Research budget in pharmaceutical industry

This page is under construction and edited by Peter Friedl EMBA09. In case of any questions/remarks, feel free to contact me

Description:

In the pharmaceutical industry research and development is a very time-consuming and demanding task. Only a few new drugs make it through development, testing and product approval each year. This asks for a large R&D budget over several years for pharmaceutical companies. Even then a success, the development of a new, good selling drug, is of course not guaranteed.

Enablers:

• Size of the pharmaceutical company
• Revenue streams of the company
• Marketability of pharmaceuticals
• Intellectual Property rights for pharmaceuticals (link to driving force IP rights)
• Funding of R&D projects by the health system
• General prosperity

Inhibitors:

• Unstable and unpredictable general economic conditions
• Facilitating of the production of generica

Paradigms:

R&D in pharmaceutical industry is a very time and money consuming undertaking that requires predictable future revenue streams to be viable for the respective companies

Web Resources:

• [1] Pharmaceutical Corporations and Medical Research - article on Global Issues

• [2] R&D in the Pharmaceutical Industry - a Congressional Budget Office Study