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

@article{Dimasi2003ThePO,
  title={The price of innovation: new estimates of drug development costs.},
  author={Joseph A Dimasi and Ronald W. Hansen and Henry G. Grabowski},
  journal={Journal of health economics},
  year={2003},
  volume={22 2},
  pages={
          151-85
        }
}
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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