Articles

The R&D Equation Has Changed: Are You Ready to Solve It with Data?

Written by Diogo Melo, Executive Manager | Oct 1, 2025 4:11:20 PM

Written by Diogo Melo, Executive Manager

For years, the life sciences industry has been running on a familiar treadmill. The science gets more exciting, the potential for new therapies grows, but the path to get there becomes longer, more expensive, and fraught with risk. Economic analyses now peg the average cost to develop a single new asset at $879.3 million. Couple this expenditure with clinical trial success rates in the single digits, and it's clear that the old R&D life sciences model is being stretched to its breaking point.

The good news? The equation is finally changing. The variable that's flipping the script isn't a new molecule or biological pathway - it's data.

The conversation is no longer about if data and AI will reshape drug development, but rather how quickly you can adapt to lead the charge. The shift is moving from a linear, siloed R&D process to a dynamic, interconnected ecosystem powered by insights. At SDG Group, we work with life sciences leaders every day to build this new reality, turning dormant data into their most powerful asset for accelerating life-saving innovation.

 

The Achilles' Heel of R&D: Reimagining the Clinical Trial

The clinical trial is the marathon of the R&D process - and it's where most contenders fall out of the race. The hurdles are immense: designing effective protocols, finding the right testing sites, and, most critically, enrolling and retaining the right patients. In fact, an estimated 80% of clinical trials fail to meet their enrollment deadlines, causing delays that can cost millions of dollars a day in lost revenue.

This is where a robust data strategy becomes a game-changer. By unifying internal data (such as past trial performance and genomic information) with external Real-World Data (RWD) from electronic health records, insurance claims, and even wearables, we can build a panoramic view of the patient and site landscape.

This enables a far more intelligent approach:

  • Precision Patient Selection

    Instead of casting a wide net, predictive models can pinpoint specific patient populations. A concrete example of this is SDG Group's Patient Attribute Analyzer, a tool designed to facilitate the identification of patient cohorts sharing specific attributes. Using an intuitive interface with customizable filters, researchers can quickly query vast datasets for combinations of demographics like gender and ethnicity, as well as medical codes such as NDCs (National Drug Code) or ICDs (International Classification of Diseases). This enables them to obtain precise and relevant patient data, identify patterns and trends, and ultimately make better-informed decisions to find the right cohort for a trial, dramatically increasing the odds of success. 

Diagram of how patient attributes are interconnected and queried

 

  • Intelligent Site Activation

    Which sites have the best track record for this therapeutic area? Where are the patient populations we need? Data analytics answers these questions, ensuring resources are allocated to high-performing sites that can get up and running quickly. This directly increases site activation velocity and ensures budgets are deployed for maximum impact.

 

  • Reduced Patient Churn

    By understanding the patient journey better through data, sponsors can design more patient-centric trials, reducing the burden on participants and lowering dropout rates - a key factor in maintaining a trial's statistical power and integrity.

    To directly address this, SDG Group developed a Patient Churn Predictive Model. Recognizing that the long duration of trials increases the probability of patient dropout and negatively impacts costs, this solution uses a binary classification model to identify patients with the highest probability of dropping out. This foresight can be applied in two critical ways: first, to improve patient selection before a trial begins, and second, to identify at-risk individuals in an ongoing trial, allowing for proactive interventions to prevent them from leaving. The model provides a clear probability of patient dropout and even allows for segmentation based on the potential reason for leaving, reducing the burden on participants and preserving a trial's statistical power.

 

The Bottom Line: Turning Insight into Impact

The strategic application of data and AI isn't just about operational efficiency; it's about fundamentally changing the financial calculus of R&D. Analyses from academic centers like the Tufts Center for the Study of Drug Development suggest that improving trial success rates and efficiency through new technologies can reduce the total capitalized cost per approved drug by hundreds of millions of dollars. This isn't just about saving money; it's about reallocating capital to promising assets, accelerating time-to-market, and ultimately delivering more value to both patients and shareholders.

 

Your Partner for the New R&D Paradigm

The tools and technologies to make this happen are here. But technology alone is not a strategy. The real challenge lies in breaking down organizational silos, establishing strong data governance, and building a culture that trusts and acts on data-driven insights.

This is where SDG Group comes in. We can help you build a solid data foundation, connect disparate internal and external data sources, and deploy scalable AI solutions that deliver tangible results, from accelerating discovery to optimizing multi-million dollar clinical trials.

The future of medicine won't be discovered in test tubes alone. It will be found in the patterns, connections, and insights hidden within the data. The companies that master this new R&D equation will be the ones to deliver the next generation of therapies to the patients who need them, faster and more efficiently than ever thought possible.