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Bob Carey
Chief Market Strategist
Brian Wesbury
Chief Economist
Investment Insights
Factoid of the Day Monday, April 27, 2015
In 2014, the Pharmaceutical Research and Manufacturers of America’s (PhRMA) member companies invested an estimated $51.2 billion in the research and development (R&D) of new innovative treatments and cures, according to its own release. The $51.2 billion represents the majority of all U.S. public and private biopharmaceutical R&D spending. PhRMA estimates that biopharmaceutical companies, on average, invest as much as six times more in R&D, relative to their sales, than the average U.S. manufacturing firm. In 2014, PhRMA member companies invested nearly 24% of domestic sales into R&D. Only 12% of all drug candidates that enter clinical testing get approved by the U.S. Food and Drug Administration.
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