2015年-_W00ZE~Z

R&D Productivity and Market Costs in Biopharma Companies (2017 Summary)

Core Content Overview

The document provides an analysis of R&D productivity and market costs for two distinct cohorts of biopharma companies: the large cap original cohort and the extension cohort of mid-tier companies, focusing on the year 2017.

Key Findings

1. Large Cap Original Cohort

• R&D Returns Decline: R&D returns for the large cap biopharma original cohort have continued to fall in 2017.
• Cost to Bring Asset to Market: The cost to bring an asset to market has reached record levels in 2017 for this cohort.
• Peak Sales Growth: Projected peak sales per asset increased by 18% in 2017.
• Late-Stage Assets Reduction: There has been a decline in the number of late-stage assets due to fewer Phase III trials starting in the previous year.

2. Extension Cohort of Mid-Tier Biopharma Companies

• R&D Returns Increase: Returns for this cohort increased in 2017.
• Higher Market Costs: The cost to bring an asset to market has risen by 50% since 2013 for this group.
• Peak Sales Growth: Projected peak sales per asset have reached blockbuster levels in 2017.

Main Viewpoints

• R&D Productivity Challenges: The original cohort of large cap biopharma companies is facing declining R&D returns despite rising costs, indicating lower productivity in the development process.
• Market Cost Escalation: The cost of developing a new drug has skyrocketed, especially for the extension cohort of mid-tier companies, which has increased by 50% since 2013.
• Sales Projections: With higher development costs, the projected peak sales per asset for the extension cohort have surpassed blockbuster thresholds, suggesting a potential shift in market dynamics.
• Late-Stage Development Trends: The reduction in Phase III trials among the original cohort has led to a decline in the number of late-stage assets, which could affect future product pipelines and revenue streams.

Critical Information

• The original cohort refers to the initial group of large cap biopharma companies, while the extension cohort includes mid-tier companies that have entered the market in more recent years.
• The increase in costs and decrease in returns for the original cohort may reflect long-term structural issues in the R&D process, such as increased regulatory scrutiny, higher clinical trial expenses, and complexity in drug development.
• The extension cohort has managed to improve returns, possibly due to more efficient R&D strategies, innovation in drug development, or greater focus on high-value targets.
• The blockbuster sales projection for the extension cohort highlights a potential shift in the industry, where mid-tier companies may now compete with large cap firms in terms of market value and product success.

Conclusion

The data indicates a complex landscape in the biopharma industry, where large cap companies face declining R&D returns and rising costs, while mid-tier extension companies are performing better with higher sales projections. This suggests that R&D productivity is a critical issue for the original cohort, and innovation and efficiency are key drivers for the extension cohort. The trend toward higher costs and blockbuster sales for mid-tier firms may signal a restructuring of the industry in terms of investment and output.