Pharmaceutical and biotechnology companies spent $58.8 billion on R&D spending last year, an increase of $2.7 billion from 2006, according to figures released by PhRMA and Burrill & Co.
PhRMA member companies spent an estimated $44.5 billion on research last year, up from $43.4 billion in 2006. Non-PhRMA member companies spent an estimated $14.3 billion, up from $12.7 billion in 2006.
There are 2,700 medicines in development in the U.S. for 4,600 indications compared with only 2,000 drugs in development five years ago, the trade group said.
The growth in R&D spending proceeded at a slower rate than in previous years. PhRMA noted challenging economic conditions and sharp deceleration in drug spending affecting the industry.IMS Health recently reported that growth in the U.S. pharmaceutical market slowed to 3.8 percent in 2007, down from 8.3 percent during the prior year.