Growing the pipeline, growing the bottom line — shifts in pharmaceutical R&D innovation

By Chris Stirling

As spending on pharmaceutical research and development (R&D) continues to soar, executives, shareholders and analysts alike are entitled to ask: what value are we getting for our investment?

The pharma sector invests more money in research than any other industry, with five of the world’s 10 highest R&D budgets belonging to drug companies. Between 2004 and 2013, the total industry expenditure on R&D rose from $88bn (£52bn) to $135bn, and is forecast to reach $149bn by 2018.

Yet in the same time period, the estimated cost of bringing a new chemical or biological product to market has more than trebled from $451m to $1.5bn. Meanwhile, the average number of annual US Food and Drug Administration (FDA) approvals for new molecular entities (NMEs) — a good directional indicator of innovation — fell from 31.5 in 1990 to an average of just 22.9 from 2001–10…

Click on the link below to read the rest of the KPMG briefing.

Sign in or Register to continue reading this article

Sign in


It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer


Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.


Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.


Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Briefings from KPMG

View more briefings from KPMG

Browse This Firm’s


15 Canada Square
E14 5GL

Qualified lawyers: 32
Partners: 10
Jurisdictions: 2