R&D Investment by U.S. Biopharmaceutical Companies Increases to Record $65.3 Billion, Study Finds

SAN FRANCISCO, March 16 /PRNewswire/ -- New research just released reveals that research & development (R&D) investment in new medicines and vaccines by the U.S. biopharmaceutical industry was $65.3 billion in 2009, an increase of more than $1.5 billion from the total R&D investment made in 2008, according to a combined analysis conducted by Burrill & Company, a San Francisco-based global leader in life sciences whose principal activities are in Private Equity, Venture Capital, Merchant Banking and Media, and the Washington, DC-based Pharmaceutical Research and Manufacturers of America (PhRMA).

PhRMA-member companies alone spent an estimated $45.8 billion on biopharmaceutical R&D last year, according to a PhRMA survey. The Burrill & Company analysis shows that non-PhRMA pharmaceutical research companies in the United States spent an estimated $19.5 billion on R&D in 2009.

"This is the sixth year that we have joined with PhRMA to report industry-wide biopharmaceutical research and development expenditures," said G. Steven Burrill, CEO of Burrill & Company. "The record R&D investment that has been made despite the tough ongoing economic hurdles faced by these innovative companies shows the industry's commitment in supporting important advances in better medicines and new treatments for patients."

"America's biopharmaceutical research sector takes great pride in its global leadership in the development of new life-saving treatments and cures," said PhRMA President and CEO Billy Tauzin. "Over the past year the economic challenges have been enormous, but our industry's continued commitment to R&D is bringing hope to millions of patients around the world who are battling potentially devastating diseases such as cancer, heart disease and diabetes."

Burrill & Company computes R&D expenses among other key financial parameters on a quarterly basis for the universe of U.S. publicly listed biotech companies through its reports on the industry (sourced from company reports filed with the SEC). To create a comparable report additive to PhRMA's annual membership survey, Burrill applies a set of pre-determined criteria to their biotech research to identify and select non-member companies. Specifically:

• Companies must be based in the United States of America
• Companies must not be a member or member subsidiary of PhRMA and,
• Companies must meet the "human healthcare focus" test, i.e., their R&D expenses are principally for research and development of new medicines for healthcare.

About Burrill & Company

Founded in 1994, Burrill & Company is a San Francisco-based global leader in life sciences with activities in Venture Capital, Private Equity, Merchant Banking and Media. The Burrill family of venture capital funds has over $950 million under management and its merchant banking business is one of the industry leaders in life sciences transactions. Burrill is also the creator, sponsor and facilitator of leading industry conferences worldwide and publisher of a range of bio-intelligence reports including the monthly Burrill Report (www.burrillreport.com) and annual "State of the Industry" report -- the 24th Edition, Biotech 2010-Life Sciences: Adapting for Success, is now available.

About PhRMA

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 companies are leading the way in the search for new cures.

SOURCE Burrill & Company