The great breakthroughs hailed by the pharmaceutical industry, are not that great. In spite of tremendous scientific, technical and managerial advancements, the big pharmaceutical companies introduce fewer new drugs every year. Moreover, most of these “new” drugs are actually small variations on existing drugs. Consider a study published in March of 2012 on Nature.com. “The number of new drugs approved per billion US dollars spent on R&D by the pharmaceutical industry fell by half roughly every 9 years since 1950. Scientists call this trend the ‘The Productivity Crisis in Drug Discovery.’ The financial markets also use the term, ’empty pipeline.’ ”
Eight years ago, Professor D. Almog wrote that “The productivity crisis in pharmaceuticals is an important problem that should be seriously addressed by academic scientists and NIH administrators.” His study was published in the Medical Science Monitor in January 2005.
As the CBCD recently reported, big pharmaceutical companies are starting to respond to investors’ concerns. For instance, Teva Pharmaceutical Industries, Ltd. has announced “plans to eliminate about 5,000 jobs as it accelerates cost reductions amid growing competition… Cutbacks, which equal about 10 percent of the workforce … .”
“It seems that at least part of Teva’s reason for downsizing is the fact that ‘its future hinges on finding new revenue to replace what it earns from the branded product Copaxone.’ In other words, they have no new drugs to replace Copaxone. Investors are aware of Teva’s empty pipeline. No new drugs. No new investments. With an empty pipeline, it makes financial sense to invest elsewhere.” – Greg Bennett, CBCD
It is troubling that Big Pharma is in the midst of a productivity crisis. However, the Center also sees this crisis as an opportunity, and would like to suggest Computer Intuition, a new drug discovery technology.
Chosen excerpts by Job Market Monitor. Read the whole story at
via Layoffs in Pharmaceutical Industry due to Productivity Crisis in R&D; CBCD Offers a New Technology.
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