Washington, D.C. (March 8, 2011) — A new report, “Emerging Biopharmaceutical Companies, Ensuring a Favorable Environment for Continued Innovation,” released today by the Pharmaceutical Research and Manufacturers of America (PhRMA), underscores the commitment of America’s biopharmaceutical research companies – of all sizes – to continued medical progress.
“Developing today’s treatments and tomorrow’s cures requires commitment, determination and a significant investment of time and resources,” said David P. Holveck, President and Chief Executive Officer of Endo Pharmaceuticals and chairman of PhRMA’s Emerging Biopharmaceutical Companies Committee.
“Emerging biopharmaceutical companies are defined as companies with annual revenues of between $100 million and $3 billion – yet many may not yet be profitable. These companies tend to concentrate on one or two therapeutic areas often aimed at specific medical conditions, and are generally more likely to focus on specialty rather than primary care,” Holveck said.
Despite their smaller size, emerging biopharmaceutical research companies represent an increasing proportion of private sector R&D spending and serve as “a ‘deep bench’ for future growth and innovation,” according to the research conducted by the Boston Consulting Group. The potential for these emerging biopharmaceutical companies to sustain and grow jobs and introduce new medicines depends on a stable regulatory and policy environment.
According to the report:
- Engines of job growth: Mid-sized companies grew at an average annual rate of 7 percent from 2000 to 2008. Some of these companies created substantially more jobs – with up to 12-fold increases in the number of jobs created with the introduction of new medicines. And, as they grew, these companies became an increasingly important source of high-value jobs with base salaries that in some states were more than twice the average wages of other sectors. These companies deliver clear benefits to patients in the form of a steady supply of new Pharmaceutical Research and Manufacturers of America 950 F Street, NW, Suite 300 * Washington, DC 20004 * (202) 835-3400 medical therapies and have helped to stabilize local budgets and the national economy.
- Benefits, challenges due to size: Mid-sized biopharmaceutical companies have the competitive advantage of being nimble and flexible in terms of how they respond to environmental challenges. However, due to their size and other features, they are disproportionately affected by an unpredictable business, regulatory or policy environment.
- Challenges to growth and sustainability: The paper identifies challenges that could impact future growth and sustainability including the lengthy and sometimes unpredictable Food and Drug Administration review process, uncertainty created by implementation of new federal laws, and pricing and reimbursement policies that don’t adequately value medical advances.
PhRMA looks forward to working collaboratively with policymakers at the local, state and national levels to encourage proactive policies that support continued medical advances and sustain and grow high-value, high-wage jobs by America’s biopharmaceutical research companies of all sizes.
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 $45.8 billion in 2009 in discovering and developing new medicines. Industry-wide research and investment reached a record $65.3 billion in 2009.
PhRMA Internet Address: http://www.phrma.org
For information on how innovative medicines save lives, visit: http://www.innovation.org
For information on the Partnership for Prescription Assistance, visit: http://www.pparx.org
For more information on public health emergencies, visit http://www.rxresponse.org
For information on the danger of imported drugs, visit: http://www.buysafedrugs.info