Biotechnology used in 25% of drug development

Despite faltering investor confidence, around a quarter of all drug development is now biotech-based, according to data analysed by Pharmaprojects, the database tracking pharmaceutical development. This is especially remarkable considering biotech's relatively low success rate compared with other areas of pharmaceutical r&d, says Pharmaprojects and its sister publication, R&D Time-Lines.

Six years ago, biotech accounted for just 15% of drugs in r&d. Over the same period, the total number of drugs in development has risen by 20% from 5,329 to 6,406, while the number of biotech drugs in research and development has almost doubled from 799 in 1996 to 1,573 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 20 years, says Pharmaprojects. A biotech drug entering development historically has had only a 7% chance of reaching the market, compared with 33.3% for novel drug formulations and 13% for alimentary/metabolic drugs. Only anticancer drugs, with a success rate of 4.6%, represent a more risky prospect.

The number of biotech drugs successfully launched so far stands at just 165, and biotech company share prices are falling and most funding is coming from private rather than institutional sources. 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, Pharmaprojects warns.