Clinical trial drug dropouts reach unsustainable levels, says Thomson Reuters repo

The pharmaceutical industry spent less on drug R&D last year than at any time in the last three years, according to data released today from the 2011 Pharmaceutical R&D Factbook compiled by CMR International, a Thomson Reuters business.

Overall expenditure on discovering and developing new medicines amounted to an estimated $68 billion last year, down nearly 3% on the $70 billion spent in both 2008 and 2009, according to the data release released yesterday. The fall reflects a growing disillusionment with poor returns on pharmaceutical R&D. Disappointing research productivity is arguably the biggest single factor behind the declining valuations of the sector over the past decade.

"For the first time, drug companies are reducing costs in their R&D organizations and I believe we will see that trend continue," said Hans Poulsen, head of life sciences consulting at Thomson Reuters.