Myth #8: Pharmaceutical industry research drives innovation in new medicines.
Fact 1: Research federally funded by the National Institutes of Health (NIH) leads drug innovation.
Taxpayer-funded research, not research done by private drug companies, produces most innovative new drugs. The NIH does most of the basic research into understanding the mechanisms of disease in developing new drugs, which is the riskiest and most costly research.[1] [2] The drug industry’s research activities build upon that basic research. For example, 80 percent of the research that led to the development of Zantac, a best-selling ulcer drug, was sponsored by U.S. taxpayer or foreign academic institutions, as well as 77 percent of research in developing the antidepressant Prozac.[3] Forty-five of the 50 top-selling drugs from 1992 to 1997 received government funding for some phase of development, according to an investigation by the Boston Globe. In all, taxpayers spent at least $175 million helping to develop these 50 drugs.[4]Fact 2: Private sector research is driven by profits, not potential for innovation.
Drug companies invest most heavily in drugs—particularly “me-too” drugs—that profitably treat conditions prevalent in wealthy countries, rather than in research and development of innovative but unprofitable drugs for less common diseases or diseases that mainly affect poor populations.[5] Despite added incentives, such as tax credits, in the 1983 Orphan Drug Act, funding remains inadequate for research into “orphan drugs” that treat rare diseases and conditions affecting less than 200,000 people in America.[6]
It has been difficult to attract private funds for research into potential breakthrough treatments if there is no potential for large profits from patent monopolies.[7] For example, scientists recently discovered that a drug called dichloroacetate (DCA) may effectively halt the spread of cancer. However, drug companies have been uninterested in investing in further research because the drug is not patented and therefore could be produced as an inexpensive generic drug by multiple companies.Fact 3: Drug studies sponsored by pharmaceutical companies are more likely to report positive outcomes.
Clinical trials to study the safety and efficacy of new drugs that are funded by drug companies are more likely to show favorable results than similar studies conducted by independent, non-profit entities. Recently, researchers found that 84 percent of breast cancer treatment studies funded by drug companies were positive, compared to only 54 percent of studies with other funding sources.[8] Industry-sponsored studies were also less likely to test the drug’s effectiveness against a comparison group.
[ 1 ]“Rx R&D Myths: The Case Against The Drug Industry’s R&D ‘Scare Card,’” Public Citizen, July 23, 2001. (http://www.citizen.org/documents/ACFDC.PDF)
[ 2 ]In 1999, the National Institutes of Health (NIH) provided $17.8 billion for research, and the major proportion was expended for basic research; the top 10 pharmaceutical companies spent $22.7 billion, primarily on clinical research. (DeAngelis CD, “Conflict of Interest and the Public Trust,” JAMA 284(17), November 1, 2000).
[ 3 ]“Rx R&D Myths: The Case Against The Drug Industry’s R&D ‘Scare Card,’” Public Citizen, July 23, 2001. (http://www.citizen.org/documents/ACFDC.PDF)
[ 4 ]“Rx R&D Myths: The Case Against The Drug Industry’s R&D ‘Scare Card,’” Public Citizen, July 23, 2001. (http://www.citizen.org/documents/ACFDC.PDF)
[ 5 ]“Fatal Imbalance: The Crisis in Research and Development for Drugs for Neglected Diseases,” Medecins Sans Frontieres (Doctors Without Borders), September 2001. (http://www.msf.org/msfinternational/invoke.cfm?objectid=032387D3-7D09-49E3-99FC231DBE03F7B7&component=toolkit.report&method=full_html)
[ 6 ]“An Innovative Drug Industry? Well, No,” Washington Post, November 16, 2003. (http://www.washingtonpost.com/ac2/wp-dyn/A43257-2003Nov14)
[ 7 ]“New drug to fight cancer may get the cold shoulder,” Chicago Tribune, February 27, 2007. (http://www.chicagotribune.com/features/health/chi-0702270303feb27,1,3452583.story)
[ 8 ]“Industry-Funded Breast Cancer Trials Show More Positive Results,” Washington Post, February 26, 2007. (http://www.washingtonpost.com/wp-dyn/content/article/2007/02/26/AR2007022600728.html)