Expanding investment in R&D and late-stage trials: Late-stage trials were particularly expensive, but were also critical as they represented the last big hurdle before a drug could be approved by the FDA. With 11 late-stage"mega-site' trials expected to commence in 2006, management knew that successful outcomes were critical for MoGen's ability to maintain momentum behind its new drug development pipeline. The trials would likely cost $500 million. MoGen had also decided to diversify its product line by significantly increasing R&D to approximately $3 billion for 2006, which was an increase of 30% over 2005