2015 Industry Snapshot

Compiled with support from

Employment & Physical Growth

MA Biopharma Industry Employment

The industry grew

by 4.9% in 2014 -

the highest

annual growth

rate for the

Massachusetts

industry since

2008.

Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW); MassBio

38 %

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

43,904

46,117

51,518

54,280 54,829 55,342 56,097 56,462

57,642

60,459

Massachusetts

has more

employment

classified as

Biotechnology

Research and

Development

than any other

state.*

Many states have

declining biotech

R&D. A few

smaller clusters

are growing at

faster rates,

though still well

below

Massachusetts in

total employment.

*NAICS 541711:

Research and

development in

biotechnology. This

classification has only

existed since 2007.

Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW)

8-Year Employment Performance:

Biotech Research & Development*

Top 5 in Job Growth

2007 2014 =/-%

Massachusetts 24,656 29,897 21.3%

California 19,134 27,123 41.8%

Pennsylvania 16,902 9,648 -42.9%

Maryland 10,154 8,334 -17.9%

New Jersey 8,567 8,574 0.1%

North Carolina 7,042 7,251 3.0%

Michigan 4,670 2,686 -42.5%

Missouri 4,262 3,541 -16.9%

Texas 4,229 4,643 9.8%

Ohio 2,696 3,352 24.3%

New York 2,679 4,924 83.8%

Washington 2,499 3,610 44.5%

Connecticut 2,452 1,821 -25.7%

Illinois 2,403 3,560 48.1%

Indiana 1,277 1,645 28.8%

Florida 737 2,622 255.8%

CA 7,989

MA 5,241

NY 2,245

FL 1,885

IL 1,157

10-Year Employment Performance:

Biopharma Manufacturing

Top 5 in Job Growth

Top 5 in

Percentage Growth

Massachusetts

grew in biopharma

manufacturing

employment by

28.4% since

2005.

In the same

period, the U.S.

lost 6,329

biopharma

manufacturing

jobs, a 2.2%

decrease.

Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW)

2005 2014 =/- %

California 41,743 47,163 13.0%

New Jersey 40,235 27,459 -31.8%

Puerto Rico 28,323 13,752 -51.4%

New York 22,050 19,233 -12.8%

Pennsylvania 21,824 17,570 -19.5%

North Carolina 20,628 21,658 5.0%

Illinois 20,143 18,436 -8.5%

Indiana 19,493 17,414 -10.7%

Michigan 9,682 8,813 -9.0%

Connecticut 9,671 5,147 -46.8%

Texas 9,387 10,677 13.7%

Massachusetts 7,777 9,989 28.4%

Maryland 5,335 6,969 30.6%

Missouri 5,284 5,292 0.2%

Ohio 5,016 4,984 -0.6%

CA 5,420

MA 2,212

MD 1,634

TX 1,290

NC 1,030

MD 30.6%

MA 28.4%

TX 13.7%

CA 13.0%

NC 5.0%

Job Listings on MassBio.org

Average Daily Number of Job Listings, 2009-2015*

While

MassBio.org is not

a comprehensive

listing of all jobs

available in the

industry in

Massachusetts, it

does provide a

statistically strong

sampling in

determining job

listing trends.

Activity thus far in

2015 outpaces

every year since

the site has been

live.

The MassBioEd

Foundation will

launch a job

trends and

forecasting report

later this year. Source: MassBio

1,005

504

980

786

1,005

1,394

1,588

2,096

2008 2009 2010 2011 2012 2013 2014 2015

*2015 listing average is through July.

Largest Industry Employers in MA, 2014

Sources: MassBio Membership Reports & Surveys; Boston Business Journal Book of Lists, 2015

Genzyme, a

Sanofi

company, has

long been the

largest

employer in the

industry in

Massachusetts.

New additions

to the Top 30

include

Merrimack and

Momenta.

1 Genzyme, a Sanofi Company 4,356

2 Biogen 3,100

3 Parexel International 2,800

4 Pfizer 2,600

5 Novartis 2,100

6 Hologic 1,800

7 Thermo Fisher Scientific 1,726

8 Shire 1,500

9 Vertex 1,300

9 Takeda 1,300

11 Quest Diagnostics 1,100

12 EMD Millipore 1,000

13 Charles River Laboratories 960

14 EMD Serono 860

15 Nova Biomedical 855

16 PerkinElmer 850

17 AstraZeneca 700

17 AbbVie 700

17 Sunovion Pharmaceuticals (DSP) 700

20 Merck 525

21 Bristol-Myers Squibb 400

22 Lantheus 375

23 Alkermes 325

24 Immunogen 311

25 Ironwood 290

26 Merrimack 288

27 New England Biolabs 280

28 Amgen 275

29 Cell Signaling 270

30 Momenta Pharmaceuticals 263

Economic Impact, 2014

60,459 employees

$120,628 average salary

$7,293,035,898 total MA-based payroll

Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW)

Industry Geography Top 10

communities

by number of

biopharma

companies*

Cambridge (130)

Boston (41)

Worcester (31)

Waltham (26)

Lexington (25)

Woburn (24)

Watertown (16)

Bedford (14)

Marlborough (9)

Billerica (9)

*The Bureau of Labor

Statistics indicates 738

biotechnology and

pharmaceutical

establishments in MA.

For this list, MassBio used

its own database and the

MassBio/MHT 2014

Complete Guide, which

include 431 company

addresses.

The immediate

western suburbs

include 70+ biotech

companies,

15 colleges, 3 million

s.f. of lab space.

128/Suburbs

60+ biotech companies,

WPI, UMass-Worcester,

and 16 other colleges.

Worcester/I-495 100+ biotech companies,

2 million+ s.f. in lab space,

UMass-Lowell and 11 other

colleges.

Northeast

Home of UMass-

Amherst and 21 other

colleges. Area known

as The Knowledge

Corridor.

West

Strong med device and

biopharma manufacturing

capacity, with numerous

BioReady® land sites and 10

colleges.

South Coast

180+ biotech companies,

the top 5 NIH-funded

hospitals in the U.S.,

and 48 colleges.

Boston-Cambridge

Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (QCEW); MassBio/MHT Directory

2007

Life Sciences Lab Inventory Growth

Source: Colliers Meredith & Grew, Life Science Review, 2007-2015

2015

21,502,509 s.f.

16,063,990 s.f.

2015 New Construction

Novartis, Cambridge

Longwood Center, Boston

Close to 6

million

additional

square feet of

commercial lab

space has been

added to the

Massachusetts

market since

2007.

Approximately

1.6 million s.f.

additional lab

space is under

construction.

Finishing in 2015

50-60 Binney Street, Cambridge

GE Healthcare, Marlborough

Transportation

Primary Means of Commuting for Industry

54.8% of respondents used public transportation (rail, subway,

bus) as a primary means of commuting versus 38.3% who

drove exclusively to work

In response to

growing concern

regarding

transportation in

Eastern

Massachusetts,

MassBio

conducted its

first annual

commuting

survey in March.

The survey

includes 293

respondents who

resided in 99

different

communities.

(290 respondents)

Response

Percent

4.5%

2.1%

41.4%

10.7%

23.8%

25.9%

1.4%

0.0%

I use Commuter Rail

Primary Means of Commuting

I take a shuttle van or bus

I take a shuttle van or bus provided by my employer

I walk

I bicycle

I drive to work

I take a bus

I use the MBTA subway or trolley

Source: MassBio 2015 Commuter Survey

Duration of Commute

56% of

respondents

have one-way

commutes of

less than one

hour.

43.2% of

respondents

have commutes

of 60 or more

minutes.

For all workers in

Massachusetts,

the average

commute is 39

minutes,

according to the

U.S. Census.

3.8%

15.1%

38.7%

34.9%

8.6%

Under 15 minutes Under 30 minutes Under 60 minutes 60-90 minutes Over 90 minutes

Source: MassBio 2015 Commuter Survey

15.6%

39.5%

35.9%

12.0%

My commute is good, no realissues

My commute could beshorter, but the length of mycommute does not affect mysatisfaction with my current

job

Because of the length of mycommute, I would consider a

job closer to my home

Commuting around here issuch a problem, I'm ready to

leave the region entirely

Commuter Satisfaction

103% reporting connotes limited multiple responses occurred. 273 respondents.

55% of

respondents

were satisfied

with their

commutes.

36% of

respondents

said they’d

consider

another

employer for a

better

commute.

12% said they

are ready to

exit the region

because of

commuting

issues.

Source: MassBio 2015 Commuter Survey

Satisfaction by Primary Means of Commuting

Good Commute

Could be shorter,

but satisfied

Would consider

job with shorter

commute

Ready to leave

region

Bus 22.6% 45.2% 22.6% 9.7%

67.7% 32.3%

Subway/Trolley 16.2% 47.1% 22.1% 14.7%

63.2% 36.8%

Drive 12.9% 33.6% 41.4% 12.1%

46.6% 53.4%

Commuter Rail 4.1% 25.5% 59.2% 11.2%

29.6% 70.4%

Those using the

bus or the T

subway or trolley

as primary means

of commuting are

substantially

more satisfied

with their

commutes than

those who drive

or use the

commuter rail.

Over 70% of

commuter rail

users are

dissatisfied with

their commute.

Source: MassBio 2015 Commuter Survey

Venture Capital, Private & Public Investments

Venture Capital Investment

Venture

investment in MA

rose to a record

$2 billion in

2015, an all-time

high, surpassing

the 2014 record

of $1.9 billion.

Source: PwC Money Tree Report

Investment in Massachusetts Biotech Companies, 2005-2015

Top 15 VC Financings in MA, 2014

Name $ (mill ion) Series

Moderna Therapeutics 475.0 Series C

Intarcia Therapeutics 200.0 Series H

Voyager Therapeutics 105.0 Series A

Dimension Therapeutics 95.0 Series A

UNUM Therapeutics 77.0 Series A

Blueprint Medicines 75.0 Series B

Seres Therapeutics 58.0 Series B

Civitas Therapeutics 55.0 Series C

Syros Pharmaceuticals 53.0 Series B

Mersana Therapeutics 49.5 Series B

Proteon Therapeutics 45.0 Series D

Flex Pharma 40.0 Undisclosed

SAGE Therapeutics 38.0 Series C

EPIRUS Biopharmaceuticals 36.0 Series B

Synlogic 34.4 Series A

Source: EvaluatePharma®, August 2015

Top 15 VC Financings – 2015

Source: EvaluatePharma®, February 2016

Name $ (million) Series

Editas Medicine 120.0 Series B

Gritstone Oncology 102.0 Series A

Syndax Pharmaceuticals 80.0 Series C

Chiasma 70.0 Series E

Intellia Therapeutics 70.0 Series B

Dimension Therapeutics 65.0 Series B

Voyager Therapeutics 60.0 Series B

UNUM Therapeutics 60.0 Series B

Ra Pharmaceuticals 58.5 Series B

Jounce Therapeutics 56.0 Series B

Constellation Pharmaceuticals 55.0 Undisclosed

RaNA Therapeutics 55.0 Series B

Neon Therapeutics 55.0 Series A

Allena Pharmaceuticals 53.0 Series C

Decibel Therapeutics 52.0 Series A

2014 Massachusetts IPOs

$90 M $90 M

$84 M

$65 M

$100 M*

$59.5 M

$12 M

$52 M

$96 M

$32.7 M

$90 M

$65 M

$66 M

There were 17

IPOs for

Massachusetts

companies in

2014 – twice

as many as

the previous

record year of

2013.

Source: Nasdaq.com, BioSpace

Note: Figures refer to “offer amounts” (investment secured) at time of IPO

$65 M

$61 M

$98 M

$57 M

2015 Massachusetts IPOs

$86 M

Source: Nasdaq.com, BioSpace

Note: Figures refer to “offer amounts” (investment secured) at time of IPO

$4 M

$40 M

$147 M

$55 M

$60 M

$70 M

$65 M

$134 M

There were 13

IPOs for

Massachusetts

companies in

2015.

$72 M

$102 M

$101.8 M

$70 M

Geography of VC and IPOs: 2014-15

Cambridge 42%

Lexington 15%

Burlington 11%

Waltham 12%

Bedford, Billerica, Boston, Canton,

Watertown 4% each

Cambridge 66%

Boston 18%

Watertown 4%

Waltham 3%

Other cities 9%

Location of VC-backed

Companies

Location of Companies

with IPOs

From 2014 -

August 2015,

66% of all

Massachusetts

biotechs

receiving

venture capital

deals were

located in

Cambridge.

A majority

(58%) of

Massachusetts

biotechs with

Initial Public

Offerings

(IPOs) from

2014 -August

2015 were

located

outside of

Cambridge. Source: EvaluatePharma®, August 2015

MA Seed-Stage Funding

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

15-yr average, $83,429,940

5-yr average, $152,382,480

In the 2014

Snapshot,

MassBio

highlighted a

concern– the

potential decline in

seed-stage

funding for

Massachusetts

biotechs.

In order to

maintain the

historical five year

average of seed

stage funding, MA

companies

needed to raise

$199 million in

2014.

Source: PWC MoneyTree Historical Data

MA Seed-Stage Funding, Annual, 1999-2014

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

10-yr average, $83,429,940

5-yr average, $152,382,480

Actual seed

financing was $20

million below that

mark at $179

million.

While not an

immediate red

flag, prolonged

declines in seed-

stage funding

jeopardize the

Massachusetts

supercluster,

which is fueled by

early-stage

research &

development.

Source: PWC MoneyTree Historical Data

2014

2014 NIH Funding, by State Total & Per Capita

Massachusetts

trailed only

California in total

NIH funding in

2014.

Massachusetts is

a small state

relative to most

leading NIH-

recipient states.

But, with its high

number of

research

institutions, on a

per capita basis

Massachusetts

received twice

as much NIH

funding as the

next closest

state. Source: NIH, Research Portfolio Online Reporting, U.S. Census Bureau

Total Funding Per capita

$351

$169

$124 $117

$105 $100 $88

$55 $55

$36

MA MD WA PA NY NC CA IL OH TX

State Funding

California $3,410,496,236

Massachusetts $2,364,750,629

New York $2,069,300,604

Pennsylvania $1,496,869,899

Maryland $1,010,931,562

North Carolina $991,876,570

Texas $972,156,544

Washington $876,933,041

Illinois $710,197,186

Ohio $633,220,134

US $22,251,657,294

Increased Funding for the NIH?

Source: Federation of American Societies for Experimental Biology, NIH Research Funding Trends, Garrison, Drehman, Campbell, 2015

FY 1995 FY 2003 FY 2014 FY 2015

%

Change

since

2003

NIH Budget (millions) $11,300 $27,167 $30,070 $30,311 11.6%

NIH Budget (constant to 1995 $ millions) $11,300 $21,080 $16,594 $16,366 -22.0%

In constant dollars, adjusted to factor inflation, funding of

NIH has decreased by 22% since 2003.

Federal

lawmakers are

considering

increases from

$1 - $2 billion for

NIH for FY 2016.

However, the

return of

sequestration

looms and, when

adjusted for

inflation, NIH

funding for

basic

research has

actually

declined since

2003.

Top NIH-Funded Independent Hospitals, 2014

Source: NIH, Research Portfolio Online Reporting

Eight of the top

14 NIH-funded

independent

hospitals are in

Massachusetts.

Please note:

NIH lists

University-

operated

hospitals

separately.

Organization City State Awards Funding

Massachusetts General Hospital Boston MA 770 $349,524,060

Brigham & Women's Hospital Boston MA 558 $319,409,432

Children's Hospital Corporation Boston MA 301 $122,949,506

Dana-Farber Cancer Inst. Boston MA 207 $122,652,215

Children's Hospital of Philadelphia Philadelphia PA 192 $112,146,779

Beth Israel Deaconess Medical Center Boston MA 240 $108,156,442

Cincinnati Childrens Hosp Med Ctr Cincinnati OH 251 $97,854,412

St. Jude Children's Research Hospital Memphis TN 89 $48,650,426

New York State Psychiatric Institute New York NY 99 $46,903,956

Seattle Children's Hospital Seattle WA 84 $39,068,563

Boston Medical Center Boston MA 85 $38,130,340

Cedars-Sinai Medical Center Los Angeles CA 76 $34,423,825

Tufts Medical Center Boston MA 45 $27,737,457

McLean Hospital Belmont MA 81 $25,413,803

Top Massachusetts NIH-Funded Non-Profits, 2014

Source: NIH, Research Portfolio Online Reporting

Massachusetts

non-profits are

significant

recipients of NIH

funding.

Institution Funding Grants

Harvard Medical School $193,508,468 383

Harvard School of Public Health $123,955,103 182

U. Massachusetts Med School Worcester $121,907,830 301

Boston University Medical Campus $112,678,027 233

Massachusetts Institute of Technology $103,988,893 251

Broad Institute, Inc. $95,443,418 55

Harvard University $61,056,145 125

Tufts University Boston $41,918,398 116

Boston University (Charles River Campus) $34,618,048 104

Brandeis University $28,831,370 93

University of Massachusetts Amherst $19,107,287 64

Boston College $11,142,110 26

Northeastern University $20,812,728 53

Joslin Diabetes Center $13,306,601 34

Forsyth Institute $12,021,486 24

Drug Development Pipeline

Drug Development Pipeline, by Phase

The MA drug

development

pipeline includes

14 candidates

pending FDA

approval.

*Massachusetts-

headquartered

company pipelines

only included.

1,491 MA drug candidates*

11% of US pipeline

5.5 % of Global pipeline

Research Project Pre-Clinical Phase I Phase II Phase III Filed

468

611

146

187

65

14

Source: EvaluatePharma®, August 2015

In the Pipeline

Tazemetostat

Phase I

Phase I clinical

trials are aimed at

proving that a drug

candidate, which

has proven to be

safe when used on

animals, can be

given safely to

people. These

trials, which last

several months to a

year, usually

involves a small

number of healthy

volunteers, 10-50.

Epizyme is a Cambridge-based

clinical stage biopharmaceutical

company that is creating novel

epigenetic therapies for cancer

patients.

Tazemetostat (EPZ-6438) is intended as a treatment for patients with non-Hodgkin

lymphomas, including germinal center and non-germinal center diffuse large B-cell lymphoma,

primary mediastinal B-cell lymphoma (PMBCL) and follicular lymphoma.

Source: EvaluatePharma®, August 2015; Epizyme Website www.epizyme.com

In the Pipeline

Eravacycline

Phase III

Phase III clinical

trials typically

include 300-3,000

patients to provide

a definitive

assessment of how

effective a drug is

in comparison to

existing treatments.

Should a drug

candidate work well

in Phase III trials in

treating a specific

condition, its

researchers can

submit an

application for FDA

approval.

Tetraphase is a Watertown-based

company focused on a synthetic

chemistry technology platform

that is aimed to address the

global health crisis caused by

antibiotic resistance.

Eravacycline is in a Phase III clinical study for patients with complicated intra-abdominal infections

and complicated urinary tract infections. It is a broad-spectrum intravenous and oral antibiotic for

the treatment of multi-drug resistant (MDR) infections. It has been designated by the FDA as a

Qualified Infectious Disease Product and eligible for priority review.

Source: EvaluatePharma®, August 2015; Tetraphase Website www.tphase.com

Massachusetts Pipeline by Therapeutic Area

Source: EvaluatePharma®, August 2015

Oncology & Immunomodulators

37%

Systemic Anti-infectives 14%

Central Nervous System 14%

Various 8%

Musculoskeletal 6%

GastroIntestinal 4%

Sensory 4%

Cardiovascular 4%

Endocrine 3%

Blood 2%

Respiratory 2%

Geneto-Urinary 1%

Dermatology 1%

The 1,491

investigational

drugs fall into 13

broad

Therapeutic

Areas.

MA Pipeline by Medical Indication (Top 25)

Massachusetts

researchers are

currently

researching and

developing

products for

patients with

370 different

medical

indications.

Medical Indication

# of

investigational

drugs

Pct. of all activity

General cancer indications 233 9.67%

Solid tumour indications 137 5.68%

General inflammatory disorders 59 2.45%

Undisclosed 58 2.41%

Other neurological indications 57 2.37%

Other immune indications 44 1.83%

Pain 39 1.62%

Hepatitis C treatment 38 1.58%

Alzheimer's disease 37 1.54%

Diabetes, type II (maturity onset) 36 1.49%

General bacterial indications 35 1.45%

Arthritis, rheumatoid 34 1.41%

Multiple sclerosis (MS) 31 1.29%

Obesity 31 1.29%

HIV treatment 30 1.24%

Breast cancer 26 1.08%

Asthma 25 1.04%

Other metabolic indications 24 1.00%

Cystic fibrosis (CF) 23 0.95%

Hyperlipidaemia 23 0.95%

Non-Hodgkin lymphoma (NHL) 23 0.95%

Duchenne muscular dystrophy 21 0.87%

Parkinson's disease 21 0.87%

General cardiovascular indications 20 0.83%

Prostate cancer 20 0.83%

Source: EvaluatePharma®, August 2015

New Drug Approvals for MA Companies,

2014

*Approved drugs developed in Massachusetts and/or owned by companies based or with core US operations here.

Source: CenterWatch

Alprolix; Biogen; For the treatment of hemophilia B

Entyvio; Millennium, The Takeda Oncology Company; For the treatment of adults with

ulcerative colitis and Crohn's disease

Sivextro; Cubist Pharmaceuticals; For the treatment of acute bacterial skin and skin

structure infections

Eloctate; Biogen; For the treatment of hemophillia A

Plegridy; Biogen.; For the treatment of relapsing multiple sclerosis

Cerdelga; Genzyme; For the treatment of certain adult patients with Gaucher disease type 1

Lemtrada; Genzyme; For the treatment of relapsing multiple sclerosis

Zerbaxa; Cubist Pharmaceuticals; For the treatment of complicated intra-abdominal and

urinary tract infections

New Drug Approvals for MA Companies,

2015

*Approved drugs researched, developed or manufactured in Massachusetts .

Source: CenterWatch

Orkamb; Vertex: For the treatment of cystic fibrosis

Varubi; Tesaro; For the prevention of delayed nausea and vomiting

associated with chemotherapy

Aristada; Alkermes; For the treatment of schizophrenia

Strensiq; Alexion; For the treatment of hypophosphatasia

Onivyde; Merrimack; For the treatment of metastatic pancreatic cancer

following gemcitabine-based therapy

Ninlaro; Takeda: For the treatment of treat multiple myeloma

Kanuma; Alexion; For the treatment of Lysosomal Acid Lipase (LAL)

deficiency

Imlygic; Amgen; For the treatment of unresectable recurrent melanoma

Massachusetts

companies had

8 drug approvals

in 2015.

Changing the Lives of Patients

Sources: Developed from multiple sources including EvaluatePharma®, August 2015, emedicine medscape, NCBI, CDC, 2014

More than 160

drugs have been

commercialized

by current

Massachusetts-

headquartered

companies.

Massachusetts-headquartered companies have developed

therapies that focus on patient populations of

232,434,000 patients 1,507,722,000 patients

IN THE UNITED STATES AROUND THE WORLD

What’s in a Number?

Please note: Prior to 2012, MassBio used two different federal sources for

employment data. In order to present more consistent employment data on a more

timely basis, we no longer use County Business Patterns (CBP) data of the U.S.

Census Bureau but rely primarily on the U.S. Bureau of Labor Statistics, Quarterly

Census of Employment and Wages (QCEW) for this data.

As a result, historical employment data found in the 2012 -2014 Snapshots vary from

that found in past reports. Though the historical annual employment figures vary by

about 5% between the 2012 Snapshot and those of past years, the trend lines are

very similar.

Why use the QCEW? QCEW data is comprised of employment and wages from

unemployment insurance (UI) tax reports submitted by employers and is augmented

by both BLS worksite reports and the Annual Re-filing Survey (ARS), which surveys

one quarter of all private-sector establishments each year. The QCEW data is

available on a more timely basis than the CBP and is directly related to the state’s ES-

202 data, providing an additional, ongoing corroborative source.

What’s in a Number?

What is considered “biopharma” employment?

Using the North American Industry Classification System (NAICS), with which QCEW data is reported,

MassBio has determined that several NAICS classifications can be considered part of the biotechnology

and pharmaceutical industry. However, only in certain cases can the industry claim 100% of any one

NAICS code. MassBio determined that a percentage of some industry classifications could be used in

estimating overall industry employment. In some cases, the percentage determination for certain industry

codes was based on reports developed by other organizations. The following NAICS codes are utilized:

NAICS 3254: Pharmaceutical MFG, including biologics (100%)

NAICS 541711: Research and Development in Biotechnology (100%)

NAICS 541712: R&D in Physical, Engineering, and Life Sciences (except biotech) (22%)

NAICS 334516: Analytical Laboratory Instrument MFG (30%)

NAICS 54138: Testing Laboratories (30%)

NAICS 622: Hospitals (4.5%)

NAICS 61131: Universities (1.9%)

NAICS 621511: Medical testing laboratories (100%)

NAICS 4242, Drug merchant wholesalers, is no longer included in any current or annual employment

figures. NAICS 621511, Medical Laboratories, is included. Prior to 2013, we omitted Medical Laboratories,

as these laboratories are health care services related, providing services to the medical delivery and

patient care system, rather than the biopharma research development and manufacturing industry. We now

acknowledge that Medical Laboratories are closely connected to the biopharma industry, requiring similar

capacity and skills found in the biopharma industry. MassBio also tracks employment for “green

biotechnology” classifications: 325199. 325221, 311222, and 311223. However, the QCEW does not reveal

employment data for these categories beyond minimum ranges, so this data is not included in the

employment figures presented in this Snapshot nor is it factored in comparisons with other states.

Questions?

As the premier source of information on biotechnology in

Massachusetts, MassBio tracks industry statistics over time

and issues an overview Industry Snapshot each year.

For more information, contact:

Jessica Roche

Director of Communications @ MassBio

617-674-5146

jessica.roche@massbio.org