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On the balance between innovation and efficiency, the giants are engaged in a silent struggle. The 2024 financial reports of pharmaceutical giants have been released, and the numbers on R&D investment are not just dry financial metrics, but often reflect corporate strategies, technological battles, and undercurrents in the market. Merck saw a sharp 41% decrease in its R&D investment, but with an investment of $17.9 billion, it remains at the top. Behind this steep drop lies changes in pipeline and acquisition strategies; AbbVie, on the other hand, entered the top five with a 66.7% aggressive growth, completing a self-revolution... This is the annual global experiment of “where the money goes”: some companies cut early pipelines to avoid risks, while others acquire billions in assets to leap forward in technology. The fluctuations in R&D investment are, in fact, the bidding for future dominance among pharmaceutical giants and a barometer of the innovation drug wave.
In 2024, Merck's R&D investment decreased by 41%, but it still ranks first among pharmaceutical giants with an investment of $17.938 billion. This significant decrease is mainly related to acquisitions and the optimization of R&D efficiency. In 2023, Merck's R&D spending surged due to the $10.8 billion acquisition of Prometheus Biosciences and a $22 billion deal with Daiichi Sankyo for ADC drugs. In 2024, there were no acquisitions of similar scale. Internally, Merck focused on optimizing R&D efficiency, reducing redundant investments in early-stage projects, and concentrating resources on later-phase clinical projects in key areas like ADC.
In oncology, investments in Trop2 ADC, HER3 ADC, and combination therapies have high priority. In 2024, Merck announced that the Phase III study for a new subcutaneous formulation of Keytruda (pembrolizumab) was successful, shortening the administration time to 2-3 minutes. Keytruda, in combination with Nectin-4 ADC drug Padcev, was approved for first-line treatment of urothelial carcinoma, becoming the first "PD-1+ADC" combination therapy.
Currently, HER3 ADC MK-1022 is in the market filing stage, used for treating adults with locally advanced or metastatic EGFR-mutated non-small cell lung cancer (NSCLC) who have received two or more prior systemic therapies. Trop2 ADC MK-2870 has received breakthrough therapy designation for triple-negative breast cancer and EGFR-mutated NSCLC. Merck strengthened its ADC technology platform through the $208 million acquisition of Abceutics. Meanwhile, the company has introduced external innovations through collaborations and licensing, such as acquiring the PD-1/VEGF dual antibody LM-299 from Lixin Pharmaceuticals to reduce the risk of in-house R&D.
In the vaccine field, HPV vaccine Gardasil/Gardasil 9 saw a decline in sales in 2024 due to market saturation in China. Merck announced in January that the male indication for the vaccine was approved in China, viewed as an important strategy for market expansion. Due to weak demand for HPV vaccines in China and intense competition from domestic manufacturers, Merck plans to suspend the supply of Gardasil to the Chinese market until mid-2025, while actively promoting the development of multi-valent HPV vaccine iterations to face the competition.
The candidate drugs for ulcerative colitis and Crohn's disease acquired from Prometheus Biosciences have entered late-stage clinical trials. In cardiovascular and metabolic diseases, oral PCSK9 inhibitors and GLP-1R/GCGR dual agonists are expected to release key data in 2025. Merck is also trying to enter the weight-loss drug market.
Overall, although Merck's R&D investment saw a significant decrease in 2024, it has maintained a certain level of innovation competitiveness by focusing on strategic collaborations in core areas like oncology and vaccines, expanding its pipeline and indications. In the future, Merck will need to address patent expirations and competition in emerging markets, while improving R&D efficiency through technological innovation. Attention should be paid to the commercialization progress of its ADC drugs and the clinical data disclosures for new drugs in metabolic and other fields.
In 2024, Johnson & Johnson's total R&D investment was $17.232 billion, an increase of 14.41% from $15.085 billion in 2023. The growth in R&D investment was driven by two main factors: on the one hand, the acceleration of clinical trials in areas like oncology, immune diseases, and cardiovascular diseases, and on the other, external deals and integrations such as the acquisition of V-Wave and the Yellow Jersey (NM26 bispecific antibody) transaction, which added about $1.8 billion in external IPR&D expenditures to the R&D costs.
In 2024, Johnson & Johnson's R&D investment focused on oncology, immune diseases, and cardiovascular diseases, with positive progress in these areas. In oncology, Johnson & Johnson released the latest data from the Phase III MARIPOSA study, which showed that Rybrevant (amivantamab) combined with the third-generation EGFR inhibitor Lazertinib significantly improved progression-free survival (PFS) compared to osimertinib in high-risk EGFR-mutated locally advanced or metastatic non-small cell lung cancer (NSCLC) patients.
In immunology and inflammation, Tremfya (guselkumab, IL-23 monoclonal antibody) has submitted applications for new indications in moderate to severe plaque psoriasis for children aged 6 and above, active juvenile psoriatic arthritis for children aged 5 and above, and a subcutaneous regimen for ulcerative colitis. Nipocalimab has received priority review from the US FDA for the treatment of severe myasthenia gravis and breakthrough therapy designation for moderate to severe Sj?gren's syndrome.
In cardiovascular and metabolic diseases, Spravato (esketamine) was approved by the US FDA as a monotherapy for treatment-resistant depression (TRD), filling a market gap.
Other factors influencing R&D investment include the advancement of Posdinemab for Alzheimer's disease and the Tau active immunotherapy, which has now obtained FDA Fast Track status.
Roche, which had ranked first in R&D investment for ten consecutive years, started to decline to third place in 2023, and the ranking remained unchanged in 2024, with R&D investment at CHF 13.042 billion (approximately $14.852 billion), accounting for 21.6% of total revenue. This is a slight decrease compared to CHF 13.237 billion (approximately $14.795 billion) in 2023. After several clinical failures in 2022, Roche has adopted a more cautious approach in the past two years, choosing to selectively advance Phase III trials to reduce the risk of failure.
In 2024, Roche saw several products make positive progress in late-stage clinical trials.
Itovebi extended the progression-free survival (PFS) of PIK3CA-mutant HR+/HER2- breast cancer patients to 15 months in the Phase III INAVO120 study, reducing the risk of disease progression by 57%. As one of the most selective PI3Kα inhibitors, Itovebi is expected to fill the revenue gap in Roche's breast cancer portfolio due to the expiration of Herceptin's patent.
PiaSky is Roche's important strategy in the complement drug field, challenging the market dominance of Alexion's Soliris/Ultomiris with a more convenient subcutaneous administration. It was shown to be non-inferior to eculizumab in two Phase III COMMODORE studies and was approved in 2024 in both the US and EU, becoming the first subcutaneous therapy for PNH.
Roche reduced investment in ten projects, mostly in Phase I, including a large-scale reduction in the clinical project for TIGIT antibody tiragolumab. The Phase II/III SKYSCRAPER-06 study failed to meet the primary endpoint, and the Phase III first-line treatment study for lung cancer (SKYSCRAPER-01) also failed to achieve the overall survival endpoint in the final analysis.
Currently, tiragolumab still has five Phase III studies ongoing, but early-stage research setbacks may lead Roche to reassess its resource allocation, reduce investment in short-term challenging projects, and shift focus to further R&D support for successful products (like Vabysmo and Phesgo) and the market promotion of newly approved products (like Itovebi) to ensure that R&D investments continue to bring economic benefits and market competitiveness.
Roche's R&D investment in 2024 has not seen a significant increase, but it is attempting to rebuild its advantages in oncology, autoimmune diseases, and metabolism through product strategy (such as PI3Kα, TL1A, and GLP-1) and strategic acquisitions (Poseida, TL1A equity). Whether its R&D investment will return to the top of the list will depend on the clinical translation efficiency of its late-stage pipeline and the ability to integrate business development (BD) opportunities.
In 2024, AstraZeneca's R&D expenditure reached $13.583 billion, up 24.2% from $10.935 billion in 2023. This increase was mainly driven by clinical trial progress in oncology, cardiovascular, renal and metabolism (CVRM), respiratory and immunology (R&I), and rare diseases, as well as new drug launches and investments in external technology platforms (e.g., ADC and cell therapies).
In 2024, AstraZeneca completed 9 Phase III clinical trials with high commercial potential.
Additionally, AstraZeneca's rare disease drug Koselugo is conducting the KOMET study for adult-type neurofibromatosis type 1-associated plexiform neurofibromas (NF1-PN), aiming to expand to the clinical unmet needs of adult patients. AZD0486 (CD19/CD3 bispecific antibody) for follicular lymphoma (FL) entered Phase III development, with the goal of replacing traditional chemotherapy. Complement factor D inhibitor vemircopan (ALXN2050) has discontinued development for systemic severe myasthenia due to efficacy issues.
In 2025, AstraZeneca will reach multiple regulatory milestones and disclose Phase III study data. The company is strengthening its leadership in oncology, respiratory, and rare diseases and advancing toward its goal of launching 20 new molecular entities by 2030.
In 2024, AbbVie saw a 66.7% increase in R&D expenditure, reaching $12.791 billion, up from $7.675 billion in 2023, propelling the company into the global top five for R&D spending.
This year, AbbVie completed acquisitions of Nimble Therapeutics and Aliada Therapeutics, and formed collaborations with multiple companies (e.g., EvolveImmune, Neomorph), leading to a significant rise in intangible asset amortization ($762 million) and acquisition integration costs ($1.061 billion).
The substantial R&D spending drove AbbVie’s positive progress, but some trials did not meet expectations.
Aside from the mentioned deals, AbbVie completed the acquisition of ImmunoGen (Elahere) in February, directly contributing to ovarian cancer drug revenues. Additionally, collaborations with EvolveImmune and Neomorph are enhancing its pipeline in oncology and immunology with bispecific T cell engagers and tumor and immune disease drug development.
In 2024, BMS's R&D expenditure reached $11.159 billion, a year-on-year increase of approximately 20% from $9.299 billion in 2023. Last year, BMS made significant progress in various product areas, particularly in oncology, hematology, cardiovascular, and immunology.
In oncology, Opdivo (nivolumab) achieved several milestones in 2024. The FDA approved Opdivo Qvantig (nivolumab and hyaluronidase) for subcutaneous treatment of multiple solid tumors. Augtyro (repotrectinib) was approved in the EU for ROS1-positive advanced non-small cell lung cancer and NTRK gene fusion solid tumors.
Furthermore, the Opdivo-Yervoy (ipilimumab) combination therapy was filed in Europe for new indications, including unresectable or advanced hepatocellular carcinoma (HCC) in patients who had not received systemic treatment. BMS also released new data from the CheckMate-8HW trial, showing that the Opdivo-Yervoy combination significantly improved progression-free survival (PFS) in MSI-H or dMMR metastatic colorectal cancer patients.
BMS's CAR-T cell therapy Breyanzi (lisocabtagene maraleucel) showed durable efficacy in relapsed/refractory large B-cell lymphoma. The EMA has recommended approval for Breyanzi for treating relapsed/refractory follicular lymphoma (FL). BMS is expanding the indication and expects to apply it in more hematologic malignancies in the future.
In cardiovascular, the EMA approved a label update for Camzyos, allowing reduced ultrasound monitoring frequency for patients with stable doses of obstructive hypertrophic cardiomyopathy (oHCM).
In immunology, Sotyktu (deucravacitinib) achieved the primary endpoints in Phase III trials for active psoriatic arthritis (PsA), showing significant efficacy compared to placebo.
In neurology, Cobenfy was approved by the FDA in 2024 for adult schizophrenia treatment. Long-term follow-up data showed good tolerability and sustained efficacy, with 69% of patients achieving a ≥30% improvement in symptoms at the 52-week mark (based on PANSS total score).
In terms of transactions, BMS completed the acquisition of Karuna Therapeutics, gaining its schizophrenia drug Cobenfy (xanomeline and trospium chloride), which added a new R&D pipeline and increased IPR&D expenses. The acquisition of RayzeBio further expanded BMS’s R&D capabilities in radioactive drug development. The collaboration with SystImmune also brought new opportunities in tumor immunotherapy.
Between 2025-2027, BMS will be releasing significant clinical data, which will act as catalysts for the company’s business.
2024 Pharmaceutical R&D Investment Overview
In 2024, Eli Lilly's R&D investment was $10.991 billion, an 18.02% increase from $9.313 billion in 2023, accounting for 24.4% of the company's total revenue. The significant increase in R&D investment is attributed to key progress in diabetes, obesity, oncology, and neurodegenerative diseases.
In the fields of diabetes and obesity, Zepbound was approved in the U.S. for the treatment of moderate to severe obstructive sleep apnea (OSA) in adult obese patients, and it showed a 47% relative weight loss advantage in the head-to-head SURMOUNT-5 trial compared to Wegovy.
In oncology, the non-covalent BTK inhibitor BRUIN CLL-321 showed positive results, with Pirtobrutinib demonstrating significant efficacy in CLL/SLL patients previously treated with covalent BTK inhibitors. Compared to idelalisib + rituximab or bendamustine + rituximab, Pirtobrutinib reduced the risk of disease progression or death by 46%. In the EMBER-3 study, Imlunestrant as a monotherapy significantly reduced the risk of disease progression or death in ER+, HER2- metastatic breast cancer patients, particularly those with ESR1 mutations.
Additionally, Muvalaplin, an oral selective lipoprotein(a) [Lp(a)] inhibitor, showed significant effects in lowering Lp(a) levels in Phase II trials. Kisunla (donanemab) was approved in China for the treatment of early symptomatic Alzheimer's disease. Omvoh (mirikizumab, IL-23 monoclonal antibody) was approved in the U.S. for the treatment of moderate to severe active Crohn's disease and has received a recommended approval from the European Medicines Agency.
In terms of acquisitions, Eli Lilly acquired Scorpion Therapeutics' selective PI3Kα inhibitor program, further expanding its oncology R&D pipeline. The project STX-478 is currently in Phase I/II clinical trials.
In 2024, Pfizer's R&D investment was $10.822 billion, a 1.34% increase from $10.679 billion in 2023. R&D spending accounted for 17% of the company's total revenue ($63.627 billion), remaining largely consistent with 2023 while maintaining a steady R&D intensity with a 7% growth in revenue.
In 2024, Pfizer focused its R&D resources on core areas such as oncology, vaccines, and inflammation & immunology.
After acquiring Seagen for $43 billion at the end of 2023, Pfizer strengthened its ADC pipeline. Several ADC projects from Seagen achieved breakthroughs in 2024: Adcetris (brentuximab vedotin) in combination with lenalidomide and rituximab was approved by the FDA as a new treatment for adult patients with relapsed or refractory large B-cell lymphoma (LBCL) after two or more lines of systemic therapy and ineligible for autologous hematopoietic stem cell transplantation or CAR-T therapy.
Enfortumab Vedotin in combination with Keytruda is undergoing two Phase III trials (EV-303, EV-304) to assess the combination therapy compared to standard treatments for cisplatin-tolerant muscle-invasive bladder cancer, with regulatory submissions expected in 2025. Sigvotatug vedotin (IB6 ADC) for PD-L1-high expression non-small cell lung cancer (NSCLC) has entered Phase III clinical trials.
Additionally, the BCMA-CD3 bispecific antibody ELREXFIO? showed better survival benefits compared to existing therapies in the Phase II MagnetisMM-3 study in multiple myeloma. Braftovi (encorafenib) in combination with cetuximab and mFOLFOX6 in the Phase III BREAKWATER trial for metastatic colorectal cancer (mCRC) patients with BRAF V600E mutation yielded positive preliminary results in progression-free survival (PFS) improvement.
In the vaccine area, RSV vaccine ABRYSVO? was approved by the FDA for use in adults aged 18-59, extending to a wider age group.
Pfizer plans to save $4.5 billion by the end of 2025 through its "cost restructuring program," part of which will be used to support high-priority pipelines (such as ADCs and GLP-1).
In 2025, Pfizer expects 4 regulatory decisions, 9 Phase III data readouts, and 13 key trial initiations. Overall, through strategic acquisitions and external collaborations, Pfizer has built a differentiated pipeline in oncology and metabolic diseases, and although the increase in R&D investment in 2024 was modest, the focus on high-potential areas sets the foundation for long-term growth.
In 2024, Novartis' R&D investment decreased by approximately $1.349 billion (an 11.86% drop) compared to 2023.
Novartis continued to focus on four core therapeutic areas (cardiorenal and metabolic diseases, immunology, neuroscience, and oncology) and three emerging technology platforms (gene and cell therapies, radioligand therapies, and xRNA). Key progress in 2024 includes:
In oncology, the radioligand therapy Pluvicto? for prostate cancer showed clinical benefit in the final overall survival (OS) analysis of the Phase III PSMAfore study, supporting its potential as a front-line therapy. Scemblix? for chronic myeloid leukemia (CML) in the Phase III ASC4FIRST study showed superior results compared to existing TKI therapies, and it received FDA accelerated approval for newly diagnosed Ph+ CML-CP adult patients.
In immunology, Novartis is expected to release Phase III data for Cosentyx (secukinumab, IL-17A monoclonal antibody) in giant cell arteritis and polymyalgia rheumatica in 2025.
In neuroscience, Novartis, in collaboration with PTC Therapeutics, is developing an oral treatment for Huntington's disease, votoplam (PTC518), and expects to release mid-stage results from the Phase II PIVOT-HD study in 2025. The spinal muscular atrophy gene therapy OAV101 IT met its primary endpoint in the Phase III STEER study, and Novartis plans to submit it for approval in 2025.
In cardiorenal and metabolic diseases, the complement factor B inhibitor Fabhalta (iptacopan) showed significant effects in reducing proteinuria in the Phase III APPEAR-C3G study for C3 glomerulopathy, with a potential FDA approval expected in 2025.
In terms of mergers and acquisitions, Novartis had net cash outflows of $6.3 billion in 2024, including the acquisition of Kate Therapeutics for its AAV gene therapy platform to advance neuromuscular disease therapies, and collaborations with Ratio Therapeutics and PTC Therapeutics.
Overall, Novartis saw a 330bps improvement in core operating profit margin to 38.7% in 2024, balancing R&D investment with commercial returns. The company has 15 key studies entering regulatory filing stages and over 30 assets with long-term growth potential. Despite facing patent cliff pressures, its core products (such as Kesimpta? and Kisqali?) and emerging assets (such as Fabhalta? and votoplam) provide a strong foundation for mid- to long-term growth.
In 2024, GlaxoSmithKline (GSK) entered the top 10 pharmaceutical giants in terms of R&D investment, reaching ￡6.401 billion (approximately $8.186 billion), a 5.76% increase compared to ￡6.223 billion (approximately $7.740 billion) in 2023.
In 2024, GSK achieved 13 positive Phase III results across the respiratory, immunology & inflammation, oncology, HIV, and infectious diseases areas.
The Phase III CALM-1/2 studies for the treatment of refractory chronic cough with Caminipixant are ongoing, with data expected in 2025. The long-acting anti-IL-5 monoclonal antibody depemokinab achieved positive results in Phase III trials for severe asthma and chronic rhinosinusitis with nasal polyps (CRSwNP) and has been submitted for regulatory approval in multiple countries. Nucala (mepolizumab, IL-15 monoclonal antibody) achieved the primary endpoint in the Phase III MATINEE study for COPD, with an FDA filing accepted in December for this indication.
For HIV, the strong demand for long-acting injectable medications (e.g., Cabenuva) has driven a 13% growth in the HIV business. Next-generation long-acting prevention treatments (e.g., four-month injection regimens) are now in the registration trial phase.
In oncology, Blenrep (BCMA ADC) showed significant survival benefits in the DREAMM-7/8 studies, with DREAMM-7 demonstrating a significant extension of overall survival (OS) and a 42% reduction in the risk of death. It has received Priority Review from the U.S. FDA and Breakthrough Therapy Designation from the NMPA. Jemperli (PD-1 monoclonal antibody) received EU approval for expanded indications in endometrial cancer for MMR/MSS patients and achieved 100% disease-free survival in a Phase II rectal cancer trial. It has received Breakthrough Therapy Designation from the U.S. FDA for dMMR/MSI-H rectal cancer. The Phase III FIRST study for Zejula (PARP inhibitor) achieved the primary endpoint of progression-free survival (PFS), and GSK is exploring its combination therapies in ovarian and lung cancers.
Additionally, the RSV vaccine Arexvy has been approved in Japan for high-risk individuals aged 50-59, with Phase III studies expanding to high-risk and immunocompromised populations aged 18-49. GSK continues to actively advance its pneumococcal multi-antigen presentation system (MAPS) and new vaccine platforms.
Strategic acquisitions have driven innovation through collaborative R&D. In 2024, GSK announced the acquisition of IDRx, gaining the anti-cancer drug IDRX-42 (a tyrosine kinase inhibitor) to complement its oncology pipeline. The transaction has been completed. GSK also acquired Aiolos Bio to introduce long-acting TSLP inhibitors (for asthma), accelerating innovation in the respiratory field, and Elsie Biotechnologies to enhance its oligonucleotide therapeutic platform, positioning GSK for the next generation of gene therapies.
By focusing on high-potential areas (such as ADCs and long-acting therapies) and strategic acquisitions, GSK is strengthening its competitiveness in oncology, respiratory, and vaccine fields. The company is expected to improve its R&D return rates through pipeline results. Currently, 71 specialty drugs and vaccines are in clinical development, with 19 in Phase III/registration stages.
Looking ahead to 2025, GSK anticipates approval for five major new products, including Blenrep for the treatment of multiple myeloma and depemokimab for the treatment of severe asthma and CRSwNP. Two Phase III study results are highly anticipated, including Caminipixant for refractory chronic cough and Tebipenem for complex urinary tract infections.
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