Roche raises the bar on new drug programs

Anyone looking for a tough assessment of the world of drug development today should check out the Wall Street Journal's interview with Roche CEO Severin Schwan (photo). Schwan says that the economic crisis will only make insurers and other payers even more demanding regarding what they're willing to pay for. And he says Roche will pursue only those new medications that offer a significant improvement in efficacy.

The fate of anyone who doesn't understand the new reality, he says, is corporate failure. And Roche is boosting R&D spending as a percentage of income to avoid that fate.

"Those who fail to bring sufficient innovation will be squeezed out of this market," Schwan said. "No one is immune to this failure. That applies equally to small companies and big companies."

- read the interview in the Wall Street Journal

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