About The Biopharmaceutical Sector

America’s biopharmaceutical research sector is the global leader in medical innovation, with more than 300 new medicines approved by the Food and Drug Administration in the last decade. In 2009, biopharmaceutical companies invested more than $65 billion on the discovery and development of medicines, and roughly 2,900 compounds are currently being studied in the United States -- more than all other regions.

The impact of this R&D is felt across the country. Life expectancy is at an all-time high. Former FDA Commissioner Mark McClellan observed: “New drugs are no small part of this medical miracle.” We have made tremendous gains in the battle against many major chronic diseases. For example, HIV/AIDS, once considered a death sentence, is now seen as a controllable disease in the United States. And death rates from cancers have declined steadily, with one major study reporting that new medicines explain 50 percent to 60 percent of survival increases.

At the same time, biopharmaceutical R&D has led to breakthroughs in less-common conditions. Between 1997 and 2010, more than 200 medicines were approved to treat rare diseases -- those that affect 200,000 people in the United States. This was an increase from 145 in the previous 13 years and from roughly 10 in the 1970s. Importantly, these advances gave new options and hope to patients who previously often had neither.

This significant commitment to R&D benefits patients, but it also can help control overall healthcare costs. Take diabetes, for example. According to a recent study, annual costs for diabetes care can be up to 48 percent lower for patients who take their diabetes medicines properly. On average, each diabetes patient not properly adhering to recommended therapy increases healthcare costs by as much as $2,200 per year.

The biopharmaceutical sector is one of the most R&D-intensive in the United States, with companies investing more than 10 times the amount of R&D per employee than all manufacturing industries overall. But these high-quality jobs are not limited to R&D. Biopharmaceuticals are a rare source of projected growth in U.S. manufacturing jobs, too.

America’s biopharmaceutical research companies have not been immune to recent economic challenges. The business model for the sector hinges on risky and costly investments in R&D that is recouped by only two of every 10 approved medicines. However, our continued commitment to R&D means the promise of hope for America’s patients and high-value jobs in all 50 states.

News

Battelle Report on Economic Impact

The U.S. biopharmaceutical industry develops medicines that save, sustain and improve lives. Biopharmaceuticals is also well recognized as a dynamic and innovative business sector generating high-quality jobs and powering economic output and exports for the U.S. economy. This report quantifies this economic impact of the biopharmaceutical sector on the U.S. economy and jobs. Using input/output analysis, this report measures the direct and indirect impacts of the biopharmaceutical sector, and quantifies the economic impacts that would occur if biopharmaceutical revenues increase or decrease from significant changes in the business operating environment.

Battelle Report on Economic Impact in Key States

The biopharmaceutical sector currently has a large and significant economic impact, affecting many areas of the U.S. economy and contributing to the development of vibrant regional economies across the U.S. This report quantifies the economic impacts that would occur if biopharmaceutical revenues increase or decrease from significant changes in the business operating environment in 25 key biopharmaceutical states.

Resources

R&D Investments Reaches Record Level

America’s biopharmaceutical research companies invested a record $67.4 billion last year in the research and development of new life-changing medicines and vaccines – an increase of $1.5 billion from 2009, according to analyses by the Pharmaceutical Research and Manufacturers of America (PhRMA) and Burrill & Company.

Archstone Report on National-Level Economic Impact (PDF)

Despite the economic challenges of recent years, America's biopharmaceutical research companies remain a major source of employment throughout the United States. The sector also contributes to the nation's economy in various ways, including contribution to GDP, taxes, R&D spending, intellectual property, and exports.

Archstone Report on State-Level Economic Impact

America's biopharmaceutical research companies remain a major source of employment across the country. Here is a state-by-state breakdown of their impact.