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The Price of Developing New Drugs
June 2003
The average cost of developing a new prescription drug is $897 million, almost four times the cost in the early 1990s, according to a study by the Tufts Center for the Study of Drug Development, Bloomberg/Bern Record reports. Results of the study are based on a review of data involving 68 drugs from 10 multinational, foreign-owned and U.S.-owned pharmaceutical companies during the 1990s. The study found that drug companies spend $802 million on pre-clinical and clinical costs and $95 million on additional testing expenses following FDA approval. According to the study, the rate of companies terminating drug development in late stages fell in the 1990s compared with the 1980s. About 22% of drugs that start the first out of three stages of human trials win FDA approval, according to the study.
The average cost of developing a new prescription drug is $897 million, almost four times the cost in the early 1990s, according to a study by the Tufts Center for the Study of Drug Development, Bloomberg/Bern Record reports. Results of the study are based on a review of data involving 68 drugs from 10 multinational, foreign-owned and U.S.-owned pharmaceutical companies during the 1990s. The study found that drug companies spend $802 million on pre-clinical and clinical costs and $95 million on additional testing expenses following FDA approval. According to the study, the rate of companies terminating drug development in late stages fell in the 1990s compared with the 1980s. About 22% of drugs that start the first out of three stages of human trials win FDA approval, according to the study.
The average cost of developing a new prescription drug is $897 million, almost four times the cost in the early 1990s, according to a study by the Tufts Center for the Study of Drug Development, Bloomberg/Bern Record reports. Results of the study are based on a review of data involving 68 drugs from 10 multinational, foreign-owned and U.S.-owned pharmaceutical companies during the 1990s. The study found that drug companies spend $802 million on pre-clinical and clinical costs and $95 million on additional testing expenses following FDA approval. According to the study, the rate of companies terminating drug development in late stages fell in the 1990s compared with the 1980s. About 22% of drugs that start the first out of three stages of human trials win FDA approval, according to the study.
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