Research and development financing models for new biopharmaceuticals in the United States

Introduction

The enactment of the Inflation Reduction Act (IRA) and the growth of state Prescription Drug Affordability Boards have raised important questions about how to improve drug affordability without curbing biopharmaceutical innovation.¹ Although current policy discussions often center on the role of large manufacturers in drug development, understanding all entities’ involvement in biopharmaceutical research and development (R&D) is critical to evaluating policy impacts and designing more targeted policies across the market.² Prior studies have demonstrated that biotechnology companies and academic institutions were involved in nearly half of priority-reviewed therapeutics approved between 1998 and 2007.³ However, important gaps remain in understanding the role of other key contributors in the development and commercialization of new biopharmaceuticals.^4,5 We examined trends in R&D financing for new biopharmaceuticals approved by the US Food and Drug Administration (FDA) over the past decade.

Citation

Ji Y, Kang SY. Health Affairs Scholars. 2025 Oct 30;3(11):qxaf206. doi: 10.1093/haschl/qxaf206. eCollection 2025 Nov. PMID: 41234683