External R&D Is Up, But Which Companies Are Reaping The Most Benefit?

Amgen, Novartis and Lilly are projected to increase sales from externally sourced assets in the coming years, according to a Datamonitor Healthcare analysis, while other big pharma – including frequent acquirer Pfizer and smaller-deal-oriented Bristol – are expected to see that ratio decline compared to sales of internally developed drugs.

External sourcing of pipeline assets is increasing overall within big pharma, but there is significant variation among the sector's companies, according to a new report from Datamonitor Healthcare. Amgen Inc., Novartis AG and Eli Lilly & Co. are expected to experience the most significant increases in externally sourced product sales, while such revenue is expected to decline sharply at Bristol-Myers Squibb Co., Bayer AG, Merck & Co. Inc. and Pfizer Inc.

The Pharma Externalization Strategies 2016: Externalization Is Critical to Pharma Revenue report, published Sept. 13, notes that co-developed and acquired...

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