The price of innovation: new estimates of drug development costs.

@article{DiMasi2003ThePO,
  title={The price of innovation: new estimates of drug development costs.},
  author={J. DiMasi and R. W. Hansen and H. Grabowski},
  journal={Journal of health economics},
  year={2003},
  volume={22 2},
  pages={
          151-85
        }
}
  • J. DiMasi, R. W. Hansen, H. Grabowski
  • Published 2003
  • Medicine, Economics
  • Journal of health economics
  • The research and development costs of 68 randomly selected new drugs were obtained from a survey of 10 pharmaceutical firms. These data were used to estimate the average pre-tax cost of new drug development. The costs of compounds abandoned during testing were linked to the costs of compounds that obtained marketing approval. The estimated average out-of-pocket cost per new drug is 403 million US dollars (2000 dollars). Capitalizing out-of-pocket costs to the point of marketing approval at a… CONTINUE READING

    Figures, Tables, and Topics from this paper.

    Explore Further: Topics Discussed in This Paper

    The cost of biopharmaceutical R&D: is biotech different?
    • 514
    • PDF
    Drug development costs when financial risk is measured using the Fama-French three-factor model.
    • 88
    • PDF
    The Value of Improving the Productivity of the Drug Development Process
    • 125

    References

    Publications referenced by this paper.
    SHOWING 1-10 OF 41 REFERENCES
    Measuring the Pace of New Drug Development in the User Fee ERA
    • 43
    Returns to R&D on new drug introductions in the 1980s.
    • 210
    • PDF
    The New Drug Approvals of 1996, 1997, and 1998: Drug Development Trends in the User Fee Era*
    • 49
    New biopharmaceuticals in the USA: trends in development and marketing approvals 1995-1999.
    • 53