and induced-effects jobs, including vendor and supplier jobs). 5
23,680 direct New Jersey jobs were supported by the medical technology sector in 2016. 2
$7.7 billion in personal taxes paid by New Jersey workers whose jobs were supported directly by the biopharmaceutical sector in 2015 ($6.9 billion in federal taxes, $847 million in state taxes). 5
$6.2 billion biopharmaceutical company spending among 8,075 New Jersey vendor relationships in 2015. 9
$5.3 billion reporting HINJ member companies’ spending by their New Jersey facilities for research and development (R&D) in 2014. 10
$1.5 billion reporting HINJ member companies’ capital spending (new construction, renovation, maintenance and purchases) in 2014. 10
$188,268 reporting HINJ member companies’ average total compensation package (salary and benefits) per employee in 2014. 10
$638 million reporting HINJ member companies’ contributions to New Jersey charitable organizations in 2014. 10
NEW JERSEY’S LIFE SCIENCES LEADERSHIP
#1 state for biotech growth potential. 20
#2 state for biotech strength. 20
#2 state for cancer drugs in development. 27, 28
#2 state for heart and stroke drugs in development. 24, 25
#2 region for National Institutes of Health (NIH) funding. 20
#2 state for biochemists and biophysicists. 21
5 medical schools. 26
13 teaching hospitals. 22
49 new medications for heart disease and stroke currently are being developed by New Jersey companies. No other state has produced as many of the 200 new heart disease and stroke medications now in development nationwide. 24, 25
Of the 1,120 new drugs for treating cancer currently being developed nationally, New Jersey has 357, which is second only to California (388). 27, 28
50 percent of FDA approvals in 2017 came from companies with a New Jersey footprint. 20
62.8 percent of life sciences workforce hold a bachelor’s degree or higher — 32.2 percent a bachelor’s degree, 23.5 percent a master’s or professional degree and 7.1 percent a doctorate. 2
86 percent New Jersey’s share of the bioscience industry’s share compared to the national average. 21
418 academic patents (2010 – 2014). 20
3,200 biopharma patents (2010 –-2014). 20
1.2+ million square feet of facility space devoted by New Jersey’s colleges and universities for research in the biological and health sciences fields. 22
OTHER KEY MEDICAL INNOVATION NUMBERS
$90 billion annually is invested by America’s biopharmaceutical companies in research and development in the U.S. 18
4.7 million jobs in the U.S. are supported by America’s biopharmaceutical companies. 18
$2.6 billion the average cost to bring a single new prescription medicine to market. 11
10-15 years the average time to develop a new medicine in the U.S. 12
5 years between 1980 and 2010, medical advancements helped add five years to U.S. life expectancy. 13
59 percent between 1980 and 2010, advanced medical technology helped cut the number of days people spent in hospitals by 59 percent. 14
10 cents of the U.S. health-care dollar are for prescription medications — this percentage has remained unchanged since 1960. 15
$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. 16
$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. 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
Nearly 800 active or open clinical trials of new medicines being conducted in New Jersey in 2017 by biopharmaceutical research companies in collaboration with clinical research centers and hospitals. 19
$880 million is the economic impact of these clinical trials, which ranks New Jersey #15 nationally. 19
16,600 total participants in biopharmaceutical industry-sponsored clinical trials active in New Jersey in 2017, with cancer being the largest clinical trial disease in the state. 19
- Genetic Engineering & Biotechnology News (GEN), “Top 10 U.S. Biopharma Clusters; GEN’s Annual Ranking,” Sept. 23, 2018.
- New Jersey Department of Labor & Workforce Development, “New Jersey’s Biopharmaceutical Life Sciences Cluster,” Fall 2018.
- PharmaExec.com, “Pharm Exec’s Top 50 Pharma Companies,” Aug. 10, 2018.
- Medical Product Outsourcing Top 30 Global Medical Device Companies, July 26, 2018.
- Pharmaceutical Research and Manufacturers of America (PhRMA), “The Economic Impact of the U.S. Biopharmaceutical Industry: National and State Estimates,” May 2016.
- Biotechnology Innovation Organization (BIO), “Battelle/BIO State Biosciences Jobs, Investments and Innovation 2014: New Jersey,” 2014.
- United States Census Bureau, “Quick Facts: New Jersey,” Reflecting July 1, 2018, Population Estimates.
- We Work for Health New Jersey (WWFH-NJ), “Industry Impact in New Jersey,” 2018.
- We Work for Health (WWFH), “New Jersey Vendor Map,” 2018.
- HINJ Member Company Survey, 2015.
- 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.
- Pharmaceutical Research and Manufacturers of America (PhRMA), “Drug Discovery and Development: Understanding the R&D Process,” 2014.
- National Center for Health Statistics, “Health, United States, 2012: With Special Feature on Emergency Care,” May 2013.
- National Center for Health Statistics, Table 103 – “Discharges, days of care, and average length of stay in nonfederal short-stay hospitals,” March 14, 2013.
- Pharmaceutical Research and Manufacturers of America (PhRMA), “Prescription Medicines: Costs in Context,” 2015.
- The Lewin Group, Inc., “State Economic Impact of the Medical Technology Industry,” prepared for the Advanced Medical Technology Association (AdvaMed), June 7, 2010.
- Milken Institute, “Healthy Savings: Medical Technology and the Economic Burden of Disease,” July 2014.
- Pharmaceutical Research and Manufacturers of America (PhRMA), “2018 Biopharmaceutical Research Industry Profile and Toolkit”
- Pharmaceutical Research and Manufacturers of America (PhRMA), Catalyst, “Clinical Trials Impact State Economies,” May 2019.
- Choose New Jersey, “New Jersey Life Sciences by the Numbers,” 2018.
- Choose New Jersey, “A Global Hub for Life Sciences,” 2018.
- Choose New Jersey, “Healthcare: Fueling New Jersey’s Healthy Economy,” 2018.
- State of New Jersey Department of Labor and Workforce Development, “Gross Domestic Product by State (formerly Gross State Product-GSP),” July 2016.
- NJBIZ, “NJ biopharma companies are tops in heart meds,” 23, 2018
- Pharmaceutical Research and Manufacturers of America (PhRMA), “Medicines in Development for Heart Disease and Stroke 2018 Report,” 19, 2018
- ROI-NJ, “Hackensack Meridian-Seton Hall medical school gets accreditation, to open this fall,” Feb. 15, 2018
- NJBIZ, “NJ ranks second in cancer treatment drugs,” May 31, 2018
- Pharmaceutical Research and Manufacturers of America (PhRMA), “Medicines in Development for Cancer 2018 Report,” May 30, 2018
MAY 22, 2019