Pharma is spending more to get less
That’s according to Deloitte, whose annual look at drug industry productivity has lots of lines going in the wrong direction.
Studying 12 major pharma companies, Deloitte reported that projected returns on research dollars have tanked since 2010, from about 10 percent back then to under 2 percent in 2018. And, over the same period, the cost of getting a drug from the lab to the pharmacy has increased by 82 percent, according to Deloitte.
But things aren’t so bad if you go down an order of magnitude. Deloitte picked four mid-size biotech companies for comparison and found a much healthier ecosystem. Projected R&D returns are down since 2010, but not nearly as sharply, and peak sales expectations for the biotech group are almost as high as ever.
Studying 12 major pharma companies, Deloitte reported that projected returns on research dollars have tanked since 2010, from about 10 percent back then to under 2 percent in 2018. And, over the same period, the cost of getting a drug from the lab to the pharmacy has increased by 82 percent, according to Deloitte.
But things aren’t so bad if you go down an order of magnitude. Deloitte picked four mid-size biotech companies for comparison and found a much healthier ecosystem. Projected R&D returns are down since 2010, but not nearly as sharply, and peak sales expectations for the biotech group are almost as high as ever.
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