In 2015, worldwide pharmaceutical R&D expenditure was $149.5 billion, a 4.7% increase from 2014. R&D spending is estimated to have grown 2.8% per year, with a CAGR of 1.7% between 2008 and 2015. In 2015, the average expenditure on a new molecular entity (NME) from three years prior to its approval was $2.4 billion per NME, which is the lowest for the last eight years. This indicates an increase in R&D due to more collaboration between pharmaceutical manufacturers and regulatory agencies, as well as an increase in more efficient and productive clinical development programs. In 2015, there were 56 approved NMEs. Roche and Novartis both spent $8.5 billion in 2015 in R&D, while Johnson & Johnson spent $6.8 billion. Roche, Novartis and Johnson & Johnson are expected to increase their R&D expenditure with a CAGR of 2%, 1% and 2%, respectively, from 2015 to 2022. It is forecast that by 2022, Roche will spend the most on pharmaceutical R&D at $9.9 billion, with Novartis following closely behind at $9.2 billion and Johnson & Johnson in third place with $8.0 billion. Out of the top 20 pharmaceutical companies, Celegene and Regeneron are expected to increase R&D expenditure the most rapidly, with the companies’ R&D forecast to grow 11% each year until 2022.

Source: EvaluatePharma