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Thought leadership and innovation for the Pharmaceutical Industry

America’s biopharmaceutical industry continues to invest significant amounts of time, effort and financial resources into research and development according to the latest report from the Pharmaceutical Research and Manufacturers of America (PhRMA).

By Lucy Brake on Apr 15, 2013

The 2013 Biopharmaceutical Research Industry Profile prepared by PhRMA outlines how biopharmaceutical research companies in the US invested an estimated US$48.5 billion into new R&D during 2012, which is the largest R&D investment of any sector in the U.S. economy.

Since 2000, PhRMA member companies alone have invested approximately US$550 billion in research and development of new therapies for a wide range of diseases such as diabetes, heart disease and HIV/AIDS.

The profile, just released, highlights how the PhRMA members invested nearly 21 per cent of domestic sales into R&D.“The U.S. biopharmaceutical sector – led by our member companies – is a major contributor to American innovation and to the domestic economy”, said John J. Castellani, PhRMA president and CEO. The overall impact of the sector on the domestic economy is US$917 billion annually supporting nearly four million jobs.

A previous PhRMA report identified that around the world nearly 5,500 medicines are currently in development, representing future opportunities for new, cutting-edge medicines to improve patient care and bring value to the American health care system. This robust biopharma pipeline reflects the major commitment to research and development by companies involved in this industry.

In a press release discussing the results of the profile report, the organisation noted that companies are increasingly focused on targeting some of the most complex diseases such as Alzheimer’s, cancer and Parkinson’s, and are identifying advances in technology to improve R&D productivity and efficiency. It was also noted that in addition to conducting research in-house, biopharmaceutical companies increasingly support research through other arrangements such as corporate venture capital funds, licensing agreements with other companies and public-private partnerships. 

In an increasingly complex industry, companies approach to R&D must adapt to address the continually evolving regulatory, scientific and financial environments. The value of collaboration means that companies can gain increased efficiencies through more easily diversifying portfolios and accessing new technologies.

“Supporting continued innovation and a thriving biopharmaceutical research sector requires a long-term view, with policies and regulatory structures that are consistent, predictable and focused on patients’ needs”, observes Castellani. 

PhRMA represents 31 members, who are the leading innovative biopharmaceutical research and biotechnology companies in America.