What Is Multi-Domain Research in Pharma? Why Siloed Analysis Costs Billions
multi domain research pharma

What Is Multi-Domain Research in Pharma? Why Siloed Analysis Costs Billions

Srinivas Padmanabharao

Author

Srinivas Padmanabharao

Published : 11 Jul 2026

Key Takeaways :

The pharmaceutical industry spends more than $300 billion annually on research and development. The return on that investment, measured as new drugs approved per billion dollars spent, has declined by roughly half every nine years since 1950.  [6] This is Eroom's Law, the deliberate inversion of Moore's Law, and it reflects a productivity failure that has persisted through every wave of technological optimism in the sector. Part of the explanation for this failure is scientific complexity. But a substantial and underappreciated part of it is organisational: the intelligence that should be guiding the most consequential decisions in drug development is fragmented across disconnected functions, each operating from an incomplete view of the same landscape.

Frequently Asked Questions

[1]  Pharmaphorum (2025). Pharma Go-to-Market Transformation: Why Cross-Functional Silos Cost Billions. Siloed organisations: duplicated technology investments consume up to 30% of IT budgets. 40% of new drug launches delayed due to misalignment between commercial and medical.  https://pharmaphorum.com/market-access/pharma-go-market-transformation-why-cross-functional-silos-cost-billions

[2]  Straive (2025). Breaking Down Data Silos in Pharmaceutical Data Management. Drug development averages over $2.2 billion per successful asset. Siloed data leads to repeated experiments and wasted resources. Deloitte 2025: AI across the pharma value chain could boost revenue by up to 11% and yield 12% cost savings.  https://www.straive.com/blogs/breaking-down-data-silos-a-pathway-to-enhanced-clinical-insights-in-pharma/

[3]  McKinsey Global Institute (2023). The Economic Potential of Generative AI: The Next Productivity Frontier. Gen AI could unlock $60 billion to $110 billion annually in the pharmaceutical and medical-product industries, equivalent to 2.6 to 4.5% of annual revenues.  https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/the-economic-potential-of-generative-ai-the-next-productivity-frontier

[4]  McKinsey (2025). Scaling Gen AI in the Life Sciences Industry. A scalable AI platform standardises infrastructure and data pipelines so each new use case builds on the previous one, reducing duplication across business units.  https://www.mckinsey.com/industries/life-sciences/our-insights/scaling-gen-ai-in-the-life-sciences-industry

[5]  McKinsey (2025). How AI Is Driving R&D Productivity. AI could unlock $360 billion to $560 billion of potential annual economic value by accelerating pharma R&D. Eroom's Law: new drugs approved per billion dollars spent has halved every nine years since 1950.  https://www.mckinsey.com/capabilities/quantumblack/our-insights/the-next-innovation-revolution-powered-by-ai

[6]  DrugPatentWatch (2026). Reviving a Pharmaceutical R&D Pipeline: Technical, IP, and Strategic Guide. Pharma spends more than $300 billion annually on R&D. Return on that spending has declined by roughly half every nine years since 1950.  https://www.drugpatentwatch.com/blog/reviving-an-rd-pipeline/

[7]  Accenture (2025). Transforming Pharma R&D Productivity and Costs. Biopharma can achieve greater value by simultaneously transforming R&D across five enabling capabilities rather than sequential, siloed programmes.  https://www.accenture.com/us-en/insights/life-sciences/from-billions-to-millions-transformation

[8]  McKinsey (2025). How Pharma Is Rewriting the AI Playbook. Simply bolting AI onto business as usual will not deliver tangible results. Pharma AI market projected to grow from $4 billion in 2025 to $25.7 billion by 2030.  https://www.mckinsey.com/industries/life-sciences/our-insights/the-synthesis/how-pharma-is-rewriting-the-ai-playbook-perspectives-from-industry-leaders

[9]  Pienomial (2025). KnolAI: Multi-Domain Research Intelligence Platform for Life Sciences. Knolens unified knowledge layer architecture.  https://www.pienomial.com/products/knol-ai

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