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News

Top 30 pharma companies spent $112 billion on research and development in 2013, says report

GlobalData Healthcare : 29 December, 2014  (Technical Article)
The world’s leading 30 pharmaceutical companies spent a combined $112 billion on research and development (R&D) in 2013, an increase of $723 million over the previous year, according to research and consulting firm GlobalData.

The company’s report states that Roche was the R&D spending leader, outlaying nearly $10 billion in 2013. Meanwhile, Novartis and Johnson & Johnson (J&J) increased their R&D spend the most between 2012 and 2013, with each adding around $500 million to their respective clinics. Novartis’ R&D spending grew by 5.6% to $9.8 billion, and J&J spent $8.2 billion, which was up by 6.8% from 2012.


 


Adam Dion, an Industry Analyst with GlobalData, says that the increase in R&D spending was partly due to drug makers advancing their pipeline programs into later-stage clinical trials, which are generally more costly. Dion comments: “Roche’s R&D spending was bolstered by continued investments in its oncology and neuroscience therapeutic areas, such as the company’s investigational anti-PD-L1 antibody targeting lung cancer, and the advancement of its programs for Alzheimer’s disease. Novartis’ R&D spending grew largely due to its Alcon subsidiary, which allocated additional resources to R&D to develop new eye care products. The company’s Vaccine and Diagnostics products business invested heavily to bring to market its meningitis B vaccine, Bexsero.”


 


Despite the sector increase in R&D spending, a number of large pharmaceutical firms pulled back on clinical investment in 2013. The analyst explains: “In efforts to improve profit margins, cost-cutting still remains a strategic necessity for some players. Many companies reduced their workforces to help stabilize profits in the aftermath of patent losses. Pfizer shaved over $1.2 billion in R&D spend after losing market exclusivity on Lipitor and Caduet, while Merck continued with its multi-year restructuring program, cutting over $600 million from its clinical operations in 2013 after its respiratory therapy Singular saw its patent lapse.”


 



This report provides analysis of the key drivers and trends shaping the global pharmaceutical market, including drivers of financial growth and research and development spending, US Food and Drug Administration approvals, generic erosion, corporate strategy, orphan drugs and asset value creation.


 


This report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts.



 



 


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