IQVIA report sizes up trends in new drug launches, clinical trials, R&D funding
The IQVIA Institute for Human Data Science has released, Global Trends in R&D 2024: Activity, Productivity, and Enablers February 2024 report, which assesses the trends in new drug launches and the overall number of initiated clinical trials. It also profiles the state of R&D funding and the activity of companies of different types.
The report found that R&D funding levels have rebounded in 2023 after a steep decline from the peak seen in 2020-21. While the number of deals has fallen, high profile and high value deals indicate robust interest from investors and innovators in the next generation of therapies. Biopharma funding levels rebounded to $72 billion in 2023, up from $61billion in 2022, although still well below the levels in 2020-21.
The report also found that M&A activity jumped to $140 billion from $78 billion in 2022, while median deal value dipped for the second year. The leading deal and M&A activity areas related to antibody drug conjugates accounted for 47% of disclosed M&A deals valued over $2 billion and 85% of large oncology deals. Deals involving China-based companies remained significant and AI deals more than doubled. R&D expenditure reported by large pharma corporations totaled a record $161 billion in 2023, an increase of almost 50% since 2018, and historically high at 23.4% of net sales for those companies, per the report.
[Read more: IQVIA reports global market for medicines to rise to $1.9 trillion by 2027]
The report also addresses clinical trial activity:
Trial starts have slowed to below pre-pandemic levels, reflecting fewer COVID-19 activity and shifting research priorities. Clinical trial starts declined 15% in 2023 compared to the prior year and were down 22% from 2021 which included the peak of COVID-19-related trial activity.
The three main drivers accounting for the slowdown were fewer COVID-19 trial starts, fewer non-COVID-19 starts by larger companies and fewer by emerging biopharma companies. Trial starts from China-headquartered companies have risen to 28% of trial starts, up from 3% a decade ago, and an increasing proportion of Chinese companies have had international trial starts contrasted with the domestic-only activity of most firms.
The top four diseases in terms of trial starts—oncology, immunology, metabolic/endocrinology and neurology—account for 79% of trial starts and declined less than other diseases. Rare disease trial activity remains high and slowed less than trials focused on larger populations. The disease focus of rare disease research is predominately in oncology while diseases with larger populations study a wider variety of diseases. Novel oncology mechanisms, especially cell and gene therapies, ADCs and multi-specific antibodies, have risen to 25% of oncology trials. Industry sponsored cell and gene therapy trials have more than tripled over the last decade while non-industry have grown 5%. CAR T-cell therapy clinical research is focused on oncology, while other diseases may benefit from other cell and gene modalities.
Obesity clinical trials in 2023 were up 68% from 2022 and have nearly doubled when compared to five years ago, including 124 drugs in active development, 40% of which are GIP/GLP glucagon receptor agonists and 46% of which have oral formulations in development. Neurology research is focused on Alzheimer’s, Parkinson’s and epilepsy, with a range of other often rare diseases.
Depression trial starts were 25% lower in 2023 than pre-pandemic with psychedelics being tested in nearly 40% of the 2023 trial starts. Infectious disease trials slowed to below pre-pandemic levels from both COVID-19 trials and other infection targets, and a significant reduction in trials starts for antibacterials.
[Read more: IQVIA reports medicine spending rose in 2021 due to COVID-19 vaccines, therapies]
Furthermore, the report delves into new drug approvals and launches:
A total of 69 novel active substances were launched globally in 2023, up six from the prior year and representing a return to pre-COVID-19 trends. A total of 362 NASs have launched globally in the past five years, bringing the 20-year total to 942. An increasing gap exists between countries such as the United States, with 267 NAS launches in the past five years, and the EU4+UK with 182 and China, which becomes the second largest with 192. While the number of NAS launches in China is rising, an increasing number are not available in other countries, reflecting both a rising domestic industry and a mix of reduced barriers and rising incentives for multinational NAS launches. Global NAS launches excluding China-only NASs were 52 in 2023, up one from 2022.
To view the report, visit here.