Industry Innovation

Innovation & New Products Driving Industry Expansion

Clinical studies are a vital part of the life sciences company life cycle. Phase 2 and 3 trials in particular are a tipping point for companies as they determine the effectiveness of the drug/product being developed. Results from these studies help determine if a company will expand or contract, especially with startups.

Figure 15: Number of New Phase 2 & Phase 3 U.S. Clinical Trials

Source: ClinicalTrials.gov, CBRE Research.
Note: Includes all interventional studies (clinical trials) except those that are withdrawn, suspended or terminated. Includes trials by date first posted to database with a start date on or after 1/1/2012.

The Food & Drug Administration (FDA) approved 37 novel drugs in 2022, down from 50 in 2021 and the previous 10-year average of 43. As of the end of February 2023, seven new drugs have been approved, on par with last year’s approval rate at this time. Despite increasingly onerous regulations for drug approvals, the majority of the new drugs approved last year used one of the four expedited processes for FDA approval. While approvals are down, new drug applications are up.

Figure 16: Food & Drug Administration Novel Drug Approvals by Year

Source: U.S. Food & Drug Administration, 2022.