Medical innovation could be the latest casualty of the global economic crisis, according to Professor David Wield, Director of the Economic and Social Research Council’s (ESRC) Edinburgh-based Innogen Centre. He warns that investment into research for new drugs – which globally runs into the billions – is now seriously at threat as investors shy away.
Is this prediction alarmist? Let’s hope so, since continued medical innovation is essential to the health and welfare of people around the world.
New Medicines Threatened By Credit Crunch
The global financial crisis could seriously delay the discovery and production of many new life-saving medicines, warns a major international conference today.
Investment into research for new drugs – which globally runs into the billions – is now seriously at threat as former investors in the drug companies shy away as a result of the economic meltdown.
Professor David Wield, Director of the Economic and Social Research Council’s (ESRC) Edinburgh-based Innogen Centre, and chair of the ‘Genomics and Society: Reinventing Life?’ conference, delivered a stark warning prior to the gathering of over 200 experts at conference in London.
Professor Wield said: “Investing in biotech companies is now seen as risk taking, and will not be for the timid. What will happen to investment in biotech research if finance cannot even be found for relatively everyday expenses which are increasingly becoming more of a struggle?
“Drug discovery depends on long-term finance with high risk of failure – and lots of it. Financing of biotechnology companies hit $50bn in 2007. And overall, these biotechs only made profits for the very first time last year, amounting to $1bn on revenues of $59bn.”
According to Professor Wield, in addition to the impact on the basic research performed at biotechnology companies, development of medicines by pharmaceutical companies has also been hit by the credit crunch.
In recognition of the significant long term and immediate challenges faced by the pharmaceutical sector the UK Research Councils are working to help underpin future development of the sector for example to find new ways of enabling effective drug trials that enjoy public confidence; and building new research partnership with the sector.
Tags: economic crisis, innovation
