For more than 30 years, the U.S. biopharmaceutical industry has been the world leader in the development of new medicines, and PhRMA member companies continue to be at the forefront. The biopharmaceutical industry invested an estimated $90 billion in research and development (R&D) in 2016.
In 2017, PhRMA furthered its commitment to the development of new treatments and cures by establishing new R&D requirements for its member companies. All of PhRMA’s member companies now meet the following criteria:
- A three-year average global R&D to global sales ratio of 10 percent or greater; and
- A three-year average global R&D spending of at least $200 million per year.
PhRMA members have invested more than half a trillion dollars in R&D since 2000, establishing the biopharmaceutical sector as the most R&D-intensive industry in the U.S. economy. In fact, the biopharmaceutical industry invests on average six times more in R&D as a percentage of sales than all other manufacturing industries.
Through investment in R&D, biopharmaceutical researchers and scientists have gained a better understanding of diseases and a greater ability to harness new scientific advances, leading to tremendous progress in the development of treatments and cures for some of the most debilitating diseases patients face.
From drug discovery through FDA approval, developing a new medicine takes between 10-15 years on average and costs an average of $2.6 billion. Learn more about solutions for how the biopharmaceutical industry, government and other stakeholders could further support progress and increased value in the health care system through modernizing drug discovery, development and approval.