The anatomy of a biopharmaceutical ecosystem

Behind every medical breakthrough in the United States is a high-powered, relentless ecosystem — researchers, workers and communities — driving innovation forward.

• It's built on intentional policy and anchored by robust local engines. Right now, Pennsylvania is home to one of the most promising in the country, powered by Philadelphia's world-class research corridor and stretching across the entire Commonwealth to yield massive returns.

The proof: U.S. patients access breakthrough cures three years earlier than other high-income countries and have access to 88% of new medicines, compared with just 36% elsewhere.

• This innovation drives $85.2 billion in total economic output for Pennsylvania.

At an Axios Live event in Philadelphia, local leaders gathered to discuss how the region is helping support and drive that innovation.

• "Pennsylvania leadership has made very strategic decisions to invest in policies, establish initiatives and put funding in to make Pennsylvania a very attractive place to invest," said Jocelyn Ulrich, VP of policy and research, PhRMA. "That results in jobs."

The local engine: good jobs that develop cures & build communities

First things first: Pennsylvania's biopharmaceutical ecosystem brings world-class research facilities, manufacturing centers and top American talent together in a thriving hub for innovation. These facilities are on the front lines of developing the next generation of life-changing treatments and cures.

• Biopharma employs Pennsylvanians across virtually every occupation category and skill level. A workforce this broad means durable, high paying careers and opportunities that reach every corner of the Commonwealth.

Key numbers:

Biopharma in Pennsylvania:

• Supports 262,000+ jobs, including 56,000+ direct biopharmaceutical positions and more than 206,000 indirect and supplier jobs.
• Can lead to high-paying careers with an average compensation of $178K annually, more than double the state's $74K average across all industries.
• Provides roles spanning forklift operators and packaging technicians to bioengineers, data scientists and sales specialists.

The blueprint: investing in American innovation

The landscape: Pennsylvania's role as an emerging biopharmaceutical hub is anchored by more than 100 manufacturing facilities, a world-class network of universities and a robust pharmaceutical industry.

• This collaborative ecosystem continuously attracts global talent and new industry investment in Pennsylvania that turn laboratory breakthroughs into cures that have the potential to change people's lives.
• Eli Lilly and Company is building a landmark $3.5 billion manufacturing facility in the Lehigh Valley.
• GSK is investing $2 billion in Pennsylvania to expand its R&D and manufacturing footprint in Lancaster County and build a new biologics flex factory in Montgomery County.
• Johnson & Johnson is investing more than $1 billion into building an advanced manufacturing facility in Montgomery County.
• Merck is investing more than $3.2B in its Montgomery County campus by 2029.

That's more than $5 billion in investments — in one state, in one industry, right now.

Okay, but: This investment didn't happen by accident. It's built on decades of smart policy choices, in Pennsylvania and nationally, that reward risk-taking and innovation, protect intellectual property and encourage public-private partnerships.

• Pennsylvania leaned in with a policy environment conducive to clinical trials, advanced manufacturing and collaboration among industry, labor and community partners.

Looking ahead: maintaining Pennsylvania's innovative edge

The challenge: Pennsylvania's leadership, and America's isn't guaranteed. China invested heavily to dominate medicine development and, today, they produce some of the world's most promising science.

• China has the fastest growing pipeline in the world with novel drug development growing 200% since 2020, more than double the U.S. growth rate.

This competition, coupled with short-sighted domestic policies like international price setting, put our leadership at risk and threaten the pipeline of treatments and cures still to come.

The solution: Navigating these threats requires making the U.S. the world's most attractive place to discover, develop and deliver innovative medicines.

Here's how:

• Strengthen IP protections and the regulatory environment that make the U.S. the most attractive place in the world to develop new medicines.
• Invest in the research infrastructure, workforce, technology and manufacturing that keep innovation here, not overseas.
• Fix the system to ensure patients can access and afford the new medicines innovation delivers.

Pennsylvania is already showing what this looks like. The Commonwealth has maintained its edge by preserving the conditions that fuel research, investment and discovery while avoiding policies like international price setting and prescription drug affordability boards that threaten the pipeline.

The takeaway: America's biopharmaceutical leadership is a choice supported by intentional policy and nurtured within robust local ecosystems like Pennsylvania.

• From Philadelphia's innovation corridors to manufacturing floors and labs across the Commonwealth, Pennsylvania is proof of what biopharma can deliver when policy and investment align.

Sustaining Pennsylvania's innovation engine means more cures, more jobs and a stronger America. It's an easy choice.

Learn more about Pennsylvania's emergence as a biopharmaceutical hub.