Clinical Development Activity in Perspective

Clinical reports development activity in perspective A head-to-head comparison of Pharma and CRO phase I-IV activities. |Pharma astellas CRO Ivlrr, idrtr rrile MERCK O NOVARTIS BAYER Pfizer Takeda Roche OCON SANOFI novo nordisk QUINTILES Lelly gsk GlaxoSmithKline Oʻsuka Bristol-Myerı Squibb COVANCE. "H HT AAC LOV HT AMGEN PAREXEL Astrazeneca VOUR JOURMEY. OUR MISSION O GILEAD Methodology When you think about it, spending on phase I-IV services by pharma sponsors is roughly equivalent to revenue generated by CROS. One company's expense is another company's revenue. ISR wanted to see how the largest public CROS stacked up to the largest pharma companies in terms of their phase I-IV activities. ISR used the assumptions we generated in developing our 2014 CRO Market Size report to develop a side-by-side comparison of phase l-IV activity between sponsors and CROS. For sponsors: We took their annual R&D spending, multiplied it by 63% to get their development spending, then multiplied that by 71% to get their phase l-IV spending. For CROS: We took just their clinical development revenue (not commer- cial, consulting, preclinical). Is this an exact match, no. However, directionally we find that of the 20 companies performing the most phase I-IV activities, at least four of them are CROS and, if their financials were publicly available, we could have easily included PPD and perhaps PRA, inVentiv Health Clinical, and INC Research in the list. (Annual $B USD) Rank Company Total R&D Development Phase I-IV Novartis $9,727 $6,128 $4,351 2 Roche $9,656 $6,083 $4,319 Merck $7,123 $4,487 $3,186 4 Pfizer $6,641 $4,184 $2,971 Quintiles $2,920 6. Sanofi $6,420 $4,045 $2,872 GSK $5,683 $3,580 $2,542 Eli Lilly $5,531 $3,485 $2,474 9. Bayer $4,313 $2,717 $1,929 10 AZ $4,281 $2,697 $1,915 11 Amgen $4,083 $2,572 $1,826 12 BMS $3,715 $2,340 $1,662 13 PAREXEL $1,532 14 Covance $1,494 15 Takeda $3,277 $2,065 $1,466 16 ICON $1,336 17 Otsuka $2,379 $1,499 $1,064 18 Gilead $2,167 $1,365 $969 19 Novo Nordisk $2,120 $1,336 $948 Astellas $1,998 $1,259 $894 www.ISRreports.com [email protected] (MAYER