The time taken to bring new medicines to market could be shortened by two thirds and costs slashed through the use of computer-generated virtual patients.

PricewaterhouseCoopers, the accountant, claims that the cost of bringing a drug to market, which can be up to $1 billion (£500 million), could be reduced by up to $125 million through the use of computer-generated cells and organs. When virtual patients are fully developed, they will be a representation of the human body that can be adjusted to simulate diseases.

PwC also says that the system of clinical trials could be simplified by allowing companies to sell medicines to a restricted number of patients based on less extensive trials, then extending their licence as more data becomes available.

Steve Arlington, global pharmaceuticals advisory leader at PwC, said: “We are not suggesting that drugs be trialled before they are ready but by 2020 we should be living in an environment where technology will allow doctors and patients to do this.”

Sanford C Bernstein, the wealth management group, estimates that UK drugs giant AstraZeneca could lose up to 40 per cent of its current revenues by 2015 and GlaxoSmithKline stands to lose up to 11 per cent if they do not get more new drugs to market.

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