Development costs, drugs

DiMasi JA, Hansen RW, Grabowski HG The price of innovation new estimates of drug development costs. J Health Econ 2003 22 151-85. 

DiMasi, J.A., Success rates for new drugs entering clinical testing in the United States, Clin. Pharmacol. Therap., 58,1-14,1995 DiMasi, J.A., Trends in drug development costs, times and risks. Drug Inform. /., 29, 375-384,1995. 

Total drug development costs are huge and continue to increase over time, in 2003, development costs of 68 randomly selected new drugs were... 

It remains possible that sponsors can refine this estimate through more careful arguments. In what follows, I assume that a profit-maximizing company will invest in R D whenever the promised reward exceeds its per-drug development costs in expectation. I consider two cases. 

Like all incentive mechanisms, contract R D has strengths as well as weaknesses. 1 argue below that the benefits outweigh drawbacks for preclinical and human trials. These programs reportedly account for three-quarters of all drug development costs (Global Alliance 2001). 

DiMasi, Joseph A., Ronald W. Hansen, and Henry G. Grabowski. The Price of Innovation New Estimates of Drug Development Costs. Journal of Health Economics 22 (2003) 151-185. The researchers estimate that a new drug cost about 800 million to develop. 

Figure 1 Cost of bringing a new drug to market showing the rapid increase in drug development costs in the last five years. Source From Ref. 1.

Rogoski R. Technology, clinical trials drive up drug development costs. In Depth Biotech J From the January 16, 2004 print edition. 

Figure 3.6 Fiscal illustration of the impact of analysis efficiency on drug development costs, based on the FTE costs indicated in Figure 3.5. An LC/MS application that increases the rate of sample analysis from 10 samples/day to 50 samples/day would reduce the cost of analysis from 125/sample to 25/sample. (Courtesy of Milestone Development Services, Newtown, Pa., USA.)...

K. I. Kaitin (Ed,), Post-approval R D raises total drug development costs to... 

Traditional drag design-new drug development costs... 

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