Dwarfed by Big Pharma, Biotech by the numbers

From Bruce Booth’s blog, three charts that illustrate the extent to which large pharma companies dwarf small biotechs.  In total, small biotech firms only spend an estimated $6 billion a year on research and development, approximately equal to Pfizer’s annual R&D budget.

From an investor’s point of view, there is a lot of opportunity in biotech — small companies have a lot of room for growth on the way to being established companies!  But for the biopharmaceutical industry as a whole  — which is suffering from a lack of in-house productivity — large scale in-licensing from biotech does not look like it can provide more than a small fraction of what pharmaceutical firms need to fill their pipelines.

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