Magazine article Drug Topics

Drug Firms Must Step Up Discovery Process for Success

Magazine article Drug Topics

Drug Firms Must Step Up Discovery Process for Success

Article excerpt

Results of a study released Oct. 15 showed that pharmaceutical compan ies must effect a near 10-fold performance increase in the new drug discovery and development process by the year 2000 to meet the 10% annual growth rate expected by shareholders.

According to the study by Andersen Consulting, a global management and technology consulting firm headquartered in Chicago, pharmaceutical companies must slice drug discovery time lines in half and triple the number of potential new drugs brought to the developmental stage annually to meet industry growth trajectories. That means putting on the market at least five significant new drugs per year-with each drug commanding a $350 million-plus annual sales potential. In comparison, between 1990 and 1994, the 20 leading pharmaceutical firms brought to market an average of only 0.45 new products annually. And, of all products in the market, fewer than one in 10 has achieved annual sales in the neighborhood of $350 million.

Pradip Banerjee, Ph.D., author of the study, said he wasn't surprised that results showed pharmaceutical firms must make big changes to stay profitable. …

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