Pharma Must Lower R&D Costs—Here’s How to Do It
Although the total costs of bringing a new drug to market cited within various research reports are hotly debated, the problem is very clear. Correcting for inflation, the cost to bring a prescription drug to market has increased 145% within the last 13 years despite concerted industry efforts to lower new drug R&D costs.
Why are drug R&D costs rising so rapidly? The reasons are multi-faceted, but they include the increased complexity of administering clinical trials, a greater focus on developing drugs for complex chronic and degenerative diseases, a regulatory system struggling to keep pace within advances in innovation, higher demands from insurance companies seeking comparative drug effectiveness data and legacy approaches within many pharmaceutical companies that are not well adapted to the current demands and opportunities within the industry.
This paper explores some of the areas where the pharmaceutical industry must focus to lower R&D expenditures including:
- Decreasing the Risk and Failure Rates within the Drug Development Process
- New Drug Development Models
- Key Changes to Regulatory Constructs