Who Prioritizes Innovation? R&D Spending Compared for Amgen Inc. and Perrigo Company plc

Innovation in the Pharmaceutical Industry: A Tale of Two Companies

In the competitive world of pharmaceuticals, innovation is key to staying ahead. Amgen Inc. and Perrigo Company plc, two giants in the industry, have shown contrasting approaches to research and development (R&D) spending over the past decade. From 2014 to 2023, Amgen consistently invested heavily in R&D, with expenditures peaking at approximately $4.8 billion in 2021, reflecting a 10% increase from 2014. This commitment underscores Amgen's focus on pioneering new treatments and maintaining its leadership position.

Conversely, Perrigo's R&D spending has been more conservative, averaging around $164 million annually. Despite a peak in 2018, Perrigo's investment in innovation has seen a gradual decline, with 2023 figures showing a 20% decrease from 2014. This strategic choice may reflect a focus on cost management and existing product lines. As the industry evolves, these spending patterns highlight the diverse strategies companies employ to balance innovation and profitability.