≡IQVIAFOR HUMAN DATA SCIENCEGlobal Trends in R&D2025Progress in Recapturing Momentumin Biopharma InnovationMARCH2025IntroductionThe life sciences innovation ecosystem has continued to evolve and expand asindustry adapts to a complex and dynamic range of geopolitical,technologicaland social uncertainties,and investment continues to flow into the sector.Innovative science has also grown in parallel,as evidenced by an increasingproportion of novel therapeutic modalities in clinical trials and by innovativeproducts receiving regulatory approval and reaching patients -with multipleimportant cell and gene therapy drugs having achieved recent success,alongside new options for historically challenging indications.Despite theseadvances,improving the efficiency of R&D remains an important objective forbiopharmaceutical companies and significant opportunities exist to reducemedicine development times and increase probabilities of success.This report assesses the trends in R&D funding,clinicalbased on proprietary IQVIA databases and/or third-partytrial activity,and new drug approvals and launches.Itinformation.No proprietary sponsor trial informationalso examines the efficiency and productivity of clinicalis presented.development,using a refreshed Clinical ProgramProductivity Index,while also providing insights onThe contributions to this report from Taskin Ahmed,contributing factors and enablers.OperationallyLucy Haggerty,Srinidhi BC,Tanya Bhardwaj,addressable cycle time components are investigatedChris Bamford,Rachael Fones,Julia Kern,Bhagyashreeby examining clinical trial timelines in the broaderNawar,Urvashi Porwal,Jamie Pritchett,and dozens ofcontext of a typical medicine development program,others at IQVIA are gratefully acknowledged.demonstrating critical within-and between-trialcomponents that can be targeted to accelerateFind Out Moredevelopment.The continued significance of emergingbiopharma companies and of geographical shifts inIf you wish to receive future reports from the IQVIAclinical trial activity are revisited throughout.Institute for Human Data Science or join our mailing list,visit iqviainstitute.org.The research included in this report was undertakenindependently by the IQVIA Institute for HumanMURRAY AITKENData Science as a public service,without industry orExecutive Directorgovernment funding.The analytics in this report areIQVIA Institute for Human Data SciencePlease use this format when referencing content from this report:2025 IQVIA and its affiliates.All reproduction rights,quotations,broadcasting,publications reserved.No part of this publication may be reproduced ortransmitted in any form or by any means,electronic or mechanical,including photocopy,recording,or any information storage and retrieval system,withoutexpress written consent of IQVIA and the IQVIA Institute.Global Trends in R&D 2025:Progress in Recapturing Momentum in Biopharma InnovationTable of ContentsOverview2R&D funding5Clinical trial activity14New drug approvals and launches36Clinical development productivity51Productivity enablers72Notes on sources86Methodologies87References89About the authors90About the Institute92OverviewR&D FUNDINGTotal R&D expenditure of large pharmaceuticalcompanies continued to increase in 2024,both inBiopharma funding levels in the past year continued toabsolute terms(reaching $190Bn,up from $163Bn inincrease following the post-pandemic rebound of 2023,2023)and as a percentage of sales,exceeding 25%with growth contributions coming from IPOs,follow-onfor the first time.funding,and other public and private sources.Excludingthe 2020 and 2021 heights seen during the pandemic,CLINICAL TRIAL ACTIVITYfunding reached a 10 year high of $102Bn in 2024-a substantial increase on the 2023 figure of $71Bn.The total volume of clinical trial starts stabilized in2024 after the year-on-year declines seen in 2022In contrast,the volume of R&D deals betweenand 2023,reaching 5,318-a number remarkablypharmaceutical companies declined in 2024,continuingsimilar to the 5,316 pre-pandemic count in 2019 andthe downward trend that began in 2022.More than halfslightly above the 5,302 total of 2023.The short-termof the 1,016 deals made in 2024 were between emergingvolatility introduced by COVID-19 trials since 2019 hasbiopharma(EBP)companies,with the majority of thebeen partly counterbalanced by increasing trials fromremainder involving EBP deals with larger companies.China-headquartered companies and recent uplifts fromPartnerships between larger companies remainedEBP and larger companies,especially in Phase I.relatively rare,accounting for just over one in ten R&Ddeals.The volume of M&A deals also declined betweenEBP companies continued to account for a majority of2023 and 2024,but the median value of these dealstrial starts,up from 56%in 2019 to 63%in 2024,althoughincreased dramatically from $153Mn to $405Mn,withthis proportion was slightly below that of 2023(65%).about half of the 2024 deals in the $1Bn to $5Bn range.Meanwhile,the collective contributions of the largestMost international R&D M&A and licensing dealspharmaceutical companies accounted for only 26%involving a China-headquartered company were focusedof trial starts in 2024-slightly up on the 2023 figureoutwards(71 of 73 deals),with an international partnerof 25%.Although large pharma trial starts were mostacquiring or in-licensing R&D from China,and theprominent in Phase III (at 30%of trials in 2024),EBP trialsrelative importance of these outward China deals hasstarts still accounted for the majority in this phase(56%).broadly increased over time.U.S.-headquartered companies continued to account forthe majority of trial starts in 2024,increasing from a 33%+share in 2023 to 35%in 2024.Despite the dramatic long-term increase in the contribution of China-headquarteredTotal R&D expenditure of largecompanies to trial starts,their share of trial starts did notpharmaceutical companieschange between 2023 and 2024,remaining at 30%-butcontinued to increase in 2024,with over 80%of these trials involving sites only in China.European companies accounted for a further 21%of trialboth in absolute terms(reachingstarts in 2024,continuing the region's gradual long-term$190Bn,up from $163Bn in 2023)decline in this metric.and as a percentage of sales,Oncology trial activity has increased the most since 2019and remains the most prominent therapeutic area,withexceeding 25%for the first time.obesity trials also showing a dramatic recent increase.2 Global Trends in R&D 2025:Progress in Recapturing Momentum in Biopharma InnovationNovel mechanisms have gained prominence in oncology,program parameters,where a program is definedwith antibody-drug conjugates,cell and gene therapiesas a unique combination of investigational drug andand multi-specific antibodies collectively accounting forindication.The CPPI provides a composite metric of35%of oncology trial starts in 2024.The small moleculeR&D program success rates,trial complexity,and trialshare of trial starts has continued to decline acrossduration.Clinical development productivity increasedtherapeutic areas.from 2023 to 2024,driven by an increase in Phase IIINEW DRUG APPROVALS AND LAUNCHESsuccess rates,which counteracted declining success inPhase I and Phase II and increasing trial durations.A total of 65 novel active substances (NAS)launchedglobally in 2024,a decline on the 2023 figure of 80but still higher than in the pre-pandemic period.The cohort of launches in 2024 included the firstA total of 65 novel active substancesnew mechanism of action in schizophrenia in over(NAS)launched globally in 2024,30 years,the first therapy of metabolic dysfunction-associated steatohepatitis (MASH),four treatments fora decline on the 2023 figure ofrare neurological diseases,and seven non-oncology80 but still higher than in thehematology drugs-including two gene therapies.pre-pandemic period.The U.S.was the most-common first-launch country.While 110 of the NAS launched in the U.S.since 2020 arenot yet available in Europe,only 14 European launchesComposite success rate (the end-to-end success rateare not yet available in the U.S.Nearly 60%of new U.S.from Phase I to approval)increased from 6%in 2023 tolaunches were first-in-class,including ten oncology7%in 2024,driven by improvements in Phase III.Thismedicines-of which two were cell therapies and7%figure was equal to the corresponding five-yearthree were bispecific antibodies.EBPs originated 85%figure for 2020-2024,but lower than the 9%figure of theof U.S.launches and the majority of these were alsopreceding five years.This long-term overall decline wasEBP-launched(63%were both EBP-originated and EBP-reflected across small molecules and biologics,but withlaunched).Over three quarters of the 2024 drug cohortsmall molecule composite success rates particularly lowwere launched more than 10 years after first patentin 2020-2024.The 6%success rate for small moleculesfiling,with a median interval of 14 years.in this period reflected meaningful phase successIn the last five years,China has reduced its medianrate declines in Phase I,II and III.Within the biologicslaunch lag(time between first global launch and launchcategory,cell and gene therapies experienced anin China)to 3.7 years while the contribution of globalincrease in composite success rate in 2020-2024-albeitlaunches to China declined only slig htly,from 119 infrom a low 2015-2019 baseline-from 4%to 5%,driven2015-19 to 112 in 2020-24.The volume of China-only NASby a large improvement in Phase III success.period,from 9 in 2015-19 to 76 in 2020-24.Trial complexity remained broadly flat in 2024 overall,although underlying metrics were variable.Subjects andCLINICAL DEVELOPMENT PRODUCTIVITYsites per trial increased-tending to increase complexityThe IQVIA Institute's refreshed Clinical Program-while country and inclusion/exclusion criteria countsProductivity Index(CPPI)examines clinical developmentdeclined,opposing this effect.Endpoints per trialproductivity based on a combination of trial andremained stable,despite historical prior increases.iqviainstitute.org 3While retaining the largest overall share,WesternArtificial intelligence(AI)is rapidly gaining traction inEurope's contribution to global trial-country utilizationR&D.Companies with a core focus on AI or machinefell by 12%between 2019 and 2024,while Centrallearning sponsored or collaborated on at least 35Eastern Europe's share fell by 28%.In contrast,Northnew trial starts per year in 2022,2023 and 2024,withAmerica country utilization increased by 7%,retainingtheir technology most commonly having contributedsecond place in the global ranking.China's shareto the target or drug discovery activities behind theincreased dramatically by 66%between 2019 and 2024investigational study drug.to become the fourth-ranked region,only slig htly behindthe rest of Asia-Pacific combined (excluding China).Novel trial designs provide important opportunities toSingle-country trials were common-especially for EBPsaccelerate R&D.Umbrella,basket,master,and adaptive-and were most-often conducted in the U.S.or China.protocols accounted for 19%of trials in 2024-Single-country trials accounted for 85%of EBP trials anda higher proportion than in all previous years.Although63%of larger company trials.the volume of remote,virtual or decentralized trialsdeclined between 2023 and 2024,the most recent totalClinical trial timelines were impacted by increases inwas similar to pre-pandemic levels.This suggests thatenrollment duration between 2021 and 2023,withopportunities remain to capitalize upon pandemicmedian enrollment time increasing from 13 months tolearnings to increase'virtualization,'where appropriate.16 months over that period before stabilizing in 2024.Oncology has been a key driver of this trend,withEnsuring that trial subjects are representative of themedian enrollment times consistently exceeding 25intended population is critical in ensuring that studymonths.At an overall program level,inter-trial intervalsfindings are generalizable,but improving participationcollectively contributed 17 months to overall medicineof underrepresented groups also offers an opportunitydevelopment time based on 2024 data,representing anto increase enrollment.While representation ofalmost complete recovery from the pandemic-drivenBlack/African American patients in U.S.Phase III trialspeak value of 32 months observed in 2022.is above census levels,this is not the case for Hispanicinclusion-and representation varies by disease area.PRODUCTIVITY ENABLERSSponsor capabilities in successfully navig ating regulatoryA wide variety of dynamic external ecosystem factorssubmissions have been improving.The use of real-worldare increasing pressure on-and creating opportunitiesdata within R&D has provided important evidencefor-sponsor companies.Rapidly increasing artificialgeneration opportunities,and real-world evidence wasintelligence adoption and capabilities,emerging science,key to five FDA approvals in 2024.More broadly,fewereconomic challenges,social change,geopoliticalComplete Response Letters were received by sponsorsissues-including trade disputes and conflicts,policyin 2024 than in 2023,and clinical reasons were cited inchanges and regulatory developments are collectivelyfewer cases-implying that submission and evidenceincreasing R&D complexity and uncertainty.Meanwhile,packages have improved considerably for companiessponsor companies are continuing to employ a range ofwith significant experience.productivity enablers to positively impact speed,successrate and cost.4 Global Trends in R&D 2025:Progress in Recapturing Momentum in Biopharma InnovationR&D fundingBiopharma funding levels increased dramatically toOver 70 international M&A or licensing deals were$102Bn in 2024,although the IPO value remained low.made with China-based companies in 2024,mostlyinvolving out-licensing to or acquisition by a U.S.orR&D deals between pharma companies fell 5%in 2024European company.as the number of deals involving emerging biopharmacompanies(EBPs)declined.Life sciences company AI/ML deals announced in 2024accounted for almost $10Bn in deal value.The median value of M&A deals doubled between2023 and 2024,reaching $405Mn,largely driven byRadiopharmaceutical and RNA therapy deals haveincreased deal volume and value in the $1Bn tomore than doubled in the past five years.$5Bn range.Collective R&D expenditure by large pharmaOncology M&A accounted for 9 of the 27 deals abovecorporations increased from $163Bn in 2023 to $190Bn$2Bn in 2024,although the largest M&A deal wasin 2024,reaching 25%as a percentage of sales.related to manufacturing capacity in obesity.R&D funding levels have increased again in 2024 after a steep declinefrom the peak years of 2020 and 2021.While the number of deals has beenfalling,high profile and high value deals indicate robust interest frominvestors and innovators in the next generation of therapies.iqviainstitute.org 5R&D FUNDINGBiopharma funding levels rebounded in 2024 despite a low numberof IPOsExhibit 1:Biopharma funding levels USSBn,2015-20241401341201182810210040(ug$338068716125601057271721852381116102240991127204429174620827211524172622665119542015201620172018201920202021202220232024IPOsFollow-onsPublic/otherPrivateSource:BioWorld,Jan 2025Biopharma funding activity in 2024 rebounded toThe nearly $7Bn in 2024 IPO value exceeded the nearly$102Bn,up from $71Bn in 2023 and bringing the$4Bn of 2023 but remained at historic low levelsfive-year total for funding to $486Bn,a starkcontrast to the $282Bn in the prior five years.Private and public/other financing stayed consistentlyabove pre-pandemic levels,with $24 and $25BnThe overall funding level in 2024 was the third highestof the past decade,only trailing the early pandemicyears of 2020 and 2021,and a second straight year ofsignificantly increased funding.Follow-on funding represented 34%of five-yearfunding at $167Bn and was the strongest contributiontype in 2024 with $46Bn,up from $26Bn in 2023.Follow-on funding increased by 77%and representedabout 45%of biopharma funding in 2024.Notes:IPO means initial public offering:Follow-on refers to a public offering of shares after the initial offering;Public/other financings are when publiccompanies receiving financing in some other way:Private means venture capital inves tments.6 Global Trends in R&D 2025:Progress in Recapturing Momentum in Biopharma InnovationR&D FUNDINGR&D deals between pharma companies dropped by 5%from2023 to 2024,mostly due to fewer deals involving EBP companiesExhibit 2:Number of deals by company segment,2019-20241,5681,443Total selectedcompany-to-company deals1,2321,1611,0681,016●EBP-EBP8581.007639725Large/mid companies628with EBP582Large/mid companieswith another large/mid349417407394331324173169154113109110201920202021202220232024Source:IQVIA Pharma Deals,Jan 2025Emerging biopharma companies(EBPs)-definedThose deals involving large and mid-sized companiesas those with less than an estimated $200Mn in R&Dwere 45%of the 1,161 in 2019,but overall deal activityspend per year,including those'pre-commercial'in 2024 dropped to 1,016 deals,with large andcompanies with no revenue as well as smallermid-sized companies representing only 41%.emerging companies with up to $500Mn per year inannual revenue-have expanded their involvement inThe shifts in activity over the past five years havedeals over the past five years,even as aggregate newmeant that 74%of all deal activity between these typesdeal numbers have declined for the last three years.of companies involves an emerging company,even asthe activity between emerging companies without aLarge and-mid-sized companies-those with morelarger firm now represent 66%of deals.than $10Bn and more than $5Bn,respectively,inglobal revenue-were involved in 522 deals in 2019The rising independence of emerging biopharmathat involved other large and mid-sized or emergingcompanies in recent years started to shift in 2021 ascompanies,dropping to 434 in 2024.the share of deals involving larger companies jumpedfrom 29%in 2021 to 35%in 2022 and has stayed at thesame share since.Notes:Deals in this analysis are excluding non-funding deals.Funding deals are deals that involve research grants or funding from govt institutionsgovt bodies,universities or other academic institutions.Excluding VC and Funding Grants from Non-Commercial.Excludes deals where one side is not apharmaceutical company.Emerging biopharma (EBP)are defined as those with less than an estimated $200Mn in R&D spend per year,including thosepre-commercial'companies with no revenue as well as smaller emerging companies with up to $500Mnper year in annual revenue.iqviainstitute.org 7R&D FUNDINGThe number of very large M&A deals remained small in 2024,whilethe count and total value of $1Bn-$5Bn deals doubledExhibit 3:Biopharma M&A activity,2020-2024Number of M&A dealsM&A deal value1002509190868140077200185701501381212501041002007715020501105002020202120222023202420202021202220232024<$1Bn$1-$5Bn>$5Bn-Median deal value US$MnSource:BioWorld,Jan 2025The number of M&A deals has been relatively steadyLarger,high-profile M&A deals were led by AbbVie'sover the last five years,although a decline from 86 toacquisitions of Cerevel($14Bn)and Immunogen81 deals occurred from 2023 to 2024.($10Bn)which closed in 2024,although both were firstannounced in late 2023.There were three other dealsM&A deal values have been more variable,with totalabove $5Bn in 2024.value dropping from $138Bn in 2023 to $104Bn in 2024-while remaining significantly above the $77Bn lowNotable deals in the $1Bn to $5Bn range includedseen in 2022Gilead's $4.3Bn acquisition of Cymabay(Exhibit 4),as well as four AstraZeneca deals together valuedThe median disclosed deal value in 2024 reached theat $5.8Bn,encompassing diverse areas(CAR T,exceptionally high figure of $405Mn-more thanrespiratory vaccines,radioconjugates,and raredouble the 2023 median of $153Mn.endocrine diseases).The dramatic increase in median deal value wasThese data are based on disclosed values at the timeprimarily driven by an increase in the number andof deal announcement,but if deals of undisclosedvalue of deals in the $1Bn to $5Bn range-where dealvalue were assumed to be at median,this would addcount grew from 14 to 26 and total value grew from11%to total deal value(data not shown);however,$26Bn to $51Bn from 2023 to 2024.small deals may be overrepresented in the undiscloseddata set,as they are less financially material to thecompanies concerned.Notes:M&A is involving at least one biopharmaceutical company.Deal value is the disdosed value of the deal when announced8 Global Trends in R&D 2025:Progress in Recapturing Momentum in Biopharma InnovationR&D FUNDINGThe largest licensing and M&A deal in 2024-at $16.5Bn-relatedto obesity manufacturing,while 9 oncology deals surpassed $2BnExhibit 4:Deals with value >$2Bn in 2024 by therapeutic areaN=27 deals>$2Bn,Total $102BnOthers(10 deals/$55.7Bn)Oncology(9 deals/$23Bn)+Novo Holdings+Catalent(CDMO acquisition)16.5A Merck +LaNova Medicines (bsAb)3313.023%A Novartis+Dren Bio (bsAb)3.0(RNA therapeutics)+Novartis+MorphoSys(Small molecule)2.96.0A Novartis+PeptiDream (Peptide)2.9(Peptides)+Vertex +Alpine Immune (Protein)4.9+Deciphera +ONO Pharma (Small molecule)A BMS+Prime Medicine (T-cell therapies)3.6+AstraZeneca+Fusion Pharma(Radioconjugate)2.4+Merck EyeBiotech (TsAb)3.0A Roche MOMA Therapeutics2.1A Novartis Schrodinger(Small molecule)24A Takeda Protagonist Therapeutics (Peptide)2.023+&+Ambrx Biopharma (ADCs)2.0A Novartis Monte Rosa Therapeutics(Small molecule)22Gastrointestinal (3 deals/$9.5Bn)Merck+Hansoh Pharma(Peptide)2.0Neurology(3 deals/$7.5Bn)Gilead CymaBay Therapeutics(Small molecule)4.329+Eli Lilly Morphic Holding (Small molecule)Cardiovascular (2 deals/$6.2Bn)(Small molecule)A Suzhou Ribo Life Science Ribocure2.02.9+H.Lundbeck+Longboard(RNA therapeutics)(RNA Therapeutics)Pharmaceuticals(Small molecule)AstraZeneca+CSPC Pharmaceutical2.0AAbbvie+Gilgamesh Pharma2.0(Small molecule)(Small molecule)+Acquisition A Alliance/collaborationSource:IQVIA Pharma Deals,Jan 2025.In 2024,the largest M&A deal was the acquisition ofTwo bispecific antibody deals in oncology for $3.3BnCatalent by Novo Holdings-a holding and investmentand $3Bn respectively were announced in 2024,ascompany that is responsible for managing the assetswell as a trispecific antibody deal related to a signalingand wealth of the Novo Nordisk Foundation-aimedpathway in diabetic macular edema between Merckat boosting and aligning GLP-1 capacity strategy.and EyeBiotech for $3Bn.There were 27 deals announced in 2024 with valuesRNA related deals were led by the $13Bn Sarepta/above $2Bn and totaling $102Bn,with 9(23%)inArrowhead deal related to siRNA platforms andoncology accounting for $23Bn.programs across multiple disease areas.Gastrointestinal and neurology each included threeThere were nine small molecule focused dealsdeals above $2Bn,totaling $9.5Bn and $7.5Bn,above $2Bn accounting for $27Bn of deal value,ledrespectively.by Gilead's acquisition of Cymabay with a focus onliver disorders.Notes:CDMO-contract drug manufacturing organization.ADC-antibody drug conjugatesiqviainstitute.org 9R&D FUNDINGOver 70 M&A or licensing deals with China-based companies wereannounced in 2024,mostly with U.S.or European companiesExhibit 5:Overview of China-focused international M&A and licensing activity in 2020-2024China-focused intemational licensing or M&A dealsM&A or licensing deals by geography80>(International acquires China company or licenses assets)73100707371606252564853502030020202021202220232024M&A or licensing deals by geography10(China acquires international company or licenses assets)10020202021202220232024OncologyNeurologyInfectiousMetabolic/EndocrineBlood/CirculatorySkinRespiratoryMusculoskeletalGenitourinary20202021202220232024OthersNorthOtherEyeAmericaEuropeAsiaregionSource:IQVIA Pharma Deals,Jan 2025.In 2024,73 international deals were announcedIt has been much less common for Chinese firms toinvolving China-headquartered companies,includingacquire or in-license from external companies,but29(40%)deals related to oncology.these types of deals include those Chinese companieswith aspirations to participate more in internationalThe proportion of Chinese company deals involvingmarkets,especially the U.S.out-licensing to or acquisition by an internationalcompany has been increasing and accounted forThere are a high number of deals with only limited71 of the 73 deals in 2024 and 92%of deals in theor undisclosed details,included within the 'others'last five years.therapy area.Acquisition or licensing of China-developed R&Dassets is a significant and growing trend,especially forcompanies from U.S.or Europe.Notes:Companies with China headquarters and deals disclosing phase and therapy/disease focus have been included.Deals between Chinese companieshave been excluded.Oncology includes supportive care10 Global Trends in R&D 2025:Progress in Recapturing Momentum in Biopharma InnovationR&D FUNDINGAlmost $10Bn in AI/ML deals with life sciences companies wereannounced in 2024Exhibit 6:AI/ML deals with value >$200Mn in 2024 by AI/ML focus areaN=12 deals>$200Bn,Total $9.7Bn119%Drug design (5 deals $3,161 Mn)Drug discovery (5 deals /$5,492 Mn)Dyno Therapeutics+Roche (AAV Vectors)Isomorphic Labs+Eli Lilly (Small molecule)1,745VantAI+BMS (Molecular glues)674Isomorphic Labs+Novartis(Small molecule)1238Nabla Bio +AstraZeneca,BMS,Takeda (Protein)55033%Generate:Biomedicines+Novartis (Protein)1065512569%Ochre Bio +Boehringer Ingelheim1,035(Small molecule)(Regener ative medicines)Biolojic Design+Merck (Antibody based375Genetic Leap+Eli Lilly(Oligonucleotide)409therapies+ADCs)Target identification (2 deals $1,058 Mn)BioAge Labs +Novartis550Relation Therapeutics +GSKSource:IQVIA Pharma Deals,Jan 2025Twelve AI or machine learning life sciences dealsAdvances in AI,machine learning,and otherwith values above $200Mn were announced in 2024,advanced analytics are increasingly being appliedcollectively accounting for almost $10Bn in deal value.to the life sciences with deals announced focusingon drug discovery and patient cohort identification,There were five deals exceeding $1Bn in 2024 leadamong others.by Isomorphic Labs,a UK-based AI drug discoverycompany that partnered with Eli Lilly and Novartis inAccording to the FDA,the number of drug and biologictwo deals worth nearly $3Bn.application submissions using these technologiesincreased to 170 in 2022,12 times higher than the 14 inNovartis also partnered with Generate:Biomedicines2020.In January 2025,the FDA released draft guidancefor their machine learning-driven approachesfor stakeholders to discuss the use of AI/ML in drugsprotein optimization.and biologics product development.Notes:The deals in this analysis include deals which referred to key search terms of artificial intelligence (AI)or machine learning,which were then manuallyreviewed for relevance.Not all deals of this nature have been disclosed.iqviainstitute.org 11R&D FUNDINGDeals focusing on radiopharmaceuticals and RNA therapies havemore than doubled in the past 5 yearsExhibit 7:Deals by selected modalities,2019-2024Deals in 2024RadiopharmaceuticsRNAN=1,6087979AntibodiesCell and cell-basedgene therapiesProtein/peptides(non-antibody）DNA or gene therapies31Radiophamaceuiticals29RNAOther/unspecified biologicsOther small molecules2019202420192024Source:IQVIA Pharma Deals,Jan 2025.The type of drug modalities involved in deals hasRNA-based therapies include small interferingvaried relatively little over the past five years,withRNA(siRNA)or RNA interference(RNAi),antisensenearly half of all deals still involving older smalloligonucleotides,and several other similarmolecule technologies.technologies,with disease targets across oncology,cardiovascular,neurology and other areas.The areas of more advanced technology havebeen led by antibodies,cell and gene therapies,mRNA-based vaccines have gained considerableand non-antibody proteins and peptides,togetherinterest since the COVID-19 pandemic as they appearrepresenting 34%of overall deals.to offer ease and speed of development compared totraditional vaccines.The key areas with the most notable shifts have beenradiopharmaceuticals and RNA-based therapies.Radiopharmaceuticals are those therapies,mostcommonly in oncology,which usually embed atargeting component like an antibody along with aradioactive agent to more precisely deliver radiationto a specific tumor target.Notes:Deals are those withdisclosed therapy and/or modality information.12 Global Trends in R&D 2025:Progress in Recapturing Momentum in Biopharma InnovationR&D FUNDINGR&D expenditure by large pharma corporations increased throughorganic growth and acquisitions and reached 25.2%of sales in 2024Exhibit 8:Large pharma R&D expenditure and as a percentage of sales 2015-2024,USSBn19016313613825.2%12323.5%10811092978620.4%19.6%19.3%19.3%18.8%18.7%18.2%17.5%2015201620172018201920202021202220232024●R&D expenditure●一R&Das%ofsalesSource:Company financial statements Feb,2025;IQVIAInstitute,Feb 2025.The largest pharmaceutical companies togetherR&D expenses can include write-offs of failedreported more than $190Bn in expenditure onR&D programs developed internally or the cost ofresearch and development in 2024,up $80Bn orin-process acquired R&D programs,which can bring73%from the level five years ago(2019).year-to-year variability in the level of total spending.R&D expenditure and sales are as reported inThe reduction in R&D expenditure as a percentage ofcompany financial statements and relate to thesales in 2021 and 2022 was mostly a reflection of thecorporate level which in some cases includesspike in sales those years related to COVID-19 vaccinesnon-pharmaceutical divisions.and therapeutics.R&D expenditure intensity-measured asthe percentage of sales spent on R&D-exceeded 25%in 2024,a record level for the industry and reflectingthe shift aware from less R&D-dependent divisionsgenerics businesses.Notes:Based on financial reporting for twelve months ending Dec 31,2023 for all companies and reflect total R&D for the calendar year indicated.Companiesinclude:AbbVie,Amgen,AstraZeneca,Bristol Myers Squibb,Eli Lilly,Gilead,Glaxo Smith Kline,Johnson &Johnson,Merck,Novartis,Novo Nordisk,Pfizer,Roche,Sanofi,and Takeda.These represent the total company view,and some divisions such as consumer health are typically less R&D-intensive than thepharmaceutical division.The total expenditure is as reported by companies in their financial statements.iqviainstitute.org 13