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Bob Carey
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Brian Wesbury
Chief Economist
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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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