Mean Cost of Bringing New Drug to U.S. Market Is $879.3 Million

Follow Drugslib on

Medically reviewed by Drugs.com.

By Lori Solomon HealthDay Reporter

TUESDAY, July 2, 2024 -- The mean cost of developing a new drug for the U.S. market is estimated to be $879.3 million when both drug development failure and capital costs are considered, according to a study published online June 28 in JAMA Network Open.

Aylin Sertkaya, Ph.D., from Eastern Research Group Inc., in Lexington, Massachusetts, and colleagues assessed the mean cost of drug development for the U.S. market and how research and development (R&D) intensity changed over time. The model included public and proprietary data sources from 2000 to 2018.

The researchers found that the estimated mean cost of developing a new drug was approximately $172.7 million (2018 dollars; range, $72.5 million for genitourinary to $297.2 million for pain and anesthesia), which included postmarketing studies. When cost of failures was included, the cost increased to $515.8 million and the mean expected capitalized cost of drug development increased to $879.3 million (range, $378.7 million for anti-infectives to $1.756 billion for pain and anesthesia). From 2008 to 2019, the pharmaceutical industry experienced a decline of 15.6 percent in sales but increased R&D intensity from 11.9 to 17.7 percent. R&D intensity of large pharmaceutical companies increased from 16.6 to 19.3 percent and sales increased by 10.0 percent (from $380.0 to $418.0 billion) over the same period, even though the cost of drug development remained relatively stable or may have even decreased.

"These results highlight the importance of understanding the scale and factors associated with the costs of drug development to inform the design of drug-related policies and their potential impacts on innovation and competition," the authors write.

Abstract/Full Text

Editorial

Disclaimer: Statistical data in medical articles provide general trends and do not pertain to individuals. Individual factors can vary greatly. Always seek personalized medical advice for individual healthcare decisions.

Source: HealthDay

Posted : 2024-07-03 01:15

Read more

Disclaimer

Every effort has been made to ensure that the information provided by Drugslib.com is accurate, up-to-date, and complete, but no guarantee is made to that effect. Drug information contained herein may be time sensitive. Drugslib.com information has been compiled for use by healthcare practitioners and consumers in the United States and therefore Drugslib.com does not warrant that uses outside of the United States are appropriate, unless specifically indicated otherwise. Drugslib.com's drug information does not endorse drugs, diagnose patients or recommend therapy. Drugslib.com's drug information is an informational resource designed to assist licensed healthcare practitioners in caring for their patients and/or to serve consumers viewing this service as a supplement to, and not a substitute for, the expertise, skill, knowledge and judgment of healthcare practitioners.

The absence of a warning for a given drug or drug combination in no way should be construed to indicate that the drug or drug combination is safe, effective or appropriate for any given patient. Drugslib.com does not assume any responsibility for any aspect of healthcare administered with the aid of information Drugslib.com provides. The information contained herein is not intended to cover all possible uses, directions, precautions, warnings, drug interactions, allergic reactions, or adverse effects. If you have questions about the drugs you are taking, check with your doctor, nurse or pharmacist.

Popular Keywords