New figures show fall in UK pharma R&D

New figures released by the Association of the British Pharmaceutical Industry show a severe cut in capital expenditure on R&D by UK-based drug firms of 13.5% from 2003 to 2004. Since a peak of L532.0 million ($927.0 million) in 2000, capital investment in R&D has fallen over 20%. The decline was anticipated by an ABPI statement last month (Marketletter, January 30) warning of problems facing UK drug research facilities.

Though less dramatic, the ABPI also sees grounds for concern in the 2% fall - in real terms - of overall R&D funding for new medications.

Richard Barker, the ABPI's director general, commented on the decline saying: "we are looking at a trend of declining investment in real terms." He added: "in an era where there is global competition for the industry's research base, the UK must not follow the paths of so many other European nations in constructing barriers to innovation, whether through over-regulation or through concentration on the price of medicines rather than their [medical] value."