New Report Reveals Growth Trajectories and Top Policy Factors Affecting Biopharmaceutical Innovation & Growth

  New Report Reveals Growth Trajectories and Top Policy Factors Affecting
  Biopharmaceutical Innovation & Growth

     New analysis incorporates real world insights from industry leaders

Business Wire

WASHINGTON -- April 10, 2014

Today the Pharmaceutical Research and Manufacturers of America (PhRMA)
released a report that outlines two potential growth trajectories for the U.S.
biopharmaceutical sector and the top policy factors that enable the industry
to innovate and, in turn, contribute to the U.S. economy.

Developed by the Battelle Technology Partnership Practice, the report finds
that coverage and payment policies, a well-functioning, science-based
regulatory system and strong intellectual property (IP) protections drive U.S.
leadership in biopharmaceutical innovation, and if negative trends in these
key policy areas continue, jobs supported by the industry would decrease over
the next decade. However, if reasonable pro-innovation policies are pursued,
the U.S. biopharmaceutical sector stands to retain and add well over 300,000
jobs to the U.S. economy by 2021.

“This report is a stark reminder to policymakers that innovation is deeply
affected by public policies and we must decide as a nation how much we value
the contributions of the biopharmaceutical industry to the U.S. economy, as
well as our nation’s role as the world leader in innovative R&D and
manufacturing,” said John J. Castellani, president and CEO of PhRMA. “The
message is clear: the continued success of the biopharmaceutical industry –
both in delivering life-saving and life-enhancing medicines to patients and in
contributing to U.S. economic growth – is dependent on thoughtful,
forward-looking policies that prioritize innovation.”

The report uniquely combines quantitative data with input from industry
leaders, resulting in a more complete picture of the potential growth
trajectories facing the industry.

“This report vividly illustrates the inextricable link between a healthy
biopharmaceutical R&D system and the health care policy environment,” said
Robert J. Hugin, Celgene Corporation Chairman and Chief Executive Officer.
“All too often the payment policies for medicines are not recognized as
fundamentally connected to the discovery and development of medical
breakthroughs. Sustainable market-based access and reimbursement for
innovative medicines today is essential to incentivize the long-term,
high-risk investment needed for new medical innovations in the future.”

As the ability to innovate is increasingly becoming the most important
determinant of a nation’s future potential for economic growth and global
competitiveness, the biopharmaceutical industry stands out among innovative
advanced manufacturing industries as a driver for future economic growth.
Today, the U.S. biopharmaceutical industry supports a total of 3.4 million
jobs across the U.S. economy, including over 810,000 direct jobs, contributes
$789 billion in economic output, and is responsible for about one in five
dollars spent on R&D by U.S. businesses. To put into greater context,
biopharmaceutical companies invested more than nine times the amount of R&D
per employee than manufacturing industries overall from 2000 to 2010.

Not only have PhRMA member companies invested an estimated $51.1 billion in
R&D in 2013, representing the majority of all biopharmaceutical R&D spending
in the U.S., but the cutting edge medicines developed by the industry play a
key role in helping control other health care costs.

In fact, the Congressional Budget Office (CBO) recently adopted an historic
scoring change that credits Medicare policies that increase use of medicines
with savings on other Medicare costs. Similarly, Harvard researchers report
savings on hospital and skilled nursing facility costs of about $1,200 per
newly insured Part D beneficiary in 2007. This equals overall Medicare savings
of $13.4 billion, more than one quarter of Part D’s total cost during the
program’s first full year.

More information about the report can be found here.

About Battelle

Battelle is the world’s largest nonprofit independent research and development
organization, providing innovative solutions to the world’s most pressing
needs through its four global businesses: Laboratory Management, National
Security, Energy, Environment and Material Sciences, and Health and Life
Sciences. It advances scientific discovery and application by conducting
approximately $5 billion in global R&D annually through contract research,
laboratory management and technology commercialization. Battelle’s Technology
Partnership Practice (TPP) assists local, state, and regional organizations,
universities, nonprofit technology organizations, and others in designing,
implementing, and assessing technology-based economic development programs.

About PhRMA

The Pharmaceutical Research and Manufacturers of America (PhRMA) represents
the country’s leading innovative biopharmaceutical research and biotechnology
companies, which are devoted to discovering and developing medicines that
enable patients to live longer, healthier, and more productive lives. Since
2000, PhRMA member companies have invested more than $550 billion in the
search for new treatments and cures, including an estimated $51.1 billion in
2013 alone.

Find PhRMA Online:

Website –
Facebook –
Blog –
Twitter – and
YouTube –

For information on how innovative medicines save lives, visit:
For information on the Partnership for Prescription Assistance, visit:
For information on ensuring the flow of medicines during public health
emergencies, visit


Pharmaceutical Research and Manufacturers of America (PhRMA)
Jenni Brewer, 202-835-3460
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