Biotech Companies Boost Profit on Lower R&D Spending

Bloomberg reported that biotechnology companies around the world have boosted profit by 37% to $5.2B last year partly by cutting spending on research and development, according to Ernst & Young.

As quoted in the market news:

Drugmakers led by Amgen Inc. (AMGN) and Gilead Sciences Inc. (GILD) increased R&D investment 5 percent last year, down from growth of 9 percent in 2011, the London-based consulting firm said today in its annual biotechnology industry report. At the same time, revenue at companies across the U.S., Europe, Canada and Australia rose 8 percent to $89.8 billion.

Click here to read the full Bloomberg report.