Epoch 41: Pfizer, Astrazeneca, and J&J Score at the Top of Recent R&D Rankings
The Invention and Innovation Index Track the Most Innovative Biopharma R&D
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Hello Avatar! Welcome back for another week of biotech analysis. We recently came across two very interesting indexes developed by IDEA Pharma - the Invention and Innovation indexes. IDEA has taken a comprehensive approach to scoring biopharma on both their ability to develop novel medicines (research rating) and their ability to deliver drugs through the clinic to regulatory approval (development rating). Given that we love ranked lists, and that it is always fun to see how pharma ranks up against each other, we have decided to dedicate Sunday’s newsletter to these indexes. The results are interesting!
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Enough shilling for the day, lots to cover this week, let's get started!
INNOVATION RANKINGS
First a congrats to the IDEA Pharma team as it appears the Innovation index is now in its 12th year! The index looks to compare companies ability to develop value from their portfolio once in the clinic. This is a direct reflection of not only the quality of the development organization, but also the regulatory safety team and their ability to work together in an integrated manner.
Put another way, the question this index helps to answer is: “If two pharma companies were given the same asset in phase I, which of the two would be more innovative in developing and launching the product?”.
“The Innovation Index tracks novel drug approvals, as well as the percentage of sales generated by new products (i.e., pharmaceutical products launched in the last 5 years). This Index also measures financial performance, and monitors company websites, annual reports, and industry sites to identify key events related to (but not limited to) label expansions of currently approved branded products, progression of assets to the next phase of development, and study successes/ failures.”
THE INNOVATION INDEX
INVENTION RANKINGS
The Invention Index has been in existence since 2019, its goal is to quantitate research pipeline quality and novelty. It can be considered a more forwarding looking view of which organizations have pipelines with the potential to deliver breakthrough medicines. Construction of the index “leverages a wide range of data analytics, along with tracking of company and third-party stories on key events impacting company pipelines and portfolios.”
“For each company, the Invention Index assesses the size of its novel drug pipeline relative to its marketed drug portfolio, as well as the degree of advancement and breadth of investigation in clinical development. Additionally, the Invention Index assesses the proportion of regulatory designations granted to novel pipeline drugs, as well as the proportion of R&D investment. Finally, the Index tracks all publicly announced stories and events related to novel pipeline agents.”
Now that you understand what these indexes mean, and have had a chance to digest the rankings we will take you through detailed commentary on the top 5 companies and provide historical tracking for the top 10. Again, we highly encourage you to download the full report here.
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