NJ Biotechnology Industry Sees Strong Growth Continuing
Number of New Jersey Companies Nearly Doubled in Three Years
Increases in Employees, R&D and Revenues; Early Stage Research
Funding a
Challenge
TRENTON, N.J., June 15 /PRNewswire/ -- New Jersey's biotechnology
industry continued to experience strong growth from 2002 to 2005,
with the
number of employees in publicly held companies growing by 19 percent,
research and development at publicly held companies increasing 40
percent
to $737 million and revenues for both public and private companies
exceeding $2 billion, according to a survey released today by the
Biotechnology Council of New Jersey (BCNJ) and Ernst & Young.
Conducted by
Ernst & Young in the spring of 2006, the survey, "New Jersey ... A
Thriving
Biotechnology Cluster," (http://www.biotechnj.org) also noted that
the
number of biotechnology companies located in New Jersey nearly
doubled to
226 from 2003 to 2006.
While the number of employees in publicly held companies
increased by
19.5 percent to 5,824, 86 percent of the public and private
companies that
responded to the survey said that they expected to hire additional
employees - on average 13 - over the next year.
The report also notes that financing, particularly for early
stage
research, remains a challenge for many companies.
"New Jersey's biotechnology industry continues to make
significant
strides, demonstrating sustained growth," said Kenneth I. Moch,
President
and Chief Executive Officer of Alteon and Chairman of BCNJ. "Not
only is
the number of companies operating in New Jersey increasing, it is
important
to emphasize that the industry and individual companies are maturing
and,
in many instances, thriving."
The survey follows New Jersey being named in January as one of
the
world's top five growth markets for biotechnology by FierceBiotech,
an
internationally recognized e-mail newsletter for the biotechnology
industry, and a report issued in April by the Biotechnology Industry
Organization (BIO) and Battelle, which found that New Jersey was the
only
state with specialization in all four measured bioscience
subsectors .
drugs and pharmaceuticals, research testing and medical laboratories,
medical devices and equipment, and agricultural feedstock and
chemicals.
"Today's report demonstrates that New Jersey is making the right
investments to cultivate our expanding biotechnology sector," said
New
Jersey Commerce Secretary Virginia Bauer. "We're providing an
attractive
environment for these companies to locate, thrive and prosper
through an
array of programs, capital investments and necessary infrastructure
that
reflect the state's commitment to encourage growth of this vital
industry."
"The growth is coming from all possible avenues: other
countries, other
states, New Jersey university spinouts, New Jersey biotechnology
company
spinouts, and pharmaceutical company spinouts," according to Debbie
Hart,
BCNJ President.
State Government Programs Cited as Key to Growth
A positive environment established by New Jersey State
Government is
among the reasons companies locate and remain in New Jersey, with
respondents specifically identifying programs that allow companies
to sell
net operating losses (NOLs), business incubators established in
Newark,
North Brunswick, Camden and Mount Laurel and the Garden State Life
Sciences
Venture Fund.
The companies also continue to report that they believe there are
sufficient managerial and scientific personnel in New Jersey to meet
their
needs.
"The report confirms that New Jersey continues to be a hotbed for
biotechnology due to its scientific and managerial pool, the quality
of its
public and private universities and research institutions, and
proximity to
major financial markets," said Hart. "Importantly, the comprehensive
array
of programs offered by New Jersey State Government continues to play
a
central role in attracting new companies and nurturing the industry."
Survey Results
The goal of the survey was to identify the strengths of the
industry
and areas for improvement. Highlights from the study include:
-- Seven percent of respondents reported sales of more than $100
million.
-- The companies with sales of $100 million have been located in
New
Jersey for over 10 years.
-- A significant number of the companies (45 percent) are five
years old
or less, however, and the future revenue generating potential
of these
companies is impressive.
-- The percentage of companies reporting a profit in excess of
$10
million increased to 19 percent from 2 percent, while the
percentage
of companies reporting a loss decreased by 19 percentage
points.
-- New Jersey public biotechnology companies have $3.5 billion
in total
assets, an increase of 21 percent since December 2002.
Broad Research Focus
New Jersey companies continue to have a broad research focus.
Oncology
remains the single largest therapeutic focus area (33 percent). Other
target areas include infectious disease (22 percent) drug delivery
(20
percent), and devices (15 percent).
The collapse of the technology bubble in 2000 continues to have
an
impact on financing, alliances and collaborations, particularly for
early
stage research as investors continue to look for surer bets and
quicker
payoffs. In addition, the market for public offerings, although
softer for
New Jersey in 2005, has generally increased since the previous
survey.
Still the companies responding to the current survey appear to be
slightly
better funded than companies that responded to the previous survey,
according to the report.
"Overall, the industry is well positioned for the future," said
Keith
Brownlie, Partner and Area Life Sciences Leader at Ernst &
Young. "The
industry is poised to continue to discover and develop novel
technologies,
and we believe pharmaceutical companies, venture capitalists and
private
investment firms will continue to have an appetite to participate in
this
innovation."
About BCNJ
The Biotechnology Council of New Jersey was founded in 1994 by
New
Jersey biotechnology industry CEOs to serve as the voice of and
advocate
for the biotechnology industry in New Jersey. With more than 150
member
companies, BCNJ is singularly focused on the growth and prosperity
of New
Jersey's rapidly expanding biotechnology cluster. For more
information,
visit the BCNJ Web site at http://www.biotechnj.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 107,000 people in 140 countries
pursue
the highest levels of integrity, quality, and professionalism in
providing
a range of sophisticated services centered on our core competencies
of
auditing, accounting, tax, and transactions. Further information
about
Ernst & Young and its approach to a variety of business issues can
be found
at http://www.ey.com/perspectives. Ernst & Young refers to the global
organization of member firms of Ernst & Young Global Limited, each
of which
is a separate legal entity. Ernst & Young Global Limited does not
provide
services to clients.
E&Y has a longstanding 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. Our 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 considerations.
For a copy of the full report, go to: http://www.biotechnj.org.
SOURCE Biotechnology Council of New Jersey
------------------------ Yahoo! Groups Sponsor --------------------~-->
Great things are happening at Yahoo! Groups. See the new email design.
http://us.click.yahoo.com/TISQkA/hOaOAA/yQLSAA/H4xqlB/TM
--------------------------------------------------------------------~->
http://www.arizonabiotech.com/
http://groups.yahoo.com/group/biotech-news/
http://www.arizonaentrepreneurs.com/
http://www.azhttp.com/
Yahoo! Groups Links
<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/biotech-news/
<*> To unsubscribe from this group, send an email to:
[EMAIL PROTECTED]
<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/
