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Science and technology development input for industry development

2021-07-06 16:54:19 JE Read

2、Science and technology development input for industry development


For the pharmaceutical industry, R&D investment is one of the main influencing factors affecting pharmaceutical R&D output. According to Evaluate Pharma, global pharmaceutical R&D spending reached $186 billion in 2019, up 1.6% year-on-year. Especially in recent years, with the continuous progress of basic frontier disciplines, for new drugs (ADC, PD-1, etc.) and new therapeutic technologies (CAR-T, etc.) major pharmaceutical companies have increased their R&D investment. In addition, EvaluatePharma forecasts that it will rise to $19.5 billion by 2021.




Global drug R&D is heating up, based on important factors such as the emergence of several new molecules in the treatment of diseases such as cancer, diabetes, cognitive disorders and inflammation, the close integration and complementarity of diagnostics and therapeutics, and the declining reliance on the traditional business model (emphasis on generic drugs over therapeutic drugs for unknown rare diseases) over the past few years.


As seen in the top 10 global drug manufacturers' R&D investments in 2019-2020, the largest R&D investment in 2020 is by Roche, with a total of $13.9 billion. In second place is Merck, with R&D spending of $13.6 billion, accounting for 28.3 percent of sales. Johnson & Johnson, on the other hand, ranks third with $12.2 billion in R&D spending in 2020.


Figure 4: Top 10 multinational companies' R&D investment in 2019-2020 (in billions of USD)


From the perspective of the proportion of each company's R&D investment in total revenue, Merck has the highest investment in R&D, down to Novartis, which differs very little from Merck, with 28.30% and 28.20% respectively; the least investment in R&D expenses among the top 10 companies is AbbVie, with a proportion of 14.30%.


Figure 5: R&D investment ratio of multinational Top 10 enterprises in 2019-2020 (Unit: USD billion)


The above data refer to Foresight Industry Research Institute's "China Pharmaceutical Industry Market Foresight and Investment Strategic Planning Analysis Report", while Foresight Industry Research Institute provides solutions for industry big data, industry planning, industry declaration, industrial park planning, industry investment attraction, IPO fundraising feasibility study, prospectus writing, etc.