Reasons for Discontinuation of R&D Projects: Lead and Follow-on Indications

The reasons for discontinuation of R&D projects in the biopharmaceutical industry are often a matter of conjecture. In a recent presentation to the 25th Annual EuroMeeting of the Drug Information Association (DIA), OHE’s Jorge Mestre-Ferrandiz presented the results of OHE research into R&D discontinuations.

The reasons for discontinuation of R&D projects in the biopharmaceutical industry are often a matter of conjecture. In a recent presentation to the 25th Annual EuroMeeting of the Drug Information Association (DIA), OHE’s Jorge Mestre-Ferrandiz presented the results of OHE research into R&D discontinuations. Setting the issue in context, he noted that an uncertain and changing pricing and reimbursement environment and the high costs of R&D have nudged companies into focusing on higher risk therapeutic areas that potentially also hold greater reward. These factors also may make commercial reasons for discontinuing R&D on specific projects more important.

To gather information about reasons for discontinuation, OHE completed a small survey of four leading pharmaceutical companies for the years 2005-2009. The survey asked about discontinuations for technical/scientific and commercial reasons for both lead and follow-on indications. Results for lead indications were consistent with previous findings; to our knowledge, this is the first analysis of discontinuations of follow-on indications. Companies also were asked their opinions on what factors may be most important in determining discontinuations in future.

The results of the survey are summarised in the presentation below.

For additional information, please contact Jorge Mestre-Ferrandiz