Top 30 Pharmas spent $112 billion on R&D in 2013; report

The world’s leading 30 pharmaceutical companies spent a combined $112 billion on research and development in 2013, an increase of $723 million over the previous year, a new study reveals.

According to research and consulting firm GlobalData’s latest report, Switzerland’s Roche (ROG: SIX) was the R&D spending leader, outlaying nearly $10 billion in 2013. Meanwhile, fellow Swiss drug major Novartis (NOVN: VX) and the USA’s Johnson & Johnson (NYSE: JNJ) increased their R&D spend the most between 2012 and 2013, with each adding around $500 million to their respective clinics. Novartis’ R&D spending grew by 5.6% to $9.8 billion, and J&J spent $8.2 billion, which was up by 6.8% from 2012.

Adam Dion, an Industry analyst with GlobalData, says that the increase in R&D spending was partly due to drugmakers advancing their pipeline programs into later-stage clinical trials, which are generally more costly.