Pharma R&D Investment Strategies for Success in 2025
With the pharmaceutical industry seeing significant returns on research and development investments, companies are looking for ways to maintain this momentum in 2025. One key trend driving R&D success is the focus on novel mechanisms of action. According to a recent Deloitte report, around 40% to 50% of pipelines are associated with new MOAs, accounting for close to 70% of forecasted value. This emphasis on innovation highlights the industry’s commitment to driving growth through groundbreaking therapies.
Despite the importance of transformative innovation, some biopharma executives still prioritize sustaining innovation over novel compounds. However, balancing both approaches is crucial for long-term success. By investing in a mix of sure bets and riskier, disruptive programs, companies can position themselves for sustainable growth and innovation.
Another strategy for maximizing R&D returns is strategic dealmaking. External collaborations and acquisitions play a significant role in driving late-stage pipeline success, with 61% of assets sourced externally in 2024. Companies are increasingly looking to source innovation earlier in the value chain, from early clinical to late research stages. By creating novel deal structures and leveraging external expertise, companies can accelerate the development of cutting-edge therapies.
Furthermore, playing to existing strengths is essential for R&D success. Companies that focus on therapeutic areas aligned with their capabilities tend to outperform in the market. Strategic transactions should enhance existing strengths rather than dilute them with unrelated ventures. Similarly, in drug development, companies should concentrate their efforts on a few key therapeutic areas where they have a competitive advantage.
In conclusion, the pharmaceutical industry’s R&D landscape in 2025 is characterized by a focus on innovation, strategic dealmaking, and leveraging existing strengths. By prioritizing novel mechanisms of action, engaging in strategic collaborations, and capitalizing on core competencies, companies can position themselves for continued success in a rapidly evolving market.
