Pharmaceuticals: Exit Research and Create Value

Abstract

The true crisis in pharmaceutical research. The number of new drugs licensed remains at the long term average range of 15-25 a year. However, 85-90% of new products over the past 50 years have provided few benefits and considerable harms. The pharmaceutical industry devotes most research funds to developing scores of minor variations that produce a steady stream of profits. Heavy promotion of these drugs contributes to overuse and accounts for as much as 80% of a nation’s increase in drug expenditure. Overinflated estimates of the average cost of research and development are used to lobby for more protection from free market competition.