Investing in Research and Development

In 2008, Abbott invested US$2.7 billion in research and development in 10 dedicated centres worldwide to build our diverse pipeline.  Abbott employs over 7,000 scientists and researchers worldwide and our scientific excellence has been recognised with the Wall Street Journal Technology Innovation Award, Science Magazine’s 2007 “Top Employers” and one of the top 10 companies on The Scientist Magazine’s 2009 “Best Places to Work in Industry” list.

In Australia and New Zealand, Abbott has increased involvement in clinical research, with a number of local institutions now participating in global trials of new Abbott products.  Abbott Australia and New Zealand invests over $10 million in clinical research in the areas of immunology, oncology, metabolism, vascular disease and infectious disease.  With the support of the local clinical team, over 100 sites and over 500 patients are involved in Abbott clinical trials in Australia and New Zealand.

Researching, developing and testing new products is a costly and time-consuming process. Industry-wide, only about one in 1,000 pharmaceutical compounds makes it from the laboratory into clinical trials, and only one in 12 of those clinical trials will emerge as a fully approved new medicine.

Our investment decisions are based on three principal factors:

• Unmet medical needs – where a disease is either untreated or where existing treatments are inadequate in terms of safety, efficacy or ease of use;
• Our areas of scientific expertise; and
• Commercial potential.

Abbott balances its investments between developing high-risk, breakthrough products and less risky, yet, still vitally important refinements and improvements to existing products. Achieving this balance is crucial to our continued economic sustainability and to our ongoing investment in research and development.

Our Contribution to Addressing the Global Disease Burden

The global disease burden changes constantly – chronic diseases grow more prevalent, while infectious diseases and cancers remain major challenges. Stakeholders want to know how Abbott can address the global disease burden, while also tailoring our research efforts to the needs of developing countries and targeting what are known as neglected diseases.

Abbott’s areas of expertise cover many of the world’s most serious diseases, such as cardiovascular diseases, cancer, HIV/AIDS and diabetes. This work also includes specific programs to help address the developing world’s health care needs. For example:

• Heat-stable formulations of our lopinavir/ritonavir designated for paediatric HIV/AIDS patients, which is especially important in developing countries. Almost 90 percent of children with HIV/AIDS live in sub-Saharan Africa according to the Global Fund.
• Diagnostic equipment and testing methods that are geared to developing country needs, such as rapid diagnosis and monitoring of infectious diseases.
• Hepatitis C: Abbott is working to develop treatments for hepatitis C, which is believed to affect approximately three percent of the world’s population.
• Nutrition products that are more affordable and better suited to local preferences.

While Abbott does not have specific expertise in neglected diseases, we contribute our scientific expertise and donate compounds that can help in the development of treatments. For example, in 2006, we partnered with the Institute for OneWorld Health to advance its program aimed at developing a new malaria treatment. In addition, we’ve shared compounds with not-for-profit research organizations such as the TB Alliance. In 2009, we will begin systematically exploring ways to match our scientific knowledge to current treatment and development needs for neglected diseases.