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# Research Criteria for PhRMA Membership
- URL: https://www.fdaweb.com/research-criteria-for-phrma-membership/
- Published: 2017-05-10T12:00:00.000Z
- Updated: 2026-09-14T22:22:49.000Z
- Author: David McFarland
- Tags: Drugs, #legacy-id-D5138655

The Pharmaceutical Research and Manufacturers Association of America (PhRMA) says that biopharmaceutical companies will now have to meet new research and development requirements to be eligible to join the association. The trade group is positioning this change as a commitment to “doing the time-intensive, scientifically sound research it takes to bring bold new advances in treatments and cures to patients.”

A PhRMA [news release](http://www.phrma.org/press-release/phrma-board-of-directors-establishes-new-membership-criteria?ref=fdaweb.com) says that following a comprehensive review of its membership criteria to ensure that it represents companies that are dedicated to researching and developing new, cutting-edge therapies for patients, the PhRMA board voted to eliminate the “associate” category of membership and to require companies to meet these criteria to be eligible to join: 

- a three-year average global research-and-development to global sales ratio of 10% or greater, and
- a three-year average global research-and-development spending of at least $200 million per year.

The new criteria are effective immediately. The 15 companies that were associate members are no longer members, PhRMA says, although they may apply for full membership if they are eligible. Also, seven existing members are no longer eligible because they don’t meet the new criteria. PhRMA says that companies may reapply for membership as they become eligible.

The association reports that on average its members invest 20% of revenues in research and development and that the biopharmaceutical sector as a whole accounts for 17% of all research and development funded by U.S. businesses.