Medical Device nitro boosted hiring in the quarter with a 38% increase versus Q1 2014 and set an all-time high for hiring in the sector. The Outsourcing / Services sector also set a new index record as it posted a 23% gain over the same period in 2014.Given the high profile headlines of R&D restructurings and layoffs, it may be surprising to note that hiring activity for R&D exploded in Q1 with an increase of 62% versus Q4 and a 55% YOY gain. It appears the demand across some newer therapies including immuno-oncology and gene therapy are creating some rotational gains in the function.

The Manufacturing function saw significant slowing in Q1 with activity at its lowest quarterly level since Q4 2013 and a 22% drop versus the same period last year. The Pharmaceutical sector posted a 6% year-over-year decrease against a record level in 2014, but the hiring activity remained strong and represents the third highest score in the index’s history.

R&D showed an astounding 62% increase in hiring activity over Q4 2014. The gains for the function were across all sectors and fairly balanced across geographies. Medtronic, Roche, BMS, and Quintiles were the most active in the function. General administrative and commercial sales postings also saw gains in the first quarter. Manufacturing slid 22% YOY with Roche declines in Europe contributing to the result.

As mentioned earlier, Medical Device set an all-time record for hiring activity and an astounding 38% increase over same period 2014. The combined Medtronic / Covidien companies along with GE contributed the lion’s share of the increases offsetting slight decreases by Becton Dickinson and Siemens.The 23% YOY increase within the Outsourcing / Services sector was paced by Quintiles and PRA offsetting slight drops by ICON and Parexel.

All three regions showed double-digit gains over the previous quarter with both APAC and the Americas reaching historical index records. Gains in North America were driven by large increases among the sector leaders Medtronic, Roche, BMS, and Quintiles. In EMEA, GE and Philips along with GSK were catalysts. Lastly, in Asia Pacific, again Medtronic along with GE, Siemens, and Eli Lilly fueled much of the gains.

Sector: America, EMEA, APACQ1 2015 Index

What’s Hot?

What’s Not?

Functions

Life Sciences Hiring Index Surges to All-Time HighRecord hiring in Medical Device and Outsourcing / Services drove an overall double digit gain versus 2014

Trends and Highlights

Snapshot

Jobs by Sector

All regions increased hiring activity by more than 10% versus the previous quarter. All sectors, regions and functions posted strong quarterly and year-over-year gains with the exception of the Pharma sector and Manufacturing roles. Overall, the number of roles posted by the index companies passed the 20,000 position level for the first time in the index history (Q2 2010).

0

2000

4000

6000

8000

10000

201220112010 2013

APAC

EMEA

+29.1%

America

+11.6%

+14.8%

2014

12000

2015

America

25%

17%

23%

16%

19%

EMEA

24%

15%

18%

16%

27%

APAC55%

APAC

21%9%

40%

12%18%

19%

America

EMEA

26%

Pharma

22%

14%

29%

17%

18%

Outsourcing /Services

45%

3%14%21%

17%

Medical Device& Supply

16%

22%

25%

11%

26%

19%

42%

39%Outsourcing /

Services

Pharma

Medical Device& Supply

Sales / Marketing

Manufacturing

R&D

IT / Finance General Exec Admin

Regulatory / Quality / Clinical

0

2000

4000

6000

8000

10000

201220112010 2013 2014

Sector quaterly hiring trends

Snapshot

Jobs by Region

+6.4%

+9.6%

+33.5%

Pharma

Medical Device& Supply

Outsourcing /Services

Regional quaterly hiring trends

2015

Functional needs

24%

25%

15%

21%

15%

R&D

Manufacturing

RegulatoryQualityClinical

IT - FinanceGeneral Exec

Admin

SalesMarketing

ZRG Partners GLSI Levels

96.9

60

70

80

90

100

112.3110

2010 2011 2012 2013 2014 2015

Private Equity SnapshotYear-over-year investment from private market was down slightly in the Life Sciences markets (private equity and venture capital) investment activity took a bit of a breather in the first quarter. It is a little early to call a low quarter a trend, especially if you consider most deals take at least three months to close. Our conversations with professionals across the industry point to busy pipelines so we expect the rest of the year to be more active but don’t necessarily see it booming and building upon last year’s numbers.

With that caveat, the investment numbers in the first quarter were pretty sad compared to last quarter for the Healthcare industry. Interestingly Growth Capital investments fared better than buyout and other non-expansion type investments. This matches an overall trend we have been seeing in the healthcare industry and greater private equity, of firms increasingly looking outside the traditional LBO type of deal. We expect this to continue through the year and will hopefully be a positive for the industry. On the venture side the strong performance of health-care investments over the last couple of years has driven more money and activity back into the sector. We are seeing a few signs this might slow in the coming quarters but it is still a bit early to call it a trend as well.

Overall the first quarter was slow but we expect this to pick up. Look for more growth style investments between PE firms and venture investors to drive this activity.

The Private Equity Snapshot is provided by Adley Bowden, Senior Director, PitchBook Data Inc.

Q1 2015 Growth Capital Investmentsby Global Life Sciences Hiring Index Sectors

Data provided by PitchBook (www.pitchbook.com)

$48

$91

$32

25 50

Numberof deals

Value invested(million $)

Pharma &Life Sciences

Medical Device, Supply, Diagnostics

HealthcareProviders

0

$-4

10

6

100

Outsourcing &Consulting Services

5

75

About ZRG Partners, LLC

Our Life Sciences Human Capital Solutions Service offering includes:

• Retained Search for roles ranging from C-level leaders,VP, Director and hard-to-fill management roles

• Talent Management solutions leveraging our tools and processes• Strategic Human Capital consulting

• Compensation and external competiveness benchmarking• Talent Identification and Talent Mapping projects• Recruiting Process Outsourcing solutions

We support global, institutional clients as well as many early stage and private equity backed companies.

About the Global Life Sciences Hiring Index

For more information, visit www.zrgpartners.com. For press requests or for permission to use this data in other media form, contact Larry Hartmann in the USA at +1-201-560-9900 x222, David Fortier in the USA at +1-202-525-1341 or Adam El Din in Switzerland at +41-22-319-3304.

ZRG Partners, LLC is a global authority on talent management issues within the Life Sciences, Pharmaceutical and Medical markets. ZRG provides its clients with specialized market expertise in executive recruitment, consulting and advisory work, with a focus on data and analytics to drive great business decisions. ZRG brings patented solutions that are changing how companies approach talent in the Life Sciences sectors. Our value proposition is centered around providing data and analytics that perfectly compliment the market expertise we bring in this sector. With offices throughout the world, ZRG can bring global expertise with local market talent knowledge to solve human capital challenges.

Z Score brings data and analytics into the hiring process to ensure you are making the best possible decision with every hire. Compare potential new candidates to our “global hiring scorecards” that we have developed for all of the key roles in Life Sciences.

Global PreVue, a powerful video interviewing and feedback platform offers time management for certain mid-level roles and global positions. Video interviewing provides a cost effective way, at a fraction of the time, to preview candidates worldwide. When it comes time for interviewing, we will consult with you based on the level of the role and location, how we can leverage our technology to drive quicker hiring and better results.

In addition to providing a Pharma / Medical / Outsourcing Services cross section in this Index, we also track and monitor functional hiring trends. The Index looks specifically at jobs that would fall into one of five primary categories for analysis: 1. Research and Development, 2. Manufacturing / Operations, 3. Sales and Market-ing, 4. Regulatory / Quality and Clinical, 5. General including Accounting, Finance and IT.

Pharmaceutical: $362 Billion in Revenues and 952,000 EmployeesAstraZeneca, Bristol-Meyers Squibb, Eli Lilly, GlaxoSmithKline, Merck & Co., Novartis, Pfizer, Roche, Sanofi-Aventis

Medical Device: $253 Billion in Revenues and 464,000 EmployeesAbbvie / Abbott Laboratories, Baxter, Becton Dickinson, Boston Scientific, Cardinal Health, Covidien, GE Healthcare, Medtronic, Philips Healthcare, Siemens Medical.

Outsourcing / Services: $15 Billion in Revenues and 114,000 EmployeesCharles River Laboratories, Covance, ICON Clinical, InVentiv Health Clinical, Kendle / INC Research, Parexel, PPD, PRA International, Quintiles.

The Index utilizes a proprietary algorithm that looks at hiring within selected benchmark companies in three distinct Life Sciences segments: 1) Pharmaceuticals 2) Medical Device and Supply 3) Outsourcing / Services. The indexed participants represent 30 global organizations widely considered leaders in their respective fields. The companies in the Index generate over $630 billion in revenues and employ over 1.5 million people globally. ZRG Partners conducts extensive direct market research in developing the data that drives the Index.

Here is a list of firms by segment that are part of the ZRG Global Life Sciences Hiring Index: