R&D Spending by U.S. Biopharmaceutical Companies Reaches Record $58.8 Billion in 2007
New statistics just released reveal that R&D investment in new medicines by the biopharmaceutical industry was $58.8 billion in 2007, according to a combined analysis conducted by Burrill & Company.
PhRMA-member (Pharmaceutical Research and Manufacturers of America) companies alone spent an estimated $44.5 billion on pharmaceutical R&D last year - up from the previous record of $43 billion in 2006, according to a PhRMA survey. The Burrill & Company analysis shows that non-PhRMA pharmaceutical research companies in the United States spent an estimated $14.3 billion on R&D last year, compared with $12.2 billion in 2006.
"This is the fourth year that we have joined with PhRMA to report industry-wide biopharmaceutical research and development expenditures," said G. Steven Burrill, CEO of Burrill & Company. "The steady growth of R&D investment continues to support important advances in better medicines and new treatments for patients made by research scientists and physicians."
"America's biopharmaceutical research companies continue to pave the way for the development of future treatments and cures," said PhRMA President and CEO Billy Tauzin. "Simply put, R&D is the lifeblood of U.S. pharmaceutical innovators. Last year's investment builds on over 25 years of growth in R&D spending as our researchers continue the search for new and improved therapies to tackle a wide range of diseases and conditions such as cancer, heart disease, HIV/AIDS and Alzheimer's."
Today, there are more than 2,700 medicines in development in the U.S. for 4,600 different indications. The current pipeline includes more than 600 medicines to treat cancer, over 300 specific to rare diseases and more than 275 medicines for heart disease and stroke. This activity dwarfs the pipelines in other parts of the world, such as Europe and Japan, partly reflecting existing policies in the U.S. that foster innovation.
"The preservation and strengthening of these policies - including our market-based health care system, incentives for research and strong intellectual property rights - are critical if we as a nation are serious about maintaining our leadership in pharmaceutical R&D," said Tauzin. "Patients in the U.S. and around the world deserve no less."
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