New Brunswick, NJ, October 7, 2002 — A recent article in the Philadelphia Inquirer boldly proclaimed, “Pennsylvania is now the nation’s largest producer of drugs, surpassing New Jersey.” That’s quite a statement. Unfortunately, by most relevant measures, it is more fiction than fact.
The article continues by maintaining that Pennsylvania has reaped the fruits of New Jersey’s neglect of the pharmaceutical industry. It portrays an industry battered by big mergers, cutbacks, high taxes, and other quality of life issues in the Garden State. It is true that around the world, the pharmaceutical and medical technology industry is undergoing some restructuring. And since New Jersey is the global epicenter of the pharmaceutical and medical technology industry, the effects of these forces are felt more immediately in our backyard.
Even so, New Jersey remains the world’s cure corridor. Here are some recent facts and statistics that illustrate why New Jersey leads other states (and nearly every nation) in pharmaceuticals and medical technology:
- Last year, the HealthCare Institute of New Jersey, the trade association representing the research-based pharmaceutical and medical technology industry, commissioned a study by IBM Business Consulting to identify key economic trends within our industry. The results were astonishing! Even in a sluggish economy, New Jersey’s pharmaceutical and medical technology industry continues to grow as it makes enormous contributions to our state’s economy.
- The IBM report, released in April 2003, found that employment among our member companies had grown to 69,000 workers — up by 2,500 over the previous year. These new jobs that have been created are good jobs, paying an average of $80, 400.
- If you add in the value of benefits and other perks, the total compensation package per worker totals more than $91,500. That’s a very attractive compensation package —even in a high-cost-of-living state like New Jersey.
- Today, HINJ member companies account for a total direct payroll of more than $6.8 billion.
But creating good jobs isn’t the only contribution our HINJ member companies make to New Jersey. New Jersey’s moniker of “The World’s Medicine Chest” is well-deserved. IBM Business Consulting reported that our state’s pharmaceutical and medical technology industry leads the nation in the discovery of new drugs and medical devices.
The IBM study found that NJ pharmaceutical companies have 1,285 potential new products under review. That’s good news for an aging population looking for cures to Alzheimer’s, Cancer, Parkinson’s and other debilitating diseases.
In addition, medical technology companies have much to brag about, as well. HINJ member companies are working on 546 new devices — devices that will alleviate suffering and create a higher quality of life.
But don’t take our word for it. Last year, the FDA reported that New Jersey-based companies were responsible for a third of all new drug approvals — far and away leading the rest of the nation. New Jersey medical technology companies ranked 3rd in the nation in new device approvals, and are quickly closing in on becoming the nation’s leader in innovation.
With an army of more than 16,000 scientists, technicians and researchers working in the research and development functions of our companies every day, advances in medicine like this are possible.
Other sectors of our state’s economy also benefit from the presence of the pharmaceutical and medical technology industry. Our friends in organized labor are grateful for the fact that our companies invested $2.4 billion last year in capital construction — far outpacing all other public and private sector groups. Of that $2.4 billion total, fully $1.5 billion went toward the construction of new facilities.
In addition to their role as leaders in discovery and innovation, our companies also engage in a vast array of philanthropic activities. For over a century, New Jersey’s pharmaceutical and medical technology companies have established the “Gold Standard” for corporate citizenship.
Last year alone, HINJ members gave away $42.5 million in product donations. An additional $45.5 million was contributed directly to the arts, social services, community and educational groups — right here in New Jersey.
As multinational companies, HINJ members are very proud that their reach extends beyond the borders of the Garden State. But to suggest that New Jersey has lost its leadership mantle in this key industry represents wishful thinking on the part of politicians and economic development officials from other states.
The facts are clear: New Jersey has been and will remain the leader in the Pharmaceutical and Medical Technology Industry.
At this moment, our companies are working with other key stakeholders, including Governor James E. McGreevey, the higher education community and other life sciences partners to develop aggressive strategies to retain and strengthen the entire life sciences cluster in New Jersey. New Jersey has always had unique advantages over other states when it comes to nurturing the pharmaceutical and medical technology industry. We plan on keeping it that way.