[bschne]

2024 numbers -- Selling, General & Admin vs. R&D

Roche (Pharma Division): 7533 MCHF vs. 11096 MCHF

Novartis: 12566 MUSD vs. 10022 MUSD

Pfizer: 14730 MUSD vs. 10822 MUSD

Eli Lilly: 8594 MUSD vs. 10991 MUSD

AstraZeneca: 19977 MUSD vs. 13583 MUSD

Johnson & Johnson: 22869 MUSD vs. 17232 MUSD

The left side here contains more than just marketing, and already "far far outstripping" seems like a mischaracterization.

For comparison, the average R&D spend between these firms is bigger than the 2024 NSF budget (~9bn) and bigger than 1/4 of the 2024 NIH budget (~37bn).

[derektank]

Also worth considering that this only includes internal R&D, not R&D acquired through acquisition of smaller biotech firms (known as in process R&D). VC investment in biotech startups is, at least in part, built around the assumption that acquisition by a larger pharmaceutical company is a viable exit strategy. To take the example of Eli Lilly, I think they spent an additional 10-20% of their R&D budget on IPR&D in 2024, though this obviously can fluctuate more year to year. They acquired Morphic, which produces a pharmaceutical that treats IBS, and Scorpion Therapeutics, which produces a precision oncology treatment, this year and I'm guessing neither spent much on consumer sales.

[dgacmu]

I think you meant to say NIH for the second budget number?

[bschne]

correct, edited, thanks