News & Events : News : NH Biotech Firms Fuel Growth in Jobs
March 24, 2009
NH Biotech Firms Fuel Growth in Jobs
By JIM KOZUBEK
New Hampshire Union Leader Correspondent
Sunday, Mar. 22, 2009
Biotech and medical-device manufacturers in the state are enjoying steady growth and hiring, spurred by a combination of technological leaps and the aging of the general population, said Paula Newton, president of the New Hampshire Bio-Medical Council.
"This is a bright spot because not only are companies providing products, they use precision machine and advanced-materials companies from the state to make parts," Newton said.
According to the Biotechnology Industry Organization, biotech companies in the state captured $192 million in venture capital between 2002 and 2007, including $71.4 million in 2007, while the number of private-sector jobs grew by 14.7 percent in that time, rising to 3,321 jobs.
The organization has no recent data on the sector, but most companies are reporting continued growth.
Adam Prime, president and CEO of Phase II Medical Manufacturing in Rochester, said his company has seen revenue increase 65 percent each year for the past three years, including last year, although the growth rate will not be as substantial this year, he said.
"People need medical attention whatever the economy," he said.
Phase II makes single-use disposable devices such as tubes and portals, and parts for endoscopes and intravenous therapy for 20 medical device labels.
The company six months ago expanded its manufacturing and production capacity by 50 percent, adding a clean room and more office space, and expanding its workforce by 15 percent to 65 employees, he said.
The company could hire more managers and five to six more assemblers this year, he said.
Growth industry
Biotech is a diverse sector. It includes superstars in the state such as antibody discoverer Adimab Inc., which captured three rounds of venture capital in the past two years, and up-and-coming cancer-drug discovers ImmuRx Inc. and Woomera Theraputics Inc. of Lebanon.
International monoclonal antibody maker Lonza Biologics Inc., six months ago completed a $300 million expansion in Portsmouth, but the Switzereland-based company has delayed increasing its New Hampshire work force from 650 to 1,000, as it indicated last year it would.
Biotech manufacturing is a subsector. Patents numbered 644 for biosciences in the past six years, and 40 percent were for surgical and medical equipment associated with manufacturing.
The average pay for biotech manufacturing jobs in the state is $54,922, according to an industry report.
Eric Crainich, president of Design Standards Corporation in Charlestown, said his company makes parts for 26 medical-device labels, and revenue is up 15 percent in the first two months of this year, he said.
"We have seen robust activity for the last several years," Crainich said. "Spinal and orthopedic, geriatric, laproscopic and steerable technologies are strong, a lot of what's going on improves people's lives, and we are seeing the dollars to reward investors."
Design Standards plans to add five to 10 mechanical engineers, machinists and assemblers, he said.
Daniel Keefe, director of marketing for ALPCO Diagnostics in Salem, said his company experienced revenue growth of between 5 to 10 percent in the first two months of the year, surpassing its expectations.
"It is a slowdown in growth, but it is growth nonetheless," Keefe said.
ALPCO makes and distributes immunoassay kits for drug makers to monitor levels of Vitamin D, insulin and adiponectin, a suspected biomarker for weight gain and diabetes, he said.
Keefe said biotech is "more insulated from the economy, and due to this stimulus package, we are now seeing an upsurge from NIH (National Institute of Health), institutions and labs inquiring on prices."
Stryker Corp., parent company to Stryker Biotech, which completed a $100 million expansion in West Lebanon in 2007 and added 150 employees, predicts growth of 3 percent to 4 percent this year.
The state has several incentives for bioscience companies. An R&D tax credit was passed in 2007 and has reserved $1 million a year for the next five years for companies to get a 5 percent credit of the business enterprise tax. The state also reinstated its job-training fund to give up to $1 million in matching funds.
The New Hampshire Center for Innovation Research has $400,000 available in the current fiscal year for business-industry collaborative grants.
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