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Paris Champerret
Paris Montparnasse
London
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The pharmaceutical industry plays a central role in global innovation and public health, but developing new drugs remains a long and costly process. This thesis studies how innovation strategies used by large pharmaceutical companies affect their economic performance. While many studies describe the business models and R&D activities of these companies, few have measured how specific innovation strategies influence financial results. To address this gap, this research combines a literature review with a quantitative analysis of ten major pharmaceutical firms, over the past ten years.
The quantitative analysis examined the links between innovation indicators (such as R&D spending, biotech acquisitions and investments, and EMA marketing authorizations) and financial performance measures (ROA, PBR, and net income). The results show that these relationships vary greatly between companies. R&D investments often have a negative short-term impact on profitability, while biotech acquisitions and marketing authorizations show mixed effects on market valuation.
