Innovation: It Comes From Companies of All Sizes

Innovation: It Comes From Companies of All Sizes

03.09.11 | By John Castellani

Visitors who walk among the mighty redwoods in California are dwarfed by the towering giants, anchors of thriving ecosystems. Imagine turning back the clock to glimpse those forests when the massive trees were mere saplings.

The thought is triggered by a new report released this week, "Emerging Biopharmaceutical Companies: Ensuring a Favorable Environment for Continued Innovation."

When people think about America's biopharmaceutical research companies, they envision large, mature companies. They're partly correct.

The description also includes a very active and important group of emerging biopharmaceutical companies.

Despite their smaller size, emerging biopharmaceutical research companies represent an increasing proportion of private sector R&D investment and serve as "a 'deep bench' for future growth and innovation," according to research conducted by the Boston Consulting Group.

These companies are often the source of new medicines for diseases previously without treatments. They have consistently grown jobs - some experiencing 12-fold increases in job growth - significantly higher than the growth rate of jobs in the U.S. As they've grown, these companies have become a critical source of high-value, high-wage jobs with base salaries that, in some states, were more than twice the average wages of other sectors.

However, for all of their successes, these companies are vulnerable to an uncertain policy and regulatory environment - ever-changing new laws and regulations at the state and federal levels that undervalue medical advances. I urge you to read more about their future promise and the challenges they face here.

John J. Castellani
President & CEO
PhRMA

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