You are a financial analyst evaluating two pharmaceutical companies, PharmaCo and BioMed, known for their innovative research and development (R&D) efforts.

Requirements:

1. PharmaCo invested $500 million in R&D activities last year and successfully brought two new drugs to market, generating $1 billion in revenue from these drugs.
2. BioMed allocated $700 million to R&D initiatives during the same period but achieved revenue of only $800 million from its new drug launches.
3. Compare the efficiency of R&D spending and the revenue generated from new drug launches for both companies.
4. Discuss which company seems to have a more effective R&D strategy based on the return on R&D investment.