Company Size Won’t Predict Success

New analysis finds that the size of a company is not tied to getting a drug to market.

Written byKerry Grens
| 2 min read

Register for free to listen to this article
Listen with Speechify
0:00
2:00
Share

WIKIMEDIA, LADYOFPROCRASTINATIONThe size of a drug maker—in particular, how much money it spends on research and development—is no predictor of whether a particular molecule will succeed in making it out of the laboratory and into the pharmacy. That's according to a new analysis of 842 molecules published this month (October 18) in Nature Reviews Drug Discovery. What else doesn't matter? The location of the company, the therapeutic area—be it musculoskeletal, respiratory, and so on—nor the type of drug target—such as an ion channel or an enzyme.

What does appear to matter, according to the authors, are “scientific acumen or good judgment.” Proxies of these qualities, which they found to be linked with drug development success, were the number of patents, publications, and citations per dollar spent on R&D. In addition, the experience of leaders at the company, a company's focus on the return on investment, and a willingness to terminate failing projects early all hailed success for drug development firms.

That last company quality—the willingness to cut one's losses—had the strongest correlation to successfully getting drug approval. “A major obstacle that we see to achieving greater R&D productivity is the likelihood that many low-viability compounds are knowingly being progressed to advanced phases of development,” the authors, who are all from the ...

Interested in reading more?

Become a Member of

The Scientist Logo
Receive full access to more than 35 years of archives, as well as TS Digest, digital editions of The Scientist, feature stories, and much more!
Already a member? Login Here

Related Topics

Meet the Author

  • kerry grens

    Kerry served as The Scientist’s news director until 2021. Before joining The Scientist in 2013, she was a stringer for Reuters Health, the senior health and science reporter at WHYY in Philadelphia, and the health and science reporter at New Hampshire Public Radio. Kerry got her start in journalism as a AAAS Mass Media fellow at KUNC in Colorado. She has a master’s in biological sciences from Stanford University and a biology degree from Loyola University Chicago.

    View Full Profile
Share
Illustration of a developing fetus surrounded by a clear fluid with a subtle yellow tinge, representing amniotic fluid.
January 2026, Issue 1

What Is the Amniotic Fluid Composed of?

The liquid world of fetal development provides a rich source of nutrition and protection tailored to meet the needs of the growing fetus.

View this Issue
Skip the Wait for Protein Stability Data with Aunty

Skip the Wait for Protein Stability Data with Aunty

Unchained Labs
Graphic of three DNA helices in various colors

An Automated DNA-to-Data Framework for Production-Scale Sequencing

illumina
Exploring Cellular Organization with Spatial Proteomics

Exploring Cellular Organization with Spatial Proteomics

Abstract illustration of spheres with multiple layers, representing endoderm, ectoderm, and mesoderm derived organoids

Organoid Origins and How to Grow Them

Thermo Fisher Logo

Products

Brandtech Logo

BRANDTECH Scientific Introduces the Transferpette® pro Micropipette: A New Twist on Comfort and Control

Biotium Logo

Biotium Launches GlycoLiner™ Cell Surface Glycoprotein Labeling Kits for Rapid and Selective Cell Surface Imaging

Colorful abstract spiral dot pattern on a black background

Thermo Scientific X and S Series General Purpose Centrifuges

Thermo Fisher Logo
Abstract background with red and blue laser lights

VANTAstar Flexible microplate reader with simplified workflows

BMG LABTECH