Much has been written about the pharmaceutical industry’s R&D-productivity challenge during the past decade: the decline in new-drug approvals has raised discovery and development costs just as companies struggle to find new drugs to replace blockbusters that have lost (or will soon lose) their exclusivity. Yet by one important measure, the output of the pharmaceutical R&D process has accelerated significantly: the US Food and Drug Administration (FDA) approved 39 new drugs in 2012—the highest level in a decade.