R&D Budgets in 2010
For 2010, big biotech R&D spending held below double digits. Among big-name biotechs, the biggest spender was Amgen at $2.894 billion, up 7% from $2.694 in ’09. Next was Biogen Idec with $1.248 billion, down slightly from $1.283 billion a year earlier. Genzyme, which is soon to merge with sanofi-aventis, followed with $847.3 million, up slightly from 2009’s $833.85 million.
Within big pharma, Roche’s pharma unit spent $9 billion of the $10 billion set aside for corporate R&D in 2010. That’s down 5% from just over $9.8 billion the previous year, when Roche first began scrambling to cut costs following its $46.8 billion merger with biotech giant Genentech. The company axed RNAi and four research and early development sites, saying resources would go to external research partnerships and Phase II programs.
Roche ended its membership with PhRMA in 2009, soon after the Genentech deal was announced. Among members of PhRMA, R&D spending increased 6.5%, or about $3 billion, to $49.4 billion in 2010. That is 73% of the overall $67.4 billion attributed to all of biopharma.
Unlike Roche, four of the five PhRMA members with the largest R&D budgets increased their spending during 2010. Merck posted the biggest R&D spending gain within big pharma, nearly doubling its budget to $10.991 billion last year from $5.845 billion in 2009.
Pfizer’s spending climbed 21% in 2010 to about $9.4 billion from over $7.7 billion in 2009. Novartis’ expenditures for its Sandoz, vaccines, and diagnostics units rose 7.3% to $7.277 billion in 2010 compared with $6.783 billion the previous year. For GSK, R&D spending for vaccine and pharmaceutical development inched up to £3.634 billion (about $5.915 billion) from £3.624 billion (approximately $5.897 billion) in ’09. Sanofi-aventis rounds up the top-five list but saw a drop in R&D expenses last year.
These five firms together contribute about 56.57% of the total $67.4 billion in R&D spending. And while the likes of Merck, Pfizer, Novartis, and GSK may have reported bigger budgets last year, it remains to be seen whether this upward trajectory in R&D spending will continue.