Background
Companies large and small face enormous risks during the crucial early drug development stages. According to the Pharmaceutical Research and Manufacturers of America (PhRMA), major pharmaceutical and biotechnology companies spent $10.5 billion or 22% of total annual R&D costs on non-clinical research in 2011 — more than the total amount spent on Phase I and II activity combined. i While the failure rate tends to diff er for small molecules and biologics, the majority of development eff orts fail, with the rate generally falling between 60 and 90%.
Companies large and small face enormous risks during the crucial early drug development stages. According to the Pharmaceutical Research and Manufacturers of America (PhRMA), major pharmaceutical and biotechnology companies spent $10.5 billion or 22% of total annual R&D costs on non-clinical research in 2011 — more than the total amount spent on Phase I and II activity combined. i While the failure rate tends to diff er for small molecules and biologics, the majority of development eff orts fail, with the rate generally falling between 60 and 90%.
