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Research and Development in the Pharmaceutical Industry

APRIL | 2021 Research and Development in the Pharmaceutical IndustryAt a GlanceThis report examines Research and Development (R&D) by the Pharmaceutical on R&D and Its Results. Spending on R&D and the introduction of new drugs have both increased in the past two decades. In 2019, the Pharmaceutical Industry spent $83 billion dollars on R&D. Adjusted for inflation, that amount is about 10 times what the Industry spent per year in the 1980s. Between 2010 and 2019, the number of new drugs approved for sale increased by 60 percent compared with the previous decade, with a peak of 59 new drugs approved in Influencing R&D Spending.

Trends in R&D Spending and New Drug Development 2 R&D Spending 2 BOX 1. Large and Small Drug Companies and the “Make or Buy” Decision 4 New Drug Development 5 Factors That Influence R&D Spending 9 Anticipated Revenues 9 BOX 2. Federal Funding to Support the Development of a COVID-19 Vaccine 10 BOX 3.

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