Research and development innovation is the lifeblood of the pharmaceutical sector but in a highly competitive market returns are hard won. Our 15th annual detailed analysis, in Measuring the return from pharmaceutical innovation: Be brave, be bold, shows an upward trajectory with the IRR increasing from 4.3% in 2023 to 5.9% in 2024. This positive trend is driven largely by new high-value blockbuster assets entering the late-stage pipeline, particularly for therapies addressing obesity, menopause, Alzheimer’s, and other unmet needs.

However, maintaining this momentum requires bold action.

This year's report highlights the need to shift away from crowded therapeutic areas and embrace novel mechanisms of action. Why? Because our research shows that groundbreaking innovation, not incremental progress, is the key to unlocking higher returns and addressing unmet patient needs.

Our comprehensive analysis of the top 20 pharmaceutical companies worldwide explores the strategies to increase IRR from scaling technological advancements to investing in novel MoAs and targeting assets through earlier M&A. We also share four key actions for biopharma leaders to consider as they embrace bold innovation and strategic portfolio management.

Deloitte partners Colin Terry and Kevin Dondarski will be joined by Nigel Trotman, CFO of Development at Novartis to explore the research findings and implications for biopharma organisations.