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Global pharma R&D spending 2010-2024
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Global pharma R&D spending 2010-2024
Total global pharmaceutical research and development (R&D) spending from 2010 to 2022 (in billion U.S. dollars)
by Matej Mikulic,
last edited
Aug 9, 2019
In 2018, research and development spending in the pharmaceutical industry totaled 1790 billion U.S. dollars globally. For comparison, R&D expenditures totaled 129 billion dollars in 2010. Pharmaceutical R&D includes all steps from the initial research of disease processes, the compound testing over pre-clinical, and all clinical trial stages. At a certain point in the process -mostly during the pre-clinical phase – a governmental authority is involved to overview, regulate, and ultimately approve the drug. In the United States, the Food and Drug Administration headquartered in White Oaks, Maryland, is the principal agency associated with processes.
The pressure to innovate
In comparison to other industries, pharmaceutical companies are more driven by the imperative to manufacture innovative products, and thus to spend significant amounts on research and development. This is largely due to the time-limited patent protection of drugs and the following threat of sales erosion through generic and biosimilar competition. Two major effects of patent expirations for the pharma industry are a specific high R&D intensity and a growing focus on specialty drugs to diversify their product portfolio.
The latest trends
For the last several years, major developments in pharmaceutical research and development have begun to change the R&D landscape. A growing number of drug manufacturers are outsourcing large parts of R&D, mostly to clinical research organizations (also: contract research organizations), with the main aim to reduce costs. Another important development is the use of big data in clinical research. Thus, a predictive modeling is possible which uses clinical and molecular data to develop safer and more efficient drugs. Particularly, real-time or real-world evidence (RWE) is becoming a greater interest. This makes cooperation with technology companies necessary and includes data gathered from various sources, even that of social media.
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by Matej Mikulic,
last edited
Aug 9, 2019
In 2018, research and development spending in the pharmaceutical industry totaled 1790 billion U.S. dollars globally. For comparison, R&D expenditures totaled 129 billion dollars in 2010. Pharmaceutical R&D includes all steps from the initial research of disease processes, the compound testing over pre-clinical, and all clinical trial stages. At a certain point in the process -mostly during the pre-clinical phase – a governmental authority is involved to overview, regulate, and ultimately approve the drug. In the United States, the Food and Drug Administration headquartered in White Oaks, Maryland, is the principal agency associated with processes.
The pressure to innovate
In comparison to other industries, pharmaceutical companies are more driven by the imperative to manufacture innovative products, and thus to spend significant amounts on research and development. This is largely due to the time-limited patent protection of drugs and the following threat of sales erosion through generic and biosimilar competition. Two major effects of patent expirations for the pharma industry are a specific high R&D intensity and a growing focus on specialty drugs to diversify their product portfolio.
The latest trends
For the last several years, major developments in pharmaceutical research and development have begun to change the R&D landscape. A growing number of drug manufacturers are outsourcing large parts of R&D, mostly to clinical research organizations (also: contract research organizations), with the main aim to reduce costs. Another important development is the use of big data in clinical research. Thus, a predictive modeling is possible which uses clinical and molecular data to develop safer and more efficient drugs. Particularly, real-time or real-world evidence (RWE) is becoming a greater interest. This makes cooperation with technology companies necessary and includes data gathered from various sources, even that of social media.
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- Release date
- June 2019
- Region
- Worldwide
- Survey time period
- as of May 2019
- Supplementary notes
- * Projected.
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- Release date
- June 2019
More information
- Region
- Worldwide
- Survey time period
- as of May 2019
- Supplementary notes
- * Projected.
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Statistics on "Global pharmaceutical industry"
- Overview
The most important statistics
- Revenue of the worldwide pharmaceutical market from 2001 to 2018 (in billion U.S. dollars)Pharmaceutical market: worldwide revenue 2001-2018
- Distribution of global pharmaceutical market revenue from 2010 to 2018, by regionGlobal pharmaceutical market - revenue distribution 2010-2018, by region
- Global pharmaceutical sales from 2016 to 2018, by region (in billion U.S. dollars)*World pharmaceutical sales 2016-2018 by region
- Distribution of the total global pharmaceutical market sales from 2014 to 2018, by submarket*World pharmaceutical market distribution by submarket 2014-2018
- Growth of top 10 national pharmaceutical markets worldwide from 2012 to 2017*Top 10 global pharmaceutical markets: growth 2012-2017
- Top 10 therapeutic classes by estimated global pharmaceutical sales in 2018 (in billion U.S. dollars)Top therapeutic classes by global pharmaceutical sales 2018 estimates
- Global spending growth in selected pharmaceutical major therapeutic classes between 2014 and 2018*Spending growth of top pharmaceutical therapeutic classes by CAGR 2014-2018
- Companies and products
The most important statistics
- Top 50 global pharmaceutical companies by prescription sales and R&D spending in 2018 (in billion U.S. dollars)Top 50 pharmaceutical companies - Rx sales and R&D spending 2018
- 2018 ranking of the global top 10 biotech and pharmaceutical companies based on net income (in billion U.S. dollars)2018 list of global top 10 biotech and pharmaceutical companies based on net income
- Top 10 biotech and pharmaceutical companies worldwide based on market capitalization as of 2019 (in billion U.S. dollars)Top 10 biotech and pharmaceutical companies based on market cap 2019
- World's top 50 pharmaceutical and biotechnology companies based on capital expenditure growth in 2017/2018Top pharmaceutical companies by capex growth in 2017/2018
- Top 15 pharmaceutical products by sales worldwide in 2018 (in million U.S. dollars)Top pharmaceutical products by sales worldwide 2018
- Top generics manufacturers based on revenue in 2018 (in billion U.S. dollars)*Revenues of leading global generics manufacturers 2018
- Top 10 cancer drugs worldwide by revenue in 2018 (in billion U.S. dollars)Top cancer drugs based on revenue worldwide 2018
- Top companies by revenue
The most important statistics
- Pfizer's total revenue from 2006 to 2018 (in million U.S. dollars)Pfizer's total revenue 2006-2018
- Pfizer's revenue in 2014 and 2018, by segment (in million U.S. dollars)*Pfizer's revenue by segment 2014-2018
- Novartis AG's total revenue from 2007 to 2018 (in billion U.S. dollars)Novartis' revenue 2007-2018
- Novartis AG's revenue from 2014 to 2018, by segment (in billion U.S. dollars)Novartis revenue 2014-2018 by segment
- Total sales of the Roche Group from 2006 to 2018 (in million Swiss francs)Roche Group's total sales 2006-2018
- Total sales of the Roche Group from 2013 to 2018, by division (in million Swiss francs)Roche Group's total sales by division 2013-2018
- R&D, patents, new products
The most important statistics
- Total global spending on pharmaceutical research and development from 2010 to 2024 (in billion U.S. dollars)Total global pharmaceutical R&D spending 2010-2024
- Global top 10 pharmaceutical companies based on projected R&D spending in 2024 (in billion U.S. dollars)Global top pharmaceutical companies based on R&D spending 2024
- Worldwide total prescription drug revenue at risk from patent expiration from 2010 to 2024 (in billion U.S. dollars)*Patent expiration risks for total worldwide prescription drug revenue 2010-2024
- Percentage of global prescription drug revenue at risk from patent expiration from 2010 to 2024Worldwide prescription drug revenue - market risk from patent expiration 2010-2024
- Small molecules sales at risk due to patent expirations in the U.S. from 2009 to 2022 (in billion U.S. dollars)Projected sales at risk due to patent expiry 2009-2022
- Number of new chemical or biological entities developed between 1992 and 2018, by region of originPharmaceutical industry - number of new substances 1992-2018
- Total number of novel drugs approved by CDER from 2008 to 2018Number of novel drugs approved annually by CDER 2008-2018
- Top biotech and pharma product launches in 2018 and revenue forecast for 2022 (in million U.S. dollars)Projection of top 2018 pharma and biotech launches by revenue 2022
- Outlook
The most important statistics
- Projected global pharmaceutical sales for 2022, by region (in billion U.S. dollars)*World pharmaceutical sales by region forecast 2022
- Worldwide forecast of pharmaceutical sector growth between 2017 and 2030, by countryPharmaceutical sector growth worldwide 2017-2030, by country
- Global spending on medicines in 2010, 2018, and a forecast for 2023 (in billion U.S. dollars)Global spending on medicines 2010-2023
- Projected expenditure on medicine of selected countries worldwide in 2023 (in billion U.S. dollars)Country comparison in spending on medicine 2023
- Projected top 10 global pharmaceutical products by revenue in 2024 (in million U.S. dollars)Leading global pharmaceutical products and respective revenues 2024
- Global top 10 pharmaceutical companies based on projected R&D spending in 2024 (in billion U.S. dollars)Global top pharmaceutical companies based on R&D spending 2024
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