WHERE WE ARE TODAY

Biopharmaceuticals represent a $135-billion industry worldwide and are growing at 20% annually, much higher than most other industries. This dynamic segment provides well over 400 drug products to the major US and European markets, and hundreds of others marketed internationally. The biopharmaceutical industry is one of the most important engines for technology growth worldwide. In fact, mainstream pharmaceutical companies have been moving into biopharmaceuticals in search of future products and profits. Currently, about 15% of worldwide pharmaceutical revenue comes from biopharmaceuticals (2), but this will grow to about 40%, with an estimated 40% of pharmaceuticals currently in development being biopharmaceuticals. The biopharmaceutical industry is maturing, and many products are coming off patent, with biosimilar versions on track to enter US, European, and lesser-regulated international markets. Thus, the number of biopharmaceutical manufacturers and facilities are expected to multiply rapidly in coming years.

In BioPlan's Top 1000 Biopharmaceutical Facilities Index, we will provide not only counts, but also indexed rankings of each company, as well as the regional ranking based on the sum of each individual facility BioIndex. This index will provide a quantitative analysis of the strength not only of the biomanufacturers, but of the regions and clusters, as well.

Biopharmaceutical manufacturing facilities are strategic assets, both for the companies involved and for the cities, states, and countries where they are located. This status is unlike the financial and other industries where products and profits are often more virtual. Biopharmaceuticals involve real products, with their manufacture requiring the highest technology, trained professionals, and expensive infrastructure. Research and development (R&D), on the other hand, is increasingly diffuse, and often involves multiple facilities, outsourcing, licensing in, and collaborations. In contrast, biopharmaceutical manufacturing provides sources for revenue and profits and is physically concentrated, generally performed in a single major or, at most, several redundant facilities. Each facility typically costs more than $100 million, employs hundreds of manufacturing professionals, and provides for its community related tax and other local benefits. While biopharmaceutical R&D facilities may come and go, for example, through corporate changes, acquisitions, and bankruptcy, manufacturing facilities are physical assets that tend to continue to manufacture products despite corporate changes.

However, technological advances are reducing bioprocessing costs and complexity, therefore lowering the bar for entry, including in lesser-developed countries. Improved expression systems and genetic engineering continue to increase productivity. Single-use bioprocessing systems are reducing the need to support infrastructure, reducing up-front investments, and are making manufacturing simpler, more affordable, and flexible.