PhRMA Increases R&D Criteria for Member Companies

May 10, 2017

More stringent R&D investment requirements for PhRMA membership reduces the association ranks by 22 associate and member companies.

The Pharmaceutical Research and Manufacturers of America (PhRMA) has revised its membership criteria, increasing research and development requirements for eligible member companies. The board of directors of the association announced the immediate change in membership definitions in an announcement on May 9, 2017.

The board eliminated the associate membership category and now requires eligible members to have a three-year average global R&D to global sales ratio of 10% or greater; and aa three-year average global R&D spending of at least $200 million per year. Following the announcement, the association’s website listed 37 member companies.

Under the new policies, 15 associate member companies and seven full member companies are no longer eligible for membership; however, the companies can reapply for membership when they meet the criteria, according to an association statement.

“By putting in place new membership criteria, the board is sending a clear message that being a member of PhRMA means being committed to doing the time-intensive, scientifically sound research it takes to bring bold new advances in treatments and cures to patients,” said Joaquin Duato, PhRMA board chairman and worldwide chairman, pharmaceuticals, Johnson & Johnson in a PhRMA statement.

Source: Pharmaceutical Research and Manufacturers of America (PhRMA)