Report Finds Big Pharma Increased Spending on R&D in First Half of 2023, Made R&D Investment Decisions Without Considering Impact of 2022 Drug Pricing Solutions
A recent analysis from research firm ATI Advisory shows that in the first half of 2023, Big Pharma’s research and development (R&D) investment decisions were not impacted by drug pricing solutions passed by Congress in 2022.
The report is yet another example undermining Big Pharma’s doom and gloom rhetoric claiming solutions to lower prescription drug prices will hamper innovation.
To conduct their analysis, ATI Advisory examined three main factors for 18 large pharmaceutical firms through the first six months of the year: 1) the companies’ R&D spending levels, 2) the companies’ discontinued product candidates and 3) the companies’ mergers and acquisitions (M&A) and licensing deals.
According to their analysis, ATI Advisory found that, on average, Big Pharma companies increased their R&D budgets for the first six months of 2023 by 15 percent, with some increasing them by as much as 39 percent. ATI Advisory also found that Big Pharma spent $87 billion on M&A and licensing deals through the first six months of 2023, a greater sum in six months than the $66 billion the industry spent over the entirety of 2022.
The analysis concludes by stating that “relatively few actions by large biopharma companies can be directly linked” to prescription drug pricing solutions passed by Congress in 2022. In fact, ATI Advisory notes that the U.S. market continues to be critical to the pharmaceutical industry’s success, writing that for some Big Pharma companies, “their focus on the U.S. is increasing, rather than declining.”
Read the full analysis from ATI Advisory HERE.
Read more about how Big Pharma’s innovation rhetoric doesn’t match the facts HERE.
Read about how Big Pharma’s bogus R&D scare tactics are the exact opposite of what they’re telling investors HERE.
And learn more about market-based solutions to hold Big Pharma accountable and lower prescription drug prices HERE.