The Economic Impact of Texas’ Clinical Trial Industry

Texas’ clinical trials are working to come up with new cures for previously untreated disease, but the economic impact of the trials is another added benefit. They have generated $6.61 billion in economic development in the state. Texas was third in the nation for active clinical trials, with 1,989 trials across the state according to a report from TEConomy Partners. The largest group of surgeries by enrollment is oncology.

Commercially available prescription medicines go through a long process and requires involvement from government, academia, non-profit organizations, patient advocacy groups, and health care providers before the medicine reaches medicine cabinets. It can take 10-15 years, and less than 12 percent of medicines that make it to trial end up being approved by the FDA. The U.S. continues to be a leader in biopharmaceutical industry, and trials are an essential part of the process. American biopharmaceutical companies make up 53% of all U.S. investments in health and biomedical research and development.

The clinical trials in Texas involved 91,969 patients, with $1.55 of economic investment. Nationwide, 4,500 clinical trials of medicines were sponsored by the biopharmaceutical industry, including nearly one million participants in 2017. The industry spent $15 billion in clinical trials with an total economic impact of $43 billion, according to the report.

Clinical trials often occur in areas with large biotech influences and research institutions, says Nicholas McGee, the Director for Public Affairs at PhRMA the Pharmaceutical Research and Manufacturers of America. The trade group represents pharmaceutical companies. The trials measured in this study include everything from Phase 1 studies with a few people to the larger studies with thousands and even post-market studies after the drugs have been releases.

The trials impact is more than just than cure, McGee says. The direct investment by the manufacturer is compounded by hiring staff, recruiting participants, and the additional economic ecosystems that support the work. Around 230,000 jobs in Texas alone are supported by the investment of pharmaceutical companies for clinical trials.

The top five states for clinical trials were California (2,152), Florida (1,735), Texas (1,989), New York (1,707), and North Carolina (1,196).

Read the entire report here.

Posted in News, Pharmaceuticals.