A New Look at R&D Productivity: How small changes to key levers can dramatically impact cost per output

Pharmaceutical company R&D productivity has long been a topic of concern among industry analysts. A variety of modelling approaches are possible, addressing R&D efficiency aspects, product value aspects, or combinations thereof; however, there are no agreed standard metrics for productivity and many reported analyses provide limited opportunity for companies to take tangible action on R&D performance.

This white paper explores an important aspect of R&D productivity: the attrition-loaded cost of achieving a new product approval. In addition to examining trends and between-company differences, this paper illustrates and quantifies dramatic R&D efficiency gains that can be achieved through precedented levels of improvement in underlying levers.

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