{"id":844315,"date":"2025-04-28T22:11:50","date_gmt":"2025-04-29T03:11:50","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/04\/28\/glp-1s-are-driving-returns-on-rd-investments-for-big-pharma-report-says\/"},"modified":"2025-04-28T22:11:50","modified_gmt":"2025-04-29T03:11:50","slug":"glp-1s-are-driving-returns-on-rd-investments-for-big-pharma-report-says","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/04\/28\/glp-1s-are-driving-returns-on-rd-investments-for-big-pharma-report-says\/","title":{"rendered":"GLP-1s are driving returns on R&D investments for Big Pharma, report says"},"content":{"rendered":"

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In this photo illustration, boxes of the diabetes drug Ozempic rest on a pharmacy counter on April 17, 2023 in Los Angeles, California. <\/figcaption>
Image: Mario Tama \/ Staff (Getty Images)<\/figcaption><\/p>\n<\/div>\n

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In This Story<\/h6>\n<\/section>\n

Big Pharma is expected to see big returns from its investment in a class of drugs made famous by Novo Nordisk\u2019s (NVO+2.41%<\/span><\/svg><\/span><\/span><\/span><\/a><\/span>) popular diabetes drug Ozempic.<\/p>\n

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Deloitte\u2019s annual report, Measuring the Return from Pharmaceutical Innovation<\/em><\/a><\/span>, found that GLP-1 drugs could fuel significant returns on research and development investments made last year by major drugmakers. The consulting firm analyzed the projected internal rate of return for late-stage pipeline assets across the 20 leading pharma companies.<\/p>\n

On average, these companies forecast peak sales of $510 million per asset. But when GLP-1s are excluded, that figure drops sharply to $370 million. The internal rate of return for late-stage pipeline assets climbed from 5.9% in 2024, from 4.1% in 2023 \u2014 again driven in large part by GLP-1 drugs. Without them, returns would have declined, dipping to 3.8% in 2024 and 3.4% in 2023.<\/p>\n

This matters even more given that the report also found that the average cost to develop a drug for Big Pharma was $2.23 billion in 2024, up from $2.12 billion the year before.<\/p>\n

GLP-1 drugs mimic hormones that regulate blood sugar and suppress appetite, making them highly sought after for treating obesity and Type 2 diabetes. The surging demand has propelled Eli Lilly (LLY+3.00%<\/span><\/svg><\/span><\/span><\/span><\/a><\/span>) and Novo Nordisk into becoming the largest pharma companies in the world. Eli Lilly\u2019s weight-loss drug Zepbound generated $4.9 billion in annual revenue<\/a><\/span>, while Novo Nordisk\u2019s rival treatment, Wegovy, reached roughly $8 billion in sales<\/a><\/span>.<\/p>\n

Wall Street has taken notice. Since the U.S. Food and Drug Administration (FDA) approved Zepbound in November 2023, Eli Lilly\u2019s stock has soared more than 40%, pushing its market capitalization past $750 billion. Novo Nordisk has seen an even steeper climb, with its stock rising over 76% since Wegovy\u2019s launch in 2021.<\/p>\n

With such massive returns, several companies \u2014 including Novo Nordisk<\/a><\/span>, Eli Lilly, Pfizer<\/a><\/span>, and Amgen<\/a><\/span>\u00a0\u2014 are advancing next-generation GLP-1 drugs<\/a><\/span> and investigating their potential for new uses, such as treating sleep apnea<\/a><\/span> and improving heart health.<\/p>\n<\/div>\n<\/div>\n

Bruce Gil Read More<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

In this photo illustration, boxes of the diabetes drug Ozempic rest on a pharmacy counter on April 17, 2023 in Los Angeles, California. Image: Mario Tama \/ Staff (Getty Images) In This Story Big Pharma is expected to see big returns from its investment in a class of drugs made famous by Novo Nordisk\u2019s (<\/p>\n","protected":false},"author":1,"featured_media":844316,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3771,530],"tags":[11476],"class_list":{"0":"post-844315","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-driving","8":"category-returns","9":"tag-bitcoins"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/844315","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=844315"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/844315\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/844316"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=844315"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=844315"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=844315"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}