The financial ecosystem of pharmaceutical R&D
The Ministry of Health, Welfare and Sports of the Netherlands commissioned a descriptive study into the financial ecosystem of pharmaceutical R&D, which was granted to a consortium of SiRM, L.E.K. Consulting and RAND Europe. For this research we used a mixed-methods approach: we examined, analysed and classified existing knowledge and information by reviewing literature and supplemented this knowledge with new research based on analysis of (proprietary) databases, more than 55 interviews and a scenarios workshop. The report and annexes were sent to the Dutch Parliament end of June 2022.
To enable well-informed debates, a better understanding of the financial ecosystem of pharmaceutical R&D and how it operates is crucial. This need has prompted the Dutch Ministry of Health, Welfare and Sports to commission a descriptive study to provide an objective fact-base. A consortium of SiRM, L.E.K. Consulting and RAND Europe was selected to execute this study.
For this research we used a mixed-methods approach: we examined, analysed and classified existing knowledge and information by reviewing (academic) literature and supplemented this knowledge with new research based on analysis of (proprietary) databases. To enrich these insights we held 56 interviews with experts from both the industry, the financial sector, academia and the wider public and not-for-profit sector. Additionally we explored policy considerations for future directions of the financial ecosystem during a scenario-based workshop. In total, this study lasted almost 1.5 years, during which we discussed interim reports with an external scientific advisory committee.
The study resulted in a concise report describing the financial ecosystem of pharmaceutical R&D and how it operates, mapping out how drug developers and investors behave and why. More in-depth insights into the complexity of the ecosystem are described in three separate annexes. Annex A contains the results of the quantitative analyses. An online database is available, from which all graphs in the annex may be reproduced. In addition, the eNPV model built for this study is publicly available. Annex B discusses the changing R&D landscape through an evolutionary and future-focused lens. Annex C reflects on considerations to prepare the system for potential future developments. The report and annexes were sent to the Dutch Parliament on Thursday 23nd of June 2022.
