An analysis of the 12 largest research-based biopharmaceutical firms found that, between 2010 and 2013, these companies did not refill their drug pipelines at a sufficient rate to compensate for the new drugs released, the failure of compounds in development, and lower sales forecasts for compounds in late-stage development. Consequently, the value of their drug pipelines fell from $1,369 billion in 2010 to $913 billion in 2013. Over the same period, the number of compounds in late-stage development remained approximately 200. Between 2010 and 2013, the companies commercialized 105 products valued at $770 billion and moved 167 assets with a risk-adjusted value of $819 billion into late-stage development. However, the average cash outflow per asset related to R&D rose 28% to $923 million, and the average cash inflow per asset fell 24% to $1,927 million. Furthermore, the average cost of asset development, which includes the cost of failures, grew 18% to $1,290 million. Externally generated assets represented 64% of pipeline valuation. For all measures, individual company results varied widely.

Source: Deloitte and Thomson Reuters