IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0007015.html
   My bibliography  Save this article

Financing of U.S. Biomedical Research and New Drug Approvals across Therapeutic Areas

Author

Listed:
  • E Ray Dorsey
  • Joel P Thompson
  • Melisa Carrasco
  • Jason de Roulet
  • Philip Vitticore
  • Sean Nicholson
  • S Claiborne Johnston
  • Robert G Holloway
  • Hamilton Moses III

Abstract

Background: We estimated U.S. biomedical research funding across therapeutic areas, determined the association with disease burden, and evaluated new drug approvals that resulted from this investment. Methodology/Principal Findings: We calculated funding from 1995 to 2005 and totaled Food and Drug Administration approvals in eight therapeutic areas (cardiovascular, endocrine, gastrointestinal, genitourinary, HIV/AIDS, infectious disease excluding HIV, oncology, and respiratory) primarily using public data. We then calculated correlations between funding, published estimates of disease burden, and drug approvals. Conclusions/Significance: Across therapeutic areas, biomedical research funding increased substantially, appears aligned with disease burden in high income countries, but is not linked to new drug approvals. The translational gap between funding and new therapies is affecting all of medicine, and remedies must include changes beyond additional financial investment.

Suggested Citation

  • E Ray Dorsey & Joel P Thompson & Melisa Carrasco & Jason de Roulet & Philip Vitticore & Sean Nicholson & S Claiborne Johnston & Robert G Holloway & Hamilton Moses III, 2009. "Financing of U.S. Biomedical Research and New Drug Approvals across Therapeutic Areas," PLOS ONE, Public Library of Science, vol. 4(9), pages 1-9, September.
    • Handle: RePEc:plo:pone00:0007015
    DOI: 10.1371/journal.pone.0007015
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0007015
    Download Restriction: no
    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0007015&type=printable
    Download Restriction: no
    File URL: https://libkey.io/10.1371/journal.pone.0007015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Declan Butler, 2008. "Translational research: Crossing the valley of death," Nature, Nature, vol. 453(7197), pages 840-842, June.
    2. Colin D Mathers & Dejan Loncar, 2006. "Projections of Global Mortality and Burden of Disease from 2002 to 2030," PLOS Medicine, Public Library of Science, vol. 3(11), pages 1-20, November.
    3. Joseph A. DiMasi & Henry G. Grabowski, 2007. "The cost of biopharmaceutical R&D: is biotech different?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 28(4-5), pages 469-479.
    4. DiMasi, Joseph A. & Hansen, Ronald W. & Grabowski, Henry G., 2003. "The price of innovation: new estimates of drug development costs," Journal of Health Economics, Elsevier, vol. 22(2), pages 151-185, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bruce Rasmussen, 2010. "Innovation and Commercialisation in the Biopharmaceutical Industry," Books, Edward Elgar Publishing, number 13680.
    2. Colvin, Matthew & Maravelias, Christos T., 2011. "R&D pipeline management: Task interdependencies and risk management," European Journal of Operational Research, Elsevier, vol. 215(3), pages 616-628, December.
    3. Sanzenbacher, Geoffrey T. & Wettstein, Gal, 2020. "Drug insurance and the strategic behavior of drug manufacturers: Evergreening and generic entry after Medicare Part D," Journal of Health Economics, Elsevier, vol. 72(C).
    4. Ernst R. Berndt & Joseph P. Newhouse, 2010. "Pricing and Reimbursement in U.S. Pharmaceutical Markets," NBER Working Papers 16297, National Bureau of Economic Research, Inc.
    5. Dranove, David & Garthwaite, Craig & Heard, Christopher & Wu, Bingxiao, 2022. "The economics of medical procedure innovation," Journal of Health Economics, Elsevier, vol. 81(C).
    6. Lo, Andrew W. & Thakor, Richard T., 2023. "Financial intermediation and the funding of biomedical innovation: A review," Journal of Financial Intermediation, Elsevier, vol. 54(C).
    7. Arisa Djurian & Tomohiro Makino & Yeongjoo Lim & Shintaro Sengoku & Kota Kodama, 2020. "Trends of Business-to-Business Transactions to Develop Innovative Cancer Drugs," Sustainability, MDPI, vol. 12(14), pages 1-14, July.
    8. Banerjee, Tannista & Siebert, Ralph, 2017. "Dynamic impact of uncertainty on R&D cooperation formation and research performance: Evidence from the bio-pharmaceutical industry," Research Policy, Elsevier, vol. 46(7), pages 1255-1271.
    9. Bae, Joonhyung & Ozmel, Umit, 2024. "The interplay between product development failures and alliance portfolio properties in the formation of exploration versus exploitation alliances," Journal of Business Research, Elsevier, vol. 177(C).
    10. Ute Laermann-Nguyen & Martin Backfisch, 2021. "Innovation crisis in the pharmaceutical industry? A survey," SN Business & Economics, Springer, vol. 1(12), pages 1-37, December.
    11. Barrenho, E & Smith, PC & Miraldo, M, 2013. "The determinants of attrition in drug development: a duration analysis," Working Papers 12204, Imperial College, London, Imperial College Business School.
    12. Sang-Min Park & Nicholas S. Vonortas, 2023. "Translational research: from basic research to regional biomedical entrepreneurship," Small Business Economics, Springer, vol. 60(4), pages 1761-1783, April.
    13. Rutger P. Daems PhD & Edith L. Maes DBA, 2013. "Pharmaceutical Portfolio Management: Global Disease Burden and Corporate Performance Metrics," Working Papers 2013/07, Maastricht School of Management.
    14. Jia Lu & Shabana Jamani & Joseph Benjamen & Eric Agbata & Olivia Magwood & Kevin Pottie, 2020. "Global Mental Health and Services for Migrants in Primary Care Settings in High-Income Countries: A Scoping Review," IJERPH, MDPI, vol. 17(22), pages 1-28, November.
    15. Matthijs van den Berg & Filip Smit & Theo Vos & Pieter H M van Baal, 2011. "Cost-Effectiveness of Opportunistic Screening and Minimal Contact Psychotherapy to Prevent Depression in Primary Care Patients," PLOS ONE, Public Library of Science, vol. 6(8), pages 1-7, August.
    16. Maarten Ijzerman & Lotte Steuten, 2011. "Early assessment of medical technologies to inform product development and market access," Applied Health Economics and Health Policy, Springer, vol. 9(5), pages 331-347, September.
    17. Ide, Hiroo & Mollahaliloglu, Salih, 2009. "How firms set prices for medical materials: A multi-country study," Health Policy, Elsevier, vol. 92(1), pages 73-78, September.
    18. Holger Patzelt & Dean A. Shepherd, 2009. "Strategic Entrepreneurship at Universities: Academic Entrepreneurs’ Assessment of Policy Programs," Entrepreneurship Theory and Practice, , vol. 33(1), pages 319-340, January.
    19. Patzelt, Holger & zu Knyphausen-Aufseß, Dodo & Fischer, Heiko T., 2009. "Upper echelons and portfolio strategies of venture capital firms," Journal of Business Venturing, Elsevier, vol. 24(6), pages 558-572, November.
    20. Eldon Spackman & Stewart Richmond & Mark Sculpher & Martin Bland & Stephen Brealey & Rhian Gabe & Ann Hopton & Ada Keding & Harriet Lansdown & Sara Perren & David Torgerson & Ian Watt & Hugh MacPherso, 2014. "Cost-Effectiveness Analysis of Acupuncture, Counselling and Usual Care in Treating Patients with Depression: The Results of the ACUDep Trial," PLOS ONE, Public Library of Science, vol. 9(11), pages 1-12, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:plo:pone00:0007015. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.