In the 1990s, there was still demand for biology PhDs in the private sector, which has significantly dried up since. It's not GONE, but it's greatly reduced. That's why the emergency-of-people-whining (because couldn't get professorships, had to work in industry) is now an emergency-of-people-in-serious-trouble (because can't get JOBS AT ALL.) For the balance, I'll be using the terms Pharma, Biotech and Industry interchangeably - they're not exactly the same thing but the basic argument applies whether the company is making drugs or medical devices or developing new diagnostic biomarkers or whatever they do employing PhDs in the life sciences.
On top of this, the research that the biotech companies are doing is mostly me-too research which doesn't benefit the public. In spite of this, industry is continuing to milk the public of their subsidy from patent protection on products that were ~50% developed at public expense anyway. The solution to this is a fairly simple reallocation:
* End patent protections for medical technologies. Because of capitalism, and markets, and other realities which sensible people accept, this will drive prices through the floor.
* Take the savings to the rest of the economy, and raise people's taxes (should be balance-sheet-neutral on average for the general population)
* Give the extra tax revenue to the NIH, and expand the NIH mission to include drug development, medical device development, etc. as needed to bring such to market.
To be blunt, I do not respect the opinion of people who defend drug patents at this point, especially since such people are generally ideologically committed (as opposed to persuaded on relative merits, no the same thing), to "capitalism". The commitment of "capitalists" to intellectual property protection (instead of market competition) shows them to be craven, deceptive and fraudulent: they're really committed to oligarchy and to the preservation of privilege, not to the market as an instrument of efficient allocation of economic resources. Such people are deeply shameful and depraved - they are not worthy of respect out of any need to promote ideological balance.
Anyway, even during the 90s, the price paid by the public for patented medical treatments was not really justified given the amount that the Pharma industry spent on R&D:
http://www.cepr.net/index.php/press-releases/press-releases/cepr-releases-report-on-prescription-drug-research/
Now a days, with drug expenditures being a larger share of GNP, and pharmaceutical R&D being a smaller share of GNP, the cost:benefit relationship is even more drastic. To put it another way - biotechnology patents, generally speaking, do not meet the constitutional test of being beneficial to the public or of promoting the useful arts. So they should be done away with, and the public sector (which is far more efficient at funding scientific research than the private sector, due primarily to the better information available to the people making decisions) should simply assume that function, producing a significant cost savings for the general public as well as accelerating the pace of research and finding useful employment for our best and brightest.