Did you know that R&D expenses of the 15 biggest pharma companies have increased by almost 50% since 2016 to USD 133 bn in 2021?
And expenses will continue to increase. Roche alone for example will spend close to CHF 15 bn on R&D in 2022, 1 bn more than in 2021.
However, R&D success rates, as our chart shows, have not increased over the last decade, to the contrary, rates are back to below 10% also due to the pandemic.
R&D success rate is defined as the probability that a drug entering clinical trials will make it to the market.So in other words, less than 1 out of 10 products tested in patients makes it to market.
So what?, you might ask. Simply said, it remains really hard to develop new drugs, despite all the scientific and technological advances. The thing is… that science and technology progress is levelled off by increased complexity, higher safety standards and more competition
As investors it is key, that find companies which do R&D more efficient than others. Let us know, if you want to find out what we think who the winning companies are.
We attended the ASCO 2023 annual meeting in Chicago. After the rise of immuno-oncology, COVID-19 challenged clinical trial execution and muted patient numbers. In the last years we saw many setbacks of once promising immuno-oncology combinations trials.
What mattered this month in healthcare? Q1 reporting came to a close, and FTC action put pressure on the biopharma space and... Find out more in our monthly healthcare newsletter.
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