IQVIA Releases Global Trends in R&D 2024: Biopharma Industry Shows Signs of Recovery Amid Rising Investment, Oncology Innovation, and China's Expanding Role

Recently, the IQVIA Institute for Human Data Science released its research report on global biopharmaceutical industry R&D in 2024, titled “Global Trends in R&D 2024.”

Report data indicate that, in terms of funding levels, the number of clinical trial initiations, drug approvals, and R&D success rates, the numerous ongoing research projects worldwide hold significant value for industry stakeholders and investors, signaling a gradual recovery trend in the global biopharmaceutical industry.

Report data indicate that biopharmaceutical companies experienced a rebound in 2023 following a significant slowdown in financing activities (covering initial public offerings, follow-on financings, and venture capital investments) during the COVID-19 pandemic in 2022. Among these, follow-on financings accounted for the largest share of overall R&D funding, reaching 38%.

Biopharmaceutical R&D Funding Rebounds Source: “Global Trends in R&D 2024”

In 2023, total R&D spending by large pharmaceutical companies climbed to a record high of $161 billion, representing an increase of nearly 50% compared with 2018.

Notably, the total R&D expenditure of large pharmaceutical companies not only reached a record high, but also accounted for 23.4% of their total spending, marking a significant increase compared to 2022. This growth is partly attributed to the decline in sales of COVID-19 vaccines and therapeutics, as well as some companies including acquisition-related R&D expenses in their expenditure categories.

R&D Expenditure of Large Pharmaceutical Companies Source: “Global Trends in R&D 2024”

In terms of M&A transactions, among the major deals announced in 2023, 31 transactions exceeded $2 billion in value, with a cumulative transaction amount reaching $200 billion, primarily concentrated in the fields of oncology, neurology, and cardiovascular metabolism.

Among these, the oncology sector dominates, accounting for 55% of the total. Six out of the 12 major oncology deals were related to antibody-drug conjugates (ADCs), representing $94 billion of the $109.6 billion in total value for significant oncology transactions. The largest single transaction was Pfizer’s $43 billion acquisition of Seagen, which was primarily driven by ADC assets.

M&A activity in the field of neurology was also quite active, accounting for 17% of total transactions. It involved four deals with a total value reaching $34 billion, led by BMS's $14 billion acquisition of Karuna (which focuses on neurological and psychiatric treatments).

In the cardiovascular and metabolic sector, a total of six deals were completed, amounting to $16.8 billion, which accounted for 8% of the total transaction value. Among these, Roche’s $3.1 billion acquisition of Carmot Therapeutics, primarily focused on obesity treatments, emerged as the largest deal in this field.

Major Deals in 2023 Concentrated in Oncology, Neurology, and Cardiovascular-Metabolic Fields | Image Source: “Global Trends in R&D 2024”

In 2023, a total of 2,357 companies worldwide initiated clinical trials, marking a significant increase from the 993 companies in 2008. During this period, Chinese companies have increasingly participated, with their share of trial initiations rising substantially from 1% in 2008 and 3% in 2013 to 28% in 2023, underscoring China’s prominent role in global pharmaceutical research and development.

The report shows that the rise in clinical development productivity across the industry is mainly due to an increase in R&D success rates, rising from historical lows.

to the highest level since 2018. Efforts to manage trial complexity and duration have yielded more complex results.

In contrast, the proportion of trials initiated by Japanese companies has declined from 11% in 2013 to 4% in 2023. The proportion for European companies has also decreased, falling from 38% in 2013 to 23% in 2023. Nevertheless, the number of trials currently initiated by European companies remains approximately two-thirds that of U.S. companies.

Number of Trials Conducted by Biopharmaceutical Companies in Major Global Regions | Source: “Global Trends in R&D 2024”

Notably, in the field of clinical trials, Chinese companies place greater emphasis on oncology and COVID-19-related research.

Proportion of Clinical Trials Conducted by Chinese Enterprises Source: "Global Trends in R&D 2024"

In 2023, rare disease trials accounted for 44% of global trial initiations, with oncology trials averaging a high of 70%. Furthermore, the number of large-population oncology trial initiations increased by 11%.

Meanwhile, the number of trial initiations in immunology, cardiovascular disease, and vaccines increased by 8%, 10%, and 12%, respectively, compared with 2022. In contrast, trial initiations in other therapeutic areas declined.

Rise in the Number of Rare Disease and Large-Sample Oncology Trials Initiated | Image Source: “Global Trends in R&D 2024”

In 2023, a total of 69 new active substances (NAS) were successfully launched globally, representing a 10% increase compared to 2022. Over the past decade, the oncology drug sector has been particularly active, with a total of 201 new drugs introduced, covering cutting-edge therapeutic modalities such as cell and gene therapies (11 agents), antibody-drug conjugates (12 agents), and bispecific antibodies (9 agents).

In the field of neurology, 68 new drugs have been developed over the past decade, with those launched in 2023 primarily targeting rare diseases such as Pompe disease, Friedreich’s ataxia, Rett syndrome, and Duchenne muscular dystrophy.

New Active Substances Launched Globally by Therapeutic Area Image Source: "Global Trends in R&D 2024"

In addition, a total of 20 new oncology drugs were successfully launched in 2023, among which 13 were designated as orphan drugs and 7 were first-in-class medicines. Seventeen of these new drugs received support through fast-track review pathways, and two achieved rapid translation from initial patent filing or first-in-human trials to market approval within five years.

New Active Ingredients Launched in the United States in 2023. Source: Global Trends in R&D 2024

Overall, despite various challenges, global research projects have demonstrated significant value and potential in terms of funding, trial initiation, and drug commercialization. Continued investment and attention from investors and the industry will further drive innovation and development in the biopharmaceutical sector.