Reassessing R&D outcomes of leading pharmaceutical companies.

This analysis investigated 118 new drugs approved by the FDA for leading pharmaceutical companies between 2002 and 2012 and their commercial outcome through 2024. Focusing on R&D effectiveness, we found that 67% generated sufficient revenues to recover estimated standard R&D costs. R&D profitability varied by sourcing strategy, orphan drug designation status and therapeutic area, whereas therapeutic novelty and regulatory innovativeness showed no meaningful difference. Overall, the findings indicate that R&D productivity of large pharmaceutical companies might be more effective than previously assumed. Thus, the insights highlight the importance of strategic choices in shaping R&D productivity, with implications for aligning of R&D strategy and R&D models.