Well, yes according to a updated report by Deloitte and Thomson Reuters. Their data analysis says that the 12 biggest spenders in R&D in pharma earned a modest 4.8% return on their investment. And that's down from last year's 7.2% and the previous year's 10.5%. As they say, the trend is going in the wrong direction.
What's worse? Well, I'll tell you. The report also claims that the costs of getting a new drug to market is up more than 18% over the same period. Right now, it doesn't look like improvement is on the immediate horizon. The average peak sales forecast has fallen from $816 M in 2010 to $466 M now, a 43% plummet.
The report further claims that drug developers are failing to reduce the cost of successful launches and in their rate of innovation. The report reiterates the advice that drug makers should reach to meet more "unmet medical needs", better preserve their R&D talent (instead of firing them all?), and taking advantage of the growing power of data analytics in decision making. Though the report also makes it clear that the top 5 companies have R&D returns greater than 7% while the bottom companies are producing a returns drag. The have's and have-not's if you will. See Fierce Biotech.
Posted by Bruce Lehr Dec 3rd 2013.