Assessment of Pharmaceutical Research and Development Productivity with a Novel Net Present Value-based Project Database

Title
Assessment of Pharmaceutical Research and Development Productivity with a Novel Net Present Value-based Project Database

Abstract
To establish measures for improving the productivity of pharmaceutical R&D, we tested the academic efficiency of PharmaPipelines, a comprehensive database covering 77 companies worldwide for all observable pharmaceutical development projects. We found that the present database is sustainable for academic validation in terms of coverage and prediction accuracy through statistical validation. On reviewing project value allocations, the valuebased assessment results provided essential implications as compared to conventional volume-based assessment, particularly for consolidated project value allocations for pharmaceutical and biotech companies with large market capitalization throughout the developmental phases. Furthermore, we confirmed that R&D productivity and scale are inversely proportional and clustering of the distribution pattern by company category. These observation results were obtained on the basis of economic value and are therefore expected to be valuable for strategic R&D planning at company level as well as providing a quantitative foundation for planning and validation of industrial research policies.