Biopharmaceutical manufacturers change lives with groundbreaking medicines while supporting nearly 5 million U.S. jobs. A new report from TEConomy Partners highlights the positive impacts biopharmaceutical innovation has for state and regional economies in the U.S. In total, 47 states and Puerto Rico are involved in the manufacturing of FDA-approved medicines.
Biopharmaceutical companies and their supply chains are key contributors in supporting jobs and local economies across the country. The analysis shows that industry weathered economic downturns, demonstrating 30 percent growth from 2015 to 2022, providing vital stability to both the production of life saving medicines and to the U.S. and regional economies in which it operates.
Economic Output
- The U.S. biopharmaceutical industry exceeded $800 billion in direct output in 2022 and contributed an additional $850 billion in output through its suppliers and other sectors of the economy, for a total of more than $1.65 trillion. This combined, total output impact represents 3.6 percent of all U.S. output.
- The biopharmaceutical sector and its supply chain generated at least $1 billion in economic output in each of 48 states, as well as Puerto Rico and the District of Columbia.
- California alone generated more than $276 billion in economic output thanks to the biopharmaceutical industry.
American Jobs and Operations
- Biopharmaceutical workers are employed at more than 1,500 manufacturing facilities across 47 states, the District of Columbia and Puerto Rico
- Six states — California, Massachusetts, New Jersey, New York, North Carolina and Pennsylvania — each have more than 50,000 workers directly employed by the biopharmaceutical industry.
- 24 states and Puerto Rico have an industry workforce exceeding 10,000 jobs.
- Six states have between 5,000 and 10,000 people in biopharmaceutical industry jobs.
- Compensation averages $157,712 annually per worker directly employed by the biopharmaceutical sector, more than twice the national average across all industries.
To learn more about your state, visit our PhRMA.org/States.
Tim McClung
Tim is a director of policy & research at PhRMA.
Tim McClung
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Economic Impact
State Policy
Biopharmaceutical industry supports jobs and drives economic growth across the United States
Biopharmaceutical industry supports jobs and drives economic growth across the United States