FOREWORD 8
WHY R&D PRODUCTIVITY IS FALLING, AND WHAT CAN BE DONE 10
Input costs are rising, and too many inputs are used per approval 10
Addressable causes of high failure rates 13
The importance of failing early … 17
Basic operating efficiency 18
The contribution of US pricing to R&D returns, and why risks to US pricing compel an urgent approach to R&D productivity 23
Addressable causes of volatility 25
THE METRICS 28
Share of R&D Spending v. Share of Pending Approvals 28
Pipeline Adequacy 29
Economic Return to R&D Spending 31
Innovation Yield to R&D Spending 35
Average Quality of Innovation 38
Development Stage Leadership 39
Phase 2 and Earlier Leadership 43
Internal Bias 45
THE RANKINGS 47
THE COMPANIES 50
AbbVie 50
Alexion 61
Amgen 70
AstraZeneca 80
Bayer 91
Biogen 101
Bristol-Myers Squibb 110
Celgene 120
Gilead 129
GlaxoSmithKline 138
Johnson & Johnson 149
Eli Lilly 160
Merck KGaA 171
Merck & Co. 180
Novo Nordisk 191
Novartis 199
Pfizer 210
Regeneron 221
Roche 230
Shire 241
Sanofi 250
Vertex 261
