1. In Vivo

Big Biotech’s ROI Overshadowed By Big Pharma But Exceptions Exist

 
• By Edwin Elmhirst

While big pharma has significantly higher R&D and acquisition expenditures, certain biotechs have outperformed in terms of ROI and have substantial potential for future growth with their strong pipeline assets.

In April 2024 Citeline’s Scrip publication reviewed the internal and external R&D inputs of the top 15 companies by sales of prescription and over-the-counter drugs in 2023.

Key Takeaways

• Big Pharma companies have a median NPV of $1.9m per million spent on R&D and deals, nearly double that of big biotech companies.

• Daiichi Sankyo, Vertex, and CSL are big biotech’s outliers when it comes to return on investment in external and internal R&D

This analysis revealed that Eli Lilly and Novo Nordisk had far and away the highest efficiency when looking at current portfolio net present value (NPV) as a measure of potential return on investment

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