Palpitations in the Heart of US Biotech
California’s biotech industry has taken its own pulse in a new survey that tracks how the state is doing in serving as the nation’s medicine cabinet and avatar of drug innovation. While the news is unexpectedly good, the future for the Golden State will tarnish if state and federal policies are not recast to compete with distant but aggressive neighbors on the other side of the Pacific. It’s in Mumbai, Mukden, and Manila where the ultimate battle will be joined to preserve California’s status as the top global site for investment and jobs in biotech.
The survey of 200 biomedicines companies located in the state was conducted over the past three months by PricewaterhouseCoopers on behalf of the industry’s principal trade association, the California Healthcare Institute. Key findings include:
Good Policy: It Counts
State tax policy is another area cited as creating a huge disincentive for risk-based investments. Meanwhile, at the federal level survey respondents pointed to the lack of resolution on issues such as the narrowing of standards for IP protection, excessive tort actions, rules of engagement for follow-on biologics, comparative effectiveness research, and overall health/insurance reform. Price controls to control entitlement spending were flagged as the biggest threat to the industry from Washington, followed closely by an uncooperative, risk-averse FDA.
“The center of gravity in biomedicines is definitely shifting eastward,“ Tracy Lefteroff of PricewaterhouseCooper’s told Pharm Exec. He noted that maintaining California’s long term biotech advantage depends heavily on leading with differentiation. “China and India will dominate the production of mass market medicine, but the most innovative specialist therapies—fragile, complex biologic compounds—will remain closer to home. Our system based on entrepreneurialism and collaboration cannot easily be replicated.”
Nevertheless, public policies will have an inordinate impact —for good or bad—and that simply adhering to the status quo is unacceptable for charting a profitable future. A new industrial policy focused on addressing the state’s vulnerabilities to a globalizing world filled with alternative sites for research and manufacturing is critically needed. That policy has to be structured as a stronger working partnership between the industry and politicians in Sacramento and Washington.
Pharm Exec has two suggestions on how to carry this effort forward: (1) ensure that the CHI pro-innovation agenda is seamlessly integrated through PhRMA in President Obama’s new legislative focus on an export-led jobs recovery; and (2) distribute to every state legislator and member of the California congressional delegation a text of Chinese vice-premier Li Keqiang’s speech to the World Economic Forum in Davos, outlining a huge new effort to stimulate domestic demand, which includes a healthy expansion of the science base.
How Digital Medicine Can Pinpoint Dosing Regimens to Optimize Drug Efficacy and Safety