Annual Research, Development Spending By Pharmaceutical Industry Increased By 147% From 1993 Through 2004, But ‘Productivity’ Has Been ‘Declining,’ GA
- Saturday, December 23, 2006, 11:13
- Pharma Industry
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Pharmaceutical companies are submitting fewer drug applications to FDA while spending more money to develop new drugs, according to a report released Tuesday by the Government Accountability Office, the Washington Post reports. The report found that the pharmaceutical industry’s annual research and development spending increased by 147% to $60 billion from 1993 through 2004. During the same period, the number of drug applications to FDA increased by 38%, the study found. The report also found that the number of applications by drug companies to FDA generally has been declining since 1999. In addition, about two-thirds of new drug applications submitted to FDA represented modifications of existing drugs, while 32% of applications represented innovative medications, GAO said. Investigators identified several reasons for a reduction in the number and types of new drugs — including a growing difficulty in translating basic research into effective medicines; a shortage of physician-scientists who have both medical and research expertise; and an emphasis on developing “blockbuster” drugs that bring in substantial profits, which has reduced the amount and types of new products. GAO also found that the pharmaceutical industry increasingly has been trying to develop treatments for complex diseases such as cancer, which have higher failure rates. “Over the past several years it has become widely recognized throughout the industry that the productivity of its research and development expenditures has been declining,” the report stated, adding, “That is, the number of new drugs being produced has generally declined while research and development expenditures have been steadily increasing.”
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