Despite having some success in launching and developing new drugs in recent years, the returns on R&D efforts by a dozen of the biggest pharmaceutical companies has declined from 10.1 percent in 2010 to a projected 3.7 percent this year, according to a new report.

During that period, the average peak sales for each drug reached $394 million, which represented an 11.4 percent year-over-year drop from 2010, according to the analysis by the Deloitte Centre for Health Solutions. And while costs to discover, develop, and launch a drug have largely stabilized at slightly more than $1.5 billion, the upshot is that blockbuster costs are not producing blockbuster sales.

Unlock this article by subscribing to STAT Plus and enjoy your first 30 days free!


What is it?

STAT Plus is STAT's premium subscription service for in-depth biotech, pharma, policy, and life science coverage and analysis. Our award-winning team covers news on Wall Street, policy developments in Washington, early science breakthroughs and clinical trial results, and health care disruption in Silicon Valley and beyond.

What's included?

  • Daily reporting and analysis
  • The most comprehensive industry coverage from a powerhouse team of reporters
  • Subscriber-only newsletters
  • Daily newsletters to brief you on the most important industry news of the day
  • Online intelligence briefings
  • Frequent opportunities to engage with veteran beat reporters and industry experts
  • Exclusive industry events
  • Premium access to subscriber-only networking events around the country
  • The best reporters in the industry
  • The most trusted and well-connected newsroom in the health care industry
  • And much more
  • Exclusive interviews with industry leaders, profiles, and premium tools, like our CRISPR Trackr.
  • ….and that’s good. Zero interest rate on the bank, 5% on pharma would be OK. Don’t spread this nonsense number of 1.5 billion R&D costs per drug. It’s such an utter nonsense. Kick those guys in the axx spreading such bollocks.

  • Per last week’s WSJ piece, NONE of the top 20 prescribed drugs were developed in the last decade. Gone are the days when we could crank out 3-4 new formulations of erythromycin every couple years and charge premium pricing.

  • Hmmmm – “So unless somebody starts to do things fundamentally different about productivity ….” please cue young Mr Einstein: ‘To continue to do the same things in the same way while expecting different results is the definition of insanity.’

Comments are closed.

A roundup of STAT’s top stories of the day in science and medicine

Privacy Policy