Continued innovation pays for Big Pharma (CNBC)

In light of the announcement of Novartis’ and Pfizer’s Q4 results, John Rountree, was invited on CNBC to discuss innovation in the pharmaceuticals market.

John highlights the continued strategic drive towards traditional innovation, which helps companies avoid the dangers of being a “one product company” and allows them to protect themselves from the risks of patent expiry.

Traditional R&D is not the only innovation Big Pharma is pursuing, with cell and gene therapy being important future technologies that companies must be present in, but are still in the early stages technologically and commercially.

Pharma companies are compelled to innovate in order to survive, and the rewards for successful innovation are substantial. Innovation as a topic we have always focused on and one that companies should consider carefully.

As Big Pharma continues to innovate, John draws attention to the positive correlation between companies investing in innovation and their stock prices. Investors clearly believe in R&D and so do we.