A recent study in PLoS One by E. Ray Dorsey, et al, found that between 1995 and 2005, the money spent on biopharm and medical device research has increased hugely across the board, and by as much as 369% in at least one therapeutic area. We have not, however, seen a comparable rise in the number of drugs approved by the FDA. Although the authors readily admit that their conclusions are based on a “sample of convenience,” they ring true to those of us in the industry. Whether you think that new drugs cost $600M or $1.2B to bring to market doesn’t really matter – we have thrown ever more money at a constantly diminishing return.
The authors suggest that now the limiting factors are non-financial, and solutions include bringing people and ideas together in more productive ways, bringing down the cost of clinical trials (though they don’t explore what this would take), openly disseminating the results of negative trials, and increasing the flow of people and ideas between organizations.
These all point to the need to revise and harmonize our processes, break down the functional area silos, increase the intelligent standardization of data and processes, and develop approaches that are nimble, flexible and adaptable. We need greater transparency in regulatory discussions and decision-making, which will help us to interpret regulations better and stop being so ultra-conservative in our work. Most of all, we need to understand that breaking the work into ever smaller pieces and parsing them out to ever more internal and external groups guarantees that no one sees the full picture, and so no one can control it. All of these changes must happen not only within organizations, but across them as well, to result in the best possible solutions.
The current approach is both failing and unsustainable. Neither government nor the public will tolerate the current mix of risk, benefit and cost. Unless our clinical trials enterprise changes dramatically, we will find ourselves forced to lower the prices we charge while maintaining the current costs. That is not a future that we, as future patients, should support.
The referenced study is at http://www.plosone.org/article/info%3Adoi%2F10.1371%2Fjournal.pone.0007015
Photo: Dwarf ginseng, reputed to have calming medicinal properties. Taken at Sharon Hollow Nature Preserve, April 2007.
© 2009, Kit Howard