Sector News

Returns on pharmaceutical R&D improving as pipelines revive

December 11, 2014
Life sciences
(Reuters) – Drugmakers are finally getting more bang for their scientific buck, with the rate of return on pharmaceutical research and development (R&D) increasing for the first time since 2010.
 
Overall R&D returns have improved to 5.5 percent this year from 5.1 percent in 2013, reflecting a modest uptick in productivity in company labs, according to the latest annual survey of the industry by Deloitte released on Wednesday.
 
The global pharmaceuticals sector needs to replenish its medicine chest after a wave of patent expiries that peaked in 2012, and the numbers show that pipelines are getting fuller.
 
So far this year the U.S. Food and Drug Administration, which acts as gatekeeper to the world’s biggest market, has approved 35 new products, up from 27 in the whole of 2013 and close to the bumper 39 cleared in 2012, the agency’s website shows. (here)
 
There are significant variations between companies, however, with the largest firms having the greatest development costs for each new medicine and the lowest returns on R&D investment.
 
The most successful of the 12 leading drugmakers assessed in the survey had an R&D return of 11.7 percent in 2014, while the worst-performing saw a negative return of 0.7 percent.
 
“There are signs that returns from pharmaceutical R&D are turning a corner,” Julian Remnant, head of Deloitte’s European R&D advisory practice, said.
 
“However, we continue to see a relentless rise in the costs to develop a new medicine — this year to $1,401 million — with little change to the billions of dollars of value lost from products failing in the final stage of development.”
 
The companies analysed in the study were Pfizer, Roche, Novartis, Sanofi, GlaxoSmithKline, Johnson & Johnson, AstraZeneca , Merck & Co, Eli Lilly, Bristol-Myers Squibb, Takeda and Amgen.
 
Results for individual companies were not disclosed. 
 
BY BEN HIRSCHLER (Editing by Jane Merriman)

comments closed

Related News

October 17, 2021

Colorcon acquires a majority share in Ideal Cures Pvt. Ltd., India

Life sciences

Ideal Cures will operate as a fully independent entity within Colorcon. Their business complements Colorcon’s position in the Indian pharmaceutical market with a strong presence in the domestic generic sector comprised of long-standing customer relationships sustained by innovative and customized solutions.

October 17, 2021

Barriers exist, but participation urgent in breast cancer clinical trials: report

Life sciences

Across four new breast cancer treatments approved by the FDA last year, 2% to 9% of patients in clinical trials for the drugs were Black Americans and 0% to 9% were Hispanic, according to a new report from Breastcancer.org.

October 17, 2021

Danish consortium acquires part of Jernbanebyen to create one of the world’s healthiest urban villages

Life sciences

The southern section of Jernbanebyen in central Copenhagen has a new owner. The Baneby Consortium, comprising NREP, Novo Holdings and Industriens Pension, has bought the land from Freja Ejendomme. The ambition is to create a green, partly car-free environment that will also be one of the healthiest in the world. 

Send this to a friend