Pharmaceutical research and development

Some aspects of pharmaceutical research and development (R&D) are reviewed. The viability of major pharmaceutical manufacturers depends on their research and thus they commit substantial resources to R&D programs. Major pharmaceutical manufacturers in the United States employ about 40,000 R&D personnel, and worldwide pharmaceutical R&D expenditures reached $24 billion in 1990. The pharmaceutical industry is one of the most profitable; however, increasing prices of their products are often associated with increasing R&D costs, ignoring the many positive attributes of R&D. The Council on Competitiveness has recently proposed reforms in the approval process for new drugs, including accelerated approval, external review, and international cooperation. These reforms would help to preserve an R&D capability and a relatively unregulated pharmaceutical industry. Pharmaceutical R&D has made many important contributions, including increased life expectancy, the internationally competitive position of the US industry, and a positive balance of trade. However, a misunderstanding of the role of R&D could encourage development of policies and legislation detrimental to pharmaceutical R&D.