Reassessing R&D outcomes of leading pharmaceutical companies

Published 20 August 2026

Author(s): Alexander Schuhmacher, Michael Witting, Dominik Hartl, Markus Hinder, & Oliver Gassmann 

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 R&D strategy and R&D models.