We estimate current returns on R&D spending of -7% – before costs of capital – for a typical R&D portfolio (typical in terms of # of projects, mix of projects by phase of development, and mix of projects by large
Therapeutic (drug, biotech and specialty pharma) stocks tend to gradually outperform their peers in the year or so preceding and following major anticipated product approvals. The exception is the period immediately surrounding the scheduled regulatory action, where risks are skewed
For the first time, because of growth in both rebate percentages and brand drug prices, rebates paid for preferred formulary status now appear to roughly equal the spread in non-preferred (e.g. tier 3) and preferred (e.g. tier 2) co-pays Co-pay
