Report: Top 30 pharma companies spent $112B on R&D in 2013
The world’s leading 30 pharmaceutical companies spent a combined $112 billion on R&D in 2013, an increase of $723 million over the previous year, according to London-based 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, said that the increase in R&D spending was partly due to drug makers advancing their pipeline programs into later-stage clinical trials, which generally are more costly.
Dion said, “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.
According to Dion, “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.”