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Pharma R&D Pipeline Value Jumps 18 Percent to $493 Billion

June 16, 2015
The pharmaceutical industry continues its impressive two-year growth with no signs of slowing down according to new consensus forecast data from the annual state of the industry report, “World Preview 2015, Outlook to 2020” from market intelligence firm, Evaluate. The report, which launched today at the 2015 BIO International Convention, found that worldwide prescription drug sales are expected to grow at 4.8 percent a year until 2020 – growth that is being fueled by the US which saw an 8.9 percent jump in sales in 2014.

The recent 18 percent increase in R&D productivity has also helped to drive the record-breaking 50 new drug approvals by the US FDA in 2014. The approval rate was up from 35 in 2013 yet the quality of the approved drugs did not slip. Of the top 10 drugs approved, eight are projected to exceed $1 billion in sales five years after launch.

While the industry continues to change, some factors remain consistent. Novartis continues to be the top-selling prescription drug company, however “big biotech” and specialty pharma are proving worthy competition against the industry’s top players.

Halfway through 2015 and the pharma and biotech industries appear to be moving in the right direction. However, for the industry to sustain this impressive growth they will have to make compromises around global pricing and market access. As such, pharmaceutical companies need to either accept lower prices for its products, or persuade payers that the therapeutic benefits outweigh the cost of disease.

Here’s a look at some of the report’s key findings:

  • Worldwide prescription drug sales to reach almost one trillion dollars by 2020

  • Key prescription drug sales increased 4.9 percent in 2014, driven by an 8.9 percent surge in US sales

  • R&D pipeline values increased to $492.8 billion from $418.5 billion in 2014; Gilead’s potential new combination hepatitis C product valued highest at $24.8 billion

  • Teva remained the leading generic drug maker in 2014 with sales of $9 billion

  • Humira remained the top-selling product in 2014 with sales of $13.9 billion; Sovaldi debuted at number two with sales of $10 billion

  • Value of M&A transactions almost doubled to $116 billion in 2014; value of venture financing deals leapt 36 percent to $8.2 billion


The complimentary report can be downloaded at www.evaluategroup.com/WP2015. A hard-copy Executive Summary of the report is available at EvaluatePharma’s booth #2111 at the 2015 BIO International Convention. Evaluate’s Head of Research, Anthony Raeside, will also be on hand to discuss the report findings at the booth.