Last month, the Pharmaceutical Research and Manufacturers of America (PhRMA) published a report entitled “The U.S. Biopharma Industry: Perspectives on Future Growth and the Factors That Will Drive It,”  examining U.S. biopharma’s future.
Developed by Battelle’s Technology Partnership practice, and based on research as well as the results of an executive survey, the report concludes that the U.S. could lose 140,000 jobs in biopharmaceutical research and manufacturing and the areas that depend on it over the next 10 years.

Although some of that job loss would come from increased productivity and industry efficiency, the report also found that changes in U.S. government policy would be needed in three critical areas, to allow continued industry growth.

• Science-based regulation
• Intellectural property protection
• Coverage and payment policies

Currently, the biopharmaceutical industry directly or indirectly employs 3.4 million people in the U.S., including over 810,000 jobs within the industry, according to Battelle. The sector contributes $789 billion to the U.S, economy, the report says.  Biopharma stands second only to semiconductors in patents, and leads U.S. industries in venture capital deals and funding, the study found. It spends more on R&D than any other industry, based on business totals and per worker figures (Charts 1 and 2).

However, globalization is having an impact on U.S. competitiveness, as other nations grow their own biopharma industries, and try to attract global R&D investment.  Consider China, for instance, where consumption of biopharmaceuticals has grown by 894% between 2000 and 2011. 

For the U.S. over the same period, Battelle analysts say, biopharmaceuticals consumption growth stood at about 53%, and for the other developed nations, consumption growth was approximately 58%.

In emerging markets, rapidly growing biopharmaceutical demand is being driven by a growing middle class, the study says.  Globally, biopharm production has increased 140% between 2001 and 2011, compared with 117% growth in other industries.

Even though the U.S. currently publishes 37% of all the world peer-reviewed journal articles in biopharma, and contributes 37% of patents, other nations are stepping up their biopharma innovation efforts.  Battelle’s analysts take a rather pessimistic view of the U.S. industry’s ability to  keep pace under current conditions. “The continued success of the U.S. as a world leader in the biopharm innovation cannot be taken for granted,” the study concludes. 

However, if the U.S. government were to pursue policies that support innovation, the study suggests, U.S. biopharma could create over 300,000 jobs by 2021.  For a copy of the report, visit http://www.phrma.org

What do  you think of the study and its findings?  Please write in and let us know.