Returns to R&D on new drug introductions in the 1980s.

dc.contributor.author

Grabowski, HG

dc.contributor.author

Vernon, JM

dc.coverage.spatial

Netherlands

dc.date.accessioned

2013-04-23T16:26:57Z

dc.date.issued

1994-12

dc.description.abstract

This study finds that the mean IRR for 1980-84 U.S. new drug introductions is 11.1%, and the mean NPV is 22 million (1990 dollars). The distribution of returns is highly skewed. The results are robust to plausible changes in the baseline assumptions. Our work is also compared with a 1993 study by the OTA. Despite some important differences in assumptions, both studies imply that returns for the average NCE are within one percentage point of the industry's cost of capital. This is much less than what is typically observed in analyses based on accounting data.

dc.identifier

https://www.ncbi.nlm.nih.gov/pubmed/10140531

dc.identifier.issn

0167-6296

dc.identifier.uri

https://hdl.handle.net/10161/6703

dc.language

eng

dc.publisher

Elsevier BV

dc.relation.ispartof

J Health Econ

dc.subject

Commerce

dc.subject

Costs and Cost Analysis

dc.subject

Data Collection

dc.subject

Drug Industry

dc.subject

Drugs, Investigational

dc.subject

Health Policy

dc.subject

Income

dc.subject

Research Support as Topic

dc.subject

United States

dc.subject

United States Food and Drug Administration

dc.subject

United States Office of Technology Assessment

dc.title

Returns to R&D on new drug introductions in the 1980s.

dc.type

Journal article

pubs.author-url

https://www.ncbi.nlm.nih.gov/pubmed/10140531

pubs.begin-page

383

pubs.end-page

406

pubs.issue

4

pubs.organisational-group

Duke

pubs.organisational-group

Economics

pubs.organisational-group

Trinity College of Arts & Sciences

pubs.publication-status

Published

pubs.volume

13

Files

Original bundle

Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
ReturnstoR&D1994.pdf
Size:
2 MB
Format:
Adobe Portable Document Format