Michigan Bioscience Industry Sees Healthy Growth as State Recovers
Thursday, October 09, 2014
From Corp! Magazine
Bottles of pills and prosthetic legs—it may not be the first thing that comes to mind when thinking about what is driving Michigan’s economy, but it should be.
While the manufacturing industry is slowly climbing the recession recovery ladder, the bioscience industry has sprung back to life.
In Michigan the bioscience industry saw an uptick of 1,760 companies in 2012 from 1,595 companies in 2007, according to a recently released report from Biotechnology Industry Organization (BIO). This contrasts with an overall 17.3 percent reduction in the number of businesses in Michigan that occurred during that same time span.
The Washington, D.C., trade organization reported that increase represented 2,610 new Michigan jobs in that two-year span.
Stephen Rapundalo, who heads MichBio, says the average pay for bioscience jobs is more than $80,000 a year.
“From 2007 to 2012 there was an uptick in the industry and that was a bad economic time in Michigan,” says Stephen Rapundalo, MichBio CEO. “Despite the lagging economy the industry was still clearly growing. The (BIO) report showed that while the pharmaceutical sector did have a small loss from 2003 to 2007 with lots of consolidation and closing facilities, it began to stabilize after that, which is an improvement.”
And over the past 10 years, 56 percent of the venture capital investments in Michigan have been in life science.
What are biosciences?
Rapundalo said the bioscience industry is broken up into five sectors – agriculture and industrial environment, medical devices and equipment, pharmaceuticals, research diagnostics and testing, and bioscience distribution.
“In Michigan the two largest bioscience industries are the medical device sector and pharmaceuticals,” says Rapundalo.
Both are considered life science industries.
Michigan is now ranked number 10 in the country in the size of its medical device sector, says Rapundalo.
The sector is continuing to grow despite the new 2.3 percent Medical Device Excise Tax on the sale of certain medical devices.
“There are more than 600 life science companies in Michigan,” says Paula Sorrell, Michigan Economic Development Corporation vice president of entrepreneurship, innovation and venture capital.
[Read article online.]