Worldwide R&D Spend by Pharma & Biotech part 1 of 2 Companies (2010-2024) Forecast worldwide R&D CAGR lower in 2018 through 2024 and years. This reduction in R&D spend could be an indication proportion of R&D spend to pharmaceutical revenue to reduce. that companies are investing now to improve their future R&D Worldwide pharmaceutical R&D spend totalled $179bn in 2018 e昀케ciencies. Use of real world data combined with machine representing an increase of +6.5% on the previous year. Going learning techniques in addition to collaborative R&D programs, forward, R&D spend is forecast to grow at a CAGR of 3.0% between are a few of the initiatives being employed by companies to help 2018 and 2024. This is comparable with a CAGR of 4.2% between them stay one step ahead in an era demanding more patient 2010 and 2018, with an average proportion of R&D spend to targeted drug development. Similarly, this reduction in R&D spend pharmaceutical revenue for the same period of 19.8%, compared to could be an indication that less revenue is being directed towards 20.2% for 2018-24. Despite an initial peak in 2019, the proportion of replenishing pipelines. R&D spend to pharmaceutical revenue falls quickly in subsequent Figure 6: Worldwide Total Pharmaceutical R&D Spend in 2010-2024 Source: EvaluatePharma, May 2019 220 +16% 200 207 213 202 +14% 180 189 196 160 179 182 +12% 168 +3.0% CAGR 2018-24 140 160 +10% 145 150 120 137 136 138 +8% 129 +6.2% +4.2% CAGR 2010-18 +6.7% +6.5% 100 +6% +4.4% 80 +5.1% +4% 60 +4.0% R&D Spend Growth (%) WW Pharma R&D Spend ($bn) +1.8% +3.7% +3.5% +3.2% 40 +2.8% +2.7% +2% +1.6% 20 +0% 0 -0.4% -2% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 ® 17 EvaluatePharma World Preview 2019 Copyright © 2019 Evaluate Ltd. All rights reserved.