Indiana Continues to Punch Above its Weight in the Life Sciences
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Science is built upon data, so each year we use statistics to highlight Indiana’s life sciences sector. It is important to analyze and report these details so that we can track progress and identify areas for improvement. So, as Kai Ryssdal from Marketplace says each day, “here are the numbers” and the highlights from 2021:
- Indiana companies exported over $12.7 billion of products, the highest amount on record. Indiana has the third highest amount of exports in the U.S.
- The economic impact of the state’s life sciences industry was $79 billion, driven by 2,452 companies, an increase of 170 companies since last year. Nearly 59,000 people are employed at pharmaceutical, medical device/equipment, agbiosciences, research, testing/medical laboratories, and biologistics companies.
- Eight hundred ninety-nine patents were granted, and the U.S. Food and Drug Administration approved sixty-one new products.
- The average wage for the life sciences sector increased to over $105,000per worker, more than double the state’s average wage, delivering a total payroll of $6.2 billion to the state.
- In 2021, the Indiana Economic Development Corporation reported that twenty-three life sciences companies committed to invest over $500 million and hire 2,100 employees in Indiana.
Investment and productivity are two of the best indicators of a strong economy, and Indiana’s life sciences industry continues to punch above its weight. In 2021, more than $15 billion of capital was invested in or by Indiana’s life sciences companies. That is an increase of $6 billion over 2020. Highlights include:
- $6.5 million of Small Business Innovation Research (SBIR) grants awarded to seventeen companies.
- Indiana companies raised a record amount of venture capital companies for the second straight year – increasing from $262 million in 2020 to $434 million in 2021. Thirty-nine companies benefitted from these investments.
- Four companies raised $508 million in the public markets.
- Thirteen merger and acquisition transactions were completed in 2021 representing activity of more than $13.7 billion.
- $521 million was committed to establish, expand, or upgrade facilities by twenty-three companies.
The largest transaction, and the only one in the medical device sector, was the $10.5 billion paid by Baxter for the acquisition of Hill-Rom to create a $15 billion MedTech leader with global operations, including over 1,500 employees in Indiana.
Indiana’s life sciences companies not only invest significant amounts in research and development, but they also leverage and support our manufacturing and technology sectors.
While the numbers tell us a positive story, what’s most meaningful about Indiana’s life sciences sector is the incredible innovation and lifesaving treatments that impact people in Indiana and throughout the world.
Nora Doherty is executive vice president of strategy at BioCrossroads. Brian Stemme is senior vice president of engagement at BioCrossroads.