Thursday, 15 October 2015

How Companies Can Make the Most of Their Early Drug Development Stage

Background




















Companies large and small face enormous risks during the crucial early drug development stages. According to the Pharmaceutical Research and Manufacturers of America (PhRMA), major pharmaceutical and biotechnology companies spent $10.5 billion or 22% of total annual R&D costs on non-clinical research in 2011 — more than the total amount spent on Phase I and II activity combined.i While the failure rate tends to diff er for small molecules and biologics, the majority of development eff orts fail, with the rate generally falling between 60 and 90%. With the new technologies and services available to Sponsors, the traditional path to drug development is no longer the best solution. With the right planning and tools, the studies conducted in the preclinical and early clinical stages can lay a foundation that will reduce risk and maximize the investment in future stages.

Focus on De-Risking a Molecule: The Rise of Translational Medicine

Facing rising R&D costs and increasing pressure to appease investors, companies must discover early on if a potential drug is too risky to pursue. There are many risks in early drug development, which can be grouped into three main categories: safety, efficacy, and time to market. To mitigate the risk in the latter category, companies must move with insightful speed — performing the right studies to obtain the best data — to stay ahead of competitors. The knowledge that a potential drug carries too much risk can save millions, and it also builds trust with stakeholders who see that there are sound decision-making processes in place, and that resources are being carefully allocated. 

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