Three Methods to Boost Pharma R&D Pipeline Productivity & Efficiency

R&D productivity in the global pharmaceutical industry is hindered by myriad challenges. While there’s been a slight improvement due to investments in digitalization and transformation of R&D processes, these efforts aren’t enough to counter other productivity-limiting factors like static pipeline volumes, squeezed pricing due to healthcare payers, and an ever-rising productivity bar. This is the view of Naveed Panjwani, pharma R&D consulting lead at PA Consulting.

The productivity of the industry’s R&D largely depends on the pipeline volume, pipeline value, and efficiency of pipeline delivery. Major pharma late-stage pipelines, unfortunately, haven’t been growing as expected. Instead, they’ve remained the same or even reduced compared to the pre-pandemic years. Moreover, healthcare payers are continuously pressuring the potential value of pipeline assets, a problem that’s been persistent in single-payer systems in Europe and is quickly becoming a factor in the U.S. The situation is further complicated as major markets strive to reduce IP exclusivity timelines.

Increasing Efficiency in Pipeline Delivery

Companies in the industry are investing heavily in improving the probability of success in complex disease biology areas. While the attainment of safety and efficacy endpoints is subject to high uncertainty, enhancing the efficiency of pipeline delivery is more straightforward and within a company’s control.

However, the efficiency bar keeps rising due to economic shocks resulting from trade and geopolitical friction. These shocks are driving up the already high costs of talent, raw materials, and services used in drug development. Elevated development cycle times, exploding data volumes, and narrow inclusion/exclusion criteria that limit the trial population further exacerbate the situation.

According to PA Consulting, progress in improving the efficiency of pipeline delivery can be achieved by focusing on three key areas: optimizing resource utilization, driving technology-enabled operational innovation and executing with operational discipline.

Optimizing Resource Utilization

With R&D budgets and specialist talent under constant pressure, companies are being compelled to treat resource utilization as a core productivity lever. They are redesigning how expertise is deployed, governed, and supplemented across the portfolio. Key tactics being employed include refining resource deployment models, de-bossing and de-layering, and strategic and selective outsourcing.

Driving Technology-Enabled Operational Innovation

As clinical development grows more data-intensive and operationally complex, companies are turning to technology-enabled innovation to improve speed, quality, and efficiency. Tactics being used to translate digital investment into measurable productivity gains include digitalization and workflow automation, data integration and analytics, and technology-enhanced recruitment.

Executing With Operational Discipline

With clinical programs becoming more complex, execution discipline is becoming crucial in driving measurable productivity gains. Companies are focusing on reducing avoidable complexity, compressing cycle times, and embedding new ways of working. To achieve this, they are undertaking a reduction in study complexity, critical path management, and process curation.

To effect measurable change in pharma R&D pipeline productivity, organizations need to make disciplined progress across the three interconnected priorities: deploying scarce resources more intentionally, translating digital and AI-enabled innovation into practical operational gains, and embedding the execution discipline required to reduce avoidable complexity and cycle time.

References:

1. Citeline Pharma R&D Annual Review, April 2026
2. Goldman D & Lakdawalla D. White paper: The Global Burden of Medical Innovation, USC Schaeffer Institute for Public Policy & Government Service
3. A value-based approach to pricing, an EFPIA position paper, April 2023
4. Deal on comprehensive reform of EU pharmaceutical legislation, European Parliament Press Release, December 2025