In a recent lecture to biomedical students at Kings College London, Faiz Kermani outlined how more and more R and D projects have been given the green light over the last six months
Faiz Kermani of Chiltern International, an independent clinical research organisation, recently commented on the complex relationship between long-term R and D strategies and success in new drug productivity, and concluded that effective long-term strategies were as important as budgets.
In a recent lecture to biomedical students at Kings College London, Kermani outlined how more and more R and D projects have been given the green light over the last six months as the industry, with the United States at the forefront, has entered a more positive and optimistic period after the low ebbs of 2001 and 2002.
But Kermani believes that success is not only about levels of expenditure, but also about strategy.
"It was assumed that the companies with the highest R and D expenditures would be the most innovative and productive," he explained.
"But the relationships have been shown to be much more complex as the R and D strategy is equally as important.
"The competitive and overcrowded nature of the pharmaceutical market means that companies are under pressure to outperform their rivals.
"By taking the right decision in the discovery and development of products and terminating unsuccessful drugs early, companies will be able to allocate resources more effectively and expedite development. "Obtaining a benefit from R and D investment therefore requires long-term planning and a consideration of how the commercial and technological environment in which the industry operates might change.
"For example, as drug development times lie between the 10 and 12-year range, predictions must be made about the future healthcare environment and how these fit with company objectives.
"Furthermore, the decision-making on projects needs to take account the ever-increasing costs of drug development, the scientific hurdles that exist and the role of external partnerships".
Increasing numbers of companies in the industry have secured or are looking for collaborations with other companies in order to spread both the costs and the risks involved in drug development, as well as gaining access to new technologies which may speed up the vital innovation process. "Perhaps the best example of the long-term approach to R and D being the right one is from the USA, the biggest market of all," added Dr Kermani.
"In 1977, the US pharmaceutical industry invested around US$1.3 billion in R and D, but in 2000 this figure had risen to $32 billion.
As a result of this committed investment, the Pharmaceutical Research and Manufacturers of America (PhRMA) notes that eight of the current top ten worldwide prescription pharmaceutical products have their origins in American R and D and that since 1990, the US pharmaceutical industry has grown twice as fast as the overall national economy."
