RESTORE TAX INCENTIVES FOR LIFE SCIENCES INNOVATIONS
The response to the COVID-19 pandemic, by some elected officials and citizens alike, has again highlighted the dangers of playing politics with science. I am not a politician. The pandemic has showcased the critical role that innovative research and development play — in La Jolla and across the state — in combating our greatest public health threats. Unfortunately, California policymakers may be hampering our ability to respond to this and future pandemics by not making smart investments now in our innovation ecosystem.
The researchers, scientists and biopharmaceutical manufacturers that are part of California’s life sciences sector are helping lead the global response to the COVID-19 pandemic. We are developing scientific innovations to diagnose, treat and mitigate the spread of this potentially deadly virus. To date, the life sciences innovation ecosystem has produced three vaccines, one with full approval by the U.S. Food and Drug Administration and two with emergency use authorization.
Additionally, California’s life sciences industry has contributed to more than 389 FDA-approved tests, 10 FDAapproved treatments and launched more than 6,225 COVID-19 clinical trials, all while continuing to pursue our work to discover treatments and cures for other diseases.
These scientific innovations were a bright spot in an otherwise tumultuous 2020. Their impact will extend far beyond the current pandemic. There are more than 3,700 California-based life sciences companies. In 2019 alone, those companies entered 1,380 medicines into clinical trials and had 696 new medicines in the pipeline to treat cancer, infectious diseases, central nervous system disorders and many others.
The industry is helping to catalyze transformational changes to the health care system, including by addressing diseases that disproportionately affect racial and ethnic minorities, improving access to critical medicines and enhancing clinical trial diversity.
In addition to delivering innovative treatments and cures, California’s life sciences industry is also a major jobs-driver. California life sciences companies employ more than 350,000 people directly and one million indirectly with an average salary of $124,000 a year. In 2019 alone, the life sciences industry generated $191.6 billion in revenue, paid over $40 billion in wages, and more than $17.5 billion in federal, state and local taxes.
Every day, at our facility in La Jolla, Pfizer scientists are focused on research and development of new and innovative cancer therapies, including small molecules, vaccines and immunotherapies. We have championed many of today’s innovative approaches to discover new medicines and fight serious diseases, such as various forms of cancer, including intestinal, kidney, pancreatic, lung and breast cancer.
I work side by side with a group of first-class scientists and a diverse spectrum of specialists at Pfizer’s La Jolla site. I have witnessed firsthand the growth in our facilities.
The increase in our investment speaks to the commitment to forwardlooking when developing treatments, medicines and cures for current and future health challenges.
I am concerned that the vital research and development done by Pfizer and other California life sciences companies could become stagnant. Without the proper incentives, innovation-based companies are likely to take fewer risks in their quest for new cures, negatively impacting patients, especially those with unmet needs.
The economic impact of the COVID-19 pandemic and anticipated budget shortfalls led California to make significant budget cuts in 2020, including the elimination of tax incentives that fueled local life sciences research, development and investment in the state’s innovation ecosystem. Despite the expected outcome, California now anticipates a $75 billion budget surplus.
A recent Milken Institute report found that while California is the nation’s leader in life sciences, other states are rapidly gaining an advantage by offering more robust tax incentives, graduating more life sciences students, and having a lower cost of living. California’s continued leadership in innovation is not guaranteed.
To continue to drive California’s economic recovery, fuel job growth and incentivize investments in the research and development of treatments and cures, including for COVID-19 and future pandemics, California’s elected officials should reinstate the R&D tax credit by including it in the 2022 budget that begins in July.
Investing in California scientists and researchers today will lead to new treatments and cures for all tomorrow.
Investing in California scientists and researchers today will lead to new treatments and cures for all tomorrow.
Matchett