|[April 10, 2014]
New Report Reveals Growth Trajectories and Top Policy Factors Affecting Biopharmaceutical Innovation & Growth
WASHINGTON --(Business Wire)--
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
"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 ontext, 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.
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
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 - http://www.phrma.org
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For information on how innovative medicines save lives, visit: http://www.innovation.org
information on the Partnership for Prescription Assistance, visit: http://www.pparx.org
information on ensuring the flow of medicines during public health
emergencies, visit http://www.rxresponse.org
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