Growing Biopharmaceutical Sector Creates Jobs in Maine, Study Shows

Milken Institute finds almost Six Jobs Created for Every Biopharmaceutical Job in Maine

Washington, D.C. – America’s biopharmaceutical companies are responsible for creating more than 3,978 jobs across Maine, according to a new study released.

“Biopharmaceutical Industry Contributions to State and U.S. Economies,” conducted by the Milken Institute (www.milkeninstitute.org), found that more than 1,400 Mainers are directly employed in the biopharmaceutical industry and that, on average, 5.7 jobs are created economy-wide for each biopharmaceutical job.

“The United States is home to some of the most technologically advanced and innovative science-based companies in the world — the biopharmaceutical companies that discover new medicines. In Maine the biopharmaceutical industry is also fueling economic growth by creating the jobs this country needs to compete in the global economy of the 21st century,” said Alan F. Holmer, president and CEO of the Pharmaceutical Research and Manufacturers of America (PhRMA).

The Milken Institute is an independent, economic think tank based in Santa Monica, Ca.
“Biopharmaceutical Industry Contributions to State and U.S. Economies” focuses on the economic impact of America’s biopharmaceutical companies —including jobs, economic output, and taxes paid — both at a national level and on a state-by-state basis.

“Many cities and states are working hard to gain a share of the biopharmaceutical industry, and our research shows why,” said Ross DeVol, the director of regional economics at the Milken Institute and the lead author of the report. “It’s an important and growing part of the global, knowledge-based economy that will have a very positive impact in those regions that are successful in attracting these industries.”

“These are the high-skilled, high-technology, high-quality jobs that strengthen and sustain both state and local economies. For every direct job in a biopharmaceutical company, almost six additional jobs are created in construction, manufacturing, the service sector and a host of businesses that support America’s biopharmaceutical companies and the daily needs of their employees and their families,” said Mr. Holmer.

Key study findings include:

• The biopharmaceutical sector employed over 1,400 people across Maine in 2003.
  
• For each job directly created by biopharmaceutical companies, an additional 5.7 jobs were created in the overall economy – substantially above the average for all industries.
  
• Biopharmaceutical jobs, on average, pay over $72,000 per year.
  
• Biopharmaceuticals is one of the most research-intensive industries in the U.S.
  
• Biopharmaceutical companies in the U.S. are responsible for creating over 2.7 million jobs for Americans.
  
• The biopharmaceutical sector was directly responsible for $63.9 billion in real output in 2003 and a total output of over $172 billion when its ripple effect across other sectors was figured in.
  
• A growing number of states, including Maine, increasingly look to the biopharmaceutical sector to spur economic growth.

“State and local governments that support the biopharmaceutical sector are reaping a great reward,” noted Mr. Holmer. “New jobs and economic growth strengthen both local and state economies. More importantly, the policies that support creation of biopharmaceutical jobs also support men and women engaged in one of the most important jobs imaginable — the search for new cures to the scourge of disease. All of our families and communities benefit as a result.”

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 members invested an estimated $33.2 billion in 2003 in discovering and developing new medicines. PhRMA companies are leading the way in the search for new cures.

The Milken Institute study may be found at www.milkeninstitute.org.

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PhRMA Internet Address: www.phrma.org