NCPA - National Center for Policy Analysis


May 16, 2005

Maryland ranks second among states for biopharmaceutical research, but allowing drug reimportation would devastate the industry through lost jobs and reduced economic activity, according to the Institute for Policy Innovation (IPI).

Moreover, if Congress passes a law legalizing drug reimportation from Canada:

  • Maryland would lose an estimated 867 biopharmaceutical industry jobs and $45.5 million in economic activity.
  • During the first five years of drug reimportation, Maryland would lose about $120 million in private spending on research and development.
  • Nationwide, research and development spending by pharmaceutical and biotechnological firms would decline by $14.8 billion over the next 12 years.
  • As a result, 262 life-saving drugs would be abandoned, and only nine new drugs would be approved annually -- a substantial decline from the current average of 31.

The biotech and pharmaceutical industries are a "brain gain" to the United States, providing many good jobs in various communities. In 2003, the industries provided contributed about 35,000 jobs to Maryland's regional economy. However, allowing reimportation would essentially outsource these jobs to Canada, says IPI.

Source: Sonia Blumstein, "New Study Finds Drug Importation Policies Would Destroy 867 Maryland Jobs and Lose $45.5 Million," Institute for Policy Innovation, April 12, 2005; and Douglas Giuffre, "Drug Importation and R&D Spending: The Economic Impact on Maryland's Economy," Institute for Policy Innovation, March 12, 2005.


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