Pharma R&D Innovations:Need of the Time
Global Pharma Researh & Development (R&D) spend has witnessed the annual growth rate of about 10% each year in the last three years but for next three years it is forecasted to grow annually at mere 2%. On an average, the Pharma companies annually spend 20% of their sales revenue on R&D activities. The growth in annual sales revenue will be under pressure on account of patent expiry of money spinner drugs in next couple of years. For example, patent for Lipitor (Cholesterol management drug) often referred to as billion dollar pill is set to expire next year. Inspite of the challenges, Pharma companies are planning to sustain to the almost same levels of annual R&D budget with minor yearly increase for next three to four years. Clearly there is a growing concern and strategies are being put in place to derive more mileage from R&D.
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