In its June World Preview 2018, EvaluatePharma forecasts the compound annual growth rate (CAGR) of global R&D spending by drug firms to reach $149 billion. R&D spending 2004–2010 grew at a CAGR of 6.5% to $128 billion. Year over year, the rate of R&D spending is expected to drop 0.3% in 2012 to $134 billion and grow 1.4% in 2013 to $136 billion. R&D spending on generics is expected to increase its share of drug R&D from 51% in 2011 to 64% in 2018. Among the top 20 drug firms, Novartis is expected to maintain its position as the biggest R&D spender through 2018, increasing 2011–2018 spending at a CAGR of 2% to $10.1 billion. Rounding out the five biggest R&D spenders through 2018 are Roche, Merck, GlaxoSmithKline and Pfizer. However, the CAGRs of Merck’s and Pfizer’s R&D spending are expected to fall less than 1% and 3% from 2011 to 2018, respectively, along with the CAGRs of four other top 20 firms: Eli Lilly, AstraZeneca, Boehringer Ingelheim and Amgen, with declines of 1%, 3%, 1% and 1%, respectively.

Source: EvaluatePharma