WASHINGTON—The Pharmaceutical Research and Manufacturers ofAmerica reported that a total of $49.5 billion was invested in industryresearch and development by its various members in 2011, with the biopharmacompanies providing much-needed capital as the industry seeks to adjust to neweconomical and technological developments.
The biopharmaceutical industry continues to be the mostresearch intensive, with a recent report from the National Science Board of theNational Science Foundation revealing that the U.S. biopharmaceutical sectorcomprises the single largest share of all U.S. business research anddevelopment, accounting for nearly 20 percent of all domestic research anddevelopment funded by American businesses. Research and development expendituresamong members of PhRMA account for 21.1 percent of domestic sales.
"Beyond the impressive numbers reported by our membercompanies is the unfolding story of how companies are adapting to a changingresearch paradigm," John J. Castellani, president and CEO of PhRMA, said in apress release. "Part of that story is our shift to a more agile sector, whichincreasingly involves collaborative, constructive partnerships with both publicand private experts."
There has been a return on the investment as well, with 35new compounds gaining approval from the U.S. Food and Drug Administration in2011. Among those that received approval, 11 new medicines were passed astreatments for rare diseases, a new medicine for lupus (the first since 1955),two new medicines for the treatment of hepatitis C and two personalizedmedicines for the treatment of cancer. Personalized medicine represents an areaof interest that is seeing a lot of growth in research and development, asresearch reveals the necessity for more targeted treatments—particularly incancer—and companion diagnostics have started to become a requirement with sometypes of treatment. A recent survey from the Tufts University Center for theStudy of Drug Development reported that 94 percent of companies that participatedin the survey were currently investing in personalized medicine.
"Despite facing market, scientific and regulatorychallenges, the U.S. biopharmaceutical sector – led by our member companies –has remained a major contributor to American innovation," said Castellani in apress release. "Our member companies' investment represents a boost toAmerica's economy, with 78 percent of those dollars invested on our shores. Butmore importantly, it shows a continued commitment to medical progress that willcontinue to bring new solutions to America's patients."
The 2011 research and development investment numbers arecomprised of investment made by PhRMA's 28 full members. The group's membersinclude industry giants such as Johnson & Johnson, Merck, Pfizer, sanofi,Takeda Pharmaceuticals, Daiichi Sankyo, Amgen and Biogen Idec, among severalothers.
SOURCE: PhRMA press release