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.