Home / Healthcare / New drug approvals fall to six-year low in 2016

New drug approvals fall to six-year low in 2016


Comments / 439 Views / Wednesday, 4 January 2017 00:00


36 

  • 22 novel drugs approved by FDA in 2016 vs 45 in 2015
  • Europe backs 81 new products vs 93, including generics
  • More drugs knocked back by regulators than in 2014-15

LONDON (Reuters): Last year turned out to be a disappointing one for new drug approvals with the US Food and Drug Administration clearing just 22 new medicines for sale, the lowest number since 2010 and sharply down on 2015’s tally of 45.

Across the Atlantic, the European Medicines Agency recommended 81 new prescription products against a 2015 total of 93. Unlike the FDA, the EMA includes generic drugs in its list.

The slowdown suggests the pharmaceuticals industry may be returning to more normal productivity levels after a spike in approvals in 2014 and 2015, when the haul of new drugs reaching the market hit a 19-year high.

Several factors led to the fall in the approval rate in 2016, John Jenkins, the FDA’s director of the office of new drugs, told a conference last month.

Notably, five new drugs that had been scheduled for approval in 2016 ended up winning an early green light at the end of 2015. There was also a decline in drugs being filed for approval and the FDA rejected or delayed more applications in 2016 than in the previous two years.

Some of the delayed drugs may yet go on to win approval in 2017, including Roche’s multiple sclerosis treatment Ocrevus and Sanofi and Regeneron’s sarilumab for rheumatoid arthritis.

Most industry executives remain upbeat about the hunt for new medicines, given recent advances in fighting cancer and an improved understanding of the genetic basis of other diseases, which has resulted in full development pipelines at many firms.

But it remains challenging to get new drugs through the approval process and to secure a decent financial return once they are launched, given resistance from healthcare insurers and governments to the rising cost of medical treatment.

According to consultancy Deloitte, returns on research and development investment at the top 12 pharmaceutical companies fell to just 3.7% in 2016 from a high of 10.1% in 2010.

Increasing political pressure over the high prices of many modern medicines is a growing challenge at a time when biotech and pharma companies are developing more drugs targeted at niche patient populations.

The issue is exemplified by the last drug to win FDA approval in 2016. Spinraza, from Biogen and Ionis Pharmaceuticals, is the first medicine to treat patients with spinal muscular atrophy, a rare and often fatal genetic disease. It comes at a huge cost of $ 125,000 per dose.

That price, implying a total cost of $ 625,000 to $ 750,000 for patients in the first year and $ 375,000 in subsequent years, is likely to invite “a storm of criticism, up to and including Presidential tweets”, according to Leerink analysts.

President-elect Donald Trump has vowed to bring down drug prices.

 


Share This Article


COMMENTS

Today's Columnists

Plastic bags: So easy to substitute and so difficult to get rid of

30 March 2017

  Lately very encouraging news was published related to an increased number of countries and cities banning non-reusable plastic bags. Amongst them, Kenya and Delhi.  Currently Botswana, Eritrea, Kenya, Mauritania, Mor...


The political hypocrisy of President Maithripala Sirisena: Muslim IDPs tossed out

29 March 2017

President Maithripala Sirisena A Tamil saying goes thus: “Stealing the neighbour’s chicken for the mother’s almsgiving.”  President Sirisena in his total betrayal of the Muslims did just that with on...


The new technology revolution

29 March 2017

Japan, China, Singapore, Thailand and even India are automating industry at speed   By C. R. de Silva Current global developments Revolutionary changes in technology, following on the heels of globalisation, are c...


People management in a rapidly transforming business world

29 March 2017

It is well known that businesses have to constantly evolve to keep pace with the changes around them. The rise of digital technologies is disrupting the way we work and live. Technologies that didn’t exist till about a decade ago have now be...


Columnists More