The pharmaceutical industry faces soaring costs and lengthy timelines in bringing new drugs to market, with expenses doubling roughly every nine years since the 1950s, according to MIT Technology Review. Developing a single drug takes on average 10 to 15 years and costs between $1 billion and $2.5 billion, with failure rates exceeding 90%.
Paul Belcher, director of protein research strategy at Cytiva, highlighted that the clinical phase is the most expensive stage of drug discovery, and reducing risks during this phase can significantly lower overall costs. As a result, artificial intelligence is increasingly being deployed to streamline drug development, aiming to cut both time and failure rates.
This trend is particularly relevant to Japanese markets where pharmaceutical innovation and cost efficiency are critical, as the country seeks to maintain its leadership in healthcare technology while managing rising medical expenses.