tag:blogger.com,1999:blog-8550428.post7846173693437988465..comments2024-03-10T05:12:12.373-04:00Comments on Pharma Marketing Blog: A New Estimate of Drug Development CostVladhttp://www.blogger.com/profile/04114063498108633047noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-8550428.post-27752977400043072132011-04-28T08:57:58.878-04:002011-04-28T08:57:58.878-04:00"wasted on potential new drugs that never mak..."wasted on potential new drugs that never make it to market." Those should be included, as in real time a company doesn't know if a chemical entered into preclinical development will make it to market. <br /><br />How much does it cost to save a life by installing seat belts? Should we consider only the cost of seat belts when there is an accident that could have cost a life, or the cost of installing all seat belts? I'm for seat belts, but the cost-benefit ratio must account for all, as they must for drug failures as well as successes.Rosshttp://www.ddinsights.comnoreply@blogger.comtag:blogger.com,1999:blog-8550428.post-25114994361723314392011-04-25T10:05:03.201-04:002011-04-25T10:05:03.201-04:00Good point! I think, however, that the industry te...Good point! I think, however, that the industry tends to use the same accounting tricks to inflate how much it spends on R&D. Whatever the number, about 90% of it is wasted on potential new drugs that never make it to market. So you just can't take the R&D number -- whatever it is -- and divide it my $59.4 million to estimate how many new drugs should be brought to market.PharmaGuyhttps://www.blogger.com/profile/10211557578124130640noreply@blogger.comtag:blogger.com,1999:blog-8550428.post-4633294377160440432011-04-25T09:32:23.069-04:002011-04-25T09:32:23.069-04:00I'm not an economist, rather a keen observer o...I'm not an economist, rather a keen observer of the industry. I conclude that if it only cost $59.4 million, there would be many more new drugs on the market. However, the last 10 years has seen very few new drugs. If we were to divide the industry's large R&D budget by $59.4 million, I would expect that the last ten years would have produced many significant new products. While neither number may be right, the estimate of $59.4MM seems suspiciously low.Anonymousnoreply@blogger.com