5 Pharmas Spending the
Most to Develop Drugs
You’ve Got to Spend Money to Make Money
• Companies can spend upwards of $5 billion per new
drug.
• Most of the expenses c...
• Revenue and R&D expenses peaked in 2011.
• Company has decreased R&D expenses even more
than revenue to compensate
• Unc...
• Revenue has dropped with the loss of exclusivity
on Seroquel IR, Atacand, Nexium, and Merrem in
various parts of the wor...
• A few years ago, Roche bought Genentech,
arguably the powerhouse of biotech R&D
• Revenue was up substantially in 2013. ...
• Loss of exclusivity on Plavix hurt revenue.
• Solid pipeline has encouraged Bristol-Myers to
continue to spend. (Six dru...
• Revenue decline due to loss of exclusivity on
Cymbalta.
• Spending on R&D has continued to increase.
• The combination r...
The Motley Fool’s Top
Stock Pick for 2014
5 Pharmas Spending the Most to Develop Drugs
5 Pharmas Spending the Most to Develop Drugs
5 Pharmas Spending the Most to Develop Drugs
5 Pharmas Spending the Most to Develop Drugs
5 Pharmas Spending the Most to Develop Drugs
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5 Pharmas Spending the Most to Develop Drugs

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Eli Lilly, Bristol-Myers Squibb, Roche, AstraZeneca, and Merck top the charts.

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5 Pharmas Spending the Most to Develop Drugs

  1. 1. 5 Pharmas Spending the Most to Develop Drugs
  2. 2. You’ve Got to Spend Money to Make Money • Companies can spend upwards of $5 billion per new drug. • Most of the expenses come from failed drugs, which account for 95% of drugs that enter the clinic. • Fortunately, with decent sales, approved drugs can produce many times the average development cost over the life of the patents. • Unfortunately, spending money on R&D doesn’t guarantee success.
  3. 3. • Revenue and R&D expenses peaked in 2011. • Company has decreased R&D expenses even more than revenue to compensate • Unclear how that’ll affect long-term pipeline development.
  4. 4. • Revenue has dropped with the loss of exclusivity on Seroquel IR, Atacand, Nexium, and Merrem in various parts of the world. • R&D decreased a little, but skyrocketed as a percent of revenue. • Company has 11 new molecular entities in Phase 3 or in front of regulators, almost double the previous year
  5. 5. • A few years ago, Roche bought Genentech, arguably the powerhouse of biotech R&D • Revenue was up substantially in 2013. In a world of patent cliffs, can you really ask for more?
  6. 6. • Loss of exclusivity on Plavix hurt revenue. • Solid pipeline has encouraged Bristol-Myers to continue to spend. (Six drugs in Phase 3, nine in phase 2, and 14 marketed products being tested in additional indications). • Continued spending substantially increased R&D as a percent of revenue.
  7. 7. • Revenue decline due to loss of exclusivity on Cymbalta. • Spending on R&D has continued to increase. • The combination resulted in a substantial increase in R&D spending as a percent of revenue, leading the pharmaceutical pack.
  8. 8. The Motley Fool’s Top Stock Pick for 2014
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