WE WORK FOR HEALTH
The role of our industry – and our jobs – in
America’s economy and health
Despite several challenging years, America’s
biopharmaceutical research companies remain
major employers throughout the country.
• The sector provides value to the U.S. economy in
many ways: number of jobs, range of jobs, taxes
paid by workers, and more.
• Beyond the economic value to the country, the
sector provides value to each one of us who has a
job because of it.
• We also offer hope – through the work we do
every day, no matter what that work is – to tens of
millions of Americans battling disease.
The Big Picture
In 2006, the biopharmaceutical research sector employed
nearly 700,000 workers in America, but that doesn’t tell the
An additional 1,000,000 indirect jobs were provided by the sector. These
workers, who often work under a contract to a biopharmaceutical company,
often provide a direct service to us or work hand-in-hand with us each day.
These workers may be employed by
anything from a security company to
a contract research organization to a
Our industry supports other workers outside the sector, whose businesses
operate thanks to the money we spend there. We call these “induced jobs”
These induced workers may work at
a day care center that cares largely
for the children of company
employees, or perhaps a catering
company that often provides foods
to working meetings.
These Jobs Are Local, Too
Many of us may think about a few states that have dominant
sector employment, but the fact is that we have workers in all 50
states, making us a significant employment provider throughout
Those numbers are from 2006:
What about today?
• It’s impossible to know for certain where total employment now
stands, as the 2006 numbers are the most recent that are available.
• However, we do know that there have been considerable layoffs
throughout the sector, as in other sectors.
• That said, there are reasons why we should remain hopeful about
the future recovery – and eventual growth – of the sector.
Our Hope For Economic Recovery
• Many experts have said that America’s lagging
economy has begun its gradual recovery.
• The fact is, we can’t know for certain how well the
biopharmaceutical research sector will be affected
by this rebound, or how quickly it will be affected.
• But that doesn’t mean that we shouldn’t be
A Strong History of Growth
• Despite uncertainty about the future, we Annual Growth in Direct
know that the sector has, in the past, Employment, 1996-2006
seen employment growth at more than Biopharmaceutical 3.1%
double the rate of growth in the rest of Rest of Economy 1.4%
the nation’s economy.
• Despite uncertainty about the future, we can hope that this growth
will be repeated again, and we can work together to try to ensure
that it happens.
Think we’re all sales reps or scientists?
A breakdown of the types of direct biopharmaceutical jobs in the
U.S. may come as a surprise to you.
22.3% Life, physical & social science
More than 75% of us work in
12.3% Office & administrative staff
departments outside of the life
12.2% Architecture & engineering
sciences – where one would
find most researchers working
– and less than 3% of sector
9.6% Computer & mathematical
employees are sales reps.
7.5% Business & financial
13.7% Other (includes 15 occupations, each
representing less than 3% of the total.
These include, for example: installation,
maintenance & repair or sales & related.)
But that doesn’t change the reason
why we do what we do…
• Just because we’re not all scientists doesn’t mean
that research and innovation isn’t our common goal.
• The work that each one of us does every day plays
an important part in the discovery and development
of life-saving new medicines here in America.
• Most of this R&D happens in the U.S. In fact, 70%
of PhRMA member company R&D dollars are
We Don’t Just Outpace Foreign
• We also outpace American R&D investment in other
• In 2006, U.S. biopharmaceutical research averaged
$65,381 per employee. Not per researcher – but per
each individual direct employee, like any one of us.
• This is roughly eight times the estimates of R&D
investment per employee in all manufacturing
The Most Important Value
Of the Work We Do
• Each employee within in the biopharmaceutical research
sector is a part of a worldwide team that is committed to
• More than 2,900 potential new medicines are currently in
development, compared with 2,400 in 2005.
• PhRMA member companies 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.
• These new medicines are critically needed. In fact, 45%
of all Americans suffer from a chronic disease.
The Value of the Work Already Done
• In the last 10 years, more than 300 new, FDA-
approved medicines have contributed to increases
in life expectancy and improvements in quality of
• New medicines have also helped in many cases to
transform diseases previously considered fatal –
such as HIV/AIDS and some cancers – into
treatable chronic conditions.
• Americans now have greater potential than ever to
live longer, healthier, more productive lives.
The Value of the Work Already Done
• For instance, cancer patients now live, on average, three years
longer – and 83 percent of those survival rate gains are due to new
treatments, including medicines.
• Heart failure and heart attack deaths fell by nearly half from 1999 to
• Since the advent of highly active anti-retroviral therapy in 1995, the
annual number of U.S. deaths due to AIDS has dropped by more
than 70 percent.
Why Should We Be Proud to
Work in this Sector?
• We contribute to our local and state economies, through taxes we
pay and through the jobs that we support by our daily expenditures.
• We contribute to America’s economy during a time when our
economy needs all the help it can get.
• Those contributions are measured not in dollars, but in the hope that
our work provides to tens of millions of patients across America.