Medtech Jobs Increase While Pharma Jobs Decrease

While the pharma biotech sector headcount continues to decline, Medical Device professionals have seen increases in jobs at the top 15 medtech companies in 2014. Pharma salaries were also down by 2.9% in 2014 alongside the loss of 156,000 jobs since 2009. See “2014 Career and Salary Survey In Check” published in Medical Marketing & Media Oct. 2014 at http://media.mmm-online.com/documents/92/css_2014_22818.pdf

As reported in Vantage Report entitled “Fewer But Bigger Medtech Jobs Jump Thanks to Mergers,” none of the 15 largest medtech companies lowered headcount in 2014. Medtronics grew to 92,000 after acquiring 43,000 additional employees in 2014 for a 88% increase in staff. See listing of top 15 medtech companies and changes in staffing since 2009. There is also list of those medtech companies which have cut staff. http://info.evaluategroup.com/rs/607-YGS-364/images/EP%20Vantage-Fewer-But-Bigger-Medtech-Jobs-Jump-Thanks-to-Mergers-August-2015.pdf?mkt_tok=3RkMMJWWfF9wsRojvarMZKXonjHpfsX66%2BQsWqK1lMI%2F0ER3fOvrPUfGjI4ET8JnI%2BSLDwEYGJlv6SgFTLDCMblnybgOXRU%3D

The medtech business model has always built products with “exit” of out-licensing or selling to the larger companies so this report is not surprising. When the product is acquired, the originating company disappears. But the change in the biopharma business model to one similar to medtech comprises a total paradigm shift.

As noted in last week’s blog much of the R&D capability formerly residing in Big Pharma has now been outsourced domestically or offshored. Almost 15% of spending for R&D and manufacturing in 2015 has been outsourced to domestic service providers while 14.3% has been offshored. See details at http://www.pharmtech.com/outsourcing-becoming-more-cost-competitive

These data indicate that biopharma/biotech jobs have shifted locations—both company and sector—not vanished entirely. The talent and experience in Big Pharma may not be available to the smaller domestic service providers and this might have negative impact on the quality of the latters’ output. See other articles in the August Pharmaceutical Technology issue mentioned previously.

Upcoming Life Science Events Week of August 31, 2015

• Bio2Device Group, Tuesday Morning, Sept. 1, 2015; Topic: End of Summer Open Forum and Networking; Speakers: Facilitator, Harry Wachob, President and Founder, Biio2Device Group and All Attendees
• FierceLive Webinars, Wednesday Morning, Sept. 2, 2015; Topic: ”Precision Medicine: Opportunities and Challenges for Clinical Trials;” Speaker: Franklin O. Smith, III, MD — Vice President Medical Affairs, Hematology and Oncology, Medpace
• WIB Webinar, Wednesday Morning, Sept. 2, 2015; Topic: “Best Practices for Sharing IP Rights in the Life Sciences; Speakers: Julie Watson, Special Counsel at Marshall Gerstein & Borun, LLP; Kate Murashige, Senior Of Counsel at Morrison & Foerster and Dawn Matthews, co-founder of Abiant, Inc., a 50% parent of ADMdx

You can download details for the above events in a complete list of upcoming events by right clicking on Audreys Picks August 30, 2015. I have listed JobsThatCrossedMyDeskThrough Aug30, 2015 separately in this blog.

Note that I am not able to send my blog and lists directly to you as I did for over 10 years. You can access them by reading my weekly blog and downloading my lists at https://audreysnetwork.wordpress.com/ You can also access via my website http://www.audreysnetwork.com.

This posting marks my 600th blog since 2008. Thank you to Elie Asmar who encouraged me to share my informational emails originally only sent via email to former adult students in my life science business and marketing classes as UC Berkeley and UC Santa Cruz Extensions. These weekly postings have been important in my continuing education and personal growth.

Happy Labor Day!

Audrey