The profits of Swedish pharmaceutical companies linked to research and development, (R&D) this year landed at 5.5 percent, an increase from 5.1 percent last year and it is the first time there was an increase since 2010.
This is according to a new study in which the 12 largest life science companies ‘ spending on R&D in relation to profit from their innovations was investigated.
The study shows, among other things, that the 12 companies since the year 2010 together have launched 143 new products. These products are expected to be able to bring to the companies about $955 billion each, during his time on the market. During the same period, companies had 236 products move into late stage, according to the report. These are expected to bring companies the equivalent $817 billion US dollars if they reach the market.
The report also indicates that the benefits of R&D varied greatly between the different companies. The results were affected by company size; larger companies are earning less on R&D as a result of higher costs for business. In addition, profit prospects increased, the more companies engaged in external innovation and if they had a more focused portfolio with fewer strategic areas.
Along with the benefits, R&D also increases the cost of developing new medicines, according to a representative from Deloitte.
The study was carried out by Deloitte along with consulting company Global Data.