Global Pharmaceutical and Biotech Industry Sees R&D Profitability Improve for Three Consecutive Years
The global pharmaceutical and biotech industry is currently facing a period of significant change. According to a report by the global accounting firm Deloitte, the research and development (R&D) profitability of global pharmaceutical companies is gradually improving.
As of 2025, the internal rate of return (IRR) for late-stage pipelines of the world's top 20 pharmaceutical companies reached 7.0%. This figure has risen steadily over the past three years, demonstrating that the pharmaceutical industry is increasing efficiency in the new drug development process.
Experts analyze that this improvement in profitability is due to strategic investments and technological innovation by pharmaceutical companies. As research is now being conducted in a way that increases the success rate of new drug development compared to the past, the financial performance of these companies is also showing a positive trend.
However, a phenomenon of polarization in profitability is also emerging within the industry. While some large pharmaceutical companies are generating high profits, a gap still exists between them and companies that are not.
Attention is now focused on how pharmaceutical and biotech companies will maintain this growth trend. It remains to be seen how continued R&D investment will affect the competitiveness of the Korean pharmaceutical and biotech industry in the global market.