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11 May 2017Americas

PhRMA cuts membership, increases R&D requirements

The Pharmaceutical Research and Manufacturers of America (PhRMA) has cut 22 members based on a new set of membership criteria it introduced on Tuesday, May 9.

PhRMA, which represents US biopharmaceutical research companies, introduced criteria which require an increased amount spent on research and development (R&D) and eliminated its associate category after a review by the board.

Members will now be required to invest at least $200 million per year and 10% or more of global sales (based on a three-year average) into R&D.

Seven existing members did not meet these criteria.

With the elimination of its associate membership category, 15 more companies are no longer members.

The associate companies may apply for full membership, while the companies that were excluded based on the new criteria can reapply when they are eligible.

Joaquin Duato, PhRMA board chairman and worldwide chairman, pharmaceuticals, Johnson & Johnson, said: “By putting in place new membership criteria, the board is sending a clear message that being a member of PhRMA means being committed to doing the time-intensive, scientifically sound research it takes to bring bold new advances in treatments and cures to patients.”

Most PhRMA member companies invest significantly more in R&D than required by the new criteria, according to the association.

On average, PhRMA members invest 20% of their revenue in R&D, it added.

Stephen J Ubl, president and CEO of PhRMA, added: “We believe our association is best positioned to represent companies that are swinging for the fences and making the long-term investments needed to tackle the biggest challenges facing patients.”

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13 August 2018   Members of the Pharmaceutical Research and Manufacturers of America last year obtained the highest-ever level of investment for the industry group, recording $71.4 billion of funding in research and development.

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13 August 2018   Members of the Pharmaceutical Research and Manufacturers of America last year obtained the highest-ever level of investment for the industry group, recording $71.4 billion of funding in research and development.