New Medicine Development: Big Investors

Biopharma companies are crabbing up their drug research & development spending after staying stable all the way through last couple of years. According to industry sources, research & development investments will top $136 billion in 2013, up from $ 134 billion (2012); also the R&D expenditures estimated to exceed ($ 149 billion) by 2017.

Drug Development Costs: Average cost to develop a drug

  • Early 2000s = $1.2 billion approx
  • Late 1990s = $800 million
  • Mid 1980s = $320 million
  • 1970s = $140 million

New medicine development – Big investors:

  • According to recent industry surveys: NovoNordisk will have the fastest growth in Research & Development spending, from $1.8 billion in 2011 to $3.1 billion in 2018, an 8 % increase in investments.
  • Novartis is predicted to spend on R&D the most $10.1 billion – by 2018.
  • Roche is expected to spend $8.7 billion.
  • Merck & Co., is expected to spend $7.6 billion.
  • GlaxoSmithKline, is expected to spend $7.2 billion
  • Pfizer, is expected to spend $6.7 billion
  • Sanofi, is expected to spend $6.7 billion
  • Johnson & Johnson, is expected to spend $5.9 billion
  • Eli Lily, is expected to spend $4.7 billion
  • Bristol-Meyers Squib, is expected to spend $4.2 billion
  • AstraZeneca is expected to spend $4.1 billion: according to the sources several major biopharma companies are expected to spend less on R&D over the next 6 years (including Pfizer, Merck & Co, AstraZeneca and Eli Lilly.)

Medicines in Development:

  • Global development in 2011 = 5,400 compounds
  • Potential first-in-class medicines (medicines that use a different mechanism of action from any other already approved medicine) in clinical development globally = 70%

Most promising pipeline drugs:

Here are projections for some of the most closely followed drug products either in Phase III trials or which have filed applications for marketing approval.

  • GS-7977, (a Hepatitis C polymerase inhibitor) developed by Gilead Life Sciences, believed one of the most worthful drugs in development. Analysts are already anticipating global sales could attain $5.4 billion by 2018.
  • BG-12, (dimethyl fumarate- for the treatment of relapsing-remitting multiple sclerosis) developed by Biogen Idec, estimate to reach $3.4 billion in sales by 2018.
  • RG1273 (pertuzumab for the treatment of breast cancer), developed by Roche, estimate to reach $2.5 billion.
  • Quad, (a combination of elvitegravir, cobicistat, emtricitabine plus tenofovir disoproxil fumarate) for HIV-1, developed by Gilead Sciences, projected, $2.8 billion.
  • Tofacitinib, (a JAK-3 inhibitor) used for rheumatoid arthritis developed by Pfizer, projected $1.7 billion.
  • Trastuzumab emtansine (an Anti-HER2 MAb-DM1 conjugate) for breast cancer, developed by Roche, $1.1 billion projected.
  • Tresiba, (a long-acting insulin), developed by Novo Nordisk, $1 billion projected.
  • Bexsero,(Meningococcal B vaccine) developed by Novartis, $1 billion projected.
  • Vascepa, (an Omega-3 fatty acid) for hypertriglyceridemia developed by Amarin Pharmaceuticals. Projected sales could reach $510 million.

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