Company Size Won’t Predict Success

New analysis finds that the size of a company is not tied to getting a drug to market.

kerry grens
| 2 min read

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WIKIMEDIA, LADYOFPROCRASTINATIONThe size of a drug maker—in particular, how much money it spends on research and development—is no predictor of whether a particular molecule will succeed in making it out of the laboratory and into the pharmacy. That's according to a new analysis of 842 molecules published this month (October 18) in Nature Reviews Drug Discovery. What else doesn't matter? The location of the company, the therapeutic area—be it musculoskeletal, respiratory, and so on—nor the type of drug target—such as an ion channel or an enzyme.

What does appear to matter, according to the authors, are “scientific acumen or good judgment.” Proxies of these qualities, which they found to be linked with drug development success, were the number of patents, publications, and citations per dollar spent on R&D. In addition, the experience of leaders at the company, a company's focus on the return on investment, and a willingness to terminate failing projects early all hailed success for drug development firms.

That last company quality—the willingness to cut one's losses—had the strongest correlation to successfully getting drug approval. “A major obstacle that we see to achieving greater R&D productivity is the likelihood that many low-viability compounds are knowingly being progressed to advanced phases of development,” the authors, who are all from the ...

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  • kerry grens

    Kerry Grens

    Kerry served as The Scientist’s news director until 2021. Before joining The Scientist in 2013, she was a stringer for Reuters Health, the senior health and science reporter at WHYY in Philadelphia, and the health and science reporter at New Hampshire Public Radio. Kerry got her start in journalism as a AAAS Mass Media fellow at KUNC in Colorado. She has a master’s in biological sciences from Stanford University and a biology degree from Loyola University Chicago.

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