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The somewhat golden state

The California economy has been a wreck in recent years (not that they’re alone in that regard; simply so big in terms of GDP and such that their failings are so much more noticeable), but there are some rays of light from the biomedical sector, according to PricewaterhouseCoopers (PwC). As the firm notes:

The 2011 California Biomedical Industry Report analyzes job growth, wages, tax revenues, product manufacturing, and venture capital funding, and serves as a barometer for biomedical centers across the Unites States.

PwC reports that many CEOs from California’s largest biomedical companies are planning to increase jobs, manufacturing, and research and development operations within California. While the state maintains its industry dominance, other regions are quickly catching up and are expected to replicate the unique “ecosystem” favoring biomedical innovation within just 5 years.

Here are some highlights:

  • 68% said they expected to expand the overall size of their workforce within California, while only 31 percent planned to increase workforce levels outside the state.
  • While relocating out of state was not a strategy cited by CEOs surveyed, when asked about the most attractive U.S. biomedical markets outside California, 76% named Greater Boston followed distantly by North Carolina (31%), Minneapolis-St. Paul (25%) and the Washington-DC corridor (20%).
  • 84% of respondents believe that the FDA regulatory approval process has slowed the growth of their organizations.
  • More than three-quarters of respondents predict that the cumulative impact of changes in the healthcare marketplace, driven largely by health reform, will decrease their profit margins and 54 percent believe that the pace of innovation will slow.

For the full report, click here.

About PwC’s Pharmaceutical and Life Sciences Industry Group

PricewaterhouseCoopers Pharmaceutical and Life Sciences Industry Group (www.pwc.com/pharma or http://www.pwc.com/medtech) provides assurance, tax and advisory services to proprietary, generic and specialty drug manufacturers, medical device and instrumentation suppliers, biotechnology companies, wholesalers, pharmacy benefit managers, contract research organizations, and industry associations. The firm is dedicated to delivering effective solutions to the complex strategic, operational, and financial challenges facing pharmaceutical, biotechnology and medical device companies. Follow PwC Health Industries at http://twitter.com/PwCHealth.


February 4, 2011 Posted by | Corporate, Market Trends | Leave a comment