In 2012, domestic and foreign R&D spending by members of the Pharmaceutical Research and Manufacturers of America (PhRMA) declined for the second year in a row to $48,485 million, a 0.3% decrease. Domestic expenditures increased 1.2%, and spending abroad dropped 4.9% to account for 76% and 24% of PhRMA members’ R&D spending, respectively. As a percentage of sales, total R&D was 16.4%. Sales by PhRMA member companies in 2012 totaled $294,800 million, with foreign sales representing 40% of the total. By phase, Phase 3 represented 36% of PhRMA members’ spending in 2011. Preclinical/prehuman, Phase 2, Phase 4 and Phase 1 R&D accounted for 22%, 13%, 10% and 9% of spending, respectively. In 2011, there were 5,408 medicines in development worldwide, of which medicines in Phase 2 accounted for 43%, those in Phase 1 constituted 40% and those in Phase 3 made up 15%. In 2013, there are an estimated 3,400 drugs in development in the US.

Source: PhRMA