R&D investments in new medicines by PhRMA's biotechnology and pharmaceutical research member companies reached a record $39.4 billion in 2005 (up from $37 billion in 2004), according to PhRMA's Annual Member Survey.

The increased investment in biomedical R&D in 2005 continues 25 years of strong growth in R&D investments by America's research-based pharmaceutical companies - up from $2 billion in 1980. When factored together, the total investments in biotechnology and pharmaceutical R&D by both PhRMA member companies and non-PhRMA members reached a record $51.3 billion in 2005, according to a Burrill & Company analysis for PhRMA.

"America's research-based biopharmaceutical companies once again lead the world in investing in the hunt for new cures and treatments. It is the most research-intensive industry in America, and we are proud of the longstanding commitment to meeting patient needs shown by PhRMA member companies' R&D investments - investments that far exceed those of the international pharmaceutical industry and the National Institutes of Health," said PhRMA president and CEO, Billy Tauzin in a press statement.

"We are working everyday to save lives, end disease and relieve pain. The R&D investment made by PhRMA member companies is one reason that Americans today live longer, healthier and more productive lives. In 2005 there were more than 2000 compounds under development by pharmaceutical companies," the release added.

The steady growth of R&D investment continues to support important advances in better medicines and new treatments for patients made by research scientists and physicians. The over $39.4 billion invested in R&D in 2005 represents a 6.5% increase over 2004 expenditures. In 2005, PhRMA member companies invested a record 19.2 per cent of domestic sales on US R&D.