By Nora Caley
From the September/October 2024 Issue

From blockbuster drugs that garner media attention to smaller innovations that help millions maintain health, the biotech and pharmaceutical industries have an impact on everyone’s life. Meanwhile, research and manufacturing in these industries support jobs and positively affect economies. According to “The Economic Impact of the U.S. Biopharmaceutical Industry: 2022 National and State Estimates,” a report from the Pharmaceutical Research and Manufacturers of America (PhRMA) and TEConomy Partners, LLC, biopharmaceutical workers are employed at more than 1,500 manufacturing facilities across 47 states, the District of Columbia, and Puerto Rico. They work in high-paying jobs, as the report noted that average annual compensation was $157,712 per worker directly employed by the biopharmaceutical sector.
Also according to the report, 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.
The industry has had its challenges lately, including decreased sales post-pandemic. According to the 2024 edition of “Beyond Borders: EY Biotechnology Report,” revenues for U.S. and European biotech companies dropped 10.7% from 2022 to 2023. The report maintained that recent sales trends are simply part of an economic pendulum swing, as the decrease came after a sales spike driven by Covid-19 vaccines and therapeutics. Biotech companies are responding in several ways, the report noted, such as conserving cash and creating efficiencies, optimizing their business models and entering into mergers and acquisitions. In fact, there was an 86% increase in M&A activity compared to the previous year, and a 38% increase on the previous five-year average.
Product innovation will be one driver of future sales. The Center for Drug Evaluation and Research, part of the U.S. Food & Drug Administration, reported that in 2023 it approved 55 novel drugs, or new drugs that had never been approved or marketed in the U.S. In addition, there were several approvals that expanded the use of previously approved drugs.
Here are some regions that are attracting biotech and pharma companies.
Frederick County, Maryland: Thriving Hub For Life Sciences
Frederick County, Maryland, is a prime destination for life science companies, driven by its ideal location, skilled workforce, and robust industry support. As the northern anchor of the I-270 Technology Corridor, Frederick County is located within a one-hour drive to two metropolitan cities, Washington, DC and Baltimore, MD. This proximity offers direct access to federal government agencies, including the National Institutes of Health (NIH) and the U.S. Food and Drug Administration (FDA), and to one of the largest clusters of life science companies in the country.
The life sciences ecosystem within Frederick County is thriving and provides resources and opportunities to support businesses from inception through commercial manufacturing and distribution. Frederick County provides incubation and acceleration through the Frederick Innovative Technology Center, Inc. (FITCI), speed-to-market permitting, a favorable business climate, including incentives and tax savings, access to three international airports, and dedicated sites suitable for research and development and commercial manufacturing operations.

As the fastest growing county in Maryland, Frederick County is recognized as a thriving hub for innovation and scientific advancement. The county’s robust ecosystem is anchored by Fort Detrick, which has a $12 billion economic impact on the state of Maryland. Fort Detrick is home to some of the nation’s leading experts in biodefense, medical research, and infectious diseases. The proximity to this significant research hub offers biotech companies access to critical partnerships, funding opportunities, and cutting-edge research.
Several factors have contributed to Frederick County’s success in attracting and expanding life science companies. The region’s highly educated workforce provides a steady pipeline of skilled professionals with expertise in biology, chemistry, engineering, and related fields. Frederick County is strategically positioned within the larger BioHealth Capital Region, which boasts over 80 federal labs, multiple academic institutions, and top-tier research centers. This interconnected network of resources strengthens the region’s capacity for innovation and makes Frederick County a prime location for biotech companies looking to tap into this collaborative environment.
Frederick County remains committed to fostering a business-friendly environment that attracts companies at the forefront of medical research, biotechnology, and pharmaceutical development. With an impressive 130 companies located here and the continued expansion of leading biotech firms, Frederick County remains a key player in the life sciences sector.
Kite, a Gilead Company and a leader in CAR-T cell therapy, chose to locate its east coast manufacturing facility in Frederick, where the company produces cutting-edge cell therapy treatments for cancer patients. Lonza announced their significant renovation plans for its manufacturing facility to support its bioscience operations. The significant investment by these global leaders is a testament to the strategic value Frederick County offers in supporting cutting-edge biotech manufacturing.
The Frederick County Office of Economic Development (FCOED) actively engages with the life science industry to ensure that businesses have access to programs and resources, workforce, tax incentives, and financial support.
Visit www.DiscoverFrederickMD.com for more information.