A new study published coming out of the University of Michigan and being reported by Fierce Biotech says that they US portion of Big Pharma R&D budgets is declining. Specifically, the US share of budget dropped from 51% in 2007 to 45% by 2012. The US loss was made up for by gains in Asia -- mostly Japan and China. So worldwide shares now look like US 45%, Europe 29% (flat), and Asia 24%.
Perhaps this is to be predicted as so many global Pharma players are establishing R&D sites in Shanghai -- Lilly, AZ, MerckSerono, J&J, Merck, Novo and Novartis among others have invested in China. No doubt China investment has the double benefit of making it somewhat easier to penetrate the HUGE local markets when the time comes. This does not look like a trend that is likely to reverse -- even with the adulteration and payoff issues that China has struggled with recently.
The US may still be in the lead but the tide is shifting and will continue to do so if there is not a dedicated response.
Posted by Bruce Lehr Jan 2nd 2014.