As R&D returns take a hit, some pharmas are ramping up spending
Dive
Brief:
• Amid intense scrutiny on pharmaceutical
innovation and drug value, the industry saw far fewer novel drugs approved by
the Food and Drug Administration in 2016 than in years past.
• Only 22 new molecular entities (NME) were
approved this year, down substantially from the two-decade high of 45 last
year.
• Adding to that poor showing, a new report
published earlier this month put the projected returns from pharma's late-stage
drug pipeline at a measly 3.7%. Taken together with the falling NME approvals,
the report raises questions about the efficiency and success of pharma R&D.
Dive Insight:
The report, compiled by the consulting and accounting firm Deloitte, paints a picture of an industry caught between rising R&D costs on
one hand and falling average projected peak sales on the other.
According to Deloitte, the cost to usher a drug from discovery all the
way through launch - an elusive and usually controversial figure - stabilized
at a little over $1.5 billion this year. At the same time, forecast sales per
asset have dropped steadily in recent years, leading to an erosion of the
projected returns from late-stage pipelines.
Pricing backlash, coupled with a broad array of treatment options in
many primary care areas, puts pharma under even more pressure to deliver
clinically meaningful innovations. With that context in mind, BioPharma Dive
has been collecting data to compare R&D spending as a percentage of product
sales at notable companies to their industry peers.
For details see: http://www.biopharmadive.com/news/as-rd-returns-take-a-hit-some-pharmas-are-ramping-up-spending/433063/
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