Top 50 global pharmaceutical and biotech companies by R&D intensity in 2020

The bio-/pharmaceutical industry is one of the most research-driven in the world, and its high R&D intensity has long been recognized. This list consists of many smaller companies that have high research costs but low sales revenues.

What is R&D intensity?

R&D intensity is calculated by taking a company’s R&D expenditure and dividing that figure by its sales. For smaller companies, the investment can be a very high proportion of its sales. However, established larger companies can recoup their R&D investment through sales income. In 2020, Swiss company Novartis spent around nine billion U.S. dollars on R&D and had net sales of 48.7 billion U.S. dollars. This resulted in an R&D intensity for the year of around 18.5 percent.

R&D holds the key

Discovering innovative, life-changing medicines can require substantial investment. In 2020, the global pharmaceutical industry spent approximately 200 billion U.S. dollars on R&D, and forecasts predict an annual expenditure of around 250 billion U.S. dollars by 2025. All of the big pharma companies are expected to continue investing significant amounts on R&D projects until 2026.