PhRMA calls for renewal of R&D tax credit

The Pharmaceutical Research and Manufacturers of America (PhRMA) claims that "renewing, strengthening and making permanent" the US federal R&D tax credit would "help America's pharmaceutical research companies sustain their world-leading development of new medicines for millions of patients."

The PhRMA's chief executive, Billy Tauzin, said: "at a time when it takes 10 to 15 years to research and develop one new drug at an average cost of $1.0 billion, it is important to have this key research incentive in place."

According to Mr Tauzin, a study by the National Association of Manufacturers found that more than three quarters of R&D tax credit funds are used for the salaries of researchers. The PhRMA chief executive concluded that, "with more than 400 biotechnology drugs in development - including 210 for cancer and 50 for infectious diseases - and billions of dollars committed to research, it is important to preserve the incentives that help companies sustain their innovation."