Skip to main content Skip to footer

Billions to millions: Improving R&D productivity

October 25, 2021

4-MINUTE READ

In brief

$300B

The patient affordability gap in developed markets would be an estimated $300B by 2028.

30%

Almost 30% of US patients report not taking their medicine as prescribed due to cost.

R&D has a pivotal role to play

$6.7B

The cost of bringing a successful medicine to market is between $2.6B and $6.7B including the cost of capital and cost of failure.

7%

The rising ratio of R&D spend per each new treatment approved, has increased 7% per approval annually over the last ten years.

Biopharma should intensify their focus on three strategic plays: New Science portfolio, digital and data-led research, and faster, smarter development.

Driving billions to millions

$1.7B

Three strategic plays suggest savings of $1.2-1.7B per successful treatment.

$450M

Accenture’s model suggests it will create additional revenue opportunities of $150-450M.

Realizing value from transformation

1

Establishing enterprise-level strategy, budget, and oversight for strategic plays and enablers through redistribution of budget for the enterprise and tracking of value realization.

2

Creating asset-centered teams with the objective of delivering business and patient value. Companies will need to evolve how teams operate and align incentives to asset outcomes.

3

Assessing the current maturity of enabling capabilities and making coordinated cross-enterprise investments to be able to scale the strategic plays.

Biopharma companies are already in innovation mode. Now is the time to shift strategy and generate a new “future-fit” R&D organization.

In closing

Nicole Paraggio

MANAGING DIRECTOR – LIFE SCIENCES, R&D STRATEGY LEAD


Selen Karaca-Griffin

SENIOR PRINCIPAL – GLOBAL LIFE SCIENCES RESEARCH LEAD

Visit our Subscription and Preference Center