Volume 94 Issue 5 | p. 10 | News of The Week
Issue Date: February 1, 2016 | Web Date: January 29, 2016

Return On Pharma R&D Spending Hits New Low In 2015

Analysis: Increasing costs, declining drug sales puts 2015 R&D payback at six-year low
Department: Business
Keywords: pharmaceuticals, R&D, investment

Every silver lining has its cloud. Although FDA’s approval of 45 new drugs in 2015 is an almost two-decade high, the returns that large pharmaceutical companies generated from their R&D investments hit a new low. In 2015, the average rate of return fell to 4.2% from 10.1% in 2010, according to the Deloitte Centre for Health Solutions.

Deloitte, a consulting firm, factored in development costs and . . .

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