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FOCUS 18
By CHRIS STIRLING
GROWING THE PIPELINE, GROWING THE BOTTOM LINE
SHIFTS IN PHARMACEUTICAL R&D INNOVATION A
s spending on pharmaceutical research and development (R&D) continues to soar, executives, shareholders and analysts alike are entitled to ask: what value are we getting for our investment?
The pharma sector invests more money in research than any other
industry, with fi ve of the world’s 10 highest R&D budgets belonging to drug companies1
Yet in the same time period, the estimated cost of bringing a new chemical or biological product to market has more than trebled from US$451 million to US$1.5 bn3
. Meanwhile, the average number of annual US Food and
1EU R&D Scoreboard, The 2013 EU industrial R&D investment scoreboard, Brussels: European Commission, Joint Research Centre, 2013 2World Preview 2013 Outlook to 2018, EvaluatePharma, June 2013
© 2014 KPMG LLP, a UK limited liability partnership, and a member fi rm of the KPMG network of independent member fi rms affi liated with KPMG International Cooperative, a Swiss entity. All rights reserved. . Between 2004 and 2013 the total industry expenditure on R&D rose from US$88 bn to US$135 bn, and is forecast to reach US$149 bn by 20182 .
R&D INNOVATION
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