U.S. pharma industry R&D spending as a percent of total revenues 1990-2018

In relation to total revenue, the pharmaceutical industry is among the biggest investors in research and development (R&D). Based on data from the Pharmaceutical Research and Manufacturers of America (PhRMA), the industry in the United States spent around 19.5 percent of global revenues on R&D in 2018 – this share has remained around 20 percent for the past few years.

Analyzing the revenues and R&D expenditure

Members of the PhRMA trade group generated global revenues of approximately 407 billion U.S. dollars in 2018, with domestic revenues accounting for around 70 percent of that figure. With regard to R&D expenditure, PhRMA members spent close to 80 billion U.S. dollars worldwide in 2018, with spending in their domestic market of the United States accounting for a 78 percent share of the global figure.

Product lifecycles in the pharmaceutical industry

Pharmaceutical manufacturers require time and money if they are to develop new innovative medicines: it can take 10 to 15 years to develop a new medicine, at an average cost of approximately 2.6 billion U.S. dollars. Due to patents and exclusivity, brand name drugs can expect to be on the market for an average of twelve years before a generic version enters. Generics contain the same active ingredients as branded drugs but can be considerably cheaper. The healthcare system in the United States generated around 293 billion U.S. dollars in savings through generic medicines in 2018.

Spending of U.S. pharmaceutical industry for research and development as a percentage of total revenues from 1990 to 2018

Exclusive Premium statistic

You need a Single Account for unlimited access.

  • Full access to 1m statistics

  • Incl. source references

  • Available to download in PNG, PDF, XLS format

Single Account

$39 $59 per month *
in the first 12 months
33% Discount until June 30th
*Duration: 12 months, billed annually, single license

Access to this and all other statistics on 80,000 topics from

$468 / Year
$708 / Year

Show detailed source information?
Register for free
Already a member?
Log in
Source

Release date

2019

Region

United States

Survey time period

1990 to 2018

Special properties

PhRMA members

Supplementary notes

* 2007 revised with more current data.

Open this statistic in...
Statista Accounts: Access All Statistics. Starting from $468 / Year
Basic Account
Get to know the platform

You only have access to basic statistics.
This statistic is not included in your account.

Single Account
Your perfect start with Statista
  • Instant access to 1m statistics
  • Download in XLS, PDF & PNG format
  • Detailed references
$59 $39 / Month *
in the first 12 months
Corporate Account
Full access

Corporate solution including all features.

* All products require an annual contract; Prices do not include sales tax.

Statistics on "U.S. pharmaceutical industry"

Statista Accounts: Access All Statistics. Starting from $468 / Year
Learn more about how Statista can support your business.