Marketing approval cycle

The issue for this section is how to measure the net cash flows from the point of market approval to the end of the product s life cycle, taking account of the fact that revenues are uncertain, that costs must be incurred to manufacture, market and distribute the products, and that income delayed is worth less to investors than income today. Once the net income from the sale of successful drugs over their lifetime is appropriately measured, it must be compared with the fully capitalized cost of the R D spent to bring them to market. 

---