More R&D: Not Boosting Big Pharma

Despite stepped-up levels of research spending, drug outfits are launching fewer new products, says S&P

Drug industry R&D spending, by U.S. members of PhRMA, an industry trade group, expanded 20% from 2004 through 2007. Yet the number of Food & Drug Administration-approved new molecular entities and novel biologics declined from 36 to 18 over the same period. This attrition occurred despite important advances in R&D technology platforms, such as rational drug design and genomics earlier in the decade.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.