Show simple item record

Innovation in the pharmaceutical industry: New estimates of R&D costs.

dc.contributor.author DiMasi, Joseph A
dc.contributor.author Grabowski, Henry G
dc.contributor.author Hansen, Ronald W
dc.coverage.spatial Netherlands
dc.date.accessioned 2016-09-13T07:33:32Z
dc.date.issued 2016-05
dc.identifier http://www.ncbi.nlm.nih.gov/pubmed/26928437
dc.identifier S0167-6296(16)00029-1
dc.identifier.uri https://hdl.handle.net/10161/12742
dc.description.abstract The research and development costs of 106 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 and biologics 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 approved new compound is $1395 million (2013 dollars). Capitalizing out-of-pocket costs to the point of marketing approval at a real discount rate of 10.5% yields a total pre-approval cost estimate of $2558 million (2013 dollars). When compared to the results of the previous study in this series, total capitalized costs were shown to have increased at an annual rate of 8.5% above general price inflation. Adding an estimate of post-approval R&D costs increases the cost estimate to $2870 million (2013 dollars).
dc.language eng
dc.relation.ispartof J Health Econ
dc.relation.isversionof 10.1016/j.jhealeco.2016.01.012
dc.subject Discount rate
dc.subject Innovation
dc.subject Pharmaceutical industry
dc.subject R&D cost
dc.subject Technical success rates
dc.title Innovation in the pharmaceutical industry: New estimates of R&D costs.
dc.type Journal article
pubs.author-url http://www.ncbi.nlm.nih.gov/pubmed/26928437
pubs.begin-page 20
pubs.end-page 33
pubs.organisational-group Duke
pubs.organisational-group Economics
pubs.organisational-group Trinity College of Arts & Sciences
pubs.publication-status Published
pubs.volume 47
dc.identifier.eissn 1879-1646


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record