Washington, D.C. (April 27, 2009) — Pharmaceutical Research and Manufacturers of America (PhRMA) President and CEO Billy Tauzin released the following statement regarding President Obama’s pledge to dedicate resources to research and development in the sciences:
"PhRMA strongly agrees with President Obama regarding the importance of a sustained commitment to research and development, not just for the good of health care and other sciences, but also for the good of the economy. We have long avowed that R&D drives innovation, and innovation drives the economy.
“The commitment to R&D by America’s pharmaceutical companies was recently underscored by a recent study released by Archstone Consulting and co-authored by University of Pennsylvania Wharton School economist Dr. Lawton Burns. The study, ‘The Biopharmaceutical Sector’s Impact on the U.S. Economy,’ found a resounding effect on America’s economy by the R&D conducted by America’s biopharmaceutical companies.
“The sector directly provided more than 686,000 jobs across all 50 states in 2006. This research-intensive sector also supported 1 million indirect jobs and 1.5 million induced jobs that year. While the impact on employment is clear, the study also found the sector invests more than $65,000 per direct employee, approximately eight times the published estimates of R&D spending per employee in all manufacturing industries between 2000 and 2004.
“R&D investment by the biopharmaceutical sector is an important engine for long term economic growth: the sector’s direct contribution to GDP in 2006 was $88.5 billion, triple the average contribution from sectors in the rest of the economy. Through the ripple effect of the sector’s economic impact , every dollar that biopharmaceutical companies contributed to GDP supports another $2.33 in contribution to GDP from other sectors.
“Importantly, President Obama’s new pledge to invest in R&D dovetails with his goal of curing cancer in our lifetime. To that end, America’s pharmaceutical companies invested $65.2 billion in R&D in 2008, with more than 2,900 new medicines in development, including a record 851 new medicines in development for cancer.
“America has long led the world in innovative R&D, thanks to a strong collaborative relationship between the public and the private sectors. President Obama’s pledge to champion R&D mirrors the commitment that researchers at America’s pharmaceutical research companies make every day.”
The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country’s leading pharmaceutical research and biotechnology companies, which are devoted to inventing medicines that allow patients to live longer, healthier, and more productive lives. PhRMA companies are leading the way in the search for new cures. PhRMA members alone invested an estimated $50.3 billion in 2008 in discovering and developing new medicines. Industry-wide research and investment reached a record $65.2 billion in 2008.
PhRMA Internet Address: www.phrma.org
For information on how innovative medicines save lives, visit: www.innovation.org
For information on the Partnership for Prescription Assistance, visit: www.pparx.org