New Jersey at a Glance – Often dubbed the “Medicine Chest of the World,” New Jersey has a rich legacy and a dynamic present as a global hub for life sciences. The state is home to 8 of the world’s top 10 pharmaceutical companies and 9 of the top 10 research and development firms, with a diversified cluster spanning pharmaceuticals, biotechnology, and medical devices. More than 5,600 life sciences establishments operate in New Jersey, collectively employing around 115,000 people as of 2023. This industry contributes an estimated $121 billion in economic output. In the past two years alone, New Jersey-affiliated companies were behind 43% of all novel FDA drug approvals – a testament to the state’s outsized role in biopharma innovation. The following report provides an in-depth look at how New Jersey evolved into a life sciences manufacturing powerhouse and why it continues to lead in key areas such as pharmaceuticals, biotechnology, and medical technology.

Historical Development of New Jersey’s Life Sciences Sector

New Jersey’s life sciences story dates back well over a century. In the late 1800s, a cluster of pioneering healthcare companies took root in the Garden State – Johnson & Johnson (founded 1886 in New Brunswick), Becton, Dickinson & Co. (1897), and Merck & Co. (1891) being notable examples. These firms established some of the nation’s first research labs and manufacturing plants for medical products, attracting scientists and skilled workers from across the country. By the early 20th century, New Jersey had earned its nickname as “the Medicine Chest of the World,” as almost every major pharmaceutical company established a presence in the state.

This early concentration yielded groundbreaking advances: Merck’s Rahway campus (opened 1903) became a major site for chemical and antibiotic production, Roche’s Nutley facility (opened 1928) mass-produced vitamins and later pharmaceuticals, and Johnson & Johnson introduced iconic products like sterile surgical dressings and BAND-AIDs® from its New Jersey base. By the mid-20th century, the state hosted the corporate or R&D centers of nearly all global pharma leaders. This legacy laid a robust foundation: New Jersey played a pivotal role in 20th-century medical milestones such as mass vaccine production, antibiotics, chemotherapy, and medical devices, helping to vastly increase life expectancy. The synergy between industrial innovation and academic science – exemplified by collaborations with institutions like Rutgers University and the influx of talent to New Jersey – further cemented the state’s leadership in life sciences.

In recent decades, as biotechnology and advanced therapies emerged, New Jersey leveraged its pharma heritage to diversify. During the 1980s-2000s, homegrown biopharma like Celgene (Summit, NJ) rose to prominence, and global firms such as Novartis and Sanofi chose New Jersey for their U.S. headquarters. By 2015, New Jersey’s concentration of pharmaceutical activity was unparalleled, with industry leaders spanning large pharma, biotech start-ups, and medical tech companies all operating in close proximity. This historical evolution – from 19th-century “apothecary” firms to 21st-century biotech – has positioned New Jersey as a unique ecosystem where legacy experience meets cutting-edge innovation.

Key Industry Segments: Pharmaceuticals, Biotechnology, and Medical Devices

New Jersey’s life sciences sector is broad-based, comprising several key segments that reinforce each other:

• Pharmaceuticals (Big Pharma and Generics): The state’s pharmaceutical sector is its most storied asset. Household-name companies maintain major operations or headquarters in New Jersey. Johnson & Johnson is headquartered in New Brunswick and has multiple divisions (pharmaceutical, consumer health, and medical devices) in the state. Merck & Co. (known as MSD outside the U.S.) established its headquarters and research labs in Rahway nearly a century ago and continues manufacturing and R&D there. Bristol Myers Squibb (BMS) has deep roots in New Jersey as well – from the Squibb Institute in New Brunswick in the 1930s to BMS’s modern campuses in Lawrenceville and New Brunswick. Other global pharma leaders with significant New Jersey sites include Novartis (whose U.S. headquarters in East Hanover supports both R&D and production), Sanofi (U.S. headquarters in Bridgewater), Pfizer (with substantial facilities for oncology and consumer products), GSK, Eli Lilly, and AbbVie, among others. In total, 14 of the world’s largest biopharmaceutical companies have a headquarters or major facilities in New Jersey, underscoring the state’s dominance. This pharma presence spans everything from large-scale drug substance manufacturing (e.g. sterile injectables, pills, vaccines) to clinical development and corporate management. Notably, New Jersey’s pharmaceutical manufacturing workforce is the #2 largest in the U.S., with a concentration around four times the national average (307% higher) – meaning the state specialises in high-volume production of medicines as well as R&D. Traditional strengths in small-molecule drugs are now complemented by growing capacity in biologics and vaccines, making New Jersey a comprehensive pharma hub.
• Biotechnology and Advanced Therapies: In addition to big pharma, New Jersey has nurtured a thriving biotech sector focused on innovative therapies like cell and gene treatments, oncology biologics, and rare diseases. The state is home to more biomanufacturing facilities than any other U.S. state, reflecting an early lead in scaling up biotech production. Pioneering companies include Celgene (originating in NJ’s biotech boom and now part of BMS) and PTC Therapeutics (South Plainfield-based, specialising in rare disease drugs), which in 2021 opened a new gene therapy manufacturing site in Hopewell. Legend Biotech and Johnson & Johnson’s Janssen have partnered on CAR-T cell therapy, with manufacturing in Raritan. Amicus Therapeutics, ADMA Biologics, Immunomedics (now part of Gilead) and others add to the roster of homegrown biotechs. Global biotech players are also investing: for example, in 2021 BeiGene, a leading oncology biotech from China, chose New Jersey for its U.S. flagship campus – a 400,000 sq. ft. biologics manufacturing and R&D facility in Hopewell (opened in 2024, creating hundreds of jobs). Enzene Biosciences from India is similarly opening a $50 million, 55,000 sq. ft. biomanufacturing plant in Hopewell to produce biosimilars using continuous manufacturing technology. These investments bolster New Jersey’s status in cell and gene therapy – indeed 40% of all cell and gene therapy development programs are taking place in the New Jersey region. The state also hosts numerous CROs and CDMOs (contract research and manufacturing organisations) that support biotech: for example, BioCentriq (an NJIT-linked cell therapy production centre) just expanded with a state-of-the-art GMP facility in South Brunswick. This ecosystem of nimble biotechs and service providers, alongside pharma giants, means New Jersey covers the full life cycle from discovery to large-scale biomanufacturing.
• Medical Devices and Diagnostics: New Jersey’s life sciences leadership extends beyond drugs to medical devices, diagnostics, and healthcare technology. The state boasts 8 of the top 10 medical device companies in the U.S. with a presence in New Jersey, supporting around 390 device manufacturing sites and 11,000 employees (about 22% above the U.S. average for device industry employment). One of the industry’s founding firms, Becton, Dickinson & Co. (BD), is headquartered in Franklin Lakes, NJ since 1906 and remains a global leader in syringes, surgical instruments, and diagnostics. Stryker’s trauma & extremities division operates a major orthopaedic implant manufacturing facility in Mahwah. Johnson & Johnson’s medical devices division (including Ethicon for surgical products) has significant operations in New Jersey. Other key medtech players include Siemens Healthineers, Abbott, Boston Scientific, and Medtronic, all of which maintain offices, R&D labs, or production sites in the state’s medtech corridor. The diagnostics sector is also represented by companies like Quest Diagnostics, which built a 250,000 sq. ft. cutting-edge lab facility in Secaucus, and Roche Diagnostics, which historically had a presence in NJ. With robust logistics and clean manufacturing capabilities, New Jersey’s environment is well-suited to device production – from simple consumables to high-tech imaging equipment. The convergence of device firms with pharma (e.g. drug delivery systems, combination products) and nearby hospital networks has spurred innovation in areas such as robotic surgery instruments, wearable health monitors, and diagnostic test kits. In summary, New Jersey’s life sciences sector is a three-legged stool – pharma, biotech, and medtech – each strongly developed, making the overall industry more resilient and synergistic.

Profiles of Major Companies and Manufacturing Facilities

New Jersey’s leadership is embodied by the many prominent companies calling it home. Below are profiles of a few major life sciences corporations and their manufacturing footprints in the state, illustrating the depth of activity:

• Johnson & Johnson (J&J): Headquartered in New Brunswick since its founding in 1886, J&J is one of the world’s largest healthcare companies. Its sprawling New Brunswick campus houses corporate leadership and R&D, while manufacturing of various products occurs at NJ sites such as Skillman (consumer health products) and Somerville (Ethicon’s surgical device plant). J&J’s presence has been catalytic for the region – it spurred the development of New Brunswick as a “healthcare city” anchored by the company, Rutgers University’s medical school, and related enterprises. J&J’s pharmaceutical arm (Janssen) operates R&D facilities in Titusville and Raritan, where it also produced one of the first CAR-T cell therapies for cancer in partnership with Legend Biotech. As a native New Jersey company, J&J exemplifies the state’s continuity from historical bandages and baby powder to modern biologics and devices.
• Merck & Co.: With a New Jersey presence dating to 1891, Merck established its iconic Rahway research and manufacturing campus in the early 1900s. Rahway (formerly known as Merck’s Kenilworth/Rahway site) today serves as Merck’s global headquarters and a major pharmaceutical R&D centre, as well as a manufacturing site for certain medicines and vaccine components. Over the decades, Merck’s NJ facilities have produced everything from antibiotics like streptomycin to today’s oncology and HPV vaccine products. The company’s Rahway labs were where numerous breakthroughs occurred, and the site remains a linchpin of Merck’s pipeline development. Merck also has a substantial workforce in Upper Gwynedd, PA and had legacy operations in Kenilworth (now transitioning to the NEST campus, see below). With thousands of employees in NJ, Merck contributes significantly to the state’s pharma output and has been expanding production capabilities nationwide (e.g. new plants in other states) while keeping high-level R&D anchored in New Jersey.
• Bristol Myers Squibb (BMS): BMS’s lineage in NJ goes back to E.R. Squibb, who built a pharmaceutical factory in New Brunswick in 1905. Today, BMS maintains large R&D campuses in Lawrenceville and Princeton (Hopewell), including biologics development labs. The company recently consolidated some operations from other sites (like relocating a major division from NYC) to expand in central New Jersey’s research corridor. BMS’s acquisition of Summit-based Celgene in 2019 further deepened its NJ ties – the former Celgene campus in Summit now serves as a key BMS site focusing on cell therapy and cancer drug development. BMS also operates a state-of-the-art biologics manufacturing facility in Devens, MA, but its NJ sites handle significant early-stage process development and clinical production for biologics and gene therapies. For instance, BMS in 2021 opened a new cell therapy manufacturing facility in Warren, NJ for cutting-edge personalised treatments. With over 4,000 employees in the state, BMS is a pillar of New Jersey’s biopharma landscape.
• Novartis: The Swiss pharma giant’s U.S. headquarters has been in New Jersey (originally in Summit, now in East Hanover) for many years. The East Hanover campus oversees Novartis’s commercial and clinical operations in the U.S. and includes research labs. A notable Novartis facility in NJ is its cell therapy manufacturing plant in Morris Plains, which was one of the first sites globally to produce a CAR-T therapy at commercial scale (Novartis’s Kymriah for leukaemia, approved 2017). This 170,000 sq. ft. Morris Plains site established New Jersey as a leader in cell therapy production, leveraging local talent in bioprocessing. Novartis also invested in radiopharmaceutical development in NJ via its subsidiary Advanced Accelerator Applications. The company’s choice to centralise certain high-tech manufacturing in New Jersey underscores the state’s appeal for complex, regulated production.
• Sanofi: The French pharmaceutical leader has a significant New Jersey footprint, with its U.S. headquarters and R&D centre in Bridgewater and campuses in Princeton. Sanofi’s Bridgewater site (previously home to Schering-Plough and then Merck, before Sanofi relocated here) hosts hundreds of employees in drug development, regulatory, and commercial roles. In 2023, Sanofi opened a new $130 million corporate campus in Morristown, NJ to modernise its offices and consolidate operations. The company historically manufactured injectable and biologic drugs in Ridgefield, NJ – in fact, Thermo Fisher Scientific announced in 2025 that it is acquiring Sanofi’s Ridgefield sterile fill-finish plant to continue local production of injectable medicines. This sale is part of Thermo Fisher’s $2 billion U.S. expansion in biologics manufacturing, and keeping the facility running under new ownership will preserve high-skilled jobs and capacity in New Jersey. Sanofi’s commitment to NJ remains strong, as evidenced by ongoing investment and the state’s award of Emerge tax credits to encourage Sanofi’s growth.
• Global Generics and Specialty Pharma: New Jersey also hosts many generics manufacturers and specialty pharma companies. Sun Pharmaceutical Industries, one of the world’s largest generics makers (headquartered in India), has chosen New Jersey for its U.S. base. In 2025, Sun acquired a 100,000 sq. ft. facility in Princeton to establish its U.S. headquarters and innovation centre. The NJEDA supported this with $5.24 million in tax credits under the Emerge Programme, securing Sun’s commitment to at least 11 years in NJ. Likewise, Teva Pharmaceutical, Dr. Reddy’s Laboratories, and Hikma have offices or labs in New Jersey to tap into the state’s formulation science talent. These companies often use New Jersey as a hub for regulatory affairs and clinical testing, given the proximity to the FDA in Maryland and the region’s clinical trial infrastructure.
• Medical Device Leaders: As mentioned, Becton Dickinson (BD) is a homegrown success with multiple NJ sites (including research in Franklin Lakes and a large manufacturing plant in Totowa producing medical needles and kits). Stryker’s Mahwah facility produces orthopaedic implants and instruments that are distributed globally. Siemens Healthineers operates a significant diagnostics manufacturing site in Flanders, NJ (formerly Dade Behring) making reagents for clinical labs. Teleflex, Convatec, and Integra LifeSciences are examples of other device/tech firms with manufacturing or assembly operations in the state. The 390 device manufacturing sites in New Jersey range from big factories to specialised machine shops, contributing to a robust supply chain. For example, a small firm might make precision components for catheters, while a large one assembles MRI machines – together, these create a comprehensive medtech manufacturing base.
• Notable Facilities and Innovation Campuses: New Jersey’s landscape features several large-scale life science campuses that merit mention. The Princeton West Innovation Campus (Hopewell) – formerly owned by BMS – has been revitalised with new tenants like BeiGene and Enzene, turning it into a burgeoning biotech manufacturing park. In northern NJ, the ON3 campus (in Nutley/Clifton) repurposed Roche’s old headquarters into a multi-tenant site housing medical school facilities (Hackensack Meridian School of Medicine) alongside companies and startups, blending academia and industry. Similarly, Merck’s former Kenilworth campus is being redeveloped as NEST (Northeast Science and Technology Center), offering 2 million+ sq. ft. of lab and office space on 108 acres just outside Newark. These repurposed legacy sites provide move-in-ready labs and manufacturing suites at a fraction of New York or Boston real estate costs, a key advantage for companies expanding in New Jersey. For instance, Intercept Pharmaceuticals relocated its headquarters from Manhattan to Morristown, NJ specifically for more affordable, spacious facilities. The New Jersey Bioscience Center in North Brunswick (an incubator-accelerator campus managed by NJEDA) and upcoming projects like The Cove in Jersey City (planned 1.4 million sq. ft. life sciences campus on the Hudson Waterfront) further expand the inventory of high-quality sites. Whether a Fortune 500 pharma needs a huge tract for biologics production or a medtech start-up needs a 5,000 sq. ft. pilot plant, New Jersey’s real estate options can accommodate it.

Together, these companies and facilities underscore New Jersey’s critical mass in life sciences. The concentration of industry giants alongside specialized manufacturers creates an ecosystem where supply chains are local, talent flows freely between firms, and collaboration happens organically. It is common, for example, for a drug to be developed at a New Jersey pharma HQ, get tested in clinical trials run by NJ-based CROs, be manufactured at a New Jersey plant, and distributed globally via Newark Airport – all within the state’s borders. The presence of so many life science leaders also means New Jersey companies continue to attract new capital and projects. In the last five years, there have been dozens of major investments and expansions: from Thermo Fisher’s acquisition of an NJ plant (2025) to Eli Lilly’s ongoing biologics operations in Branchburg (though Lilly is divesting older facilities to refocus), to Haleon (GSK’s consumer health spin-off) moving its U.S. headquarters to NJ in 2025. These developments reinforce that New Jersey is not resting on legacy – it is a growing, evolving hub that continues to win new projects in an ultra-competitive industry.

Workforce Talent and Educational Ecosystem

One of New Jersey’s greatest strengths is its highly skilled workforce and rich educational ecosystem, which together fuel the life sciences sector’s success. The state’s workforce is often described as one of the most educated and specialised in the world. Key attributes include:

• Unmatched Concentration of Scientists and Engineers: New Jersey has the highest density of scientists and engineers per square mile in the United States. The pharmaceutical and biotech cluster alone directly employs nearly 120,000 people in New Jersey across research, manufacturing, and related roles, with tens of thousands more in supporting industries. According to Bureau of Labor Statistics data, New Jersey employs more biochemists and biophysicists than almost any other state. In pharmaceutical manufacturing occupations, New Jersey’s workforce is truly exceptional – about 23,000 New Jersey workers focus on pharmaceutical production, which is three times the national average concentration. These figures reflect a talent pool built over generations: many families have several members employed in pharma or medtech, and expertise is passed on and retained within the state.
• Top-Tier Academic Institutions: The state is home to world-class universities that supply new graduates and research breakthroughs. Princeton University, an Ivy League institution, is a global research powerhouse in fields like chemistry, molecular biology, and engineering. While Princeton does not have a medical school, it actively collaborates in biomedical research (e.g. Princeton is part of the NIH-funded New Jersey Alliance for Clinical and Translational Science, partnering with Rutgers and NJIT on translational medicine initiatives). Rutgers University, a public Big Ten research university, has extensive life sciences programs: Rutgers houses the Ernest Mario School of Pharmacy, two medical schools (Robert Wood Johnson Medical School in New Brunswick and New Jersey Medical School in Newark, both now under Rutgers Biomedical and Health Sciences), a School of Public Health, a School of Health Professions, and numerous research institutes such as the Rutgers Cancer Institute of New Jersey (the state’s only NCI-designated Comprehensive Cancer Center). The Rutgers Cancer Institute in partnership with RWJBarnabas Health is currently building New Jersey’s first free-standing cancer hospital in New Brunswick – a facility that will enhance cancer research and care when it opens in 2024. New Jersey Institute of Technology (NJIT) and Stevens Institute of Technology contribute strengths in biomedical engineering, device development, and data science. Rowan University, an emergent research university in South Jersey, notably established Virtua Health College of Medicine & Life Sciences in 2022 (affiliated with Virtua Health) and now operates two medical schools (an MD program in Camden and a DO program in Stratford) plus a new School of Translational Biomedical Engineering and Sciences. Rowan is one of only two U.S. public universities with both an MD-granting and a DO-granting medical school, illustrating New Jersey’s commitment to medical education. In sum, New Jersey’s higher education system produces a steady pipeline of STEM graduates – the state ranks #2 nationally for concentration of STEM degrees awarded. Importantly, the K-12 system is also top-ranked (New Jersey is #1 in the U.S. for education at the elementary and secondary level), ensuring that local students are well-prepared for scientific careers.
• Specialised Training and Talent Development: Beyond traditional degrees, New Jersey has invested in targeted workforce training for the life sciences. For example, NJIT’s New Jersey Innovation Institute (NJII) runs industry-aligned programs – in collaboration with NJIT, they offer a Professional Science Master’s (PSM) degree and graduate certificate in Cell & Gene Therapy, the only program of its kind in the nation. NJII also developed a unique biopharma manufacturing apprenticeship that trains students over 18 months in GMP operations, culminating in an industry-recognised certificate. These programmes directly address advanced manufacturing skills needed by cell therapy and biologics producers. Likewise, Rutgers offers a Masters in Clinical Trial Sciences, and community colleges in NJ have curricula focused on pharmaceutical technology. Workforce development partnerships flourish: many big pharma companies collaborate with local colleges on upskilling employees (e.g. through BioNJ’s Talent Services initiatives). The result is that New Jersey’s talent pool isn’t static – it’s continuously refreshed with people adept in the latest technologies (such as cell culture, gene editing, automation, data analytics for pharma, etc.). According to a 2024 industry report, New Jersey’s life sciences manufacturing workforce ranks second in the country, and the state produces an abundance of both traditional pharma technicians and cutting-edge biotech specialists. In fact, commercial real estate firm CBRE noted that New York–New Jersey excels in high-volume pharmaceutical manufacturing talent, whereas Boston leads in certain biotech research skills – a reflection of New Jersey’s long history of training experts in large-scale production and process engineering.
• Cluster Synergy and Experienced Professionals: One often overlooked asset is the sheer experience level of New Jersey’s life sciences professionals. Many have spent their entire careers in the state’s pharma industry, accruing deep know-how. When startups or new investors come to New Jersey, they can readily hire seasoned project managers, regulatory experts, and manufacturing specialists who understand how to bring a drug from lab to market. This mentorship and knowledge base accelerates innovation. As BioNJ’s CEO described, “New Jersey offers an unmatched ecosystem for innovation and growth, boasting one of the world’s most skilled workforces in biopharmaceutical manufacturing, R&D, medical devices and cell and gene therapy.”. The workforce is also diverse and globally oriented, with significant multilingual capability and cultural ties to Europe, Asia, and beyond – useful for globally run clinical trials and regulatory work.

In summary, New Jersey’s talent ecosystem – from bright young graduates to veteran pharma scientists – provides the lifeblood for the industry. Public policy reinforces this: state leaders emphasise STEM education and often cite that New Jersey is the #1 state for education and among the safest states to live, making it easier to attract and retain top talent. The highly educated workforce, combined with world-class universities doing cutting-edge research, ensures that companies in New Jersey have the human capital needed to innovate and grow.

Infrastructure, Logistics, and Real Estate for Manufacturing

A critical factor behind New Jersey’s manufacturing prowess in life sciences is its strategic infrastructure and real estate advantages. The state provides an ideal platform for both producing life science products and delivering them to global markets:

• Geographic Location and Connectivity: Situated in the heart of the densely populated U.S. Northeast Corridor, New Jersey offers unparalleled market access. Companies in New Jersey can reach roughly one-third of the U.S. population within a day’s drive and about 40% within two days. The state is flanked by the major metropolitan markets of New York City and Philadelphia, and it borders the international commerce hubs of both. For life sciences firms, this means labs and factories in NJ are close to millions of patients, clinical trial sites, hospitals, and pharmacies. New Jersey’s transportation infrastructure is highly developed: the New Jersey Turnpike (I-95) and other highways criss-cross the state, facilitating trucking of pharmaceuticals and devices. Newark Liberty International Airport is part of the busiest airport system in the nation, offering extensive cargo capabilities – vital for shipping high-value medical products quickly (including cold-chain biologics). Additionally, the Port of New York and New Jersey (Port Newark/Elizabeth) is the largest seaport on the U.S. East Coast, handling container shipments of raw materials and finished goods to and from Europe, Asia, and beyond. New Jersey also boasts the highest rail density in the country, supporting freight movement and employee commuting. Collectively, this connectivity ensures that a medicine manufactured in New Jersey can be transported efficiently to distribution centers and patients nationwide, or exported through nearby ports and airports. Infrastructure reliability and redundancy (multiple airports, ports, roadways) give companies confidence in supply chain continuity.
• Affordable and Available Real Estate: Compared to rival life science hubs, New Jersey offers more affordable real estate with room to expand. The state has a legacy of large corporate campuses (former pharma HQs and R&D centers) that have been modernised and repurposed for multi-tenant use, creating “plug-and-play” lab and manufacturing spaces at competitive costs. According to a 2024 JLL-Choose NJ report, New Jersey already has over 22 million square feet of existing lab space – the 4th largest life sciences real estate market in the U.S. – and this is projected to grow by 27% by 2026 with new developments. Laboratory and biomanufacturing space in NJ can be 40–60% cheaper in rent than in Boston or San Francisco. For example, Class A lab space in New Jersey averages around $28 per sq. ft., versus closer to $90–100 in Cambridge/Boston. Office space shows similar cost advantages (NJ averages in the low $30s per sq. ft., vs $80–90 in NYC). These differences are significant for companies scaling up manufacturing, which often requires large-footprint facilities. New Jersey’s legacy pharma sites – such as the expansive campuses in Kenilworth, Pearl River (just over the border in NY), Princeton/Hopewell, and Parsippany – mean that companies can find or build 400,000+ sq. ft. facilities relatively quickly without urban congestion or astronomical costs. This capacity to grow has attracted firms like BeiGene and others who needed substantial acreage and utilities for manufacturing.
• Modern Innovation & Manufacturing Hubs: The state, in partnership with developers and universities, is creating new infrastructure tailored to life sciences innovation. A prime example is The HELIX (New Jersey Innovation Hub) in New Brunswick – a planned 4 million sq. ft. mixed-use “innovation city” adjacent to Rutgers, focused on life sciences and medical education. The HELIX (Hub for Edison–Linked Innovation and eXchange) broke ground in 2021 with a state investment of $665 million. It will house Rutgers’ Robert Wood Johnson Medical School, startups incubators run by companies like Portal Innovations, corporate lab space, and collaborative research facilities for institutions including Princeton University (which has signed an MOU to have a presence there) and even international partners like Tel Aviv University. Similarly, The Cove project in Jersey City aims to create a new waterfront life sciences campus integrating lab/office space with residential and academic buildings. Another initiative, SciTech Scity in Jersey City (near Liberty Science Center), is an emerging tech incubator campus backed by NJEDA to foster science start-ups. These hubs are strategically located near transit (the HELIX is steps from the NJ Transit/Amtrak rail station in New Brunswick, and The Cove is near PATH trains) to maximise accessibility.

In addition, repurposed pharma campuses continue coming online: the NEST in Kenilworth (former Merck HQ) introduced 1.2 million sq. ft. of lab/office space to the market in 2025, temporarily increasing vacancy but ultimately offering high-quality space for new companies. The ON3 campus already hosts medical school facilities, Hackensack Meridian Health’s Center for Discovery and Innovation (a research institute), and corporate tenants like Modern Meadow (biofabrication). South Jersey Technology Park (SJTP) at Rowan University offers incubator labs and has attracted startups in diagnostics and biotech. All these sites illustrate New Jersey’s abundance of ready infrastructure for life sciences. As JLL’s vice chairman noted, “New Jersey offers top-tier R&D and manufacturing spaces, including repurposed legacy sites that are business-ready and cost-effective.” This is a major selling point for firms that might face lab space shortages or exorbitant rents in Boston or San Francisco.

• Utilities and Environment: Manufacturing pharmaceuticals and biotech products is resource-intensive – requiring reliable power, water, waste treatment, and sometimes specialized needs like clean steam or inert gas supplies. New Jersey benefits from a robust utilities network developed to support heavy industry (from its manufacturing past in chemicals and petroleum) and dense population. Thus, sites in NJ often have industrial-grade electricity capacity and water quality already in place. For instance, the Hopewell campus that BeiGene moved into had pre-existing utility plants that could be upgraded to support biologics production. The state’s moderate climate and extensive HVAC and engineering services sector also help – local firms know how to design and maintain facilities to meet FDA standards. Moreover, New Jersey’s environmental regulations are strict (given it’s a densely populated state), which has pushed companies to high compliance and sustainability. Many NJ pharma plants have ISO environmental certifications and are exploring renewable energy use (e.g. solar installations on large campus parking lots are common).
• Logistics for Life Sciences: In addition to macro connectivity, New Jersey has built up specialised logistics capabilities tailored to pharma/medtech. The proximity to UPS, FedEx, and DHL hubs means next-day delivery of medical shipments is routine. Importantly, Newark Airport has cold-chain storage facilities and is a gateway for international shipment of clinical trial materials and temperature-sensitive biologics. The Port has infrastructure for handling active pharmaceutical ingredients (APIs) and chemical raw materials safely. And because many pharma and device companies have been in NJ for decades, there’s an ecosystem of qualified suppliers and contractors: packaging manufacturers, sterile filtration providers, cleanroom outfitters, etc., often located within the state or region. This reduces downtime and speeds up supply chains for companies. During the COVID-19 pandemic, New Jersey’s central location allowed it to serve as a distribution point for vaccines and PPE, showcasing how quickly the state’s logistics networks can mobilise for healthcare needs.

In summary, New Jersey’s physical infrastructure – from its unbeatable location and transport links to abundant, affordable lab space and strong utilities – provides a solid backbone for life sciences manufacturing and distribution. Companies that set up operations in New Jersey can produce at scale and ship with ease, while also enjoying lower overhead costs relative to other major hubs. These advantages, coupled with state support for further infrastructure development, are a key reason why New Jersey continues to attract life sciences investments even in an era of remote work and decentralisation. As one industry executive put it, “New Jersey’s robust infrastructure and strategic location make it an ideal hub for life sciences innovation… with high-quality real estate that is globally competitive and readily available.”

BeiGene’s new flagship biologics manufacturing and R&D facility in Hopewell, New Jersey, opened in 2024. Global companies are investing in New Jersey’s infrastructure – BeiGene’s 42-acre campus is one of the largest pharma investments in the state in recent years.

Public-Private Partnerships, Incentives, and Policies Supporting the Industry

New Jersey’s life sciences success is not accidental – it has been supported by deliberate public-private partnerships and state policies designed to foster innovation, investment, and job growth in the sector. Key initiatives include:

• NJEDA and State Incentive Programs: The New Jersey Economic Development Authority (NJEDA) plays a central role in attracting and retaining life science businesses. The NJEDA offers a suite of financial incentives and support programs tailored to tech and biotech firms. Under the Economic Recovery Act of 2020, New Jersey launched the Emerge programme (for job-creation tax credits) and the Aspire programme (for development projects) to replace older incentives. Life science companies have been prime beneficiaries – for example, Sun Pharma’s new headquarters project in NJ received Emerge tax credits as noted earlier, ensuring high-paying jobs stay in-state. Another NJEDA program, NJ Ignite, offers grants that subsidise rent for start-ups in approved incubators, helping young biotech companies afford lab space. The Angel Investor Tax Credit provides a refundable tax credit for those investing in NJ biotech ventures, spurring more private funding to local start-ups. New Jersey also uniquely has the Technology Business Tax Certificate Transfer program, commonly known as the NOL (Net Operating Loss) Transfer program, which allows pre-revenue biotech companies to sell their state tax losses for cash – effectively providing non-dilutive funding. This programme has injected hundreds of millions of dollars into NJ biotechs over the years. Collectively, these incentives reduce the cost and risk of doing business in NJ, making it especially attractive for early-stage and expanding firms.
• Choose New Jersey and Economic Missions: Choose New Jersey, a public-private economic development organisation, partners with state government to market NJ globally and facilitate investments. It maintains international outposts (in Europe, India, Israel, etc.) to court life science firms abroad. Choose NJ often leads trade missions alongside the Governor to places like Israel, Ireland, India – all key life science markets. Outcomes of these missions have included Memoranda of Understanding that create landing pads for foreign companies in NJ. For instance, Choose NJ, BioNJ, and ABLE (India’s biotech association) signed an MOU in 2021 to encourage Indian biotech firms to set up in NJ, with an incubator (the Institute for Life Science Entrepreneurship in Newark) acting as a “soft landing” site. This directly led to companies like Enzene choosing NJ. Similarly, during a mission to Ireland in 2022, an MOU was signed whereby New Jersey’s DEVCO offered Irish start-ups free space at the New Brunswick Hub in exchange for collaboration. These public-private efforts show NJ’s proactive approach: rather than relying solely on local growth, the state actively recruits global talent and businesses.
• Partnerships with Universities and Healthcare Systems: The state has encouraged partnerships between academia, healthcare providers, and industry to spur innovation. A notable recent example is the Rowan University – NJEDA Strategic Innovation Center (SIC) for Medical Technology. Announced in 2025, NJEDA and Rowan partnered with accelerator Plug and Play to create a multi-site medtech startup accelerator in Camden and Glassboro/Mullica Hill. It will leverage Rowan’s new health sciences campus and the presence of Cooper University Health Care in Camden as an anchor, to mentor and fund early-stage medical device and health IT companies. NJEDA is investing nearly $10 million (including a venture fund for those start-ups) in this initiative. The SIC will draw innovators from southern NJ and also attract companies from outside NJ to relocate for support. Another public-private collaboration is the NJ Alliance for Clinical and Translational Science (NJ ACTS), led by Rutgers in partnership with Princeton, NJIT, and healthcare systems – funded by NIH, it streamlines the process of turning lab discoveries into clinical trials, with state endorsement. These partnerships not only advance R&D but also ensure that companies have local partners for pilot studies, clinical research, and product validation.
• Innovation Hubs and Incubators: New Jersey has invested in creating physical spaces where government, academia, and industry intersect. We discussed the HELIX and others in infrastructure; policy-wise, the state often provides seed money or tax incentives for these hubs. For instance, the state’s $665 million investment in the New Brunswick Hub (HELIX) included funding for a new medical school building and innovation facilities, contingent on partnerships with private entities. NJEDA also offers accelerator grants and challenges – e.g., NJEDA’s Evergreen Innovation Fund (launched 2022) uses state funds matched with private venture capital to invest in NJ startups (including life sciences) in exchange for state tax credit auctions proceeds. New Jersey’s Commission on Science, Innovation and Technology (CSIT), an autonomous agency, offers grants to early-stage companies: since 2020, CSIT has made 400 awards totaling nearly $20 million to 274 start-ups, supporting over 550 new jobs. Many of these grants are in life science fields like therapeutics, digital health, and research tools. The Governor’s office has also promoted statewide initiatives in emerging areas – e.g., New Jersey is doubling investments in health sciences and generative AI, positioning the state as a leader in converging fields like AI-driven drug discovery. A new NJ AI Research Hub is being established with Princeton University and corporate partners (like Nvidia’s CoreWeave) to apply artificial intelligence in biotech and other industries.
• Business Climate and Regulatory Environment: State policies in New Jersey increasingly aim to streamline doing business. New Jersey was recently ranked the “most improved state for business” by CNBC after enacting reforms and strategic investments. The state has modernised incentive processes (making them more transparent and performance-based under the 2020 Act) and improved responsiveness to corporate needs. While NJ historically had high taxes, programs like the NOL Transfer mitigate burdens for tech companies. The state also upholds strong intellectual property protections and data infrastructure – crucial for R&D-heavy industries. Moreover, New Jersey’s government actively engages with industry groups such as BioNJ (the state’s biotech trade association) and HINJ (Healthcare Institute of NJ, representing big pharma) to ensure policies (e.g. drug pricing regulations, workforce development programs) support continued growth. During the COVID-19 crisis, New Jersey designated pharma manufacturing as essential and worked closely with companies to avoid supply disruptions – an example of public-private cooperation in practice.

Overall, New Jersey’s approach can be seen as one of collaborative ecosystem building: the state co-invests with industry (through incentives), co-markets with private groups (Choose NJ, BioNJ), and co-develops infrastructure (innovation centers with universities). This collaborative ethos helps maintain the state’s edge. Industry leaders confirm this: “Through world-class facilities, skilled talent, and unique partnerships, the State’s rapid investment in life sciences infrastructure means there has never been a better time for businesses to locate and expand in New Jersey,” said Choose NJ’s CEO in 2024. The numbers back it up – New Jersey has attracted billions in new life science investment over the past five years, much of it thanks to these supportive frameworks.

Recent Investments and Expansions (2018–2025)

The last five years have seen significant investments, expansions, and new arrivals in New Jersey’s life sciences sector, reinforcing its growth trajectory:

• Major Biopharma Facilities: As detailed earlier, BeiGene’s $800 million Hopewell campus (announced 2021, opened 2024) is a marquee project, bringing biologics manufacturing from a global oncology leader to NJ. The site will employ several hundred skilled workers by 2025. Around the same time, PTC Therapeutics opened a gene therapy production facility (2021) and Rocket Pharmaceuticals commenced building a 103,000 sq. ft. R&D and manufacturing site in Cranbury for gene therapies. Legend Biotech expanded its cGMP cell therapy manufacturing capabilities in Somerset as its CAR-T product with J&J gained FDA approval. Amicus Therapeutics constructed a new Global Research and Gene Therapy Center of Excellence in Princeton in 2019–2020. In the CDMO space, Catalent invested in upgrades to its sizeable Somerset facilities, and Thermo Fisher Scientific not only acquired the Ridgefield plant from Sanofi in 2025 but also operates a clinical supply manufacturing site in Allentown, NJ (for packaging/dispensing). Another international firm, WuXi Biologics, has been expanding its development labs in Cranbury (154,000 sq. ft. facility for process development and manufacturing services). These projects indicate strong confidence in New Jersey for high-tech biomanufacturing.
• Corporate HQ Relocations and Expansions: New Jersey has attracted multiple corporate relocations. Haleon, the global consumer health company spun off from GSK, announced in 2023 it would move its North American headquarters to New Jersey (Berkeley Heights) to be closer to talent and supply chain partners. Similarly, Intercept Pharmaceuticals (a biotech specialising in liver disease) moved its HQ from NYC to Morristown in 2022, as mentioned, citing cost-effective space. Sun Pharma’s U.S. headquarter consolidation in Princeton (2025) is another win, with the company purchasing property and committing long-term due to NJ’s incentives. Ipsen (French biopharma) expanded its U.S. operations in Basking Ridge, NJ, and Eisai (Japanese pharma) completed a new state-of-the-art U.S. headquarters and oncology facility in Nutley in 2021 (on part of the ON3 campus). Nestlé Health Science in 2023 built a new U.S. head office in Hoboken, reflecting the growth of health-focused consumer nutrition companies in NJ. On the medtech side, Becton Dickinson has been expanding its diagnostic systems unit in NJ and opened a new innovation centre in 2018. Teleflex in 2022 opened a new global training center for surgical devices in Maple Grove, NJ. In summary, New Jersey’s combination of location and resources has convinced many companies to set down deeper roots.
• Public Infrastructure Projects: We’ve covered many, but to recap recent milestones: Groundbreakings for The Hub/HELIX (2021) and The Cove (2022 planning stages) promise future capacity. The Jack & Sheryl Morris Cancer Center in New Brunswick (broke ground 2021) is a $750+ million public-private hospital/research project. The Camden Innovation Hub including Camden’s Joint Health Sciences Center (opened 2019) and the new Rowan/Cooper SIC (2025) are boosting South Jersey’s profile in health sciences. These projects are injecting hundreds of millions of dollars into life sciences infrastructure, with state funding matched by private and federal funds – ensuring the ecosystem will support growth for decades to come.
• Venture Capital and Start-up Growth: New Jersey’s startups have been thriving, supported by a sharp rise in venture capital. Venture funding for NJ companies jumped to $5.5 billion across 219 deals in 2021, up from $1.7B in 2020 – an unprecedented surge. Two of the 10 largest U.S. life science financings in 2020–2022 were for New Jersey companies: Certara (Princeton-based drug development software firm) raised $668M in an IPO, and Catalent (Somerset) raised $548M for expansion. Recent notable NJ startup successes include Mindray (medical imaging) expanding in Mahwah, Visikol (a Rutgers spin-off in drug discovery) being acquired, and BioNJ Start-Up Stadium alumni companies securing series A rounds. The NJ Innovation Evergreen Fund held its first auction in 2022, raising ~$50M to co-invest in NJ startups, and this is expected to amplify venture activity further. The state’s emphasis on innovation is paying off, with New Jersey now frequently cited among the top 5 states for biotech start-up environment, not just for big pharma.
• Job Growth and Economic Impact: These investments have translated into tangible economic gains. From 2018 to 2023, New Jersey’s biopharma employment grew modestly (~1–2% annually) even as some other states saw flat growth – indicating net job creation despite industry consolidation. Notably, in biomanufacturing roles, NJ, along with NC and FL, managed to grow jobs while Massachusetts saw a slight decline in 2023. This suggests New Jersey is picking up manufacturing work that some other regions are not. Statewide, manufacturing (all sectors) employs ~252,000 people and contributes $52.6B to GSP, with pharmaceuticals/chemicals being a large chunk of that. The life sciences sector’s high wages amplify its economic impact – average wages in NJ pharma/medtech far exceed the state average, injecting income into communities. Every direct job in pharma is estimated to support 3+ indirect jobs (in construction, retail, services). Thus, the openings of new plants like BeiGene’s, or expansions like Thermo Fisher’s, not only create lab jobs but also spur construction jobs, supplier contracts, and local spending. Choose New Jersey reported the sector’s total economic output at $121 billion, which includes direct and multiplier effects. Life sciences are consistently among the top drivers of New Jersey’s GDP growth alongside finance and tech. In short, recent expansions have solidified life sciences as a cornerstone of New Jersey’s economy, and the momentum appears set to continue.

R&D and Innovation Ecosystem: University-Industry Collaboration

Innovation in New Jersey’s life sciences is propelled by a strong R&D ecosystem that links universities, medical institutions, and industry. Some key facets of this ecosystem:

• Academic Research Strengths: New Jersey’s research universities conduct cutting-edge life sciences research, often in partnership with industry. Princeton University has world-renowned programs in genomics, bioengineering, and computational biology. While Princeton lacks a medical school, it engages with industry via technology licensing and joint research – for example, it leads the Northeast I-Corps Innovation Hub (launched 2022), a consortium with Rutgers, NJIT, Rowan and others funded by NSF to train researchers in entrepreneurship. This hub helps academic scientists across NJ learn to commercialise their discoveries, fostering more spin-off companies. Rutgers University brings massive biomedical R&D capacity: Rutgers receives substantial NIH funding (the NY/NJ region is #1 in NIH funding nationally in recent data). Areas of note include cancer research (Rutgers Cancer Institute), neuroscience (the RWJ Medical School and Rutgers-Newark have strong neuroscience and immunology labs), and pharmaceutical science (the Center for Advanced Biotechnology and Medicine and Ernest Mario School of Pharmacy are frequent collaborators with pharma companies). Rutgers runs numerous clinical trials in partnership with NJ’s pharma firms, accelerating drug development. Stevens Institute in Hoboken contributes in biomedical device innovation, often working with the hospital systems in North Jersey. NJIT’s NJ Innovation Institute, as discussed, actively partners with pharma companies on manufacturing research (e.g. continuous manufacturing techniques). Rowan University is building research institutes as part of its Virtua Health partnership, focusing on fields like cell and gene therapy (through its Cell and Gene Therapy Center) and neurodegenerative disease. These academic efforts generate a pipeline of discoveries that can be translated into new therapies and devices with industry collaboration.
• Clinical and Healthcare Collaboration: New Jersey’s dense network of hospitals and clinical research organisations provides the bedrock for translational medicine. Many of the state’s large health systems – RWJBarnabas Health, Hackensack Meridian Health, Atlantic Health, Cooper Health – have research divisions that work with pharma/biotech companies on clinical trials and real-world studies. For instance, Hackensack Meridian’s Center for Discovery and Innovation (at ON3) works on oncology and infectious disease research side by side with companies on that campus. The alignment of medical schools with health systems (e.g., Rutgers with RWJBarnabas, Rowan with Cooper, Seton Hall with Hackensack Meridian in Nutley) creates academic medical centres that attract clinical trials. This is valuable to industry because it means new drugs or devices can be tested with diverse patient populations in NJ, speeding up development. According to BioNJ, New Jersey has been performing well in clinical trial inclusion metrics relative to other states, and initiatives are in place to further improve trial diversity. Pharmaceutical companies often cite access to leading hospitals and patients as a reason to keep R&D in NJ.
• Incubators and Startup Support: The state hosts several life science incubators that facilitate university-industry interaction. The NJ Bioscience Center (NJBDC) in North Brunswick is one of the largest incubators on the East Coast, with wet lab space for early-stage biotechs and a separate “Step-Out” facility for graduates (up to 50,000 sq. ft.). It houses dozens of companies, many spun out of NJ universities or started by former pharma executives. The NJBDC provides not just space but also mentorship and networking, often in collaboration with BioNJ and big pharma partners. Other incubators include Princeton Innovation Center BioLabs (in Plainsboro), which is a partnership between Princeton University and BioLabs offering fully serviced labs to startups; VentureLink@NJIT in Newark for health IT and medical device startups; Henri/Impetus in Camden focusing on healthtech; and Einstein’s Alley incubators in central NJ. These centers often invite pharma and VC scouts to interact with startups, leading to collaborations or investments. The state’s soft landing programs for international startups (via Choose NJ MOUs) also mean overseas innovators come to NJ incubators to establish U.S. footholds. This steady inflow of fresh ideas keeps the innovation ecosystem vibrant and replenished.
• Industry Collaboration and Open Innovation: Many large NJ pharma companies engage in open innovation models, partnering with academic groups or startups. For example, Johnson & Johnson’s JLABS (while their nearest JLABS incubator is in NYC, J&J frequently includes NJ startups in its programs and runs healthcare accelerators that involve NJ experts). Merck has research collaborations with Princeton (in fields like chemistry and oncology) and with Rutgers (Merck’s old Rahway facility is near Rutgers, fostering interactions). Novartis partnered with Princeton on data science for drug discovery. The state’s ResearchwithNJ.com portal, supported by NJEDA, is a publicly accessible database that connects companies with NJ university researchers and their expertise, making it easier to find potential collaborators. All these efforts underscore a culture of collaboration. BioNJ and NJ Tech Council also hold events that bring together academia and industry (e.g., BioNJ’s annual BioPartnering Conference).

Perhaps the best testament to NJ’s collaborative innovation environment is the flow of breakthroughs: New Jersey scientists and institutions have contributed to the development of many important drugs (from Keytruda to Remicade) and devices (from heart stents to insulin pumps). With gene therapy, for instance, a company like Rocket Pharma working on gene therapy for rare diseases can build its lab in NJ, partner with Rutgers for preclinical models, get a grant from CSIT, collaborate with a hospital like Hackensack for patient trials, and hire experienced talent from larger NJ biopharma – all within one state. This integrated ecosystem accelerates the pace from idea to marketed product. As of 2025, New Jersey accounts for nearly half of recent FDA novel drug approvals, which is remarkable and indicative of the state’s R&D output pipeline.

Looking ahead, New Jersey’s innovation ecosystem is focusing on emerging fields like digital health, AI in drug discovery, regenerative medicine, and precision diagnostics. The alignment of new AI hubs (like the Princeton-New Brunswick one) with pharma means the state aims to be at the forefront of the next wave of biotech innovation, not just the last. Given the collaborative groundwork laid, NJ is well-prepared to lead in whatever new innovations the life sciences bring.

Comparative Analysis with Other Hubs (U.S. and Global)

While New Jersey is a top life sciences cluster, it’s instructive to compare it with other renowned hubs in the U.S. and abroad to understand its unique position:

United States – Major Hubs:

• Boston-Cambridge (Massachusetts): Widely considered the world’s premier biotech R&D cluster, the Boston area boasts elite universities (Harvard, MIT), massive NIH funding, and a dense startup and venture capital network. Massachusetts has a life sciences workforce similar in size to New Jersey – roughly 117,000 biopharma jobs as of 2023 – but skewed more towards R&D and early-stage companies. Boston leads in emerging biotech and “advanced precision medicines” development, and has outpaced NJ in recent VC funding and biotech IPOs. However, Massachusetts has seen challenges in biomanufacturing growth; in 2023 its biomanufacturing employment dipped slightly, whereas New Jersey grew its biomanufacturing workforce despite national headwinds. CBRE’s 2025 talent report noted Boston gained more lab technicians recently, giving it an edge in “sophisticated biomanufacturing” talent, but New York–New Jersey holds an advantage in high-volume pharmaceutical manufacturing talent. In essence, Boston and NJ are more complementary than strictly competitive: Boston excels at incubating new science, New Jersey at scaling and production. Many Boston biotechs eventually establish manufacturing in places like New Jersey (or partner with NJ-based CDMOs) when they commercialize. Also, NJ’s cost of living and real estate are generally more moderate than Boston’s, which can be appealing for companies as they grow.
• San Francisco Bay Area (California): The Bay Area (including South San Francisco and Silicon Valley) is another powerhouse, with a strong focus on biotech R&D (Genentech, Gilead, etc.), digital health, and a burgeoning cell/gene therapy scene. Its life sciences workforce is slightly smaller in total than NY/NJ or MA, but it attracts enormous venture capital and is a leader in innovation. Manufacturing in California is often challenged by high costs and regulatory complexity, and indeed many California biotechs outsource production or build facilities in lower-cost states. New Jersey often comes up in conversations as an East Coast alternative with better logistics for companies headquartered in California. For example, Gilead Sciences (HQ in CA) has significant operations in NJ (the Morris Plains site via its Immunomedics acquisition) and in 2023 announced big U.S. manufacturing investments focusing on sites outside CA. Compared globally, New Jersey competes well on talent with the Bay Area but offers a more central location for distribution (the Bay Area is geographically distant from East Coast markets).
• San Diego (California): San Diego is a major biotech hub heavily focused on research (genomics, oncology, marine biotech) and has a growing cell therapy manufacturing cluster in Torrey Pines. It’s smaller than NJ in terms of employment and has fewer big pharma HQs (aside from Illumina and a few others). Some San Diego firms partner with NJ companies or have NJ branches (e.g., Legend Biotech has its manufacturing in NJ while its partner Janssen has R&D in SD). New Jersey’s edge is again in maturity and infrastructure – for instance, Newark’s port and airport can ship products far more readily than San Diego’s.
• New York (NYC) and Philadelphia (PA): These two are adjacent to New Jersey and in fact form one combined mega-region with it. New York City itself has traditionally been stronger in healthcare finance and medical research rather than pharma manufacturing, but it’s developing biotech incubators in Manhattan/Long Island City. Many experts treat “NY/NJ” as a single tri-state cluster, which often ranks just behind Boston in overall life sciences strength. New Jersey provides the manufacturing and a lot of the suburban lab space, whereas NYC provides big academic medical centers and capital markets – a symbiosis. Philadelphia and its suburbs (including Southern NJ) constitute another historic pharma hub (home to GSK’s US operations, historically Wyeth, etc., and many cell/gene therapy firms spin out of University of Pennsylvania). Philly and NJ share talent and companies frequently; the Philadelphia area has excelled in cell therapy (“Cellicon Valley”) due to Penn’s research, but those therapies are often manufactured in New Jersey facilities. Compared to Philadelphia, New Jersey has more global pharma HQs and a bigger overall employment base in life sciences (Philly’s metro life sci employment is estimated around 50–60k, roughly half of NJ’s). However, these differences are narrowing as the entire Northeast corridor functions as one innovation belt.
• Research Triangle Park (North Carolina): RTP in North Carolina has emerged as a strong competitor especially for pharmaceutical manufacturing and large biologics facilities. Companies like Lilly, Pfizer, and Novartis have built huge manufacturing plants in NC in recent years, attracted by lower costs and substantial state incentives. North Carolina also has a robust workforce training program for biomanufacturing (via NC State’s BTEC). That said, New Jersey still has a larger pharma workforce and far more headquarters/R&D. NC’s total life sci employment (~75k in 2022) is smaller. Some companies choose NC for manufacturing expansion but keep R&D in NJ, indicating complementarity. For instance, Merck is investing $1 billion in a vaccine plant in NC even as it maintains R&D in NJ. New Jersey’s advantage over NC is proximity to HQ decision-makers, regulators (FDA), and the Northeast talent pool, whereas NC’s advantage is land and labor cost. Many firms utilise both – it’s not uncommon for an NJ company to have an NC production site too.

Global Hubs:

• Western Europe (Golden Triangle UK, Basel Switzerland, etc.): New Jersey’s closest global analog is perhaps Basel, Switzerland, which hosts Novartis, Roche, etc., and has a high density of pharma jobs. Basel and NJ share the presence of big pharma HQs and a long history. However, Basel is smaller in workforce and somewhat more R&D-centric; manufacturing in Europe is often done in Ireland or Germany. London-Oxford-Cambridge (UK) is Europe’s biotech R&D center, flush with startups and academic prowess (similar to Boston). But when UK startups need to manufacture or scale, many look to partner internationally. New Jersey, interestingly, has attracted a number of UK and European companies for U.S. operations – e.g., Bioven (UK) and Croda (UK) both set up facilities in NJ in the past decade. The Republic of Ireland has become a pharmaceutical manufacturing hotbed due to tax advantages, drawing what might otherwise have come to NJ. Even so, New Jersey’s sheer cluster size and full value-chain integration (HQ + R&D + manufacturing in one locale) is a distinguishing factor globally. There are few places in the world where one can find as many end-to-end capabilities in such proximity as New Jersey/New York.
• Asia (Singapore, Shanghai, Hyderabad/Pune, etc.): Singapore is a notable global hub that competes for pharma manufacturing – it offers a low-tax, high-tech environment and has attracted facilities from the likes of Pfizer, Amgen, and GSK. Singapore’s life science workforce (~25k) is much smaller than New Jersey’s, but it punches above its weight in manufacturing output (a large portion of global vaccines and biologics). Some NJ companies have Singapore plants, but conversely Asian companies use NJ to access the U.S. market (as seen with Enzene from India, BeiGene from China). China’s biotech hubs (e.g. Shanghai, Shenzhen) are booming, though mostly serving the Chinese market and not yet rivals for global HQ or FDA-regulated production. In fact, Chinese firms like BeiGene and Legend have come to NJ to do FDA-facing activities. India’s pharma hubs (e.g. Hyderabad, Pune) are huge producers of generic drugs but again, Indian firms invest in NJ to move up the value chain (R&D, regulatory, marketing). Therefore, while globalization means New Jersey isn’t the only game in town, it remains a nexus for East-West collaboration. New Jersey’s cosmopolitan workforce (many immigrants from India, China, etc. in the pharma industry) also helps maintain ties with those emerging hubs.

New Jersey holds its own among the world’s life science centers, especially in the combination of manufacturing muscle with research capability. Boston might be the only place that clearly surpasses NJ in overall life science prominence in the U.S., particularly for early-stage biotech density. Yet even Boston cannot match New Jersey’s manufacturing workforce scale and experience. Meanwhile, lower-cost U.S. states offer competition for specific facility projects, but they lack NJ’s ecosystem breadth. Globally, New Jersey is in the top tier – few regions have so many top pharma companies present (8 of 10 globally) and such a legacy of innovation. New Jersey’s strategy seems to be leveraging its strengths (workforce, location, legacy) to remain indispensable – e.g., by taking on advanced manufacturing for therapies that other hubs invent, and by fostering an innovation culture to originate its own breakthroughs too. As a recent analysis by CBRE put it, “The leading life sciences manufacturing markets range from historic leaders in pharmaceutical and chemical manufacturing, like New York–New Jersey, to markets with greater biotechnology presence like Boston-Cambridge and the Bay Area.”. In other words, New Jersey continues to be the historic (and current) leader in actually making medicines at scale, while also evolving into a force in biotech research.

Economic Impact and Job Creation

The life sciences industry is a cornerstone of New Jersey’s economy, with substantial impact on GDP, employment, and state revenues. Some key points on economic impact and jobs:

• Contribution to GDP: Pharmaceuticals and life sciences are consistently among the top drivers of New Jersey’s Gross Domestic Product. According to Investopedia, the pharmaceutical and life sciences sector is one of the largest industries driving NJ’s GDP growth, alongside financial services and manufacturing. Manufacturing of chemicals and pharmaceuticals alone was about 8.8% of NJ’s Gross State Product in 2023 – and that doesn’t count the value from R&D and services. When considering the entire life sciences value chain (R&D, manufacturing, sales), the economic output is around $121 billion as mentioned, which is a significant share of New Jersey’s roughly $700+ billion GDP. This means life sciences are not just a niche – they are one of New Jersey’s economic pillars, akin to how tech is to Silicon Valley or finance is to NYC.
• High-Quality Job Creation: Life sciences jobs are high-paying and high-skilled, which boosts the state’s overall prosperity. The average wage in NJ’s pharmaceutical manufacturing sector is about $147,000 (considerably above the state’s private-sector average). Similarly, biochemists, medical researchers, and engineers in NJ command strong salaries. Each new biotech or pharma job thus has a multiplier effect: workers have more disposable income to spend locally, supporting retail and housing markets. Over 2018–2024, New Jersey saw net growth of life science employment (~1-2% per year on average), equating to a few thousand new direct jobs in the sector. While this growth is modest, it outperformed general private sector growth in NJ during the same period (which included the pandemic downturn). It also outpaced some peer states in specific sub-sectors as noted (e.g., biomanufacturing). Crucially, New Jersey avoided the major pharma job declines that some predicted in the 2010s due to mergers. Instead, while certain big companies did consolidate (and yes, jobs were lost in some legacy facilities), new companies and expansions filled the gap. For example, when Merck merged with Schering and later downsized Kenilworth, that campus is now being reoccupied by other employers (NEST tenants). When Roche closed Nutley, the site became ON3 with equal or more jobs today (including new medical school positions). This dynamic reuse means communities continue to benefit from these sites.
• Indirect and Induced Jobs: A vibrant life sciences sector supports tens of thousands of indirect jobs. New Jersey’s pharma companies contract local firms for clinical research, legal services, construction, and maintenance. CROs (Contract Research Organisations) like Covance (LabCorp Drug Development) in Princeton, IQVIA and others have large operations in NJ to service pharma clients – these are indirect jobs reliant on the big companies. Likewise, packaging companies, chemical suppliers, cold chain shippers and other suppliers are part of the ecosystem. Then there are induced jobs created when life science employees spend their incomes – e.g., in retail, restaurants, real estate. Industry groups often cite a multiplier of 2 to 3 for pharma jobs. Conservatively, if NJ has ~120k direct life science jobs, total employment including ripple effects could be 300k+. The state’s unemployment rate and income levels are positively impacted by the presence of these high-skilled jobs; New Jersey consistently ranks high in median household income, in part due to its concentration of pharma/tech employment.
• Tax Revenue: High salaries and corporate profits translate to significant tax contributions. The life sciences sector is a major source of state corporate business tax receipts and income tax from employees. Additionally, the presence of large company campuses contributes property taxes that fund local services (though some big sites have tax abatements, many still pay substantial sums to municipalities). New Jersey has, at times, given tax incentives to keep companies (e.g., 2013 “GrowNJ” incentives to keep Prudential or e.g. keep Novartis expanding in NJ). Analysis generally shows the state gains a net benefit over time as long as the companies stay and grow payroll. The recent trend of firms relocating from New York to New Jersey (for example, the wave of financial and pharma firms shifting some offices to Jersey City or the suburbs) also broadens NJ’s tax base.
• Resilience and Future Outlook: The economic impact of life sciences in NJ proved resilient even during downturns. During the COVID-19 pandemic, parts of the sector (like elective medical devices) slowed, but others (like vaccine research and manufacturing) boomed. New Jersey’s companies were at the forefront of the pandemic response – Johnson & Johnson developed one of the first COVID-19 vaccines, manufacturing it in part in NJ; Merck aided vaccine production; NJ-based labs like Quest Diagnostics scaled up testing. This not only saved lives but kept the sector strong. Post-pandemic, New Jersey is looking at growth in areas like health security and biopreparedness. The federal government’s interest in on-shoring pharmaceutical supply chains could benefit NJ as a preferred location (given its existing capacity and workforce). For instance, if certain drug ingredients or generics are to be produced domestically rather than abroad, NJ facilities could be prime candidates. Michelle Rozo of the National Security Commission on Emerging Biotechnology recently noted that New Jersey is “poised to be a national leader not only in innovation, but also in building our biomanufacturing capacity and educating the next generation of our biotechnology workforce.”. Such recognition points to potential federal partnerships or funding flowing to NJ (e.g., via BARDA or DOD for biomanufacturing projects).
• Community Impact: Beyond pure economics, the life sciences industry in NJ has a significant community and social impact. Companies run extensive corporate social responsibility programs – from STEM education initiatives in schools to public health outreach. For example, companies sponsor science fairs, support local colleges, and partner with organizations to improve health equity in NJ’s urban and rural areas. The presence of leading hospitals and pharma also means New Jersey residents often get early access to cutting-edge therapies through clinical trials. In many ways, life sciences are part of New Jersey’s identity; the industry’s stability has helped many NJ towns remain prosperous over decades. At the same time, the state and industry are mindful of adapting to ensure continued growth – investing in training so that under-represented communities can also access these high-paying jobs, and redeveloping older sites to prevent blight and instead create new opportunities (as seen with ON3, etc.).

In conclusion, the economic impact of New Jersey’s life sciences manufacturing hub is overwhelmingly positive and significant. It provides tens of thousands of excellent jobs, anchors billions in investment, and keeps New Jersey at the forefront of innovation-driven growth. As this report has outlined, New Jersey’s unique blend of history, talent, infrastructure, and supportive policy has made it a leader in life sciences manufacturing – and these same factors bode well for its future. In an era when healthcare and biomedical innovation are more important than ever (to both economy and society), New Jersey’s role as a nexus of discovery, development, and production will likely continue to expand, bringing continued economic benefits and life-saving products to the world.