Funding of Pharmaceutical Innovation During and After the COVID-19 Pandemic

The coronavirus disease 2019 (COVID-19) pandemic has highlighted the available mechanisms for funding research, development, manufacturing, and distribution in the life sciences. The traditional innovation strategy started with scientific discovery supported by grants from governmental and philanthropic sources, followed by product commercialization supported by pharmaceutical industry revenues and capital investments. According to one estimate, governmental and philanthropic grants fund approximately one-third of the total investment in the life sciences (estimated total investment of $194.2 billion in 2018) and the life sciences industry funds the remainder.1 Prior to the onset of the COVID-19 pandemic, drug prices charged in the US had come under scrutiny due to the burden they place on public and private budgets. Congress and the Trump administration proposed drug pricing legislation far more restrictive than previous initiatives; however, the proposed legislation was still substantially more limited than what is used in other high-income countries.2 Criticism of the pharmaceutical industry was muted during the early stages of