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The pharmaceutical innovation dilemma

Solving today’s R&D productivity challenge

Pharmaceutical innovation is facing a fundamental productivity challenge. Investment in research and development (R&D) has outpaced sales growth, but this has not increased output of new medicines. Pharmaceutical executives are seeking greater transparency in R&D decision making against a backdrop of rising hurdles for regulatory approval and reimbursement.

Despite the ever-intensifying attention these problems are receiving, the solutions that have been proposed, and in some cases implemented, have not gained broad traction or shown clear success. So how are industry executives approaching these innovation challenges?

This series of articles addresses multiple business areas and outlines innovative and distinctive solutions to current and potential industry challenges. Each article represents a snapshot of Deloitte's point of view and is intended to foster further thinking and conversation regarding innovation and R&D issues.


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Measuring the return from innovation: Is R&D earning its investment?

Against a backdrop of rising costs and declining output, R&D leaders in the life sciences industry are under continued pressure to justify the investment in R&D. The new Deloitte U.K. Center for Health Solutions and Thomson Reuters collaborated in producing this annual review of R&D returns in life sciences.