The bio-/pharmaceutical industry is one of the most research-driven in the world, and its high R&D intensity has long been recognized. In 2024, the leading pharmaceutical and biotechnology company was Allogene Therapeutics, with an R&D intensity of percent.
What is R&D intensity?
R&D intensity is calculated by taking a company’s R&D expenditure and dividing that figure by its sales. For smaller companies, the investment can be a very high proportion of their sales. However, established larger companies can recoup their R&D investment through sales income. In 2024, Swiss company Novartis spent around billion U.S. dollars on R&D and had revenues of billion U.S. dollars. This resulted in an R&D intensity for the year of around20 percent.
R&D holds the key
Discovering innovative, life-changing medicines can require substantial investment. In 2025, the global pharmaceutical industry spent approximately billion U.S. dollars on R&D, and forecasts predict an annual expenditure of over billion U.S. dollars by 2030. All the big pharma companies are expected to continue investing significant amounts in R&D projects in the future.
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