IQVIA Holdings Inc. Reports Stabilization and Improvement in Biopharma R&D Metrics

Murray Aitken, executive director of the IQVIA Institute for Human Data Science, emphasized the positive momentum in R&D metrics, stating, "Increases in funding, normalization of clinical trial starts, stabilization or acceleration of key cycle time drivers, and improvements in late-stage success and clinical productivity demonstrate meaningful year-on-year progress in biopharmaceutical R&D."

The report indicates that biopharmaceutical funding has surged to a ten-year high, reaching $102 billion in 2024. This reflects a robust recovery following the pandemic's impact in 2020 and 2021, with significant contributions from initial public offerings (IPOs), follow-on funding, and various public and private sources. The 2024 funding figure represents a substantial increase from the $71 billion recorded in 2023.

After a period of decline in 2022 and 2023, clinical trial starts have stabilized, with a total of 5,318 trials initiated in 2024. This figure is nearly identical to the pre-pandemic count of 5,316 in 2019 and shows slight growth over the 5,302 total recorded in the previous year. This stabilization has been partially attributed to an uptick in trials from China-based companies and larger organizations, particularly in Phase I studies.

The biopharmaceutical landscape witnessed 65 new active substances launched globally in 2024, a decrease from 80 in 2023 but still surpassing pre-pandemic levels. Notable launches included groundbreaking treatments, such as the first new mechanism of action in schizophrenia in over three decades and the inaugural therapy for metabolic dysfunction-associated steatohepatitis (MASH). Additionally, the cohort included multiple treatments for rare neurological diseases and several hematology drugs.

The report highlights a notable increase in clinical productivity from 2023 to 2024, driven by improved success rates in Phase III trials, which helped offset declines observed in Phase I and II trials. The report points to a growing focus on enhancing the efficiency and effectiveness of clinical development processes.

Despite facing increasing pressure from external factors such as geopolitical tensions, economic challenges, and regulatory changes, biopharmaceutical companies are leveraging a range of productivity enablers to maintain efficiency in clinical trials. These include the systematic implementation of decision frameworks, the use of advanced clinical technologies, improved patient representation, and enhanced capabilities in real-world evidence and artificial intelligence solutions.

The 2025 IQVIA Institute report underscores a resilient biopharmaceutical sector that is adapting and innovating amid complex challenges. As funding continues to increase and clinical trial activities stabilize, the industry appears poised for further advancements in the coming years. IQVIA’s commitment to enhancing R&D productivity through its data-driven insights and technological capabilities is vital for navigating the evolving landscape of healthcare and improving patient outcomes globally.

For more insights and research from the IQVIA Institute, visit IQVIA Institute.