NJ Biotech Industry Continues to Grow, Study Shows [AUDIO]

Biotechnology companies with operations in New Jersey increased by more than 13% between July 2010 and July 2012, according to a survey conducted by Ernst & Young on behalf of BioNJ. In turn, the number of industry employees climbed from 15,000 to 16,400 over the same time period.

The study, Biotech in New Jersey: Finding its Way Through Continuing Challenges, also showed evidence of continued growth this year, as 71% of respondents anticipate additional hiring in 2012.

Unlike the typical pharmaceutical industry, biotechnology uses cells and other living organisms to develop therapies and cures.

"New Jersey has always been a place the biotechnology industry has been attracted to," said Debbie Hart, President of BioNJ. "Growth in New Jersey is coming from both within the state in the form of new company formations; spinouts from other companies and our universities; and from companies relocating to New Jersey from other states and other countries."

Hart said the growth is a result of several factors, such as a strong academic environment in New Jersey, the variety of life sciences companies operating here, and constant support from state government.

"Early on, this Administration identified life sciences as a critical driver of the Garden State economy," said Lieutenant Governor Kim Guadagno. "More than ever, we remain firmly committed to the expansion of the industry to ensure New Jersey's well-earned reputation for life science excellence."

Consistent with national trends, and confirming past data, the study showed funding for early-stage research continues to decrease. Most funding flows into companies with products in the later stages of development.

Tony Torrington, New Jersey Life Science Leader at Ernst & Young, said the funding challenge is creating a marketplace of "haves and have-nots."

The study recommended New Jersey work toward supporting companies at each stage of development, as well as develop new and enhance current economic incentives to attract and retain biotech companies.