Toggle Mobile Navigation

Top 10 Pharma R&D Budgets

Since drug pricing was a noted talking point of the 2016 presidential election, it might not come as a surprise that R&D budgets in the pharmaceutical industry have seen big cuts as a result. And while this comes across as a negative, reduced spending on pharma R&D – though resulting in staff cuts, restructured operations, and more – actually resulted in positive percentage terms in sales. Luckily for us, FierceBiotech has made this information easy to understand in a recently published content report.

R&D spending varied from company to company, but overall, the top ten Big Pharmas spent an average of 17% of budgets on R&D (according to 2016 GAAP figures), or a combined total of about $70.5 billion, with revenue coming in at around $404.8 billion. Taking into account budget increases and decreases, as well as revenue, here are the top 10 R&D budgets:FierceBiotech: The Biotech Industry's Daily Monitor

  1. Roche
  2. Johnson & Johnson
  3. Novartis
  4. Pfizer
  5. Merck
  6. AstraZeneca
  7. Sanofi
  8. Eli Lilly
  9. Bristol-Myers Squibb
  10. GlaxoSmithKline

As FierceBiotech points out, the 17% average spending might seem like very little, but it reflects similar budgets from 2011 and 2012. In other words, we’ve seen this before. It should also be mentioned that AstraZeneca and Bristol-Myers Squibb spent the highest percentages of their respective revenues on R&D in 2016 – which was about 25%. Comparing those budgets to the 23% of this list’s top company, Roche, you can see that there’s no fixed figure for success in pharma.

For further information on these figures, including the explanation of how BMS had a record-breaking drop in R&D spending in 2016 (among other interesting facts), check out FierceBiotech’s pharma budget write-up right here.

posted in Pharmaceutical
tagged with , , , , , , , , , , , ,

live chat software