Measuring the return from pharmaceutical innovation 2017
The pharmaceutical industry continues to face an extremely challenging R&D environment and has yet to turn a corner in terms of its R&D value proposition. Despite this, our report presents an optimistic road ahead for R&D and business leaders, exploring the emerging technologies that have the potential to dramatically transform the productivity and efficiency by which drugs are discovered, developed and brought to patients.
The eighth annual pharmaceutical innovation study by the Deloitte Centre for Health Solutions looks at the state of R&D in the biopharma industry and estimates the return on investment that 12 large cap biopharma companies may expect to achieve. The report also includes an extension cohort of four mid-tier biopharma companies.
Key findings for top 12 biopharma
- R&D returns have declined to 3.2 per cent, down from 10.1 per cent in 2010
- It now costs these companies almost $2bn to bring a drug to market
- Projected peak sales per asset more than halved between 2010 and 2016 but have increased by 18% in 2017
- This year's uptick in costs and sales per asset is due to the drop in the number of assets in late-stage pipelines–from 189 in 2016 down to 159 in 2017.
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