New Jersey maintains leading position in bio-tech sector.

Biotech firms--those smaller pharmaceutical companies with limited products on the market and/or initial products in the early stages of research and development--represent, arguably, the hottest future business in the United States and globally.

As such, New Jersey's emerging position as one of the nation's leading biotech centers promises a significant economic impact.

According to the Biotechnology Council of New Jersey, Inc., the state currently houses approximately 124 biotech firms within its borders, ranking fourth in the nation in terms of biotech presence.

Several notable firms are maturing here, including Enzon Pharmaceuticals, Celgene, Pharmacopeia and Medarex, to name a few. Each has products moving through clinical phases that are expected to elevate to the next level in the near future.

New Jersey's strong educational infrastructure, which continually spins out new research and a talented labor force, and the state's long-standing pharmaceutical corporate base, which provides high-level intellectual capital, are key factors in its appeal. Further, New Jersey's government is developing programs that will enhance the environment for biotechs, including creating business zones that will encourage R&D partnerships between private business and educational institutions.

The challenge for biotech growth is funding. Most new biotech companies are financed with venture capital. Yet because venture capitalists seek to recover their money quickly, ultimate success and expansion usually hinges on the ability to get funding out of public markets.

The recent growth in the stock market provides hope that many start-up companies currently will be able to issue IPOs in the near future.

In fact, some 12 biotech IPOs have been issued across the country during the past few months, which is a positive sign.

The biotech companies that have prospered through the recent recession have been those firms with existing, revenue-generating products. Many have merged to increase their foothold, have absorbed early stage, private companies struggling for capital, or have purchased products from other entities.

For example, Enzon, which is publicly traded, was planning a merger with Utah-based NPS Pharmaceuticals.

The deal would have resulted in a major expansion; however, it was terminated. Instead, Enzon has purchased the rights to develop and market several outside products, which achieved one of its objectives to expand its revenue base.

There is no question that biotech firms will continue to emerge and expand, with the most successful growing into the next generation of pharmaceutical leaders.

The good news for New Jersey is that the state has the infrastructure to accommodate them and the appeal to retain them.

THOMAS V. GIANNONE,

SENIOR DIRECTOR

TECHNOLOGY ENTERPRISE GROUP

CUSHMAN & WAKEFIELD OF NEW

JERSEY, INC.