Overview
The report assesses global trends in R&D activity, focusing on new drug launches, clinical trial initiations, R&D funding, and productivity enablers. It highlights the resilience and adaptability of the R&D ecosystem post-COVID-19, emphasizing the continued high value placed on innovative therapeutic research.
R&D Funding
2023 Rebound: Biopharma funding rebounded to $72 billion, up from $61 billion in 2022, although still below the pandemic peak levels.
M&A Activity: Merger and acquisition (M&A) activity surged to $140 billion from $78 billion in 2022, with notable deals in antibody drug conjugates (ADCs) and oncology.
Pharma R&D Expenditure: Large pharma companies reported a record $161 billion in R&D spending, marking a 50% increase since 2018 and representing 23.4% of net sales.
Clinical Trial Activity
Decline in Trial Starts: Trial starts decreased by 15% in 2023 compared to the previous year and were down 22% from 2021, primarily due to fewer COVID-19-related trials.
Disease Focus: The top four disease areas—oncology, immunology, metabolic/endocrinology, and neurology—accounted for 79% of trial starts. Oncology remained the dominant focus.
Geographic Shifts: The share of trial starts from China-headquartered companies increased significantly, reflecting the growing influence of Chinese biopharma in global R&D.
New Drug Approvals and Launches
Increase in NAS Launches: A total of 69 novel active substances (NASs) were launched globally in 2023, a return to pre-COVID-19 trends. The U.S. led with the highest number of NAS launches, followed by the EU4+UK and China.
First-in-Class Innovations: Significant first-in-class launches included cell and gene therapies in oncology and treatments for menopause and neurology.
Clinical Development Productivity
Improved Success Rates: Productivity in clinical development increased due to higher success rates, which rose to 10.8% in 2023 from a low of 5.9% in 2022.
Complexity and Duration: Trial complexity saw mixed results, with some reduction in the number of countries and sites involved in rare diseases and oncology trials. However, overall development timelines increased due to longer "white space" periods between trial phases.
Productivity Enablers
Regulatory Adaptations: Regulatory agencies worldwide are enhancing transparency, flexibility, and speed, although capacity constraints are delaying consistent implementation in some regions.
Innovative Trial Designs: Use of predictive biomarkers, real-world evidence, single-arm trials, and combined phases are contributing to shorter development durations.
AI and Advanced Analytics: There was a significant rise in deals involving AI, machine learning, and advanced analytics, reflecting their growing role in drug discovery and clinical trial optimization.
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According to the Global Trends in R&D 2024 report, next-generation biotherapeutics now make up 25% of the hematological-oncology pipeline. Download the latest: https://bit.ly/3xxrd7e. #RandD #PipelineLink #ArkPatentIntelligence #PharmaDeals
Director-Pharmacovigilance Solutions & Services Thought Leadership- Global Pharmacovigilance, Rare Diseases, Nuclear Medicine, General management, Vendor Management, Safety & Regulatory Ai platforms, Project Delivery
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