Measuring the return from Pharmaceutical innovation 2013
Weathering the storm?
This Deloitte report is the fourth in an annual series exploring the pharmaceutical industry’s performance in generating a return from its investment in new product innovation. For the last four years Deloitte and Thomson Reuters have analysed the performance of the top 12 life sciences companies by estimating the projected financial returns from the investment in their late stage pipelines.
The cohort of companies comprises the 12 companies reporting the highest absolute research and development (R&D) spend for 2008-2009. The late stage pipeline includes those compounds which are either in Phase III development or submitted for approval.
This year’s research highlights:
- The top 12 companies have launched 105 products since 2010, with a projected value of $770 billion;
- Since 2010, 167 compounds have been pulled into late stage development with a total risk-adjusted value of $819 billion;
- The cost of bringing an asset from discovery to launch increased by 18%, rising from $1.1 billion in 2010 to $1.3 billion in 2013;
- Late stage terminations continue to take too much value out of company pipelines, amounting to a loss of $243 billion over the four years.
- The average forecast for the peak sales of an asset declined by 43%, dropping from $816 million in 2010 to $466 million in 2013.