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Pharma R&D spend down on 2009

According to new research, annual pharma spending in research and development fell for the first time ever from 2009 to 2010

According to new research, annual pharma spending in research and development fell for the first time ever from 2009 to 2010.

The review, compiled by CMR International, claims that expenditure on developing new medicines decreased three per cent from $70bn in both 2008 and 2009 to $68bn in 2010.

Other figures  to show a drop from 2009 to 2010 included the number of drugs entering phase I and phase II development, falling 47 per cent and 53 per cent respectively. The amount of new molecular entities launched also fell, with 21 launched in 2010 compared to 21 in 2009.

Pfizer is one of the main firms to limit R&D spending, with its budget to be cut by a quarter over the next two years. This includes the closure of a plant in Kent, England with the loss of 2,400 jobs.

One of the main issues for pharma companies in upcoming years is the loss of patent exclusivity for 110 drugs in the US, including 14 "blockbusters".

This has led many companies to use the alternative strategy of in-licensing or acquiring compounds. This area is facing difficulty too however, with self-produced drugs currently having a 20 per cent higher chance of making it to market.

27th June 2011

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