Our app assesses R&D efficiency and efficacy in the pharmaceutical industry, focusing on major publicly traded companies between 2002-2022. It aims to assess ROI from R&D spending and FDA-approved NMEs and BLAs to gauge innovation effectiveness. Through visualizations, it provides insights into R&D investment efficiency, aiding informed decisions and strategic planning.

First interactive graph represents R&D Return on Investment (ROI) by plotting R&D efficiency—calculated as R&D spending divided by the number of FDA-approved New Molecular Entities (NMEs) and Biologic License Applications (BLAs)—against Revenue per drug, where 'Drug' refers to FDA-approved NMEs and BLAs. Each point on the graph represents a pharmaceutical company, showcasing their R&D efficiency in relation to the revenue generated per drug. This comparison offers insights into how effectively companies utilize their R&D resources relative to their drug revenue, aiding in assessing their overall R&D strategy and performance.

Second interactive graph illustrates the R&D spending trends of selected pharmaceutical companies alongside the count of FDA-approved New Molecular Entities (NMEs) and Biologic License Applications (BLAs) over a chosen timeframe. It provides a clear comparison, showcasing the correlation between R&D investments and regulatory approvals, aiding in the evaluation of R&D efficiency for each selected company.

Third interactive graph provides high level overview of Internal R&D efficiency and efficacy.
  • "Drug": Within this application, the term "drug" refers specifically to pharmaceutical products that have obtained approval from the FDA as New Molecular Entities (NMEs) and Biologic License Applications (BLAs). Generic drugs are not included in this definition. This data is sourced and extracted from the Drugs@FDA database, ensuring inclusion of only FDA-approved medications.
  • "R&D Efficiency": This metric denotes the efficiency of Research and Development (R&D) spending within pharmaceutical companies. It is calculated by dividing the R&D expenditure, sourced from the companies' 10K financial reports, by the number of FDA-approved NMEs and BLAs attributed to those expenditures. This measurement provides insights into the cost-effectiveness of R&D activities in generating approved drugs.
  • "Revenue": Revenue, as sourced from the companies' 10K financial reports, signifies the total income generated by a pharmaceutical company through its operations.
  • ROI (Return on Investment): ROI represents the financial metric used to evaluate the profitability or efficiency of an investment. In the context of this application, it assesses the return gained from R&D spending relative to the investments made in drug development.
  • Time Periods: This application allows users to explore and analyze data across different timelines of interest. The choice of 5-year periods aims to mitigate the impact of singular-year fluctuations that might occur due to the extended duration of drug development cycles. This approach enables a more comprehensive view, accounting for multi-year investments in R&D that might culminate in FDA approvals within a particular year.

It is important to note that many pharmaceutical companies analyzed in this app underwent M&A deals during the observed period, potentially impacting certain trend dynamics:
  • Merck&Co acquired Schering-Plough in 2009
  • AstraZeneca acquired MedImmune in 2007
  • Novartis AG acquired Alcon in 2010
  • Bristol Mayers Squibb acquired Celgene in 2019
  • Johnson&Johnson acquired Synthes and Actelion in 2012 and 2017 respectively
  • Abbvie became a separate entity from Abbot in 2009 and later acquired Allergan in 2020
  • TEVA Pharmaceuticals acquired Actavis in 2016
  • Boston Scientific acquired Guidant in 2006
  • Takeda Pharmaceutical acquired Shire in 2019
  • Roche acquired Genentech in 2009
  • Sanofi acquired Aventis and Genzyme in 2004 and 2011, respectively
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