Nine-year low for Pharma R&D returns

20 December 2018

That R&D productivity in the pharmaceutical industry has been on the decline is no secret, but new findings show just how bad this is.

Projected returns on investment in research and development (R&D) for the top 12 pharmaceutical companies have fallen to 1.9%, according to research by Deloitte’s Centre for Health Solutions.

Returns are down 1.8 percentage points from 3.7% in 2017, and forecast average peak sales are at $408 million, making 2018 the lowest level since Deloitte’s R&D report began nine years ago. Returns are down by 8.2 percentage points since 2010, when they stood at 10.1%.

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