WHY NEW JERSEY

Medical Innovation

The Quest to Find New Therapies and Cures

Industry Research and Development Facts

America’s biopharmaceutical industry in total invested $122 billion in U.S. research and development in 2020.

Total global biopharmaceutical R&D reached $238 billion in 2021.

The biopharmaceutical industry is responsible for 17 percent of R&D spending by U.S. businesses, the single largest share of any industry.

Up to 90 percent of drugs are developed by the private sector with no government role.

More than 4 million U.S. jobs (direct, indirect, induced) are supported by America’s biopharmaceutical companies.

Each biopharmaceutical job supports five jobs across the U.S. economy

More than 7,000 medicines currently are in development worldwide for cancer, cardiovascular disease, diabetes, HIV/AIDS, immunological disorders, infectious disease and other disease states.

Of these, 70 percent are first-in-class therapies (a completely new approach to fighting disease).

Medical Innovation’s Cost and Risks

Only 5 out of 5,000 compounds enter a clinical trial

Less than 12 percent of Phase 1 candidates are approved by FDA

2 in 10 approved drugs are deemed commercial success (i.e., revenue exceeds R&D costs)

Extending Life and Saving Lives

U.S. life expectancy at birth has risen from 47 years at the turn of the 20th century to 78 years today. Five years were added between 1980 – 2010.
Nearly 88 percent drop in HIV/AIDS death rate since 1996.
Nearly 3 percent decline in cancer deaths since the 1990s due to new therapies.
U.S. cancer survivorship alone has more than tripled since 1970, with nearly 16.9 million cancer survivors alive in the country as of January 1, 2019. This number is expected to increase to 22.2 million by 2030.

Cost Savings and Economic Productivity

Less than 10 cents of the U.S. health care dollar was spent on prescription medicines in 2021. This percentage has remained unchanged since the 1960s.
90+ percent of prescriptions are for generics.
Every 1 percent increase in prescriptions filled among Medicare beneficiaries lowers Medicare spending for other health services by 0.2 percent.
90 percent of U.S. health care spending is for chronic disease.
Medical devices represent about five percent of health spending.
Since 1980, advanced medical technology helped cut the number of days patients spent in hospitals by 38 percent.

Medication Adherence: The Key to Improved Outcomes and Reducing Health Care Costs

Medication non-adherence costs the U.S. roughly $330 billion annually in unnecessary medical expenses, as estimated by Express Scripts in 2015.
More than 1 in 5 new prescriptions are not filled.
Non-adherence in the U.S. is estimated to result in approximately 125,000 deaths and at least 10 percent of hospitalizations.
An extra $1 spent on medicines for adherent patients with congestive heart failure, high blood pressure, diabetes and high cholesterol can generate $3-$10 in savings on emergency room visits and inpatient hospitalizations.
Adherence to medications for congestive heart failure could result in $22.4 billion saved in the U.S. over a 10-year period.