U.S. pharmaceutical R&D expenditure 2024| ��ƽ��

Research and development expenditure of total U.S. pharmaceutical industry from 1995 to 2024 (in billion U.S. dollars)

Characteristic	Total pharmaceutical industry *	PhRMA member companies
2024**	-	104.3
2023**	-	96
2022**	-	100.8
2021**	-	102.3
2020**	-	91.1
2019**	-	83
2018**	-	79.6
2017**	-	71.4
2016**	-	65.5
2015**	-	59.6
2014**	-	53.3
2013**	-	51.6
2012**	-	49.6
2011**	-	48.6
2010	67.4	50.7
2009	65.9	46.4
2008	63.7	47.4
2007	63.2	47.9
2006	56.1	43
2005	51.8	39.9
2004	47.6	37
2003	-	34.5
2002	-	31
2001	-	29.8
2000	-	26
1999	-	22.7
1998	-	21
1997	-	19
1996	-	16.9
1995	-	15.2

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Release date

July 2025

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Region

United States

Survey time period

1995 to 2024

Supplementary notes

This statistic was assembled from several editions of the same report.
Including PhRMA and non-PhRMA members until 2010.
* Figure for total pharma estimated.
** No data available for total pharma since 2011.

Citation formats

The Pharmaceutical Research and Manufacturers of America (PhRMA) trade group represents the leading biopharmaceutical research companies in the United States. In 2024, the research and development (R&D) expenditure of its member companies reached some 104 billion U.S. dollars worldwide.

How much does the pharmaceutical industry spend on R&D relative to revenue?

The development of a new drug costs around 2.6 billion U.S. dollars and can take up to 15 years. In relation to sales, the pharmaceutical sector invests more money in R&D than many other industries: PhRMA members spent some 21 percent of their combined global revenues on R&D in 2024 – this share was slightly lower when only considering the sales and R&D expenditure from the domestic market of the United States.

Charting the rise of R&D expenditure

Founded in 1958, PhRMA is headquartered in Washington, D.C. and has offices located around the United States. The group’s members collectively invested two billion U.S. dollars into the research and development of medicines worldwide in 1980, but by the start of the 2020s, this figure had increased to over 100 billion U.S. dollars.