A study recently published in the BMJ has found that in the past decade, 25% of the 248 new drugs approved by the FDA received late-stage public funding. This finding is in stark contrast to the commonly-held belief that late-stage funding is primarily through pharmaceutical companies, while public funding mainly supports early stage development.
Of the 248 new drugs approved by the FDA between 2008 and 2017, 62 (25%) are indicated to have received public funding during late-stage development. Of these, 48 were from in non-profit institutions, while an additional 14 were developed by spinoff companies. Additionally, new drugs that received late-stage public funding were significantly more likely to undergo an expedited FDA approval pathway.
This study shows the significant contribution of late-stage funding on drug development. To read the full article, click here.