TIME :
Whenever critics complain about the high cost of
prescription drugs, the pharmaceutical industry’s standard defense is
that companies have to plow so much money into researching innovative
new medicines. But a recently released report from the Government
Accountability Office casts doubt on that rationale. Yes the industry
is spending heavily on R&D, the GAO found, but it turns out big
pharma isn’t actually generating such a good return on their
investments.The congressional watchdog agency’s 48-page study came up with
disturbing numbers. From 1993-2004, spending by U.S. drug companies on
research and development jumped 147%, from $16 billion to nearly $40
billion annually. But the number of applications the pharmaceutical
firms submitted to the Food and Drug Administration for potentially
groundbreaking new drugs during that 10-year period increased only a
meager 7%. And since 1995, the applications for these innovative drugs
have been dropping each year. “The productivity of research and
development investments has declined,” the GAO concluded.
::Tullycast:: 