CHI and PwC US Release 2014 California Biomedical Industry Report

Industry grows in California by two percent and employs 267,000.

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“California is the birthplace of innovation and the state continues to lead the nation in high-paying jobs that directly contribute to the health and well-being of Americans and people around the world." - CHI President & CEO David L. Gollaher, Ph.D.

S. San Francisco, CA (PRWEB) November 21, 2013

California’s biopharmaceutical and medical device employment grew by two percent from 2008-2012, according to the annual California Biomedical Industry Report, published today by the California Healthcare Institute (CHI) and PwC US. In addition, California is projected to receive the largest share of life sciences venture capital funding in the nation during 2013, with 45 percent of all medical device and biopharmaceutical funding expected to go to California-based companies. The report found that California’s biomedical industry generated more than $96 billion in revenues in 2012, and directly employs 267,000 people with average annual salaries of more than $95,000.

“California is the birthplace of innovation and the state continues to lead the nation in high-paying jobs that directly contribute to the health and well-being of Americans and people around the world,” said CHI President and CEO David L. Gollaher, Ph.D. “The biomedical ecosystem in the state continues to thrive; indirect and induced employment provide an additional 497,000 jobs in supporting industries, multiplying the sector’s economic impact.”

The California Biomedical Industry Report provides annual highlights of the biomedical industry in California. Key findings of the 2014 report include:

  • During 2008-2012, biopharmaceutical and medical device employment in California grew two percent; in contrast to states traditionally associated with these industries that lost jobs.
  • The biomedical industry directly employs 267,000 people in the state, and indirect and induced jobs add another 497,000, totaling 764,000 jobs created by the biomedical industry in California.
  • Total biomedical industry revenue in California in 2012 topped $96 billion.
  • Average annual salaries for direct biomedical employees in the state are more than $95,000.
  • In 2013, California is projected to receive 45 percent of total medical device and biotech venture capital funding in the U.S.
  • California’s academic and research institutions lead the nation in National Institutes of Health (NIH) funding, receiving 3.14 billion in 2013.
  • Combined direct company and employee biomedical industry taxes in 2012 totaled more than $9 billion paid in federal, state and local taxes.
  • Of the 2,490 biomedical companies in California, 2,252 are privately held; these are mostly small, innovative startups working to bring promising new technologies to the marketplace.
  • In the first three quarters of 2013, California companies have nearly 1,200 new drugs, therapeutics and medicines currently in development.

“It is encouraging to see the nearly 2,500 companies in California’s biomedical industry continue to grow robustly and advance the innovation pipeline,” said Peter Claude, partner, PwC US. “They have shown remarkable resilience in the face of challenges confronting the whole biomedical sector – from the headwinds of the overall economy, to new competitive entrants and the need to evolve and adapt to changes sweeping across all healthcare.”

To a large degree, California’s biomedical industry is built on academic discovery science. Basic research in genomics, pharmacology, bioengineering and other areas transfers readily to established California companies or inspires new start-ups here. In 2013, California academics are expected to receive NIH grants exceeding $3 billion, far and away leading the nation.

For more information and to view the full report visit: http://www.chi.org/2014biomedreport.

Contacts:
Erica Hiar
California Healthcare Institute
hiar(at)chi(dot)org
202-579-7605

Tony Herrling
Brainerd Communicators, Inc.
herrling(at)braincomm(dot)com
(212) 986-6667        

About the California Healthcare Institute
CHI represents more than 275 leading biotechnology, medical device, diagnostics, and pharmaceutical companies, and public and private academic biomedical research organizations. CHI’s mission is to advance responsible public policies that foster medical innovation and promote scientific discovery. CHI’s website is http://www.chi.org. Follow us on Twitter @calhealthcare, Facebook, LinkedIn and YouTube.

About PwC’s Health Industries Group
PwC’s Health Industries Group (http://www.pwc.com/us/healthindustries) is a leading advisor to public and private organizations across the health industries, including healthcar providers, pharmaceuticals, health and life sciences, payers, employers, academic institutions and non-health organizations with significant presence in the health market. Follow PwC Health Industries at @PwCHealth.

About PwC US
PwC US helps organizations and individuals create the value they're looking for. We're a member of the PwC network of firms in 157 countries with more than 184,000 people. We're committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at http://www.pwc.com/US. Gain customized access to our insights by downloading our thought leadership app: PwC's 365™ Advancing business thinking every day

Learn more about PwC by following us online: @PwC_LLP, YouTube, LinkedIn, Facebook and Google +.

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This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors.