Novel drug approvals flat for 2006

30

Jan

2007

Eighteen novel drugs won government approval in 2006, the same number as the year prior, according to an article by the Associated Press. The stagnation has occurred in spite of increased spending in research and development by the drug industry. Between 1994 and 2004, research and development spending by drug companies increased 147%, while the number of applications for drug approvals grew by only 7%, according to a report issued in late 2006 by the Government Accountability Office. According to the report, one of the reasons for this discrepancy is drug companies’ focus on developing new “blockbuster” drugs that can result in a billion or more in yearly sales, to the detriment of the development of new, innovative drugs that treat less common ailments.

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