Clarivate Plc, a global leader in providing trusted information and insights to accelerate the pace of innovation, has announced the release of the 2020 Centre for Medicines Research (CMR) International Pharmaceutical R&D Factbook. The factbook reveals a decrease in R&D spending for the first time since 2016. While previous predictions for 2022 expenditure exceeded $86 billion, this year, 2022 expenditure is forecasted to reach $80 billion, with new factors such as COVID-19 impacting drug development.
The Centre for Medicines Research, a wholly owned subsidiary of Clarivate, has released the report to help Pharma and Biotech companies assess R&D productivity and provide insights into industry trends which will inform drug development efforts. It provides insights on R&D expenditures, cycle times, pipeline growth and more to allow Pharma and Biotech companies to access and analyse success rates and key activities from drug discovery through commercialization – enabling the establishment of reliable internal KPIs along the entire drug development lifecycle.
The 2020 CMR International Pharmaceutical R&D Factbook reveals drug development continues to be complex, challenging and time consuming. The burden of existing diseases and the recent COVID-19 pandemic, which has threatened global public health and the global economy more than any other event in recent history, has also had an impact on drug development. While inroads have been made to tackle these complex communicable and non-communicable diseases, delivering new treatments in an accelerated and cost-efficient manner remains a significant challenge.
Key findings include that drug development times have decreased from 14.5 years on average in 2010 to 10.2 years in 2019, the lowest it has been since 2013. Pharma and Biotech companies continue to hone their R&D strategies in those areas that tend to be the limiting factor in R&D cycle time, such as patient enrollment. Overall, new molecular entity (NME) launches have slowed for the first time since 2016 with a 22% drop in launches from 2018. China and Japan have increased NME launches by 11% since 2017 whereas the US has decreased NME launches by 25%. US-based companies are increasingly adjusting their R&D strategies toward drug repurposing efforts. The report further notes that the number of lead projects in development in 2019 for first launch have decreased in pipeline size across oncology, cardiovascular, nervous system and other therapy areas. Musculoskeletal and respiratory saw the largest pipeline decreases with 21% and 22% decreases respectively.
The report indicates Pharma and Biotech companies are increasingly focusing their R&D efforts on the most promising drug programs before they reach clinical trials by learning from competitors’ experiences and targeting relevant patient populations.
The analysis featured within the 2020 CMR International Pharmaceutical R&D Factbook is derived from proprietary, anonymized data gathered from more than 25 leading Pharma and Biotech companies of all sizes and therapy areas. The data and insights apply unique depth and historical context to uncover reliable industry trends, set against the changing marketplace, enabling more strategic decision-making and informing the accelerated development of life-saving therapies.
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