Developing a new medicine or vaccine is a complex, costly, and lengthy process. On average, only 0.01% or 0.02% of compounds synthesized in laboratories will make it to market. Only 10% of compounds that enter clinical development progress to market entry. Innovative pharmaceutical companies make substantial investments in high-risk R&D, with clinical trials accounting for about half of their R&D costs.

Intellectual property rights (IPRs) are fundamental to protect innovations and to incentivize innovators to embark on the long and risky journey of pharmaceutical R&D. Generics and biosimilars, which are widely used globally, could simply not be produced without IPRs that encourage breakthrough innovations in the first place.

The global pipeline for medicines and vaccines is comprised of thousands of compounds at different stages of development, tackling multiple disease areas.

Over the years, pharmaceutical advances have transformed diseases once considered deadly into manageable or even curable conditions today. Recent pharmaceutical innovation has led to breakthroughs in Alzheimer’s disease, obesity management, cancer treatment, curative and disease-modifying gene therapy, gene editing, and vaccine development.

Looking ahead, the rise of Artificial Intelligence (AI) and Machine Learning (ML), as well as advancements in biotherapeutic medicines, gene editing, and precision medicine, hold great promise to revolutionize healthcare.

Coordination from the global stakeholder community is fundamental to tackle these complex issues. Medicines and vaccines are key components of healthcare systems, and offer value from health, economic, and societal perspectives. Advances in pharmaceutical innovation have allowed people to live longer lives, revolutionized the management of several diseases, and enabled people to actively participate in society and contribute to economic growth.

Despite this key role of medicines and vaccines for societies, access to medicines and quality healthcare is poor for many people around the world and especially in LMICs, primarily due to local factors. Recognizing this, pharmaceutical companies engage in various initiatives to strengthen health systems, improve access to medicines, and support the achievement of the Sustainable Development Goals (SDGs).

In addition to its contribution to innovation and improvements in individuals’ quality of life, the activities of the pharmaceutical industry positively impact the global economy, having direct, indirect, and induced effects on the global gross domestic product (GDP).

The industry also contributes to sustaining the global workforce and employs many people in R&D, which require specialized training, technical skills, and education.