Bayer beefs up R&D investment to $4.5 billion this year
- While it seems that many biopharma shops are scaling back R&D departments in the wake of mergers and consolidation, Bayer is investing about $4.5 billion in R&D this year. In fact, the firm has 14,000 employees dedicated solely to research and development.
- Bayer's R&D spending represents about 8.5% of its revenues.
- Development costs for Xarelto (rivoroxaban), a blood thinner, were roughly $2.5 billion.
It is an indisputable fact that R&D is the lifeblood of the biopharma industry. Also, it is becoming clear that organic growth and pipeline development often paves the road to success better than mergers and acquisitions.
According to Bayer's Web site: "Bayer, as a research-based pharmaceutical company, focuses on the discovery and development of new treatment options for diseases with a high unmet medical need. Clinical studies represent an important part of the drug development process. They are an indispensable tool to determine the safety and efficacy of new drug candidates before they can be used to treat illness. The benefits and potential risks of new medicines must always be scientifically proven and well-documented."