|
12/10/2003 - REPORT SHOWS THRIVING NJ BIOTECH COMMUNITY
December 10, 2003, Trenton, NJ - The New Jersey biotech community is thriving, showing dramatic increases in revenue and total assets. Biotech spending on research and development has nearly doubled in the past three years, employment has increased significantly, and almost 90 percent of companies expect to hire more employees in 2004.
These are the findings of an industry survey conducted by Ernst & Young for the Biotechnology Council of New Jersey. The survey collected information from fifty-two of New Jersey's 120 biotech companies for their 2002 fiscal year.
"This survey confirms the importance of the biotechnology industry to New Jersey," said Arthur Higgins, Chairman and CEO of Enzon Pharmaceuticals and chairman of the Biotechnology Council of New Jersey (BCNJ) "With states all over America trying to build their biotech infrastructure, it is important that industry, academia and government officials here in New Jersey work together to take advantage of our solid foundation."
"The responding companies have indicated that they have chosen to locate in New Jersey because of the strength of the state's scientific and managerial employee pool as well as the interaction with big pharma," said Debbie Hart, BCNJ president. "And more and more, the State's offering of incentives such as the $10 million biotech venture fund, the Business Employment Incentive Program and Tax Credit Transfer Program is and will be a factor. This Administration's programs and policies will help to ensure the continued growth and future prosperity of this industry in New Jersey."
New Jersey's public biotech companies generated in excess of $838 million in revenue in 2002, an increase of 53 percent from $548 million in 2000. The addition of private companies pushes the 2002 amount well over $1 billion.
The state's public biotech companies had $2.9 billion in total assets, an increase of 37 percent from $2.1 billion in 2000.
In spite of limited funding over the 2000-2002 cycle, New Jersey biotech firms continue to focus on their core strategic therapies. During 2002, the state's public biotech companies spent approximately $528 million on research and development, an average of $22 million per company. The $528 million represents a 94 percent increase in spending from $272 million in 2000. Seventy percent of all R&D spending remained in New Jersey.
Employment has remained strong in the state's public biotech companies, despite a difficult capital market. Employment stood at 4,872 (in public companies alone) as of December 31, 2002 - an increase of 37 percent from the 3,556 employees reported in 2000. Eighty-seven percent of those responding to the survey indicated that they expected to hire on average 10 additional employees in the next twelve months.
"The employment projections reflect the optimism that's being shown with the recent upturn in venture capital money for this industry as well as an industry that's coming of age," said Keith Brownlie, Metro New York Area Emerging Growth Market Life Science Industry Leader of Ernst & Young.
In spite of financing challenges in recent years, New Jersey biotech companies raised $350 million in 2002 and $438 million through the first nine months of 2003.
Founded in 1994, the sole mission of the Biotechnology Council of New Jersey is to promote a business and public policy environment in the state of New Jersey and beyond that enhances the growth and prosperity of New Jersey's biotechnology companies. BCNJ currently has 150 member companies.
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 103,000 people in more than 140 countries around the globe pursue the highest levels of integrity, quality, and professionalism to provide clients with solutions based on financial, transactional, and risk-management knowledge in Ernst & Young's core services of audit, tax, and corporate finance. Ernst & Young practices also provide legal services in those parts of the world where permitted. Further information about Ernst & Young and its approach to a variety of business issues can be found at www.ey.com/us/perspectives. Ernst & Young refers to all the members of the global Ernst & Young organization.
For more information on the Biotechnology Council of New Jersey or the Ernst & Young survey, please contact Debbie Hart at .
Back
|