Pharma Facts
The cost of medicines
- The average cost of developing one medicine is $1.2 billion. This amount is up from $318 million in 1987 and $138 million in 1975.
- Just 3 out of 10 new medicines produce revenues that match or exceed average research and development costs.
- Only 1 in 5000 chemical compounds discovered will ever be approved for use.
- Even after many years of careful-and expensive-research, about 10 to 15 percent of potential new drugs are rejected.
The value of treatment
Between 50-60% of cancer survival increases are attributable to new medicines.
- Since the advent of new medicines in 1995, there has been a 70% decrease in the death rate from AIDS.
- For every $1 spent on medicines, an estimated $4.44 is saved in hospital costs.
- In 1921, 19% of deaths in Australia were due to infection and parasitic diseases. According to the Australian Bureau of Statistics, after nearly a century of immunisation and vaccinations - coupled with education and public health programs - this figure is now below 1%.
Research & Development
The development of medicines is a complex and rigorous process often taking between 10 and 15 years. The assessment of safety and benefits occurs in each step.
- For every 250 compounds that enter preclinical testing, only five make it into clinical trials.
- Clinical trials are becoming more rigorous and extensive. The time required to complete the clinical phase rose from an average of 3.1 years in the 1960s to 8.6 years in the 1990s.
- There are currently more than 1,000 medicines in development.
Community investment
- In 2003 pharmaceutical companies globally spent $38 billion on research and development of new medicines. This is nearly five times 1990 levels.
- Each year, the Australian pharmaceutical industry invests $520 million in Australian scientific research and development to create new medicines.
- In the last decade alone more than 300 new medicines have been introduced to Australia.
