A recent report from BIO and TEConomy notes that decades of growth in the life sciences have been “rooted in, and enabled by, basic and applied research and development activities; development of, and access to, a qualified and highly skilled workforce; [and] investment capital allocated to innovative emerging and existing firms,” among other factors.
Pro-competitive mergers and acquisitions (M&A) have been fundamental in facilitating all the above and more. M&A enables broad and efficient sharing of knowledge, resources and funding that fuels a highly competitive and innovative American life sciences ecosystem.
Key findings from the report include:
- America’s highly interconnected and collaborative bioscience sector contributed $3.2 billion to America’s economy in 2023.
- The number of American pharmaceutical establishments increased by 53% from 2019-2023, reflecting the vibrant growth and competitiveness for which the industry is known.
- The average worker in the American pharmaceutical industry makes $131,562 per year—fully $59,000 greater than the broader private sector average.
Unfortunately, recent policy shifts by the FTC and DOJ—including the 2023 merger guidelines and recently finalized Hart-Scott-Rodino (HSR) premerger notification rule—threaten to broadly deter pro-competitive life sciences M&A and upset the already high-stakes process of bringing new treatments and cures to patients. As the report notes, these policies have coincided with a worrying decline in venture capital (VC) and other investment, and a slowdown in new job creation across the industry:
- VC investment in the bioscience sector has decreased by 49% since 2021—a decline that included an outsized impact on the American pharmaceutical industry.
- The number of new jobs in the U.S. pharmaceutical industry increased by 0.7% in 2023, signifying a slowdown in an industry that has averaged 3.1% in annual job growth since 2019.
The report’s findings support the need for policymakers to recognize and support the unique and fundamental role of pro-competitive life sciences M&A to maintain America’s position as a global leader in biopharmaceutical innovation.
To read the full report, click here.