Top Pharmaceutical R&D Spending in 2025: How Big Pharma Is Allocating Capital Through Nine Months

As 2025 approaches year-end, R&D investment remains one of the clearest indicators of strategic intent across Big Pharma. While revenue diversification and portfolio durability continue to matter, R&D spend increasingly reflects where companies are placing long-term bets, particularly as multiple franchises approach loss of exclusivity.

The analysis below summarizes company-reported R&D spending for the first nine months of 2025 where disclosed. Figures are standardized to USD using average Q3 2025 exchange rates. Roche is included separately due to differences in disclosure cadence

Top Pharmaceutical R&D Spending Through 9M 2025

Company-Level R&D Strategy Signals

Merck
Merck led the group with nearly 12B in R&D spending through nine months. Investment remains heavily skewed toward late-stage oncology and vaccines, with a clear emphasis on extending the Keytruda franchise while seeding post-LOE growth. Management commentary in Q3 highlighted prioritization and execution discipline, signaling a shift away from early-stage breadth toward fewer, higher-conviction programs.

Johnson & Johnson
Johnson and Johnson reported just over 10B in R&D spend, explicitly aligned with six priority areas: oncology, immunology, neuroscience, cardiovascular, surgery, and vision. R&D capital is increasingly concentrated around combination strategies and label expansion, particularly in oncology and immunology. The pipeline narrative emphasized assets nearing regulatory or commercial inflection rather than early discovery.

AstraZeneca
AstraZeneca also exceeded 10B in R&D spending through nine months. The company continues to operate one of the most modality-diverse engines in the industry, spanning ADCs, bispecifics, radioconjugates, next-generation biologics, and cell therapies. Oncology remains the dominant focus, with assets such as Enhertu, Datroway, Imfinzi, and Tagrisso being expanded across tumor types, lines of therapy, and combinations.

Eli Lilly
Lilly reported approximately 9.5B in R&D spending, reflecting both pipeline expansion and accelerated clinical velocity. Investment remains concentrated in obesity, cardiometabolic disease, and adjacent indications. Management increasingly frames R&D and manufacturing as interdependent, signaling that scale and execution speed are becoming core competitive advantages alongside scientific breadth.

Novartis
Novartis spent just over 8B on R&D through nine months, with an increasingly late-stage weighted profile. Capital is concentrated across oncology, immunology, cardiovascular-renal-metabolic disease, and neuroscience. The company’s R&D posture reflects a focus on execution and portfolio optimization as it navigates post-LOE transitions.

Roche
Roche does not disclose nine-month R&D figures, reporting only first-half 2025 R&D of CHF 6.07B, approximately 6.7B USD. Despite the different reporting cadence, earnings commentary makes clear that Roche’s strategy prioritizes depth over breadth. R&D investment remains concentrated in hematology, oncology, particularly ADCs, and neuroscience, with a focus on lifecycle durability rather than pipeline volume.

Takeaway

Across Big Pharma, R&D spending in 2025 reflects a clear strategic shift. Capital is increasingly directed toward late-stage, high-conviction programs, lifecycle expansion, and platforms capable of supporting multiple indications. Rather than maximizing the number of shots on goal, leading companies are prioritizing execution, modality leverage, and durability as they prepare for the next wave of LOEs.