Finally, drug makers are getting noticed for their scientific needs as the rate of return when it comes to pharmaceutical Research and Development (R&D) is increasing for the very first time after year 2010.
The overall returns for R&D have increased to 5.5% this current year, compared to last year’s 5.1%, which reflects a slight uptick in productivity within company laboratories. These data were based on the recent survey conducted by the Deloitte and released on Wednesday.
The international pharmaceuticals industry is in dire need of replenishing its medicine chest when a series of patent expires, which peaked in 2012.
The United States Food and Drug Administration (FDA), acting as the gatekeeper to the globe’s largest market has sanctioned 35 new products, compared to the 27 total products last year.
However, there are relative variations between companies, considering the biggest companies to have the highest development costs for every new medication, and the lowest return when it comes to R&D investment.
The top 12 drug makers had 11.7% R&D returns for 2014, while a negative 0.7% return for the worst-performing companies.
The companies analyzed throughout the study included Roche, Pfizer, Novartis, Sanofi, Johnson & Johnson, GlaxoSmithKline, AstraZeneca, Eli Lilly, Merck & Co, Amgen, Bristol-Myers Squibb, and Takeda. However, individual results were not disclosed.