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

  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},
  volume={22 2},
  • 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

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