Innovative R&D Strategies and Models

Sept. 22, 2011 - PRLog -- While R&D has always remained an integral and most vital function of the pharmaceutical industry, its declining productivity has raised concerns among the key stakeholders of the industry. One of the simplest, yet most important, indicators of the declining return on investment (ROI) has been the widening gap between the R&D expenditure and the number of new drug approvals, especially since 1996 when the Food and Drug Administration (FDA) approved 53 New Molecular Entities (NME) in 1996, the R&D expenditure of the industry stood at approximately $21.9 billion.

However, the NME approval rate reached an all-time low within just six years with just 17 NME approvals as the R&D expenditure almost doubled to $42.3 billion. R&D expenditure is steadily increasing, but this is not being reflected in the number of new drug approvals. This has increased the cost of new drug launches to astronomical levels. While it used to cost less then $1 billion ($842m) to launch a drug in 1999, the cost went as high as nearly $2 billion ($1,778m) in 2010. In addition, the negative pricing and reimbursement pressures are adding to the woes of the pharmaceutical companies who try to generate high revenues from their novel drugs. With key blockbuster drugs in the industry set to expire within the next five years and a clear lack of potential blockbusters in the current pharmaceutical industry pipeline, the industry experts are looking for ways to mitigate the risks and improve their return on investment on R&D expenditure.

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GBI Research, the leading business intelligence provider, has released its latest research
“Innovative R&D Strategies and Models - Outsourcing, Strategic Partnerships and Licensing to Improve Productivity and Contain Costs” which provides the key data, information and analysis on the major pharmaceutical R&D practices undertaken at the global level in order to improve efficiency and effectiveness. The report provides comprehensive insights into major challenges in the current pharmaceutical R&D landscape. It analyzes the key measures and practices (mergers and acquisitions, R&D restructuring, outsourcing and active lifecycle management) adopted by the pharmaceutical industry to tackle these challenges and improve the R&D efficiency. The report substantiates the analysis with various case studies to study the effect of the measures post-implementation. The report also provides an analytical insight into the potential solutions that have tremendous potential to improve the future pharmaceutical and biotechnology R&D productivity.

This report is built using data and information sourced from proprietary databases, primary and secondary research and in-house analysis by GBI Research’s team of industry experts.

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