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Drug sector must change

14th June 2007

A new report into the pharmaceutical industry has warned that companies need to shift more investment into research and link their drug prices more tightly to efficacy.

Consultancy firm PwC argues in its document “Pharma 2020: the vision� that the current pharmaceutical industry business model is economically unsustainable and “operationally incapable of acting quickly enough to produce the types of innovative treatments demanded by global markets.�

PwC stress that improving research and development productivity is the most important challenge, but points out that research and development by leading companies has only risen from 15% to 17.1% in a decade.

 

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