McKinsey July 31, 2024
Productivity in biopharmaceutical R&D has slumped for a decade or more. We propose a recipe for sustainable, value-creating innovation, even in the face of strengthening industry headwinds.
The global biopharmaceutical industry is coming to grips with an uncomfortable reality: after adjusting for the one-off returns generated by COVID-19 vaccines and therapeutics, R&D productivity has been anemic over the past decade, barely recouping the full value of capital invested. This has been the case whether it’s pipeline attrition rates, development timelines, or the costs of clinical trials. And productivity is well below what it was during the glory days of the late 1990s. Of course, there have been bright spots, but the industry has largely failed to make systemic gains (Exhibit...
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