Euro biopharma out of R&D ideas

R&D out of ideas

Investigational therapy rights | Drug use in the EUA new report has warned that existing problems faced by European biopharmaceutical companies in gaining access to funding have only been made worse by the economic crisis. As such, suggests the study, this could over time force drug companies to give up their R&D activities.

The study, which has been jointly produced by the European Commission's Directorate General for Enterprise and Industry and the Danish Technological Institute, has warned that such a loss would have disastrous implications for innovation, economic growth and employment within the European pharmaceutical industry.

Crisis

In addition, while the report focuses on the problems currently facing small and medium-sized enterprises (SMEs) and not Big Pharma, it does also admit that financing for biopharmaceutical drug development is a complex matter that goes far beyond having access to sufficient funding.

According to the report's authors, some observers even claim that having too much capital in the market for funding drug development could very easily become a "waste of money." The study highlights this on the assumption that many drug candidates with insufficient market potential would be funded, and this would drain the financial market for capital for other and more promising drug candidates.

"Creative destruction"

Further to this, while the authors of the report conclude that an increased capital supply could meet some of the immediate funding problems in the sector, they also reference an element of "creative destruction" that needs to be considered when deciding how to support the industry.

As such, the Pharma Times reports how the authors make a number of key recommendations to restore stability to the sector, including identifying and disseminating best practice in technology transfer and commercialisation. They also suggest establishing a European Biopharmaceutical Innovation Fund that could increase availability and access to venture capital and expertise in investing in the sector.

Related Articles:

Drug use in the EU | Investigational therapy rights

Like this article? Get the RSS feed: