DRUG INDUSTRY R&D HITS NEW RECORD: $51.3 BILLION
The pharmaceutical industry's commitment to finding new medicinesclimbed to a new high last year, as drug manufacturer-sponsoredresearch and development (R&D) spending hit a record $51.3billion in 2005.
Most of that R&D investment reflects spending on new medicines bymember companies of the Pharmaceutical Research and Manufacturers ofAmerica (PhRMA)—a group that has increased its investment in new drugresearch each year for the past quarter century.
PhRMA's members paid out a record $39.4 billion in 2005 (up from $37billion in 2004 and from $2 billion in 1980). According to the association, lastyear's R&D spending amounted to more than 19% of the total sales ofPhRMA members.
"America's research-based biopharmaceutical companies once againlead the world in investing in the hunt for new cures and treatments," saidPhRMA's president and chief executive officer, Billy Tauzin. "The R&D investmentmade by PhRMA member companies is one reason that Americanstoday live longer, healthier, and more productive lives."