Proportion of total R&D expenditure by function in 2005 APRIL 2007 SOURCE: CMR INTERNATIONAL PERFORMANCE METRICS PROGRAM © THOMSON REUTERS Your use of these materials is subject to the terms and conditions hereof. Please read the disclaimer carefully before using these materials.

Proportion of total R&D expenditure by function in 2005 Chapter 3 R&D Functions Figure 3.1 Proportion of total R&D expenditure by function in 2005 Key message In 2005, the Clinical and Discovery functions together accounted for close to 60% of total R&D expenditure for 20 pharmaceutical companies. Methodology Presented is the proportion of R&D expenditure in 2005 allocated to different R&D functions calculated as an aggregate of the data provided by 20 companies (10 Major and 10 Mid and Other). The total R&D expenditure represented in the figure is US$ 33.79 billion. Key Definitions Discovery function: All activities conducted to identify targets, and active substances which would modify target activity for therapeutic use, to the stage where an active substance can be safely and practically tested in humans. This includes all activities from idea generation, basic research, synthesis and screening (including biological and pharmacological screening), ADME studies (absorption, distribution, metabolism and excretion) and any pre-clinical development work (including process and formulation research) that will be associated with producing an active substance to be tested in humans for the first time. Non-clinical safety evaluation function: All in vitro and in vivo (animals only) toxicological, safety and associated kinetic tests. CMC function: Chemistry, Manufacturing and Controls. All activities conducted to optimise, scale-up and validate the processes and technologies for transfer to manufacture and all QA, QC and CMC support activities (e.g. CMC project management including CMC contribution to project teams). This includes all Drug Substance R&D i.e. process research and process development, all Drug Product R&D i.e. formulation development and process development, clinical supplies. This includes all analytical work for Drug Substance R&D and Drug Product R&D. See also definitions for Clinical and Regulatory functions in Figure 3.2. CMR International Performance Metrics Programme / Source Industry R&D Investment Programme The proportion of total R&D expenditure by function presented in this figure is based on data from 20 companies (10 Major and 10 Mid and Other) Total R&D expenditure = US$ 33.79bn Major companies are defined as those spending ≥US$ 1.8 billion in 2005 on ethical pharmaceutical R&D. Mid and Other companies are defined as those spending <US$ 1.8 billion in 2005 on ethical pharmaceutical R&D. SOURCE: CMR INTERNATIONAL PERFORMANCE METRICS PROGRAM © THOMSON REUTERS

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