BIOTECH MARCHES ON DESPITE LOW SUCCESS RATES AND FALTERING INVESTMENT

Despite faltering investor confidence, development of biotechnology products has surged to the point where one quarter of all drug development is now biotech-based.

Richmond, UK 10 June 2002

Despite faltering investor confidence, development of biotechnology products has surged to the point where one quarter of all drug development is now biotech-based. This is especially remarkable considering that biotech has one of the lowest success rates of any area of pharmaceutical R&D, according to data analysed from Pharmaprojects and its sister publication, R&D Time-Lines.

Whereas six years ago biotech accounted for just 15% of drugs in R&D, this has risen steadily to the 2002 figure of 25%. Over the same period, the total number of drugs in R&D has risen by 20% from 5329 to 6406, and the actual number of biotech drugs under development has almost doubled (799 in 1996 to 1573 in 2002).

This huge increase has occurred even though biotech drugs have recorded one of the lowest success rates of any class of drugs over the last twenty years. A biotech drug entering development historically has had only a 7% chance of reaching the market. This compares most unfavourably with classes such as novel drug formulations (33.3%) and alimentary/metabolic drugs (13%). Only anticancer drugs, with a success rate of 4.6%, represent a more risky prospect.

This news comes at a time when the investment community continues to be nervous about biotech, with share prices falling and most funding coming from private rather than institutional sources. With the number of biotech drugs successfully launched thus far standing at just 165, only conversion of more of the record number of candidates in development into marketed drugs will bring about long-term investor confidence in this exciting industry.

About Pharmaprojects

Pharmaprojects, the leading database tracking pharmaceutical development from early preclinical study through to launch or discontinuation, has 22 years experience as an information provider to the industry. Pharmaprojects uses a fully-searchable application that allows you to pinpoint the specific information you are looking for whether it be comprehensive drug profiles, a competitors pipeline or licensing opportunities. Updated monthly, the data is also available weekly via online hosts PJB Publications, Dialog and Datastar, Ovid Technologies and STN International. The Pharmaprojects team is available for comment or to provide presentations on trends in pharmaceutical R&D; for details, please contact Ian Lloyd, Managing Editor.

About R&D Time-Lines

R&D Time-Lines is based on Pharmaprojects data and provides analysis of the % success rates and time spent in R&D by company, therapy and pharmacology. The data has been collected since 1980 and for more detailed analysis can be segmented into five year groups. Other features include key financial data comprising sales estimates (peak and 2004) and predicted launch dates for many late-stage drugs.

About PJB Publications

PJB Publications, established in 1976, is an independent publishing company of business-to-business information. Specialist areas of knowledge include pharmaceuticals on which it publishes the twice-weekly newsletter Scrip, medical devices and diagnostics, biotechnology, veterinary, crop protection, agribusiness, clinical research and regulatory affairs.