R&D Spending & Success
Trends, Issues & Solutions
Figures 1, 2 & 3
Figure 1
R&D Costs ($B)
60
50
40
30
20
10
0
1980 1990 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: Pharmaceutical Research & Manufacturers of America (PhRMA); Total R&D spend
by year among PhRMA members
Figure 2
Figure 3
Key Factor
Success Probability
Risk Adjusted
NPV
Success
Probability
Trial A
$800M
45%
No. Of Target
Indications
Trial B
$300M
90%
Development Costs
Trial C
$1.2B
50%
Timeline
Trial D
$3.0B
30%
Mortality Endpoints
Trial E
$120M
95%
Complexity
QOL Benefits
0
5
10
15
20
25
Estimates show the relative importance of factor in influencing risk-adjusted NPV