Related Experiment Video
Updated: Jul 21, 2025
05:10
Drug Repurposing Hypothesis Generation Using the "RE:fine Drugs" System
Published on: December 11, 2016
9.7K
Analysis of pharma R&D productivity - a new perspective needed
Alexander Schuhmacher1, Markus Hinder2, Alexander von Stegmann Und Stein3
1Technische Hochschule Ingolstadt, THI Business School, Esplanade 10, DE-85049 Ingolstadt, Germany; University of St. Gallen, Institute of Technology Management, Dufourstrasse 40a, CH-9000 St. Gallen, Switzerland.
Drug Discovery Today
|July 28, 2023
Summary
Pharmaceutical R&D productivity remains a challenge. Analysis of 16 companies over 20 years shows increased spending, with an average R&D efficiency of $6.16 billion per new drug, often necessitating mergers and acquisitions.
Area of Science:
- Pharmaceutical industry
- Drug development
- Biotechnology
Background:
- Research and Development (R&D) productivity is a persistent challenge in the pharmaceutical sector.
- The increasing costs and complexity of drug discovery necessitate ongoing evaluation of R&D efficiency.
Purpose of the Study:
- To analyze the R&D input, output, and outcome of leading pharmaceutical companies over a 20-year period (2001-2020).
- To assess R&D efficiency and identify trends in drug development productivity.
Main Methods:
- Analysis of R&D expenditures, new drug approvals, and corporate strategies (including mergers and acquisitions).
- Longitudinal study of 16 major research-based pharmaceutical companies from 2001 to 2020.
Main Results:
- Pharmaceutical companies increased R&D spending by 6% annually, reaching an average of $6.7 billion per company in 2020.
- These companies launched 251 new drugs, accounting for 46% of FDA Center for Drug Evaluation and Research (CDER) approvals.
- Average R&D efficiency was calculated at $6.16 billion in total R&D expenditure per new drug.
Conclusions:
- Many leading pharmaceutical companies exhibit negative R&D productivity, often requiring mergers and acquisitions to offset deficits.
- The study highlights significant R&D investment but a high cost per new drug, indicating ongoing challenges in pharmaceutical R&D efficiency.
Related Concept Videos
01:12Analysis of Population Pharmacokinetic Data
297
Analysis of population pharmacokinetic data involves studying the behavior of drugs within diverse populations to understand their pharmacokinetic parameters. Traditional pharmacokinetic methods typically involve collecting samples from a few individuals and estimating these parameters. While these methods are commonly used, they have limitations in capturing the variability in drug response among individuals or heterogeneous populations. Population pharmacokinetics is employed to address these...
297
01:28Structure-Activity Relationships and Drug Design
770
Drug design is a dynamic field that involves discovering and developing new medications based on specific biological targets. This process heavily relies on structure-activity relationships (SAR) and quantitative structure-activity relationships (QSAR) to guide the design and optimization of efficient drugs.
SAR studies the intricate relationship between a drug's chemical structure and biological activity. It focuses on understanding how modifications to a drug's structure can influence...
SAR studies the intricate relationship between a drug's chemical structure and biological activity. It focuses on understanding how modifications to a drug's structure can influence...
770
01:28Biopharmaceutics and Pharmacokinetics: Overview
2.1K
Understanding drugs, drug products, and their performance in pharmaceutical science is pivotal. Drugs, whether simple molecules or complex compounds, are designed to interact with the body's biological systems to diagnose, treat, or prevent diseases. Drug products include various delivery systems such as tablets, capsules, injections, and inhalers. The performance of these drug products is gauged by their ability to deliver the active ingredient to the desired site of action at the...
2.1K
01:26Drug Discovery: Overview
8.1K
Drug discovery is a multifaceted process involving extensive screening, testing, and optimization of lead compounds to identify potential new drugs for therapeutic use. It combines several approaches, including screening large numbers of natural products, chemical modification of known active molecules, identification of new drug targets, and rational design based on biological mechanisms and drug-receptor structure. These approaches are carried out in both academic research laboratories and...
8.1K
01:14Analysis Methods of Pharmacokinetic Data: Model and Model-Independent Approaches
184
Drug disposition in the body is a complex process and can be studied using two major approaches: the model and the model-independent approaches.
The model approach uses mathematical models to describe changes in drug concentration over time. Pharmacokinetic models help characterize drug behavior in patients, predict drug concentration in the body fluids, calculate optimum dosage regimens, and evaluate the risk of toxicity. However, ensuring that the model fits the experimental data accurately...
The model approach uses mathematical models to describe changes in drug concentration over time. Pharmacokinetic models help characterize drug behavior in patients, predict drug concentration in the body fluids, calculate optimum dosage regimens, and evaluate the risk of toxicity. However, ensuring that the model fits the experimental data accurately...
184
00:59Model-Independent Approaches for Pharmacokinetic Data: Noncompartmental Analysis
95
Noncompartmental analyses offer an alternative method for describing drug pharmacokinetics without relying on a specific compartmental model. In this approach, the drug's pharmacokinetics are assumed to be linear, with the terminal phase log-linear. This assumption allows for simplified analysis and interpretation of the drug's behavior in the body.
One important characteristic of noncompartmental analyses is that drug exposure increases proportionally with increasing doses. This...
One important characteristic of noncompartmental analyses is that drug exposure increases proportionally with increasing doses. This...
95