Pharmaceutical global R&D was 7.9 percent of sales in 2010

Using industry assertions of R&D spending, pharmaceutical related R&D spending by the private sector was less than 8 percent of global sales in 2010.


These are the data:

2010 Global R&D by all private companies: – $67.4 billion
Source: Page 2 of the 2011 PhRMA industry profile

2010 Global sales – $856 billion
Source: IMS Health Market Prognosis, March 2011

R&D / Sales = 0.078738318

How much of the 7.9 percent invested in R&D is invested in the development of new products that are medically important? Given the small number of FDA priority NCE approvals, that number is significantly lower.


James Love

Director of Knowledge Ecology International, from the Washington, DC office.