The Food and Drug Administration approved the lowest annual amount of new drugs since 2010, according to Reuters.
The FDA approved only 19 new drugs in the U.S. market, a figure well below the tally of 45 new products in 2015 and 41 in 2014. According to Deutsche Bank analysts, the final total for new approvals this year is expected to come in around 22.
Reuters reports the profitability of research and development for drug companies is declining as drug approvals are decreasing. Projected returns on investment in research and development for the top 10 pharma companies have fallen to 3.7% this year, below a high of 10.1% in 2010, according to Deloitte.
“As costs per product remain high, sales projections decline, and given it now takes the industry over 14 years to launch a drug, real questions should be raised about productivity and returns on innovation,” said Colin Terry, a director in Deloitte’s life sciences practice.