PhRMA member companies R&D investments hit record high in 2017, at $71.4 billion

Member companies of Pharmaceutical Research and Manufacturers of America (PhRMA) invested $71.4 billion in research and development (R&D) in 2017, the highest level of investment on record, according to the 2018 PhRMA member annual survey, released in conjunction with the 2018 Biopharmaceutical Research Industry Profile.

R&D intensity at PhRMA member companies remains consistently high as well: In 2017, about one out of every five dollars of revenue was devoted to R&D. Additionally, PhRMA member R&D spending represents the majority of the estimated $90 billion spent by the entire US biopharmaceutical industry on R&D in 2016 (latest figure available), writes Tim McClung, a director of policy & research at PhRMA, on the trade group’s website.

The US biopharmaceutical sector at large accounts for roughly one-sixth of total domestic R&D spending by US businesses, the single largest share of all US business R&D. Over time, this focus on R&D investment has helped spur medical advances for U.S. patients.