Returns on pharma R&D too low to sustain future pipeline investment, report says

Returns on pharmaceutical research and development are too low for the industry to sustain future pipeline investment, according to a report by the Deloitte Centre for Health Solutions.

The consultancy’s report, “Measuring the return from pharmaceutical innovations 2015: Transforming R&D returns in uncertain times,” reveals that annual projected R&D returns for the world’s top 12 pharmaceutical companies have declined from 10.2% in 2010 to 4.2% in 2015.

This is largely due to a stark imbalance between declining forecast peak sales and growing asset development costs, according to the report.