PhRMA Member Companies Invested $48.5 Billion in R&D in 2012
WASHINGTON, April 11, 2013 /PRNewswire-USNewswire/ -- Investment in research and development (R&D) by member companies of the Pharmaceutical Research and Manufacturers of America (PhRMA) remained strong at an estimated $48.5 billion in 2012, despite economic, scientific, and business challenges. These efforts are highlighted in PhRMA's 2013 Biopharmaceutical Research Industry Profile released today.
The 2012 R&D investment figures reflect the biopharmaceutical sector's continued standing as America's most research-intensive industry. In 2012, PhRMA members invested nearly 21 percent of domestic sales into R&D.
"Investment in research is crucial to bringing new treatments to patients for our most challenging and costly diseases," said John J. Castellani, PhRMA president and CEO. "The U.S. biopharmaceutical sector – led by our member companies – is a major contributor to American innovation and to the domestic economy."
This commitment to research and development is reflected in the robust biopharmaceutical pipeline, which has a high proportion of potential first-in-class medicines and therapies targeting diseases with limited treatment options. According to a report released by PhRMA earlier this year, more than 5,400 medicines are in development globally, representing future opportunities for new, cutting-edge medicines to improve patient care and bring value to the U.S. health care system.
The biopharmaceutical industry's approach to R&D continues to evolve and adapt to scientific advancements, rising drug development costs and changing regulatory requirements. 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.
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. As the complexity of the science requires broader expertise, these collaborative efforts allow companies to diversify their portfolios and to access new technologies that can result in R&D efficiencies.
"The discovery and development of new treatments saves and improves patients' lives. 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," concluded Castellani.
The biopharmaceutical research sector supports nearly four million jobs in the U.S. and the overall impact of the sector on the domestic economy is $917 billion annually. Since 2000, PhRMA member companies alone have invested approximately $550 billion in research and development of new therapies for a wide range of diseases such as diabetes, heart disease and HIV/AIDS.
The 2012 R&D numbers reflect investment made by PhRMA's 31 members.
The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country's leading innovative biopharmaceutical research and biotechnology companies, which are devoted to discovering and developing medicines that enable patients to live longer, healthier, and more productive lives. Since 2000, PhRMA member companies have invested nearly $550 billion in the search for new treatments and cures, including an estimated $48.5 billion in 2012 alone.
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SOURCE Pharmaceutical Research and Manufacturers of America