CEOs Say Regulations And Lack Of Funding Threaten The Future Of America’s Biomedical Industry

BayBio Biomedical
Gail Maderis, president and CEO of BayBio

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Three quarters of biomedical industry CEOs believe that another country could challenge the U.S. as the leading biomedical region in the world within five years, according to a 2012 California BioMedical Industry survey conducted by CHI-California Healthcare Institute, BayBio, and PricewaterhouseCoopers.Eight in 10 CEOs attributed the slow growth of their organisations to the FDA’s regulatory approval process, which they believe is not the best in the world, and said that coverage and reimbursement issues are extremely important to the future of research and development.  

“As the centre of biomedical innovation in the U.S., California’s biomedical industry is a national treasure,” Gail Maderis, president and CEO of BayBio, said in the press release. “But the pace of R&D productivity and its global leadership position hang on the availability of capital to fund future innovation and a regulatory framework that is based on consistency and innovative technologies.”

Three quarters of CEOs said that their companies had to delay research or developments projects in the past year, with 40% of such delays due to the lack of funding. 

The number of CEOs who said they will look to licensing agreements and corporate partnerships to finance their projects in the next 12 months doubled to 44% over the last year and the number willing to tap corporate venture capital tripled from 10% to 30%.

Nearly three-quarters (72%) of CEOs said that access to capital is important to keeping biomedical research, innovation, and investment in California, “followed by tax incentives for innovation (60%), corporate taxation (51%), workforce preparedness (47 %) and duplicative regulation among various state and federal agencies (37%).”